27 Questions
Match the following banking terms with their definitions:
Overdraft Facilities = Allows drawing over the account limit Fixed Deposits = Time deposits that cannot be withdrawn early Interest on credit balance = Allowed on this account Advancing Loans = Making loans to all types of persons
Match the following statements with the correct banking function:
Encourages thrift or savings = Fixed Deposits Making loans against personal security = Advancing Loans Allowing withdrawal over account limit = Overdraft Facilities Attracts depositors for safety and interest = Fixed Deposits
Match the following terms with their characteristics:
Withdrawal restrictions = Fixed Deposits Higher interest rate for borrowing against account = Fixed Deposits Encourages specified amount withdrawal = Overdraft Facilities Accepted between three months and ten years = Fixed Deposits
Match the following functions with their descriptions:
Primary function of making loans = Advancing Loans Primary function of allowing overdrafts = Overdraft Facilities Primary function of attracting depositors with interest = Fixed Deposits Makes loans to businessmen and entrepreneurs = Advancing Loans
Match the type of deposits with their characteristics:
Current Deposits = Demand deposits with no interest allowed Savings Deposits = Meant for professional men and middle class people Fixed Deposits = Deposits that have a restriction on withdrawal amount Term Deposits = Deposits made by businessmen and industrialists
Match the primary banking functions with their descriptions:
Acceptance of Deposits = Main function involving three types of deposits Advancing Loans = Function related to providing financial support Creation of Credit = Function that helps in expanding financial activities Promote Cheques Facilities = Function facilitating payment transfers through cheques
Match the descriptions with the corresponding deposit types:
Can be withdrawn at any time with no interest = Current Deposits Meant for small savings with withdrawal restrictions = Savings Deposits Requires leaving a minimum balance with the bank = Current Deposits Popular among businessmen and industrialists = Current Deposits
Match the deposit types with their target customers:
Current Deposits = Businessmen and industrialists Savings Deposits = Professional men and middle class people Fixed Deposits = Individuals looking to deposit a fixed amount for a specific term Term Deposits = People aiming to save small amounts regularly
Match the activities with the primary banking functions they relate to:
Making large payments through banks = Acceptance of Deposits Providing financial support to customers = Advancing Loans Expanding financial activities of the bank = Creation of Credit Facilitating payment transfers using cheques = Promote Cheques Facilities
Match the deposit types with their features:
Can be opened without any introduction = Savings Deposits Restrictions on maximum withdrawal limits = Savings Deposits Requirement to keep a certain undrawn balance with the bank = Current Deposits Use of cheques for withdrawal purposes = Current Deposits
Match the following banking functions with their descriptions:
Agency Services = Includes collection and payment of credit instruments like cheques and bills of exchange General Utility Services = Provides facilities to remit funds from one place to another for customers Purchase and Sale of Securities = Involves buying and selling securities like shares, stocks, bonds, debentures on behalf of customers Income-tax Consultancy = Offers assistance in preparing income tax returns and obtaining refunds for customers
Match the following banking activities with their outcomes:
Collection and Payment of Credit Instruments = Involves collecting and paying cheques, bills of exchange, and promissory notes on behalf of customers Collection of Dividends on Shares = Involves collecting dividends and interest on shares and debentures for customers Purchase and Sale of Securities = Involves buying and selling shares, stocks, bonds, debentures for customers Income-tax Consultancy = Includes preparing income tax returns and assisting in getting income tax refunds for customers
Match the following financial instruments with their functions:
Cheques = Primary method for settling debts instead of using cash Bills of Exchange = Credit instruments collected and paid by banks on behalf of customers Shares and Debentures = Securities bought and sold by banks for customers Promissory Notes = Credit instruments handled by banks during collection and payment processes
Match the following services provided by banks with their importance:
Agency Services = Of immense value to the people at large General Utility Services = Facilitates remittance of funds from one place to another for customers Purchase and Sale of Securities = Helps customers in trading various financial instruments Income-tax Consultancy = Assists customers in tax return preparation and refund procedures
Match the following banking functions with their significance:
Agency Services = Performing functions on behalf of customers for convenience General Utility Services = Enhancing accessibility by providing fund remittance services across branches Income-tax Consultancy = Supporting customers in tax matters for financial planning Collection of Dividends on Shares = Ensuring dividends are collected and credited to customer accounts accurately
Match the following securities with their characteristics:
Shares = Represent ownership in a company and offer dividend payouts Bonds = Debt securities issued by corporations or governments for borrowing purposes Debentures = Long-term debt instruments with fixed interest rates issued by corporations Stocks = Equity investments representing partial ownership in a company
Match the following services provided by banks with their descriptions:
Locker Facility = Facility for safekeeping valuables like gold, silver, and important documents Traveler’s Cheques and Credit Cards = Issued to customers to facilitate travel without carrying large amounts of cash Letter of Credit = Certifies the creditworthiness of customers and is useful in foreign trade Collection of Statistics = Involves gathering information on trade, commerce, industries, and publishing journals on economic matters
Match the following functions of banks with their descriptions:
Execution of Standing Orders = Executing periodic payments like subscriptions, rents, insurance premiums on behalf of customers Acts as Trustee and Executor = Preserving and executing customers' wills after their death General Utility Services = Providing various services like locker facilities, traveler's cheques, credit cards, and letters of credit Credit Creation = Important function involving the creation of credit by commercial banks
Match the following actions performed by banks with their purposes:
Providing Locker Facility = Safe custody of valuables for customers Issuing Traveler’s Cheques and Credit Cards = Helping customers travel without carrying cash Issuing Letter of Credit = Certifying creditworthiness for customers in foreign trade Collecting Statistics = Gathering important information on trade, commerce, industries, money, and banking
Match each service provided by banks with its specific utility:
Locker Facility = Safekeeping valuables like shares and debentures Traveler’s Cheques and Credit Cards = Reducing risk of theft or loss of money during travels Letter of Credit = Useful in certifying creditworthiness for foreign trade transactions Collection of Statistics = Provides valuable journals and bulletins on economic and financial matters
Match each function performed by banks with its significance:
Execution of Standing Orders = Ensures timely payment execution for customers' periodic expenses Acts as Trustee and Executor = Preserves and executes customers' wills post their demise General Utility Services = Diverse services like locker facilities, traveler's cheques, credit cards, and letters of credit for customer convenience Credit Creation = Key function involving the generation of credit by commercial banks
Match the following items with their descriptions:
Money at call and short notice = Used for 'Window Dressing' in banks Bills Discounted = Consist of short term bills like bills of exchange and treasury bills Investments = Includes profit yielding assets like government and non-government securities Loans and Advances = Most profitable asset to the bank but least liquid
Match the following banking activities with their characteristics:
Bills for Collection = Appears on both sides of the balance sheet Acceptances and Endorsements = Appears as a contra item on both sides of the balance sheet Money at call and short notice = Constitutes the 'third line of defense' to the bank Loans and Advances = Very survival of the bank depends on the income earned from advancing loans
Match the following terms with their significance in banking:
Window Dressing = Desirable adjustments in the balance sheet Rediscounting bills = Allows banks to easily obtain additional funds Profit yielding assets = Part of investments in government and non-government securities Contra item on balance sheet = Seen in Acceptances and Endorsements
Match the following assets with their liquidity and profitability characteristics:
Investments = Yields profit but may not be very liquid Loans and Advances = Highly profitable but least liquid asset Bills Discounted = Highly negotiable and self-liquidating bills Money at call and short notice = Used for desirable adjustments but not very liquid
Match the following items with their importance in bank operations:
Bills for Collection = Appears on both sides of balance sheet for banks Acceptances and Endorsements = Acts as a contra item in bank balance sheets Investments = Represents total profit yielding assets of the bank Loans and Advances = Critical for earning income but may lack liquidity
Match the following banking terms with their functions:
Money at call and short notice = 'Third line of defense' for banks Bills Discounted = Investment in short term highly negotiable bills Acceptances and Endorsements = Appears as a contra item in balance sheets Window Dressing = 'Desirable adjustments' made by using certain assets
Test your knowledge on the functions of commercial banks including settlement of debts, remittance of funds, agency services, and general utility services. Explore the different secondary functions that commercial banks offer to their customers.
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