Question 1

Garnishee order is issued by

Accepted Answer

A garnishee order is issued by a court of law to direct a third party to seize or withhold funds or assets of a debtor to satisfy a debt or judgment.

Question 2

Scheduled bank is one.................

Accepted Answer

A scheduled bank is one that is included in the Second Schedule of the Reserve Bank of India (RBI) Act, 1934.

Question 3

SBI was set up by nationalising

Accepted Answer

The State Bank of India (SBI) was established by nationalizing the Imperial Bank of India in 1955.

Question 4

A bankers lien is

Accepted Answer

A banker's lien is a general lien, which allows the bank to retain possession of a customer's property until a debt owed by the customer is paid.

Question 5

Number of subsidiary banks of SBI is

Accepted Answer

The answer of Number of subsidiary banks of SBI is
...

Question 6

Signature of one rupee note is of.....

Accepted Answer

The signature on the one rupee note is that of the Finance Secretary of India.

Question 7

Origin of banking is said to be closely connected with

Accepted Answer

The origin of banking is closely connected with the Jews, who were among the first to practice money lending and exchange, which are foundational activities in banking.

Question 8

The best example of pure commercial banking is

Accepted Answer

British banking is often cited as a classic example of pure commercial banking, focusing primarily on deposit-taking and lending activities.

Question 9

Which country's banking is regarded as best example of mixed banking

Accepted Answer

Germany's banking system is often cited as a prime example of mixed banking, where banks engage in both commercial and investment banking activities, offering a wide range of financial services.

Question 10

Money at call is otherwise known as..........

Accepted Answer

Money at call, often referred to in financial markets, is money loaned for a very short period, typically overnight, hence the term "overnight money." This type of financing is common among banks or financial institutions to cover their short-term liquidity needs.

Question 11

............ bank is one which specialise in financing foreign trade of a country

Accepted Answer

An exchange bank specializes in financing foreign trade by dealing with foreign currencies and facilitating international transactions.

Question 12

"A central bank is an institution charged with responsibility of regulating supply and cost of money in the interest of general public". This definition was made by;

Accepted Answer

The answer of "A central bank is an institution charged...

Question 13

Commercial bank can be either unit banking type or ----------- banking type.

Accepted Answer

Commercial banks can operate as branch banking, where a single bank operates multiple branches in different locations, offering a wide network for its customers.

Question 14

Discounting of bills of exchange is.......... function of commercial banks

Accepted Answer

Discounting of bills of exchange is considered a lending function because the bank provides immediate funds to the holder of the bill in exchange for a future payment.

Question 15

Industrial banks are also called .......... as they subscribing the securities issued by the industrial concerns.

Accepted Answer

Investment banks are involved in underwriting and issuing securities for industrial concerns, hence they are also called industrial banks.

Question 16

IDBI and IFCI are examples of...........

Accepted Answer

IDBI (Industrial Development Bank of India) and IFCI (Industrial Finance Corporation of India) are examples of industrial banks, which specialize in providing financial services and credit to industrial enterprises.

Question 17

Payment of premium by a commercial bank is a part of their........ System.

Accepted Answer

Payment of premium by a commercial bank is part of their agency services. Banks often act as agents for their customers in various capacities, including handling insurance premiums.

Question 18

Unit banks are linked with bigger banks by a system called........

Accepted Answer

Correspondent banking is a system where smaller, unit banks maintain deposit accounts with larger banks. These larger banks provide services and facilitate transactions (such as international wire transfers) on behalf of the smaller banks, effectively linking them into the broader banking network.

Question 19

Bank is a "factory" of.............

Accepted Answer

Banks are often referred to as factories of credit because they create and manage credit by lending out deposits to borrowers, thus facilitating economic activity.

Question 20

NPA stands for.............

Accepted Answer

NPA stands for nonperforming assets, which are loans or advances that are in default or close to being in default.

Quiz 4: Banking Terminology and Concepts