202d-Banking Law and Practice

Dr.G.R.Damodaran College of Science(Autonomous, affiliated to the Bharathiar University, recognized by the UGC)Re-

accredited at the 'A' Grade Level by the NAAC and ISO 9001:2008 CertifiedCRISL rated 'A' (TN) for MBA and MIB Programmes

I-B.COM [2014-2017]SEMESTER- II

SKILL BASED SUBJECT: BANKING LAW AND PRACTICE-202DMultiple Choice Questions.

1. The primary relationship between a banker and customer starts from the timeA. when customer visits that bankB. when customer opensC. when customer visits that bank to made queriesD. All of the above

ANSWER: B

2. 2. The primary relationship between banker and customer is a ------------------ relationshipA. MutualB. ContractualC. PersonalD. None of the above

ANSWER: B

3. 3. Which one of the following is the most important relationship between banker and customerA. A. Debtor and CreditorB. Bailee and BailorC. Agency and PrincipalD. Trustee and Beneficiary

ANSWER: A

4. When customer's account overdrawn or when customer has taken loan from banker, then the customerA. CreditorB. AgentC. . DebtorD. . Bailor

ANSWER: C

5. When banker received deposits from the customer, then the banker becomes -------------- of the customerA. DebtorB. CreditorC. BaileeD. Trustee

ANSWER: A

6. ------------- accepts the bailment of certain things on the condition that the things bailed will not utilisedA. Bailor

http://172.16.2.20/printqp.php?heading=I-B.COM [2014-2017], SEMES...

1 of 22 2/16/2015 2:32 PM

B. TrusteeC. BaileeD. Beneficiary

ANSWER: C

7. It is a ----------------- obligation of a banker to honour the cheques of the customer drawn against currentaccount

A. MutualB. StatutoryC. UnstatutoryD. All of the above

ANSWER: B

8. Which bank have given the instructions to the commercial banks regarding the immediate credit ofoutstation cheques?

A. Reserve Bank of IndiaB. Central BankC. World BankD. All of the above

ANSWER: A

9. Dishonour of cheque by a banker without any justifiable reason is calledA. Valid dishonour of chequesB. Unmindful dishonour of chequesC. Negligence dishonour of chequesD. Wrongful dishonour of cheques

ANSWER: D

10. Special damages refers to damages payable by a banker to his customer for the actual ------------- losssuffered by customer

A. FinancialB. SpecialC. UnpecuniaryD. Unfinancial

ANSWER: A

11. ---------- is the right of a person to retain the property of another person in his possession untill the debtfrom that owner of that property is repaid

A. LienB. RetainmentC. RetrenchmentD. Libel

ANSWER: A

12. The bank can consider ------------------ lien as their protection against loss on loan or overdraft whichwas given to its customers

A. SpecialB. ParticularC. GeneralD. Lending

ANSWER: A


2 of 22 2/16/2015 2:32 PM

13. The idea behind the bankers right to set-off is to enable the banker to reduce the -------------- amountdue to him from a customer

A. GrossB. NetC. PartialD. None of the above

ANSWER: B

14. A ---------------- refers to the right of banker to adjust the credit and debit balance of customers withoutobtaining any letter of set-off or without giving any notice to the customers

A. Automatic set-offB. Proper set-offC. Legal set-offD. Special set-off

ANSWER: A

15. The right of set-off customers account can be exercised only by a A. CreditorsA. CreditorsB. DebtorsC. . BankerD. Customer

ANSWER: C

16. Usually incidental charges are levied on which type of account holdersA. Savings accountB. . Fixed deposit accountC. Current AccountD. Recurring deposit account

ANSWER: C

17. The -------------- rule is followed in appropriation of accounts if neither debtor nor creditors does notmakes any specific appropriation

A. PagetsB. KinlayC. SheldonD. Claytons

ANSWER: D

18. The word "Garnishee" is derived from a latin wordA. GarnireB. GarnC. GarnishD. Garni

ANSWER: A

19. The meaning of the word "Garnishee" meansA. to consultB. . to warnC. to punishD. to convince


3 of 22 2/16/2015 2:32 PM

ANSWER: B

20. MICR technology used for clearance of cheques by banks refers toA. Magnetic Ink Character RecognitionB. Magnetic Ink Company RecognitionC. Magnetic Ink Cross RecognitionD. Magnetic Ink Community Recognition

ANSWER: A

21. In India, the law regulating the Negotiable instruments areA. Banking Regulation Act 1949B. Reserve Bank of India Act 1934C. Negotiable Instruments Act 1881D. Companies Act 1956

ANSWER: C

22. Which banks which accept deposits from the public and lend them mainly to commerce for shortperiods?

A. Commercial BankB. . Industrial BankC. Agricultural BankD. Central Bank

ANSWER: A

23. Which bank is otherwise called as Investment banks?A. Exchange BankB. Reserve Bank of IndiaC. Industrial BankD. Agricultural Bank

ANSWER: C

24. A company who accepts demand deposit is called __________A. Joint stock companyB. Banking companyC. Manufacturing companyD. . IT company

ANSWER: B

25. Current Accounts are mainly opened byA. ProfessionalsB. AgriculturalistC. Salaried class peopleD. Trading and industrial concern

ANSWER: D

26. Who controls credit in India?A. Government of IndiaB. Reserve Bank of IndiaC. State Bank of IndiaD. . Indian Bank

ANSWER: B


4 of 22 2/16/2015 2:32 PM

27. Fixed Deposits is otherwise called asA. Accrued DepositsB. Time depositsC. . Recurring DepositsD. Demand Deposits

ANSWER: B

28. In the which type of deposit, the high rate of interest is provided by the Bank?A. Current AccountB. Recurring Deposit AccountC. Fixed Deposit AccountD. Savings Account

ANSWER: C

29. Loan is a financial arrangement under which an advance is granted by a bank to a borrower on aseparate account called

A. Cash credit accountB. . Overdraft accountC. Loan accountD. Discount account

ANSWER: C

30. The rate of interest charged for the loan by the banker compared to overdraft and cash credit isgenerally

A. HighB. LowC. SameD. Based on the amount

ANSWER: B

31. Which type of account holder has the permission to overdraw the amount from his/her accountA. Savings accountB. Current accountC. Fixed deposit accountD. Recurring deposit account

ANSWER: B

32. Usually in Overdraft, to protect the interest of the banker, they levy ------------------- Discounting ofBills of Exchange is an arrangement under which an banks takes a bill of exchange maturing with a shortperiod of

A. 20 days or 40 daysB. 50 days or 100 daysC. 60 days or 90 daysD. 35 days or 75 days

ANSWER: C

33. The main aim of a banker for performing the subsidiary services is to earn a ------------ of the customersA. MoneyB. DocumentsC. Valuables


5 of 22 2/16/2015 2:32 PM

D. GoodwillANSWER: D

34. The services rendered by a banker as an agent of his customers are calledA. Principal servicesB. Agency servicesC. General utility servicesD. Social services

ANSWER: B

35. The written instructions given by the customers to banker to perform the services like collection andpayment of money is noted down in

A. Written Instructions BookB. Standing Instructions BookC. Banking Instructions BookD. Services Instructions Book

ANSWER: B

36. A -------------- is a person who is entrusted with some property by the settler or the author of the trustfor the benefit of another person called beneficiary

A. AttorneyB. ExecutorC. . AdministratorD. Trustee

ANSWER: D

37. An -------------- is a person appointed by a testator to execute his willA. ExecutorB. AttorneyC. TrusteeD. Administrator

ANSWER: A

38. Services rendered by a banker not only to his customers, but also to the general public are called asA. Principal servicesB. Agency servicesC. General utility servicesD. Social services

ANSWER: C

39. In Negotiable Instruments Act 1881, which section defines promissory note?A. Section 1B. Section sC. Section 3D. Section 4

ANSWER: D

40. . ------------ is a system under which an individual bank carries on banking business with a network ofbranches spread all over the country.

A. Mixed BankingB. Branch Banking


6 of 22 2/16/2015 2:32 PM

C. Unit BankingD. Corresponding Banking

ANSWER: B

41. A cheque dated subsequent to the date of its issue isA. Post dated cheque B. Blank chequeB. Blank chequeC. Crossed chequeD. Account payee cheque

ANSWER: A

42. A cheque date before the date of its issue isA. Worth chequeB. Full worth chequeC. Preemptive chequeD. Ante dated cheque

ANSWER: D

43. A drawer in the bill of exchange can also be aA. PaymasterB. PayeeC. BankerD. Creditor

ANSWER: B

44. The rate at which RBI discounts approved bill of exchange isA. . Bank rateB. Interest rateC. Exchange rateD. Discount rate

ANSWER: D

45. The lien is defined inA. the Sale of Goods ActB. the Transfer of property ActC. the Indian Contract ActD. the Companies Act

ANSWER: A

46. The apex institution in agricultural finance isA. NABARDB. EXIM BankC. Reserve Bank of IndiaD. IDBI

ANSWER: A

47. Who is primarily liable on a promissory note?A. HolderB. MakerC. DraweeD. . Endorser


7 of 22 2/16/2015 2:32 PM

ANSWER: B

48. How many parties are mainly involved in Promissory Note?A. OneB. FiveC. TwoD. Three

ANSWER: C

49. In a bill of exchange, drawee is the personA. who draws the billB. on whom the bill is drawnC. to whom the payment of the bill is to be madeD. to whom the payment of the bill is not to be made

ANSWER: B

50. . ------------ is a dead chequeA. Post dated chequeB. Stale chequeC. Ante dated chequeD. Pre dated cheque

ANSWER: B

51. Name the person to whom the amount of the cheque is payable?A. DrawerB. PayeeC. DraweeD. Acceptor

ANSWER: C

52. Discounting of bills of exchange isA. Clean advanceB. Secured advanceC. Neither clean advance nor secured advanceD. Unsecured advance

ANSWER: C

53. Expand NEFTA. National Electronic Fund TransferB. Neutral Electronic Fund TransferC. Nominal Electronic Fund TransferD. Natural Electronic Fund Transfer

ANSWER: A

54. Which section of Negotiable Instruments Act 1881, defines endorsementA. Section 10B. Section 15C. Section 18D. . Section 20

ANSWER: B


8 of 22 2/16/2015 2:32 PM

55. ------ is an endorsement in which the endorser merely signs his name on the book of the instrumentwithout mentioning the name of the person to whom the instrument is endorsed

A. Blank EndorsementB. Restrictive EndorsementC. Qualified EndorsementD. San Frais Endorsement

ANSWER: A

56. Blank endorsement is otherwise called asA. Full EndorsementB. Qualified EndorsementC. General EndorsementD. Special Endorsement

ANSWER: C

57. What does the term "PIN" stands forA. People Identification NumberB. Personal Instruction NumberC. Personal Identification NumberD. Personal Information Number

ANSWER: C

58. The ATM installed at bank premises is called as -------- ATMA. . Off-siteB. BranchC. None of the aboveD. On-site

ANSWER: D

59. KYC meansA. Know Your CardB. Know Your CostC. Know Your CustomerD. Know Your Creditor

ANSWER: C

60. The first bank in India to be given an ISO certificateA. Canara BankB. SBIC. Central Bank of IndiaD. Indian Bank

ANSWER: A

61. RTGS meansA. Real Towards Gross SettlementB. Real Turn Gross SettlementC. Real Technique Gross SettlementD. Real Time Gross Settlement

ANSWER: D

62. In which system computers are based on the centralized processing concept?


9 of 22 2/16/2015 2:32 PM

A. Multi-user computer networkingB. Stand alone computer networkingC. Processing computer systemD. Frame computer system

ANSWER: A

63. . Core banking is a __________ branch computerization modelA. centralizedB. decentralizedC. unifiedD. ATM

ANSWER: B

64. objective of computerization in India is toA. make the work life more meaningfulB. replace men with machinesC. control the manpowerD. control the economy

ANSWER: B

65. ATMs are primarily used for performing the __________ functionsA. InfrastructureB. Computer basedC. BankingD. Hospitalized

ANSWER: C

66. Expand ECSA. Electronic Clearing SystemB. Electronic Centered SystemC. Electronic Cross SystemsD. Electronic Conversion Systems

ANSWER: A

67. EFT is introduced byA. IRDAB. RBIC. SEBID. NSE

ANSWER: B

68. . ________ is a technology that allows you to access your bank account from a mobile deviceA. Home BankingB. Mobile BankingC. Internet BankingD. Television Banking

ANSWER: B

69. . ____ is the result of combining technology and traditional bank services through websites thatcustomers use to access their bank accounts

A. Home Banking


10 of 22 2/16/2015 2:32 PM

B. Mobile BankingC. Internet BankingD. Television Banking

ANSWER: C

70. A ______ is the market for short term bills which are generally of 3 months durationA. Bill marketB. Money marketC. Credit marketD. Open market

ANSWER: A

71. A Garnishee order is an order issued byA. Income tax officerB. Official liquidatorC. CourtD. . RBI

ANSWER: C

72. If the endorser signs his name only, the endorsement is said to beA. Blank EndorsementB. Conditional EndorsementC. Restricted EndorsementD. Full Endorsement

ANSWER: D

73. The paying banker who makes cash payment of a cross cheque at the counter shall be liable for the lossof

A. Drawer of the chequeB. True owner of the chequeC. Collecting bankerD. the First endorser

ANSWER: B

74. Who can cancel the crossing on a cheque?A. PayeeB. Paying bankerC. EndorserD. Drawer

ANSWER: D

75. A negotiable instrument drawn or make in India is called_______ instrumentA. InlandB. ForeignC. TimeD. . Clean

ANSWER: A

76. Drawing of two parallel transverse lines on the face of the cheque is calledA. Special crossingB. General Crossing


11 of 22 2/16/2015 2:32 PM

C. Upper CrossingD. Lower Crossing

ANSWER: B

77. Addition of the name of a banker across the face of a cheque is called asA. General crossingB. Special crossingC. Upper CrossingD. Lower Crossing

ANSWER: B

78. The following one is a negotiable instrument, negotiable by usage or customA. Bill of ExchangeB. Accommodation BillC. Promissory NoteD. Share warrant

ANSWER: D

79. The most important feature of a negotiable instrument isA. Free transferB. Transfer free from defectsC. Right to sueD. a & b

ANSWER: D

80. The safest form of crossing isA. General crossingB. Special crossingC. Double crossingD. Account payee crossing

ANSWER: D

81. A Cheque which is not crossed is calledA. . Uncrossed chequeB. Open chequeC. Order chequeD. Bearer cheque

ANSWER: D

82. An order cheque can be converted into a bearer cheque by means ofA. Sans recourse endorsementB. Special endorsementC. Blank endorsementD. Sans frais endorsement

ANSWER: C

83. Endorsement signifies that theA. Endorser has a good titleB. Endroser's signature is genuineC. . Previous endorsements are genuineD. All of the above


12 of 22 2/16/2015 2:32 PM

ANSWER: D

84. In which year, Electronic Fund Transfer (EFT) was launched in India?A. 1994B. 1995C. 1999D. 2000

ANSWER: B

85. Maximum limit on the amount of individual transactions permitted for fund transfer per transaction isA. Rs. 1 LakhB. Rs. 2 LakhsC. Rs. 5 LakhsD. Rs. 10 Lakhs

ANSWER: C

86. In which year, SWIFT was established?A. April 1973B. July 1973C. May 1973D. October 1973

ANSWER: C

87. . --------- allows worldwide financial institutions to exchange standardized messages relating tointernational financial transaction

A. NEFTB. SWIFTC. ECSD. EPS

ANSWER: B

88. To done banking through WAP (Wireless Application Protocol) enabled mobile phone, customer shouldget which type of connection?

A. TelephoneB. InternetC. TelevisionD. Electrical

ANSWER: B

89. When the banking operations are carried out through electronic means, it take the form ofA. E-bankingB. M-bankingC. T-BankingD. None of the above

ANSWER: A

90. . --------- credit refers to a series of electronic payment instructions that are generated to replace properinstruments

A. Electronic Payment SystemB. Electronic Clearing ServiceC. Electronic Data Interchange


13 of 22 2/16/2015 2:32 PM

D. None of the aboveANSWER: B

91. . ----- has been introduced for the purpose of networking of banksA. Generic ArchitectureB. Core BankingC. Centralized Fund Management SystemsD. INFINET

ANSWER: A

92. To facilitate the growth in government securities market and for smoother trading, RBI introduced a---------- which provides for screen based trading of government securities

A. Security Settlement SystemB. Negotiated Dealing SystemC. . Security Marketing SystemD. Security Safety System

ANSWER: B

93. Banking transaction that takes placed in a virtual ambience on the website of a banking company istermed as

A. Internet BankingB. Telephone BankingC. Mobile BankingD. Modern Banking

ANSWER: A

94. All banks having operations in India and intending to offer Internet Banking services to the public mustobtain an approval for the same from

A. Government of IndiaB. Central BankC. Reserve Bank of IndiaD. All of the above

ANSWER: C

95. Telephone Banking has found a high level of acceptability especially among ----------- level of peopleA. ProfessionalB. SalariedC. RetiredD. Business

ANSWER: A

96. --------- are workstations that act as a nucleaus of the functioning of the telephone banking systemoperated through fully computer-integrated telephone system

A. Telephone centreB. Enquiry centreC. Computer centreD. Call centre

ANSWER: D

97. The ATM pin is ---------- digit code number used for authenticiating and authroizing the use of the ATMfacility by a customer


14 of 22 2/16/2015 2:32 PM

A. FourB. FiveC. ThreeD. Six

ANSWER: A

98. ------- is a technique under which effective customer authorization takes place on the basis of thebiological attributes of a bonafide person

A. ManometricsB. BonametricsC. MiometricsD. Biometrics

ANSWER: D

99. What is the major function performed by the ATM's worldwideA. Passboook update facilityB. Cash withdrawalC. Mini-statement facilityD. Funds transfer facility

ANSWER: B

100. . ------ ATMs are a boost to smaller banks who cannot afford opening the ATMs in many places aspossible

A. LobbyB. Off-siteC. InternationalD. Shared

ANSWER: D

101. In which year and date, Reserve Bank of India was established?A. May 1, 1935B. April 1, 1935C. . October 1, 1935D. December 1, 1935

ANSWER: B

102. A convenient way of making a purchase or paying for a service without holding cash is called asA. Electronic Payment SystemB. Electronic Clearing ServiceC. National Electronic Fund TransferD. Electronic Fund Transfer

ANSWER: A

103. . ---- constitutes the foremost element of an electronic payment systemA. BankerB. CustomerC. MerchantD. Shopping mall

ANSWER: B

104. An electronic payment device that involves the use of networking services where by the e-customer


15 of 22 2/16/2015 2:32 PM

issues digital cheques to e-merchant malls to settle transactions carried over the internetA. Electronic cashB. e-purseC. Digital chequesD. Electronic card

ANSWER: C

105. Electronic cash is also called asA. Hot moneyB. Digital moneyC. Instant moneyD. Easy money

ANSWER: B

106. A wallet-sized smart card, embedded with programmable chip which storeds e-money to be used in avirtual trading environment for making payment is called

A. Electronic cardB. Digital cardC. Electronic purseD. Electronic cash

ANSWER: C

107. Use of personal computers at home for conducting their banking operation with their banks is calledA. Mobile BankingB. Anywhere BankingC. Internet BankingD. Home Banking

ANSWER: D

108. is popularly known as Plastic cards or Plastic moneyA. Smart cardsB. Electronic cardsC. Credit cardsD. Debit cards

ANSWER: C

109. Credit cards first emerged in 1920sA. IndiaB. ChinaC. USAD. UK

ANSWER: C

110. Which of the first subsidiary bank of State Bank of India to do whole computerization of all itsbranches?

A. State Bank of PatialaB. State Bank of HyderabadC. State Bank of SaurashtraD. State Bank of Travancore

ANSWER: A


16 of 22 2/16/2015 2:32 PM

111. In which year, MICR system for cheque was implemented in India?A. 1987B. 1996C. 1990D. 1993

ANSWER: A

112. Which is the first bank to introduce Credit card in India?A. Bank of IndiaB. Global Trust BankC. IndusInd BankD. Central Bank of India

ANSWER: D

113. Which is the first bank to launch Debit card in India?A. Standard Chartered BankB. Citi BankC. . ABN Amro BankD. American Express Bank

ANSWER: B

114. Which was the first Joint Stock Bank established by an Indian establishment?A. Bank of BombayB. Oudh Commercial BankC. Bank of HindustanD. Hindustan Commercial Bank

ANSWER: C

115. Which is the first change in banking sector of India after independence?A. Nationalization of BanksB. Social control on BanksC. Establishment of SBID. Establishment of RBI

ANSWER: B

116. When were the banks nationalized in our country?A. On 1st July 1965B. On 19th July 1969C. . On 15th April 1980 and 19th July 1969D. On 16th April 1980 and 1st July 1965

ANSWER: C

117. What are the major change in banking sector of India after nationalization of Banks?A. Expansion of bank branchesB. Cut throat competition in Banking sectorC. Introduction of Banking Regulation ActD. Establishment of RBI

ANSWER: A

118. The following one is absolutely essential for a special crossingA. Two parallel transverse lines


17 of 22 2/16/2015 2:32 PM

B. Words "And company?C. Words "Not negotiable"D. Name of a banker

ANSWER: D

119. The reasonable period allowed in India for the presentation of a cheque isA. 1 yearB. 3 monthsC. 9 monthsD. depending upon custom

ANSWER: B

120. If cheque is crossed an account payee, this is direction of, toA. . Payee, paying bankerB. Payee, collecting bankC. Drawer, paying bankD. Drawer, collecting bank

ANSWER: D

121. Which of the following is not the form of E-banking?A. Internet BankingB. Direct Deposit in BankC. Electronic cheque conversionD. Mobile banking

ANSWER: B

122. The electronic funds transfer using a two-way communications system is referred to as aA. Pay or chequeB. Wire transferC. Depository transfer chequeD. Payable through draft

ANSWER: B

123. Interest payable on savings bank accounts is?A. Regulated by State GovernmentsB. De-regulated by RBIC. Regulated by RBID. Regulated by Finance Minister

ANSWER: B

124. The usual deposit accounts of banks areA. Current accounts, electricity accounts and insurance premium accountsB. Current accounts, post office savings, bank accounts and term deposit accountsC. Loan accounts, savings bank accounts and term deposit accountsD. Current accounts, savings bank accounts and term deposit accounts

ANSWER: D

125. Fixed deposits and recurring deposits are?A. Repayable after an agreed periodB. Repayable on demandC. Not repayable


18 of 22 2/16/2015 2:32 PM

D. Repayable on demand or after an agreed period as per bank's choiceANSWER: A

126. Accounts are allowed to be operated by cheques in respect of?A. Both savings bank accounts and fixed deposit accountsB. Both Savings bank accounts and current accountsC. Both savings bank accounts and loan accountsD. Other savings bank accounts and cash accounts only

ANSWER: B

127. Which of the following is correct statement?A. No interest is paid on current deposit accountsB. Interest is paid on current accounts at the same rate as term deposit accountsC. The rate of interest on current accounts and savings accounts are the sameD. No interest is paid on any deposit by the bank

ANSWER: A

128. When a bank returns a cheque unpaid, it is called?A. Payment of the chequeB. Drawing of the chequeC. . Dishonour of the chequeD. Taking of the cheque

ANSWER: C

129. Largest shareholder (in percentage shareholding) of a Nationalized bank is ?A. RBIB. NABARDC. Government of IndiaD. . LIC

ANSWER: C

130. An institution whose principle business is accepting deposits and forwarding loans is calledA. Mutual Fund BusinessB. CompanyC. . BankD. Ombudsman

ANSWER: C

131. Which of the following term do not represent any part of Banking technology?A. NEFTB. RTGSC. ITCD. EPS

ANSWER: C

132. The chief activities of bank do not includeA. Providing loansB. . Accepting depositsC. Providing lockersD. . Selling real estate properties

ANSWER: D


19 of 22 2/16/2015 2:32 PM

133. The MICR cheque details given. Pick the wrong statementA. MICR means Magnetic Ink CharacterB. MICR introduced to increase the standards of the chequesC. MICR issued by bankD. In the MICR portion, the customer allowed to write in it

ANSWER: D

134. Which electronic fund transfer system run on the basis of "Deferred Net Settlement"A. NEFTB. RTGSC. . SMSD. BIFSC

ANSWER: A

135. In both cases of RTGS and NEFT, the service charges are decided byA. CustomerB. IMFC. . BankerD. Transferee

ANSWER: C

136. was not nationalized in 1969A. Punjab National BankB. Oriental Bank of CommerceC. CBank of BarodaD. Union Bank of India

ANSWER: B

137. Which of the following is not the name of the bank functioning in India?A. Central Bank of IndiaB. UCO BankC. Aegon ReligareD. Dena Bank

ANSWER: C

138. RBI is known as lender of last resort becauseA. It has to meet the credit need of citizen to whom no one else willing to lendB. Bank lend to go to RBI as a last resortC. It comes to help banks in times of crisisD. All of the above

ANSWER: C

139. Cheque is payable onA. DemandB. UsageC. Fixed future dateD. After sight

ANSWER: A

140. Garnishee order is issued by a


20 of 22 2/16/2015 2:32 PM

A. Police officerB. Revenue OfficerC. CIDD. Court of law

ANSWER: D

141. Electronic purse may have following number of storage spaceA. Only oneB. TwoC. SeveralD. No storage space

ANSWER: C

142. The click and portal model facilitates areA. Traditional bankingB. Paperless bankingC. C. Virtual bankingD. b and c

ANSWER: D

143. Electronic payment system is an ?A. SoftwareB. HardwareC. ApplicationD. Package

ANSWER: C

144. What are the major change in banking sector of India after nationalization of Banks?A. Expansion of bank branchesB. Cut throat competition in Banking sectorC. Introduction of Banking Regulation ActD. Establishment of RBI

ANSWER: A

145. What is the number of nationalized banks in India?A. 20B. 28C. 27D. 19

ANSWER: D

146. Which committee has recommended introduction of Smart card?A. Rangarajan CommitteeB. Saraf CommitteeC. Nayak CommitteeD. Pannirselvam Committee

ANSWER: B

147. A card is used to obtain cash, goods or services automatically debiting the payments to the cardholders bank account instantly upto the credit balance which exists in the customers bank account

A. Credit


21 of 22 2/16/2015 2:32 PM

B. GoldC. DebitD. Business

ANSWER: C

148. are workstations that act as a nucleaus of the functioning of the telephone banking system operatedthrough fully computer-integrated telephone system

A. Telephone centreB. Enquiry centreC. Computer centreD. Call centre

ANSWER: D

149. is the most favoured technology for secure Internet banking serviceA. Public Key InstructionsB. Public Key InformationC. Public Key InfrastructureD. People Key Infrastructure

ANSWER: C

150. When the banking operations are carried out through electronic means, it take the form ofA. E-bankingB. M-bankingC. T-BankingD. None of the above

ANSWER: A

Staff NameSenthilkumar.L.


22 of 22 2/16/2015 2:32 PM