Wednesday, April 15, 2015

Day 4 - Questions


Day 4 - Primary Functions of Banks - Part I

(Accepting Deposits, Savings, Current, Recurring and Fixed-deposit Accounts, CASA, Small Account, BSBDA, Deposit Insurance, PMJDY Account)


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1.  
Which account is best suitable for fixed monthly savings to earn maximum interest, for an individual?
a.  Savings Account
b.  Current Account
c.  Recurring Account
d.  Fixed Deposit Account

2.  What is the full form of CASA?
a.  Current Account and Small Account
b.  Current Account and Savings Account
c.  Current Account and Small-Savings Acccount
d.  None of the above
* Sorry, there was a mistake in highlighting. It will be Current and Savings Account.

3.  Choose the correct option regarding CASA ratio -
a.  (Current  + Savings) deposit / Total deposit of a bank
b.  (Current  + Small) deposit / Total deposit of a bank
c.  (Current + Small) deposit / (Recurring + Term) deposit of a bank
d.  (Current + Savings) deposit / (Recurring + Term) deposit of a bank

4.  Which one is better for a bank -
a.  Higher CASA ratio (Higher CASA ratio means, most deposits are in Current and Savings Accounts, which bear less interest than Term and Recurring deposits. Therefore, banks will have to pay less interest in those accounts) (Note that this is from the view of interest paid by banks)
b.  Lower CASA ratio
c.  No effect on bank
d.  None of the above

5.  Which of the following is false?
a.  Savings Deposits bear less interest than Current Deposits
b.  Current Accounts generally bear no interest
c.  Term Deposits bear more interest than Savings or Current Accounts
d.  All are true

6.  Which of the following is false?
a.  There is no limit of transactions / withdrawals from a Current Account, but Savings Accounts have limited transaction and withdrawal facility
b.  There is no interest payable in Current Account deposits, but Savings Accounts attract interests in the deposits
c.  Current Account is used for business purpose, but Savings Accounts is used for saving deposits
d.  All are true

7.  What is the full form of BSBDA?
a.  Basic Savings Bank Deposit Account
b.  Basic Small Bank Deposit Account
c.  Basic Standard Bank Deposit Account
d.  Basic Small-savings Bank Deposit Account

8. Which of the following is true regarding BSBDA?
a.  There is no requirement of maintaining minimum balance in BSBDA
b.  Maximum 4 withdrawal (including ATM withdrawals) is allowed in BSBDA
c.  ATM/Debit card is provided to the customers
d.  All are true

9.  RBI instructed banks to convert No-frills account into -
a.  Savings Account
b.  BSBDA Account
c.  Current Account
d.  None of the above

10.  Which of the following is true regarding BSBDA?
i.  Total balance should not exceed Rs. 1 lakh in a year
ii.  Maximum balance should not exceed Rs. 50,000 at any point of time
iii.  Debits by means of cash withdrawals or remittances will not exceed Rs. 10,000 in a month

a.  Only (ii) is true
b.  Both (i) and (ii) are true
c.  All are true
d.  None is true

11.  Which of the following is true regarding Small Accounts?
i.  Total balance should not exceed Rs. 1 lakh in a year
ii.  Maximum balance should not exceed Rs. 50,000 at any point of time
iii.  Debits by means of cash withdrawal or remittances will not exceed Rs. 10,000 in a month

a. Only (i) is true
b. Only (ii) is true
c. (i) and (iii) are true
d. (i), (ii) and (iii) are true

12.  Which of the following is true regarding Small Accounts?
i.  Small accounts are valid for a period of 12 months initially, which may be extended by another 12 months if the person provides proof of having applied for an Officially Valid Document
ii.  Small accounts can only be opened at CBS linked branches of banks or at such branches where it is possible to manually monitor the fulfillment of the conditions
iii.  Foreign remittances cannot be credited to Small Accounts without completing normal KYC formalities

a.  (i) and (iii) are true
b.  (ii) and (iii) are true
c.  All are true
d.  Only (i) is true

13.  What is the full form of DICGC?
a.  Deposit Interest Credit Guarantee Corporation
b.  Deposit Insurance Credit Guarantee Corporation
c.  Deposit Interest-free Credit Guarantee Corporation
d.  Deposit Insurance Cooperation Guarantee Corporation

14.  DICGC insures which of the following bank accounts?
a.  CASA Accounts
b.  Term deposit Accounts
c.  Recurring deposit Accounts
d.  All of the above

15.  Which is true regarding banks insured under DICGC?
i.  Commercial banks - Public sector banks, Private sector banks, Foreign banks operating in India, Regional Rural Banks, etc.
ii.  Cooperative banks - State, Central and Primary Cooperative Banks (collectively called Urban Cooperative Banks, or UCBs) that have amended Cooperative Societies Act, empowering RBI to control them

a.  Only (i) is true
b.  Only (ii) is true
c.  Both (i) and (ii) are true
d.  Neither (i) nor (ii) is true

16.  Which deposits are not covered under DICGC?
i.  Foreign government deposits
ii.  Central and State government deposits
iii.  Savings deposits of individuals
iv.  Inter-bank deposits

a.  (i) and (ii)
b.  (i), (ii) and (iii)
c.  (i) and (iv)
d.  (i), (ii) and (iv)

17.  What is the maximum amount / limit to be claimed under Deposit Insurance scheme of DICGC?
a.  Rs. 50,000
b.  Rs. 1 lakh
c.  Rs. 1.5 lakh
d.  No such limit

18.  Choose the correct option regarding PMJDY Account -
i.  Accidental Insurance cover is Rs. 30,000
ii.  Life Insurance cover is Rs. 1 lakh
iii.  Overdraft (OD) facility upto Rs. 5,000 is permitted (after satisfactory operation of account)
iv.  RuPay Debit Card will be provided
v.  No minimum balance criteria (unless cheque book facility is availed)

a.  (i), (ii) and (v) are true
b.  (i), (ii), (iii) and (iv) are true
c.  (iii), (iv) and (v) are true
d.  All are true

19.  PMJDY scheme of government has been recognized by Guiness Book of World Record for -
a.  Most bank accounts opened
b.  Most bank accounts opened in a single week
c.  Most bank accounts opened in a month
d.  None of the above

20.  What is the slogan of PMJDY?
a.  Mera Khata Bhagya Vidhata
b.  Sabke Saath Sabke Vikash
c.  Aapka paisa, Aapke haath
d.  None of the above



Note - Do not refer any source while answering the questions. 


(Answers will be highlighted in the next day. Please visit the same question set in the following day to view the answers)



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