Test: Banking Awareness - Bank Exams MCQ

A bearer cheque is always payable across the bank counter. A cross cheque is a cheque which has to be directly deposited in the bank account of the person so mentioned. It cannot be made payable over the counter.

A bank that issues stock and requires shareholders to be held liable for the company's debt is known as Joint stock bank. In other words, a joint stock bank combines features of a general partnership, in which owners of a company split profits and liabilities, and a publicly-traded company, which issues stock that shareholders are able to buy and sell on an exchange. A joint-stock bank is not owned by a government.
The principal liability of a Joint Stock Bank relates to repayment of its customer's deposits.

Not Negotiable Crossing is defined in Sec. 130 of the Negotiable Instrument Act, 1881. The words 'not negotiable' can be added to a crossing. The effect of such a crossing is that it removes the most important characteristic of a negotiable instrument: the transferee of such a crossed cheque cannot get a better title than that of the transferor (cannot become a holder in due course) and cannot convey a better title to his own transferee, but the instrument remains transferable. In simple words we can say, the cheque cannot be presented by anyone other than the payee.

NEFT (National Electronic Funds Transfer) enables funds transfer from one bank to another but works a bit differently than RTGS since the settlement takes place in batches rather than individually, making NEFT slower than RTGS.

Indigenous bankers are private firms or individuals who operate as banks and as such both receive deposits and give loans. Indigenous Bankers belong to unorganised sector and are not governed by any set of guidelines. The indigenous bankers have been playing a significant role in the economic life of India. When commercial banking had not developed, they were the main source of finance for agriculturists, traders, businessmen, small industrialists etc.

Fiscal deficit is defined as total budget expenditure over total budget receipts excluding borrowings. Generally fiscal deficit takes place either due to revenue deficit or a major hike in capital expenditure. Capital expenditure is incurred to create long-term assets such as factories, buildings and other development.
A deficit is usually financed through borrowing from either the central bank of the country or raising money from capital markets by issuing different instruments like treasury bills and bonds.

The measure of the total valuation of all officially recognised final goods and services produced within a country in a given period of time is Gross Domestic Product.

A credit rating is an evaluation of the credit risk of a prospective debtor (an individual, a business, company or a government), predicting their ability to pay back the debt, and an implicit forecast of the likelihood of the debtor defaulting. A credit rating can be assigned to any entity that seeks to borrow money — an individual, corporation, state or provincial authority, or sovereign government.

National Bank for Agriculture and Rural Development is an apex regulatory body for overall regulation of regional rural banks and apex cooperative banks in India. It is under the jurisdiction of Ministry of Finance, Government of India.

Current accounts are non remuneration accounts. Since current account is a business account, no interest is paid by any bank as per bank norms.