Banking Transactions Class 10 Questions and Answers KSEEB 10th Social Science
I. Fill in the blanks with suitable answers:
Question 1.
The words ‘Bank’ has been derived from the French word ___________ .
Answer:
‘Banque’
Question 2.
The Banker’s Bank is ___________.
Answer:
‘Mother ‘ of Banks’
Question 3.
An example for Nationalised bank is ___________.
Answer:
State Bank of India
Question 4.
The National saving certificates are issued by ___________.
Answer:
Indian Postal Deportment
Question 5.
The type of account where any number of transactions can be made in a day with Bank is ___________ .
Answer:
Current Account
Question 6.
The deposits for a fixed term can be deposited in ___________ account.
Answer:
Term of Fixed Deposit Account
II. Answer the following questions after discussion with your friends.
Question 1.
What is a bank?
Answer:
Banks are financial institutions which use the money deposited by customers as investments and have agreed to return it whenever the customers require their money.
Question 2.
List out the characteristics relating to bank transactions.
Answer:
The characterises of a Bank are:
- Dealing with Money
- Individual / Firm or Company
- Acceptance of Deposits
- Lending Loans
- Payment and with drawal
- Agency and utility service
- Profit and servile Orientation
- Ever increasing function
- Connecting Link
- Banking Business
- Name Identity
Question 3.
What are the functions of a bank?
Answer:
Functions of Banks are :
(a) Accepting deposits from public and others.
(b) Lending money to public (Loans) and other institutions.
(c) Transferring money from one place to another (Remittances)
(d) Collecting money on cheques, drafts and bills.
(e) Discounting of bills.
(f) Hiring safe deposit lockers.
(g) Conducting foreign exchange transactions.
(h) Keeping valuables in safe custody.
(i) Issuing letters of credit and guarantee
(j) Conducting government transactions (State & Central)
Question 4.
Explain the relationship between the banker and its customers.
Answer:
Relationship between Bankers and customers :
The relation between a banker and customers falls under two broad categories, namely-
1. General relationship
2. Special relationship
1. General relationship
- Primary Relationship (Debtor and creditor relationship).
- Subsidiary Relationship (Trustee and beneficiary relationship.)
- Agent and Principal Relationship
2. Special relationship
- Obligation to honour cheques.
- Obligation to maintain secrecy of accounts.
Question 5.
“The number of saving bank account holders is increasing” – Give reasons.
Answer:
- Saving accounts encourages the habit of saving among the people who have an income
- Banks provide many facilities and services for saving account holders such as Electronic fund transfer, Gold Loans, etc.
- The money is safe in a bank account and prevents unnecessary expenses.
- If money is needed urgently, it can be withdrawn at a convenient ATM at their own convenient time.
Question 6.
What are the advantages of opening a bank account?
Answer:
- Bank account facilitates safe custody of money.
- Bank account helps in making payments.
- Bank account helps in collection of money.
- Bank account holders get advances and loans.
- Bank account helps in smooth financial transactions.
- Bank account holders can get safe deposit locker facility.
Additional Questions and Answers
Question 1.
How are banks important for the development of a country?
Answer:
The development of any country depends on the efficient banking system of that county. Banks advance money to agriculture, industries, traders and all other sections of the society which are the main organs for the development of a county and accelerate the growth of the country.
Question 2.
Define ‘Banking Company’?
Answer:
A Banking company may be defined as a company which transacts the business with finance.
Question 3.
Write a ‘note on Reserve Bank of India?
Answer:
The Reserve Bank of India (RBI) is known as mother of banks or Bankers Bank or Central Bank of India. All banking transactions in India are controlled by the RBI. The RBI formulates the monetary policy which should be followed by all banks.
Question 4.
Mention the financial services provided by the ‘Indian Postal Department’ through post offices.
Answer:
The Postal Department provides various financial services such as Post Office savings Bank, Issue of National Savings certificate, Kisan Vikas Patra; monthly recurring deposits, Postal Life Insurance, Pension Payment, Money transfer etc.
Question 5.
Make a list of different types of Bank specialized in different type of activities.
Answer:
- The Important types of Banks are:
- Central Bank or Reserve Bank of India.
- Commercial Banks
- Industrial Development Banks
- Land Development Banks
- Indigenous Banks (Money lenders or Sahukars)
- Co-operative Banks
Multiple Choice Questions and Answers
Question 1.
The money deposited in a bank can be withdrawn by the customer using?
(a) Cheque
(b) Challan
(c) Debit Card
(d) Money transfer
Answer:
(a) Cheque
Question 2.
Banking Transactions in India are controlled by
(a) State Bank of India
(b) Reserve Bank of India
(c) Canara Bank
(d) Vijaya Bank
Answer:
(b) Reserve Bank of India
Question 3.
Other than banks which other government department also provides financial services.
(a) Department of Education
(b) Department of Co-operation
(c) Indian Postal Department
(d) Railway Department
Answer:
(c) Indian Postal Department
Question 4.
If you need to invest is National Savings Certificate you have to approach
(a) Agriculture Department
(b) Finance Department
(c) Education Department
(d) Postal Department
Answer:
(d) Postal Department
Question 5.
The Bank Account from which money can be deposited or withdrawn any number of times is
(a) Term and Fixed Deposit Account
(b) Recurring Deposit Account
(c) Current Account
(d) Savings Account
Answer:
(C) Current Account