Secondary
Functions of Banks – Banking Awareness Quiz
Secondary Functions of Banks, ATMs -
White Label, Brown Label, Cards - Prepaid card, Credit card, Debit card,
e-banking, m-banking, NBFC, Letter of Credit
1. Which bank first
introduced ATM in India in 1987?
A) State Bank
of India (SBI)
B) Punjab
National Bank (PNB)
C) Hongkong
and Shanghai Banking Corporation (HSBC)
D) Federal
Bank
Answer: C)
2. Which bank first
introduced Credit Card in India?
A) State Bank
of India (SBI)
B) Central
Bank of India
C) Bank of
India (BOI)
D) None of
the above
Answer: B)
3. ATMs set up, owned and
operated by non-bank entities (e.g., NBFC) are known as -
A) White
Label ATMs (WLA)
B) Brown
Label ATMs (BLA)
C) Bank owned
ATMs
D) None of
the above
Answer: A)
4. ATMs set up and owned
by a Service provider, but cash management and connectivity is provided by a
sponsor banks are known as -
A) White
Label ATMs (WLA)
B) Brown
Label ATMs (BLA)
C) Bank owned
ATMs
D) None of
the above
Answer: B)
5. What is the full form
of ATM?
A) Automation
Teller Machine
B) Automated
Teller Machine
C) Automatic
Teller Machine
D) Automotive
Teller Machine
Answer: B)
6. Which cards may not
linked with bank accounts?
i. Debit card
ii. Credit card
iii. Prepaid card
A) Only (ii)
B) Both (ii)
and (iii)
C) Only (i)
D) (i), (ii)
and (iii)
Answer: B)
7. Open-system Prepaid
Cards are issued by -
A) Banks
B) Authorized
non-bank entities
C) Any
non-bank entities
D) None of
the above
Answer: A)
8. What is the maximum
amount that can be used in Open-System Prepaid Cards?
A) Rs. 50,000
B) Rs. 1 lakh
(earlier max limit was Rs. 50,000)
C) Rs. 20,000
D) No such
limit
Answer: B)
9. Mobile Wallet is a type
of -
A) Debit Card
B) Credit
Card
C) Prepaid
Card
D) None of
the above
Answer: C)
10. Choose the correct
option from the followings -
i. NBFCs cannot
accept demand deposits from public
ii. NBFCs are
part of the Payments and Settlement System
iii. NBFCs cannot
issue cheques drawn on itself
iv. Deposits in
NBFCs are insured by DICGC
A) (i), (ii)
and (iii) are true
B) (i) and
(iii) are true
C) (ii) and
(iii) are true
D) Only (i)
is true
Answer: B)
11. NBFCs are registered
under which Act?
A) Companies
Act, 1956
B) Banking
Regulation Act, 1949
C) Negotiable
Instruments Act, 1881
D) None of
the above
Answer: A)
12. Which type of ATMs can
be provided by NBFCs?
A) Bank-owned
ATMs
B) WLAs
C) BLAs
D) None of
the above
Answer: B)
13. Choose the correct
option regarding Secondary Functions of Banks -
i. Accepting
Deposits
ii. Advancing of
Loans
iii. Overdraft
Facility (OD)
iv. Discounting
Bills of Exchange
v. Agency
Functions - like Remittances (fund transfer), Collection and payment of various
items, Purchase and Sale of Foreign exchange, Purchase and sale of Securities,
Income Tax consultancy, Trustee and Executor, Letter of reference, etC)
vi. General
Utility Functions - Locker facility, Travellers' Cheques, Letter of Credit,
Underwriting Securities, Collection of Statistics, etC)
Which of the above is/are
Secondary Function of Banks?
A) Only (i)
and (ii)
B) Only
(iii), (iv), (v) and (vi)
C) Only (v)
and (vi)
D) Only (iv),
(v) and (vi)
Answer: B)
14. Letter of Credit is
generally used for -
A) International
trade
B) Domestic
trade
C) Foreign
Exchange
D) None of
the above
Answer: A)
15. Initially who provides
Bill of Lading to whom?
A) Seller to
Carrier
B) Carrier to
Seller
C) Carrier to
Buyer
D) Seller to
Buyer
Answer: B)
