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Questions and Answers
EMI stands for _____________.
EMI stands for _____________.
The Imperial Bank of India was renamed as __________________.
The Imperial Bank of India was renamed as __________________.
Interest on a current account is earned on the available balance.
Interest on a current account is earned on the available balance.
False
What is required to operate an Automated Teller Machine (ATM)?
What is required to operate an Automated Teller Machine (ATM)?
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The rate of interest on a fixed deposit account is __________ than that of a savings account.
The rate of interest on a fixed deposit account is __________ than that of a savings account.
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Match the following banking services with their descriptions:
Match the following banking services with their descriptions:
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Name one advantage of Internet Banking.
Name one advantage of Internet Banking.
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Where did banking first originate?
Where did banking first originate?
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The State Bank of India was originally started as the Imperial Bank of India in 1955.
The State Bank of India was originally started as the Imperial Bank of India in 1955.
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What is the role of a depositor in a bank?
What is the role of a depositor in a bank?
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To open a bank account, an individual must provide a copy of _____ proof.
To open a bank account, an individual must provide a copy of _____ proof.
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Match the type of bank account with its purpose:
Match the type of bank account with its purpose:
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Which document is used to record all transactions in a bank account?
Which document is used to record all transactions in a bank account?
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An individual can withdraw money without using an ATM card.
An individual can withdraw money without using an ATM card.
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What must a borrower pay in addition to the loan amount?
What must a borrower pay in addition to the loan amount?
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Study Notes
Origin of Banks
- Banking originated in temples of Babylonia before 2000 BC.
- Greek, Jewish, and Italian banking systems followed.
- Bank of Bengal was the first banking institution in India.
- Imperial Bank of India was established in 1921, later becoming State Bank of India (largest in India).
What is a Bank?
- A bank is a place to deposit and withdraw money safely.
- Depositors earn interest.
- Borrowers repay loans with interest (EMIs).
- Required documents for account opening include: account opening forms, copies of address proof, and a photograph.
- Banks issue account numbers and associated documents (e.g. pay-in-slips, cheque books, passbooks, logins)
Bank Account Types
- Savings Bank Account: Promotes saving habits, often with restrictions on the number and deposit amounts. Earns interest on deposits.
- Current Bank Account: Used by businesses and companies. Allows overdrafts, more frequent transactions, and higher withdrawal limits that don't always include interest payments.
Bank Services
- ATM Cards (Debit Cards): Allow deposits and withdrawals, balance checks, and transactions without visiting a branch.
- Passbooks: Record all transactions in a bank account.
- Cheque Books: Used for payments; signatures are essential for valid cheques
- Investment services: Banks provide various investment options.
- Other services: Accepting payment for utility bills, taxes, and various other fees.
Other Account Details
- Fixed Deposits: Depositors invest a lump sum for a set period; fixed interest rates are typically higher than savings accounts.
- Recurring Deposits: Regular deposits of specific amounts over a set period (monthly or quarterly) earns interest for the set period.
Electronic Banking
- Allows banking activities from home.
- Enables checking balances, transactions, and bill payments (electricity, phone, etc.).
- Bank account holders can make requests for cheque books.
Additional Information
- PIN stands for Personal Identification Number (crucial for ATM security).
- EMI stands for Equated Monthly Installment.
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Description
Explore the evolution and types of banking from ancient Babylonia to modern India. This quiz covers the definition of banks, their functions, and various account types, such as savings and current accounts. Test your knowledge on banking origins and practices!
