Banking MCQ

1. Mr. Ramesh deposits Rs.250 per month for 1 year in a bank's recurring deposit account at
the rate of 8% per annum, then the interest earned by him is
(2 points)
a) Rs 65
b) Rs 120
c) Rs 130
d) Rs 260
2. Mrs. Sangita deposited Rs.500 every month in a cumulative deposit account for 2 years at
the rate of 7% per annum, then the amount she gets on maturity is
(2 points)
a) Rs 875
b) Rs 6875
c) Rs 10875
d) Rs 12875
3. All calculations in Recurring Deposit Account are based on
(2 points)
a) Simple Interest
b) Compound Interest
c) Both Option 1 and 2
d) Time
4. Recurring time deposit schemes are available in
(2 points)
a) Banks
b) Post Offices
c) Both Banks and Post Office
d) None of the above
5. Formula for calculating interest in recurring deposit account is
(2 points)

a)

b)

c)

d)

6. Mr. R.K. Nair gets Rs. 6455 at the end of one year at the rate of 14% p.a. in a Recurring
Deposit Account. Find the monthly instalment.
(2 points)
 a) Rs. 300
b) Rs. 500
c) Rs. 100
d) Rs. 250
7. In calculations of Recurring Deposit Account, time is always taken in ______.
(2 points)
a) Days
b) Hours
c) Months
d) Years
8. Formula of Maturity Value is:
(2 points)
a) P+I
b) P+In
c) Pn+I
d) I x n
9. Recurring Deposit Account is also known as _________ Account.
(2 points)
a) Fixed Deposit
b) Saving deposit
c) Cumulative Deposit
d) Current
10. In a Recurring Deposit Account, if P= Rs.600; M.V. = Rs.24930; r=10%per annum, then
the time (in years)for which the account is held will be ______
(2 points)
a) 1 year
b) 2 years
c) 3 years
d) 4 years