Free Bachelor of Commerce: Banking & Insurance Questions and Answers

Question 1

Demand deposit is also referred to as _____________ .

Accepted Answer

Current a/c

Answer

Recurring Deposit

Answer

Capital a/c

Answer

Fixed Deposit a/c

Question 2

It is known as———— for commercial banks to increase deposit by increasing their loans and advances.

Accepted Answer

Credit creation

Answer

Bank advances

Answer

Deposit

Answer

Trade discount

Question 3

The central bank levies interest at a rate known as __________ for rediscounting and providing advances.

Accepted Answer

Bank rate

Answer

Credit

Answer

CRR

Answer

SLR

Question 4

On ___________ , 14 commercial banks were nationalized.

Accepted Answer

19 July 1969

Answer

19 Jan 1959

Answer

15 April 1980

Answer

15 Aug 1972

Question 5

On _________ , the State Bank of India was created under the State Bank of India Act.

Accepted Answer

1955

Answer

1952

Answer

1935

Answer

1948

Question 6

In 1926, the ______ commission advocated the establishment of a central bank.

Accepted Answer

Hilton Young Committee

Answer

Banking Enquiry Committee

Answer

Bretton Wood Committee

Answer

Narasimham Committee

Question 7

An overdraft is a credit facility made available to holders by commercial banks.

Accepted Answer

Current a/c

Answer

Reserve Fund

Answer

Capital a/c

Answer

Cash a/c

Question 8

Another name for money on short notice and call is ___________ .

Accepted Answer

Interbank call money market

Answer

Financial call money

Answer

Financial system.

Answer

Capital market

Question 9

The process of creating a derivative deposit using funds from a primary deposit is known as _______  .

Accepted Answer

Credit creation

Answer

Cash credit

Answer

Loan and advances

Answer

Lending money

Question 10

The first Indian joint-stock bank?

Accepted Answer

Imperial Bank

Answer

Allahabad Bank

Answer

ICICI

Answer

CRR