Banking Quiz for Class 12

Question 1

Which of the following is the central bank of India?

Accepted Answer

Reserve Bank of India

Question 2

Which type of bank account is most suitable for a salaried individual who makes regular transactions?

Accepted Answer

Savings Bank Account

Question 3

The Cash Reserve Ratio (CRR) refers to the minimum percentage of a bank's total deposits that must be:

Accepted Answer

Kept as reserves with the RBI

Question 4

Which of the following is NOT a function of a commercial bank?

Accepted Answer

Issuing currency notes

Question 5

A Fixed Deposit (FD) account differs from a Savings account primarily because:

Accepted Answer

FD accounts are opened for a fixed tenure and generally offer higher interest rates

Question 6

The Statutory Liquidity Ratio (SLR) requires commercial banks to maintain a certain percentage of their net demand and time liabilities in the form of:

Accepted Answer

Gold, cash, or approved government securities

Question 7

Which of the following best describes the term 'Bank Rate'?

Accepted Answer

The rate at which the RBI lends money to commercial banks for long-term purposes

Question 8

NEFT (National Electronic Funds Transfer) is best described as:

Accepted Answer

An electronic system for transferring funds between banks across India on a deferred net settlement basis

Question 9

Which of the following types of credit is an example of 'overdraft' facility provided by banks?

Accepted Answer

Permission granted to a current account holder to withdraw more than the balance available in the account

Question 10

Which of the following statements correctly describes a 'Recurring Deposit' (RD) account?

Accepted Answer

A fixed amount is deposited every month for a specified period, and the total with interest is paid at maturity

Banking Quiz for Class 12

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