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WorksheetsBANKING AND ITS FUNCTIONS
Total questions: 23
Worksheet time: 15mins
What of the following is true? Bank... (4)
is a financial institution
is a financial intermediary
is a private business and is not regulated
connects customers that have capital deficits to customers with capital surpluses
accepts deposits and channels those deposits into lending activities
Which of the following are the functions of commercial banks (both primary and secondary)? (3)
maintain record of Government revenue and expenditure
determine foreign exchange rates
exchange foreign currencies
receive deposits
give loans
What functions have the merchant (investment) banks? (2)
raise funds for industry on the various financial markets
determine foreign exchange rates
finance international trade
receive deposits
What are the main functions implemented by the Central bank? (4)
It prints the national currency and determines foreign exchange rates
it advises the Government on monetary and credit policies and maintains record of Government revenue and expenditure
offer stockbroking and portfolio management services to rich corporate and individual clients
it decides on the interest rates for bank deposits and bank loans
maintain deposit accounts of all other banks and advances money to other banks, when needed
What is the difference between current and fixed deposit?
Current deposit is only for small sums of money
Fixed deposits can be withdrawn any time, but current deposits can not
Current deposits can be withdrawn any time, but fixed deposits can not
What types of loans do you know? (3)
Savings
Cash credit
overdraft
current
Mortage
What is collateral?
Hollywood movie with Tom Cruise
an asset to secure the loan
the board of directors of the central bank
member of bank staff
Why banks make profit? The main source
They collect more interest than they pay to savers
They pay more to savers than they collect
They sell a lot of currency
They render a lot of consult services
What kind of bank does not take or keep the money of individual?
investment (merchant)
commercial
retail
savings
Which of the following are Central banks? (3)
Federal Reserve of the United States
Bank of England
Central Bank of Russia
Barclays
Sberbank
When writing a check, it is a good idea to use
pencil
erasable pen
blue or black ink pen
red pen
When writing a check, it is a good idea to use
pencil
erasable pen
blue or black ink pen
red pen
When writing a check, it is a good idea to use
pencil
erasable pen
blue or black ink pen
red pen
Acting as a Government's bank means
All the government departments have an account at the Central Bank
All the members of parliament have an account at the Central Bank
Prime Minister has an account tat Central Bank
None of the Above
the Function of The Central Bank that control the money supply is
lender of last resort
Advisor to the government
controls the issue of currency
bankers bank
The Function of the Central bank that helps the government to get a loan is
the governments bank
governments' advisor
managing government borrowing
bankers bank
Banks control the money supply by
restricting the amount of money in circulation
lending
borrowing
printing more money
The rate of interest at which RBI lends to the commercial banks for short period is
(a)
The rate at which the RBI borrows from Commercial banks is
(a)
Proportion of total deposits of a commercial bank which it has to keep with itself in the form of cash reserves, gold and government reserves
(a)
Minimum percentage of the total deposits with the commercial banks which they are required to maintain in the form of cash reserves with the central banks
(a)
During inflation, CRR is
(a)
As a fiscal agent, central bank manages
(a)
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