1. First bank started in India with solely Indian capital investment is:
a) Bank of Baroda
b) Punjab National Bank
c) Punjab & Sind Bank
d) Central Bank of India
e) Canara Bank
2. The banker acts as a Bailee and the customer as Bailor, this relationship is applicable:
a) when a bank lends funds to a corporate customer
b) when a bank accepts US$ FCNR deposits form a NRI customer
c) when a customer operates a safe deposit locker
d) when a customer keeps articles in safe custody with a bank
e) None of the above
3. Which of the following is not a financial intermediary?
a) Banks
b) Financial institutions
c) Mutual funds
d) Non-bank finance companies
e) Companies engaged in manufacturing of good
4. Acustomers lost the Fixed Deposit Receipt issued by the bank. To obtain a duplicate FD he needs to furnish:
a) A Promissory note
b) A collateral security
c) A Letter of Credit
d) An Indemnity bond
e) Counter guarantee by the customer
5. Reserve Bank of India's functions are classified into:
a) Supervisory & Regulatory
b) Promotional & Developmental 132
c) Refinance Activities
d) a & b only
e) a, b & c
6. The scope of activities undertaken by the business correspondents will not include:
a) Disbursal of small value credit
b) Recovery of principal/collection of interest
c) Collection of small value deposits
d) Payment of money on demand drafts not exceeding Rs. 1,000
e) None of the above
7. In strategic Alliance, the alliance partners:
a) Merge with each other 220
b) One partner acquires the other
c) Remain separate entities
d) Amalgamate with one another
e) None of the above
8. A company which pools money from investors and invests in stocks, bonds, shares is called:
a) A bank
b) An insurance company
c) Bank assurance
d) Mutual Fund
e) None of the above
9. Mr. X who is an Ordinary SB account holder of a branch wants to nominate Mr. Y, an U.S. national, who is his friend. Is that allowed?
a) Yes it is freely permitted
b) Yes it is freely permitted, but at the time of settlement of claim and repatriation to the
nominee, branch has to take RBI permission
c) Yes it is freely permitted, subject to Regional office approval
d) Yes it is freely permitted, subject to CO approval
e) No it cannot be allowed
10. In a cheque, the word "Order" is changed to "bearer" by the holder of the cheque. This is called as:
a) Endorsement
b) Material alteration
c) Crossing
d) Special Crossing
e) Allonge
11. If a customer dies without leaving a will and the court appoints a person to handle the customer's Property. Such a person is called as:
a) An administrator
b) An executor
c) A liquidator
d) A successor
e) An Authorised Officer
12. Garnishee order is issued by:
a) Judgment Debtor
b) Judgment Creditor
c) Reserve Bank of India
d) The Court
d) Income Tax Department
13. One of the NRI customers wants to place FCNR deposits in Canadian $ with a bank. Can the
account be opened in Canadian Dollars?
a) Yes, his request can be accepted and open a FCNR a/c
b) No, Bank can not accept his request to open FCNR a/c in Canadian $
c) Will inform the customer to place FCNR in any one of the currencies (US$/ GBP/ JPY/ EUR)
d) Can open after seeking permission from Head Office
e) Can open after obtaining clearance from RBI
14. Which of the following is the the First Paper Currency Note issued by the RBI bearing the portrait of King Geoge VI?
a) Two Rupee Note
b) Five Rupee Note
c) Ten Rupee Note
d) Twenty Rupee Note
e) Fifty Rupee Note
15. Which of the following is the scheme for skill development of minorities?
a) Padho aur kamao
b) Seekho aur kamao
c) Kamao aur jiyo
d) Padho aur Seekho
e) None of the above
16. Capital adequacy is worked out based on:
a) Total demand and time liabilities
b) Net demand and time assets
c) Risk weighted assets
d) Risk weighted liabilities
e) None of the above
17. A Co-Operative Bank operating in different States are regulated by:
a) State Co-Operative Societies Act
b) Banking Regulation Act
c) Multi Unit Co-Operative Societies Act
d) Banking Laws (applicable to Co-Operative Societies)
e) RBI Act 1934
18. If a cheque is accidentally torn by the drawer, the cheque ___
a) Can't be paid
b) Can be paid, if the holder confirms the mutilation
c) Can be paid, if the drawer confirms the mutilation and if otherwise in order
d) Can't be paid, even if the drawer confirms the mutilation and otherwise in order
e) None of the above
19. Tele banking is not based on:
a) Virtual banking,
b) Voice processing,
c) Online banking
d) a & c
e) None of the above
20. Cash payment of Term deposits is possible, if the amount doesn't exceed Rs.:
a) 20,000
b) 25,000
c) 30,000
d) 40,000
e) 50,000
21. Balance in a current account is classified as:
a) Hybrid deposit
b) Term deposit
c) Demand deposit
d) Flexi deposit
e) None of the above
22. The rate at which domestic currency can be converted in to foreign currency and vice-versa is known as:
a) LIBOR
b) Base Rate
c) Repo Rate
d) Exchange Rate
e) Inter Bank Call Money Rate
23. Hypothecation is applicable in the case of ____.
a) Movable goods
b) Immovable property
c) Loan against Insurance Policies
d) Corporate guarantee
e) Gold Loan
24. The minimum percentage of Priority Sector advances to be maintained by foreign banks in India with less than 20 branches is __.
a) 40%
b) 18%
c) 32%
d) 50%
e) 60 %
25. One of the State Government avails of a temporary financial assistance from Reserve Bank of
India. This type of finance is called:
a) Overdraft
b) Temporary loan
c) Short term finance
d) Ways and Means advance
e) Repo
26. Which one of the following is known as 'Demat' account?
a) Account in which shares are held in electronic form
b) Other than those given as options
c) Account allowed to be operated by guardian of minor
d) Account operated by business correspondents in rural
e) None of the above
27. External commercial borrowings are governed under:
a) Foreign Exchange Regulation Act
b) Securitisation and Reconstruction of Financial assets and enforcement of security interest Act
c) Debt Recovery Tribunal Act
d) Foreign exchange management Act
e) None of the above
28. Maximum Bank Rate that can be declared by the Reserve Bank of India is:
a) 6%
b) 20%
c) 25%
d) 1% over MCLR
e) No such ceiling
29. Obligation of a Banker to maintain secrecy is applicable to:
a) Only in case of existing deposit accounts
b) Only in respect existing loan accounts
c) Only in case of closed accounts
d) All types of deposit/loan accounts (existing/closed)
e) No need of maintaining secrecy to exhibit transparency in banking transactions
30. A mortgage involves:
a) Transfer of ownership
b) Transfer of interest in Immovable property
c) Transfer of possession
d) a & c
e) None of the above
31. Bank A allows one of its clients to withdraw against clearing of a cheque. The banker is called as:
a) Collecting Banker
b) Holder in due course
c) Holder for value
d) Reimbursement banker
e) Paying Banker
32. As per the provisions of NI Act,1881 a banker gets protection for payment of a cheque only if it is a:
a) Holder in due course
b) Payment in due course
c) Holder for value
d) Not Negotiable Instrument
e) All of the above
33. SARFAESI Act 2002 is applicable to:
a) All states excluding Jammu and Kashmir
b) All states including Jammu and Kashmir
c) All Banks including Foreign Banks and RRBs
d) Only Union Terrirories
e) b & c
34. Management of a Bank vests with:
a) Reserve Bank of Indian
b) Asset Liability Committee (ALCO)
c) Board of Directors
d) Share Holders
e) a & d
35. Rajender Singh, gives a written stop payment instructions of a cheque Rs. 50/- to his banker.
This should be treated by the bank as:
a) A request from Sekhar
b) An intimation from Sekhar
c) An advice from Sekhar
d) A mandate from Sekhar
e) None of the above as the stop payment is for a small amount
36. Banks can grant loans against:
a) LIC Policy
b) CDs
c) FD issues other bank
d) Mutual fund
e) All the above
ANSWERS:
1) b 2) d 3) e 4) d 5) e 6) d 7) c 8) d 9) b 10) b
11) a 12) d 13) a 14) b 15) b 16) c 17) c 18) c 19) d 20) a
21) c 22) d 23) a 24) c 25) d 26) a 27) d 28) e 29) d 30) b
31) c 32) b 33) b 34) c 35) d 36) a
a) Bank of Baroda
b) Punjab National Bank
c) Punjab & Sind Bank
d) Central Bank of India
e) Canara Bank
2. The banker acts as a Bailee and the customer as Bailor, this relationship is applicable:
a) when a bank lends funds to a corporate customer
b) when a bank accepts US$ FCNR deposits form a NRI customer
c) when a customer operates a safe deposit locker
d) when a customer keeps articles in safe custody with a bank
e) None of the above
3. Which of the following is not a financial intermediary?
a) Banks
b) Financial institutions
c) Mutual funds
d) Non-bank finance companies
e) Companies engaged in manufacturing of good
4. Acustomers lost the Fixed Deposit Receipt issued by the bank. To obtain a duplicate FD he needs to furnish:
a) A Promissory note
b) A collateral security
c) A Letter of Credit
d) An Indemnity bond
e) Counter guarantee by the customer
5. Reserve Bank of India's functions are classified into:
a) Supervisory & Regulatory
b) Promotional & Developmental 132
c) Refinance Activities
d) a & b only
e) a, b & c
6. The scope of activities undertaken by the business correspondents will not include:
a) Disbursal of small value credit
b) Recovery of principal/collection of interest
c) Collection of small value deposits
d) Payment of money on demand drafts not exceeding Rs. 1,000
e) None of the above
7. In strategic Alliance, the alliance partners:
a) Merge with each other 220
b) One partner acquires the other
c) Remain separate entities
d) Amalgamate with one another
e) None of the above
8. A company which pools money from investors and invests in stocks, bonds, shares is called:
a) A bank
b) An insurance company
c) Bank assurance
d) Mutual Fund
e) None of the above
9. Mr. X who is an Ordinary SB account holder of a branch wants to nominate Mr. Y, an U.S. national, who is his friend. Is that allowed?
a) Yes it is freely permitted
b) Yes it is freely permitted, but at the time of settlement of claim and repatriation to the
nominee, branch has to take RBI permission
c) Yes it is freely permitted, subject to Regional office approval
d) Yes it is freely permitted, subject to CO approval
e) No it cannot be allowed
10. In a cheque, the word "Order" is changed to "bearer" by the holder of the cheque. This is called as:
a) Endorsement
b) Material alteration
c) Crossing
d) Special Crossing
e) Allonge
11. If a customer dies without leaving a will and the court appoints a person to handle the customer's Property. Such a person is called as:
a) An administrator
b) An executor
c) A liquidator
d) A successor
e) An Authorised Officer
12. Garnishee order is issued by:
a) Judgment Debtor
b) Judgment Creditor
c) Reserve Bank of India
d) The Court
d) Income Tax Department
13. One of the NRI customers wants to place FCNR deposits in Canadian $ with a bank. Can the
account be opened in Canadian Dollars?
a) Yes, his request can be accepted and open a FCNR a/c
b) No, Bank can not accept his request to open FCNR a/c in Canadian $
c) Will inform the customer to place FCNR in any one of the currencies (US$/ GBP/ JPY/ EUR)
d) Can open after seeking permission from Head Office
e) Can open after obtaining clearance from RBI
14. Which of the following is the the First Paper Currency Note issued by the RBI bearing the portrait of King Geoge VI?
a) Two Rupee Note
b) Five Rupee Note
c) Ten Rupee Note
d) Twenty Rupee Note
e) Fifty Rupee Note
15. Which of the following is the scheme for skill development of minorities?
a) Padho aur kamao
b) Seekho aur kamao
c) Kamao aur jiyo
d) Padho aur Seekho
e) None of the above
16. Capital adequacy is worked out based on:
a) Total demand and time liabilities
b) Net demand and time assets
c) Risk weighted assets
d) Risk weighted liabilities
e) None of the above
17. A Co-Operative Bank operating in different States are regulated by:
a) State Co-Operative Societies Act
b) Banking Regulation Act
c) Multi Unit Co-Operative Societies Act
d) Banking Laws (applicable to Co-Operative Societies)
e) RBI Act 1934
18. If a cheque is accidentally torn by the drawer, the cheque ___
a) Can't be paid
b) Can be paid, if the holder confirms the mutilation
c) Can be paid, if the drawer confirms the mutilation and if otherwise in order
d) Can't be paid, even if the drawer confirms the mutilation and otherwise in order
e) None of the above
19. Tele banking is not based on:
a) Virtual banking,
b) Voice processing,
c) Online banking
d) a & c
e) None of the above
20. Cash payment of Term deposits is possible, if the amount doesn't exceed Rs.:
a) 20,000
b) 25,000
c) 30,000
d) 40,000
e) 50,000
21. Balance in a current account is classified as:
a) Hybrid deposit
b) Term deposit
c) Demand deposit
d) Flexi deposit
e) None of the above
22. The rate at which domestic currency can be converted in to foreign currency and vice-versa is known as:
a) LIBOR
b) Base Rate
c) Repo Rate
d) Exchange Rate
e) Inter Bank Call Money Rate
23. Hypothecation is applicable in the case of ____.
a) Movable goods
b) Immovable property
c) Loan against Insurance Policies
d) Corporate guarantee
e) Gold Loan
24. The minimum percentage of Priority Sector advances to be maintained by foreign banks in India with less than 20 branches is __.
a) 40%
b) 18%
c) 32%
d) 50%
e) 60 %
25. One of the State Government avails of a temporary financial assistance from Reserve Bank of
India. This type of finance is called:
a) Overdraft
b) Temporary loan
c) Short term finance
d) Ways and Means advance
e) Repo
26. Which one of the following is known as 'Demat' account?
a) Account in which shares are held in electronic form
b) Other than those given as options
c) Account allowed to be operated by guardian of minor
d) Account operated by business correspondents in rural
e) None of the above
27. External commercial borrowings are governed under:
a) Foreign Exchange Regulation Act
b) Securitisation and Reconstruction of Financial assets and enforcement of security interest Act
c) Debt Recovery Tribunal Act
d) Foreign exchange management Act
e) None of the above
28. Maximum Bank Rate that can be declared by the Reserve Bank of India is:
a) 6%
b) 20%
c) 25%
d) 1% over MCLR
e) No such ceiling
29. Obligation of a Banker to maintain secrecy is applicable to:
a) Only in case of existing deposit accounts
b) Only in respect existing loan accounts
c) Only in case of closed accounts
d) All types of deposit/loan accounts (existing/closed)
e) No need of maintaining secrecy to exhibit transparency in banking transactions
30. A mortgage involves:
a) Transfer of ownership
b) Transfer of interest in Immovable property
c) Transfer of possession
d) a & c
e) None of the above
31. Bank A allows one of its clients to withdraw against clearing of a cheque. The banker is called as:
a) Collecting Banker
b) Holder in due course
c) Holder for value
d) Reimbursement banker
e) Paying Banker
32. As per the provisions of NI Act,1881 a banker gets protection for payment of a cheque only if it is a:
a) Holder in due course
b) Payment in due course
c) Holder for value
d) Not Negotiable Instrument
e) All of the above
33. SARFAESI Act 2002 is applicable to:
a) All states excluding Jammu and Kashmir
b) All states including Jammu and Kashmir
c) All Banks including Foreign Banks and RRBs
d) Only Union Terrirories
e) b & c
34. Management of a Bank vests with:
a) Reserve Bank of Indian
b) Asset Liability Committee (ALCO)
c) Board of Directors
d) Share Holders
e) a & d
35. Rajender Singh, gives a written stop payment instructions of a cheque Rs. 50/- to his banker.
This should be treated by the bank as:
a) A request from Sekhar
b) An intimation from Sekhar
c) An advice from Sekhar
d) A mandate from Sekhar
e) None of the above as the stop payment is for a small amount
36. Banks can grant loans against:
a) LIC Policy
b) CDs
c) FD issues other bank
d) Mutual fund
e) All the above
ANSWERS:
1) b 2) d 3) e 4) d 5) e 6) d 7) c 8) d 9) b 10) b
11) a 12) d 13) a 14) b 15) b 16) c 17) c 18) c 19) d 20) a
21) c 22) d 23) a 24) c 25) d 26) a 27) d 28) e 29) d 30) b
31) c 32) b 33) b 34) c 35) d 36) a
