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

• Creditor
• Debtor
• Borrower
• lender

Q - 3 .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 - 4 .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 - 5 .For a large and medium units DSCR should be

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

Q - 6 .The following is not usually classified as Other Non Current Assets

• Advance given to Directors
• Tender Deposit
• Receivable outstanding beyond 12 months
• Preliminary and Pre operative expenses

Q - 7 .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 - 8 .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 - 9 .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 - 10 .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 - 11 .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 - 12 .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 - 13 .The capital which is stated in the Memorandum of Association is known as

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

Q - 14 .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 - 15 .Liabilities that will arise on the happening of certain event

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

Q - 16 .Reserve created out of profit from business operation is known as

• Capital Reserve
• Profit Reserve
• Revenue Reserve
• Free Reserve

Q - 17 .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 - 18 .A Mortgage cannot be enforced in the absence of

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

Q - 19 .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 - 20 .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 - 21 .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 - 22 .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 - 23 .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 - 24 .Who cannot file a complaint under Consumer Protection Act?

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

Q - 25 .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 - 26 .The following is a  Means of Finance for the cost of project

• Leasing
• Subsidy
• Deferred Credit from Suppliers
• All the above

Q - 27 .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 - 28 .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 - 29 .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 - 30 .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 - 31 .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 - 32 .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 - 33 .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 - 34 .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 - 35 .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 - 36 .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 - 37 .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 - 38 .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 - 39 .The Companies Act prohibits issue of any preference share that is _______

• Cumulative
• Redeemable
• both a and b
• Irredeemable

Q - 40 .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 - 41 . 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 - 42 .The amount which the firm owe to outsiders

• Assets
• Capital
• Liabilities
• Intangible assets

Q - 43 .Amount of Investment under Securities held to maturity should not exceed --------- of Bank s total investment

• Twenty percentage of the Bank s total investment (20% of total investment)
• Twenty five percentage of the Bank s total investment (25% of total investment)
• Forty nine percentage of the Bank s total investment (49% of total investment)
• Forty percentage of the Bank s total investment (40 % of total investment)

Q - 44 .As per new guidelines both SLR and non SLR securities are to be classified into

• Held to maturity
• Available for sale
• Held for trading
• All the above

Q - 45 .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 - 46 .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 - 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 .DRT has jurisdiction relating to cases pertaining to Banks, Financial Institutions with debt amount of

• Rs. 1 lakh and above
• Rs. 5 lakh and above
• Rs. 10 lakh and above
• Rs. 20 lakh and above

Q - 49 .The Marine Insurance Policy should be expressed in

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

Q - 50 . As per Prudential Accounting Norms prescribed by RBI, assets are classified into & & type

• 3
• 8
• 4
• 5

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