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 organisation of commerce and management economics of development and planning fundamental of economic development economics of development economic mechanism

Quantitative Methods aim at influencing _______________________.

  1. The end-use of credit in specific areas

  2. The total volume of credit in the banking system

  3. Both (a) and (b)

  4. Neither (a) nor (b)
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Quantitative Methods aim at influencing the total volume of credit in the banking system.Quantitative measures to control credit are also known as general measures. Quantitative instruments of control credit are those instruments which focus on overall supply of money in the economy. These measures are used in a manner such that overall supply of money in the economy is reduced during inflation and increased during deflation.

Multiple choice commercial applications generally accepted accounting principles (gaap) acccounting cycle meaning, need and objectives of accounting accounting process

Generally, under the single entry system __________.

  1. only personal accounts are maintained

  2. only personal, cash and bank accounts are maintained

  3. all accounts are maintained

  4. no account is maintained
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Under single entry system , no purchase, sales accounts are maintained. Only cash, bank and personal ledgers are maintained.

Multiple choice some mathematical tools used in economics step towards making a project basic statistics for economics economics

Expand the term BCBS.

  1. Bank's Committee on Banking Supervision

  2. Basel Committee on Banking Supervision

  3. Bank's Commission on Banking Supervision

  4. Basel Commission on Banking Supervision
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

BCBS stands for the Basel Committee on Banking Supervision, which is the primary global standard setter for the prudential regulation of banks and provides a forum for cooperation on banking supervisory matters.

Multiple choice commercial studies basic accounting terms basic accounting terminologies introduction to financial accounting and financial accounts basic accounting terminology meaning and features of balance sheet income-expenditure account meaning, importance and specimen of journal objectives, functions, and importance of accounting stages and functions of accounting qualitative characteristics, objectives and roles of accounting

Which of the following is not an advance given by a bank?

  1. Loan

  2. Overdraft

  3. Deposit

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

Deposit is a money deposited by customer in bank for saving.

Multiple choice commercial studies basic accounting terms basic accounting terminologies introduction to financial accounting and financial accounts basic accounting terminology meaning and features of balance sheet income-expenditure account meaning, importance and specimen of journal objectives, functions, and importance of accounting stages and functions of accounting qualitative characteristics, objectives and roles of accounting

A business transaction in which money comes into the business immediately after the goods are delivered or services are rendered is called ____________.

  1. cash transaction

  2. credit transaction

  3. black money transaction

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

A cash transactions is a transaction where there is an immediate payment of cash for the purchases of an asset. It differs from other type of transactions that involves delayed delivery of purchased item, or delayed payment for the item.

Multiple choice commercial studies basic accounting terms basic accounting terminologies introduction to financial accounting and financial accounts basic accounting terminology meaning and features of balance sheet income-expenditure account meaning, importance and specimen of journal objectives, functions, and importance of accounting stages and functions of accounting qualitative characteristics, objectives and roles of accounting

An economic event that involves transfer of money or money's worth is a/are _______________.

  1. financial transactions

  2. barter system

  3. settlements

  4. receipts/payments
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Any event which involves transfer of money or money's worth is known as financial transaction. It is an agreement, or communication, carried out between a buyer and a seller to exchange an asset for payment. It is still a transaction if the goods are exchanged at one time, and the money at other.

Multiple choice history economic system and economic policies american dominance, neo-imperialism and new economic policy insights on lpg changing economic policies

Who among the following cannot open 'No Frill Account' in a bank?

  1. Agricultural labourer

  2. Student

  3. A small firm selling white goods

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

No Frill Account is a basic banking account that requires either nil minimum balance or very low minimum balance. Charge applicable to such accounts are low. Services available to such accounts are limited. 

Firms selling white goods are not likely to have low amounts in the account due to their monetary transactions that happen on a regular basis.

Multiple choice history economic system and economic policies american dominance, neo-imperialism and new economic policy insights on lpg changing economic policies

Which of the following is NOT a function of a commercial in India?

  1. Accepting deposits from publics

  2. Selling National Savings Certificates

  3. Keeping valuables in safe custody

  4. Transferring money from one place to the other
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Selling National Savings Certificates (NSCs) is a function of the Post Office, which is a government-run savings organization, not a commercial bank.

Multiple choice history economic system and economic policies american dominance, neo-imperialism and new economic policy insights on lpg changing economic policies

Before financial reforms, the banking system was characterised with all of the following except:

  1. Administered interest rates structure

  2. Quantitative restrictions on credit flow

  3. High revenue requirements

  4. Keeping very less lend-able resources for the priority sector
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Prior to New Economic Policy !991, a very high lend-able resources were kept for the priority sector. Administered interest rates structure, quantitative restriction on credit flow and high revenue requirements- are other features prevalent in the Indian economy prior to financial reforms of new economic policy.

Multiple choice commercial applications accounting procedures - rules of debit and credit golden rules of debit and credit (traditional approach) types of account meaning and classification of accounts

Bank gives overdraft facility to _____________ account holders.

  1. Savings

  2. Current

  3. Fixed deposit

  4. Re-curring deposit
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

 An overdraft facility is a credit agreement made with a bank that allows an account holder to use or withdraw more money than what they have in their account up to the approved limit. The sanctioned overdraft limit and the interest charged will vary based on the nature of the asset offered as collateral.

Multiple choice commercial applications accounting procedures - rules of debit and credit golden rules of debit and credit (traditional approach) types of account meaning and classification of accounts

Bank loan account is a _________.

  1. Personal account

  2. Real account

  3. Nominal account

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

There are mainly three types of accounts: Real, Personal, and Nominal. Personal accounts are classified into three subcategories: Artificial, Natural, and Representative.

The accounts related to real persons and organizations are classified as personal accounts. Examples of personal accounts include John's account, Peter's account, Procter and Gamble's account, Vibrant Marketing Agency's and City Bank's account etc. The business keeps a separate account for each individual and organization for the purpose of ascertaining the balance due from or due to them. Hence, bank loan account is a personal account.

Multiple choice commercial applications accounting procedures - rules of debit and credit golden rules of debit and credit (traditional approach) types of account meaning and classification of accounts

Bank account is a Nominal account.

  1. True

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

Accounts recording transactions with a person or group of persons are known as personal account. These accounts are necessary, in particular, to record credit transactions. Personal accounts are of the following types:


1. Natural persons: An account recording transactions with an individual is termed as natural persons' personal account.


2. Artificial or legal persons: An account recording financial transactions with an artificial person created by law or otherwise is termed as  an artificial persons; personal account. 

3. Representative personal accounts: An account indirectly representing a person or persons is known as representative personal account. When accounts are of a similar nature and their number er is large, it is better to fed up them under one head  and open a representative personal account.

Bank account is an example of personal account and not nominal account. All the accounts related to an individual, a firm or a company are termed as  a personal accounts. Hence, bank account is an example of a personal account.

Multiple choice book keeping and accountancy accounting standards: concept and objectives accounting standards accounting standards (as) and ifrs accounting systems and reporting standards

Under which of the following type of account is a specified amount deposited every month for a specified period, says, 12, 24, 36 and 60 months?

  1. Fixed Deposit Account

  2. Saving Bank Account

  3. Current account

  4. Recurring Account
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A Recurring Deposit account allows a customer to deposit a fixed amount every month for a specified period, earning interest on the accumulated balance.