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Q - 1 .The minimum percentage of Priority Sector advances to be maintained by foreign banks in India

40%
18%
32%
60%

Q - 2 .Which was the first Mutual Fund started in India:

SBI Mutual Fund
Kotak Pioneer Mutual Fund
Indian Bank Mutual Fund
None of the above

Q - 3 .The time taken to convert cash into raw materials, semi finished goods, finished goods and into cash , is known as

Trade cycle
Cash cycle
Operating cycle
Revolving cycle

Q - 4 .A stop payment instruction of a cheque can be issued by:

The payee
The endorsee
The drawer
The drawee

Q - 5 .Minimum Bank Rate is:

3%
4%
5%
None

Q - 6 .RTGS stands for :

Real Time Settlement System
Real Time Gross Settlement System
Real Gross Settlement System
Real Gross Time Settlement System

Q - 7 . The combination of two or Companies into a single Company where one survives with it s name (or a combined new name )

Merger or Amalgamation
Diversification.
Combination.
All the above

Q - 8 .In a Garnishee Order, the banker on whom garnishee order served is:

Judgement Debtor s Creditor
Judgement Creditor s Creditor
Judgement Creditor s Debtor
Judgement Debtor s Debtor

Q - 9 .If number of partners in a firm is 22 in respect of trading activity the firm is

Limited company
Large partnership
Illegal association
None of these

Q - 10 . A bill is drawn on 16th Feb, 2001 which is payable after 30 days. It will mature on

13.3.2001
15.3.2001
20.3.2001
None of these.

Q - 11 .Your bank receives a cheque in inward clearing which has not been signed by the account holder. Which one of the following reasons you will select to return the cheque?

Cheque is not signed by the payee
Refer to the drawer
Cheque is not signed by the drawee
Cheque is not signed by the endorsee

Q - 12 . Mr.Rao wants to give mandate to his minor son

It cannot be accepted since the mandate is to be given in favour of a minor
It can be accepted as the minor can act as an agent
Mandate can be accepted to operate only credit transactions and no debit should be allowed
None of the above.

Q - 13 .Mandate given by the illiterate account holder should be

Attested by manager who confirms and certifies thee same.
Attested by Notary public or Magistrate.
It is enough if we ask for a Mandate letter with LTI which has to be attested an authorised official.
We cannot accept a mandate from an illiterate customer at all.

Q - 14 .Long Form Audit Report (LFAR) is prepared and submitted by

RBI inspectors
Internal inspectors
Statutory auditors
Concurrent auditors

Q - 15 . Section 171 of Indian Contract 1872, gives to a Banker an absolute right of general lien on all goods and securities received by the Banker. The Bankers Lien is __________

Set off
An Implied Pledge.
Mortgage
Hypothecation

Q - 16 . In one of the joint Savings Bank accounts, you as a Branch Manager received information that one of the depositors had been declared as Insolvent? The depositors other than the undischarged insolvent claim the balance lying in the SB account. Can you pay?

You can pay to the other deposit holders jointly
You can pay to the other deposit holders, dividing the balance proportionately
You can pay as per instruction jointly signed by the solvent depositors and the official receiver of the undischarged
You can pay to the other deposit holders, dividing the balance proportionately, after taking RO permission

Q - 17 .In case of a Non Resident Indian which of the following is permitted?

A SB account in joint names in Candian dollars
A Fixed deposit account in Australian dollars
A NRNR account in Indian rupees
An EEFC account in Indian rupees

Q - 18 .As per FIMMDA s guidelines, the Mid-Office is responsible for

Dealing activities
Risk Management
Reconciliation
Confirmation of deals

Q - 19 . Combining of two existing Companies into a new Company in which the both the existing companies extinguish and anew Company is made or created is known as

Consolidation.
Merger
Strategic Alliance
Acquisition

Q - 20 .In bank s parlance credit risk in lending is

Default of the banker to maintain CRR
Default of the banker to maintain SLR
Default of the banker to release credit to the customer
Default of the customer to repay the loan

Q - 21 .An order cheque is endorsed as without recourse to me by the endorser. This endorsement is known as

Blank endorsement
Restrictive endorsement
Endorsement in full
Sans recourse endorsement

Q - 22 .Once a Bearer is always a bearer is applicable in respect of

A bill of exchange payable after 90 days
A cheque
A demand promissory note
A certificate of deposit

Q - 23 .Loan for fish rearing is covered under Prirority Sector as ________ advances

Direct Agriculture
Indirect Agriculture
Self Employment Scheme
Allied to indirect Agriculture

Q - 24 .The apex institution which handles refinance for agriculture and rural development is called:

RBI
SIDBI
NABARD
SEBI

Q - 25 .Mergers are of 4 types. 1) Vertical mergers 2) Conglomerate mergers 3) Concentric Merger What is the 4th type.

Practical mergers
Horizondal Mergers
Typical mergers
Foreign Merger

Q - 26 .State which of the following is/are incorrect: i) A Certificate of Deposit (CD) is issued by a banker ii) In a garnishee order the banker on whom the order is issued is judgement debtors debtor iii) A book debt advance is secured by a mortgage iv) CAMEL model is used by RBI inspectors

i and ii
ii
ii and iv
iii

Q - 27 .Sec ___ of RBI Act,1934 gives sole power to RBI to issue currency notes

10
18
22
26

Q - 28 . IT authorities have seized a deposit receipt from a customer. The deposit has matured. Now the deposit receipt is presented by IT authorities for payment along with over due interest

Overdue interest can be paid if the deposit is renewed for a further period of 15 days.
Overdue interest can be paid because the receipt is IT authorities.
The branch can pay interest after getting permission from R.O.
None of the above.

Q - 29 .The Capital Adequacy Ratio is :

6%
8%
9%
10%

Q - 30 .The right of set-off is:

Customer s Right
Customer s Obligation
Banker s Right
Banker s Discretion

Q - 31 .Obligation of a Banker to maintain secrecy is applicable to

Existing deposit accounts
Existing safe deposit accounts
Closed deposit accounts
a,b and c (existing/closed)

Q - 32 .Your bank grants a working capital finance to ABC & Co, a partnership firm, against hypothecation of inventory. The charge is to be registered with Registrar of Companies within

30 days from the date of advance
30 days from the date of hypothecation agreement
30 days from the date of sanction of loan
all of the above

Q - 33 .Mr.Atmaram as director of a Ltd company expired. Bank received a cheque signed by Mr.Atmaram as director of the Ltd company. The bank

Can honour the cheque only after obtaining confirmation from other directors
Can honour the cheque
Cannot hounour the cheque
The company should issue a stop payment instructions to the bank

Q - 34 .Your banks customer XYZ Ltd, enjoys a CC limit of Rs.1,00,000.00 The CC account shows a credit balance of Rs,10,205.00. The relationship between your bank and XYZ Ltd is:

Debtor/Creditor
Creditor/Debtor
Bailor/Bailee
Bailee/Bailor

Q - 35 .Charge created on LIC Policy is:

Hypothecation
Pledge
Assignment
Mortgage

Q - 36 . A formal and mutually agreed commercial collaboration between Companies is known as

Merger
Amalgamation
Strategic Alliance
Subsidiary

Q - 37 .Bank s Assets are classified in to standard assets, substandard assets doubtful assets and loss assets, based on the recommendat

Rangarajan
Narasimham
Ghosh
Tandon

Q - 38 . Executors and administrators can delegate their powers to a third party to operate the account

By mandate
By power of attorney
By obtaining permission from RO.
None of the above

Q - 39 .A holder for value is :

A bank allows one of its clients to withdraw against clearing of a cheque.
A bank which maintains high net worth customers accounts
A bank which collects cheques for non customers
A bank which handles high value clearing cheques

Q - 40 .In a securitisation deal, the role of a Special Purpose Vehicle (SPV) is

To acquire large Non Performing Loans (NPA)
To acquire such loans from a bank or financial institution
To acquire such loans for a transfer price, with or without recourse
To manage the acquired loans for the purpose of realization or holds them as investment till maturity

Q - 41 . Nomination rules for deposit accounts have been introduced under the following rules of Banking Regulation Act,21-03-1900 05:00:00 AM

Sec. 45
Sec. 45ZA F
Sec. 45ZA B
None of the above

Q - 42 . Mr. Subramanian who is an Ordinary SB account holder of your branch wants to nominate Mr. Alfred Clinton, an U.S. national, who is his friend. Is that allowed?

Yes it is freely permitted
Yes it is freely permitted, but at the time of settlement of claim and repatriation to the nominee, branch has to take RBI permission
Yes it is freely permitted, subject to Regional office approval
Yes it is freely permitted, subject to CO approval

Q - 43 .An account holder draws a cheque on a :

Banker of the Payee
Banker of the Drawee
Banker of the Drawer
Banker of the Endorsee

Q - 44 .The regulator for Mutual Funds in India is:

FIMMDA
AMFI
RBI
SEBI

Q - 45 .FIMMDA s guidelines cover the following products, except one:

Call Money
Cross Currency Interest Rate swaps
Commercial Paper
Certificate of Deposit

Q - 46 . According to Section 130 of Transfer of Property Act the transfer of an actionable claim can be effected only by the execution of an instrument in writing signed by transferor or by his duly authorized agent This mode of transfer of an actionable claim is known as ________

Assignment
Lien
Mortgage
Hypothecation

Q - 47 .Interest is calculated on actual/365 days basis in respect of the following products, except one :

Call Money
Notice Money
Term Money
GOI dated securities

Q - 48 .John & James are friends aged 14 & 15 respectively. They want to open a joint account in your bank. You will

Allow them to open a joint account to be operated jointly
Allow them to open a joint account with operating instructions Either or Survivor
Allow them to open a joint account with operating instructions Former or Survivor
Allow them to open a joint account with operating instructions Any one or Survivor

Q - 49 .Tele banking service is based on

Virtual Banking
Online Banking
Voice processing
Core Banking

Q - 50 .In respect of Regional Rural Banks, the share holding pattern is:

Central Government 50%,State Government 35%,Sponsoring Bank 15%
Central Government 50%,State Government 15%,Sponsoring Bank 35%
Central Government 15%,State Government 35%,Sponsoring Bank 50%
Central Government 35%,State Government 50%,Sponsoring Bank 15%

Online Tests for Principles & Practices of Banking

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