(A) bond
(B) current account
(C) savings account
(D) Certificate of Deposit
The answer is: (D) Certificate of Deposit
Banks offer certificate of deposits (CDs) and pay interest to customers who deposit their money for a fixed term.
Category: Banking MCQs Quiz
Banking MCQs quiz test questions with answers. Commercial and central bank MCQs solved multiple choice questions and answers. General banking MCQ and the role and obligations of commercial banks and the functions of a central bank.
What is the difference between CDs and Savings Accounts?
I. CDs have fixed time but savings accounts have not
II. CDs have fixed interest rate but savings accounts have not
(A) I only
(B) II only
(C) I and II
(D) I or II
The answer is: (C) I and II
Certificate of deposits (CDs) usually have a fixed time period for which a fixed interest is paid.
Which of the following is NOT a debt by a bank to its customers?
(A) CDs
(B) bonds
(C) mortgages
(D) Savings accounts
The answer is: (C) mortgages
Mortgages are loans offered by a bank to its customers.
What is the function of a central bank (or a state bank)?
(A) taking deposits from the people
(B) implementing monetary policy
(C) lending to businesses
(D) determining inflation and tax rates
The answer is: (B) implementing monetary policy
Central bank is required to implement monetary policy of the central government.
A REPO or repurchase agreement is a form of short-term ________ by the central bank.
(A) borrowing
(B) savings
(C) investment
(D) adjustment
The answer is: (A) borrowing
Which banking service enables customers to make fixed payments at regular intervals?
(A) credit card
(B) credit transfer
(C) standing order
(D) Certificate of Deposit (D)
The answer is: (D) standing order
Monetary Policy of a country is managed by its
(A) commercial banks
(B) investment banks
(C) central bank
(D) finance ministry
The answer is: (C) central bank
Monetary Policy of a country is managed by its central bank.
In banking system, the term CD means
(A) Credit or Debit
(B) Confidential Debt
(C) Certificate of Debt
(D) Certificate of Deposit
The answer is: (D) Certificate of Deposit
A bank is generally a/an ________ institution.
(A) public
(B) financial
(C) policy
(D) investment
The answer is: (B) financial
Most of the banks in a country are
(A) commercial banks
(B) investment banks
(C) national banks
(D) state banks
The answer is: (A) commercial banks
Most of the banks in a country are commercial banks which deals with the general public.