Banking Basics

J&K Bank PO · General & Financial Awareness · 20 practice questions with answers and explanations: 11 Easy, 9 Medium, 0 Hard.

Sample questions

Sample Easy question 1

What is a fixed deposit (FD)?

  1. A deposit of money for a fixed period at an agreed interest rate
  2. A cheque that cannot be cancelled
  3. A loan with a fixed interest rate
  4. A deposit that can be withdrawn at any time without limit
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Answer: A. The money stays with the bank until maturity, usually earning a higher rate than a savings account.

Sample Easy question 2

In banking, what is 'collateral'?

  1. A fee paid for opening an account
  2. A cheque signed by two people
  3. An asset pledged by a borrower as security for a loan
  4. The interest charged on a loan
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Answer: C. If the borrower defaults, the bank can recover its dues from the collateral.

Sample Easy question 3

Which of these is a feature of a current account?

  1. Meant mainly for businesses, with frequent transactions and usually no interest
  2. It has a lock-in period of five years
  3. It pays the highest interest of all accounts
  4. It is reserved for senior citizens
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Answer: A. Current accounts are used by traders and firms for day-to-day dealings.

Sample Medium question 4

How many characters are there in an IFSC code?

  1. 10
  2. 12
  3. 11
  4. 8
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Answer: C. An IFSC has 4 letters for the bank, a zero, and 6 characters for the branch.

Sample Medium question 5

A 'crossed cheque' can be paid:

  1. Without any bank
  2. To a minor
  3. Through a bank account, not in cash over the counter
  4. In cash across the counter
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Answer: C. The two parallel lines across a cheque mean the money must go into a bank account.

Sample Medium question 6

What is an overdraft facility?

  1. A fixed deposit with a lock-in period
  2. A deposit made by an employer
  3. A loan given for buying a house
  4. Permission to withdraw more than the account balance up to an agreed limit
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Answer: D. Interest is charged on the overdrawn amount.

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