Class 11 Finance MCQ Chapter 10 Banking System Solutions in English Medium to each chapter is provided in the list so that you can easily browse through different chapters Class 11 Finance MCQ Chapter 10 Banking System Question Answer and select need one. Class 11 Finance MCQ Chapter 10 Banking System Solutions Download PDF. AHSEC Class 11 Banking Multiple Choice Solutions.
Class 11 Finance MCQ Chapter 10 Banking System
Also, you can read the NCERT book online in these sections Solutions by Expert Teachers as per Central Board of Secondary Education (CBSE) Book guidelines. AHSEC Class 11 Finance Objective Type Solutions are part of All Subject Solutions. Here we have given HS 1st Year Banking Multiple Choice Question and Answer, HS First Year Banking MCQ Solutions for All Chapters, You can practice these here.
Banking System
Chapter: 10
| MCQ |
1. On the basis of operations, which of the following is classified as a pure banking activity?
(i) Accepting deposits.
(ii) Providing loans.
(iii) Underwriting securities.
(iv) Both (i) and (ii).
Ans: (iv) Both (i) and (ii).
2. What distinguishes a bank from other financial institutions?
(i) Accepting time deposits as a courtesy.
(ii) Accepting demand deposits.
(iii) Lending.
(iv) Accepting loans and borrowings.
Ans: (ii) Accepting demand deposits.
3. Which of the following describes a bank system where each unit operates independently without any branches?
(i) Chain banking.
(ii) Unit banking.
(iii) Group banking.
(iv) Branch banking.
Ans: (ii) Unit banking.
4. In which banking system are several banks linked together through common management and ownership?
(i) Group banking.
(ii) Branch banking.
(iii) Chain banking.
(iv) Correspondent banking.
Ans: (iii) Chain banking.
5. Which type of banking involves the offering of loans, deposits, and day-to-day banking services to the public?
(i) Investment banking.
(ii) Pure banking.
(iii) Commercial banking.
(iv) Correspondent banking.
Ans: (iii) Commercial banking.
6. What is the primary function of a correspondent bank?
(i) To provide personal loans to individuals.
(ii) To offer investment banking services.
(iii) To perform banking services for another bank, usually in different locations.
(iv) To manage day-to-day operations of a bank.
Ans: (iii) To perform banking services for another bank, usually in different locations.
7. What type of services can a correspondent bank offer?
(i) International money transfers.
(ii) Foreign exchange transactions.
(iii) Clearing and settlement of checks.
(iv) All of the above.
Ans: (iv) All of the above.
8. What is one of the key features of a Branch Banking System in terms of geographical operation?
(i) It operates only in a specific locality or region.
(ii) It has a head office but operates only locally.
(iii) It operates through a network of branches across different locations.
(iv) It does not have any central management.
Ans: (iii) It operates through a network of branches across different locations.
9. In a Branch Banking System, who controls the bank’s operations across all branches?
(i) The local manager of each branch.
(ii) The central head office.
(iii) The branch owners.
(iv) External regulators.
Ans: (ii) The central head office.
10. In which of the following systems does a bank have a head office and multiple branches under a single ownership?
(i) Unit banking system.
(ii) Branch banking system.
(iii) Group banking system.
(iv) Correspondent banking system.
Ans: (ii) Branch banking system.
11. In a Unit Banking System, how large is the area of operation typically?
(i) Internationally.
(ii) Nationwide.
(iii) Regionally.
(iv) Localized.
Ans: (iv) Localized.
12. Where did the Unit Banking System first originate and grow?
(i) United Kingdom.
(ii) Japan.
(iii) United States of America.
(iv) Germany.
Ans: (iii) United States of America.
13. What is a Group Banking System?
(i) A system where a single bank operates through multiple branches.
(ii) A system where two or more banks are controlled by a holding company.
(iii) A system where a bank operates with only one location.
(iv) A system where a bank provides correspondent banking services.
Ans: (ii) A system where two or more banks are controlled by a holding company.
14. In a Group Banking System, who controls the individual banks?
(i) The central government.
(ii) A head office of the largest bank.
(iii) A holding company.
(iv) Local managers of each bank.
Ans: (iii) A holding company.
15. In the Group Banking System, what is the role of the holding company?
(i) To manage each bank’s daily operations.
(ii) To provide a centralized office for each bank.
(iii) To control the independent banks and offer strategic guidance.
(iv) To directly manage customer accounts.
Ans: (iii) To control the independent banks and offer strategic guidance.
