Students can find the most related topics which helps them to analyse the concepts if they practice according to the chapter-wise page. It is necessary for the students to practice more Questions and Answers for Tamilnadu State Board Solutions of 11th Commerce are given in the pdf format in chapter 11 Types of Banks Questions and Answers so that students can prepare in both online and offline modes. So, Download Samacheer Kalvi 11th Commerce Book Solutions Questions and Answers, Notes Pdf, to score good marks.

Samacheer Kalvi 11th Commerce Solutions Chapter 11 Types of Banks

Get the Questions and Answers, in Tamilnadu State Board 11th Commerce Solutions for Chapter 11 Types of Banks. Learn the concepts of 11th Commerce Chapter-Wise by referring to the Tamilnadu State Board Solutions for Chapter 11 Types of Banks Questions and Answers. Hence we suggest the students to Download Samacheer Kalvi 11th Commerce Book Solutions Questions and Answers pdf to enhance your knowledge.

Samacheer Kalvi 11th Commerce Types of Banks Textbook Exercise Questions and Answers

I. Choose the Correct Answer

Question 1.
Which bank is not a Industrial Bank?
(a) ICICI
(b) HSBC
(c) SIDBI
(d) IDBI
Answer:
(b) HSBC

Question 2.
The Local Area Banks are promoting
(a) Rural savings
(b) Business savings
(c) Industrial development
(d) Agricultural development
Answer:
(a) Rural savings

Question 3.
Foreign banks are begun their operation since
(a) 1978
(b) 1979
(c) 1980
(d) 1981
Answer:
(c) 1980

II. Very Short Answer Questions

Question 1.
Give the meaning of Commercial Banks.
Answer:
Banks which accept deposits from the public and grant loans to traders, individuals, agriculture, industries, transport etc., in order to earn profit.

Question 2.
What do you mean by Industrial Banks?
Answer:
Huge finance required for investment, expansion and modernisation of big industries and others are granted by a separate type of banks called development Banks. They are also called as industrial banks.

Question 3.
Briefly explain about Correspondent Banks?
Answer:
A bank in a country can appoint another bank in a foreign country to act as correspondent bank.

Question 4.
What are Foreign Banks?
Answer:
Banks which have registered office in a foreign country and branches in India are called foreign banks.

III. Short Answer Questions

Question 1.
Write a short note on Local Area Banks. Give two examples.
Answer:
Local Area Bank (LAB) scheme was introduced by the RBI in August 1996. LABs are small private sector banks established in rural and semi-urban areas. Each bank serves two or three adjoining districts only. Their main objective is to mobilise rural savings (accept deposits) and invest them in the same areas.

Examples:

  1. Coastal Local Area Bank, Vijayawada, Andhra Pradesh.
  2. Subhadra Local Area Bank Limited, Kolhapur, Maharashtra

Question 2.
Answer:
What are the objectives involved in Regional Rural Banks?
Answer:
Their objective is to develop rural economy and play supplementary role to cooperative societies. They mobilise deposits from the rural public and provide finance to rural artisans, small entrepreneurs and farmers and try to avoid their dependency on money lenders. As on 31.3.2016, there were 56 RRBs in India with 14,494 branches. They are regulated and supervised by NABARD.

Question 3.
Mention the purposes of Agricultural and Co – operative banks.
Answer:
Their foremost objective is providing service to its members for rural and agricultural development and not profit earning. They are set up in towns and villages rather than cities. Compared to the commercial banks they offer less variety of services as the bye laws do not permit all commercial bank activities.

IV. Long Answer Questions

Question 1.
Explain the various types of banks based on organization with examples.
Answer:
1. Commercial banks:
Banks which accept deposits from the public and grant loans to traders, individuals, agriculture, industries, transport, etc. in order to earn profit. Their lending is in comparatively small amounts and mostly for short and medium period. e.g.. State Bank of India

2. Development Banks:
Huge finance required for investment, expansion and modernisation of big industries and others are granted by a separate type of banks called development Banks. They are also called industrial banks, e.g., IFCI, SIDBl.

3. Cooperative Banks:
All cooperative banks in India are owned by its customers or members who are farmers, small traders and others. Cooperative banks in India are either urban based or rural based. example NAFED, Tamil Nadu State Apex Cooperative Bank – Head Office, Chennai.

4. Foreign Banks:
Banks which have registered office in a foreign country and branches in India.are called foreign banks, e.g., Bank of America – USA.

5. Regional Rural Banks (RRBs):
The RRBs were formed under the Regional Rural Bank Act 1976, jointly by the Central Government, State Government, and a sponsor bank, exsmple Pandian Grama Bank.

Question 2.
Explain the types of banks based on ownership pattern.
Answer:
Any bank in which not less than 51 percent of shares are owned by the Government are called Government banks or public sector commercial banks. All nationalized banks (19 banks, in 2017), SBI and IDBI Ltd. are public sector commercial banks. All of them are joint stock company type banks. There are corporation type banks. Each corporation type bank is established by a separate Act of Parliament and is fully owned by Government of India.

All banking companies owned by private people are called private sector commercial banks. All cooperative banks are owned by its members from the public.

  1. Nationalised banks: Indian bank, IOB, etc.
  2. Public sector banks: State Bank of India, IDBI Bank Ltd.
  3. Private sector banks: Lakshmi Vilas Bank, Karur Vysya Bank.

Samacheer Kalvi 11th Commerce Cooperative Organisation Additional Questions and Answers

I. Choose the Correct Answer:

Question 1.
Patru, Varavu, Selavu, Laabam, Nashtam which all,collectively known as ‘Iynthogai’ is otherwise called ……………..
(a) Trial Balance
(b) Ledger
(c) Journal
(d) Transaction
Answer:
(a) Trial Balance

Question 2.
Bank of Hindustan was the first bank in India established in ……………..
(a) 1771
(b) 1770
(c) 1932
(d) 1930
Answer:
(b) 1770

Question 3.
The General Bank of India was established in ……………..
(a) 1786
(b) 1796
(c) 1766
(d) 1787
Answer:
(a) 1786

Question 4.
Bank of Calcutta was the first joint stock bank established in
(a) 1806
(b) 1807
(c) 1805
(d) 1808
Answer:
(a) 1806

Question 5.
World bank otherwise called ……………..
(a) IBRD
(b) IMF
(c) RBI
(d) SBI
Answer:
(a) IBRD

Question 6.
International Monetary Fund (IMF) in which India became the member in ……………..
(a) 1947
(b) 1946
(c) 1945
(d) 1950
Answer:
(c) 1945

Question 7.
The state bank of India came into being in ……………..
(a) 1995
(b) 1945
(c) 1955
(d) 1965
Answer:
(c) 1955

II. Very Short Answer Questions:

Question 1.
What do you mean by Cooperative banks?
Answer:
All cooperative banks in India are owned by its customers or members who are farmers, small traders and others. Cooperative banks in India are either urban based or rural based.

Question 2.
What is Scheduled bank?
Answer:
All banks which satisfied the norms and included in the Second Schedule to the RBI Act, 1934 are called scheduled banks.

Case Study

Question 1.
You are the Agricultural bank manager; a farmer approaches you for loan from your bank for purchasing a tractor and other farm equipment. How would you sanction the loan?
Answer:
National Bank for Agriculture and Rural Development (NABARD) is such a bank National Cooperative Development Corporation (NCDC). These banks are giving bank loans for agriculture. If I were a bank manager, I ask the farmer the details of security. Land documents and other securities must be collected from the agriculturist. Then I check the productivity of his land.

How much earnings from that land in every year. If the regular incomes and yielding getting from that land, we can allow loan sanction for that farmer. Before that the terms and conditions of the loan sanction letter to be given. He has to read and put the signature in that credit letter.

Question 2.
Due to natural calamities, the farmer could not repay the loan. He has no other way to repay the loan. How to collect loan from the farmer?
Answer:
We can ask the Government, if any policy has been changed and sanctioned any compensations. Otherwise we can ask him whether insurance took the harvesting land. If he did the insurance policy, the Insurance company can give the compensations and we can collect from them, or we can give notice and give the auction on that land and recover money from that auction by the land document. The land was hypothecated by the bank and the loan was given. So we can have a chance to recover that loan.

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