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 .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 - 2 .The right of set-off is:

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

Q - 3 .Minimum Bank Rate is:

3%
4%
5%
None

Q - 4 .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 - 5 . 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 - 6 .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 - 7 .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 - 8 .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 - 9 .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 - 10 .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 - 11 .A purchaser of a demand draft for Rs.500,000.00, lost the DD To obtain a duplicate draft he needs to furnish

A Power of Attorney
A letter
An Indemnity
Amandate

Q - 12 .The apex institution which handles refinance for agriculture and rural development is called:

RBI
SIDBI
NABARD
SEBI

Q - 13 .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 - 14 .State which of the following statement/s is/are correct? i) KYC norms is applicable only to deposit accounts ii) Either or survivor is applicable to all joint accounts iii) A cash credit facility is a fund based limit

i and ii
ii and iii
iii and iv
iv

Q - 15 .Securitisation is a process of acquiring the loans classified as

Bookdebts
Performing debts
Bad debts
Non performing debts

Q - 16 .A bank in India, wants to undertake capital market activities, it should:

Obtain special license from AMFI
Obtain special license from FIMMDA
Both a and b
Register with SEBI

Q - 17 .Charge created on LIC Policy is:

Hypothecation
Pledge
Assignment
Mortgage

Q - 18 .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 - 19 . 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 - 20 .Hypothecation is applicable in the case of

Movable goods
Immovable property
Book debts
Corporate guarantee

Q - 21 .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 - 22 .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 - 23 .Match the following: i)Classification of Assets A) Narasimham ii)Allonge B) Endorsement iii)Funds Transfer C) EFT

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

Q - 24 .RTGS stands for :

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

Q - 25 . Coupon rate refers to

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

Q - 26 .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 - 27 .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 - 28 .Which one of the following is secured by a mortgage?

A cash credit against inventory
An overdraft against book debts
A term loan against land and building
An educational loan

Q - 29 .Tele banking service is based on

Virtual Banking
Online Banking
Voice processing
Core Banking

Q - 30 .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 - 31 .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 - 32 .A stop payment instruction of a cheque can be issued by:

The payee
The endorsee
The drawer
The drawee

Q - 33 . 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 - 34 .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 - 35 .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 - 36 .KYC means

Know Your Customer very well
Know Your existing Customer very well
Know Your prospective Customer very well
Satisfy yourselves about the customer s identity and activities

Q - 37 . A formal and mutually agreed commercial collaboration between Companies is known as

Merger
Amalgamation
Strategic Alliance
Subsidiary

Q - 38 .At a Big shopping mall,Hari withdraws cash from ATM of Central Bank of India. Central Bank of India is a:

Paying Banker
Collecting Banker
Advising Banker
Correspondent Banker

Q - 39 . 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 - 40 .Cash Budget is a statement of

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

Q - 41 . 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 - 42 .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 - 43 . 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 - 44 .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 - 45 . In 1921 three Presidency Banks in India - The Bank of Bengal, The Bank of Bombay, and Bank of Madras were amalgamated into one Bank which is now called.

Reserve Bank of India
United Bank of India
State Bank of India.
UCO bank

Q - 46 .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 - 47 .FIMMDA s guidelines cover the following products, except one:

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

Q - 48 .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 - 49 . 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 - 50 .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

Online Tests for Principles & Practices of Banking

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