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 history industrial sector growth of banks in india nationalisation and privatisation of banks private sector anddifference between public and private sector

Which of these are not duties of EXIM Bank?

  1. Lending / Guarantee

  2. Advisory

  3. Promotional

  4. Trading activities
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

EXIM Bank is a development financial institution focused on financing and promoting foreign trade. It does not engage in direct commercial trading activities.

Multiple choice history industrial sector growth of banks in india nationalisation and privatisation of banks private sector anddifference between public and private sector

EXIM Bank was set up to _________.

  1. extend loan advances to small and medium sector enterprises.

  2. promote cross border trade and investment

  3. to promote import substitution

  4. all the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The primary mandate of the EXIM Bank is to provide financial assistance to exporters and importers, thereby promoting India's cross-border trade and investment.

Multiple choice history industrial sector growth of banks in india nationalisation and privatisation of banks private sector anddifference between public and private sector

Nationalization of banks aimed at all of following except ________.

  1. removal of control by few

  2. provisions of credit to big industrial organizations

  3. provisions of adequate credit for agricultural

  4. encouragement of new class of entrepreneurs
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Nationalization aimed to shift credit away from large industrial houses toward priority sectors like agriculture and small-scale industries. Therefore, providing credit to big industrial organizations was not an aim, but rather a practice the government sought to curb.

Multiple choice history industrial sector growth of banks in india nationalisation and privatisation of banks private sector anddifference between public and private sector

Nationalisation of Banks aimed at all of the following except _________________.

  1. removal of control by a few

  2. provision of credit to big industries only

  3. provision of adequate credit for agriculture, small industry and export units

  4. encouragement of a new class of entrepreneurs
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Nationalization was intended to democratize credit and support small-scale sectors. Providing credit exclusively to big industries was the opposite of the intended goal, which was to diversify credit access.

Multiple choice history industrial sector growth of banks in india nationalisation and privatisation of banks private sector anddifference between public and private sector

After nationalisation, the number of Bank Branches have _____________.

  1. increased

  2. decreased

  3. retained constant

  4. nothing can be said
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Following nationalization, the government mandated that banks expand their branch networks into rural and unbanked areas to promote financial inclusion, leading to a massive increase in the number of branches.

Multiple choice history industrial sector growth of banks in india nationalisation and privatisation of banks private sector anddifference between public and private sector

Which of the following factor is not responsible for nationalization of commercial banks?

  1. Private ownership

  2. Urban bias

  3. Government policy

  4. Violation of norms
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Government policy was the driver of nationalization, not a factor responsible for the problems that necessitated it. The problems were private ownership, urban bias, and the violation of social banking norms.

Multiple choice history industrial sector growth of banks in india nationalisation and privatisation of banks private sector anddifference between public and private sector

That portion of total deposit which a commerical bank has to keep with itself in the form of eligible securities is called _________.

  1. CRR

  2. SLR

  3. OMO

  4. Bank Rate
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Statutory Liquidity Ratio (SLR) refers to liquid assets that the commercial banks must hold on daily basis as a percentage of their total deposits. SLR is determined by the central bank and is a legal requirement to be fulfilled by the commercial banks. It includes 

1. Cash 
2. Gold 
3. Unencumbered approved securities 

Multiple choice commercial studies concept of market and marketer meaning and importance of marketing meaning and definition of market introduction to marketing marketing environment meaning and definition of marketer role of marketing

The marketing concern generally taps three sources for financing its activities there are ___________.

  1. Owned Capital

  2. Trade Credit

  3. Bank Credit

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

Marketing activities require capital, which is typically sourced from a mix of internal funds (owned capital), short-term supplier credit (trade credit), and external financing (bank credit).

Multiple choice infrastructure in india infrastructure tertiary sector economics

Some banks are financing big projects like construction of roads/bridges etc. Financing such projects means banks are helping exactly in ______________.

  1. Infrastructural development

  2. Project management

  3. Developing core sector industry

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

Financing roads and bridges directly contributes to the creation of physical infrastructure, which is essential for economic growth.

Multiple choice

Primary agriculture banks are come under the category of Central Banks

  1. True

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

Primary agriculture banks operate at the grassroots or village level to provide short-term rural credit, whereas central banks regulate the entire monetary and banking system of a country. Therefore, primary agriculture banks do not fall under the category of central banks.

Multiple choice elements of book keeping and accountancy recording and posting of cash transactions explain the purpose of maintaining a cash book introduction, meaning and importance of cash book meaning and advantages of cash book

Jan Dhan Account is an example of _______________.

  1. Current Account

  2. Fixed Deposit Account

  3. Zero Balance Account

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

Pradhan Mantri Jan Dhan Yojana accounts are designed for financial inclusion and allow individuals to open basic bank accounts without needing to maintain a minimum monthly balance, making them zero balance accounts.

Multiple choice elements of book keeping and accountancy recording and posting of cash transactions explain the purpose of maintaining a cash book introduction, meaning and importance of cash book meaning and advantages of cash book

Type of bank account in which bank keeps no restrictions on depositing cash but imposes restrictions on withdrawals of cash.

  1. Current

  2. Saving

  3. D - mat

  4. Fixed
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A Savings Account is designed to encourage savings among individuals, so banks allow unlimited deposits but impose restrictions on the frequency and amount of withdrawals. Current accounts, by contrast, generally have no such withdrawal restrictions.

Multiple choice elements of book keeping and accountancy recording and posting of cash transactions explain the purpose of maintaining a cash book introduction, meaning and importance of cash book meaning and advantages of cash book

Type of bank account in which overdraft facility is given to account holder.

  1. Saving account

  2. D-mat account

  3. Current account

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

An overdraft facility allows account holders to withdraw more money than they currently have in their account. This facility is primarily offered on Current Accounts to support the short-term working capital needs of businesses.