Saturday, April 18, 2015

Day 6 - Questions

Day 6 - Secondary Functions of Banks

(Secondary Functions of Banks, ATMs - White Label, Brown Label, Cards - Prepaid card, Credit card, Debit card, e-banking, m-banking, NBFC, Letter of Credit)

Recommended Study links - (Go through these topics before attempting MCQs)

Which bank first introduced ATM in India in 1987?
a.  State Bank of India (SBI)
b.  Punjab National Bank (PNB)
c.  Hongkong and Shanghai Banking Corporation (HSBC)
d.  Federal Bank

2.  Which bank first introduced Credit Card in India?
a.  State Bank of India (SBI)
b.  Central Bank of India
c.  Bank of India (BOI)
d.  None of the above

3.  ATMs set up, owned and operated by non-bank entities (e.g., NBFC) are known as -
a.  White Label ATMs (WLA)
b.  Brown Label ATMs (BLA)
c.  Bank owned ATMs
d.  None of the above

4.  ATMs set up and owned by a Service provider, but cash management and connectivity is provided by a sponsor banks are known as -
a.  White Label ATMs (WLA)
b.  Brown Label ATMs (BLA)
c.  Bank owned ATMs
d.  None of the above

5.  What is the full form of ATM?
a.  Automation Teller Machine
b.  Automated Teller Machine
c.  Automatic Teller Machine
d.  Automotive Teller Machine

6. Which cards may not linked with bank accounts?
i.  Debit card
ii.  Credit card
iii. Prepaid card

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

7.  Open-system Prepaid Cards are issued by -
a.  Banks
b.  Authorized non-bank entities
c.  Any non-bank entities
d.  None of the above

8.  What is the maximum amount that can be used in Open-System Prepaid Cards?
a.  Rs. 50,000
b.  Rs. 1 lakh (earlier max limit was Rs. 50,000)
c.  Rs. 20,000
d.  No such limit

9.  Mobile Wallet is a type of -
a.  Debit Card
b.  Credit Card
c.  Prepaid Card
d.  None of the above

10.  Choose the correct option from the followings -
i.  NBFCs cannot accept demand deposits from public
ii.  NBFCs are part of the Payments and Settlement System
iii. NBFCs cannot issue cheques drawn on itself
iv.  Deposits in NBFCs are insured by DICGC

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

11.  NBFCs are registered under which Act?
a.  Companies Act, 1956
b.  Banking Regulation Act, 1949
c.  Negotiable Instruments Act, 1881
d.  None of the above

12.  Which type of ATMs can be provided by NBFCs?
a.  Bank-owned ATMs
b.  WLAs
c.  BLAs
d.  None of the above

13.  Choose the correct option regarding Secondary Functions of Banks -
i.  Accepting Deposits
ii.  Advancing of Loans
iii.  Overdraft Facility (OD)
iv.  Discounting Bills of Exchange
v.  Agency Functions - like Remittances (fund transfer), Collection and payment of various items, Purchase and Sale of Foreign exchange, Purchase and sale of Securities, Income Tax consultancy, Trustee and Executor, Letter of reference, etc.
vi.  General Utility Functions - Locker facility, Travellers' Cheques, Letter of Credit, Underwriting Securities, Collection of Statistics, etc.

Which of the above is/are Secondary Function of Banks?
a.  Only (i) and (ii)
b.  Only (iii), (iv), (v) and (vi)
c.  Only (v) and (vi)
d.  Only (iv), (v) and (vi)

14.  Letter of Credit is generally used for -
a.  International trade
b.  Domestic trade
c.  Foreign Exchange
d.  None of the above

15.  Initially who provides Bill of Lading to whom?
a.  Seller to Carrier
b.  Carrier to Seller
c.  Carrier to Buyer
d.  Seller to Buyer

Note - Do not refer any source while answering the questions. You can comment in the Comment Section below.

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