Principles & Practices of Banking Online Test, Principles & Practices of Banking Online exam, Principles & Practices of Banking Free Exam, Principles & Practices of Banking Exam, Principles & Practices of Banking Questions and answer, Principles & Practices of Banking Study Guide, Principles & Practices of Banking Material

Q - 1 . 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 - 2 .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 - 3 .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 - 4 . A formal and mutually agreed commercial collaboration between Companies is known as

Merger
Amalgamation
Strategic Alliance
Subsidiary

Q - 5 .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 - 6 . 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 insolvent
You can pay to the other deposit holders, dividing the balance proportionately, after taking RO permission

Q - 7 .The minimum percentage of Priority Sector advances to be maintained by foreign banks in India

40%
18%
32%
60%

Q - 8 .Which one of the following is not barred by law of limitation?

Pledge
Hypothecation
Banker s lien
Guarantee

Q - 9 . Coupon rate refers to

Bank rate
PLR
The annual interest rate specified on bonds
All the above.

Q - 10 .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 - 11 .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 - 12 .Except one of the following others are part of Public Sector Banks:

State Bank of Hyderabad
Central Bank of India
Regional Rural Bank, sponsored by a nationalized bank
HDFC Bank

Q - 13 .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 - 14 .Hypothecation is applicable in the case of

Movable goods
Immovable property
Book debts
Corporate guarantee

Q - 15 .Long Form Audit Report (LFAR) is prepared and submitted by

RBI inspectors
Internal inspectors
Statutory auditors
Concurrent auditors

Q - 16 .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 - 17 .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 - 18 .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%

Q - 19 .Match the following: i)IRDA A) Insurance ii)Garnishee Order B) Judgement debtor iii)ATMs C)

i-D,ii-C,iii-A,iv-B
i-A,ii-B,iii-D iv-C
i-B,ii-A,iii-D,iv-C
i-D,ii-C,iii-B,iv-A

Q - 20 .Sec 131 of NI Act,1881 extends protection to the

Paying Banker
Collecting Banker
Advising Banker
Issuing Banker

Q - 21 . 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 - 22 .A cheque is dated 12/05/05.the due date is:

08/12/2005
14/09/2005
11/12/2005
None

Q - 23 .Bancassurance is

An insurance scheme to insure bank deposits
An insurance scheme to insure bank advances
A composite financial service offering both bank and insurance products
A bank deposit scheme exclusively for employees of insurance companies

Q - 24 .The right of set-off is:

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

Q - 25 . 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 - 26 . A joint account is operated by A and B as both or survivor. A dies and a cheque signed by A and B are presented forpayment. The cheque

Can be paid.
Can be paid after getting confirmation from B.
Can be paid after getting the consent of the legal heirs of A.
None of the above.

Q - 27 .A banker is expected to honour the cheques within the specified banking hours as per Section of NI Act,1881

22
25
31
65

Q - 28 .A customer has the flexibility to select the number of instalments and also vary his monthly instalment amounts subject to certain conditions. Identify the account

An EEFC account
A variable recurring deposit account
A flexi deposit account
A roaming current account

Q - 29 .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 - 30 .Except one of the following others are known as Non Fund based facilities:

Letters of Credit
Bank Guarantees
Co-acceptance of Bills
Trust Receipt

Q - 31 .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 - 32 .Law of limitation is not applicable in respect of :

Advance against pledge of shares
CC granted against hypothecation of inventory
Term loan secured by mortgage of Plant & Machinery
Bank Term Deposit

Q - 33 .The regulator for Mutual Funds in India is:

FIMMDA
AMFI
RBI
SEBI

Q - 34 .FIMMDA s guidelines cover the following products, except one:

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

Q - 35 .Cash Budget is a statement of

Cash-Non cash funds
Cash receipt and Cash payments
Another name for cash flow
None

Q - 36 . 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 - 37 .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 - 38 .The apex institution which handles refinance for agriculture and rural development is called:

RBI
SIDBI
NABARD
SEBI

Q - 39 .A Co-Operative Bank operating in different States are regulated by:

State Co-Operative Societies Act
Banking Regulation Act
Multi Unit Co-Operative Societies Act
Banking Laws (applicable to Co-Operative Societies)

Q - 40 . 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 - 41 .A company which pools money from investors and invests in stocks, bonds, shares is called

A bank
An insurance company
Bancassurance
Mutual Fund

Q - 42 .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 - 43 .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 - 44 . The minimum period for which commercial papers can be issued is

12 months
1 month
3 months
CP can be issued for maturity from 7 days to 1 year

Q - 45 .The term Credit Management covers

Capital adequacy norms
Risk management including Asset/Liability management
Credit appraisal decision and review of loans & advances
All of the above

Q - 46 .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 - 47 . 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 - 48 .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 - 49 . Registration of a society is required

To sue in it s own name as a separate legal entity.
To open a bank account.
To facilitate receipt of donations/grants from foreign countries.
None of the above.

Q - 50 . 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

Online Tests for Principles & Practices of Banking

countDown(3600,"status");