Class 11 Finance MCQ Chapter 5 Commercial 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 5 Commercial Bank Question Answer and select need one. Class 11 Finance MCQ Chapter 5 Commercial Bank Solutions Download PDF. AHSEC Class 11 Banking Multiple Choice Solutions.
Class 11 Finance MCQ Chapter 5 Commercial 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.
Commercial Bank
Chapter: 5
| MCQ |
1. The primary purpose of a commercial bank is to:
(i) Issue currency notes.
(ii) Accept deposits for lending or investment.
(iii) Compete with central banks.
(iv) Control the money supply.
Ans: (ii) Accept deposits for lending or investment.
2. Commercial banks mobilize savings from the:
(i) Government.
(ii) Surplus-spending sector.
(iii) Deficit-spending sector.
(iv) Central bank.
Ans: (ii) Surplus-spending sector.
3. Commercial banks lend funds to the:
(i) Surplus-spending sector.
(ii) Central government only.
(iii) Deficit-spending sector.
(iv) Foreign governments only.
Ans: (iii) Deficit-spending sector.
4. Which of the following allows a bank customer to withdraw more than their account balance up to a specified limit?
(i) Cash credit.
(ii) Loan.
(iii) Overdraft.
(iv) Consumer credit.
Ans: (iii) Overdraft.
5. Which function involves the bank acting as an agent by transferring funds on behalf of a customer?
(i) Overdraft facility.
(ii) Remittance of funds.
(iii) Cash credit.
(iv) Issuing letters of credit.
Ans: (ii) Remittance of funds.
6. Which facility enables customers to make electronic fund transfers within the same day?
(i) Bill discounting.
(ii) SWIFT messaging.
(iii) RTGS/NEFT service.
(iv) Remittance of funds.
Ans: (iii) RTGS/NEFT service.
7. What does EFT stand for in the context of internet banking?
(i) Electronic Finance Transfer.
(ii) Emergency Fund Transfer.
(iii) Electronic Fund Transfer.
(iv) Essential Financial Transaction.
Ans: (iii) Electronic Fund Transfer.
8. What is the maximum duration for which a call loan can be given?
(i) 30 days.
(ii) 14 days.
(iii) 60 days.
(iv) 90 days.
Ans: (ii) 14 days.
9. What type of fee is usually charged by banks for remittance services?
(i) A high-interest rate.
(ii) A minimum service charge.
(iii) A foreign exchange fee.
(iv) No fees are charged.
Ans: (ii) A minimum service charge.
10. Which of the following deposits is typically not repayable on demand?
(i) Current deposit.
(ii) Fixed deposit.
(iii) Savings deposit.
(iv) Demand deposit.
Ans: (ii) Fixed deposit.
11. Which type of account is mainly used for day-to-day transactions by businesses?
(i) Savings bank account.
(ii) Recurring deposit account.
(iii) Current account.
(iv) Fixed deposit account.
Ans: (iii) Current account.
12. What role does a bank play when it collects dividends, interest, or rent for a customer?
(i) Borrower.
(ii) Executor.
(iii) Agent.
(iv) Investor.
Ans: (iii) Agent.
13. A current deposit account is typically opened by:
(i) Only individual customers.
(ii) Businesses and institutions.
(iii) Students only.
(iv) Non-residents only.
Ans: (ii) Businesses and institutions.
14. Which of the following services involves a commercial bank purchasing and selling shares and debentures for capital raising?
(i) Underwriting of shares, debentures, etc.
(ii) Issuing of letters of credit.
(iii) Safe custody of documents.
(iv) Collection and supply of statistics.
Ans: (i) Underwriting of shares, debentures, etc.
15. Which facility is commonly provided to current account holders?
(i) High interest rate.
(ii) Overdraft facility.
(iii) Recurring deposit option.
(iv) Fixed withdrawal limits.
Ans: (ii) Overdraft facility.
