A level Commercial Banks Quiz 1

15 Questions

Quiz Description

In this quiz, we will be talking about commercial banks. The study of commercial banks is very relevant to anyone studying economics. You will get to know about the relationship between a commercial bank and a customer as well as some services offered by commercial banks. This quiz has all that covered. 

A commercial bank is an institution that accepts deposits, offers checking account services, offers some financial products such as certificates of deposit (CDs), and offers various categories of loans. Commercial banks also offer savings accounts to individuals and small businesses. The main capital of commercial banks comes from customer deposits, and they make money from it via interests from loans. They also make money from a variety of fees. Often located in strategic physical locations, financial banks are very important in an economy as they create capital, credit, and liquidity in the market.

Are you willing to know more about the functioning of banks? Take this economics quiz and get exposed to a lot of information on that. Good luck. 

1:

  ________ refers to that portion of total deposits with a commercial bank has to keep with the central bank: 


Correct
  • 1:
    SLR
  • 2:
    Bank rate
  • 3:
    CRR
  • 4:
    None
2:

 The primary relationship between a banker and customer starts from the time 


Correct
  • 1:
    when customer visits that bank
  • 2:
    when customer opens account
  • 3:
    when customer visits that bank to made queries
  • 4:
    All of the above
3:

 _____ is the rate at which the central bank discounts the bills of commercial banks: 


Correct
  • 1:
    SLR
  • 2:
    Bank rate
  • 3:
    CRR
  • 4:
    Wong
4:

 The primary relationship between banker and customer is a ------------------ relationship 


Correct
  • 1:
    Contractual
  • 2:
    Mutual
  • 3:
    Personal
  • 4:
    None of the above
5:

 Which one of the following is the most important relationship between banker and customer 


Correct
  • 1:
    Debtor and Creditor
  • 2:
    Bailee and Bailor
  • 3:
    Agency and Principal
  • 4:
    Trustee and Beneficiary
6:

 Which bank have given the instructions to the commercial banks regarding the immediate credit of outstation cheques? 


Correct
  • 1:
    Reserve Bank of India
  • 2:
    Central Bank
  • 3:
    World Bank
  • 4:
    All of the above
7:

 Dishonour of cheque by a banker without any justifiable reason is called 


Correct
  • 1:
    Valid dishonour of cheques
  • 2:
    Unmindful dishonour of cheques
  • 3:
    Negligence dishonour of cheques
  • 4:
    Wrongful dishonour of cheques
8:

 Special damages refers to damages payable by a banker to his customer for the actual -------- ----- loss suffered by customer 


Correct
  • 1:
    Financial
  • 2:
    Special
  • 3:
    Unpecuniary
  • 4:
    Unfinancial
9:

 MICR technology used for clearance of cheques by banks refers to 


Correct
  • 1:
    Magnetic Ink Company Recognition
  • 2:
    Magnetic Ink Cross Recognition
  • 3:
    Magnetic Ink Character Recognition
  • 4:
    Magnetic Ink Community Recognition
10:

 Which banks which accept deposits from the public and lend them mainly to commerce for short periods? 


Correct
  • 1:
    Commercial Bank
  • 2:
    Industrial Bank
  • 3:
    Agricultural Bank
  • 4:
    Central Bank
11:

 Fixed Deposits is otherwise called as 


Correct
  • 1:
    Accrued Deposits
  • 2:
    Time deposits
  • 3:
    Recurring Deposits
  • 4:
    Demand Deposits
12:

 In which type of deposit, the high rate of interest is provided by the Bank? 


Correct
  • 1:
    Current Account
  • 2:
    Recurring Deposit Account
  • 3:
    Fixed Deposit Account
  • 4:
    Savings Account
13:

  The rate of interest charged for the loan by the banker compared to overdraft and cash credit is generally 


Correct
  • 1:
    High
  • 2:
    Low
  • 3:
    Same
  • 4:
    Based on the amount
14:

 Which of the following terms is used in banking field? 


Correct
  • 1:
    Interest rate swap
  • 2:
    Input devices
  • 3:
    Sedimentary
  • 4:
    Zero Hour
15:

 Expand the term EMI as used in banking/finance sector? 


Correct
  • 1:
    Easy Monthly Instalment
  • 2:
    Equal Monthly Investment
  • 3:
    Equated Monthly Instalment
  • 4:
    Equated Mortgage Investment

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A level Commercial Banks Quiz 1
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