TRB PG Assistant - Types of accounts - savings, recurring, fixed deposit, CASA, Pradhan Mantri Jan Dhan Yojana, KYC norms Question Bank with Options

1. Which of the following is a crucial element of KYC verification for an individual customer?

A) Customer's blood group

B) Customer's PAN card number (for certain transactions)

C) Customer's favorite movie

D) Customer's astrological sign

2. The Pradhan Mantri Jan Dhan Yojana aims to provide:

A) Loans for higher education

B) Access to banking and financial services for all citizens

C) Government grants for starting businesses

D) Subsidized housing schemes

3. Which account is primarily used for business purposes and facilitates a high volume of transactions without interest earnings?

A) Savings Account

B) Fixed Deposit

C) Recurring Deposit

D) Current Account

4. What is the purpose of the 'Know Your Customer' (KYC) directive from regulatory bodies?

A) To simplify account opening procedures

B) To gather detailed customer information for risk assessment and regulatory compliance

C) To reduce the number of banking services offered

D) To offer personalized marketing campaigns

5. The 'Customer Identification Program' (CIP) is a part of which banking regulation?

A) Basel III

B) KYC Norms

C) Monetary Policy

D) Priority Sector Lending

6. Which type of deposit is characterized by a fixed tenure and usually offers a higher interest rate than savings accounts?

A) Current Account

B) Recurring Deposit

C) Fixed Deposit

D) Demand Deposit

7. If a depositor fails to pay an installment on a Recurring Deposit, the account is typically:

A) Closed immediately without any interest.

B) Allowed to continue with a higher interest rate.

C) Treated as a savings account.

D) Considered closed, and interest is calculated on the deposited amount for the period it was held.

8. What is the primary difference in withdrawal flexibility between a Savings Account and a Fixed Deposit?

A) Savings accounts have withdrawal limits, while fixed deposits do not.

B) Fixed deposits allow unlimited withdrawals, while savings accounts have restrictions.

C) Savings accounts offer high liquidity, while fixed deposits restrict access to funds.

D) Both have similar withdrawal flexibility.

9. Which of the following is a mandatory KYC requirement for opening a bank account in India?

A) Providing a photograph of your pet

B) Submitting proof of identity and address

C) Giving details of your social media profiles

D) Disclosing your monthly expenses

10. The 'Life Cover' benefit under PMJDY is provided by:

A) The bank itself

B) The Reserve Bank of India

C) The Insurance Regulatory and Development Authority (IRDAI)

D) The Deposit Insurance and Credit Guarantee Corporation (DICGC)

11. A high CASA ratio is generally considered positive for a bank because:

A) It indicates high levels of long-term borrowing.

B) It suggests a strong reliance on expensive market borrowings.

C) It implies a lower cost of funds and greater financial stability.

D) It means the bank has a large number of fixed deposits.

12. Which account is designed for individuals who want to save a fixed amount regularly over a period and earn compound interest?

A) Current Account

B) Fixed Deposit Account

C) Recurring Deposit Account

D) Savings Account

13. What is the consequence of withdrawing funds from a Fixed Deposit before its maturity date?

A) Interest is paid at a higher rate.

B) A penalty is usually imposed, and interest may be reduced.

C) The principal amount is increased.

D) No change in the interest rate.

14. A customer opens a savings account with a deposit of Rs. 10,000 and earns an annual interest of 4%. After one year, the total amount in the account (before any withdrawals) would be:

A) Rs. 10,400

B) Rs. 10,000

C) Rs. 11,000

D) Rs. 10,200

15. Which of the following is a primary objective of KYC regulations for banks?

A) To increase transaction fees

B) To ensure the customer is genuine and to understand their financial activities

C) To limit the types of financial products offered

D) To reduce the need for physical branches

16. Under PMJDY, the overdraft facility is typically available up to:

A) Rs. 5,000

B) Rs. 10,000

C) Rs. 2,000

D) Rs. 20,000

17. The term 'CASA Ratio' in banking refers to the ratio of:

A) Capital Adequacy to Asset Security

B) Customer Acquisition to Service Availability

C) Current Accounts and Savings Accounts deposits to total deposits

D) Credit Assessment to Sanctioned Amount

18. Which account requires the depositor to pay a fixed sum at regular intervals for a specified period?

A) Savings Account

B) Fixed Deposit Account

C) Current Account

D) Recurring Deposit Account

19. In a Fixed Deposit, the interest rate is typically:

A) Variable and linked to market conditions.

B) Fixed for the entire duration of the deposit.

C) Lower than savings account rates.

D) Paid out daily.

20. What is the minimum age requirement to open a standard savings account in India?

A) 16 years

B) 18 years

C) 10 years

D) 21 years

21. A customer needs a bank account that allows easy access to funds for daily business operations and does not earn interest. Which account is most suitable?

A) Savings Account

B) Fixed Deposit Account

C) Current Account

D) Recurring Deposit Account

22. Which of the following is a valid document for 'Proof of Address' in India for KYC?

A) Credit Card Statement

B) Electricity Bill

C) Voter ID Card

D) All of the above

23. The Pradhan Mantri Jan Dhan Yojana was launched with the primary objective of:

A) Promoting stock market investments

B) Providing access to financial services like banking, insurance, and pension

C) Offering high-interest loans

D) Encouraging foreign currency exchange

24. Banks prefer CASA deposits because they:

A) Require higher minimum balances.

B) Are less volatile and provide a stable funding base.

C) Are primarily used for long-term investments.

D) Carry higher interest costs for the bank.

25. In a Recurring Deposit, the installment amount is fixed, while the interest earned:

A) Is fixed for the entire tenure.

B) Increases with each installment.

C) Is calculated on the total amount deposited at maturity.

D) Compounded on the growing balance over time.

26. What is the main advantage of a Savings Account over a Fixed Deposit?

A) Higher interest rate

B) Greater liquidity and accessibility of funds

C) Guaranteed returns

D) No transaction limits

27. Which of the following is NOT a typical purpose of KYC norms?

A) Customer Due Diligence

B) Preventing financial crimes

C) Enhancing customer service

D) Complying with regulatory requirements

28. The 'Accidental Insurance Cover' up to a certain amount is a benefit associated with which account type under PMJDY?

A) Fixed Deposit

B) Savings Account

C) Current Account

D) Jan Dhan Account

29. CASA deposits are considered 'cheap funds' for banks because:

A) They are government-subsidized.

B) They generally carry lower interest rates compared to term deposits.

C) Banks do not need to maintain reserves against them.

D) They are mandatory for all account holders.

30. What is the primary objective of a Recurring Deposit (RD) account?

A) To park a large sum of money for a short period

B) To encourage disciplined saving of small amounts

C) To facilitate high-value business transactions

D) To earn interest on current account balances

31. A Fixed Deposit account is characterized by:

A) Flexibility in deposits and withdrawals

B) A fixed tenure and a pre-determined interest rate

C) No limit on the number of transactions

D) A fluctuating interest rate

32. Which document is typically required for address proof during KYC verification?

A) Birth Certificate

B) Driving License

C) School Leaving Certificate

D) Marriage Certificate

33. The 'overdraft facility' offered under PMJDY allows account holders to:

A) Withdraw more money than their balance for a limited period

B) Receive a higher interest rate on their savings

C) Invest in government bonds

D) Open multiple zero-balance accounts

34. What is the main difference between a Savings Account and a Current Account regarding interest?

A) Current accounts earn higher interest than savings accounts.

B) Savings accounts earn interest, while current accounts typically do not.

C) Both accounts earn interest at the same rate.

D) Interest is only applicable to fixed deposits, not savings or current accounts.

35. Which of the following is a key component of KYC (Know Your Customer) compliance?

A) Collecting customer's favorite color

B) Verifying the customer's identity and address

C) Assessing the customer's investment risk appetite

D) Providing loan sanctions

36. The 'RuPay' debit card is often provided to account holders under which scheme?

A) Sukanya Samriddhi Yojana

B) Pradhan Mantri Jan Dhan Yojana

C) National Pension System

D) Public Provident Fund

37. A customer wants to deposit a small, fixed amount every month for a specific period to build a corpus. Which account should they choose?

A) Savings Account

B) Fixed Deposit Account

C) Recurring Deposit Account

D) Current Account

38. What is the primary purpose of a 'term deposit' in banking?

A) To facilitate daily transactions

B) To earn a fixed interest rate for a specified duration

C) To provide an overdraft facility

D) To offer a cheque book facility

39. Which of the following is generally NOT considered a valid KYC document for identity proof in India?

A) Passport

B) Aadhaar Card

C) PAN Card

D) Library Card

40. The 'Zero Balance' facility is a significant aspect of which government financial inclusion scheme?

A) Sukanya Samriddhi Yojana

B) Pradhan Mantri Jan Dhan Yojana

C) Atal Pension Yojana

D) Kisan Vikas Patra

41. Which account type is most suitable for businesses that have frequent and large transactions?

A) Savings Account

B) Recurring Deposit Account

C) Current Account

D) Fixed Deposit Account

42. What is a disadvantage of a Fixed Deposit account for a customer?

A) Lower risk compared to savings accounts

B) Premature withdrawal usually incurs a penalty

C) Guaranteed returns

D) Higher liquidity

43. In a Savings Account, interest is typically calculated on:

A) The highest balance during the month

B) The lowest balance during the month

C) The daily product of the balance

D) A fixed annual amount regardless of balance

44. KYC norms in banking primarily aim to:

A) Increase the number of bank accounts

B) Prevent money laundering and terrorist financing

C) Offer higher interest rates to customers

D) Reduce the number of bank branches

45. Which of the following is a key feature of the Pradhan Mantri Jan Dhan Yojana (PMJDY)?

A) High interest rates on deposits

B) Providing insurance cover and overdraft facility

C) Exclusive access to stock market investments

D) Mandatory investment in mutual funds

46. What does 'CASA' stand for in the banking sector?

A) Customer Acquisition and Service Agreement

B) Current Accounts and Savings Accounts

C) Capital Assets and Secured Advances

D) Customer Asset and Service Allocation

47. A Recurring Deposit (RD) account is best suited for individuals who wish to:

A) Invest a lump sum for a long term

B) Save a fixed amount regularly over a period

C) Maintain a high transaction volume

D) Earn interest on their daily balance

48. What is the primary characteristic of a Fixed Deposit (FD) account?

A) Unlimited withdrawals

B) Variable interest rate

C) Funds are locked for a specific period

D) High transaction frequency allowed

49. Which type of bank account allows customers to deposit money and withdraw it freely without any restrictions on the number of transactions?

A) Fixed Deposit Account

B) Recurring Deposit Account

C) Savings Account

D) Current Account

Types of accounts - savings, recurring, fixed deposit, CASA, Pradhan Mantri Jan Dhan Yojana, KYC norms - Question Bank