Chapter 11: Types of Banks — Online MCQ Test
COMMERCE · CLASS 11th · Tamil Nadu State Board
Practice Chapter 11: Types of Banks with a free chapter-wise online MCQ test.
This chapter covers: Focusing on financial institutions this chapter details bank classifications across different sectors. Students explore commercial development agricultural industrial cooperative a....
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Chapter 11: Types of Banks — Important Questions & Answers
Which type of bank focuses primarily on providing long-term credit to industrial concerns?
- A. Commercial Bank
- B. Industrial Bank
- C. Agricultural Bank
- D. Co-operative Bank
Answer: B. Industrial Bank
Industrial banks are specifically designed to provide medium and long-term finance to industries for expansion and modernization.
Industrial banks are specifically designed to provide medium and long-term finance to industries for expansion and modernization.
The primary objective of a Co-operative Bank is:
- A. Profit maximization
- B. Service to members
- C. International trade
- D. Government regulation
Answer: B. Service to members
Co-operative banks operate on the principle of mutual help and service to their members rather than generating profit.
Co-operative banks operate on the principle of mutual help and service to their members rather than generating profit.
Commercial banks accept deposits primarily to:
- A. Distribute loans to the poor only
- B. Create credit and earn profit
- C. Manage government accounts only
- D. Store gold and silver
Answer: B. Create credit and earn profit
Commercial banks accept deposits from the public to create credit through lending and generate profit via interest spreads.
Commercial banks accept deposits from the public to create credit through lending and generate profit via interest spreads.
How does an 'Investment Bank' differ from a 'Commercial Bank'?
- A. Investment banks accept current accounts; commercial banks do not.
- B. Investment banks help in issuing securities; commercial banks focus on deposit lending.
- C. Commercial banks are government-owned; investment banks are not.
- D. There is no difference in their operations.
Answer: B. Investment banks help in issuing securities; commercial banks focus on deposit lending.
Investment banks act as intermediaries for corporations to raise capital, whereas commercial banks focus on day-to-day banking activities like deposits and loans.
Investment banks act as intermediaries for corporations to raise capital, whereas commercial banks focus on day-to-day banking activities like deposits and loans.
A key characteristic that distinguishes an 'Indigenous Banker' from a 'Commercial Bank' is:
- A. Strict adherence to the Banking Regulation Act in every aspect
- B. Reliance on traditional accounting methods and personal informal relationships
- C. Compulsory registration with the World Bank
- D. Requirement to issue credit cards to all customers
Answer: B. Reliance on traditional accounting methods and personal informal relationships
Indigenous bankers operate informally, often using vernacular books and family-based trust, distinguishing them from the regulated and standardized commercial banking sector.
Indigenous bankers operate informally, often using vernacular books and family-based trust, distinguishing them from the regulated and standardized commercial banking sector.