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Q - 1 .If the rate of a currency A is known in terms of currency B and rate of Currency B in terms of Currency C , we can derive the rate of currency A interms of Currency C using the technique of cross currency

Exchange rate
Cross rate
Forward rate
None of the above

Q - 2 .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 - 3 .Liabilities that will arise on the happening of certain event

Current liabilities
Term Liabilities
Contingent Liabilities
None of the above

Q - 4 .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 - 5 .A person who owes money to a firm , mostly on account of credit sales of goods is called

Creditor
Debtor
Borrower
lender

Q - 6 .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 - 7 .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 - 8 .____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 - 9 .Schedule VI of the Companies Act prescribes the form of

Balance sheet
Trading Account
Balance sheet
None of the above

Q - 10 .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 - 11 .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 - 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 .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 - 14 .Holding period of Receivables is calculated with reference to

Cost of Sales
Cost of Production
Gross Sales
NOA

Q - 15 .Computers are basically classified into

Analogue Computers and Digital computers
Hardware and software
Wipro and Infosysis
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 .Authorised capital is also known as

Nominal or Registered Capital
Equity capital
Preference share capital
All the above

Q - 18 .The value which the bond holder gets on maturity is called

Maturity value
NAV
the redemption value
IRR

Q - 19 .A Mortgage of the mortgaged property is called

Sub-mortgage
Second Mortgage
Re-mortgage
Fraudulent Mortgage

Q - 20 .Government Promissory notes should be sent to public debt office to confirm genuiness of

The Promissory note
Endorsement
Alternations, if any
All the above

Q - 21 .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 - 22 .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 - 23 .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 - 24 .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 - 25 .According to section 79A inserted by Companies Amendment Act 1999 ____ shares means equity shares issued by the company to employees or directors at a discount or for consideration other than cash for providing know how or making available right in the intellectual property rights or value addition, by whatever name called

Employees stock option
Equity shares
Sweat equity
None of the above

Q - 26 .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 - 27 .The capital which is stated in the Memorandum of Association is known as

Memorandum Capital
Paid up capital
Authorised capital
Issued capital

Q - 28 .Assignment of LIC policy is done as per section& & of & & . Act

132 of Transfer of Property Act
38, Indian Insurance Act 1938
138 of Contract Act
NOA

Q - 29 .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 - 30 .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 - 31 .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 - 32 .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 - 33 .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 - 34 .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 - 35 .The Companies Act prohibits issue of any preference share that is _______

Cumulative
Redeemable
both a and b
Irredeemable

Q - 36 .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 - 37 .Who cannot file a complaint under Consumer Protection Act?

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

Q - 38 . As per Prudential Accounting Norms prescribed by RBI, assets are classified into & & type

3
8
4
5

Q - 39 .Banking Ombudsman is appointed by

Central Government / Ministry of Finance
State Government
IDBI
RBI

Q - 40 .The following is a Term Liability

Debentures payable within a year from the date of Balance Sheet
Preference Shares payable within a period of one year from the date of Balance Sheet
Term Loan instalments payable in a year
Deposit from public payable in 2 years time

Q - 41 .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 - 42 .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 - 43 .For a large and medium units DSCR should be

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

Q - 44 .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 - 45 .The duration of an operating cycle in 30 days. The operating cycle in this case repeats_________ times a year

30 times
12 times
10 times
52 times

Q - 46 .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 - 47 .A credit facility will be classified as NPA if_____remains past due for one quarter

Interest
Instalment
A or B
A & B

Q - 48 .The balance sheet represents an expansion of the equation as Assets = Liabilities +Capital This statement is

Cannot be relied
0
Not acceptable
1

Q - 49 .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 - 50 .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

Online Tests for Legal & Regulatory Aspects of Banking

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