KSEEB Class 10 Business Studies Important Questions Chapter 1 Bank Transactions

Students can download Class 10 Business Studies Chapter 1 Bank Transactions Important Questions, KSEEB SSLC Class 10 Social Science Important Questions and Answers helps you to revise the complete Karnataka State Board Syllabus and score more marks in your examinations.

Karnataka SSLC Class 10 Social Science Business Studies Important Questions Chapter 1 Bank Transactions

Question 1.
How is the term’bank’derived?
Answer:
The term ‘bank’ is derived from an old Italian word ‘Banco’ or from a French word ‘Banque’, both meaning a ‘bench’ or money exchange table.

Question 2.
What is a bank?
AnsweR:
A bank or a banking company is defined as a company or institution which transacts its business in finance. It accepts deposits from the public and lends it in the form of loans to those who need it.

Question 3.
What is banking?
Answer:
The services rendered by banks and the business they undertake is called banking.

Question 4.
What is the main activity of a bank?
Answer:
The main activity of a bank is accepting deposits from the customers and lending the same to those who need money.

KSEEB Class 10 Business Studies Important Questions Chapter 1 Bank Transactions

Question 5.
What is the role of banks in the economy of a country?
Answer:
Banks, being financial institutions, accept deposits from the public and use the money deposited by customers as investment. They also lend money to the needy and help in economic development. They provide interest and security to people’s money. They advance money to agriculture, industries, traders, etc., and accelerate the growth of the economy. They also provide a number of services which facilitate the growth of the economy and the country.

Question 6.
What are the characteristics of banks ?
(OR)
List the characteristics relating to bank transactions.
Answer:
Some of the characteristic features of banks and their transactions are:

  • Banks are financial institutions dealing in the money of the public.
  • A bank may be a person, a firm or a company.
  • Banks accept deposits from the public. These deposits are returned whenever the customers demand it or after a prescribed period. They act as custodians of deposits of the public and provide security to the deposits.
  • Banks advance loans to various sectors of the economy.
  • Banks facilitate the customers to withdraw their deposits in the form of cheques or drafts.
  • Banks provide various banking facilities to its customers which include general utility services and agency services.
  • A bank is a profit-seeking institution with service oriented approach.
  • Banks continuously expand and diversify their functions, services and activities.
  • Banks act as a link between depositors and borrowers.
  • The main business of a bank is banking, that is, accepting deposits from the customers and lending the same to those who need money.

Question 15.
Who controls the banking activities and transactions in India?
Answer:
The banking activities and transactions in India are controlled by the Reserve Bank of India.

Question 16.
Which is the Central bank of our country?
Answer:
The Reserve Bank of India is the Central bank of our country.

KSEEB Class 10 Business Studies Important Questions Chapter 1 Bank Transactions

Question 17.
Which bank is called ‘Mother of Banks’or ‘Banker’s Bank? Why?
Answer:
The Reserve Bank of India is known as ‘Mother of Banks’ or ‘Banker’s bank’. It is because, the RBI formulates the monetary policy which should be followed by all banks. The Reserve Bank being the Central Bank controls all other banks and lends money to them whenever needed.

Question 18.
What are the financial services rendered by post offices?
(OR)
How can you say that the postal department is providing various financial services?
Answer:
The postal department provides various financial services including Post Office Savings Bank, National Savings Certificate, Kisan Vikas Patra, Monthly Recurring Deposits, Postal Life Insurance, pension payment, money transfer, etc. In addition to this, the postal department is planning to start a bank.

Question 19.
List the different types of banks.
Answer:
There are different types of banks in India. Each type of bank is specialized in a particular type of banking activity. The important types of banks are:

  • Central Bank or Reserve Bank of India
  • Commercial banks
  • Industrial development banks
  • Land development banks
  • Indigenous banks – moneylenders
  • Co-operative banks.

Question 20.
Which are the different types of accounts that can be opened in a bank?
(OR)
Which are the types of bank accounts?
Answer:
Generally four kinds of accounts can be opened in a bank. They are:

  • Savings Bank account
  • Current account
  • Recurring deposit account, and
  • Term or fixed deposit account.

Question 21.
What is savings bank account?
Answer:
Savings bank accounts are opened to encourage people to save money and pool their savings. This type of account is generally opened in banks by salaried persons or persons who have fixed regular income. This facility is also given to students, senior citizens, pensioners, etc. There is no restriction on the number and amount of deposit. The money can be withdrawn either by cheque or withdrawal slip available in the respective banks or from ATMs through ATM cards or debit cards.

KSEEB Class 10 Business Studies Important Questions Chapter 1 Bank Transactions

Question 22.
What are the features of savings bank account?
Answer:

  • Savings bank accounts are opened to encourage people to save money and pool their savings
  • This type of account is generally opened by persons who have fixed regular income
  • There is no restriction on the number and amount of deposit
  • The money can be withdrawn either by cheque or withdrawal slip available in the respective banks or from ATMs
  • Banks give interest on these accounts.

Question 23.
The number of savings bank account holders is increasing. Give reasons.
Answer:
The number of savings bank account holders is increasing because –

  • anyone can open this account
  • the minimum balance in this account is negligible
  • money can be withdrawn from this account without any notice
  • the receipts of the people like salary, pension, loans, subsidy, etc., are credited to savings bank accounts.

Question 24.
What is current account?
Answer:
Current account is opened by businessmen who have a large number of regular transactions with the bank. It includes deposits, withdrawals and contra transactions. In current account, amount can be deposited or withdrawn any number of times in a day. Banks do not give any interest on these deposits but collect service charges or bank charges on such accounts.

Question 25.
What are the features of current account?
Answer:

  • Current account is opened by businessmen who have a large number of regular transactions with the bank
  • Amount can be deposited or withdrawn any number of times in a day
  • Banks do not give any interest on these deposits
  • Banks collect service charges or bank charges on such accounts.

Question 26.
What are the differences between savings bank account and current account?
Answer:
Savings bank account is generally opened by salaried persons or by persons who have a fixed regular income. Savings accounts are opened to encourage people to save money and pool their savings. There is no restriction on the number and amount of deposit. Banks give interest on these accounts. Current account is opened by businessmen who have large number of regular transactions. Amount can be deposited or withdrawn any number of times in a day. Banks do not give any interest on these accounts.

KSEEB Class 10 Business Studies Important Questions Chapter 1 Bank Transactions

Question 27.
What is a recurring deposit account?
Answer:
Recurring deposit accounts are generally opened for the purpose of saving for the future. Deposits are made regularly on monthly basis for a fixed period. After the period is over, the total amount is repaid with interest.

Question 28.
What is a term or fixed deposit account?
Answer:
Term or fixed deposit account is opened for a fixed period by depositing a particular sum of money. The deposit amount cannot be withdrawn before the expiry of the term. The rate of interest varies depending on the term of the deposit.

Question 29.
What is a joint account?
Answer:
An account that is opened and operated by two or more persons is called joint account.

Question 30.
Explain the need for a bank account.
(OR)
Why is it mandatory for an individual to open a bank account?
Answer:
Today banks have emerged as important financial institutions. Banks provide a safe environment and help to manage financial transactions. To avail professional banking services, it is mandatory for every individual to open a bank account.

Question 31.
Describe the procedure to open a bank account.
Answer:
The procedure or the steps to open a bank account are as follows:

  • Decide the type of account you want to open with the bank
  • Approach the bank of your choice and meet the officer concerned
  • Fill in the bank account opening form or proposal form
  • Give the reference or the introduction of an existing account holder for opening your bank account.
  • Submit the filled in account opening form to the bank along with all the required documents.
  • The officer of the bank will verify the particulars submitted
  • If the proposal form is accepted, you will be asked to make the initial deposit. Once the necessary amount is deposited, you become an account holder of the bank. Then the bank issues you a passbook, a cheque book and a pay-in-slip book.

Question 32.
What are the advantages of opening a bank account?
(OR)
How is a bank account advantageous?
Answer:
The advantages of opening a bank account are:

  • It facilitates the safe custody of money.
  • It helps in making payments.
  • It helps in collection of money.
  • Bank account holders get advances and loans.
  • Bank account helps in smooth financial transactions.
  • Bank account holders get safe deposit locker facilities.

Multiple-choice Questions:

Question 1.
Every banking company should have the word ………………. in its name.
(A) India
(B) Limited
(C) Bank
(D) Money
Answer:
(C) Bank

Question 2.
Which of the following functions is performed by banks?
(A) Looking after the administration of debtor companies
(B) Dealing in foreign exchange.
(C) Imposing income tax on the deposits of the depositors
(D) Implementing the government’s economic policies.
Answer:
(B) Dealing in foreign exchange .

Question 3.
The ‘Banker’s Bank’ is –
(A) State Bank of India
(B) Nationalised banks
(C) Foreign banks
(D) Reserve Bank of India.
Answer:
(D) Reserve Bank of India.

KSEEB Class 10 Business Studies Important Questions Chapter 1 Bank Transactions

Question 4.
Which one of the following is not a bank account?
(A) Cumulative Cash Account
(B) Savings Bank Account
(C) Term Deposit Account
(D) Current Account.
Answer:
(A) Cumulative Cash Account

Question 5.
Traders, businessmen and institutions who have large number of bank transactions normally open –
(A) Term Deposit Account
(B) Recurring Deposit Account
(C) Savings Bank Account
(D) Current Account.
Answer:
(D) Current Account.

Question 6.
Which one of the following is not a service provided by banks?
(A) Advancing loans
(B) Providing security to loans
(C) Accepting deposits
(D) Providing safety lockers.
Answer:
(B) Providing security to loans

Question 7.
Deposit made regularly on monthly basis for future use is called –
(A) Current Account
(B) Savings Bank Account
(C) Recurring Deposit Account
(D) Term Deposit Account.
Answer:
(C) Recurring Deposit Account

Question 8.
The recent development in the banking industry is –
(A) nationalisation of banks
(B) inclusion of post offices into its fold
(C) privatisation of banks
(D) merger of all banks with the Reserve Bank of India
Answer:
(B) inclusion of post offices into its fold

Question 9.
Generally banks do not give any interest collect service charges on this account –
(A) Savings bank account
(C) Term deposit account
(B) Recurring deposit account
(D) Current account
Answer:
(D) Current account

KSEEB Class 10 Business Studies Important Questions Chapter 1 Bank Transactions

Question 10.
The mother of banks is –
(A) State Bank of India
(C) Co-operative Bank
(B) Reserve Bank of India
(D) Land Development Bank
Answer:
(B) Reserve Bank of India

Question 11.
The National Savings Certificate is issued by –
(A) Post offices
(B) Central Bank
(C) Co-operative banks
(D) Commercial banks
Answer:
(A) Post offices

Question 12.
The central bank of our country is
(A) State Bank of India
(B) Bank of India
(C) Reserve Bank of India
(D) Indian Bank
Answer:
(C) Reserve Bank of India

Question 13.
Money can be deposited or withdrawn any number of times in this type of account
(A) Current account
(B) Term deposit account
(C) Savings bank account
(D) Recurring deposit account
Answer:
(A) Current account

Fill in the Blanks:

  1. The term ‘bank’ has been derived from the French word Banque
  2. The Banker’s Bank is Reserve Bank of India
  3. An example for nationalised bank is Canara Bank / Syndicate Bank
  4. National Savings Certificates are issued by post offices
  5. The type of bank account in which any number of transactions can be made in a day is Current Account
  6. The deposits for a fixed term can be deposited in Term or Fixed Deposit account.

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