10th Social Notes (Bank Transactions)

10^th Bank Transactions

I. Fill in the blanks with appropriate answers: 

1. The word ‘Bank’ has been derived from the French word Banque. 

 

2. Banker’s bank is Reserve Bank of India.

 

3. An example for a nationalized bank is State Bank of India.

 

4. The national Saving Certificates are issued by Postal Bank of India.

 

5. The type of account where any number of transactions can be made with Bank is account.

 

6. The deposits for a fixed term can be deposited in Term deposit account.

 

II. Answer the following:

1. What is a bank?

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

 

2. List out the characteristics relating to bank transactions.

Ans: 1. dealing with money                 

2. Acceptance of deposits

3. Lending loans                             

4. Payment and withdrawal

5. Agency and Utility services  

6. Profit and Service orientation

7. Connecting link                      

8. Name identity.

3. What are the functions of a bank?

Ans: The functions of the bank are:

a) Accepting deposits from the public.

b) Lending money to public and other institutions in the form of loans.

c) Transferring money from one place to another Remittance),

d) Collecting money by cheques, drafts and bills.

e) Discounting of bills.

f) Providing facility of safe deposit lockers for account holders.

g) Performing foreign exchange transactions.

h) Performing government transactions.

i) Issuing letters of credit and guarantee.

 

4. Explain the relation between the bank and customers.

Answer: The relationship can be classified into 2 categories, namely

1. General relationship:

a) Primary relationship: It is a debtor and creditor relationship, 

b) Subsidiary relationship- Trustee & beneficiary relationship.

c) Agent and Principal relationship.

 

2. Special relationship:

a) Obligation to honor the cheques.

b) Obligation to maintain secrecy of accounts.

 

 

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

Answer: The number of saving bank account holder is increasing because:

a) Banks are the safe custody for depositing money.

b) Depositing money in the banks is helpful to meet future requirements like children’s education and wedding expenses.

c) Banks give interest to the deposits.

d) Banks provide advances in loans for agriculture & business purposes.

 

 

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

Answer: The advantages of opening a bank account are:

a) Bank account facilitates safe custody of money.

b) Bank account helps in making payments

c) Bank account helps in collection of money

d) Bank account holders get advances and loans.

e) Bank account helps in smooth financial transactions.

f) Bank account holders get safe deposit locker facilities.