q1
A minor can open a bank account:
A) Only jointly with guardian
B) In his own name if above a certain age
C) Only after 21 years
D) Never
In his own name if above a certain age
The primary relationship between banker and customer is:
A) Trustee and beneficiary
B) Debtor and creditor
C) Principal and agent
D) Lessor and lessee
Debtor and creditor
The principle of safety means:
A) High profit
B) Security of funds
C) Long tenure
D) No documentation
Security of funds
Liquidity ensures that:
A) Loan can be quickly converted to cash
B) Loan earns high interest
C) Loan is long term
D) Loan is unsecured
Loan can be quickly converted to cash
Overdraft facility is generally given to:
A) Savings account holders
B) Current account holders
C) Minors
D) Fixed deposit holders only
Current account holders
Bill discounting means:
A) Buying goods
B) Discounting bill before maturity
C) Cancelling bill
D) Refusing bill
Discounting bill before maturity
IMPS stands for:
A) Immediate Payment Service
B) Instant Money Processing System
C) Internal Money Payment Service
D) Indian Money Payment System
Immediate Payment Service
RTGS is suitable for:
A) Low-value transactions
B) High-value urgent transactions
C) Offline payments
D) Cash withdrawal
High-value urgent transactions
UPI stands for:
A) Unified Payment Interface
B) Universal Payment Interface
C) Unified Payment Internet
D) Unique Payment Interface
Unified Payment Interface
The regulatory authority for EFT systems in India is:
A) SEBI
B) RBI
C) IRDAI
D) NABARD
RBI
NEFT works on:
A) Real-time basis
B) Batch processing system
C) Weekly settlement
D) Manual clearing
Batch processing system
The Banking Ombudsman is appointed by:
A) Central Government
B) RBI
C) Supreme Court
D) Finance Ministry
RBI
Repo rate is the rate at which:
A) Banks lend to customers
B) RBI lends to banks
C) Banks lend to RBI
D) RBI lends to public
RBI lends to banks
A complaint can be filed with the Ombudsman if the bank fails to respond within:
A) 10 days
B) 15 days
C) 30 days
D) 60 days
30 days
Lower repo rate leads to:
A) High borrowing cost
B) Low liquidity
C) More borrowing by banks
D) Reduced credit
More borrowing by banks
When reverse repo rate increases:
A) Banks lend more
B) Banks park more funds with RBI
C) Inflation rises
D) Credit increases
Banks park more funds with RBI
Final authority in Banking Ombudsman appeals lies with:
A) RBI Appellate Authority
B) SEBI
C) Supreme Court directly
D) Finance Ministe
RBI Appellate Authority
Mr. Arun wants to deposit money for 2 years and earn higher interest. He does not want frequent withdrawals. Which deposit is suitable?
A) Current Account
B) Savings Account
C) Fixed Deposit
D) Recurring Deposit
Fixed Deposit
Priya breaks her Fixed Deposit before maturity due to emergency. The bank will likely:
A) Pay extra interest
B) Impose penalty
C) Double the interest
D) Close all accounts
Impose penalty
A pensioner prefers an account earning moderate interest with limited withdrawals. Which is suitable?
A) Current Account
B) Savings Account
C) Call Deposit
D) Cash Credit
Savings Account
minor opens a savings account and deposits money. The bank–minor relationship is mainly:
A) Trustee–Beneficiary
B) Debtor–Creditor
C) Agent–Principal
D) Bailor–Bailee
Debtor–Creditor
A current account holder frequently issues cheques beyond balance without approval. The bank may:
A) Honour all cheques
B) Dishonour cheques
C) Convert to FD
D) Close RBI account
B) Dishonour cheques
A joint account marked “Either or Survivor” allows:
A) Only both jointly
B) Either holder to operate
C) Manager to operate
D) RBI to operate
B) Either holder to operate
A recurring deposit matures and customer does not withdraw. Relationship continues as:
A) Bailment
B) Agency
C) Debtor–Creditor
D) Trustee
Debtor–Creditor
If a bank fails to return a fixed deposit on maturity, the customer can sue for breach of:
A) Trust
B) Contract
C) Agency
D) Bailment
B) Contract