50 General Knowledge Questions And Answers About Banking

General Knowledge Questions and Answers about Banking

Banking plays a crucial role in the financial system by handling payments, accepting deposits, and making loans.

Banks facilitate the movement of credit and money throughout the economy by acting as middlemen between savers and borrowers.

This article explores deeper information on several banking-related topics.

Is General Knowledge Important in Banking?

For several reasons, general knowledge is crucial in the banking industry.

It first aids bankers in comprehending the larger environment in which they function.

Additionally, it enables them to stay current with industry developments and make wise selections.

Furthermore, bankers can better meet the wants and provide for their consumers when they possess a broad range of knowledge.

Finally, it enables them to establish connections with other industry experts.

Thus, general knowledge is unquestionably a valuable skill in banking.

General Knowledge Terminologies of Banking Products and Services

1.Bank accountA place to keep your money and make transactions.
2.ATMA machine that allows you to access your bank account and make transactions without going to a bank branch.
3.Credit card
A type of payment card that allows you to borrow money from a bank or other financial institution to make purchases or withdraw cash.
4.Debit cardA card that allows you to make purchases or withdraw cash from your bank account.
5.Certificate of deposit (CD)A type of savings account that allows you to earn interest on your money.
6.Savings bondA type of government bond that you can buy from the U.S. Treasury.
7.LoanA type of borrowing where you receive money from a bank or other financial institution and agree to pay it back with interest over some time.
8.MortgageA type of loan used to finance the purchase of a home.
9.Line of creditA type of loan where you have access to a certain amount of money and only pay interest on the amount you borrow.
10.Wire transferA way to transfer money from one bank account to another, usually electronically.

General Knowledge about Regulation in Banking

1.What is the primary banking regulator in the United States?Federal Reserve, also known as the Fed.
2.Which banking law established the Federal Reserve?The Federal Reserve Act of 1913
3.What is the purpose of bank regulations?It is to protect consumers, maintain the financial system’s stability, and prevent fraud and other illegal activities.
4.Which government agency is responsible for bank regulations in the United States?The Federal Reserve, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation (FDIC)
5.What is the Federal Deposit Insurance Corporation’s (FDIC) primary function?To provide deposit insurance to depositors of banks and thrift institutions insured by the FDIC.
6.How does the Federal Reserve regulate banks?The Federal Reserve regulates banks in a variety of ways. One way is through setting reserve requirements for banks. This means that banks must keep a certain percentage of their deposits on reserve to cover any withdrawals their customers make.
7.What is Basel III?Basel III is a set of international banking regulations introduced in 2010.
8.What is the purpose of the Dodd-Frank Act?The Dodd-Frank Act was passed in 2010 to prevent another financial crisis like the one in 2008.
9.What does the term “bank run” mean?A bank run is when many people suddenly withdraw their money from a bank. This can cause the bank to run out of money and fail.
10.What did the Glass-Steagall Act do?The Glass-Steagall Act separated commercial banking and investment banking. This was done to prevent banks from taking on too much risk and to make the financial system more stable.

General Knowledge Facts about Banking Technology

No.Topic on Banking TechnologyFact
1.ATMsATMs, also known as Automated Teller Machines, were first introduced in the United States in the 1970s.
2.Online bankingOnline banking became widely available to consumers in the United States in the 1990s.
3.Mobile bankingIt became widely available in the early 2000s with the rise of smartphones.
4.Chip-enabled credit cardsThey were first introduced in Europe in the 1990s but weren’t widely used in the United States until 2015.
5.Contactless paymentsThey became available in the United States in the 2010s with the rise of mobile wallets and smartphones with NFC technology.
6.Mobile wallet appsMobile wallet apps became popular in the 2010s.
7.Biometric authenticationIt became more common in the banking industry in the 2010s with the rise of mobile banking and mobile wallets.
8.Fintech startupsFintech, or financial technology, startups began to challenge traditional banks in the 2010s.
9.CryptocurrenciesCryptocurrencies gained popularity in the 2010s. Cryptocurrencies, like Bitcoin and Ethereum, are digital currencies that use blockchain technology.
10.Blockchain technologyBlockchain is sometimes referred to as ‘distributed ledger technology’ or DLT. It also gained popularity in the 2010s.

General Knowledge of Banking History

1.What was the most significant financial crisis in U.S. history?The Great Depression was a severe economic downturn that began in 1929 and lasted until the late 1930s.
2.Which U.S. President signed the Glass-Steagall Act into law?President Roosevelt signed the Glass-Steagall Act into law in 1933 in response to the Great Depression.
3.When was the World Bank founded?The World Bank, officially known as the International Bank for Reconstruction and Development, was founded in 1944 after World War II.
4.What country was the first to create paper money?China was the first country to create paper money! The Chinese government started issuing paper money in the 11th century.
5.When was the ATM first invented?The first ATM was invented in 1967! It was created by a British inventor named John Shepherd-Barron and installed at a branch of Barclays Bank in London.
6.Which country has the most ATMs per capita?The country with the most ATMs per capita is Canada! Canada has over 1.5 ATMs per 1,000 people.
7.Who founded the first central bank in the world?The first central bank was founded by the Swedish government in 1668. It was called the Riksbank.
8.What is the Bank of England sometimes called?The Bank of England is sometimes called the “Old Lady of Threadneedle Street.” This nickname was first used in 1864 by a British journalist named Walter Bagehot.
9.Which U.S. President signed the Federal Reserve Act into law?President Woodrow Wilson signed The Federal Reserve Act into law in 1913.
10.Which country is the birthplace of modern banking?The country that is considered the birthplace of modern banking is Italy. The first current bank, the Bank of Saint George, was founded in Florence in 1407.

General Knowledge about Banking Careers

No.CareerMeaning/Job Description
1.BankerA banker works for a bank, manages money, and provides financial services.
2.Bank tellerA bank teller works and provides essential financial services, such as cashing checks and accepting deposits.
3.Bank managerA bank manager oversees the operations of a bank branch and is responsible for ensuring that the branch meets its goals and serves its customers.
4.Loan OfficerLoan officers typically have a background in finance or business, and they’re responsible for evaluating a customer’s creditworthiness and approving or denying loan applications.
5.Loan ProcessorA loan processor helps prepare and process loan applications for approval.
6.Compliance officerA compliance officer helps banks and other financial institutions follow the rules and regulations that govern their industry.
7.Investment bankerAn investment banker helps companies raise capital by issuing and selling securities like stocks and bonds.
8.Personal bankerA personal banker works with individual customers to help them meet their financial goals.
9.Credit analystA credit analyst is someone who evaluates the creditworthiness of individuals and businesses.
10.Financial AdvisorA financial advisor provides financial advice and planning services to individuals and businesses.

FAQs on General Knowledge Questions and Answers about Banking

How many branches does the Federal Reserve have?

There are 12 Federal Reserve Banks, each with its regional headquarters.

Who is the current chairman of the Federal Reserve?

Jerome Powell is the current chairman of the Federal Reserve.
He was appointed by President Donald Trump and confirmed by the Senate in 2018.

What are the three major credit reporting bureaus in the United States?

They are Equifax, Experian, and TransUnion.
These three bureaus collect and maintain credit information on individuals and businesses, and lenders use their data to make loan decisions.

What is the legal tender of the United States?

The U.S. dollar is the only legal tender that can be used to pay debts, public charges, taxes, and dues in the United States.


The banking sector affects many facets of our lives and is a dynamic, intricate business.

We can make better financial judgments and manage the financial world if we have a basic understanding of banking.

Awesome one; I hope this article answers your question.

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