MCQ on Banking System in India
Test your knowledge with these MCQ on banking system , designed to assess your understanding of key banking principles and practices.
What information is typically found at the bottom of a bank cheque?
A) Account holder’s name
B) Branch code and account type
C) Payee’s name
D) Cheque number
Answer: B) Branch code and account type
What is an “order cheque”?
A) A cheque with a payee’s name written on it
B) A cheque with two parallel lines drawn across it
C) A cheque with the word “bearer” struck out
D) A cheque without any payee information
Answer: A) A cheque with a payee’s name written on it
How can you make a cheque into an “order cheque”?
A) Crossing it
B) Adding a payee’s name
C) Striking out the word “bearer”
D) Drawing a line across it
Answer: C) Striking out the word “bearer”
What does it mean to “cross” a cheque?
A) Add a watermark
B) Draw two parallel lines across it
C) Add a signature
D) Make it payable to cash
Answer: B) Draw two parallel lines across it
What is the primary purpose of crossing a cheque?
A) To make it difficult to read
B) To make it more attractive
C) To make it more secure
D) To void the cheque
Answer: C) To make it more secure
How are payments made against crossed cheques?
A) Cash payment at the bank
B) Direct transfer to the payee’s account
C) Payment through a mobile app
D) Payment by check to the payee
Answer: B) Direct transfer to the payee’s account
What is a bank passbook used for?
A) Recording personal expenses
B) Keeping track of social events
C) Recording banking transactions
D) Writing checks
Answer: C) Recording banking transactions
What happens when a cheque “bounces”?
A) The bank issues a new cheque
B) The account holder receives a warning
C) The cheque is returned unpaid
D) The payee is required to re-deposit it
Answer: C) The cheque is returned unpaid