MCQ ON BANKING
A drawer can also be a _________.
A. Payee.
B. paymaster.
C. banker
D. creditor
ANSWER: A
The rate at which RBI discounts approved bill of exchange is ___________.
A. bank rate
B. interest rate
C. exchange rate
D. discount rate
ANSWER: D
A company who accepts demand deposit is called ___________.
A. banking company
B. joint stock company
C. manufacturing company
D. IT company
ANSWER: A
The lien is __________.
A. method to create charge over customers property
B. not used for respective customer’s account.
C. not used for loan
D. used for loan
ANSWER: A
One-rupee notes bear the signature of ______.
A. president of India
B. prime minister of India
C. governor of Reserve Bank of India
D. secretary, Ministry of finance (Government of India).
ANSWER: D
Small coin depot is the property of _____.
A. State bank of India
B. Government of India
C. Reserve bank of India
D. Indian bank.
ANSWER: B
A Banking company whose license is cancelled may appeal to the ___.
A. High court.
B. Supreme court
C. RBI.
D. Central government
ANSWER: D
Who controls credit in India?
A. Government of India.
B. RBI.
C. SBI.
D. Indian bank
ANSWER: B
RBI grants for agricultural purposes _____.
A. only short-term finance.
B. medium- and long-term finance.
C. short and medium-term finance only
D. short-, medium- and long-term finance
ANSWER: C
The apex institution in agricultural finance is______.
A. NABARD
B. EXIM bank
C. RBI
D. IDBI
ANSWER: A
IFCI was established in _____.
A. 1947.
B. 1948
C. 1951
D. 1956.
ANSWER: B
IFCI has its registered office in _______.
A. Bombay
B. Madras
C. New Delhi
D. Calcutta.
ANSWER: B
LIC was set up in _______.
A. 1948
B. 1951
C. 1956
D. 1964
ANSWER: C
ICICI was incorporated in ______.
A. 1948
B. 1955
C. 1956
D. 1964
ANSWER: B
The head office of a bank is responsible for_________.
A. only Bank-level planning
B. only Bank-level planning, control functions
C. bank-level planning, control functions and policy decision
D. only services
ANSWER: C
Core banking is a __________ branch computerization model.
A. decentralized
B. centralized.
C. unified
D. ATM
ANSWER: A
The objective of computerization in India is to _____.
A. replace men with machines
B. make the work-life more meaningful
C. control the manpower
D. control the economy
ANSWER: A
What does the term “PIN” stands for?
A. People Identification Number
B. Personal Instruction Number
C. Personal Identification Number
D. Personal Information Number
ANSWER: C
The primary relationship between a banker and customer starts from the time
A. when customer visits that bank
B. when customer opens account
C. when customer visits that bank to made queries
D. All of the above
ANSWER: B
Commercial banks provide ____________.
A. Long term loans
B. medium-term loans
C. short term loans
D. all the above
ANSWER: D
The services rendered by a banker as an agent of his customers are called
A. Principal services
B. Agency services
C. General utility services
D. Social services
ANSWER: B
Which of the following is not the function of the commercial bank?
A. Issue of paper notes.
B. Acceptance of deposits
C. Advancing loans
D. Credit control
ANSWER: A
RTGS Stands for_______________.
A. Real time gross settlements
B. Reduced time gross settlements
C. Relative time gross settlements
D. Real time gross securities
Answer: A
what is the name given to the online payment services that all internet banking
customers can use?
A. E- pay
B. E- commerce
C. ECS
D. All of these
Answer: A
Which of the following is necessary to transfer funds through the RTGS
facility?
A. The IFSC number of the beneficiary’s banks branch
B. there is a minimum amount specified for transfer
C. beneficiary ‘s bank account number
D. All of the above
Answer: D
Tele banking service is based on _________.
A. virtual banking
B. online banking
C. voice banking
D. none of these
Answer: C
A debit card is issued by a bank to_______________.
A. all customers to a bank
B. all customers having savings bank account with a bank
C. a bank customer who is income tax assesses
D. all customer having loan account with a bank
Answer: B
Real time gross settlement benefits_______.
A. the customer
B. the banks
C. reserve bank of India
D. A and B
Answer: D
What is the primary need for cyber security in Digital Banking?
A. To protect bank’s assets
B. To protect customer’s assets
C. To promote digitalization
D. To attract customers
Answer: B
Cyber security in Digital Banking ensures
A. Sensitive data is safe and secure
B. Digital cash is secured
C. Bank’s data is safe
D. Customer is safe
Answer: A
Which of these is a challenge relating to cyber security in digital banking?
A. Lack of awareness
B. Lack of resources
C. Strong identity management
D. Decreasing ransomware
Answer: A
What should you do to protect yourself while transacting online?
A. Open links from suspicious e-mails
B. Share OTP
C. Share pin
D. Change your passwords on regular basis
Answer: D
________that lets cardholders borrow funds with which to pay for goods and
services.
A) Debit card
B) Credit card
C) ATM card
D) Smart card
Answer: B
_______ of individual increased by using credit card.
A) loans
B) purchasing power
C) Bank balance
D) limit
Answer: B
Responsible use of a credit card over time builds your ________?
A) Image
B) Good credit history
C) Block of card.
D) All of above
Answer: B
By using credit card, you are actually _______ a money from bank
A) Borrowing
B) Wasting
C) spending
D) all of above
Answer: A
A debit card holder makes payment for purchase_______
A. After 15 days
B. After 20 days
C. After a month
D. immediately through his account
Answer: D
How was the date printed on debit card issue and expiration?
A. MY/YM
B. MM/YY
C. YY/MM
D. YM/MY
Answer: B
Which are following disadvantage of debit card ?
A. Easily accepted
B. Earn rewards
C. No more debts
D. No credit allowed
Answer: D
Internet banking also known as?
a) internet banking
b) online banking
c) mobile banking
d) core banking
Answer: b) online banking
Which of the following is include internet banking
a) RTGS
b) NEFT
c)ECS (immediate payment service)
d)ALL of the above
Answer: d) All of the above
Which is the following advantage of internet banking
a) high liquidity
b) monitoring service
c) online bills payment
d) all of the above
Answer: d) all of the above
Internet banking has improved the ………. of services by providing them
a) monitoring
b) security
c) payment
d) quality
Answer: d) quality
Which is the following greatest advantage of internet banking.
a) high liquidity
b) monitoring service
c) online bills payment
d) transfer service
Answer: a) high liquidity
Lack of direct communication between the customer and the banking office is
what internet banking is all about?
a) factor
b) advantages
c) disadvantages
d) advantages and disadvantages
Answer: c) disadvantages
Expansion of eft
A) Electronic fund transfer
B) economics fund transfer
C) European fund transfer
D) electric fund transfer
Answer: A
The most popular form of eft is ....
A) direct deposit
B) phone payment
C) ATM transaction
D) card transaction
Answer: A
An example of on-line currency exchange is.
A) debit or prepaid
B) credit or post paid
C) e-cash
D) none
Answer: C
_______is the best feature of eft.
A) easy method
B) quick method
C) security
D) none of these
Answer: C
EFT stand for electronic fund......
A) trading
B) transmission
C) transport
D) transfer
Answer: D
EFT is .........transfer between bank
A) debit
B) credit
C) both 1&2
D) none
Answer: C
EFT introduced by
A) IRDA
B) RBI
C) SEBI
D) NSE
Answer: B
In which year (EFT) was launched in India?
A)1994
B)1995
C)1999
D)2000
Answer: B
Which is largest commercial bank of country.
A) BOI
B) Canara bank
C) SBI
D) UBI
Answer: C
How many digits in IFSC code?
A)9
B)15
C)10
D)11
Answer: D
NEFT work on the principal of which of the following.
A) gross batch settlement
B) deferred net settlement
C) priority net settlement
D) Domain settlement
Answer: A
The ATM installed at bank premises is called as .... ATM?
A) off-site
B) branch
C) on-site
D) mobile
Answer: D
Maximum limit on the number of individual transactions permitted for fund
transfer per transaction is.
A)1 lakh
B)2lakh
C)5 lakh
D)10 lakh
Answer: C
The ATM pin is ____digit code number
A)4
B)5
C)3
D)6
Answer: A
What is the Full form of NEFT?
A) National Exchange of Funds Transfer
B) National Electronic Financial Transfer
C) Net Electronic Funds Transfer
D) National Electronic Funds Transfer
Answer: A) National Electronic Funds Transfer
Which of the following is not a feature of RTGS?
A) Real Time
B) Gross Basis
C) Netting
D) Order by Order settlement
Answer: c) Netting
Which of the following are included in the digital payment system?
A) RTGS
B) Demand draft
C) NEFT
D) cheque
Choose the correct option from the following:
A) a and d
B) b and d only
C) a and c only
D) c and d
Answer: c) a and c only
What is the maximum limit per transaction in NEFT?
A) 100000
B) 55000
C) 150000
D) No such limit
Answer: D) No such limit
On which year National Electronic Fund Transfer started in India?
A) 2008
B) 2003
C) 2005
D) 2001
Answer: C) 2005
What is the minimum amount of money can be transferred through RTGS??
A) 2 lakh
B) 2.5 lakh
C) 4 lakh
D) 3.5 lakh
Answer: A) 2 lakhs
NEFT works on the principle of which of the following?
A) Gross Batch Settlement
B) Priority Net Settlement
C) Domain Net Settlement
D) Deferred Net Settlement
Answer: D) Deferred Net Settlement
On which year RTGS introduced??
A) 2 April 2005
B) 10 March 2002
C) 26 March 2004
D) 11 March 2001
Answer: C) 26 March 2004
What are NEFT and RTGS about?
A) Cheque truncation process
B) Electronic fund transfer from bank to bank
C) Electronic payment products within a bank
D) Various deposit products
Answer: B) Electronic fund Transfer from bank to bank
NEFT settlement is done in –
A) Hourly batches
B) Real time
C) Daily batches
D) none of the above
Answer: A) Hourly batches
What can be the maximum service charge for RTGS?
A) ₹25
B) ₹100
C) ₹55
D) ₹99
Answer: C) ₹55
Expand NEFT
A) National Electronic Fund Transfer
B) Neutral Electronic Fund Transfer
C) Nominal Electronic Fund Transfer
D) Natural Electronic Fund Transfer
Answer: A) National Electronic fund Transfer
RTGS means
A) Real Towards Gross Settlement
B) Real Turn Gross Settlement
C) Real Technique Gross Settlement
D) Real Time Gross Settlement
Answer: D) Real Time Gross Settlement
What is the maximum amount stipulation for RTGS transactions?
A) Rs 10 lakh
B) Rs 50 lakh
C) Rs 1 Crore
D) No Limit
Answer: D) No limit
