Banking Financial Awareness · General Awareness

Banking Services and Operations

1,373 Questions

Banking Services and Operations cover the fundamental principles of financial institutions, including credit markets, money supply, and risk management. It also addresses various transaction methods and account types used by businesses. This topic is crucial for candidates preparing for banking and insurance recruitment examinations.

Banking AbbreviationsCredit Market OperationsMoney Supply MetricsRisk Management MeasuresForeign Exchange RulesDigital Banking Technology

Banking Services and Operations Questions

Multiple choice economics sustainable development with equity liberalisation objectives of economic planning in india need for sustainable development introduction to social movements and its types social movements

Opening the savings bank account of a minor girl will be called as which of the following in banking terminology?

  1. Retail Banking

  2. Merchant Banking

  3. Institutional Banking

  4. Social Banking
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Retail banking, also known as consumer banking, is the provision of services by a bank to the general public, rather than to companies, corporations or other banks, which are often described as wholesale banking.

Hence saving the bank of a minor girl under the retail banking.

Multiple choice social science agriculture sector rural credit role of agriculture sector green revolution

Co-operative banks have a  __________ structure.

  1. 2-tier

  2. 3-tier

  3. 4-tier

  4. none of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Co-operative banks have a  3-tier structure.Cooperative banks as a cooperative credit institution provide both medium-term as well as short-term.loans.Cooperatives provide Institutional credit which assists rural households involved in agricultural activities. The government exclusively depended on development of cooperatives as an institutional source of rural credit till 1970.

Multiple choice social science agriculture sector rural credit role of agriculture sector green revolution

___________ operate in each state at the apex level.

  1. State Cooperative Banks

  2. Central Cooperative Banks

  3. Primary Agricultural Credit Societies (PACS)

  4. State Central Cooperative Banks
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

State Cooperative Banks operate in each state at the apex level.State Cooperative Banks provides institutional credit which assists rural households involved in agricultural activities.Credit helps to increase the productive capacity of the economy.

Multiple choice social science agriculture sector rural credit role of agriculture sector green revolution

___________ Land Development Banks operate at the district level.

  1. Central

  2. State

  3. Primary

  4. District
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Primary Land Development Banks operate at the district level.Land Development Banks (LDBs) are also called as Land Mortgage Banks and Agricultural and Rural Development Banks in some states.Land Development Banks- co-operative credit institution provides long-term loans. It provide loans generally more than one year. It provides institutional credit which assist in agricultural developmental activities.

Multiple choice social science agriculture sector rural credit role of agriculture sector green revolution

Land Development Banks (LDBs) have a ________ structure.

  1. 3-tier

  2. 2-tier

  3. 4-tier

  4. none of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Land Development Banks (LDBs) have a 2-tier structure.Land Development Banks (LDBs) have been effectively established in India since 1929.Land Development Banks (LDBs) are also called as Land Mortgage Banks and Agricultural and Rural Development Banks in some states.Land Development Banks- co-operative credit institution provides long-term loans. It provide loans generally more than one year. It provides institutional credit which assist in agricultural developmental activities.

Multiple choice social science agriculture sector rural credit role of agriculture sector green revolution

Land Development Banks (LDBs) are also called as ____________ in some states.

  1. Land Mortgage Banks

  2. Agricultural and Rural Development Banks

  3. both 'a and b'

  4. neither a nor b
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Land Development Banks (LDBs) are also called as Land Mortgage Banks and Agricultural and Rural Development Banks in some states.Land Development Banks- co-operative credit institution provides long-term loans. It provide loans generally more than one year. It provides institutional credit which assist in agricultural developmental activities. Land Development Banks (LDBs) have a 2-tier structure.Land Development Banks (LDBs) have been effectively established in India since 1929.

Multiple choice social science agriculture sector rural credit role of agriculture sector green revolution

Select the incorrect function of the Export Credit Guarantee Corporation (ECGC) __________________.

  1. Provides a range of credit risk insurance covers to exporters against loss in export of gods and services.

  2. Offers guarantees to banks and financial institutions to enable exporters to obtain better facilities from them.

  3. One of its divisions provides export insurance to companies based abroad.

  4. Provides Overseas Investment Insurance (OII) to Indian companies investing in joint ventures abroad in the form of equity or loan.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Export Credit Guarantee Corporation of India Limited, was established in the year 1957 by the Government of India to strengthen the export promotion drive by covering the risk of exporting on credit. Being essentially an export promotion organization, it functions under the administrative control of the Ministry of Commerce & Industry, Department of Commerce, and Government, Reserve Bank of India, banking, insurance and exporting community. ECGC is the fifth largest credit insurer of the world in terms of coverage of national exports. The present paid-up capital of the company is Rs. 800 crores and authorised capital Rs. 1,000 crores.

Multiple choice economics economics of development and planning economics of planning objectives of economic planning in india major economic problems

Which of the following would be the most correct description of the Finance Commission?

  1. Recommending agency

  2. Coordinating agency

  3. Distributing agency

  4. Mobilsing agency
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Finance Commission (FC) is appointed directly by the President. The major function of FC is to keep a  vertical balance between the financial revenues of taxes collected by the central govt, it recommends how the distribution should be among the union and states also grants distribution. It is on the recommendation of this institution that the financial decisions are taken hence it could be described as recommending agency.  

Multiple choice commerce performance of contract who will perform the contract performance, discharge, breach and remedies of contract business law and contract act

Which of the following is an example of immaterial alteration in a negotiable instrument?

  1. Changing the date

  2. Changing the sum payable

  3. Correcting the spelling

  4. Changing the place of payment
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

An immaterial alteration is one that does not change the legal effect or the identity of the instrument. Correcting a spelling mistake is purely clerical and does not alter the obligation.

Multiple choice economics theories of distribution liquidity preference and profit revenue and revenue curves simple monopoly and commodity market

$M _1$ is also known as transaction money because it can be directly used for making transactions. 

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

$M _1$ consists of  currency notes and coins that are in circulaation with public as well as the demand deposits with commercial banks. These can be used by the public directly for any transactions. Hence, $M _1$ is also known as 'Transaction Money'.

Multiple choice economics theories of distribution liquidity preference and profit revenue and revenue curves simple monopoly and commodity market

Demand deposits include __________________.

  1. Saving account deposits and fixed deposits

  2. Saving account deposits and current account deposits

  3. Current account deposits and fixed deposits

  4. All types of deposits
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Demand deposit refers to the deposit wherein the amount which you have deposited with the bank can be withdrawn by you any time. It includes saving account deposit and currency account deposit in which currency account is mainly meant for businessmen, and saving account is meant for general public.

Multiple choice economics theories of distribution liquidity preference and profit revenue and revenue curves simple monopoly and commodity market

M1 includes net demand deposits and not gross demand deposits, as net demand deposits do not include inter-banking claims.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

True.

Money supply refers to the total stock of money of all types ( currency as well as demand deposits) held by the people of a country at a given point of time. 

Money supply is measured in several ways among which M1 is a type of measurement that measures the money as a medium of exchange function. 

M1= C+ DD+ OD 

where, 

C: It refers to currency held by public in terms of coins and paper notes.

DD: It refers demand deposits of the people with the commercial bank.

OD: These includes other deposits with public financial institution, foreign central banks and international financial institution. 

Multiple choice economics theories of distribution liquidity preference and profit revenue and revenue curves simple monopoly and commodity market

Many banks have adopted/launched a "Core Banking Solution" (CBS). Which of the following is a Core Banking Solution?

  1. A marketing strategy adopted by the banks

  2. A new type of ATM useful for rural population

  3. A delivery channel for quick and fast delivery

  4. A new product launched to help senior citizens only as they are not able to visit branches/ATMs frequently
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Core Banking Solution (CBS) is a centralized banking system that allows customers to access their accounts and perform transactions from any branch of the bank, serving as a key delivery channel.

Multiple choice economics theories of distribution liquidity preference and profit revenue and revenue curves simple monopoly and commodity market

A money deposited in a bank that cannot be withdrawn for a preset fixed period of time is known as a ____________________.

  1. term deposit

  2. checking account

  3. savings bank deposit

  4. no frills account
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A term deposit (or fixed deposit) is a deposit held at a financial institution that has a fixed term and cannot be withdrawn before the maturity date without penalty.