Class 11 Finance MCQ Chapter 3 Bank 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 3 Bank Question Answer and select need one. Class 11 Finance MCQ Chapter 3 Bank Solutions Download PDF. AHSEC Class 11 Banking Multiple Choice Solutions.
Class 11 Finance MCQ Chapter 3 Bank
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.
Bank
Chapter: 3
| MCQ |
1. What is the primary function of a bank?
(i) To issue currency.
(ii) To accept deposits and lend money.
(iii) To provide insurance services.
(iv) To sell financial products.
Ans: (ii) To accept deposits and lend money.
2. According to the Banking Regulation Act, 1949, what does ‘banking’ involve?
(i) Issuing loans only.
(ii) Accepting deposits for lending or investment.
(iii) Conducting foreign exchange transactions.
(iv) Managing investment portfolios.
Ans: (ii) Accepting deposits for lending or investment.
3. According to R.P. Kent, what is a bank?
(i) An institution that provides investment advice.
(ii) An institution that collects idle money and lends it to others.
(iii) A place where currency is printed.
(iv) A financial organisation that sells bonds.
Ans: (ii) An institution that collects idle money and lends it to others.
4. What term describes money that is accepted for lending or investment by a bank?
(i) Equity.
(ii) Deposit.
(iii) Asset.
(iv) Liability.
Ans: (ii) Deposit.
5. What is an example of a monetary instrument a bank deals with?
(i) Stocks.
(ii) Bonds.
(iii) Cheque.
(iv) Real estate.
Ans: (iii) Cheque.
6. What is defined as a “financial intermediary institution” by Cairn Cross?
(i) An insurance company.
(ii) A bank.
(iii) A stock exchange.
(iv) A mutual fund.
Ans: (ii) A bank.
7. Under Section 7 of the Banking Regulation Act, 1949, which of the following words cannot be used by companies not classified as banking companies?
(i) Finance.
(ii) Banker.
(iii) Investment.
(iv) Insurance.
Ans: (ii) Banker.
8. What does a bank primarily deal in?
(i) Goods and services.
(ii) Money and credit.
(iii) Real estate.
(iv) Investments only.
Ans: (ii) Money and credit.
9. Which of the following types of deposits do banks accept?
(i) Savings.
(ii) Fixed.
(iii) Current.
(iv) All of the above.
Ans: (iv)All of the above.
10. What is the nature of banking institutions?
(i) Non-commercial.
(ii) Commercial.
(iii) Charitable.
(iv) Governmental.
Ans: (ii) Commercial.
11. Which type of bank is considered the central authority in the financial system?
(i) Commercial Bank.
(ii) Central Bank.
(iii) Cooperative Bank.
(iv) Investment Bank.
Ans: (ii) Central Bank.
12. What type of bank primarily focuses on providing financial services to the agricultural sector?
(i) Development Bank.
(ii) Agricultural Bank.
(iii) Exchange Bank.
(iv) Savings Bank.
Ans: (ii) Agricultural Bank.
13. What is the primary function of a Development Bank?
(i) To handle currency exchange.
(ii) To provide long-term loans for industrial development.
(iii) To accept savings deposits.
(iv) To provide short-term loans for personal needs.
Ans: (ii) To provide long-term loans for industrial development.
14. Which bank is mainly involved in providing investment-related services?
(i) Exchange Bank.
(ii) Investment Bank.
(iii) Agricultural Bank.
(iv) Land Development Bank.
Ans: (ii) Investment Bank.
15. Which of the following banks is specifically designed to promote foreign trade?
(i) Central Bank.
(ii) Exchange Bank.
(iii) Export-Import Bank.
(iv) Regional Rural Bank.
Ans: (iii) Export-Import Bank.
