Finance

What is the primary function of an agricultural bank?

• a) Providing investment advice to farmers.

• b) Offering financial services to individuals and businesses in urban areas.

• c) Providing credit, savings, and insurance to support the agricultural sector.

• d) Facilitating international trade transactions.

What is a unique feature of agricultural banks compared to traditional commercial banks?

• a) They offer higher interest rates on deposit accounts.

• b) They primarily focus on wealth management services.

• c) They often offer subsidized interest rates on loans for farmers.

• d) They specialize in foreign currency exchange.

Which of the following statements is NOT true about agricultural banks?

• They are typically established or supported by governments or international organizations.

• They may offer seasonal loan products to align with farmers' cash flow needs.

• Their primary purpose is to generate profit for shareholders.

•  They can provide technical assistance and capacity-building programs to farmers.

What is the main difference between an agricultural bank and a savings bank?

• a) Agricultural banks offer checking accounts, while savings banks do not.

• b) Savings banks provide financial services exclusively to rural communities.

• c) Agricultural banks primarily serve the agricultural sector, while savings banks serve a broader range of customers.

• d) Agricultural banks offer insurance products, while savings banks do not

What is a key benefit of exchange banks for businesses involved in international trade?

• a) They offer tax filing services for international transactions.

• b) They provide legal advice on international trade regulations.

• c) They help businesses manage foreign exchange risk through hedging products.

• d) They offer loans specifically for financing international trade activities.

Which of the following is NOT a function of an exchange bank?

• a) Providing investment advice on foreign stocks and bonds.

• b) Facilitating international money transfers.

• c) Offering foreign currency accounts for businesses and individuals.

• d) Exchanging one currency into another for individuals and businesses.

How do exchange banks contribute to global economic growth?

• a) They offer financial literacy workshops for individuals in developing countries.

• b) They provide scholarships for students pursuing international business degrees.

• c) They facilitate cross-border trade and investment by enabling efficient currency exchange.

• d) They offer low-interest loans to small businesses in emerging economies.

What is the meaning of "financial inclusion" in the context of agricultural banks and savings banks?

• a) Providing financial services to individuals with a high net worth.

• b) Offering investment products with high potential returns.

• c) Making financial services accessible to individuals and communities who may not have access to traditional banking systems.

• d) Providing financial services exclusively to individuals living in rural areas.

What is a potential risk associated with using exchange banks for international transactions?

• a) They may have limited business hours and offer inconvenient service times.

• b) They may not offer competitive exchange rates for all currencies.

• c) They are susceptible to fraud and cyber security threats.

• d) They may have hidden fees associated with their services.

What is the primary purpose of savings banks?

• a) To provide financial services exclusively to small businesses.

• b) To offer investment products with high growth potential.

• c) To accept deposits from individuals and pay interest on their savings.

• d) To facilitate international trade transactions and currency exchange.