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Commercial Banks

Total questions: 15

Worksheet time: 12mins

Name
Class
Date
1.

I'm an institution which performs the function of accepting deposits, lending funds & making an investment with the main aim of profit maximization.


What am I?

a)

Commercial Bank

b)

Central Bank

c)

Government

d)

None of these

2.

In this type of deposit, interest is charged from the customer

a)

Fixed Deposit

b)

Demand deposit

c)

Saving deposits

d)

none of the above

3.

For the bank, the amount of money in the account of the accountholder is called:

a)

Profit

b)

Deposit

c)

Interest

d)

Loan

4.

Which bank accepts the deposits from the public?

a)

Commercial Banks

b)

State Bank

c)

Mortgage Bank

d)

All of the above

5.
What is the other name for "fixed deposit"?
a)
Demand deposit
b)
Current account
c)
Time deposit
d)
Deposit account
6.
Which is NOT a function of commercial bank?
a)
Providing financial and tax planning advice
b)
Print money
c)
Providing insurance
d)
Exchanging foreign currencies
7.
Which of the loan types has the lowest interest and needs to be repaid in a shorter time period?
a)
Overdraft
b)
Mortgage
c)
Higher purchase
d)
Commercial loan
8.

_____________ deposits carry high rate of interest.

a)

Demand

b)

Fixed

c)

Short Term

9.

Demand deposit are also known as ___________

a)

Saving Deposit

b)

Fixed Deposit

c)

Time Deposit

d)

Current Deposit

10.

Fixed Deposits are chequable.

a)

True

b)

False

11.

Interest is paid by the bank on Demand Deposits

a)

True

b)

False

12.

The part of deposits kept with the central bank is called:

a)

Cash reserve

b)

Margin

c)

Interest rate

d)

All of these

13.

Which of the following functions are performed by the commercial banks?

a)

Issuance of currency notes

b)

Rediscounting of bills

c)

Preparation of monetary policy

d)

Credit creation

14.
Which type of payment would be charged an interest if not paid in a certain time of period?
a)
Cash 
b)
Credit card
c)
Debit card
d)
Cheque
15.

Institutions such as banks that collect funds from savers that can be loaned to borrowers are known as:

a)

Financial intermediaries

b)

Dividends

c)

Financial assets

d)

Credit Unions