Banking and Insurance Questions and Answers Part-1

1. Which bank is known as banker’s bank?
a) RBI
b) SBI
c) PNB
d) NABARD

Answer: a

2. A banking system where business is carried on by a bank through a network of branches spread throughout the country is known as ………
a) Unit banking
b) Branch banking
c) chain banking
d) group banking

Answer: b

3. ………… refers to a system of banking in which two or more independent banks are brought under the control of a holding company
a) Group banking
b) chain banking
c) deposit banking
d) investment banking

Answer: a

4. ………… Banking is a system where banks combine both the deposit banking and invest banking functions
a) Chain banking
b) deposit banking
c) investment banking
d) mixed banking

Answer: d

5. India's first women's bank The Bharatiya Mahila Bank was inaugurated in which city ?
a) Kolkata
b) Delhi
c) Mumbai
d) Chennai

Answer: c

6. Current deposit is also known as ………
a) Savings deposit
b) demand deposit
c) time deposit
d) recurring deposit

Answer: b

7. …………… is a credit facility granted by commercial banks to current account holders
a) Cash credit
b) overdraft
c) discounting of bills of exchange
d) demand loans

Answer: b

8. which deposits are repayable after the expiry of the fixed period ?
a) demand deposit
b) time deposit
c) savings deposit
d) recurring deposit

Answer: b

9. The process of ………… begins with banks lending money out of primary deposit.
a) credit creation
b) cash credit
c) debit creation
d) over draft

Answer: a

10. CRR refers to …………
a) Cash Reserve Ratio
b) Credit Reserve Ratio
c) Common Reserve Ratio
d) None of these

Answer: a