CLASS 10TH SOCIAL SCIENCE (BUSINESS STUDIES ) UNIT – 1 BANKING TRANSACTIONS NOTES 2021 -22

BUSINESS STUDIES

UNIT – 1 BANKING TRANSACTIONS

I. Fill in the blanks with suitable answers:

1. The word „Bank‟ has been derived from the French word __________ (“Banque”)

2. The Banker‟s Bank is ______________ (The Reserve Bank of India (RBI)

3. An example for Nationalised bank is ______________.(SBI)

4. The National saving certificates are issued by ______________ (Post Offices)

5. The type of account where any number of transactions can be made in a day with Bank is ______________(Savings Bank Account)

6. The deposits for a fixed term can be deposited in ______________ account. (Term or Fixed Deposit Account)

II. Answer the following questions in one sentence each:

1. How the term bank is derived?

 The term bank is derived from Italian word “Banco” or from a French word “Banque”, both mean a “Bench” or money exchange table.

2. What is a Bank?

 A banking company may be defined as a company which transacts the business with finance

3.what is Banking?

 The services of banks are called Banking

4. What is bank transaction?

 Any sort of activity involving in money or exchange of money in an account is viewed as bank transaction.

5. Which Bank is known as Mother of Banks or Bankers Bank or Central Bank of India?

 The Reserve Bank of India (RBI) is known as Mother of Banks or Bankers Bank or Central Bank of India.

6. Why The Reserve Bank of India (RBI) is known as Mother of Banks or Bankers Bank or Central Bank of India?

 All the banking transactions in India are controlled by The Reserve Bank of India (RBI).So it is known as Mother of Banks or Bankers Bank or Central Bank of India.

7. Which is the the recent development in banking industry?

 The recent development in banking industry is the inclusion of Post Offices into its fold.

8. Which type of account is generally opened in banks by salaried persons or by the persons who have a fixed regular income?

 Savings Bank Account

9. In which type of bank accounts there is no restriction on the number and amount of deposits?

 Savings Bank Account

10. Which type of bank account is opened by businessmen who have a large number of regular transactions with the Bank?

 Current Account

11. In which type of bank accounts Generally banks do not give any interest on these deposits but collect service charges or bank charges on such account?

 Current Account

12. Which type of bank accounts are generally opened for a purpose to be saved for a future date?

 Recurring Deposit Account

13. Which type of bank accounts are used for the purposes of Wedding expenses of children to buy costly items like land, car etc?

 Recurring Deposit Account

14. In which type of bank accounts the Deposit amount cannot be withdrawn before the expiry of the term?

 Term or Fixed Deposit Account

III. Answer the following questions :

1.List out the characteristics relating to bank transactions.

 Dealing with Money

 ndividual/Firm/Company

 Acceptance of Deposits

 Lending Loans

 Payment and Withdrawal

 Agency and Utility Services

 Profit and Service Orientation

 Ever Increasing Functions

Connecting Link

 Banking Business

 Name Identity

2. What are the functions of a bank? Accepting deposits from public and others.

 Lending money to public (Loans) and other institutions.

 Transferring money from one place to another (Remittances)

 Collecting money on cheques, drafts and bills.

 Discounting of bills.

 Hiring safe deposit lockers.

 Conducting foreign exchange transactions.

 Keeping valuables in safe custody.

 Issuing letters of credit and guarantee.

 Conducting government transactions (State & Central

3. Explain the relationship between the banker and its customers.

1. General relationship : • Primary Relationship • Subsidiary Relationship

• Agent and Principal Relationship.

2. Special relationship • Obligation to honour cheques. • Obligation to maintain secrecy of accounts.

4. What are the Services Offered by Banks ?

 Debit Card and Credit Cards

 Safe Deposit Lockers

 Personal Loans

 Trust Services

 Home and Vehicle Loans

 Signature Guarantees

 Mutual Funds

 E – Banking

5. What are the services rendered by the Post office?

 Issue of National Savings Certificate

 KissanVikasPatra

 Monthly Recurring deposits

 Postal Life Insurance

 Pension payment

 Money transfer

6. What are the Types of Bank?

 Central Bank or Reserve Bank of India

 Commercial Banks

 Industrial Development Banks

 Land Development Banks

 Indigenous Banks (Money lenders or Sahukars)

 Co-operative Banks

7. Mention the Types of Bank Accounts

 Savings Bank Account

 Current Account

 Recurring Deposit Account

 Term or Fixed Deposit Account

8. “The number of saving bank account holders is increasing” - Give reasons.

 This type of account is generally opened in banks by salaried persons or by the persons who have a fixed regular income.

 This facility is also given to the students, senior citizens, pensioners etc., Savings accounts are opened to encourage people to save money and pool their savings.

 There is no restriction on the number and amount of deposits.

 The money can be withdrawn either by cheque or through a withdrawal slip available in the respective bank

9. Explain the Procedures to Open a Bank Account.

 Decide the type of account which you want to open

 Approach the bank of your choice and meet its office

 Fill up the Bank account form or proposal form

 Give reference for opening your Bank account

 Submit the Bank account form duly filled

 The officer will verify all the particulars submitted

 Initial Deposit

10. What are the advantages of opening a bank account?

 Bank account facilitates safe custody of money.

 Bank account helps in making payments.

 Bank account helps in collection of money

.  Bank account holders get advances and loans.

 Bank account helps in smooth financial transactions.

 Bank account holders can get safe deposit locker facility

11.Explain the differences between Savings Bank Account and Current Account Savings Bank Account

12 .Explain the differences between Recurring Deposit Account and Fixed Deposit Account

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