Tag: bank 1 - definition, kinds, functions and importance

Questions Related to bank 1 - definition, kinds, functions and importance

______________ system allows an accountholder to operate their accounts from any branch.

business organisation and correspondence bank 1 - definition, kinds, functions and importance other services and modern trends in banking sector types of banks diversified banking functions

  1. CBS

  2. CTS

  3. NEFT

  4. RTGS

Show answer
Correct Option: A
Explanation:

CBS system allows an account holder to operate their accounts from any branch. CBS stands for Core Banking Solution. CBS can be defined as a technology platform which helps the customers to access their account from multiple delivery points, which includes different branches of the same bank, ATMs, internet and mobile banking, etc.

Under e-banking, accountholders get unlimited access to their accounts.

business organisation and correspondence bank 1 - definition, kinds, functions and importance other services and modern trends in banking sector types of banks diversified banking functions

  1. True

  2. False

Show answer
Correct Option: A
Explanation:

Under e-banking, account holders get unlimited access to their accounts- this is a true statement. Through e-banking customers can conduct transactions electronically. E-banking is a product designed for the purpose of online banking.

_______ is a statutory corporation wholly owned by the Government of India for the purpose of financing, facilitating and promoting foreign trade of India.

business organisation and correspondence bank 1 - definition, kinds, functions and importance other services and modern trends in banking sector types of banks diversified banking functions

  1. Small Industries Development Bank of India

  2. National Bank for Agricultural and Rural Development

  3. Export Import Bank of India (EXIM Bank)

  4. Industrial Development Bank of India

Show answer
Correct Option: C
Explanation:

Export Import Bank (EXIM Bank) is a statutory corporation wholly owned by the Government of India for the purpose of financing, facilitating and promoting foreign trade of India. Export Import Bank extends lines of credit to overseas governments, other financial institutions in order to finance India's exports to those countries.

Which of the following is/are the specialized bank(s) of India?

business organisation and correspondence bank 1 - definition, kinds, functions and importance other services and modern trends in banking sector types of banks diversified banking functions

  1. Industrial Development Bank of India

  2. EXIM Bank

  3. Rural Credit Bank

  4. All of the above

Show answer
Correct Option: D
Explanation:
The banking operations of the specialized banks serve only specific purposes. Specialized banks are established in order to finance specific type of economic activity. Following are the specialized banks of India:
a) Industrial Development Bank of India
b) EXIM Bank
c) Rural Credit Bank.

What is OTP in credit card transactions?

business organisation and correspondence bank 1 - definition, kinds, functions and importance other services and modern trends in banking sector types of banks diversified banking functions

  1. Odd Transaction Password

  2. Owner's Trading Passcode

  3. One Time Password

  4. One Time Pincode

Show answer
Correct Option: C
Explanation:
C.
An OTP or one-time password or one-time pin, is a password that is valid for only one login session or transaction, on a computer system or other digital device. It avoids a number of shortcomings that were associated with traditional password-based authentications.The most important advantage of OTP is that it is not vulnerable to replay attacks. This implies that a intruder who records an OTP that was already used to conduct a transaction will not be able to abuse it, as it will be no longer valid.

Process by which physical certificates of an investor are converted to an equivalent number of securities in an electronic format and credited in the Investors A/c held through depository participant is called  __________.

business organisation and correspondence bank 1 - definition, kinds, functions and importance other services and modern trends in banking sector types of banks diversified banking functions

  1. Remat

  2. Demat

  3. both (A) and (B)

  4. only A

Show answer
Correct Option: B
Explanation:

Dematerialisation or Demat in short is the process through which an investors physical share certificate gets converted to electronic format which is maintained in an account with the Depository Participant.

Which of the following is/are the benefit(s) of e-banking to the banker?

business organisation and correspondence bank 1 - definition, kinds, functions and importance other services and modern trends in banking sector types of banks diversified banking functions

  1. Competitive advantage

  2. Network is expanded beyond branches

  3. Centralised database reduces work load

  4. All of the above

Show answer
Correct Option: D
Explanation:
E-banking can be defined as a method of banking. Through e-banking customers can conduct transactions electronically. E-banking is a product designed for the purpose of online banking. Benefits of e-banking to the banker are:
a) Competitive advantage
b) Network is expanded beyond branches
c) Centralized database reduces work load.

Image-based cheque clearing system where the image of the cheque is sent electronically _____________.

business organisation and correspondence bank 1 - definition, kinds, functions and importance other services and modern trends in banking sector types of banks diversified banking functions

  1. RTGS

  2. NEFT

  3. CBS

  4. CTS

Show answer
Correct Option: D
Explanation:

Image-based cheque clearing system where the image of the cheque is sent electronically is known as CTS. The Cheque Truncation System( CTS) can be defined as a process of stopping flow of physical cheque in which electronic image of the instrument is presented during the time of clearing.