In this Question Paper given 50 questions for Legal & Regulatory Aspects of Banking, You have to complete them within 60 minutes. After clicking on FINISH TEST button a result of your test will be displayed.

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Q - 1 .Ramesh deposited Rs 10,000/ for 3 years . The Interest is compounded annually at 10% . What will be the amount receivable by Ramesh at the end of 3 year period

• 13310
• 13000
• 12000
• 13300

Q - 2 .As per SEBI guidelines , any entity /person engaged in the marketing and selling of mutual funds products is required to pass a certification test and obtain a registration number from case of

• SEBI (Securities and Exchange Board of India)
• AMFI(Association of Mutual Funds in India )
• NSE(National Stock Exchange)
• A, B & C

Q - 3 .The home currency price of one unit of a foreign currency is quoted eg USD 1 = Rs43.20

• Indirect quotation
• Exchange rate
• Rate of USD
• Direct quotation

Q - 4 .A borrower need not bring any matching contribution from long term sources in respect of

• Export Receivables
• Finished goods produced for a specific export order
• Adhoc limits
• A & B

Q - 5 .A company has a networth of Rs.5 lacs. Term liability Rs.10 lacs, Fixed Asset of Rs.16 lacs and Current Asset Rs.25 lacs. There is no intangible asset or ONCA. It's net working capital is

• Rs. 10 lakhs
• Rs. 1 lakh
• Rs. 9 lakh
• Rs. (-) 1 lakh

Q - 6 .____is the value of an established business over and above the value represented by it s tangible assets

• Assets
• Liabilities
• Goodwill
• None of the above

Q - 7 .A Mortgage of the mortgaged property is called

• Sub-mortgage
• Second Mortgage
• Re-mortgage
• Fraudulent Mortgage

Q - 8 .EEFC can be opened in

• Rupees
• Any one of the four designated currencies
• One of the permitted currencies
• AMUS

Q - 9 .Creditors Velocity expresses the

• Maximum period for which credit is given
• Average period of credit enjoyed
• Minimum period of credit given
• Minimum period for which credit enjoyed

Q - 10 .A credit facility will be classified as NPA if_____remains past due for one quarter

• Interest
• Instalment
• A or B
• A & B

Q - 11 .Opening stock of raw material is Rs.30 lacs, closing stock is Rs.50 lacs. Annual purchase is Rs.500 lacs. What is the average period of holding of Raw Materials?

• 2 M
• 1.5 M
• 1 M
• NOA

Q - 12 .When shares are issued at higher than the face value of the shares they are said to be issued at a

• Discount-
• Par-
• Premium
• None of the above

Q - 13 .The form of Balance sheet and Profit and loss account of a Banking Company is prescribed in forms A and B of _______ schedule of the Banking Regulation Act 1949

• Second
• Third
• First
• Fourth

Q - 14 .Gold Loans are given only to properly introduced persons because of

• RBI s directives
• Bank will lose the right to sell the gold if the pledgee s title is defective
• Sec.131 of Negotiable Instrument Act
• All the above

Q - 15 .A computer Accounting system runs based on a set of instructions called the software programmes developed by a person who is a computer software professional and he is called ________

• Programmer
• Software Engineer
• IT man
• None of the above

Q - 16 .The capital which is stated in the Memorandum of Association is known as

• Memorandum Capital
• Paid up capital
• Authorised capital
• Issued capital

Q - 17 .An Annuity is an ordinary Annuity if,

• Payments are required to be made at the beginning of each period
• Payments are required to be made at the middle of each period
• Payments are required to be made at ordinary installments
• Payments are required to be made at the end of each period

Q - 18 .A floating charge means

• Charge at the time or before the company is floated
• Charge on all floating assets of the company
• An equitable charge on all assets of the company
• Any of the above

Q - 19 .The State Govt. wants to seize the goods pledged to bank as the borrower has defaulted in payment of tax. In this case,

• Govt dues enjoys priority over bank dues
• Bank dues enjoys priority over Government dues
• Both enjoys equal priority
• The Government cannot seize the goods

Q - 20 . In case of Direct quotation if the forward rate is more than spot rate the base currency is called as being at -----

• Discount
• Forward rate
• Spot rate
• Premium

Q - 21 .For a large and medium units DSCR should be

• Maximum 2:1
• Maximum 1.5:1
• Minimum 2:1
• Minimum 1.5:1

Q - 22 .The amount which the firm owe to outsiders

• Assets
• Capital
• Liabilities
• Intangible assets

Q - 23 .The joining of a new person into the existing partnership as a partner is called

• Retirement of a partner
• Resolution of a partnership
• Good will
• Admission of a partner

Q - 24 .Accounting software may be written in any one of the computer languages such as

• Windows, UNIX etc
• JAVA C+ etc
• COBOL, Foxpro etc
• None of the above

Q - 25 .Tangible Networth is computed by

• Total Tangible Asset less outside liabilities
• Capital, free reserves & surplus less Intangible Asset
• Networth less Intangible Asset
• All the above

Q - 26 .Financial leverage means

• use leveraged lease to plan tax liability
• High degree of solvency
• Law bank finance
• Use of more debt capital to increase profit

Q - 27 .The Companies Act prohibits issue of any preference share that is _______

• Cumulative
• Redeemable
• both a and b
• Irredeemable

Q - 28 .The discount rate which equals the present value of promised flow to the current market price /purchase price. This is known as

• Yield to maturity
• NPV
• IRR
• Treasury bills

Q - 29 .The auctionable claim is assigned in favour of more than one assignee at different points of time. The priority of charge is determined with reference to date of

• Execution of notice of assignment
• Execution of the written instrument for assignment
• Receipt of notice of assignment
• NoA

Q - 30 .The amount which the owner of the business has invested in the firm and can claim from the firm is known as ___________

• Capital
• Loan
• Term Loan
• Fixed Asset

Q - 31 .A person who owes money to a firm , mostly on account of credit sales of goods is called

• Creditor
• Debtor
• Borrower
• lender

Q - 32 .Under the ____________ capital method two accounts are maintained for each partner viz current account and capital account

• Fixed Capital Method
• Fluctuating capital method
• Equity capital Method
• Preference share capital

Q - 33 .The Net Working Capital refers to

• Liquid surplus
• Borrowers Contributions from long term source to short term use
• Excess Current Asset over Current Liability
• All the above

Q - 34 .The Marine Insurance Policy should be expressed in

• Rupees
• US Dollars
• Same Currency in which the LC is drawn
• Any foreign currency

Q - 35 .Who cannot file a complaint under Consumer Protection Act?

• Banks
• State Government
• Public Interest Litigation Group
• Persons receiving services free of charge

Q - 36 .As per the Second method of lending the borrowers contribution from long term source

• is minimum 25% of total current assets
• is restricted to 25% of working capital gap
• is 25% of other current liabilities
• any amount which the unit can bring

Q - 37 .The formation of a company is governed by the rules and regulations as contained in

• Indian Companies Act
• RBI act
• BR Act
• None of the above

Q - 38 .The long term use is 120% of long term source. This indicates the unit has

• CR 1.2
• Negative TNW
• Low Capital
• Negative NWC

Q - 39 .Total Current Asset of a unit is Rs.300 lacs. Other Current Liabilities is Rs.200 lacs. The MPBF as per Ist Method & 2nd method can be

• 75 and 25 lacs
• 25 lacs and 75 lacs
• Rs.100 lacs & Rs.150 lacs
• Rs.20 lacs & Rs.80 lacs

Q - 40 .What is the minimum period to be allowed to drawee to decide on acceptance / rejections of a usance bill

• 2 Days
• 48 Hours
• 48 Hrs including public holidays
• 48 hrs excluding public holidays

Q - 41 .What is the formula for charging compound interest with Annual Compounding

• I = Pnr
• P+I
• A = P( 1+r)n
• Any of the 3

Q - 42 .Diversion means

• Diversifying to activities not related to main business
• Retrenching employees
• Use of Current Assets for payment of Term Liability
• Use of Current Liabilities for long term use

Q - 43 .The value which the bond holder gets on maturity is called

• Maturity value
• NAV
• the redemption value
• IRR

Q - 44 .Liabilities that will arise on the happening of certain event

• Current liabilities
• Term Liabilities
• Contingent Liabilities
• None of the above

Q - 45 .While calculating the value of (1+.10)3 (to the power of 3) the same can be calculated

• Manually
• using calculator
• using MS Excel
• all the above

Q - 46 .The charge by way of lien over goods belonging to a company must be registered with Registrar of Companies within a period of

• 30 days of creation of law
• This charge need not be registered as this is not hypothecation, mortgage etc
• 30 days of default in repayment
• A or C whichever is earlier

Q - 47 .This is the amount by which an asset is expected to lose its value. What is this

• Market value
• Wear and tear
• Depreciation
• NAP

Q - 48 .Holding period of Receivables is calculated with reference to

• Cost of Sales
• Cost of Production
• Gross Sales
• NOA

Q - 49 .Schedule VI of the Companies Act prescribes the form of

• Balance sheet
• Trading Account
• Balance sheet
• None of the above

Q - 50 .Annuities are

• The annual interest payable or receivable in a debt or an investment
• Lumpsum payment made any time during the course of a fixed period of time
• The total amount payable annually in respect of a debt or investment
• Series of payments (many number of cash flows) made at a specified frequency over the course of a fixed period of time

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