Financial Literacy - Class 7

Unit: Banking & Types of Bank Accounts

Total Marks: 40 | Time: 1 Hour

Section A: Fill in the Blanks (10 Marks)

Answer all questions.

  1. Savings account can be opened in a ________ individual's name, or can also be held in a ________ name.
  2. A bank issues ________ and ________ when an individual opens savings account.
  3. ________ account is generally used for running a business.
  4. We get ________ interest in a current account.
  5. We need to deposit a certain amount of money in ________ account every month.
  6. Bank pays ________ out of the money deposited by customers.
  7. General facilities like Lockers and dealing in Foreign Exchange, etc are ________ functions of a bank.
  8. ATM stands for ________.
  9. PIN stands for ________.
  10. Name of the recipient on cheque is known as the ________ of the cheque.

Section B: True or False (10 Marks)

Write True or False.

  1. We can earn money in savings account in the form of dividend.
  2. We have to maintain minimum balance in savings accounts.
  3. Current account is used for large number of transactions in a day.
  4. Fixed deposits are also known as terminal deposits.
  5. SBI offers two types of savings accounts for minors: Pehla Kadam and Pehli Udaan.
  6. A bank offers different types of accounts where we can deposit money.
  7. ATM card has a magnetic code, a unique card number and other important information stored on it.
  8. A cheque must have a date.
  9. Debit card can be used to do all the functions of an ATM card, and can also be used to make direct purchases at shops or online websites.
  10. ATMs have proven to be extremely convenient and beneficial.

Section C: Multiple Choice Questions (15 Marks)

  1. ________ is what we earn through savings account.
    a) Interest   b) Dividend   c) Deposit   d) Profit
  2. When we open savings account, bank issues ________.
    a) Cheque book   b) ATM card   c) Option a. and b.   d) ID Card
  3. The ________ account is used by people who have large number of transactions in a day.
    a) current   b) savings   c) recurring deposit   d) non-recurring deposit
  4. ________ accounts are non-interest bearing.
    a) Current   b) Savings   c) Recurring deposit   d) Non-recurring deposit
  5. ________ account allows unlimited transactions.
    a) Current   b) Savings   c) Recurring deposit   d) Non-recurring deposit
  6. In ________ account, we need to deposit a certain amount of money every month.
    a) current   b) savings   c) recurring deposit   d) non-recurring deposit
  7. An account holder can get a loan against the ________ deposit account.
    a) current   b) savings   c) recurring deposit   d) non-recurring deposit
  8. Bank allows a customer to ________ money and can offer money ________ to them.
    a) withdraw, interest   b) borrow, deposit   c) deposit, loan   d) spend, saving
  9. In some countries, ATM card is also known as ________
    a) credit card   b) plastic card   c) money card   d) cash card
  10. The first cash machine was installed by ________ Bank.
    a) Barclays   b) Swiss   c) ICICI   d) State
  11. The first cash machine was installed on ________
    a) 27th July 1967   b) 27th June 1968   c) 27th June 1967   d) 28th June 1967
  12. ________ card can directly be swiped in a machine provided by banks to the shops.
    a) ATM   b) Debit   c) Credit   d) Money
  13. The ________ Card helps a bank's customer purchase goods or services on Credit.
    a) ATM   b) Debit   c) Credit   d) Money
  14. Money grows in a ________.
    a) bank   b) locker   c) safe custody   d) with our parents
  15. Financial institution that takes money deposits from its customers is known as ________
    a) locker   b) safe custody   c) with our parents   d) bank

Section D: Short Answer Questions (5 Marks)

Answer any 5 questions from your handwritten notes.

  1. What is a bank?
  2. What are the primary function of bank?
  3. What are secondary function of bank?
  4. What is an ATM card? When ATM has proven to be beneficial for us? Write five cases.
  5. Who installed the first cash machine?
  6. Write short note on debit card and credit card.
  7. What are cheques? Write five information about the cheque.

*** All the Best ***