BANKING THEORY

A Bank Account that you can take money out of at any time.....

• Current account

• Deposit account

• Savings account

• Overdraft

Credit can be created by

• RBI

• Foreign Banks

• Commercial Banks

• Private Banks

Bank rate is decided by which of the following?

• Reserve Bank of India

• Government of India

• State bank of India

• SEBI

What is the primary function of a commercial bank in the economy?

• A) To print money

• B) To regulate the stock market

• C) To accept deposits and provide loans

• D) To set interest rates

A bank account that pays interest on condition that you keep money there for a particular length of time.

• Current account

• Deposit account

• Personal account

Which of the following are the functions of commercial banks (both primary and secondary)? (3)

• maintain record of Government revenue and expenditure

• determine foreign exchange rates

• exchange foreign currencies

• receive deposits

• give loans

Select all of the services most commonly provided by banks.

• Borrowing Services

• Savings Accounts

• Payment Services

• Brokerage Accounts

What is the primary function of a central bank in a country's economy?

• A) To provide loans to individuals

• B) To regulate the money supply and interest rates

• C) To offer savings accounts to the public

• D) To insure commercial banks

Which of the following is a characteristic of a savings account?

• A) High liquidity with no interest

• B) Limited withdrawals with interest

• C) Unlimited withdrawals with high interest

• D) No interest and no withdrawal limits

What is the main advantage of using a debit card over a credit card?

• A) It builds credit history

• B) It allows spending within available funds

• C) It offers rewards and cashback

• D) It has a higher credit limit