Students get through the TN Board 11th Commerce Important Questions Chapter 11 Types of Banks which is useful for their exam preparation.

TN State Board 11th Commerce Important Questions Chapter 11 Types of Banks

Very short answer questions

Question 1.
The structure of Cooperative banks?
Answer:
TN Board 11th Commerce Important Questions Chapter 11 Types of Banks 1

Question 2.
List the various types of deposit accepted by banks?
Answer:

  1. Fixed Deposit,
  2. Saving Deposit,
  3. Current Deposit,
  4. Recurring Deposit.

A bank in a country opposite another bank in a foreign countries to act as a correspondent bank.

Question 3.
What are the development banks?
Answer:
Huge finance required for investment, expansion, and modernization of big industries and others is granted by a separate type of bank called development Banks.

TN Board 11th Commerce Important Questions Chapter 11 Types of Banks

Question 4.
Give two example regional rural banks?
Answer:

  1. Pallavan Grama Bank, Salem, Tamil Nadu.
  2. Pandian Grama Bank,Thirumangalam, Madurai Dirstict, Tamil Nadu.
  3. Vallalar Grama Bank, Chidambaram, Cuddalore District, Tamil Nadu.
  4. Paduvai Bharathiyar Grama Bank, Villiyanur, Puducherry.

Question 5.
Give two example specialized banks.
Answer:
(a) Export-Import Bank of India (EXIM Bank).
(b) National Housing Bank (NHB).

Question 6.
Name of the Nationalised banks?
Answer:
The Nationalised banks are Indian Bank, Indian Overseas Bank, Oriental Bank of Commerce.

Question 7.
Name of the private sector banks?
Answer:
The Private Sector banks are Lakshmi Vilas Bank, Karur Vysya Bank, Kotak Mahindra bank.

Question 8.
Public sector banks give two examples.
Answer:
Public sector banks are State Bank of India, IDBI Bank Ltd., and all nationalized banks.

TN Board 11th Commerce Important Questions Chapter 11 Types of Banks

Short answer questions

Question 1.
Small finance banks objectives.
Answer:

  1. Mobilizing rural savings (accepting deposits).
  2. Providing credit to – (a) small and marginal farmers, (b) to micro and small industries, and (c) Other unorganized sector entities.
  3. In September 2015, RBI granted provisional licenses to 8 Non-Banking Finance Companies (NBFCs) already engaged in microfinance to be converted into SFBs and 2 others. SFBs are low-cost structure banks. They are formed under section 22 of the Banking Regulation Act 1949.

Question 2.
What are the features of banks?
Answer:

  1. Acceptance of deposits of money from the public.
  2. Obligation to refund deposits on demand.
  3. Lending or investing money for promotion and development of business.
  4. Profitable employment of funds received as deposits from the public.
  5. Money is. with-drawable by cheque or draft.

Question 3.
Mention the main function of Co-operative Banks.
Answer:
The main function of Co-operative Banks is to link the farmers with the money markets of the country.

TN Board 11th Commerce Important Questions Chapter 11 Types of Banks

Long answer questions

Question 1.
Explain the need for banking.
Answer:

  1. Savings and capital formation Bank plays a vital role in mobilizing the savings of the people and promoting capital formation for the economic development of the country.
  2. Canalization of savings The mobilized savings are allocated by the banks for the development of various fields such as agriculture, industry, communication, transport etc.
  3. Implementation of Monetary Policy A well-developed banking system can easily implement monetary policy because the development of the economy depends upon the control of credit given by the banks. So, banks are necessary for the effective implementation of monetary policy.
  4. Encouragement of Industries Banks provides various types of financial services such as granting cash credit, loans, issuing letters of credit, and bill discounting, etc., which encourages the development of various industries in the country.
  5. Regional development Banks, by transferring surplus money from the developed regions to the less developed regions reduces regional imbalances.

Question 2.
What are central co-operative banks and what are its functions?
Answer:
Central Co-operative Banks is the federation of all primary societies at the district level. Therefore it is also called District co-operative Central Banks.
Functions:

  1. They supervise, control, and finances the primary credit societies.
  2. They provide credit to individual customers on the basis of security.
  3. They accept deposits and pays a higher rate of interest than commercial banks.
  4. They help in remitting money to their customers.
  5. They help in solving problems of primary co-operative societies.
  6. They control and supervise the working of primary co-operative societies.

TN Board 11th Commerce Important Questions Chapter 11 Types of Banks

For Own Thinking

Question 1.
The debate about the benefits of various banks.
Answer:

  1. Savings and capital formation.
  2. Canalization of savings.
  3. Implementation of monetary policy.
  4. Encouragement to industries.
  5. Regional development.
  6. Development of Agriculture of other neglected sectors.

Question 2.
Bank visit – write an essay about the bank you visited.
Answer:
While filling the form. I asked for her ID proof. To my amazement, she took out a polythene bag full of all sorts of cards. Some cards had her picture on them and some were of her husband. I look for her Adhaar Card and fill in the details after 15 minutes of interrogation. I completed her from where applicants’ signatures were required. She with all her concentration held the pen as if it was a discomforting object to hold and wrote her name in Hindi. Her handwriting similar to that of a kid of UKG class may be a bit better.

Question 3.
When you want loan how will you get the loan from bank?
Answer:

  1. Banks are seeing the eligibility to get loans.
  2. Salaried people to get loan.
  3. Three months bank statement.
  4. ID proof.
  5. Address proof.
  6. Repayment sources.
  7. Equal asset as a surety.

TN Board 11th Commerce Important Questions Chapter 11 Types of Banks

For Future teaming

Question 1.
Mention the names of Commercial Banks, Industrial Banks, Cooperative Banks, and Foreign Banks in your areas.
Answer:
Commercial banks are:

  1. Canara Bank
  2. Punjab National Bank
  3. Lakshmi Villas Bank.

Industrial banks are:

  1. IDBI: Industrial Development Bank of India.
  2. ICICI: Industrial Credit and Investment Corporation of India.

Co-operative banks are:

  1. Central co-operative bank.
  2. Land Development bank.

Foreign banks are:

  1. Standard Chartered Bank.
  2. Bank of England.

Question 2.
Collection of pictures related to different types of banks.
Answer:
TN Board 11th Commerce Important Questions Chapter 11 Types of Banks 2

TN Board 11th Commerce Important Questions Chapter 11 Types of Banks

Case Study

Question 1.
You are the Agricultural bank manager; a farmer approaches you for a loan from your bank for purchasing a tractor and other farm equipment. How would you sanction the loan?
Answer:
Regarding land details: Whether he is a small farmer. Whether he is eligible to get loan repayment sources.

Question 2.
Due to natural calamities, the farmer could not repay the loan. He has no other way to repay the loan. How to collect loans from the farmer?
Answer:
Banker collect loan from the farmer by way of Personal property. But without interest bankers collect loans from the farmer. Sometimes farmer has no way to repay the loan. The loan will become bad debt.

Multiple choice questions

1. Bank of Hindustan was first bank in India established in:
(a) 1870
(b) 1970
(c) 1670
(d) 1770
Answer:
(d) 1770

2. The general bank of India was established in:
(a) 1976
(b) 1786
(c) 1686
(d) 1886
Answer:
(b) 1786

TN Board 11th Commerce Important Questions Chapter 11 Types of Banks

3. Bank of Calcutta was the first joint-stock bank established in:
(a) 1906
(b) 1806
(c) 1606
(d) 1706
Answer:
(b) 1806

4. Bank of Calcutta it was renamed as the Bank of Bengal:
(a) 1909
(b) 1809
(c) 1609
(d) 1709
Answer:
(b) 1809

5. Bank of Bombay is established in:
(a) 1840
(b) 1940
(c) 1860
(d) 1866
Answer:
(a) 1840

6. IDBI Bank established as the apex development bank in:
(a) 1999
(b) 2004
(c) 2008
(d) 1964
Answer:
(d) 1964

TN Board 11th Commerce Important Questions Chapter 11 Types of Banks

7. All Co-operative bank in Tamilnadu are registered under Tamilnadu Co-operative societies Act:
(a) 1883
(b) 1663
(c) 1773
(d) 1983
Answer:
(d) 1983

8. In 2017 there were …….. foreign banks in India and all of them were scheduled bank.
(a) 40
(b) 41
(c) 42
(d) 43
Answer:
(c) 42

9. Regional rural banks as on 31.3.2016 there were 56 RRB in India with branches:
(a) 14494
(b) 15000
(c) 18000
(d) 10000
Answer:
(a) 14494

10. Give the example of RRB:
(a) ICICI
(b) HDFC
(c) UTI
(d) Pallavan grama bank
Answer:
(d) Pallavan grama bank