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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 .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 - 3 .____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 - 4 .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 - 5 .EEFC can be opened in

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

Q - 6 .A scheme under which the company grants option (A right but not an obligation ) to an employee to apply for shares of the company at a pre determined price is known as

Employees Stock Option Scheme (ESOS)
Equity shares
Sweat Equity
None of the above

Q - 7 .Banking Ombudsman is appointed by

Central Government / Ministry of Finance
State Government
IDBI
RBI

Q - 8 . As per Prudential Accounting Norms prescribed by RBI, assets are classified into & & type

3
8
4
5

Q - 9 .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 - 10 .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

Q - 11 .The value which the bond holder gets on maturity is called

Maturity value
NAV
the redemption value
IRR

Q - 12 .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 - 13 .Reserve created out of profit from business operation is known as

Capital Reserve
Profit Reserve
Revenue Reserve
Free Reserve

Q - 14 .The following is not a chargeable current assets

Book debt
Spares
Work in process
Construction work in progress

Q - 15 .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 - 16 .Interest charged in advance accounts as per RBI directive can not be subject to scrutiny by court. This is provided in

Section 35A of BR Act
Section 21(A) of BR Act
Of BR Act
Section 26 of RBI Act

Q - 17 . A Bridge finance is extended for overcoming

Delay in getting of the public issue
Delay in disbursement of term loan
Delay in disbursement of working capital for completing the documentation
For A & B

Q - 18 .The following is a Means of Finance for the cost of project

Leasing
Subsidy
Deferred Credit from Suppliers
All the above

Q - 19 .Hypothecation is defined in

Hypothecation Act
Indian Contract Act
Transfer of Property Act
SARFAESI Act

Q - 20 .As per RBI guidelines, a bank is required to assess the working capital on the basis of the following method

Turnover Method
Cash Budget Method
MPBF of Tandon Method
Any Method as decided by the individual banks

Q - 21 .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 - 22 .A Customer Service Meet should be organized at every Branch

Once in a Fortnight
Once in a Quarter
Once in a Month
Once in a Half-Year

Q - 23 .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 - 24 .Holding period of Receivables is calculated with reference to

Cost of Sales
Cost of Production
Gross Sales
NOA

Q - 25 .Liabilities that will arise on the happening of certain event

Current liabilities
Term Liabilities
Contingent Liabilities
None of the above

Q - 26 .Issue of shares at a discount should be authorized by the members by passing a resolution in the general meeting and resolution of members should specify the rate of discount which should not exceed 10% of the face value of the shares Further this is subject to

Obtention of sanction from Company Law Board
These shares must be issued with in 2 months
Both (a) and (b)
None of the above

Q - 27 .Variable Cost and Sale Price remaining the same, a rise in fixed cost result in

High BEP ( High Break even point)
Low BEP
High Margin of Safety
B & C

Q - 28 .An operation by which one can make risk free profits making use of the interest differentials between two places is called

Open market operation
Profitability
Free market
Arbitrage

Q - 29 .A firm paid Rs.16 lacs for purchase of a business with machinery worth Rs.10 lacs and other assets worth Rs.4 lacs. In this case the difference of Rs.2 lacs is treated as

P&L Loss on purchase of asset
Goodwill Intangible Asset
Fixed Asset by inflating the value of fixed asset
Current Asset by inflating the value of current asset

Q - 30 .A method of calculating depreciation of an asset , which assumes that the asset will lose an equal amount of value each year is known as

Salvage value
Depreciation
Straight line Method of calculation
Accumulated Depreciation

Q - 31 .If the partnership does not mention any method of maintaining capital account then _______ method of capital has to be used

Fluctuating capital account
Partners Current account
Capital account
Fixed capital account

Q - 32 .The capital which is stated in the Memorandum of Association is known as

Memorandum Capital
Paid up capital
Authorised capital
Issued capital

Q - 33 .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 - 34 .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 - 35 .The Marine Insurance Policy should be expressed in

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

Q - 36 .A unit is showing a net profit of Rs.46,000/-. Dividend received Rs.8000/-. Operating expenses is Rs.96000/-. Find the gross profit

134000
150000
142000
132000

Q - 37 . A simple mortgage need be registered when

The Loan amount exceed Rs.100/-
Value of mortgaged property exceeds Rs.100/-
A or B whichever exceeds Rs.100/-
Both A & B

Q - 38 .A credit facility will be classified as NPA if_____remains past due for one quarter

Interest
Instalment
A or B
A & B

Q - 39 .If a sum of Rs10,000/accumulates to Rs16,000/after 3 years at simple Interest , what is the rate of Interest.

16%
25%
23%
20%

Q - 40 .A Mortgage cannot be enforced in the absence of

Delivery of the title deeds
Legal Opinion
Narration in Title deeds register
Pecuniary obligation

Q - 41 .For determining the advance amount the shares will be valued on the basis of

Current market price
Average market price for the last 12 months
Face Value
A or B whichever is lower

Q - 42 .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 - 43 .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 - 44 .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 - 45 .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 - 46 .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 - 47 .If the forward rate is less than the spot rate the base currency is said to be at

Discount
Premium
At par
None of the above

Q - 48 .The amount which the firm owe to outsiders

Assets
Capital
Liabilities
Intangible assets

Q - 49 .Profit and Loss Account is one of the Final Accounts prepared by a Company. What is the other one.

Schedules to P&L accounts
Balance sheet
Trading Account
None of the above

Q - 50 .Computers are basically classified into

Analogue Computers and Digital computers
Hardware and software
Wipro and Infosysis
All the above

Online Tests for Legal & Regulatory Aspects of Banking

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