Deck 11: Banking and Finance FAQS

Question 1

Credit for the purchase of Farm equipment & machinery for agriculture operations

A)Land purchase
B)Farm mechanization
C)Minor irrigation
D)Land development

Answer 1

Farm mechanization

Question 2

Which type of deposits gives highest rate of interest?

A)Current deposit
B)Fixed deposit
C)Recurring deposit
D)None

Answer 2

Fixed deposit

Question 3

Which bank deals with short-term credit

A)Agricultural B
B)Commercial B
C)Industrial B
D)None

Answer 3

Commercial B

Question 4

Which one of the following is the most important relationship between banker & customer?

A)Debtor & Creditor
B)Bailee&Bailor
C)Agency & Principal
D)Trustee & Beneficiary

Question 5

Which one of this is not a function of commercial bank?

A)Accepting deposits
B)Real Estate Development
C)Paying bills
D)Safety Box Deposit

Question 6

Maximum amount of interest can be procured from

A)Savings/Demand Deposit A/c
B)Recurring Deposit A/c
C)Current A/c Deposit
D)Fixed Deposit A/c

Question 7

There is no interest on deposit in this type of account

A)Current A/c
B)Concurrent A/c
C)Recurring A/c
D)Solvency A/c

Question 8

IDBI stand for

A)International Debit Bank Incorporate
B)Industrial Debit Bank of India
C)Intensive Development Bank of India
D)Industrial Development Bank of India

Question 9

When a customer Deposits money with a bank, the customer becomes a

A)Borrower
B)Lender
C)Agent
D)Subsciber

Question 10

When the customer borrows money from the bank, the bank becomes the

A)Debtor
B)Trustee
C)Creditor
D)Underwriter

Question 11

Overdraft facility can be enjoyed in which account

A)Fixed Deposit A/c
B)Demand Deposit A/c
C)Recurring Deposit A/c
D)Current A/c Deposit

Question 12

Overdraft withdrawal is a

A)Short term loan
B)Medium term loan
C)Long term loan
D)Grant in aid

Question 13

A kind of deposit where depositor is required to deposit a fixed amount at regular interval for a specific period is

A)term deposit
B)recurring deposit
C)savings deposit
D)fixed deposit

Question 14

What types of deposits earn higher interest rate?

A)current account
B)savings account
C)Fixed deposit
D)none of these

Question 15

In recurring deposits,

A)a fixed sum is deposited every month
B)period of deposit is a fixed tenure
C)interest is paid at FDR rate
D)all the above

Question 16

Interest on saving deposits is paid

A)every month
B)quarterly
C)half yearly
D)yearly

Question 17

The banker customer relationship in credit card payment is

A)creditor-debtor
B)debtor-creditor
C)agent principle
D)principle-agent

Question 18

The credit policy of bank does not consists of?

A)lending policies
B)quality control
C)loan product mix
D)advertising of loan products

Question 19

The relationship between RBI and the Bank maintaining the currency chest is that of?

A)debtor and creditor
B)principle and agent
C)bailor and bailee
D)none of these

Question 20

------ is the rate at which the central bank rediscounts the bills of commercial banks

A)Bank Rate Policy
B)Central bank rate
C)Credit rate
D)None of these

Question 21

___________is a kind of deposit where depositor is required to deposit a fixed amount of money every month for a specific period of time

A)Term deposit
B)Recurring deposit
C)Savings deposit
D)Fixed deposit

Question 22

When a customer deposits money with a bank, the customer becomes a lender and the bank become a__________

A)Trustees
B)Custodian
C)Borrower
D)agent

Question 23

Different types of advances are

A)Loans, cash credit and overdraft
B)Bill discounted and purchased
C)Both (i) and (ii)
D)None of the above

Question 24

Overdraft facilities are allowed in

A)Current account only
B)Savings account only
C)Fixed deposit only
D)Recurring deposit only

Question 25

The primary relationship between a banker and customer starts from the time

A)when customer visits that bank
B)when customer opens account
C)when customer visits that bank to made queries
D)All of the above