Functions of Bank
Trending Questions
Q.
Explain the agency functions of commercial banks
Q.
Write a short note on commercial banks
Q. Which of the following is not a function of a commercial bank?
- Providing locker facilities
- Issuing letter of credit
- Providing cheque facilities
- Giving loan to the government
Q. A cheque is an instrument issued by the bank that guarantees a certain amount of payment mentioning the name of the person.
- True
- False
Q.
Outstanding salary account is a ------------------------ account a) Artificial persons account b) Representative personal account c) Nominal account d) Real account
Q. Assertion (A): The bills issued against credit are called bill receivables.
Reason (R): They are called bill receivables because it is expected that the amount will be received on some future date.
Reason (R): They are called bill receivables because it is expected that the amount will be received on some future date.
- Both A and R are true, and R is the correct explanation of A.
- Both A and R are true, but R is not the correct explanation of A.
- A is true, but R is false.
- A is false, but R is true.
Q. What is the name of the document that orders a bank to pay a particular amount of money from a person's account to another individual's or company's account?
- Bank deposit
- Bill
- Cheque
- Locker
Q. The letter of credit is issued for transactions, and bank guarantee is issued for transactions.
- domestic
- financial
- international
- government
Q.
Is Bank guarantee a bill of exchange?
Q. Which of the following are the functions of a bank?
- Transferring money
- Collecting money through cheques, drafts, bills, etc.
- Regulating monetary transactions of the governemnt
- Conducting foreign exchange transactions
Q.
Do private companies have to follow GAAP?
Q. Assertion (A): If the central government desires to allocate funds under any schemes to the states, it uses banks for the financial transactions.
Reason (R): Like individuals and businesses, it is a bank that facilitates financial transactions of the state and central governments.
Reason (R): Like individuals and businesses, it is a bank that facilitates financial transactions of the state and central governments.
- Both A and R are true, and R is the correct explanation of A.
- Both A and R are true, but R is not the correct explanation of A.
- A is true, but R is false.
- A is false, but R is true.
Q. You study in a village in Karnataka. After completing your 12th grade, you went to Bangalore to complete your graduation.
Which of the following functions of a bank helps your parents send you money for your education?
Which of the following functions of a bank helps your parents send you money for your education?
- Foreign exchange transactions
- Letter of credit
- Bill discounting
- Transferring money
Q. Identify the function of a bank that helps customers to safeguard their valuables like jewellery, property documents, etc.
- Bank guarantee
- Bill discounting
- Locker facility
- Letter of credit
Q. Which of the following functions of a bank make it eligible to exchange Indian currency with any other currency?
- Bill discounting
- Letter of credit and bank guarantee
- Conducting government transactions
- Conducting foreign exchange transactions
Q. Mr. Singh is into the import-export business of garments. Due to COVID19, his sales have gone down. He is planning to import certain new items and for that he needs money. Mr. Singh can approach the bank for which of the following items?
- Borrowing funds
- Letter of credit
- Bank guarantee
- Travellers' cheques
Q. What is the name of the document signed by a bank agreeing to pay the amount that is mentioned on it?
- Bill
- Locker
- Draft
- Letter of credit
Q. If a person is involved in a business of export and import of goods from different parts of the world, which of the following functions of a bank is helpful in his business transactions?
- Letter of credit
- Bank guarantee
- Locker facility
- Foreign exchange transaction
Q.
How does trade credit affect cash flow?
Q. Apart from lending facilities, which of these functions are performed by banks to facilitate businesses?
- Safe deposit lockers
- Bill discounting
- Letters of credit
- Bank guarantees