Primary Functions of Banks (Part I) - Banking Awareness Quiz
Accepting Deposits, Savings, Current, Recurring and Fixed-deposit
Accounts, CASA, Small Account, BSBDA, Deposit Insurance, PMJDY Account
1. Which account is best suitable for fixed monthly
savings to earn maximum interest, for an individual?
A) Savings Account
B) Current Account
C) Recurring Account
2. What is the full form of CASA?
A) Current Account and Small Account
B) Current Account and Savings Account
C) Current Account and Small-Savings
Acccount
D) None of the above
3. Choose the correct option regarding CASA ratio
-
A) (Current + Savings) deposit / Total deposit of a bank
B) (Current + Small) deposit / Total
deposit of a bank
C) (Current + Small) deposit /
(Recurring + Term) deposit of a bank
D) (Current + Savings) deposit /
(Recurring + Term) deposit of a bank
4. Which one is better for a bank -
A) Higher CASA ratio (Higher CASA ratio means, most deposits are in Current and Savings
Accounts, which bear less interest than Term and Recurring deposits. Therefore,
banks will have to pay less interest in those accounts) (Note that this is from
the view of interest paid by banks)
B) Lower CASA ratio
C) No effect on bank
D) None of the above
5. Which of the following is false?
A) Savings Deposits bear less interest than Current Deposits
B) Current Accounts generally bear no
interest
C) Term Deposits bear more interest
than Savings or Current Accounts
D) All are true
6. Which of the following is false?
A) There is no limit of transactions
/ withdrawals from a Current Account, but Savings Accounts have limited
transaction and withdrawal facility
B) There is no interest payable in
Current Account deposits, but Savings Accounts attract interests in the
deposits
C) Current Account is used for
business purpose, but Savings Accounts is used for saving deposits
D) All are true
7. What is the full form of BSBDA?
A) Basic Savings Bank Deposit Account
B) Basic Small Bank Deposit Account
C) Basic Standard Bank Deposit
Account
D) Basic Small-savings Bank Deposit
Account
8. Which of the following is true regarding BSBDA?
A) There is no requirement of
maintaining minimum balance in BSBDA
B) Maximum 4 withdrawal (including
ATM withdrawals) is allowed in BSBDA
C) ATM/Debit card is provided to the
customers
D) All are true
9. RBI instructed banks to convert No-frills
account into -
A) Savings Account
B) BSBDA Account
C) Current Account
D) None of the above
10. Which of the following is true regarding
BSBDA?
i. Total balance should not exceed Rs. 1 lakh in a year
ii. Maximum balance should not exceed Rs. 50,000 at any point of
time
iii. Debits by means of cash withdrawals or remittances will not
exceed Rs. 10,000 in a month
A) Only (ii) is true
B) Both (i) and (ii) are true
C) All are true
D) None is true
11. Which of the following is true regarding Small
Accounts?
i. Total balance should not exceed Rs. 1 lakh in a year
ii. Maximum balance should not exceed Rs. 50,000 at any point of
time
iii. Debits by means of cash withdrawal or remittances will not
exceed Rs. 10,000 in a month
A) Only (i) is true
B) Only (ii) is true
C) (i) and (iii) are true
D) (i), (ii) and (iii) are true
12. Which of the following is true regarding Small
Accounts?
i. Small accounts are valid for a period of 12 months initially, which may
be extended by another 12 months if the person provides proof of having applied
for an Officially Valid Document
ii. Small accounts can only be opened at CBS linked branches of
banks or at such branches where it is possible to manually monitor the
fulfillment of the conditions
iii. Foreign remittances cannot be credited to Small Accounts
without completing normal KYC formalities
A) (i) and (iii) are true
B) (ii) and (iii) are true
C) All are true
D) Only (i) is true
13. What is the full form of DICGC?
A) Deposit Interest Credit Guarantee
Corporation
B) Deposit Insurance Credit Guarantee Corporation
C) Deposit Interest-free Credit
Guarantee Corporation
D) Deposit Insurance Cooperation
Guarantee Corporation
14. DICGC insures which of the following bank
accounts?
A) CASA Accounts
B) Term deposit Accounts
C) Recurring deposit Accounts
D) All of the above
15. Which is true regarding banks insured under
DICGC?
i. Commercial banks - Public sector banks, Private sector banks, Foreign
banks operating in India, Regional Rural Banks, etc.
ii. Cooperative banks - State, Central and Primary Cooperative
Banks (collectively called Urban Cooperative Banks, or UCBs) that have amended
Cooperative Societies Act, empowering RBI to control them
A) Only (i) is true
B) Only (ii) is true
C) Both (i) and (ii) are true
D) Neither (i) nor (ii) is true
16. Which deposits are not covered under DICGC?
i. Foreign government deposits
ii. Central and State government deposits
iii. Savings deposits of individuals
iv. Inter-bank deposits
A) (i) and (ii)
B) (i), (ii) and (iii)
C) (i) and (iv)
D) (i), (ii) and (iv)
17. What is the maximum amount / limit to be
claimed under Deposit Insurance scheme of DICGC?
A) Rs. 50,000
B) Rs. 1 lakh
C) Rs. 1.5 lakh
D) No such limit
18. Choose the correct option regarding PMJDY
Account -
i. Accidental Insurance cover is Rs. 30,000
ii. Life Insurance cover is Rs. 1 lakh
iii. Overdraft (OD) facility upto Rs. 5,000 is permitted (after
satisfactory operation of account)
iv. RuPay Debit Card will be provided
v. No minimum balance criteria (unless cheque book facility is
availed)
A) (i), (ii) and (v) are true
B) (i), (ii), (iii) and (iv) are true
C) (iii), (iv) and (v) are true
D) All are true
19. PMJDY scheme of government has been recognized
by Guiness Book of World Record for -
A) Most bank accounts opened
B) Most bank accounts opened in a single week
C) Most bank accounts opened in a
month
D) None of the above
20. What is the slogan of PMJDY?
A) Mera Khata Bhagya Vidhata
B) Sabke Saath Sabke Vikash
C) Aapka paisa, Aapke haath
D) None of the above
More Banking Quiz Topic Wise:
- Types
of Banks (Part – 2): Banking Awareness Quiz
- Types of Banks (Part – 1): Banking Awareness Quiz
- Indian Banking History, Role of Banks: Banking Awareness
Quiz
