Chapter 3: Banking Services — Online MCQ Test
COMMERCE · CLASS 12 INTERMEDIATE 2 YEAR · Telangana State Board
Practice Chapter 3: Banking Services with a free chapter-wise online MCQ test.
This chapter covers: Focusing on financial institutions this chapter covers commercial bank functions e-banking RTGS NEFT mobile banking agency services and general utility functions..
AI-generated questions from basic to board-exam level, with instant results and explanations.
Chapter 3: Banking Services — Important Questions & Answers
Which of the following is considered the primary function of a commercial bank?
- A. Accepting deposits
- B. Providing lockers
- C. Acting as a trustee
- D. Issuing traveler's cheques
Answer: A. Accepting deposits
Accepting deposits and lending money are the two fundamental (primary) functions of all commercial banks.
Accepting deposits and lending money are the two fundamental (primary) functions of all commercial banks.
Which of the following is an example of an 'Agency Service' provided by a commercial bank?
- A. Safe custody of valuables
- B. Collection of cheques and dividends
- C. Underwriting of shares
- D. Providing locker facilities
Answer: B. Collection of cheques and dividends
Agency services involve banks acting on behalf of customers, such as collecting cheques, bills, and dividends.
Agency services involve banks acting on behalf of customers, such as collecting cheques, bills, and dividends.
Which of the following is a characteristic of RTGS (Real Time Gross Settlement)?
- A. Transactions are settled in batches
- B. It is mainly used for small retail transactions
- C. Settlement takes place in real-time, on a transaction-by-transaction basis
- D. It requires a minimum of 24 hours to clear funds
Answer: C. Settlement takes place in real-time, on a transaction-by-transaction basis
RTGS is designed for high-value transactions where settlement occurs immediately on an individual basis.
RTGS is designed for high-value transactions where settlement occurs immediately on an individual basis.
Compare the risks associated with banking services. Which of the following poses the highest 'Cyber Risk' to a bank customer?
- A. Physical loss of a cheque book
- B. Phishing attacks via mobile banking apps
- C. Delay in cheque clearing
- D. Denial of overdraft facility
Answer: B. Phishing attacks via mobile banking apps
Phishing is a cyber-security threat specific to digital and mobile banking platforms.
Phishing is a cyber-security threat specific to digital and mobile banking platforms.
A customer receives an SMS stating 'Your account will be blocked; click this link to verify'. This is a classic example of:
- A. Standard bank procedure
- B. A security breach or phishing attempt
- C. An automated system update
- D. A mandatory e-banking promotion
Answer: B. A security breach or phishing attempt
Banks never ask for verification via links in SMS messages; this is a malicious attempt to steal credentials.
Banks never ask for verification via links in SMS messages; this is a malicious attempt to steal credentials.