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Q - 1 .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 - 2 .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 - 3 .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 - 4 .Sec ___ of RBI Act,1934 gives sole power to RBI to issue currency notes

10
18
22
26

Q - 5 .FIMMDA s general principles an

Fixed Income Markets
Money Markets
Derivatives Markets
All of the above

Q - 6 .FIMMDA stands for:

Foreign Exchange Markets and Derivative Markets
Fixed Income Markets Money Markets and Derivatives Markets
Fixed Income Markets and Derivatives Markets
None of the above

Q - 7 .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 - 8 . 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 - 9 .Which one of the following is not barred by law of limitation?

Pledge
Hypothecation
Banker s lien
Guarantee

Q - 10 .As per FIMMDA s guidelines, the Mid-Office is responsible for

Dealing activities
Risk Management
Reconciliation
Confirmation of deals

Q - 11 .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 - 12 .The regulator for Mutual Funds in India is:

FIMMDA
AMFI
RBI
SEBI

Q - 13 .The minimum percentage of Priority Sector advances to be maintained by foreign banks in India

40%
18%
32%
60%

Q - 14 .Tele banking service is based on

Virtual Banking
Online Banking
Voice processing
Core Banking

Q - 15 .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 - 16 .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 - 17 . 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 - 18 .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 - 19 .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 - 20 .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 - 21 .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 - 22 .The apex institution which handles refinance for agriculture and rural development is called:

RBI
SIDBI
NABARD
SEBI

Q - 23 .Hypothecation is applicable in the case of

Movable goods
Immovable property
Book debts
Corporate guarantee

Q - 24 .FIMMDA s guidelines cover the following products, except one:

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

Q - 25 . 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 - 26 .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 - 27 .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 - 28 .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 - 29 .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 - 30 .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 - 31 .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 - 32 .Minimum Bank Rate is:

3%
4%
5%
None

Q - 33 .The right of set-off is:

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

Q - 34 .Charge created on LIC Policy is:

Hypothecation
Pledge
Assignment
Mortgage

Q - 35 .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 - 36 .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 - 37 .The Capital Adequacy Ratio is :

6%
8%
9%
10%

Q - 38 .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 - 39 .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 - 40 .A cheque is dated 12/05/05.the due date is:

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

Q - 41 .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 - 42 .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 - 43 . Coupon rate refers to

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

Q - 44 . 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 - 45 .Long Form Audit Report (LFAR) is prepared and submitted by

RBI inspectors
Internal inspectors
Statutory auditors
Concurrent auditors

Q - 46 .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 - 47 .A company which pools money from investors and invests in stocks, bonds, shares is called

A bank
An insurance company
Bancassurance
Mutual Fund

Q - 48 .A stop payment instruction of a cheque can be issued by:

The payee
The endorsee
The drawer
The drawee

Q - 49 .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 - 50 .Loan for fish rearing is covered under Prirority Sector as ________ advances

Direct Agriculture
Indirect Agriculture
Self Employment Scheme
Allied to indirect Agriculture

Online Tests for Principles & Practices of Banking

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