Advertisements
Chapters
1: Business Environment
UNIT 2 : Financing
2: Capital - Fixed and Working
3: Sources of Financial for a Join stock Company
▶ 4: Banking - Latest Trends
UNIT 3 : Management
5: Management - Meaning, Nature and Importance
6: Principles of Management
7: Functions of Management and Coordination
8: Planning
9: Organising
10: Staffing
11: Directing
12: Controlling
UNIT 4 : Marketing
13: Marketing - Concept and functions
14: Marketing Mix
15: Consumer Protection
![C. B. Gupta solutions for Commerce Volume 2 [English] Class 12 ISC chapter 4 - Banking - Latest Trends - Shaalaa.com](/images/commerce-volume-2-english-class-12-isc_6:2f5674d0d22e4bb38cf38d3d80047526.jpg "C. B. Gupta solutions for Commerce Volume 2 [English] Class 12 ISC chapter 4 - Banking - Latest Trends")
Advertisements
Solutions for Chapter 4: Banking - Latest Trends
Below listed, you can find solutions for Chapter 4 of CISCE C. B. Gupta for Commerce Volume 2 [English] Class 12 ISC.
C. B. Gupta solutions for Commerce Volume 2 [English] Class 12 ISC 4 Banking - Latest Trends EXERCISES [Pages 100 - 110]
I. OBJECTIVE QUESTIONS MULTIPLE CHOICE QUESTIONS
What is the maximum limit per transaction in NEFT?
₹ 1,00,000
₹ 50,000
₹ 1,50,000
No such limit
Minimum how much amount can be transferred through RTGS?
Any amount
50,000
2 lakh
5 lakh
3,00,000
2,50,000
NEFT works on the principle of which of the following?
Gross Batch Settlement
Deferred Net Settlement
Priority Net Settlement
Domain Net Settlement
Which of the following is not true about National Electronic Funds Transfer (NEFT) system?
There is no limit on transactions through NEFT
NEFT operated in hourly batches
NEFT is a payment system which facilitates one-to-one funds transfer
Only bank branches which are NEFT enabled can be a part of the NEFT funds transfer network
Which of the following is NOT a benefit of E-Banking?
E-Banking provides 365 days of 24 × 7 banking facilities to its customers.
Customers can make some of the permitted transactions from the office or house or while travelling via mobile telephone.
It inculcates a sense of financial discipline by recording each and every transaction.
Being technology intensive, it results in less human interface and thus requires less manpower, which contributes to increasing underemployment in the banking sector in India.
IMPS is managed by ______.
RBI
NPCI
SBI and NPCI
RBI and NPCI
Match the Name of the Banking Service in Column I with its definition in Column II:
| Column I (Name of Banking Service) | Column II (Definition) | ||
| A. | Bank draft | i. | It allows the account holder to withdraw more than the balance. |
| B. | Banker's Cheque (Pay Order) | ii. | An order by one branch of bank to another in a different city to pay a specified sum to a beneficiary. |
| C. | Bank Overdraft | iii. | An order by one branch of a bank to another in the same city to pay a specified sum to a beneficiary. |
| D. | Cash Credit | iv. | It is an arrangement under which a customer a bank or financial institution is allowed an advance up to certain limit against limit credit granted by the bank. |
Choose from the following options:
A-(iv); B-(i); C-(iii); D-(ii)
A-(ii); B-(i); C-(iv); D-(iii)
A-(ii); B- (iii); C-(iv); D-(i)
A-(ii); B-(iii); C-(i); D-(iv)
Paying through which of the following instruments does not reduce the bank balance at the time of transaction?
Debit Card
Credit Card
Internet Banking
Mobile Banking
A regular short-term loan subject to a limit based on credit worthiness given by a bank to a business, normally to meet working capital requirements, is known as ______.
Bank overdraft
Cash Credit
Bank draft
Bank Loan
MMID is used for fund transfer in IMPS. What does the First M and Second M in MMID stands for?
Mobile, Message
Mobile, Money
Multi, Money
Money, Mobile
Which of the following statement is correct about RTGS and NEFT?
- RTGS and NEFT both are ways of Electronic Funds Transfer.
- NEFT is suitable for high value transactions and RTGS is suitable for low value transactions.
- NEFT operates on hourly batches and RTGS operates on real time basis.
- NEFT and RTGS both facilitate intra and inter-bank transfer of funds within and across the city.
Choose the correct answer:
(i), (iii) and (iv) are correct
(i) and (ii) are correct
(ii) and (iii) are correct
(i) and (iv) are correct
What does I stand for in IMPS?
Instant
Inter
Interface
Immediate
Which of the following statements is true about NEFT (National Electronic Funds Transfer)?
Under this Scheme, individuals, firms and corporates can electronically transfer funds from any bank branch to any individual, firm or corporate having an account with any other bank branch in the country participating in the Scheme.
The upper limit for transfer of funds in this scheme is ₹ 1,00,000.
Funds are transferred instantly when an application is made to this effect by the account holder.
Funds are transferred 24 hours each day.
A company has to make immediate payment of ₹ 10 lakhs to a party for receiving a consignment of raw material to fulfil an urgent order. Which of the following is the quickest way of remitting this money to the bank account of the concerned party?
Bank Draft
Banker's Cheque
NEFT
RTGS
What is an electronic funds transfer?
A way of electronically submitting payment from your account to another account.
Writing a check and sending in the mail.
Handing someone cash for goods or services.
All of the answers are correct.
MMID is a ______ code.
9 digit
11 digit
7 digit
5 digit
CBS stands for ______.
Channel Banking Solution
Central Banking System
Challenging Banking System
Core Banking Solution
Which of the following is not a core feature of CBS (Core/Centralised Banking Solution)?
Withdrawal
Cheque processing
Document review
Payment transfer
A card that is used repeatedly to borrow money or buy products and services on credit is called as ______.
Credit limit
Credit analysis
Credit rating
Credit card
In which of the following cards, the amount of dues from the card holder for each and every transaction debited to card holder account as soon as each transaction is notified to the issuer?
Debit cards
Credit cards
Metro cards
Member cards
In India, businesses can do bank transactions without going to bank ______.
because managers have become very busy and do not have time.
because a successful business is given special benefits by a bank.
because businesses are using e-banking facility.
because businesses don’t get any interest on current account.
Jay owns an event management company in Jaisalmer which provides customised facilities to meet the needs of the customers and ensures a memorable event for them. He has a staff of 50 persons. Earlier the salary of the staff members was paid through cheques. The employees had to deposit their cheque in the bank and had to wait for two to three working days for it to be cleared. But now the salary reaches their account on the same day itself with the help of a particular banking service. Identify the method adopted by Jay.
Overdraft Facility
Cash Credit
Electronic Fund Transfer
E banking
Which of the following is not a form of e-banking services?
Cheque
ATM
POS
EFT
In case one does not have a bank account, the maximum amount that can be transferred through NEFT system is ______.
₹ 50,000
₹ 2,00,000
₹ 49,999
No such limit
______ is an online image-based clearing system where cheque images are sent electronically.
CBS (Centralised Banking Solution)
CBS (Cheque Banking System)
ETS (Electronic Truncation System)
CTS (Cheque Truncation System)
Phone Pay, Google Pay, or Paytm are examples of ______.
Prepaid cards
NEFT
Digital wallets
RTGS
The Unified Payments Interface, commonly referred to as UPI, was developed by ______.
Reserve Bank of India (RBI)
National Payments Corporation of India (NPCI)
Ministry of Commerce
Bharat Bill Payment System (BBPS)
ASSERTION-REASON QUESTIONS In the questions given below, there are two statements marked Assertion (A) and Reason (R). Read the statements and choose the correct option:
Assertion (A): Bharat issues a cheque of ₹ 2,00,000 to his creditor, Swadesh, whereas his available balance in Current Account is only ₹ 1,00,000.
Reason (R): The customer who maintains a current account with the bank takes permission from the bank to withdraw more money than deposited in his account. This facility is called as Bank Overdraft.
Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A).
Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of Assertion (A).
Assertion (A) is True but Reason (R) is False.
Assertion (A) is False but Reason (R) is True.
Assertion (A): The customer can get information about the balance in his account and latest transactions on the telephone.
Reason (R): Under Tele banking, the account of a customer is linked by telephone to the bank’s computer.
Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A).
Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of Assertion (A).
Assertion (A) is True but Reason (R) is False.
Assertion (A) is False but Reason (R) is True.
Assertion (A): RTGS transactions are processed immediately.
Reason (R): RTGS transactions can only be performed if the amount to be transferred is equal to or more than ₹ 2 lakh.
Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A).
Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of Assertion (A).
Assertion (A) is True but Reason (R) is False.
Assertion (A) is False but Reason (R) is True.
Assertion (A): UPI is a real-time payment system developed by the National Payments Corporation of India (NPCI) that facilitates instant fund transfers between bank accounts using smartphones.
Reason (R): Prepaid cards, such as gift cards or reloadable cards, can be used for online purchases.
Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A).
Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of Assertion (A).
Assertion (A) is True, but Reason (R) is False.
Assertion (A) is False, but Reason (R) is True.
FILL IN THE BLANKS
RTGS transfer is ______ and ______.
NEFT transactions take place in ______.
Any person having a good reputation can obtain a ______ from a bank.
By opening a bank account in one branch, the customer can operate the same account in all the ______ branches of the same bank anywhere across the country.
Commercial Banks are joint stock banks which receive deposits from the ______ and ______.
Depending on the bank, the maximum UPI daily transfer limit ranges from ______ to ______.
TRUE OR FALSE
Immediate Payment Service (IMPS) is an instant money transfer service facilitated by NPCI.
TRUE OR FALSE
Electronic banking is part of non-virtual banking.
TRUE OR FALSE
A person can get a credit card by depositing money in the bank.
TRUE OR FALSE
A bank draft is a type of cheque drawn by a bank either on its own branch or on another bank in favour of a third party.
TRUE OR FALSE
Post offices serves as savings banks for the benefit of entrepreneurs.
True or False:
Customers can use the RTGS service from 8:00 a.m. to 11:00 p.m. on Saturdays and Sundays and from 10:00 a.m. to 4:00 p.m. on weekdays.
True or False:
NEFT service is available on all days on a 24 × 7 × 365 basis. Currently, NEFT runs in batches every half hour throughout the day.
II. SUBJECTIVE QUESTIONS Short Answer Type Questions
Write a short note on ‘RTGS’.
What is ‘National Electronic Fund Transfer’?
What is meant by E-banking?
What is ‘National Electronic Fund Transfer’?
What are online payments?
Give a few examples of digital wallets.
Long Answer Type Questions
State any three advantages of online payments.
Distinguish between NEFT and RTGS.
Compare and contrast the features of RTGS and NEFT.
CASE/PARAGRAPH BASED QUESTIONS
| E-banking is a blanket term used to indicate a process through which a customer is allowed to conduct personal or commercial banking transactions using electronic and telecommunication networks. You know that in the digital era, money is defined as aselectronic pulses at the speed of light, thanks to the electronic funds transfer technology of e-commerce. Even the government departments and regulatory authorities are increasingly moving in this direction whereby they allow electronic filing of returns and reports. |
- Identify and briefly explain any three benefits of e-banking highlighted in the above paragraph. (3)
- Identify the following in e-banking transactions: (2)
- A card that allows the holder to spend money without any balance in his deposit account.
- A machine used to withdraw or deposit money at our convenience.
- Name any two forms of electronic banking. (1)
- Enumerate any two facilities provided by CBS (Centralised Banking Solution). (2)
| Prem is running a business of manufacturing invertors in Delhi. He is involved in daily dealings of cash through his current account in Axis Bank. Due to unavailability of funds and an urgent need to pay to his creditors in the beginning of the new financial year, he approached the bank to withdraw more than the balance available in his account, using the card facility provided to him by the bank owing to his creditworthiness. Next month, he received an order for the supply of 20 inverters from Better Electronics in Jaipur. As the amount of payment is more than rupees 2 lakhs, Better Electronics decided to transfer the funds instantly and electronically from their bank account. Today, he is overjoyed because his daughter got selected at a reputed engineering college. He went to his bank to get a financial instrument in the form of a cheque, which will be used to make a guaranteed payment of admission fees to his daughter’s college. |
- Identify the service of bank which was used by Better Electronics. (1)
- Differentiate between the above identified service and NEFT on any three bases. (3)
- Identify the form of e-banking facility used by Prem in the beginning of the year along with any two features. (2)
- Which type financial instrument did Prem obtain from his bank to make guaranteed payment of admission fees to his daughter’s college? Can this instrument be obtained online? If yes, how will the bank charge the amount to the customer? (2)
III. ADDITIONAL SOLVED QUESTIONS
What is a Bank Draft?
What is a Banker’s Cheque?
Write a short note on ‘RTGS’.
What is ‘National Electronic Fund Transfer’?
Enumerate various types of E-banking facilities.
What is a commercial bank?
What are the two main functions of a commercial bank?
Describe the advantages of opening a bank account.
Explain the different types of banks.
What is IMPS?
What are Mobile wallets?
How much is the minimum and maximum amount that can be transferred through NEFT?
Name various types of online payments.
IV. PRACTICE PREVIOUS YEAR QUESTIONS
Give two agency functions of commercial banks.
What is the Demand Draft?
What is a debit card?
Expand the following term:
RTGS
Expand the following term:
NEFT
Mention any two advantages of e-Banking to the customers.
List any four features of NEFT.
Explain the meaning of SMS alert.
Explain the meaning of e-banking. State any three features of e-banking.
Explain the following:
SMS alerts
Explain the following:
ATM
Write a short note on ‘RTGS’.
Give any two features of RTGS.
What are public deposits?
Briefly explain any two merits of Public Deposits.
With reference to Credit Card, which one of the following statements is INCORRECT?
The cardholder makes payments after using the card.
Some incentives/gifts are made available to the cardholders.
The cardholder has to deposit some money in advance with the issuer bank.
In certain cases, the cardholder has to pay an annual fee for the credit card.
Rita wants to transfer their first salary to her mother's bank account through RTGS. What is the minimum amount that she can transfer through RTGS?
₹50,000
₹2,00,000
₹1,00,000
₹20,000
State any two features of a Credit Card.
What is mobile banking? State any two banking services available on mobile phones.
Distinguish between NEFT and RTGS.
Expand UPI and briefly discuss its meaning.
State any three differences between a debit card and a credit card.
Mention any two advantages of e-Banking to the customers.
What is meant by NEFT? Give any two features of NEFT.
Write a short note on “Core Banking Solution”.
Solutions for 4: Banking - Latest Trends
C. B. Gupta solutions for Commerce Volume 2 [English] Class 12 ISC chapter 4 - Banking - Latest Trends
Shaalaa.com has the CISCE Mathematics Commerce Volume 2 [English] Class 12 ISC CISCE solutions in a manner that help students grasp basic concepts better and faster. The detailed, step-by-step solutions will help you understand the concepts better and clarify any confusion. C. B. Gupta solutions for Mathematics Commerce Volume 2 [English] Class 12 ISC CISCE 4 (Banking - Latest Trends) include all questions with answers and detailed explanations. This will clear students' doubts about questions and improve their application skills while preparing for board exams.
Further, we at Shaalaa.com provide such solutions so students can prepare for written exams. C. B. Gupta textbook solutions can be a core help for self-study and provide excellent self-help guidance for students.
Concepts covered in Commerce Volume 2 [English] Class 12 ISC chapter 4 Banking - Latest Trends are Concept of Online Services, Transfer of Funds Through Real Time Gross Settlement (RTGS), Banking Services with Particular Reference - National Electronic Fund Transfer, Issue of Demand Drafts Online, Advantages and Disadvantages of Online Payments, E-banking, Advantages and Disadvantages of Mobile Banking, Debit Cards Vs Credit Cards, ATM (Automated Teller Machine), Differences Between Debit Card and Credit Card, Banking, Overview of Banking - Latest Trends.
Using C. B. Gupta Commerce Volume 2 [English] Class 12 ISC solutions Banking - Latest Trends exercise by students is an easy way to prepare for the exams, as they involve solutions arranged chapter-wise and also page-wise. The questions involved in C. B. Gupta Solutions are essential questions that can be asked in the final exam. Maximum CISCE Commerce Volume 2 [English] Class 12 ISC students prefer C. B. Gupta Textbook Solutions to score more in exams.
Get the free view of Chapter 4, Banking - Latest Trends Commerce Volume 2 [English] Class 12 ISC additional questions for Mathematics Commerce Volume 2 [English] Class 12 ISC CISCE, and you can use Shaalaa.com to keep it handy for your exam preparation.
