Banking Awareness Quiz – Set 59

Hello Aspirants,
Welcome to Banking Awareness Quiz in AffairsCloud.com. Here we are creating quiz covering important questions which are common for all the bank exams and other competitive exams.

1. _______ is a deposit account provided by a bank or other financial institutions for individuals to save money and earn the modest interest for that money held in the account.
   A. Fixed Deposit Account
   B. Savings Bank Account
   C. Recurring Account
   D. Current Account
   
   Answer & Explanation

   B. Savings Bank Account
   Explanation:
   A savings account is an account maintained by a bank or other financial institutions for individuals to save money and earn interest on the cash held in the account.
   
   
2. __________ is a deposit of money that has a fixed time and pays higher interest than a SB Acccount.
   A. Fixed Deposit Account
   B. Savings Bank Account
   C. Recurring Account
   D. Current Account
   
   Answer & Explanation

   A. Fixed Deposit Account
   Explanation:
   A deposit of money that pays higher interest than a savings account but imposes conditions on the amount, frequency, and/or period of withdrawals. It is also called time deposit.
   
   
3. __________ is a product to provide a person with an opportunity to build up saving through regular monthly deposits of fixed sum over a period of time.
   A. Fixed Deposit Account
   B. Savings Bank Account
   C. Recurring Deposit Account
   D. Current Account
   
   Answer & Explanation

   C. Recurring Deposit Account
   Explanation:
   Recurring Deposit is a special kind of Term Deposit offered by banks in India which help people with regular incomes to deposit a fixed amount every month into their Recurring Deposit.
   
   
4. _________ is a type of deposit account that caters to professionals and businessmen alike.
   A. Fixed Deposit Account
   B. Savings Bank Account
   C. Recurring Account
   D. Current Account
   
   Answer & Explanation

   D. Current Account
   Explanation:
   A current account is a type of deposit account that caters to professionals and businessmen alike.
   Dealing largely with liquid deposits, this product allows for withdrawal of funds and checks being written against the balance and does not limit the number of transactions in a day.
   
   
5. _________ account is opened by the investor while registering with an investment broker.
   A. Fixed Deposit Account
   B. Savings Bank Account
   C. Recurring Account
   D. De-materialized Account
   
   Answer & Explanation

   De-materialized Account
   Explanation:
   DEMAT or De-materialized Account refers to a deposit made at an Indian financial institution that can be used for investing in shares of stocks and other financial assets.Securities are held electronically in a DEMAT Account, thereby eliminating the need for physical paper certificates.
   
   
6. Which of the following is a transactional deposit account held at a financial institution that allows for withdrawals and deposits?
   A. Deposit Accounts
   B. Checking Accounts
   C. Capital Market Accounts
   D. Business Accounts
   
   Answer & Explanation

   B. Checking Accounts
   Explanation:
   An account which allows the holder to write checks against deposited funds. Checking accounts which pay interest are sometimes referred to as negotiable order of withdrawal (NOW) accounts. The interest rate often depends on how large the balance in the account is, and most charge a monthly service fee if the account balance falls below a preset level.
   
   
7. Which is a financial market that works as a conduit for demand and supply of debt and equity capital?
   A. Deposit Accounts
   B. Checking Accounts
   C. Capital Market Accounts
   D. Business Accounts
   
   Answer & Explanation

   C. Capital Market Accounts
   Explanation:
   Capital market is a market where buyers and sellers engage in trade of financial securities like bonds, stocks, etc. The buying/selling is undertaken by participants such as individuals and institutions.
   
   
8. Which of the following is an account at a bank or credit union that earns interest over a specified amount of time?
   A. Interest Bearing Account
   B. Regular Checking Account
   C. De-materialized Account
   D. Savings Bank Account
   
   Answer & Explanation

   A. Interest Bearing Account
   Explanation:
   An interest-bearing account that typically pays a higher interest rate than a savings account, and which provides the account holder with limited check-writing ability.
   
   
9. _______ term refers an account that cannot be converted and repatriated into foreign currency.
   A. Non-Resident Ordinary Rupee or NRO Account
   B. Non-Resident Rupee or NRE Account
   C. FCNR Account
   D. Retail Account
   
   Answer & Explanation

   A. Non-Resident Ordinary Rupee or NRO Account
   Explanation:
   ♦ NRO accounts may be opened / maintained in the form of current, savings, recurring or fixed deposit accounts.
   ♦ Any person resident outside India may open NRO account with an authorised dealer or an authorised bank for the purpose of putting through bona fide transaction in rupees.
   ♦ The accounts may be held jointly with residents and / or with non-resident Indian.
   
   
10. _______ term refers an account in which balances held in the account are freely repatriable.
    A. Non-Resident Ordinary Rupee or NRO Account
    B. Non-Resident Rupee or NRE Account
    C. FCNR Account
    D. Retail Account
    
    Answer & Explanation

    B. Non-Resident Rupee or NRE Account
    Explanation:
    ♦ Account will be maintained in Indian Rupees.
    ♦ Balances held in the NRE account are freely repatriable.
    ♦ Accrued interest income and balances held in NRE accounts are exempt from Income tax and Wealth tax, respectively.