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MCQ Questions for CBSE Class 12 with Answers
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Function of Commercial Banks Class 12 MCQ Questions With Answers
1.
For the bank, the amount of money in the account of the accountholder is called:
Profit
Deposit
Interest
Loan
2.
__________ account is usually opened by businessmen, corporations, public bodies etc.
Saving
Current
Fixed
Recurring
3.
Credit creation is done under which of the following methods?
Making Investment
Providing Loans
Discounting of Bill
All of the above
4.
For the process of credit creation all the deposits (liabilities) of the bank are in the form of _____________
Demand deposits
Time deposits
Saving deposits
Foreign currency deposits
5.
Which bank accepts the deposits from the public?
Commercial Banks
State Bank
Mortgage Bank
All of the above
6.
Credit money in the country is controlled by:
Commercial Bank
Agriculture Bank
Central Bank
All of the above
7.
Here, the interest is charged on the full amount of the loan
Cash Loan
Short-term Loan
Demand Loan
None of these
8.
Generally, loans are of how many types?
5
6
7
3
9.
I'm an institution which performs the function of accepting deposits, lending funds & making an investment with the main aim of profit maximization.What am I?
Commercial Bank
Central Bank
Government
None of these
10.
___________ facility is available to the general public to enable them to keep there valuables such as shares, gold, silver ornaments etc.
Underwriting
Letter of credit
D-mat account
Safe deposit vault
11.
Facility through E-banking is provided through____________.
Telephone
T.V
Internet
Radio
12.
Deposits are of how many types___
5
2
1
3
13.
Which of the following functions are performed by the commercial banks?
Issuance of currency notes
Rediscounting of bills
Preparation of monetary policy
Credit creation
14.
ATM facility is a part of Primary functions.
True
False
15.
The part of deposits kept with the central bank is called:
Cash reserve
Margin
Interest rate
All of these
16.
In this type of deposit, interest is charged from the customer
Fixed Deposit
Demand deposit
Saving deposits
none of the above
17.
When commercial banks give loan for a period 5 year to 30 year they are referred as____________.
Short term loan
Medium term loan
Long term loan
All of above
18.
Commercial Banks has ____ Functions
4
3
2
1
19.
Here, interest is charged on the amount actually withdrawn. What am I?
Demand Loan
Cash Loan
Short-term Loan
None of the above
20.
Under this, only 2 transactions are allowed
Demand Deposits
Fixed Deposits
Saving Deposits
None of the above
21.
Credit money in the country is created by:
Central Bank
Commercial Bank
Saving Banks
Agriculture Banks
22.
Which of the following is NOT a function of the commercial banks?
Receiving deposits
Issuing Loans
Rediscounting of Bill
Safe custody to Valuables
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