Non-state Institutions

Question 1

institutions that conduct business purely on profit motive

Answer 1

Banks

Question 2

These are also known as banking functions.

Answer 2

Primary Functions

Question 3

The bank collects deposits from the public

Answer 3

Accepting Deposits

Question 4

This encourages saving habit among the public. The rate of interest is low. At present, it is about 5% per annum.

Answer 4

Savings

Question 5

Lump sum amount is deposited at one (1) time for a specific period. Higher rate of interest is paid, which varies with the period of deposit.

Answer 5

Fixed

Question 6

This type of account is operated by businessmen. Withdrawals are freely allowed. No interest is paid. In fact, there are service charges

Answer 6

Current

Question 7

This type of account is operated by salaried persons and petty traders. A certain sum of money is periodically deposited into the bank.

Answer 7

Recurring

Question 8

Bank advances loans to the business community and
other members of the public. The rate charged is higher than what it pays on deposits

Answer 8

Granting of Loans and Advances

Question 9

These advances are given to current account holders. No separate account is maintained

Answer 9

Overdraft

Question 10

The client is allowed cash credit up to a specific limit fixed in advance.
It can be given to current account holders as well as to others who do not have an account with bank

Answer 10

Cash Credits

Question 11

It is normally for short term (a period of one [1] year) or medium term (a period of five [5] years). These days, banks do lend money for long term.

Answer 11

Loans

Question 12

The bank can advance money by discounting or by
purchasing bills of exchange, both domestic and foreign bills.

Answer 12

Discounting Bill of Exchange

Question 13

These are also called as non-banking functions

Answer 13

Secondary Functions

Question 14

The bank acts as an agent of its customers such as trustees, executors,
advisers and administrators on behalf of its clients.

Answer 14

Agency Functions

Question 15

The bank transfer funds from one branch to another or from one
place to another

Answer 15

Transfer of Funds

Question 16

The bank collects the money of the cheques through the
clearing section of its customers.

Answer 16

Collection of Cheques

Question 17

On standing instructions of the client, the bank makes periodic
payments in respect of electricity bills, rent, etc

Answer 17

Periodic Payments

Question 18

The banks also undertakes to purchase and sell the shares and
debentures on behalf of the clients and accordingly debits or credits the account.

Answer 18

Portfolio Management

Question 19

The bank collects salary, pension, dividend, and such other
periodic collections on behalf of the client.

Answer 19

Periodic Collections

Question 20

Banks issue drafts for transferring money from one place to another.

Answer 20

Issue of Drafts and Letter of Credits

Question 21

The bank provides a locker facility for the safe custody of valuable
documents, gold ornaments, and other valuables

Answer 21

Locker Facility

Question 22

The bank underwrites shares and debentures through its
merchant banking division.

Answer 22

Underwriting of Shares

Question 23

The commercial banks are allowed by Reserve Bank
of India (RBI) to deal in foreign exchange.

Answer 23

Dealing in Foreign Exchange

Question 24

The bank may also undertake to prepare project reports on behalf of
its clients.

Answer 24

Project Reports

Question 25

It undertakes social welfare programs, such as adult literacy programs, public welfare campaigns, etc.

Answer 25

Social Welfare Programs

Question 26

the most common form of business organizations. These are chartered by a state and given many legal rights as an entity separate from its owners

Answer 26

Corporations

Question 27

The board of directors of a small corporation is responsible for selecting a chief executive officer (CEO)

Answer 27

Selecting a CEO

Question 28

Small corporations are formed to stay in business on a permanent basis. Therefore, another corporate function is continuity of business

Answer 28

Providing Continuity

Question 29

A small corporation is also responsible for managing its resources effectively. Those involved in manufacturing must procure the necessary raw materials to create products

Answer 29

Managing Resources Effectively

Question 30

All corporations are in business to earn a profit. However, corporations are also responsible for increasing profits to maximize those of their shareholders.

Answer 30

Increasing Profits

Question 31

Corporations are also responsible for giving back to their communities. Many sponsor events or organizations such as symphony orchestras in their community.

Answer 31

Social Responsibilities

Question 32

autonomous associations of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democraticallycontrolled enterprise.

Answer 32

Cooperatives

Question 33

on the other hand, are organizations based on membership of employees in various trades, occupations, and professions, whose major focus is the representation of its members at the workplace and in the wider society.

Answer 33

Trade Unions

Question 34

To achieve higher wages and better working conditions · To raise the status of workers as a part of industry · To protect labors against victimization and injustice

Answer 34

Militant Functions

Question 35

· To generate self confidence among workers · To encourage sincerity and discipline among workers · To provide opportunities for promotion and growth · To protect women workers against discrimination

Answer 35

Fraternal Functions

Question 36

provided to improve the quality of work life, including organization of mutual fund, cooperative credit societies for providing housing, cooperative stores, cultural programs, banking and medical facilities, and training for women in various crafts to help them to supplement their family income.

Answer 36

Welfare activities

Question 37

including improvement of their civic life, awareness in the environment around them, enhancement of their knowledge particularly about issues that concern them, their statutory and other rights and responsibilities, and workers’ participation in management.

Answer 37

Education of members in all aspects of their working life

Question 38

Some central union organizations are also assisting the Government in implementing the Workers’ Education Scheme

Answer 38

Scheme and procedure for redressing their grievance

Question 39

making the latter aware of union policy and stand on certain principal issues and personnel matters concerning members such as births, deaths, marriages, promotions, and achievements.

Answer 39

Publication of periodicals, newsletters, or magazines for establishing communication with their members

Question 40

provides updated information to union negotiators at the bargaining table. Such research is to be more practical than academic, concerning problems relating to daily affairs of the union and its activities, and union and management relations

Answer 40

Research

Question 41

These include affiliating the union with a political party, helping the political party in enrolling members, collecting donations, and seeking the help of political parties during the periods of strikes and lockouts.

Answer 41

Political Functions

Question 42

entities established by formal political agreements between their members who have the status of international treaties.

Answer 42

International Organizations

Question 43

It was set up to help the so-called underdeveloped world to help integrate the poor countries into the international economy.

Answer 43

World Bank

Question 44

It was created to help stabilize currency exchange rates between nations; and to come to the aid of countries with temporary liquidity needs.

Answer 44

International Monetary Fund (IMF)

Question 45

It determines and enforces the rules regulating international trade.

Answer 45

World Trade Organization (WTO)

Question 46

advocates of principled causes, ideas, and values such as human rights or the environment. They do not work alone nor are they limited by national boundaries

Answer 46

Transnational Advocacy Groups

Question 47

establish and support sustainability programs for the community.

Answer 47

Development Agencies