Tag: diversified banking functions

Questions Related to diversified banking functions

State the following statement is True or False:
Request of secretary to the bank not to make the payment of cheque is known as stop payment.

business organisation and correspondence functions of commerical banks other services and modern trends in banking sector types of banks diversified banking functions

  1. True

  2. False

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Correct Option: A
Explanation:

Request of secretary to the bank not to make the payment of cheque is known as stop payment- this is a true statement. This request is made in order to stop the payment of the cheque so that misuse of  the cheque is prevented. This request is to be made by the customer who issued the cheeque.

______________ 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

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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

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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

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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.
Joint Stock Company opens a saving account.
business organisation and correspondence functions of commerical banks other services and modern trends in banking sector types of banks diversified banking functions

  1. True

  2. False

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Correct Option: B
Explanation:
(i) Bank is a financial institution.
(ii) It helps a company. in solving the difficulties of money. 
(iii) It also provides number of services to the Joint Stock Company. 
(iv) Joint Stock Company mostly deals, with the Commercial Banks / Co-operative Bank. 
(v) The company receives number of cheques, demand drafts to be encashed and also number of cheques for payment. 
(vi) The Joint Stock Company takes help of banks for short term credit facilities and long term financial assistance.
(vii) For all this, it has to open a current account with the bank. 
(viii) To encourage saving habit among people, a bank allows depositors to open saving account. 
(ix) In such type of account, the depositor can withdraw money only two times in a week. 
(x) Trading or business concerns, firms or Joint Stock Company should not open saving account.

State with reasons whether the following statements are True or False.
In cash credit, customers account is credited by a bank with the sanctioned amount.

business organisation and correspondence functions of commerical banks other services and modern trends in banking sector types of banks diversified banking functions

  1. True

  2. False

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Correct Option: A
Explanation:

Cash credit is a facility given to current account holder of the bank, to withdraw money even when there is no credit balance. 

There is a limit fixed to the borrowing. The interest on this facility is charged on the running balance and not on the borrowing limit.

Bank is a ________ institution.
business organisation and correspondence functions of commerical banks other services and modern trends in banking sector types of banks diversified banking functions

  1. financial

  2. social

  3. cultural

  4. all of above

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Correct Option: A
Explanation:

Bank is a financial  institution. It accepts deposits from the lenders and gives loans tot he borrowers. Banks help to improve the financial stability of an economy.

Board resolution is not required to open the current account with a bank.

business organisation and correspondence functions of commerical banks other services and modern trends in banking sector types of banks diversified banking functions

  1. True

  2. False

Show answer
Correct Option: B
Explanation:

As a Company is a separate legal entity, the board resolution is required in addition to the other documents for opening a bank account.