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Banking: Origin & Development

Total questions: 45

Worksheet time: 23mins

Name
Class
Date
1.

I'm a promise of payment,

written with care,

Bearer or Order,

the choice you declare.

Cross me and guard me,

don't let me stray.

a)

Cheque

b)

Demand Draft

c)

Pay-in-slip

d)

NEFT

2.

Which type of cheque is payable to the person whose name is written on the face of the cheque?

a)

Bearer Cheque

b)

Order Cheque

c)

Crossed Cheque

d)

Open Cheque

3.

I'm electronic magic,

funds on the go,

Swift and secure,

in a timely flow.

Real-time transfers,

without delay,

Which service am I?

a)

NEFT

b)

IMPS

c)

RTGS

d)

All of these

4.

Which electronic fund transfer system is typically used for high-value transactions and settles transactions individually and in real-time?

a)

NEFT

b)

RTGS

c)

IMPS

d)

ECS

5.

What is the maximum limit for an IMPS transaction in India?

a)

No Limit

b)

₹2,00,000

c)

₹5,00,000

d)

₹10,00,000

6.

In NEFT, when are the settlement batches typically processed on weekdays?

a)

Every Hour

b)

Half-hourly intervals

c)

Hourly intervals

d)

Daily, at a fixed time

7.

Which document is a prepayment instrument that allows a bank's customer to withdraw money from their account to the card?

a)

Credit Card

b)

Debit Card

c)

Demand Draft

d)

Electronic Clearing Service (ECS)

8.

What does "KYC" stand for in the banking and financial sector?

a)

Know Your Currency

b)

Know Your Customer

c)

Keeping Your Cash

d)

Know Your Credit

9.

 What is the purpose of the signature line on a cheque?

a)

To write the amount in words

b)

To authorize the payment

c)

To mention the payee's name

d)

To provide the payer's contact information

10.

What does MICR stand for in the context of a cheque?

a)

Magnetic Ink Character Recognition

b)

Money Issuance Control Record

c)

Magnetic Ink Code Reader

d)

Monetary Information Control Register

11.

What does CTS-2010 stand for in the context of cheques?

a)

Cheque Truncation System - 2010

b)

Centralized Transaction Service - 2010

c)

Clearinghouse Tracking System - 2010

d)

Cheque Transfer System - 2010

12.

What is the maximum limit for a single NEFT transaction in India?

a)

₹2,00,000

b)

₹5,00,000

c)

₹10,00,000

d)

No Limit

13.

What is the minimum amount that can be transferred through NEFT?

a)

₹1 LAKH

b)

₹10 LAKHS

c)

₹15 LAKHS

d)

₹2 LAKHS

14.

What is the minimum amount that can be transferred through RTGS in India?

a)

₹5,00,000

b)

₹2,00,000

c)

₹1,00,000

d)

₹10,00,000

15.

Which of the following is true regarding RTGS transactions?

a)

They have no upper limit.

b)

They are typically used for small-value transactions.

c)

They are not available on weekends and bank holidays.

d)

They involve batch processing.

16.

Which fund transfer system is known for its batch processing and is commonly used for salaries, dividends, and bulk transactions?

a)

NEFT

b)

RTGS

c)

ECS

d)

IMPS

17.
  1.  Round the clock, I never sleep, Instant transfers, my promise I keep. From mobiles and banks, I serve you best, Who am I? Put your mind to the test!

a)

NEFT

b)

RTGS

c)

IMPS

d)

ECS

18.

What is the Electronic Clearing System (ECS) primarily used for in the banking sector?

a)

Managing physical branch operations

b)

Automating electronic fund transfers

c)

Managing ATM withdrawals

d)

Handling customer inquiries

19.

ECS is commonly used for the bulk transfer of funds for which of the following purposes?

a)

Online shopping

b)

Salary payments

c)

Cash withdrawals

d)

Account balance inquiries

20.

What is the primary function of a bank?

a)

Selling goods and services

b)

Lending money

c)

Manufacturing products

d)

Providing healthcare services

21.

Which term best describes the process of accepting deposits and granting loans by banks?

a)

Trading

b)

Banking

c)

Barter

d)

Finance

22.

Which bank is considered the oldest in India, established in 1770?

a)

Punjab National Bank

b)

Reserve Bank of India

c)

State Bank of India

d)

Bank of Hindustan

23.

During the pre-independence period, which bank was the central bank of India?

a)

State Bank of India

b)

Reserve Bank of India

c)

Bank of Bombay

d)

Bank of Hindustan

24.

When was the Reserve Bank of India (RBI) established?

a)

1929

b)

1935

c)

1947

d)

1951

25.

In which year was the major nationalization of banks in India carried out?

a)

1947

b)

1951

c)

1969

d)

1991

26.

How many banks were nationalized during the 1969 nationalization of banks in India?

a)

05

b)

10

c)

14

d)

19

27.

What is the primary duty of a banker in the banker-customer relationship?

a)

Maximizing profits for the bank

b)

Safeguarding customer's interests and funds

c)

Promoting government policies

d)

Providing investment advice

28.

The word bank is derived from Italian word _______.

a)

Banco

b)

Banko

29.

_______ is an institution that deal with money and credit.

a)

Government

b)

Bank

c)

RBI

d)

NABARD

30.

The strength of economy of any country basically depends on a sound and _______banking system.

a)

Emerging

b)

Financial

c)

Solvent

d)

Strengthened

31.

Bank is a ______ organisation which accepts deposits that can be withdrawn on demand.

a)

Lawful

b)

Illegal

c)

Approved

d)

Insolvent

32.

_________accounts are opened by the persons who want to save some part of their income either to earn interest on deposit or for safety purposes.

a)

Current

b)

Savings

c)

Term

d)

Recurring

33.

MICR is a _____ digit code.

a)

18

b)

9

c)

15

d)

11

34.

When a bank accept deposits, it becomes ___________.

a)

Creditor

b)

Debtor

c)

Beneficiary

d)

Principal

35.

When a Bank manages properties of its customers, it becomes a ___________.

a)

Trustee

b)

Debtor

c)

Creditor

d)

Beneficiary

36.

On hiring out of locker, the relationship between banker and customer is that of ______________.

a)

Lessor and Lessee

b)

Agent and Principal

c)

Trustee and Beneficiary

d)

Debtor and Creditor

37.

The primary relationship, which flows from the essential functions of a bank is of ____________.

a)

Debtor and Creditor

b)

Agent and Principal

c)

Trustee and Beneficiary

d)

Lessor and Lessee

38.

A _________ cheque can be encashed at the bank counter.

a)

Crossed

b)

Post dated

c)

Bearer

d)

Stale

39.

NABARD stands for _________________.

a)

National Bank for Agriculture and Rural Development

b)

National Bank for Reconstruction and Development

c)

Nominal Area Bank for Agriculture

d)

National Bank for Rural Development

40.

The person who draws the cheque is called as a _________.

a)

Drawer

b)

Drawee

c)

Payee

d)

Banker

41.

On merging the 3 presidency banks i.e. Bank of Bengal, Bombay and Madras, which bank was established?

a)

SBI

b)

RBI

c)

Imperial Bank of India

d)

Central Bank of India

42.

__________ is the prescribed standard by the RBI for cheques issued by all Indian banks to facilitate faster clearing.

a)

Crossed

b)

Cancelled

c)

CTS 2010

d)

Ordered

43.

_________ are the source of finance, which is provided by the banks to the companies to meet the short-term financial requirement.

a)

Loans

b)

Bills

c)

Advances

d)

Credits

44.

Odd man out

a)

Trust and confidence

b)

Contributes to economic growth

c)

Credit management

d)

Less revenue

45.

a person who has the habit of resorting to the same place or person to do business

a)

Customer

b)

Bank

c)

RBI

d)

Businessman