29 - Bank Deposits

Banking Awareness Multiple Choice Questions (MCQs) and Answers with explanation on Bank Deposits for IBPS Bank PO, IBPS Bank Clerical, RRB PO and Clerical, SBI PO and SBI Clerical, IBPS Recruitments, RBI Grade B and RBI Bank

1. Which among the following is considered to be the most liquid asset?

[A] Gold
[B] Money
[C] Land
[D] Treasury bonds

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2. What is the currency deposit ratio (CDR)?

[A] ratio of money held by the public in currency to that of money held in bank deposits
[B] ratio of money held by public in bank deposits to that of money held by public in currency
[C] ratio of money held in demand drafts to that of money held in treasury bonds
[D] none of the above

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3. What is the reserve deposit ration (RDR)?

[A] the proportion of money RBI lends to commercial banks
[B] the proportion of total deposits commercial banks keep as reserves
[C] the total proportion of money that commercial banks lend to the customers
[D] none of the above

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4. Consider the following statements and identify the right ones. i. Deposits are created by banks and financial institutions. Ii. They constitute the major source of money supply in India.

[A] I only
[B] II only
[C] Both
[D] none

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5. Which of the following about money supply measure adopted in 1977 is correct?

[A] M2= M1 +demand deposits with post offices
[B] M3= M1 +term deposits with banks
[C] M4=M3+total deposits with post offices
[D] All the above

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6. Which of the following about money supply measures adopted in 1998 is wrong?

[A] M1= currency with public +demand deposits with banking system + other deposits with RBI
[B] M2= M1 + savings deposits of post office savings bank
[C] M3= M1+ time deposits with banking system
[D] None of the above

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7. Which type of deposits gives highest rate of interest?

[A] Current deposit
[B] Fixed deposit
[C] Recurring deposit
[D] None of the above

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8. How many type of Deposit accounts are offered by Bank?

[A] 2
[B] 3
[C] 4
[D] 5

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9. Which of the following is the placement of funds in an account with a bank?

[A] Bank deposit
[B] Foreign currency
[C] Loan
[D] All of the above

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10. What is the most common type of time deposit?

[A] Salary account
[B] Current Account
[C] FD
[D] Loan

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