Question Bank - Banking & Financial Services

Here's the question bank on all the banking & financial services topics.

Match the item of List I with the items of List II and suggest the correct code:List IList IIa.Relationship Bankingi.Dealing in hundis and acceptance of depositsb.Merchant Bankingii.Widening the entrepreurial base and assist in a rapid rate of industrial growthc.Indigenous Bankingiii.Engaged in the business of capital issue managementd.Development Bankingiv.Creating, maintaining and enhancing strong relationship with customers

A.
a-iv, b-ii, c-i, d-iii
B.
a-ii, b-iii, c-i, d-iv
C.
a-iv, b-iii, c-i, d-ii
D.
a-ii, b-i, c-iv, d-iii

Solution:

Below is the explanation of different types of banking:Relationship banking is a strategy used by banks to offer a variety of different products, strengthen customer loyalty, and generate additional revenue. Small, mid-sized, and large money center banks all use relationship banking strategies. Merchant banking is a combination of banking and consultancy services. It provides consultancy to its clients for financial, marketing, managerial, and legal matters. Consultancy means to provide advice, guidance, and service. It helps a business person to start a business. It helps to raise (collect) finance. Indigenous bankers constitute the ancient banking system of India. According to the Indian Central Banking Enquiry Committee, an indigenous banker or bank is defined as an individual or private firm which receives deposits, deals in hundies, or engages itself in lending money. Development banks are financial institutions that provide long-term credit for capital-intensive investments spread over a long period and yielding low rates of return, such as urban infrastructure, mining and heavy industry, and irrigation systems. Therefore, the correct match is:List IList IIa. Relationship Bankingi. Creating, maintaining, and enhancing the strong relationship with customersb. Merchant Bankingii. Widening the entrepreneurial base and assist in a rapid rate of industrial growthc. Indigenous Bankingiii. Dealing in hundies and acceptance of depositsd. Development Bankingiv. Engaged in the business of capital issue managementHence Option1 is the correct answer.

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