Tag: banking and bank transactions

Questions Related to banking and bank transactions

______________ on the front and back side of the withdrawal slip are to be matched with the specimen available with the bank.

business organisation and correspondence banking and bank transactions nature, advantages and types of cheques bills of exchange and promissory note meaning and types of banks bills of exchange, promissory notes and hundis cheques

  1. Signatures

  2. Stamps

  3. Dates

  4. Amounts

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Correct Option: A
Explanation:

The signatures of withdrawal slips and specimens available with the bank should match compulsorily. The bank has a specimen of the signature that is the signature that you do while you are opening your bank account. Both should match so that the bank is sure that the right person is withdrawing money and the transaction is real.

There is no need to mention the name of any person on the withdrawal slip.

business organisation and correspondence banking and bank transactions nature, advantages and types of cheques bills of exchange and promissory note meaning and types of banks bills of exchange, promissory notes and hundis cheques

  1. True

  2. False

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Correct Option: B
Explanation:

False. The person withdrawing money from a withdrawal slip should write the name and other details so asked in the withdrawal slip. 

A withdrawal slip is a/an __________ document.

business organisation and correspondence banking and bank transactions nature, advantages and types of cheques bills of exchange and promissory note meaning and types of banks bills of exchange, promissory notes and hundis cheques

  1. Bearer

  2. Basic

  3. Stamped

  4. Rough

Show answer
Correct Option: A
Explanation:

A withdrawal slip is a bearer document. A withdrawal slip is paid to the person who presents the same having the right to do so just like a bearer document. Bearer means the person holding the document,

The signatures on the withdrawal slips and the specimen available with the bank should match compulsorily.

business organisation and correspondence banking and bank transactions nature, advantages and types of cheques bills of exchange and promissory note meaning and types of banks bills of exchange, promissory notes and hundis cheques

  1. True

  2. False

Show answer
Correct Option: A
Explanation:

True. The signatures of withdrawal slips and specimens available with the bank should match compulsorily. The bank has a specimen of the signature that is the signature that you do while you are opening your bank account. Both should match so that the bank is sure that the right person is withdrawing money and the transaction is real.

Following are the types of bank documents except for ___________.

business organisation and correspondence banking and bank transactions nature, advantages and types of cheques bills of exchange and promissory note meaning and types of banks bills of exchange, promissory notes and hundis cheques

  1. Withdrawal slip

  2. Pay in slip

  3. Land agreement

  4. Cheque

Show answer
Correct Option: C
Explanation:

The various documents of the bank are withdrawal slip to withdraw money, pay in slip to deposit money and a cheque to make payments and receive payments. In the given question all the documents are bank documents except a land agreement.

Amounts on the withdrawal slips are to be mentioned in figures as well as words.

business organisation and correspondence banking and bank transactions nature, advantages and types of cheques bills of exchange and promissory note meaning and types of banks bills of exchange, promissory notes and hundis cheques

  1. True

  2. False

Show answer
Correct Option: A
Explanation:

True. The amounts on the withdrawal slips are to be mentioned in figures as well as words. Both are to be mentioned to confirm the figures and to ensure that the banker is able to read properly. The cheque will be passed only when both the figures match. 

A document which is used in place of cheque for withdrawing amounts from bank is a/an ____________.

business organisation and correspondence banking and bank transactions nature, advantages and types of cheques bills of exchange and promissory note meaning and types of banks bills of exchange, promissory notes and hundis cheques

  1. Pay in slip

  2. Counterfoil

  3. Withdrawal slip

  4. Receipt

Show answer
Correct Option: C
Explanation:

A bearer cheque is just like a withdrawal slip. A bearer cheque is  payable over the counter. It is transferable by mere delivery. A withdrawal slip is a slip that to be filled by the customer to withdraw money from the bank account. In both the cases money can be received over the counter and amount can be withdrawn by the customer.

All the documents which are used by the account holders to facilitate transactions with bank are collectively known as __________ documents.

business organisation and correspondence banking and bank transactions nature, advantages and types of cheques bills of exchange and promissory note meaning and types of banks bills of exchange, promissory notes and hundis cheques

  1. Legal

  2. Bank

  3. Deposit

  4. Withdrawal

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Correct Option: B
Explanation:

All the documents which are used by the account holders to facilitate transactions with bank are collectively known as bank documents. Bank documents include pay in slip to deposit money, withdrawal slip to withdraw money and cheques to make and receive payments.

Whenever the amounts are collected or paid by the banks on some specific dates as per the standing instructions by the account holder, an intimation for the same is sent by the bank. Such intimation is known as __________. 

business organisation and correspondence banking and bank transactions nature, advantages and types of cheques bills of exchange and promissory note meaning and types of banks bills of exchange, promissory notes and hundis cheques

  1. Bank statement

  2. Bank advice

  3. Pass book

  4. None of these

Show answer
Correct Option: B
Explanation:

A bank advice is a notice that the bank gives to the customer when a transaction takes place. Whenever any amount is deducted or added in the bank account the bank intimates the customer about the same. 

A type of cheque where the holder is paid the amount, across the counter of bank.

business organisation and correspondence banking and bank transactions nature, advantages and types of cheques bills of exchange and promissory note meaning and types of banks bills of exchange, promissory notes and hundis cheques

  1. Cross cheque

  2. Bearer cheque

  3. Payee cheque

  4. None of the above

Show answer
Correct Option: B
Explanation:

An open cheque is the bearer cheque. It is payable over the counter on presentment by the payee to the paying banker. While a crossed cheque is not payable over the counter but shall be collected only through a banker.