Banking Financial Awareness · General Awareness

Banking Services and Operations

1,239 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

The Federal Reserve System controls

  1. banking system

  2. interest rates

  3. money circulation

  4. all these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The Federal Reserve System was created to manage the nation's banking system, influence interest rates, and regulate the money supply to promote economic stability.

Multiple choice

What is a HUNDI?

  1. Shop

  2. Market

  3. Street

  4. Banking system

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A Hundi is a financial instrument that was used in medieval India for trade and credit, functioning like a bill of exchange or a letter of credit.

Multiple choice

Which of the following is NOT a way the government enforces competition?

  1. Provides loans to businesses

  2. Supports Small Business

  3. Encourages Global Trade

  4. Enforces anti-trust laws
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Providing loans to businesses is generally a function of financial institutions or specific development programs, rather than a method for the government to enforce market competition.

Multiple choice commercial studies budgeting meaning, merits and demerits of cash flow statement meaning and objectives of cash flow statement statement of changes in financial position

The term 'Cash' stands for__________.

  1. Cash and Bank Balance

  2. Bank Balance

  3. Cash and Funds position

  4. None of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Cash is a legal tender or coins that can be used to exchange goods,debt or services. 

Cash refers to money in hand,money in banking accounts, cheques, or any other form of currency that is easily accessible and can be quickly turned into physical cash.

Multiple choice the great depression great depression between the two world wars - the russian revolution and the great depression the world between two wars history

To protect citizens from bank failures, Franklin D. Roosevelt and Congress established the _________.

  1. National Industrial Recovery Act (NIRA)

  2. Securities and Exchange Commission (SEC)

  3. Federal Deposit Insurance Corporation (FDIC)

  4. Social Security Administration

  5. Federal Reserve System
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

To protect citizens from bank failures, Franklin D. Roosevelt and Congress established the Federal Deposit Insurance Corporation (FDIC).

Multiple choice organisation of commerce and management specialised financial institutions institutional sources long term sources of finance sources of business finance - 2

What is the Chief feature of the group banking system?

  1. Centralised management

  2. Decentralised management

  3. Wide network of branches

  4. All the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Each member bank of the group banking system retains its separate entity and maintains its board of directors but however, the group banking system enjoy the benefits of centralized administration. 

Multiple choice organisation of commerce and management specialised financial institutions institutional sources long term sources of finance sources of business finance - 2

Long-term agricultural credit is provided by ________.

  1. Land Development Bank

  2. State Cooperative Bank

  3. Central Cooperative Bank

  4. Commercial Bank
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Long term agricultural credits are provided for land improvement, digging of wells, buying farm animals, purchase of machinery. Most of the expenses are relating to agriculture and other allied land development activities. Such long term agricultural credit is provided by Land Development Bank.

Multiple choice organisation of commerce and management specialised financial institutions institutional sources long term sources of finance sources of business finance - 2

What does E-banking maintain?

  1. Secrecy transaction

  2. Simple transaction

  3. Easy transaction

  4. All of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

E- banking refers to electronic banking. E- banking functions with the help of internet and the financial institution's website, hence a lot of data regarding one's account number, bank details etc are required to carry out a transaction. High secrecy is maintained by E-banking system to keep the numbers hidden.

Multiple choice organisation of commerce and management specialised financial institutions institutional sources long term sources of finance sources of business finance - 2

Off-shore banking becomes more easy by _______.

  1. E-banking

  2. EXIM-bank

  3. Rural banking

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

Off shore bank refers to the bank located in a jurisdiction away from where the account holder or depositor resides. As E-banking doesn't require the account holder to be physically present in the bank to make the transaction, off-shore banking becomes much easier with the help of E-banking

Multiple choice organisation of commerce and management specialised financial institutions institutional sources long term sources of finance sources of business finance - 2

Functions of development banks:
I. They provide risk capital
II. They grant medium and long-term loans
III. They guarantee loans raised from within and outside the country
IV. They provide assistance for setting up new industrial projects
Which of the given options are correct?

  1. I and II are correct

  2. I, II and IV are correct

  3. I, II and III are correct

  4. All are correct
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Development banks perform all these functions: providing risk capital, offering medium and long-term loans, guaranteeing loans, and assisting in the establishment of new industrial projects.