BUSINESS STUDIESCHAPTER: 16
BANK TRANSACTIONS
(TEXT BOOK QUESTIONS)
BANK TRANSACTIONS
(TEXT BOOK QUESTIONS)
FILL IN THE BLANKS
1. The word ‘Bank’ has been derived from the French word _________
(Banque)
2. The Banker’s Bank is __________
(The Reserve Bank of India)
3. An example for Nationalized Bank is _____________
(State Bank of India)
4. The National Saving Certificates are issued by ______________
(The Indian Postal Dept)
5. The type of account, where any number of transactions can be made with Bank is _____________
(Current Account)
6. The deposits for a fixed term can be deposited in ________ account.
(Term Deposit Account)
ANSWER THE FOLLOWING QUESTIONS.
1. What is a Bank?
Bank is a company, which transacts the business with finance. It accepts the deposits, lend the loans.
2. List out the characteristics relating to bank transactions.
1. It deals with money.
2. It may be a person, firm or a company.
3. Accepts deposits.
4. It lending loans.
5. Provides Agency & Utility Services.
6. Profit & service oriented.
7. Connecting link between the depositors & borrowers.
8. It has name identity.
3. What are the functions of a bank?
1. Accepting DEPOSITS
2. Lending LOANS
3. TRANSFERRING money.
4. Collecting money by CHEQUES, DRAFTS etc.
5. DISCOUNTING OF BILLS.
6. Hiring SAFEDEPOSIT LOCKERS.
7. Conducting FOREIGN EXCHANGE transactions.
8. Keeping valuables in SAFE CUSTODY.
4. Explain the relationship between the bank & the customers. There are 2 categories.
1. GENERAL RELATIONSHIP: A) Primary Relationship B) Subsidiary Relationship C) Agent & Principal Relationship
2. SPECIAL RELATIONSHIP: A) Obligation to honour cheques B) Obligation to maintain secrecy of accounts.
5. “The number of saving bank account holders is increasing” – Give reasons.
1. It is ideal for SALARIED PERSONS.
2. It is suitable for STUDENTS, SENIOR CITIZENS, PERNSIONERS.
3. It helps people to SAVE MONEY.
4. There is NO RESTRICTIONS on the deposit amount.
5. MONEY WITHDRAWAL is very easy.
6. What are the advantages of opening a bank account?
1. It facilitates a SAFE CUSTODY of MONEY.
2. It helps in MAKING PAYMENTS.
3. It helps in COLLECTION OF MONEY.
4. Account holders will ABLE TO GET LOANS.
5. Account holders will get SAFE LOCKERS.
6.It helps in SMOOTH FINANCIAL TRANSACTIONS.
ADDITIONAL LEARNING MATERIALS FOR HIGH SCORING..!!
1. Banks developed about ______ years ago.
(200)
2. The development of any country depends on the _____of that country.
(banking system)
3. The main financial institution of any country is __________
(banking system)
4. The word ‘BANK’ is derived from old Italian word _____________
(Banco)
5. Meaning of ‘BANCO’ or ‘BANQUE’ is _______
(Bench or Money Exchange Table)
6. What is banking?
The SERVICES OF BANK is called ‘BANKING’.
7. What is a banking company?
A Banking company is a company, which TRANSACTS THE BUSINESS WITH FINANCE.
8. Who acts as CUSTODIANS of the deposits of the public?
(BANK)
9. For what purpose are banks offering loans?
Banks lend to INDUSTRIES, AGRICULTURE, EDUCATION, HOUSING and so on.
10. Who acts as CONNECTING LINK between the depositors & borrowers?
(BANKS)
11. The main activity of the bank is _________
(BANKING)
12. What is a Bank Transaction?
Any sort of activity, INVOLVING IN MONEY OR EXCHANGE OF MONEY in an account is called ‘Banking Transaction’.
13. What is a Bank Loan?
Banks ACCEPTING DEPOSITS from the customers and LENDING THE SAME to those who need money. It is called ‘Bank Loan’.
14. All the banking transactions in India are controlled by _____________
(The Reserve Bank of India)
15. Which bank is called as ‘CENTRAL BANK OF INDIA’?
The Reserve Bank of India.
16. How many Nationalized Banks, Private Banks & foreign Banks in India?
There are 12Nationalized Banks, Private Banks & foreign Banks in India.
17. What is the RECENT DEVELOPMENT in banking industry?
The RECENT DEVELOPMENT in banking industry is the inclusion of POST OFFICES into its fold.
18. What is the name of the bank planning to start by Postal Department of India?
(Postal Bank of India)
19. How much capital does the Postal Department plan to invest into the banking business?
(One Thousand Crores)
20. A Bank Account, which is Suitable for students, senior citizens, pensioners is __________
(Saving Account)
21. An account, which is suitable for ANY NUMBER OF TRANSACTIONS is ________________
(Current Account)
22. In which type of Bank Account banks DO NOT GIVE ANY INTEREST on deposits?
(In CURRENT ACCOUNT)
23.In which type of Bank Account the BANK COLLECTS SERVICE CHARGES or Bank charges on the deposits?
(In CURRENT ACCOUNT)
24. Which accounts are generally opened for a purpose to be saved for a future date?
13. What is a Bank Loan?
Banks ACCEPTING DEPOSITS from the customers and LENDING THE SAME to those who need money. It is called ‘Bank Loan’.
14. All the banking transactions in India are controlled by _____________
(The Reserve Bank of India)
15. Which bank is called as ‘CENTRAL BANK OF INDIA’?
The Reserve Bank of India.
16. How many Nationalized Banks, Private Banks & foreign Banks in India?
There are 12Nationalized Banks, Private Banks & foreign Banks in India.
17. What is the RECENT DEVELOPMENT in banking industry?
The RECENT DEVELOPMENT in banking industry is the inclusion of POST OFFICES into its fold.
18. What is the name of the bank planning to start by Postal Department of India?
(Postal Bank of India)
19. How much capital does the Postal Department plan to invest into the banking business?
(One Thousand Crores)
20. A Bank Account, which is Suitable for students, senior citizens, pensioners is __________
(Saving Account)
21. An account, which is suitable for ANY NUMBER OF TRANSACTIONS is ________________
(Current Account)
22. In which type of Bank Account banks DO NOT GIVE ANY INTEREST on deposits?
(In CURRENT ACCOUNT)
23.In which type of Bank Account the BANK COLLECTS SERVICE CHARGES or Bank charges on the deposits?
(In CURRENT ACCOUNT)
24. Which accounts are generally opened for a purpose to be saved for a future date?
(Recurring Deposit Accounts)
25. How to deposit in Recurring Deposit Accounts?
In Recurring Deposit Accounts, deposits are made REGULARLY ON MONTHLY BASIS.
26. For which purpose is a Recurring Deposit Account suitable?
Suitable for children's wedding, buying valuables, buying land, buying a vehicle.
27. In which type of Bank Account, DEPOSIT AMOUNT CAN’T BE WITHDRAWN before the expiry of the term?
In TERM DEPOSIT ACCOUNT
28. Why is it mandatory for every individual TO OPEN A BANK ACCOUNT?
To avail professional banking service, it is mandatory to open a bank account.
29. How many steps are there to open an account in a bank?
7 STEPS
30. When the banks usually credit its interest to the accounts?
Generally in APRIL & OCTOBER or FEBRUARY & JULY
31. What should keep in mind before opening a bank account?
One should keep in mind, what type of account is suitable for his needs.
32. We should give REFERENCE for opening of our bank account, because_________
(To SAFEGUARD THE INTEREST OF THE BANK)
33. What are the documents I need to include at the time of opening a bank account?
25. How to deposit in Recurring Deposit Accounts?
In Recurring Deposit Accounts, deposits are made REGULARLY ON MONTHLY BASIS.
26. For which purpose is a Recurring Deposit Account suitable?
Suitable for children's wedding, buying valuables, buying land, buying a vehicle.
27. In which type of Bank Account, DEPOSIT AMOUNT CAN’T BE WITHDRAWN before the expiry of the term?
In TERM DEPOSIT ACCOUNT
28. Why is it mandatory for every individual TO OPEN A BANK ACCOUNT?
To avail professional banking service, it is mandatory to open a bank account.
29. How many steps are there to open an account in a bank?
7 STEPS
30. When the banks usually credit its interest to the accounts?
Generally in APRIL & OCTOBER or FEBRUARY & JULY
31. What should keep in mind before opening a bank account?
One should keep in mind, what type of account is suitable for his needs.
32. We should give REFERENCE for opening of our bank account, because_________
(To SAFEGUARD THE INTEREST OF THE BANK)
33. What are the documents I need to include at the time of opening a bank account?
ADRESS PROOF, PAN CARD, AADHAAR CARD, PHOTOGRAPH etc.
ANSWER THE FOLLOWING
1. What are the SERVICES offered by banks?
1. CREDIT CARDS
2. PERSONAL LOANS
3. HOME & VEHICLE LOANS
4. MUTUAL FUNDS
5. BUSINESS LOANS
6. SAFE DEPOSIT LOCKERS
7. DEBIT CARDS
8. TRUST SERVICES
9. SIGNATURE GUARANTEES
2. How do the bank's depositors get income?
1. Banks accept depositsfrom depositors.
2. Then bank lend itto customers.
3. The bank charges intereston these loans.
4. Out of this, a small part is given to the depositorsas interest.
In this way the depositors get income.
3. The Reserve Bank of India is called 'MOTHER OF THE BANKS' or ‘BANKERS OF BANK'. Why?
ANSWER THE FOLLOWING
1. What are the SERVICES offered by banks?
1. CREDIT CARDS
2. PERSONAL LOANS
3. HOME & VEHICLE LOANS
4. MUTUAL FUNDS
5. BUSINESS LOANS
6. SAFE DEPOSIT LOCKERS
7. DEBIT CARDS
8. TRUST SERVICES
9. SIGNATURE GUARANTEES
2. How do the bank's depositors get income?
1. Banks accept depositsfrom depositors.
2. Then bank lend itto customers.
3. The bank charges intereston these loans.
4. Out of this, a small part is given to the depositorsas interest.
In this way the depositors get income.
3. The Reserve Bank of India is called 'MOTHER OF THE BANKS' or ‘BANKERS OF BANK'. Why?
OR
Explain the FUNCTIONS & AUTHORITIES of The Reserve Bank of India.
1. It controls the transaction of all banks of India.
2. It is the Central Bankof the country
3. It formulates monetary policy.
4. This policy should be followedby
4. Write a note: ‘INDIAN POSTAL BANK’
1. Its a recent developmentin the banks industry.
2. Postal Department is planning to launch its network.
3. 90%of them will start in rural & semi-urban areas.
4. The initial investment is Rs.1,000Crores.
5. What are the various FINANCIAL SERVICES of Postal Department?
1. Post Office Saving Bank
2. National Saving Certificate
3. Kisan Vikas Patra
4. Monthly Recurring Deposits
5. Postal Life Insurance
6. Pension Payment
7. Money Transfer
6. What are the TYPES OF BANKS?
1. Reserve Bank of India
2. Commercial Banks
3. Industrial development Banks
4. Land Development Banks
5. Indigenous Banks
6. Co-operative Banks
7. What are the FOUR TYPES OF ACCOUNTS that can be opened in the bank?
1. Saving Account
2. Current Account
3. Recurring Deposit Account
4. Term Deposit Account
8. What is the procedure to CLOSE THE BANK ACCOUNT?
1. The request letter should be given.
2. Proper reason should be mentioned in it.
3. The pass book, unused cheques, ATM cards should return.
4. ATM cards are cut into two pieces.
In this way we can close our bank account.
9. What are the seven steps to open an account in Banks?
1. Decide whichtype of account to be open.
2. Approach the bank and meet its officer.
3. Fill up the proposal form.
4. Give reference.
5. Submit the fully filled account form.
6. Clearingthe proposal form.
7. Making initial deposit.
10. What are the MAJOR OPERATIONS (Business) provided by a Banker/Bank?
1. It helps to build up savings.
2. Focuses on mobilizing deposits.
3. It provides with loans.
4. Conducts cash transactions by check or withdrawal forms.
5. Debit and credit card transactions.
6. Makes periodic payments. (Electricity Bill, Telephone Bill etc.)
7. Interest on deposits & loans will pay to the consumer’s accounts.
8. Account may be transferred to other branches of the Bank.
9. If the consumer wishes, his account can be closed.
11. Write the DIFFERENCES between SAVING ACCOUNT, CURRENT ACCOUNT, RECURRING DEPOSIT ACCOUNT & TERM DEPOSIT ACCOUNT.
1. It controls the transaction of all banks of India.
2. It is the Central Bankof the country
3. It formulates monetary policy.
4. This policy should be followedby
4. Write a note: ‘INDIAN POSTAL BANK’
1. Its a recent developmentin the banks industry.
2. Postal Department is planning to launch its network.
3. 90%of them will start in rural & semi-urban areas.
4. The initial investment is Rs.1,000Crores.
5. What are the various FINANCIAL SERVICES of Postal Department?
1. Post Office Saving Bank
2. National Saving Certificate
3. Kisan Vikas Patra
4. Monthly Recurring Deposits
5. Postal Life Insurance
6. Pension Payment
7. Money Transfer
6. What are the TYPES OF BANKS?
1. Reserve Bank of India
2. Commercial Banks
3. Industrial development Banks
4. Land Development Banks
5. Indigenous Banks
6. Co-operative Banks
7. What are the FOUR TYPES OF ACCOUNTS that can be opened in the bank?
1. Saving Account
2. Current Account
3. Recurring Deposit Account
4. Term Deposit Account
8. What is the procedure to CLOSE THE BANK ACCOUNT?
1. The request letter should be given.
2. Proper reason should be mentioned in it.
3. The pass book, unused cheques, ATM cards should return.
4. ATM cards are cut into two pieces.
In this way we can close our bank account.
9. What are the seven steps to open an account in Banks?
1. Decide whichtype of account to be open.
2. Approach the bank and meet its officer.
3. Fill up the proposal form.
4. Give reference.
5. Submit the fully filled account form.
6. Clearingthe proposal form.
7. Making initial deposit.
10. What are the MAJOR OPERATIONS (Business) provided by a Banker/Bank?
1. It helps to build up savings.
2. Focuses on mobilizing deposits.
3. It provides with loans.
4. Conducts cash transactions by check or withdrawal forms.
5. Debit and credit card transactions.
6. Makes periodic payments. (Electricity Bill, Telephone Bill etc.)
7. Interest on deposits & loans will pay to the consumer’s accounts.
8. Account may be transferred to other branches of the Bank.
9. If the consumer wishes, his account can be closed.
11. Write the DIFFERENCES between SAVING ACCOUNT, CURRENT ACCOUNT, RECURRING DEPOSIT ACCOUNT & TERM DEPOSIT ACCOUNT.
Difference Between Current Account and Savings Account
There may be times when you need to make multiple payments, receipts and other transactions, similar to traders and entrepreneurs. They need to access their accounts frequently prefer using a Current Account for this. But what is a Current Account and how does it differ from a Savings Account? Here is a list to help you understand the difference between Current Account and saving account:
Meaning
A savings account is a deposit account which allows limited transactions, while a Current Account is meant for daily transactions.
Suitability
A savings account is most suitable for people who are salaried employees or have a monthly income, whereas, Current Accounts work best for traders and entrepreneurs who need to access their accounts frequently.
Interest
Savings accounts earn interest at a rate of around 4%, while there is no such earning from a Current Account. A Current Account is actually a no interest-bearing deposit account.
Overdrawing
Savings accounts earn interest at a rate of around 4%, while there is no such earning from a Current Account. A Current Account is actually a no interest-bearing deposit account.
Overdrawing
When you withdraw more money from the account, than is actually there, then your account is said to be overdrawn. In the case of a savings account, banks neither offer nor allow overdraft facilities, whereas, this facility is provided with a Current Account.
Minimum balance
The minimum balance required to maintain a savings account is usually low, but for a Current Account it is much higher in comparison..
This should clarify the differences in the purpose and function of Current Account and Savings Account.
Having an HDFC Bank Savings Account offers plenty of benefits. If you are looking to open a Savings Account with HDFC Bank, click here to get started.
Minimum balance
The minimum balance required to maintain a savings account is usually low, but for a Current Account it is much higher in comparison..
This should clarify the differences in the purpose and function of Current Account and Savings Account.
Having an HDFC Bank Savings Account offers plenty of benefits. If you are looking to open a Savings Account with HDFC Bank, click here to get started.
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