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