Banking and Financial Services Quiz

What is the primary function of a commercial bank?

• Manufacturing goods

• Accepting deposits and lending money

• Printing currency

• Regulating the stock market

Which of the following is NOT a type of deposit accepted by commercial banks?

• Savings deposit

• Current deposit

• Fixed deposit

• Government bond

How do commercial banks make a profit?

• By charging high transaction fees only

• By printing money

• By earning interest on loans and investments

• By collecting taxes

According to the Banking Regulation Act, 1949, what is the main function of a bank?

• To regulate the share market

• To issue government bonds

• To accept deposits and provide loans

• To sell insurance policies

Which of the following is an example of a commercial bank?

• Securities and Exchange Board of India (SEBI)

• Reserve Bank of India (RBI)

• International Monetary Fund (IMF)

• State Bank of India (SBI)

Banks only provide loans to individuals, not businesses. (True/False)

• False

• Depends on the bank

• True

• Not applicable

Deposits in commercial banks are always at risk and never insured. (True/False)

• True

• False

• Depends on the type of deposit

• Only for large deposits

Mobile banking and online fund transfers are functions of commercial banks. (True/False)

• Only for business accounts

• False

• True

• Only for certain banks

The Banking Regulation Act, 1949, defines banking as accepting deposits for lending and investment. (True/False)

• False

• Only for public sector banks

• Only for commercial banks

• True

Commercial banks can create credit by lending more than they hold in deposits. (True/False)

• Only in emergencies

• False

• True

• Only with regulatory approval