Class 12 Finance Chapter 13 Modern Banking Services

Class 12 Finance Chapter 13 Modern Banking Services Solutions English Medium As Per AHSEC New Syllabus to each chapter is provided in the list so that you can easily browse through different chapters ASSEB Class 12 Finance Chapter 13 Modern Banking Services Solutions in English and select need one. AHSEC Class 12 Finance Chapter 13 Modern Banking Services Solutions Download PDF. HS 2nd Year Finance Textual Solutions.

Class 12 Finance Chapter 13 Modern Banking Services

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. ASSEB Class 12 Banking Question Answer are part of All Subject Solutions. Here we have given HS 2nd Year Finance Textual Solutions English Medium for All Chapters, You can practice these here.

Modern Banking Services

Chapter: 13

Unit – 4: Financial Services

A. Very Short Answer Questions (Choose the correct answer): 

1. ‘ATM card is a debit card’ – Whether True or False?

Ans: True.

2. ‘Credit card can be used only if the customer has sufficient balance in his/her account’ – Whether True or False?

Ans: False.

3. Mobile banking is an example of E-banking – Whether True or False?

Ans: True.

4. Write the full form of ATM.

Ans: Automated Teller Machine.

5. Write the extended form of PIN.

Ans: Personal Identification Number.

6. ‘A person who doesn’t have a bank account may have a Credit Card’ – True or False?

Ans: False.

7. ‘E-banking improves the personal relationships between banker and the customers’ – Whether True or False?

Ans: False.

8. ‘E-banking facility is available 24 hours in a day’ – True or False?

Ans: True.

9. ‘The holders of Credit Cards are required to pay charge to issuing bank’ – True or False?

Ans: True.

10. ‘E-banking doesn’t require internet access’ – True or False?

Ans: False.

B. Short Answer Questions: 

1. What is Debit Card?

Ans: A Debit Card is a payment card that allows the account holder to withdraw cash and make purchases directly from his/her bank account.

2. What is Credit Card?

Ans: A Credit Card is a payment card that allows the holder to purchase goods and services on credit up to a specified limit and repay the amount later.

3. What is Mobile Banking?

Ans: Mobile Banking is a banking service that enables customers to perform banking transactions through a mobile phone using a banking application or SMS.

4. What is E-Banking?

Ans: E-Banking (Electronic Banking) is a banking system that allows customers to access and perform banking services through electronic channels such as the internet, mobile phones, and ATMs.

5. What is ATM Card?

Ans: An ATM Card is a card issued by a bank that enables customers to withdraw cash, check account balance, and perform other banking transactions through an Automated Teller Machine (ATM).

6. Write two functions of ATM.

Ans: (i) Cash Withdrawal: It allows customers to withdraw cash from their bank account.

(ii) Balance Enquiry: It enables customers to check their account balance.

C. Long Answer Questions (Type-I): 

1. Differentiate between Debit Card and Credit Card.

Ans: The differences between a Debit Card and a Credit Card are:

Debit Card	Credit Card
(i) Money is deducted directly from the customer’s bank account.	(i) Money is borrowed from the bank up to a credit limit.
(ii) A bank account is compulsory.	(ii) Credit is provided by the issuing bank.
(iii) It can be used only if there is sufficient balance in the account.	(iii) It can be used even without sufficient bank balance, within the credit limit.
(iv) No interest is charged if own money is used.	(iv) Interest is charged if the outstanding amount is not paid on time.
(v) It is mainly used for withdrawing cash and making payments.	(v) It is mainly used for purchasing goods and services on credit.

2. What is E-banking? State the utilities of E-banking.

Ans: E-banking (Electronic Banking) is a banking system that allows customers to access and perform banking services through electronic channels such as the internet, mobile phones, and ATMs.

Utilities of E-banking:

(i) Fund Transfer: Transfer money between accounts electronically.

(ii) Balance Enquiry: Check account balance anytime.

(iii) Bill Payments: Pay electricity, water, telephone, and other utility bills online.

(iv) Online Shopping: Make payments for online purchases.

(v) Account Statements: View and download account statements electronically.

3. Write the functions that may be performed by using Mobile Banking.

Ans: The functions performed through Mobile Banking are:

(i) Balance Enquiry: Check account balance instantly.

(ii) Fund Transfer: Transfer money to other bank accounts.

(iii) Bill Payments: Pay utility bills and recharge mobile/DTH services.

(iv) Mini Statement: View recent account transactions.

(v) Cheque Services: Request cheque book or stop cheque payment.

4. What is ATM? State the advantages of ATM service.

Ans: ATM (Automated Teller Machine) is an electronic banking machine that enables customers to withdraw cash and perform various banking transactions without visiting a bank branch.

Advantages of ATM Service:

(i) 24×7 Service: ATM services are available throughout the day.

(ii) Quick Cash Withdrawal: Customers can withdraw cash anytime.

(iii) Balance Enquiry: Customers can check account balance instantly.

(iv) Time Saving: Reduces waiting time at bank branches.

(v) Easy Accessibility: ATMs are available at many convenient locations.

5. Explain the functions of Mobile Banking.

Ans: The main functions of Mobile Banking are:

(i) Balance Enquiry: Enables customers to check their account balance anytime.

(ii) Fund Transfer: Allows transfer of money between bank accounts instantly.

(iii) Bill Payment: Helps customers pay utility bills and recharge services online.

(iv) Mini Statement: Provides details of recent account transactions.

(v) Cheque Services: Customers can request a cheque book or stop cheque payments through the mobile banking application.

D. Long Answer Questions (Type-II): 

1. What is E-banking? Explain the merits and demerits of E-banking.

Ans: E-Banking (Electronic Banking) is a system that allows customers to access and perform banking services through electronic channels such as the Internet, mobile phones, ATMs, and computers without visiting a bank branch.

Merits of E-Banking:

(i) 24×7 Banking: Customers can access banking services anytime and anywhere.

(ii) Convenience: Banking transactions can be performed from home or office.

(iii) Time Saving: It eliminates the need to stand in long queues at banks.

(iv) Fast Fund Transfer: Money can be transferred instantly between accounts.

(v) Easy Bill Payment: Utility bills, taxes, and online shopping payments can be made easily.

(vi) Lower Cost: It reduces transaction costs for both banks and customers.

(vii) Paperless Transactions: Most banking services are carried out electronically, reducing paperwork.

(viii) Quick Access to Information: Customers can instantly check account balance, transaction history, and account statements.

Demerits of E-Banking:

(i) Security Risks: Customers may face hacking, phishing, and cyber fraud.

(ii) Internet Requirement: A stable internet connection is necessary for most e-banking services.

(iii) Technical Problems: Server failures or network issues may interrupt banking services.

(iv) Lack of Personal Interaction: Customers do not receive face-to-face assistance from bank staff.

(v) Limited Knowledge: Some customers may find it difficult to use digital banking services.

(vi) Risk of Password Theft: If login credentials are stolen, accounts may be misused.

2. Write a brief note on modern services offered by Banks to their customers.

Ans: Modern banks provide various electronic and digital services to make banking easy, fast, and convenient. Some of the important modern banking services are:

(i) ATM (Automated Teller Machine): Allows customers to withdraw cash, check account balance, transfer funds, and perform other banking transactions at any time.

(ii) Debit Card: Enables customers to make purchases and withdraw cash directly from their bank account.

(iii) Credit Card: Allows customers to purchase goods and services on credit up to a prescribed limit.

(iv) Internet Banking (E-Banking): Customers can transfer funds, pay bills, check balances, and manage accounts online.

(v) Mobile Banking: Banking services can be accessed through mobile phones using banking apps or SMS.

(vi) NEFT/RTGS/IMPS: Electronic fund transfer systems that enable quick and secure transfer of money.

(vii) UPI (Unified Payments Interface): Allows instant money transfer and digital payments using mobile applications.

(viii) SMS and Email Banking: Customers receive transaction alerts, account updates, and important banking information through SMS and email.