Banking PDF

8/9/2019 Banking PDF

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1) a 2) b 3) d 4) e 5)a 6)a 7) c 8) c 9) e 10) d

11) c 12) e 13) b 14) c 15) a 16) a 17) c 18) b 19) c 20) d

21) c 22) d 23) e 24) e 25) d 26) e 27) b 28) e 29) c 30) d

31) a 32)c

1) At present number of public sector banks inIndia:

a) 26

b) 27

c) 28

d) 29

e) None of these

2) At present number of private sector banks inIndia:a) 21

b) 22

c) 23

d) 24

e) None of these

3) Nationalisation of 14 major banks in…………………..

a) 1949

b) 1955

c) 1959


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d) 1969

e) None of these

4) Nationalisation of six banks in………………………….. a) ) 1949

b) 1955

c) 1959

d) 1969

e) 1980

5)The largest commercial bank in India:

a) SBI

b) ICICI Bank

c) PNB

d) HDFC Bank

e) None of these

6) The Second largest public sector commercial bank in

India:

a) Punjab National Bank

b) Bank of Baroda

c) Bank of India

d) IDBI Bank

e) Corporation Bank

7) The Largest private sector commercial bank in India:


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a) AXIS Bank

b) HDFC Bank

c) ICICI Bank

d) Federal Banke) None of these

8) The second largest private sector commercial bank in

India:

a) IDBI Bank

b) AXIS Bankc) HDFC Bank

d) ICICI Bank

e) None of these

9) The first Indian bank to open a branch outside India in

London in 1946:a) State Bank of India

b) Punjab National Bank

c) Bank of Baroda

d) Canara Bank

e) Bank of India

10) Latest Public Sector Bank inIndia:

a) SBI

b) ICICI Bank

c) HDFC Bank


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d) IDBI Bank

e) None of these

11) Latest Private Sector Bank inIndia:a) Federal Bank

b) South Indian Bank

c) YES Bank

d) Kotak Mahindra Bank

e) None of these

12) The Largest foreign bank operating inIndia:

a) Citi Bank

b) HSBC

c) Barclays Bank

d) ABN Amro Bank

e) Standard Chartered Bank

13) Which bank is the largest issuer of credit cards

inIndia?

a) SBI

b) ICICI Bank

c) HDFC Bank

d) IDBI Bank

e) None of these

14) Who is the current MD & CEO of ICICI Bank?


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a) Shyamala Gopinath

b) Shikha Sharma

c) Chanda Kochhar

d) Renu Challue) Sushma Nath

15) The Chairman of Indian Banks Association (IBA) (For

2011-12):

a) M.D.Mallya

b) Pratip Chaudhuric) D.Subbarao

d) Subir Gokarn

e) U.K.Sinha

16) The largest bank inChina:

a) Industrial and Commercial Bank of China Ltd. (ICBC)b) Hongkong and Shanghai Banking Corporation(HSBC)

c) Deutsche Bank AG

d) BNP Paribas

e) DBS Bank

17) Bad loans in banking terminology are generally

known as…………………

a) CBS

b) PLR

c) NPAs


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d) CRR

e) None of these

18) In Financial Term NPA, P stands for……….. a) Potential

b) Peforming

c) Prodiction

d) Professional

e) None of these

19) Which of the following pairings is wrong?

(Bank & Country)

a) Citi Bank : USA

b) ABN AMRO Bank : TheNetherlands

c) BNP Paribas :Russia

d) Hongkong and Shanghai Banking Corporation(HSBC):United Kingdom

e) Deutsche Bank AG :Germany

20) Which of the following pairings is wrong?

(Bank & Country)

a) Barclays Bank : United Kingdom

b) J P Morgan Chase Bank :USA

c) Societe Generale :France

d) Standard Chartered Bank :South Africa

e) Sonali Bank :Bangladesh


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21) The New Capital Adequacy Framework prescribed for

the banks is commonly known as ………….

a)KYC normsb)Credit Policy

c)Basel Accord

d)Fiscal Policy

e) None of these

22) The central bank of theUnited States:a) Citi Group

b) Bank ofAmerica

c) JP Morgan Chase

d) Federal Reserve

e) Bank for International Settlements

23) Which of the following pairings is wrong? (Bank &

Tagline)

a) State Bank ofIndia: With you all the way

b) Punjab National Bank : The name you can BANK upon!

c) Bank ofBaroda:India’s International Bank

d) Oriental Bank of Commerce : Where every individual

committed

e) Bank of India : The World’s local bank

24) Axis Bank previously called as……….


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a) IDBI Bank

b) HDFC Bank

c) YES Bank

d) ICICI Banke) UTI Bank

25) Which of the following is not a commercial bank?

a) IDBI Bank

b) HDFC Bank

c) ICICI Bankd) EXIM Bank

e) AXIS Bank

26) Which of the following pairings is

wrong?(Bank/Financial Institution & Establishment Year)

a) RBI : April 1, 1935b) SBI : July 1, 1955

c) NABARD : July 12, 1982

d) NHB : July 9, 1988

e) SIDBI : April 1, 1990

27) The largest bank inPakistan:

a) State Bank of Pakistan

b) Habib Bank Limited

c) Sonali Bank

d) DBS Bank


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e) None of these

28) Consider the following sentences:

A. Non Performing Asset (NPA) is an asset, including aleased asset, becomes non performing when it ceases to

generate income for the bank.

B. Core banking is a general term used to describe the

services provided by a group of networked bank

branches. The platform where communication

technology and information technology are merged tosuit core needs of banking is known as Core Banking

Solutions.

C. Banking Ombudsman is an independent dispute

resolution authority provided by RBI to deal with

disputes that bank customers have with their respective

banks.D. Base Rate is the minimum rate of interest that a bank

is allowed to charge from its customers. Unless

mandated by the government, RBI rule stipulates that no

bank can offer loans at a rate lower than base Rate to

any of its customers.

E. NBFC or Non Banking Financial Companies is a

company in India, which is registered under the

Companies Act, 1956, and which provides banking

services without meeting the legal definition of a bank.

Which of the statements given above is/are correct?


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a) Only A & B

b) Only B & C

c) Only C & D

d) Only D & Ee) All are correct

29) Which of the following is the Apex level institution

for housing?

a) EXIM Bank

b) NABARDc) NHB

d) SIDBI

e) None of these

30) Which of the following is not a nationalized bank?

a) PNBb) Indian Bank

c) Bank of India

d) Karnataka Bank

e) Canara Bank

31) Which of the following banks was merged with ICICI

Bank in 2010?

a) Bank of Rajasthan

b) Bank of Maharashtra

c) Karnataka Bank


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d) State Bank ofIndore

e) Global Trust Bank

32) Which of the following banks was merged with SBI in2010?

a) State Bank of Travancore

b) State Bank of Mysore

c) State Bank of Indore

d) State Bank of Saurashtra

e) State Bank of Hyderabad

ANSWERS

1) a 2) b 3) d 4) e 5)a 6)a 7) c 8) c 9) e 10) d

11) c 12) e 13) b 14) c 15) a 16) a 17) c 18) b 19) c 20) d

21) c 22) d 23) e 24) e 25) d 26) e 27) b 28) e 29) c 30) d31) a 32)c

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monday, january 28, 2013

BANK EXAM QUESTIONS

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Fill up the blanks with suitable word/words

1. Banking Regulation Act was passed in .......... (1949)

2. Reserve Bank of India Act was passed in .......... (1934)

3. Reserve Bank of India was nationalised in .......... (1st

January, 1949)

4. Industrial Finance Corporation of India was established

in .......... (1948)

5. Industrial Development Bank of India was setup in

.......... (July, 1964)

6. Industrial Credit and Investment Corporation of India

was established in ..........(1955)

7. Export and Import Bank of India was set up in ..........

(1982)

8. Exchange banks specialise in financing .......... (Foreign

trade)

9. Current deposits are also called .......... (Demand


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deposits)

10. Loans which can be called back by the bank at a very

short notice of one day to fourteen days are called ..........(Money at call)

11. The maturity period of term loans is more than ..........

(One year)

12. Banks are called public conservators of ..........(Commercial virtues)

13. Unit banking system originated and grew in ..........

(U.S.A.)

14. Banking system which is very popular and successfulin India is .......... (Branch banking system)

15. 14 major commercial banks were nationalised in

.......... (July, 1969)

16. A nine member committee on the financial reforms

under the Chairmanship of Narasimham submitted its

report on .......... (December 1991)

17. Lead Bank Scheme was introduced by the Reserve


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Bank towards the end of .......... (1969)

18. NABARD was set up on .......... (12th July, 1982)

19. Regional Rural Bank Act was passed in .......... (1976)

20. At present there are .......... regional rural banks in

India. (196)

21. The Small Industries Development Bank of India wasset up by the Government of India in .......... (April, 1990)

22. The market which deals in trade bills, promissory

notes and government papers or bills, which are drawn

for short-periods is called .......... (Money market)

23. A financial market in which short-term papers or bills

are brought and sold is known as .......... (Bill market)

24. In order to protect the interests of investors and

regulate the working of stock exchanges, the

Government in 1988 set up the .......... (Stock Exchange

Board of India)

25. The financial market for long-term funds is known as

.......... (Capital market)


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26. A banker is a .......... debtor. (Privileged)

27. A banker’s lien is always .......... lien. (General)

28. To claim a banking debt ..........in writing is necessary.

(An express demand)

29. .......... is necessary to exercise a lien (No agreement)

30. The word customer signifies a relationship in which

.......... is of no essence. (Duration)

31. For wilful dishonour of a cheque .......... damage is

payable by the banker. (Vindictive)

32. Accepting a bill and making it payable at the bank is

called .......... (Domiciliation of a B/E)

33. Honouring of a cheque is a .......... obligation.

(Statutory)

34. The relationship between the banker and customer is

primarily that of a .......... (Debtor and creditor)

35. The minimum period for which a fixed deposit can be


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accepted is .......... (45 days)

36. Money can be withdrawn any number of times in

.......... (Current A/C)

37. ..........must be obtained from a responsible person

before opening an account. (A letter of introduction)

38. If there are no withdrawals for a period of 12 months

in a savings bank account, the account is said to be ..........(Dormant)

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BANKING AWARENESS SET 6

1.Which of the following bodies tightened the norms for

foreign exchange risk cover in India mentioning that only

companies with a networth of Rs 200 crore can use

derivatives to hedge against risk of volatility in currency

rates?

a. IMF

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b.Reserve Bank of India

c. SEBI

d.Union Ministry of Finance

Ans: b

2. Which body in India finally provided tax exemption on

the 9.5 per cent interest income on PF deposits for 2010-

11?

a.Reserve Bank of India

b. Income Tax Departmentc.Employees’ Provident Fund Organisation

d.Corporate Affairs Ministry

Ans: b

3.(1) The report on Customer Service in Banks by a

committee chaired by M. Damodaran, former Chairmanof the Securities and Exchange Board of India (SEBI) that

was released on 3 July 2011 recommended an increased

deposit insurance cover of Rs.5 lakh so as to encourage

individuals to keep all their deposits in banks.

(2) The panel also suggested blocking of lost ATM cards

through SMS and immediate restoration of funds in case

of non-dispensation of cash at an ATM within 5 working

days.

Which of the above is not true?

a. Only 1


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b. Only 2

c. Both 1 & 2

d. None of the above

Ans: b

4. The Reserve Bank of India (RBI) in a bid to tame

inflationary pressure hiked the short-term indicative

policy rate (repo rate) by 50 basis points on 26 July 2011.

The repo rate currently stands at what percentage?

a. 7%b. 7.5%

c. 8%

d. 8.5%

Ans: c

5. Which bank posted a 99 per cent drop in net profit atRs 21 crore for the fourth quarter ended 31 March 2011

against Rs 1867 crore during the corresponding period in

2010?

a. Indian Overseas Bank

b. State Bank of India

c. Bank of India

d. United Bank of India

Ans: b

6. Who did global payments processing company


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MasterCard appoint as the General Manager, South Asia

and Country President, India?

a. T. V. Seshadri

b. Vicky Bindrac. Tunde Lemo

d. Ajay Banga

Ans: a

7. Government of India on 19 July 2011 appointed Usha

Ananthasubramanian, former general manager of Bankof Baroda (BoB) as executive director of which public

sector lender?

a. Central Bank of India

b. Punjab National Bank

c. United Bank of India

d. Gramin BankAns: b

8. Name the public sector lender that selected Metlife as

its partner for a proposed foray into the life insurance

segment.

a. Syndicate Bank


c. Corporation Bank


Ans: b


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9. Which bank signed a memorandum of understanding

with Dewan Housing Finance Corporation (DHFL) under

which DHFL will distribute home loans to Yes Bank'scustomers?

a. Canara Bank

b. ABN Amro bank

c. Yes Bank

d. HSBC

Ans: c

10. Which life insurance company in India launched a

new non-linked health insurance plan, Jeevan Arogya?

a. HDFC Standard Life Insurance Co. Ltd

b. Life Insurance Corporation of India

c. IDBI Fortis Life Insurance Company Ltd.d. SBI Life Insurance Co. Ltd

Ans: b

11. Which of the following public sector banks in

November 2011 froze its lending to the power sector?

a. State Bank of India

b. Allahabad Bank

c. Punjab National Bank


Ans: b


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12. Which Indian bank on 10 May 2011 raised benchmark

prime lending rate 75 basis points to 14% following

raising of interest rates by RBI by basis points on 3 May2011?

a. State Bank of India

b. Union Bank

c. Punjab National Bank

d. Bank of Baroda

Ans: a

13. The Reserve Bank of India on 26 April 2011 fined 19

banks, including the country's top private and foreign

banks for violating its guidelines on derivatives. Which is

the only public sector bank on the list of banks to be

fined?a. State bank of India


c. Bank of India

d. Indian Bank

Ans: a

14. The Reserve Bank of India on 25 August 2011

released its Annual Report for 2010-11. Which of the

following was not discussed in the Annual Report the

Central Board of the RBI?


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a. assessment of the macroeconomic performance

during 2010-11

b. prospects for 2011-12

c. working and operations of the Reserve Bank and itsfinancial accounts

d. role of regulatory bodies in controlling the financial

markets

Ans: d

15. Reserve Bank of India (RBI) panel headed by headedby Usha Thorat, Director, Centre for Advanced Financial

Research and Learning (CAFRAL) on 29 August 2011 came

up with suggestion on non-banking finance company

(NBFC). Which of the following related to this statement

is not true?

1. The panel suggested the central bank to insist on aminimum asset size of more than Rs.25 crore for

registering any new non-banking finance company

(NBFC)

2. Transfer of shareholding, direct or indirect, of 25 per

cent and above, change in control, merger or acquisition

of any registered NBFC will require prior approval of the

Reserve Bank.

3. Tier-I capital for capital to risk weighted assets ratio

(CRAR) purposes would be specified at 12 per cent to be

achieved in three years for all registered deposit-taking


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and non-deposit-taking NBFCs.

4. NBFCs would be subject to regulations similar to banks

while lending to stock brokers and merchant banks and

similar to stock brokers, as specified by the Securities andExchange Board of India (SEBI)

a. 1 & 4

b. 2 & 4

c. Only 4

d. Only 1

Ans: d

16. Which Indian PSU bank in tune with its plans to

expand its retail division in the UK entered the mortgage

market in the country for the first time?

a. Punjab National Bank

b. Oriental Bank of Commercec. State bank of India

d. Indian Overseas Bank

Ans: c

17. Which of the following banks set up two loan

processing centres for the small and medium enterprise

(SME) segment on a pilot basis in Bangalore & in New

Delhi in September 2011?

a. Corp Bank

b. United Bank of India


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c. Syndicate Bank

d. Bank of Baroda

Ans: c

18. The government suspended M Ramadoss for alleged

violations in issuing insurance cover to an airline during

his stint as head of another state-run insurer. To which

insurance group did he belong to?

a. New India Assurance

b. LICc. GIC

d. ICICI Insurance

Ans: a

19. Which of the following banks in early May 2011

entered into a tie-up with non-banking financecompanies such as Future Capital, Bajaj Finance, and

Reliance Capital to grow its retail portfolio?

a. Central Bank of India

b. State Bank of India

c. Bank of India

d. HDFC Bank

Ans: a

20. Which are the two Gujarat-based cooperative sector

lenders on which Reserve bank of India imposed a


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financial penalty of Rs 1 lakh each for violation of various

rules, including anti-money laundering guidelines?

1. Shree MahalaxmiMercantile Co-operative Bank

2. Rander People's Co-operative Bank3. Abad District Co Op Bank

4. Ahd Mercantile Co-Op Bank Ltd

a. 1 & 2

b. 2 & 3

c. 1 & 4

d. 3 & 4Ans: (a)

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sunday, january 27, 2013

BANK EXAM QUESTIONS SET 5

201. The six more banks which were nationalised haddemand deposits and liabilities of

(a) Rs. 50 crores or above (b) Rs. 100 crores or above

(c) Rs. 150 crores or above (d) Rs. 200 crores or above

D

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202. The Lead Bank Scheme was introduced in

(a) 1968 (b) 1969

(c) 1974 (d) 1976B

203. The Lead Bank Scheme was introduced on the basis

of recommendations of

(a) Reserve Bank

(b) NABARD(c) Study group appointed by National Credit Council

under the chairmanship of Prof. D.R. Gadgil

(d) None of the above

C

204. Under the Lead Bank Scheme all the districts in thecountry have been allocated amongst

(a) Land development banks

(b) District co-operative banks

(c) 22 public sector banks and three private sector banks


C

205. The main functions of Lead Banks are

(a) Surveying the resources and potential for banking

development in its district


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(b) Assisting the small units and small borrowers and

other primary lending agencies

(c) Maintaining contacts and liasion with government and

semigovernment agencies(d) All the above

D

206. The Lead Bank in the district

(a) Does not have monopoly in the district

(b) Identifies the underbanked areas for opening itsbranches in the district

(c) Formulates the credit plans for all the banks in the

district

(d) All the above

D

207. The Lead Bank Scheme was launched towards the

end of 1969 for the following objectives

(a) Extension of institutional finance facilities to

neglected areas

(b) Extension of credit to priority sector

(c) Integration of various elements of development,

namely, infrastructure extension and credit

(d) All the above

D


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208. The Service Area Approach is in force since

(a) 1975 (b) 1978

(c) 1985 (d) 1988

D

209. The Industrial Development Bank of India was set up

in

(a) 1964 (b) 1969

(c) 1976 (d) 1981

A

210. Industrial Development Bank extends refinance for

(a) Small scale industrial units (b) Medium industrial units

(c) Both the above (d) None of the above

B

211. Small Industries Development Bank, set up by an Act

of parliament commenced operating on

(a) January 1, 1990 (b) March 1, 1990

(c) April 1, 1990 (d) April 2, 1990

A

212. Small Industries Development Bank of India is

wholly subsidiary of

(a) RBI (b) Exim Bank

(c) NABARD (d) IDBI


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D

213. Small Industries Development Bank of India’s Single

Window scheme means that a borrower is granted(a) Both term loan for fixed assets and loan for working

capital through the same agency, namely, SFCs or

Commercial Banks

(b) Both term and working capital through SIDBI itself

(c) Both term loan and working capital through IDBI

(d) None of the aboveA

214. National Equity Fund Scheme of SIDBI provides

(a) Equity type of support to small sector

(b) Rehabilitation of viable sick units in the SSI sector

(c) Both of the above(d) None of the above

C

215. The Industrial Finance Corporation of India was set

up in

(a) March 1948 (b) April 1948

(c) July 1948 (d) October 1948

C

216. IFCI extends financial assistance for


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(a) Setting new projects

(b) Expansion of existing units

(c) Diversification, renovation and modernisation of

existing unit(d) All the above

D

217. The Industrial Finance Corporation of India provides

loans to

(a) Industries in public sector only(b) Industries set up for export promotion

(c) Joint-stock companies in the public or private or joint

sector or co-operative sector


C

218. Industrial Credit and Investment Corporation of

India was set up in

(a) 1948 (b) 1950

(c) 1951 (d) 1955

D

219. The large part of the equity capital is held by

(a) Public sector institutions such as banks, LIC

(b) World Bank

(c) Reserve Bank


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A

220. ICICI provides financial assistance to(a) Small-scale industries (b) Medium-scale industries

(c) Large-scale industries (d) All the above

D

221. ICICI provides assistance by way of

(a) Long and medium-term loans and equity participation(b) Guaranteeing rupee and foreign currency loans raised

from other sources

(c) Underwriting issues of shares and debentures

(d) All the above

D

222. The most significant feature of ICICI’s operations is

(a) The foreign currency loans sanctioned by it

(b) To channelise World Bank funds to industry in India

and to build capital market in India

(c) The refinance facilities extended by it

(d) Both (a) and (b)

D

223. The State Financial Corporations have been set up

under


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(a) State Financial Corporation Act, 1951

(b) Reserve Bank of India Act

(c) Banking Regulation Act

(d) Companies Act, 1956A

224. State Financial Corporation extend financial

assistance to

(a) Proprietory and partnership firms

(b) Public and private limited companies and co-operative societies

(c) Hindu undivided family concerns

(d) All the above

D

225. The loans granted by SFC’s are refinanced by (a) IDBI (b) SIDBI

(c) RBI (d) both (a) and (b)

D

226. NABARD provides refinance to

(a) Scheduled commercial banks (b) Co-operative banks

(c) Regional rural banks (d) All the above

D

227. NABARD provides refinance assistance for


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(a) Promotion of agriculture

(b) Promotion of small scale industries

(c) Cottage and village industries

(d) All the aboveD

228. The Export-Import Bank of India was set up in

(a) July 1969 (b) April 1970

(c) January 1982 (d) April 1982

C

229. Exim Bank also provides

(a) Refinance facilities

(b) Consultancy and technology services

(c) Services of finding foreign markets for exporters

(d) All the aboveD

230. Exim Bank concentrates on

(a) Medium-term financing

(b) Short-term financing

(c) Short and medium-term financing

(d) Short and long-term financing

A

231. Exim Bank extends facility of


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(a) Rediscounting of foreign bills of commercial banks

(b) Advisory services to the exporters

(c) Research and market surveys

(d) All the aboveD

232. The Regional Rural Banks were set up in

(a) January 1, 1975 (b) March 11, 1975

(c) April 1, 1975 (d) October 2, 1975

D

233. Regional Rural Banks were set up vide

(a) Reserve Bank of India Act

(b) Regional Rural Banks Act, 1976

(c) NABARD Act

(d) None of the aboveD

234. Regional Rural Banks carry on normal banking

business as defined in

(a) Reserve Bank of India Act

(b) Banking Regulation Act, 1949

(c) Regional Rural Bank Act, 1976

(d) Companies Act, 1956

B


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235. Regional Rural Banks are classified under

(a) Land Developments Banks (b) Co-operative Banks

(c) Commercial Banks (d) Public Sector Banks

D

236. The chairman of Regional Rural Bank is appointed by

(a) State Government

(b) Reserve Bank of India

(c) Central Government

(d) Sponsoring bank in consultation with NABARDD

237. The issued capital of the Regional Rural Banks was

to be subscribed as under

(a) Fifty per cent by Central Government

(b) Fifty per cent by State Government(c) Thirty per cent by sponsoring bank

(d) All the above

D

238. Each Regional Rural Bank is managed by

(a) Board of Directors (b) Reserve Bank

(c) Sponsoring commercial bank (d) None of the above

A

239. Regional Rural Banks have been permitted to pay


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½% additional interest on

(a) All deposits accounts except current deposits

(b) All deposits accounts including current deposits

(c) Savings accounts and time deposits of less than threeyears


C

240. Land mortgage banks are renamed since 1996-97 as

(a) Land Development Banks (b) Co-operative CentralBanks

(c) NABARD (d) Lead Bank

A

241. Co-operative banks are

(a) Private sector banks (b) Public sector banks(c) Joint-sector banks (d) None of the above

A

242. Certificate of Deposit can be issued by

(a) Reserve Bank, NABARD and Exim Bank only

(b) Commercial banks and term lending institutions

(c) Scheduled commercial banks excluding regional rural

banks

(d) All the above

D


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243. The minimum acceptable amount under the Scheme

of Certificate of Deposit is

(a) Rs. 5 lakhs (b) Rs. 10 lakhs(c) Rs. 20 lakhs (d) Rs. 25 lakhs

D

244. Banks are promised to grant loans against

certificates of deposits

(a) Yes(b) No

(c) Yes, only to NRI

(d) Yes, only up to 50% of the face value

B

245. Commercial paper may be issued for a period of(a) 90 days (b) 91 to 180 days

(c) 181 days to one year (d) One year or two years

B

246. The commercial paper can be issued to raise

deposits by

(a) Commercial banks (b) Reserve Bank of India

(c) IDBI (d) Every non-banking company

A


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247. The aggregate amount of commercial paper issued

by a bank should not exceed

(a) Rs. 25 crores

(b) 5% of its demand and the liabilities(c) 75% of its fund based working capital limits

(d) 1% of its net worth

C

248. The Stock Exchange Board of India was set up by a

Special Act in(a) 1988 (b) 1989

(c) 1987 (d) 1990

A

249. Discount and Finance House of India Limited was set

up by RBI in(a) 1988 (b) 1989

(c) 1987 (d) 1990

A

250. Demand deposits mean

(a) Deposits withdrawable on demand by the depositor

(b) Current deposits

(c) Fixed deposits

(d) Short deposits

A


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251. Time deposits means

(a) The deposits which are lent to bank for a fixed period

(b) Time deposits include over due fixed deposits(c) Time deposits do not include recurring deposits as

well

(d) Time deposits do not include deposits under Home

Loan Account Scheme

A

252. Fixed deposits are for the bank

(a) Demand liability (b) Fixed asset

(c) Time liability (d) None of the above

C

253. Home Loan Account can be opened by any one in(a) His own name (b) The name of the spouse

(c) The name of the minor (d) All the above

D

254. The minimum amount of contribution to open a

Home Loan Account

(a) Rs. 5 (b) Rs. 10

(c) Rs. 20 (d) Rs. 30

D


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255. The Negotiable Instruments Act deals with

(a) Cheques, demand drafts, banker’s cheques

(b) Promissory notes, bills of exchange and cheques

(c) Bills of exchange, cheques and demand drafts(d) Cheques, demand drafts and saving bank withdrawal

forms

B

256. Which of the following are considered negotiable

instruments per custom?(a) Railway receipts (b) Demand drafts

(c) None of the above (d) Both the above

D

257. The term “escrow” means

(a) Conditional delivery of an instrument(b) An inchoate instrument

(c) Kite flying

(d) Window dressing

A

258. Hundies are

(a) Negotiable instruments by customs and usages

(b) Negotiable instruments by definition

(c) None of the above

(d) Both the above


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A

259. A person can not be called a holder of an instrument

if he has obtained the instrument(a) By unlawful means

(b) For an illegal consideration

(c) By fraud, coercion, duress or fear

(d) All of these

D

260. The relationship between a banker and a customer

is

(a) That of a debtor and a creditor

(b) That of a creditor and a debtor

(c) Primarily that of a debtor and a creditor

(d) (a) and (b) togetherC

261. To constitute a person as a customer

(a) There must be a single transaction of any nature

(b) There must be some sort of an account

(c) There must be frequency of transactions

(d) There must be dealing of a banking nature

B

262. The banker has a lien on


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(a) Bonds given for collection (b) Bonds given for safe

custody

(c) Bonds left by mistake (d) (a) and (b) together

A

263. The banker has a statutory obligation to

(a) Honour customers cheques

(b) Exercise lien

(c) Maintain secrecy of his customer’s accounts

(d) Honour customer’s bills A

264. In executing the standing instructions, there exists a

relationship of

(a) Trustee and beneficiary (b) Debtor and creditor

(c) Bailee and bailor (d) Agent and principalD

265. The most undesirable customer is

(a) A minor (b) A married woman

(c) An unregistered firm (d) An undischarged bankrupt

D

266. Contracts by lunatics in India

(a) Always valid (b) Always void

(c) Always voidable (d) At times voidable


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(a) Free transfer (b) Transfer free from defects

(c) Right to issue (d) (a) and (b) together

D

271. The document drawn by a debtor on the creditor

agreeing to pay a certain sum is called

(a) Promissory note (b) Cheque

(c) Bill of exchange (d) Draft

A

272. The following one is a negotiable instrument,

negotiable by usage or custom

(a) Bill of exchange (b) Share warrant

(c) Accommodation bill (d) Promissory note

B

273. In the case of negotiable instrument, the following

person generally gets a good title

(a) Finder of the lost instrument (b) Holder of a stolen

instrument

(c) Holder-in-due course (d) Holder of a forged

instrument

C

274. A cheque which is not crossed is called

(a) Open cheque (b) Bearer cheque


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(c) Uncrossed cheque (d) Order cheque

A

275. The safest form of crossing is(a) Account payee crossing (b) General crossing

(c) Special crossing (d) Double crossing

A

276. The following one is absolutely essential for a

special crossing(a) Two parallel transverse lines (b) Words “And

company”

(c) Words “Not negotiable” (d) Name of a banker

D

277. Not negotiable crossing is a warning to the(a) Paying banker (b) Collecting banker

(c) Holder (d) (a) and (b) together

C

278. A not negotiable crossing restricts what of the

cheque

(a) Transferability

(b) Negotiability

(c) Neither transferability nor negotiability

(d) Both transferability and negotiability


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B

279. An order cheque can be converted into a bearer

cheque by means of(a) Sans recourse endorsement (b) Special endorsement

(c) Blank endorsement (d) Sans frais endorsement

C

280. Endorsement signifies that the

(a) Endorser has got a good title(b) Endorser’s signature is genuine

(c) Previous endorsements are genuine

(d) All the above

D

281. One of the following endorsements is not a validone

(a) Conditional endorsement (b) Restrictive endorsement

(c) Partial endorsement (d) Facultative endorsement

C

282. Negotiability gives to the transferee what title of the

transferor

(a) Better title (b) No title

(c) The same title (d) No better title

A


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283. To get statutory protection, the paying banker must

make

(a) Payment to a holder(b) Payment in due course

(c) Payment to a holder in due course

(d) Payment to a drawee in case of need

C

284. The best answer for returning a cheque for want offunds in the account is

(a) Refer to drawer (b) Not provided for

(c) Exceeds arrangement (d) Not sufficient funds

D

285. When the amount stated in words and figuresdiffers, the banker

(a) Can honour the amount in figures

(b) Can honour the amount in words

(c) Can honour the smaller amount

(d) Can dishonour it

B

286. When a Garnishee order is issued by the court

attaching the account of a customer, the banker is called

(a) Garnishee (b) Garnishor


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(c) Judgement creditor (d) Judgement debtor

A

287. A collecting banker is given protection only when hecollects

(a) A crossed cheque (b) An order cheque

(c) A bearer cheque (d) A mutilated cheque

A

288. A collecting banker is given the statutory protectiononly when he acts as

(a) An agent (b) A holder

(c) A holder for value (d) A holder in due course

A

289. Collecting a cheque payable to the firm to theprivate account of a partner without enquiry constitutes

(a) Gross negligence

(b) Contributory negligence

(c) Negligence under remote grounds

(d) Negligence connected with immediate collection of a

cheque

D

290. Bankers undertake the duty of collection of cheques

and bills because


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(a) Section 131 of the Negotiable Instruments Act

compels them to do so

(b) Section 85 of the Negotiable Instruments Act compels

them to do so(c) Collection is a must for a crossed cheque

(d) They want to do it as a service

D

291. The most risky charge from a banker’s point of view

is(a) Pledge (b) Hypothecation

(c) Mortgage (d) Lien

B

292. The most convenient charge from an industrialist’s

point of view is(a) Equitable mortgage (b) Legal mortgage

(c) Hypothecation (d) Lien

C

293. An equitable mortgage can be created in respect of

(a) Government securities (b) Real estate

(c) Wheat in a godown (d) Life policies

B

294. A charge where there is neither the transfer of


50/107

ownership nor the possession is called

(a) Hypothecation (b) Lien

(c) Pledge (d) Mortgage

A

295. The liability of the mortgager is gradually reduced in

the case of

(a) Equitable mortgage (b) Legal mortgage

(c) Usufructuary mortgage (d) Conditional mortgage

C

296. Real estate is not popular as a security because of

(a) Difficulties in ascertaining the title

(b) Difficulties in its valuation

(c) The absence of ready market

(d) Long-term nature of the loanA


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126. Margin of surrender value for the purpose of bank

loan is retained to the extent of

(a) 5%(b) 8%

(c) 10%

(d) 15%

ANS : C

127. Selective credit control covers(a) Margin

(b) Interest

(c) Level of credit

(d) All the above

ANS : D

128. Under which provisions is Selective credit control

governed?

(a) Section 49 of the Banking Regulation Act

(b) Section 3 of the Public Debt Act

(c) Section 21 of the RBI Act

(d) Section 131 of the Negotiable Instrument Act

ANS : C

129. Pledge of advance is made against

(a) Gold


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(b) Commodities

(c) Coins and notes

(d) All the above

ANS : B

130. What rate of interest is charged on the advances

made against Duty Draw Back Scheme?

(a) Same as of export advance

(b) Same as on working capital

(c) Same as of export refinance(d) Nil

ANS : D

131. Contract of insurance is a contract of

(a) Agency

(b) Indemnity(c) Bailment

(d) Guarantee

ANS : B

132. The insurance policy over the security is arranged

for in the name of the

(a) Borrower and endorsed in favour of the bank

(b) Bank

(c) Borrower



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ANS : A

133. Bank becomes pledge over the

(a) Supply bills(b) Demand bills

(c) Import bills

(d) Export bills

ANS : C

134. Who registers the firm?(a) Deputy Commissioner

(b) Bank

(c) Registrar of Firms

(d) Registrar of Companies

ANS : C

135. Which of the following are covered under pledge?

(a) Actual delivery of the goods

(b) Factory type pledge

(c) Constructive delivery of the goods

(d) All the above

ANS : D

136. Cash credit accounts are closed

(a) On the death of the agent

(b) On the death of the principal


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(c) On the death of the Managing Director of the

company


ANS : B

137. Industrial co-operatives covered under SSI can raise

loan without ceiling. The loan will be refinanced by

(a) IDBI

(b) RBI

(c) NABARD(d) DICGC

ANS : C

138. What is the minimum period of medium and long-

term loans?

(a) 12 months(b) 18 months

(c) 24 months

(d) 36 months

ANS : B

139. Which bank does not belong to State Bank Group?

(a) State Bank of Indore

(b) Banaras State Bank

(c) State Bank of Bikaner and Jaipur

(d) State Bank of Patiala


55/107

ANS : B

140. For which are the reserves maintained before

issuing the following?(a) One rupee notes

(b) One rupee coins

(c) All notes and coins

(d) RBI notes

ANS : D

141. At the time of first nationalisation which bank had

the highest deposits?

(a) Punjab National Bank

(b) Canara Bank

(c) Central Bank of India

(d) Bank of IndiaANS : C

142. New branch in rural and semi-urban area should

cover an average population of over

(a) 13,000

(b) 17,000

(c) 20,000

(d) 25,000

ANS : A


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143. The exchange rate is kept the same in all parts of

the market by

(a) Speculation

(b) Interest arbitrage(c) Exchange arbitrage

(d) Hedging

ANS : C

144. If all the banks in an economy are nationalised and

converted into a monopoly bank, total deposit creation(a) Will increase

(b) Will decrease

(c) Will neither increase nor decrease

(d) All the above

ANS : C

145. The purpose of international trade is

(a) Need for exports

(b) To encourage exports

(c) To promote international understanding

(d) To increase income of participation countries

ANS : D

146. The power of banks to create credit depends on

(a) Amount of cash with them and the safe ratio

(b) Safe ratio only


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(c) Amount of cash with them only


ANS : A

147. The money the banker creates is

(a) His asset

(b) His liability

(c) Both his asset and liability


ANS : B

148. High rate of investment may

(a) Reduce the amount of credit creation

(b) Create better chances for the credit creation

(c) Not affect the amount of credit in any way

(d) Lead to any of the above-mentioned occurrencesANS : B

149. The ‘monetary base for credit expansion’ consists of

(a) The total value of ‘high-powered money’

(b) The demand and time deposit liabilities

(c) The size of the deficit in the government’s budget

(d) All of these

ANS : A

150. A rise in the reserve ratio of banks


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(a) Will lead to an increase in the money supply

(b) Will lead to a proportionate increase in the money

(c) Will lead to a decrease in the money supply

(d) None of theseANS : C

151. The largest nationalised bank of India is

(a) Central Bank of India

(b) State Bank of India

(c) Bank of India(d) Reserve Bank of India

ANS : B

152. Commercial banks influence money supply through

(a) Printing of one rupee notes

(b) Augmentation of savings and time deposits(c) Provision of high denomination notes

(d) Creation of demand deposits

ANS : D

153. Which institution grants financial assistance

exclusively to the private sector industries in our

country?

(a) Unit Trust of India

(b) Life Insurance Corporation of India

(c) Industrial Credit and Investment Corporation of India


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(d) Industrial Finance Corporation of India

ANS : C

154. Who grants subsidy?(a) Government of India

(b) State Government

(c) RBI

(d) SBI

ANS : A

155. Minimum cash reserves fixed by law constitute

(a) A percentage of aggregate deposits of the bank

(b) A percentage of aggregate loans and advances of the

bank

(c) A percentage of capital and reserves of the bank

(d) None of the above statements is correctANS : A

156. The difference between the correct market value

and the loan value of a given security in banking terms, is

known as

(a) The collateral value

(b) The security value differential

(c) The margin

(d) All the above

ANS : C


60/107

157. An increase in bank rate, other things being equal,

will result into

(a) A decline in the cost of credit including greater andthe demand for borrowing

(b) An increase in the cost of credit discouraging demand

for credit

(c) No change in the cost of credit and the demand for

borrowing

(d) Cost of credit has no relationship with demand forborrowing

ANS : B

158. Inward remittances by foreign steamship and

airlines companies to finance their operating expenses in

the country are shown under(a) The credit side of the current account of balance of

payment

(b) The debit side of the current account of balance of

payment

(c) The credit side of the capital/account of balance of

payment

(d) The debit side of the capital account of balance of

payment.

ANS : A


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159. How many copies of bank’s lien are sent to the

company?

(a) One

(b) Two(c) Three

(d) Four

ANS : B

160. Find out the correct statement

(a) ‘Selective credit controls are superfluous in generalmonetary management

(b) ‘Selective credit controls have inverse relationship

with quantitative instruments of credit control

(c) ‘Selective credit controls are complimentary to

quantitative instruments of credit control

(d) None of above statements is correctANS : C

161. Bank rate policy as a weapon of credit control has

emerged from the Central Bank’s function as

(a) Bank of issue

(b) Lender of the last resort

(c) Banker’s bank

(d) All the above

ANS : B


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162. Open market operations are mainly used as

(a) A fiscal device which assists Government borrowing

(b) A monetary measure to regulate quantity of money in

circulation and the cash reserves of the commercialbanks

(c) A measure to counteract extreme trends in business

(d) A measure to influence the balance of payments

position

ANS : B

163. The variable reserve ratio has tremendous

possibilities of effective credit control in

(a) Under-developed economies

(b) Developed economies

(c) Both developed and under-developed economies

(d) Neither developed nor under-developed economiesANS : A

164. Discount rate on certificate of deposits is decided by

(a) RBI

(b) IBA

(c) SBI

(d) None of these

ANS : D

165. Sources to meet working capital are


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(a) Net working capital or liquid surplus

(b) Sundry creditors and advance payment received

(c) Bank finance for working capital

(d) All the above jointlyANS : D

166. What is Debt Equity Ratio?

(a) Ratio of long-term borrowing to tangible net worth

(b) Ratio of current assets to own tangible net worth

(c) Ratio of fixed assets to tangible net worth(d) None of the above

ANS : A

167. Intangible assets are

(a) Preliminary expenses

(b) Patents, copyright, goodwill(c) Losses which cannot be reduced from share capital

(d) All the above

ANS : D

168. What is Current Ratio?

(a) Ratio of total assets to total liabilities

(b) Earning capacity of unit

(c) Ratio of current assets to current liabilities


ANS : C


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169. Current Ratio represents

(a) Ability of the unit to meet its current liabilities out of

current assets(b) Ability of easy profit

(c) Ability of the unit to pay instalments of term-loan


ANS : A

170. Liability-side of the balance-sheet comprises(a) Capital and reserve

(b) Long-term liabilities

(c) Current liabilities

(d) All the above

ANS : D

171. The 15th day of a month is known as

(a) Customer’s Day

(b) Complaints Day

(c) Holiday


ANS : A

172. Inter-bank participation certificates are issued on

the recommendations of which committee?

(a) Ghosh


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(b) Vaghul

(c) Chakravarthy

(d) Narasimhan

ANS : B

173. A transferable letter of credit cannot be transferred

more than

(a) Once

(b) Twice

(c) Three times(d) Four times

ANS : A

174. If the word irrevocable or revocable is not indicated

in a letter of credit, then the credit shall be deemed as

(a) Revolving credit(b) Standby credit

(c) Revocable credit

(d) Irrevocable credit

ANS : C

175. Service charges on Foreign Letter of Credit are fixed

by

(a) IBA

(b) FEDAI

(c) RBI


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(d) IBRD

ANS : B

176. Exchange portion of Demand Bills purchased iscredited to which account?

(a) Discount

(b) Commission

(c) Exchange

(d) Interest

ANS : D

177. Unclaimed pass-books lying with the bank may be

cancelled and destroyed after how many years?

(a) 2

(b) 3

(c) 5(d) 10

ANS : B

178. The Government has allowed certain remission on

which of the following bills?

(a) Usance

(b) Demand

(c) Exchange

(d) All the above

ANS : A


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179. Export Credit Packing Advances sanctioned to SSI

exporters are covered under the credit guarantee

scheme of(a) DICGC

(b) ECGC

(c) DRI


ANS : B

180. Total investment in a company is

(a) Net fixed assets

(b) Shareholder’s funds plus term-liabilities

(c) The total assets of the company


ANS : B

181. The Deposit Insurance Credit Guarantee Scheme

was formed on

(a) July 1, 1975

(b) January 1, 1952

(c) January 1, 1962

(d) January 1, 1991

ANS : C

182. At present (March 1998) the maximum bank’s


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deposit interest rate is

(a) 9%

(b) 10%

(c) 11%(d) 12%

ANS : C

183. Banker’s cheque is valid from the issue date for

(a) 3 months

(b) 6 months(c) 12 months

(d) 24 months

ANS : B

184. Remittance means

(a) Despatch of issuable notes(b) Despatch of solid notes

(c) Despatch of coins

(d) All the above

ANS : D

185. For which of the following, minor is nor eligible for

(a) Making a will

(b) Taking a locker in his name

(c) Appointing nominee of a locker

(d) All the above


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ANS : D

186. A branch can be kept opened for Government

business on a public holiday on the orders of the(a) Collector

(b) Branch Manager

(c) Governor of the RBI

(d) Prime Minister

ANS : A

187. Who pays commission to banks for conducting

Government business?

(a) Government of India

(b) State Government

(c) RBI

(d) Central and State GovernmentsANS : C

188. Which country has the lowest rate of interest on

advances?

(a) India

(b) Switzerland

(c) Japan

(d) USA

ANS : B


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189. Concept of Banking Secrecy was converted into law

in

(a) 1924

(b) 1927(c) 1930

(d) 1934

ANS : D

190. The shares must be transferred in favour of the

bank if the advance exceeds(a) 1 lakh

(b) 2 lakhs

(c) 3 lakhs

(d) 5 lakhs

ANS : C

191. Bank’s charge over boats is registered with

(a) RBI

(b) SBI

(c) Port authorities

(d) Government of India

ANS : C

192. In April 2000 India’s trade deficit (exports and

imports) was $ billion

(a) 220.4


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(b) 112.3

(c) 467.8

(d) 100.5

ANS : B

193. With regard to the export policy of the Government

of India, find out the correct statement

(a) All commodities can be exported without licence

(b) Export licences are required for only a few items

(c) Export licences are required for all items(d) All the above

ANS : C

194. We can open a savings bank account in the sole

name of a minor if he completes age of

(a) 6 (b) 10(c) 18 (d) 21

ANS : B

195. The Banking Regulations Act, 1949 was enacted to

(a) Nationalise the banks

(b) Open regional rural banks

(c) Consolidate and amend the laws relating to banking

companies

(d) Inviting foreign banks

ANS : C


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ANS : C

200. The remaining six banks were nationalised on

(a) April 15, 1980(b) April 5, 1980

(c) April 1, 1980

(d) none of the above

ANS : A


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76. Maximum period of a usance bill considered by bank

is

(a) 6 months

(b) 9 months

(c) 12 months

(d) 24 months

ANS : A

77. Which of the bills has no grace period?



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(d) Contract of lease

ANS : C

81. The Government derives maximum revenue from(a) Income tax

(b) Customs

(c) Sales tax

(d) Excise duty

ANS : D

82. Which of the following may be adjudged as

insolvent?

(a) Minor

(b) Married woman

(c) Firm

(d) LunaticANS : B

83. X and Y have joint account. A Garnishee order was

served on X who does not have an individual account.

Bank shall

(a) Attach the joint account

(b) Attach 50% of the joint account like attachment

(c) Not attach the joint account

(d) All the above

ANS : C


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(d) 12 months

ANS : C

88. Bank conducts Government business at its branches

as an agent of

(a) RBI

(b) SBI

(c) Government of India

(d) None of the aboveANS : A

89. The validity period of a challan/bill passed by a

Treasury Officer is for

(a) 7 days

(b) 10 days(c) 14 days

(d) 20 days

ANS : B

90. A draft for Rs. 18,000 is issued in which series?

(a) OT

(b) TT

(c) OL

(d) OM

ANS : C


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91. Minimum period for which a locker can be hired is

(a) 1 week

(b) 3 months(c) 6 months

(d) 12 months

ANS : C

92. When a fixed deposit receipt is kept with the bank for

its safety, it is known as(a) Safe custody

(b) Safe deposit

(c) Locker

(d) Valid safe deposit

ANS : A

93. Rupee Traveller Cheques are for a period of

(a) 6 months

(b) 12 months

(c) 24 months

(d) Unlimited

ANS : D

94. India’s 7th Export Processing Zone is being set up at

(a) Mumbai

(b) Visakhapatnam


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(c) Cochin

(d) Chennai

ANS : C

95. Gilt-edged securities are

(a) Shares of a private limited company

(b) First-class Government securities

(c) Shares of a company


ANS : B

96. Certificate of Deposits can be issued for a minimum

period of

(a) 45 days

(b) 3 months

(c) 6 months(d) 1 year

ANS : B

97. Telegraphic Transfer Receipt is a

(a) Bearer instrument

(b) Order instrument

(c) Non-negotiable

(d) Business letter

ANS : C


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98. A gift cheque is

(a) A negotiable instrument

(b) An order instrument

(c) Simple receipt(d) A quasi-negotiable instrument

ANS : C

99. If a payee of a mail transfer does not maintain

account

(a) Banker’s cheque will be issued (b) M. T. will be credited to Sundry Deposit Account

(c) Draft will be issued

(d) New account will be opened

ANS : A

100. Which of the following can delegate his power to athird person?

(a) Liquidator

(b) Executor

(c) Individual

(d) Partner

ANS : C

101. Overdue interest for all types of deposits can be

paid in cash to

(a) Minor


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(b) Guardian

(c) Depositor

(d) Legal heirs of a deceased depositor

ANS : D

102. Which of the following has been withdrawn?

(a) Credit Monitoring System

(b) Credit Authorisation Scheme

(c) Credit Monitoring Arrangement

(d) None of the aboveANS : B

103. An executor of deceased account is appointed under

(a) Trust

(b) Court

(c) Will(d) Family tradition

ANS : C

104. Service area approach has been launched from

(a) January 1, 1990 (b) April 1, 1989

(c) April 1, 1992 (d) July 1, 1992

ANS : B

105. While granting an overdraft against the security of

life insurance policy, the


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advance value is computed on the basis of

(a) Total amount of the policy

(b) Paid-up value of the policy

(c) Surrender value of the policy(d) None of the above

ANS : C

106. Book-debits of a company can be charged to the

bank by way of

(a) Hypothecation(b) Pledge

(c) Mortgage

(d) Lien

ANS : A

107. Which of the following has issued Master shares?(a) RBI

(b) SBI

(c) UTI

(d) LIC

ANS : C

108. Which of the following schedules of Indian

constitution deals with banking?

(a) 5th

(b) 6th


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(c) 7th

(d) 8th

ANS :

109. Is there any limit for a currency transfer?

(a) 10 lakhs

(b) 25 lakhs

(c) No limit

(d) 1 crore

ANS : C

110. Currency notes deposited in the currency chest are

the property of

(a) Respective bank

(b) RBI

(c) SBI(d) Government of India

ANS : B

111. The minimum amount to effect a currency transfer

is

(a) Rs. 500

(b) Rs. 2,000

(c) Rs. 1,000 withdrawal deposit Rs. 500

(d) Rs. 5,000 multiples of Rs. 1,000

ANS : C


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112. Relationship between the RBI and the bank

maintaining currency chest will be of

(a) Trustee and beneficiary(b) Principal and agent

(c) Licensor and licensee

(d) Creditor and debitor

ANS : C

113. Indian currency means(a) One-rupee notes and coins under Indian Coinage Act,

1906

(b) Notes only

(c) Coins only


ANS : A

114. Which of the following notes cannot be exchanged?

(a) Solid notes

(b) Mismatched notes

(c) Mutilated notes

(d) All the above

ANS : B

115. Daily operations on the currency chest are advised

to


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(a) RBI

(b) Concerned bank

(c) Main branch of the district

(d) Through link branch to RBIANS : D

116. Suprious coins detected at the counter are sent to

(a) Mint

(b) Government of India

(c) RBI(d) IBRD

ANS : A

117. Signature on Re. 1 note is made by the Finance

Secretary but on the other notes by

(a) Prime Minister(b) President of India

(c) Governor of Reserve Bank of India

(d) Finance Minister

ANS : C

118. On a cheque instead of two parallel lines only bank’s

name is written. It is a

(a) General crossing

(b) No crossing

(c) Payable to bearer


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(d) Special crossing

ANS : D

119. A holder in due course of a cheque does not getprotection from

(a) Irregularity of endorsement

(b) Without consideration

(c) Default in the title

(d) All the above

ANS : B

120. What is the minimum period of reinvestment

deposits?

(a) 1 month

(b) 2 months

(c) 3 months(d) 6 months

ANS : D

121. Which of the following is a borrowing facility/loan

advance?

(a) Term finance

(b) Performance guarantee

(c) Bill received under letter of credit

(d) All the above

ANS : A


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122. Fixed assets ratio means

(a) Fixed assets to paid-up capital

(b) Net fixed assets to long-term funds(c) Net worth


ANS : B

123. A decline in the current ratio and liquidity ratio

indicates(a) Sound position

(b) Solvency

(c) Over trading

(d) Off shore

ANS : C

124. Marginal cost means

(a) Raw-material selling expenses and other variable

expenses

(b) Prime cost

(c) Margin of sales


ANS : A

125. Assignment means transfer of

(a) Ownership only


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(b) Possession only

(c) The policy-holder only

(d) A debit/right/property only

ANS : D


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26. When was SBI established ?

(a) April 1, 1935 (b) July 31, 1969

(c) May 5, 1955 (d) July 1, 1955ANS : D

27. Presently, the number of the public sector banks in

India is

(a) 8 (b) 20

(c) 28 (d) 14

ANS : C

28. The maximum number of partners in a non-banking

partnership firm is



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(a) 20 (b) 10

(c) 25 (d) 11

ANS : A

29. Which of the following banks are not commercial

banks ?

(a) Foreign Banks (b) State Co-operative Banks

(c) Private Banks (d) Regional Rural Banks

ANS : B

30. Regional rural banks are managed by

(a) The Central Government (b) The RBI

(c) The Board of Directors (d) The State Government

ANS : C

31. Under which of the following methods of note-issuethe RBI issues notes?

(a) Fixed Fiduciary System (b) Maximum Fiduciary

System

(c) Minimum Reserve System (d) Proportional Reserve

System

ANS : C

32. Cash deposit ratio means

(a) The percentage of cash-in-hand-balance with the

Central Bank to the aggregate deposits


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(b) The percentage of total cash money received as

deposits by banks

(c) All the above

(d) None of the aboveANS : A

33. Lead Bank Scheme was introduced in

(a) 1965 (b) 1969

(c) 1981 (d) 1992

ANS : B

34. A rise in the reserve ratio of banks

(a) Will lead to an increase in the money supply

(b) Will lead to a proportionate increase in the money

supply

(c) Will lead to a decrease in the money supply(d) None of these

ANS : C

35. Negotiable Instruments Act contains Sections as

(a) 137 (b) 142

(c) 138 (d) 141

ANS : B

36. Presently which bank is having the largest number of

foreign branches?


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(a) SBI (b) Canara Bank

(c) Bank of Baroda (d) Bank of India

ANS : C

37. A usance bill can be drawn for a minimum period of

(a) 1 day (b) 2 days

(c) 3 days (d) 4 days

ANS : A

38. Savings bank deposits are exempted from wealth taxup to

(a) 2 lakhs (b) 5 lakhs

(c) 10 lakhs (d) 20 lakhs

ANS : B

39. The amount of unclaimed banker’s cheques iscredited to

(a) Respective LHO (b) Respective Module

(c) Charges A/c (Misc) (d) Commission A/c

ANS : D

40. SBI is having maximum number of foreign offices in

(a) U.S.A. (b) U.K.

(c) West Germany (d) Japan

ANS : B


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41. How many export processing zones are in India?

(a) 5 (b) 6

(c) 7 (d) 8

ANS : B

42. FCNR accounts can be opened and maintained as

(a) Current Accounts (b) Savings Bank Accounts

(c) Term Deposit Accounts (d) Recurring Deposits

ANS : C

43. In the case of FCNR accounts the payment of interest

is effected in

(a) Indian Rupee

(b) Only in Pound (£)

(c) Same currency in which deposit stands

(d) YenANS : C

44. What comprises financial statement ?

(a) Profit and Loss Account (b) Balance sheet

(c) Funds-flow-statement (d) All the above

ANS : D

45. Profit and Loss Account represents

(a) Position of profit on a particular date

(b) Position of profit for a given period


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(c) Position of loss for a given period

(d) B and C above

ANS : D

46. Balance sheet is

(a) Statement of assets and liabilities on a particular date

(b) Statement of profit and loss on a particular date

(c) Position of cash balance

(d) Statement of assets and liabilities for a particular year

ANS : A

47. Balance sheet analysis helps in

(a) Ratio analysis (b) Trend

(c) Inter-firm comparison (d) All the above

ANS : D

48. Banks are required to maintain SLR under

(a) Section 24 of the Banking Regulation Act

(b) Section 49 of the Banking Regulation Act

(c) Section 24 of RBI Act


ANS : A

49. CRR is required to maintain in the form of

(a) Approved Government Securities

(b) Cash with RBI


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(c) Cash with bank

(d) All the above

ANS : B

50. Working capital requirement depends upon

(a) Level of activity (b) Types of business carried

(c) All the above (d) None of the above

ANS : C

51. For which of the following categories the paymentcan be stopped ?

(a) Gift cheque (b) Cheque

(c) Bill of Exchange (d) Promissory Notes

ANS : B

52. The introducer is liable to the bank under the(a) Indian Penal Code (b) RBI Act

(c) Contract Act (d) NI Act

ANS : B

53. Cheque bearing ‘Non-negotiable’ crossing is endorsed

to other person.

In this case the endorsee becomes

(a) Holder for value (b) Holder in due course

(c) Holder only (d) Endorsee only

ANS : A


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54. Which of the following are legal tender?

(a) Drafts (b) Cheques

(c) Currency notes (d) Government draftsANS : C

55. In which of the Acts specimen of the cheque, bill,

promissory note is given?

(a) Negotiable Instruments Act (b) Banking Regulation

Act(c) Mercantile Law (d) None of the above

ANS : D

56. Which of the following negotiable instruments can be

crossed to the banks?

(a) Cheques (b) Drafts(c) Bills of Exchange (d) All the above

ANS : C

57. Which of the following can be issued payable to

bearer?

(a) Cheque (b) Draft

(c) Bill of Exchange (d) Demand Promissory Notes

ANS : A

58. Protection is available to the collecting bank for the


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following

(a) Bill of Exchange (b) Promissory Note

(c) Usance Bills (d) Cheque

ANS : D

59. Crossing denotes

(a) Cheque cannot be transferred by the payee.

(b) A direction to the paying bank to pay the Cheque

through a bank.

(c) Cheque will be paid through clearing only.(d) Not payable across the counter but will be credited to

the account of the holder.

ANS : D

60. A ‘Non-negotiable’ crossing is a

(a) General crossing (b) Special crossing(c) Restricted crossing (d) Non-transferable crossing

ANS : A

61. A minor is admitted to the partnership firm as

(a) Agent (b) Partner

(c) Minor (d) Beneficiary

ANS : D

62. Legal guardian of minor is

(a) Nominated by the court for legal decision


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(b) Appointed by the court

(c) Natural guardian

(d) Executor-administrator appointed by the court

ANS : B

63. A shareholder has been defined by

(a) The Banking Regulation Act, 1949

(b) The Companies Act, 1956

(c) The Securities Contract Regulation Act, 1956

(d) Indian Contract ActANS : B

64. What is the maximum period for which a Public

Limited Company can raise deposits from the public?

(a) 12 months (b) 18 months

(c) 36 months (d) 24 monthsANS : C

65. Group of companies/firms/associates is defined in

(a) Companies Act (b) Sale of Goods Act

(c) Contract Act (d) Partnership Act

ANS : A

66. Which of the following cheques if paid do not get

statutory protection?

(a) Bearer cheques (b) Open cheques


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(c) Stolen cheques (d) All the above

ANS : B

67. Period of limitation for deposits starts from(a) Date of the cheque

(b) Date of presenting cheque on the counter

(c) Date of making deposits

(d) Date of refusal by the bank

ANS : B

68. Who supplies interest-charts for different maturities

and for different rates of interest ?

(a) IBA (b) RBI

(c) Government of India (d) IBRD

ANS : A

69. The minimum period under which a term deposit

under Reinvestment Plan can be issued is


(c) 6 months (d) 9 months

ANS : C

70. Rates of Interest on deposits are determined by

(a) IBA (b) Ministry of Finance

(c) RBI (d) Government of India

ANS : C


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71. Interest on the savings bank accounts is compounded

(a) Monthly (b) Yearly

(c) Quarterly (d) Half-yearlyANS : D

72. What is the limitation of the number of persons in a

joint savings bank account?

(a) Two (b) Four

(c) Five (d) No limitANS : D

73. The minimum average balance required to be

maintained in a current account to avoid payment of

‘ledger fee’ is

(a) Rs. 500 credit (b) Rs. 1,500 credit(c) Rs. 1,500 debit (d) Rs. 2,000 credit

ANS : B

74. Current account becomes dormant when there are

no withdrawals for the last


(c) 12 months (d) 18 months

ANS : B

75. How do you consider Joint Hindu Family?


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(a) Legal entity (b) Association of persons

(c) Partnership concern (d) All the above

ANS : A


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1. A banker should not grant loans and advances against

(a) Unquoted shares (b) Partly paid-up shares

(c) Its own shares (d) Third party’s shares ANS :C

2. In the case of a life policy, the banker should see

(a) The existence of insurable interest (b) The surrender

value

(c) The admission of age (d) All of the aboveANS :D

3. The most risky document of title to goods from the

banker’s point of view is

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