Everyday Banking Quiz

What is the primary function of banking?

• Accepting deposits

• Providing insurance

• Selling stocks

• Offering real estate services

Which type of bank oversees monetary policies?

• Co-operative Banks

• Central Banks

• Investment Banks

• Commercial Banks

What does a passbook contain?

• Loan agreements

• Transaction history

• Investment portfolios

• Insurance policies

What is a cheque book used for?

• Opening savings accounts

• Making payments

• Issuing loans

• Depositing cash

What is the purpose of the MICR code on a cheque?

• To indicate the cheque's validity

• To record the payee's name

• To facilitate cheque clearing

• To identify the cheque number

What is a demand draft?

• A type of savings account

• A pre-paid financial instrument

• A loan agreement

• A type of investment scheme

What is a transfer cheque used for?

• Transferring funds within the same bank

• Transferring funds between banks

• Clearing outstation cheques

• Issuing demand drafts

What is the first step in filling up a cheque?

• Enter the amount in words

• Write the current date

• Sign the cheque

• Mention the payee's name

What does a payable at par cheque allow?

• Deposit at any branch without extra charges

• Cash only at the issuing branch

• Issue loans without collateral

• Transfer funds internationally

What is the role of a clearing house?

• To provide investment advice

• To open new bank accounts

• To facilitate fund transfers between banks

• To issue loans