Students get through the TN Board 11th Commerce Important Questions Chapter 12 Functions of Commercial Banks which is useful for their exam preparation.

TN State Board 11th Commerce Important Questions Chapter 12 Functions of Commercial Banks

Very short answer questions

Question 1.
Write a brief note on EFT in India?
Answer:
In 1995 the-RBI has introduced an electronic clearing system for the transfer of funds in Mumbai, Delhi, Calcutta, and Chennai. A Floppy input clearing system was introduced in the banking industry in which the data are considered for settlement. In 1997 RBI has introduced an electronic clearing service for payment of electricity bills in Mumbai.

Question 2.
Meaning of Bank Rate.
Answer:
Bank Rate is the rate at which bills are discounted and rediscounted by the banks with the central bank during inflation the bank rate is increased and during deflation bank rate is decreased.

TN Board 11th Commerce Important Questions Chapter 12 Functions of Commercial Banks

Question 3.
Meaning of land development banks and their functions.
Answer:
Land development banks were earlier called land mortgage banks. Its structure is not uniform in all the states. In some states it is federal and some state is mixed.
Functions: It gives long-term loans to agriculturalists for making improvements on the land repaying old debt etc. It gives loans to free the mortgaged land and to buy new land.

Question 4.
What are the limitations of the MICR cheque?
Answer:
MICR cheques are expensive as it requires superior quality paper and special ink. Customers have to be educated in handling MICR Cheques Counterfoils are not permitted in the Cheque book, which may cause inconvenience to customers.

Question 5.
Give examples of Commercial banks?
Answer:
Canara Bank, Punjab National bank, Lakshmi villas bank, etc.

Question 6.
Give the meaning of internet banking.
Answer:
Banking through the internet is called internet banking. It can also be called electronic banking many have their own website that offers banking facilities such as account inquiry requests for statements and checkbooks etc., on the net.

TN Board 11th Commerce Important Questions Chapter 12 Functions of Commercial Banks

Question 7.
What do you mean by Indigenous banks?
Answer:
Indigenous bankers are those who do not come under the control of RBI.

Short answer questions

Question 1.
List the main types of banks.
Answer:
A. On the basis of function:

  1. Commercial banks.
  2. Industrial banks.
  3. Regional Rural Banks.
  4. Exchange banks.
  5. Central bank.

B. On the basis of ownership:

  1. Public sector banks.
  2. Private sector banks.
  3. Co-operative banks.

C. On the basis of schedules of RBI:

  1. Schedules banks.
  2. Non-Schedules banks.

TN Board 11th Commerce Important Questions Chapter 12 Functions of Commercial Banks

Question 2.
Explain the advantages of ATMs to customers and bankers.
Answer:

  1. It gives round-the-clock service and thereby banking time is saved.
  2. Service is quick and efficient and free from errors.
  3. On networking, the cardholder can access cash and services at any place.
  4. Funds can be transferred easily to any branch of the banks.
  5. Withdrawals can be made at any time and hence it can be called an anywhere banking facility.

Question 3.
List the various types of deposits accepted by the bank.
Answer:
Bank accepts various types of deposits. There are four types of deposits.

  1. Fixed or Time Deposit Account.
  2. Savings Bank Deposits Account.
  3. Current Deposits Account.
  4. Recurring deposits Accounts deposit a fixed sum of money.

Question 4.
What is a cheque?
Answer:
A cheque is an easy and safe method of making payments to or withdrawing money from a bank. According to the Negotiable Instruments Act 1881, “a cheque is a bill of exchange drawn on a specified banker payable on demand”.

Question 5.
What is a MICR cheque?
Answer:
A MICR cheque is a modem form of a cheque, which minimizes the human efforts and processing time (Magnetic Ink Character Recognition). It is a system that uses a special machine that types characters on the documents using ink containing iron oxide.

TN Board 11th Commerce Important Questions Chapter 12 Functions of Commercial Banks

For Own Thinking

In all ATM Centers, there are one or two machines, sometimes it may be four or five. All ATM machines have some amount of money inside the box. In this way lot of currency notes are locked day by day. Think about the alternate way for avoiding this locking of currency notes.
The debate about the security problem in the E-Banking system of services.
Answer:
Bank visit: I want to go to the bank of India. First I asked regarding how to open a bank account. How to operate a bank account. What is the minimum balance? How to take money from the bank. How to use ATM cards. Operate an E-Banking system. How will you get a credit card?
When you want a loan: We want to get a loan. First of all open a bank account. Operate bank account for at least one year correctly. Want to get a loan bank will check our creditworthiness, our monthly salary, or by way of getting monthly income. The eligibility to get a loan. To show all our ID proofs and address proofs, pan card, etc. Bank also wants to check our credit score. Then only get bank loans. Surety wants to give against the loan.

For Future teaming

Field visit – nearest – collect information about the rate of interest payable on Savings deposit, Fixed deposit, Current deposit, and Recurring deposit. Collect photocopies of the various cards used in our day-to-day life. Nowadays debit cards, credit cards, smart cards, and other cards are used for day-to-day purposes. In the future how many cards we may use for our purposes.
Answer:

  1. Commercial banks: Canara Bank, Punjab National Banks, Industrial banks.
  2. Industrial Banks: IDBI; Industrial Development Bank of India. ICICI: Industrial Credit and Investment Corporation of India.
  3. Co-operative banks: Central co-operative bank, Agricultural co-operative bank.
  4. Foreign bank: Standard charter bank. HSBC.

TN Board 11th Commerce Important Questions Chapter 12 Functions of Commercial Banks

Case Study

A person forgot his password or a Debit card, How to get a password? Give guidelines to him.
Answer:
Forget his password:
1st Step: The banker asked his customer for his registered phone number. Then from the bank, we can get a one-time password (OTP) through the registered phone number and get a password easily.
2nd step: The customer can get a new password from the bank manager. The manager will guide properly and help the customer to get a new password.
3rd Step: Using an ATM card and customer registered phone number he can get the password.

Multiple choice questions

1. Banks are necessary for the:
(a) farmers
(b) students
(c) children
(d) none of these
Answer:
(a) farmers

2. Banks that help for the development of trade and commerce are called:
(a) Commercial Bank
(b) Industrial Bank
(c) Regional rural bank
(d) Exchange bank
Answer:
(a) Commercial Bank

3. ………… banks are established in rural areas.
(a) Commercial Bank
(b) Industrial Bank
(c) Regional rural bank
(d) Exchange bank
Answer:
(c) Regional rural bank

TN Board 11th Commerce Important Questions Chapter 12 Functions of Commercial Banks

4. Marvadis, pawnbrokers are examples of:
(a) Central bank
(b) Commercial bank
(c) Indigenous bankers
(d) None of these
Answer:
(c) Indigenous bankers

5. ………. banks play an important role in the economic development of a country.
(a) Central bank
(b) Commercial bank
(c) Indigenous bank
(d) Exchange bank
Answer:
(b) Commercial bank

6. State Co-operative bank is also called as:
(a) UTI
(b) Apex bank
(c) ICICI
(d) HDFC
Answer:
(b) Apex bank

7. The primary functions of a commercial bank are of types.
(a) 1
(b) 1
(c) 4
(d) 5
Answer:
(b) 1

8. NEFT this was launched by the RBI in:
(a) 2005
(b) 2006
(c) 2008
(d) 2010
Answer:
(a) 2005

9. Real-time gross settlement systems it was launched by RBI:
(a) 2013
(b) 2015
(c) 2016
(d) 2006
Answer:
(a) 2013

TN Board 11th Commerce Important Questions Chapter 12 Functions of Commercial Banks

10. Electronic clearing services was launched by the RBI in:
(a) 1996
(b) 1998
(c) 1999
(d) 1995
Answer:
(d) 1995