Here is the given mock test for Legal And Regulatory Aspects of Banking with important questions with answer prepared by senior officers there is 50 questions mock test after attend all the questions your result will displayed.

Please Note;- Negative mark will not be counted

Select your language:  English

First ques   1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50   of 50 Finish Last

Q - 1 .The Letter of Credit is opened on the request of

• Issuing bank
• Applicant
• Beneficiary
• Confirming bank

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 .Central Information Commission can impose a penalty of ...... rupees for each day till the information is furnishe

• 100
• 150
• 200
• 250

Q - 5 .What is the meaning of a scheduled bank?

• The bank functioning under provisions of Banking Reg. Act 1949.
• The bank included in 2nd schedule of RBI Act 1934.
• The bank incorporated under Banking Companies Act 1956.
• The bank authorised to do banking functions.

Q - 6 .How much percentage of foreign currency can be credited to EEFC Account of a customer in Special Economic Zone?

• 0
• 0.01
• 0.01
• 0

Q - 7 .A credit facility will be classified as NPA if_____remains past due for one quarter

• Interest
• Instalment
• A or B
• A & B

Q - 8 .Holding period of Receivables is calculated with reference to

• Cost of Sales
• Cost of Production
• Gross Sales
• NOA

Q - 9 .Branches should submit return of overdue import bills ......

• monthly
• quarterly
• half yearly
• fortnightly as on 15th & last working day of each month

Q - 10 .Reserve Bank is authorised to appoint ...... under Section 36AB of the BR Act.

• directors
• additional directors
• managing director
• None of the above

Q - 11 .The bank through whom the credit is advised and who confirms the letter of credit when required and negotiates the documents tendered is called ......

• Opening Bank
• Foreign Bank
• Advising Bank
• None of these

Q - 12 .when a drawer draws a cheque without keeping sufficient balance and if the cheque is dis-honoured for insufficient funds, the drawer is punishable with and imprisonment which may extend to ...... and or a fine.

• two months
• four month
• one year
• None of these

Q - 13 .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 - 14 .GR forms are submitted in respect of ......

• Import transactions
• FOCNA transactions
• Export transactions
• NRE transactions

Q - 15 .Name the act that lays down the underlying regulations presently governing all foreign currency transactions in India

• FEMA
• RBI
• BR
• Foreign Exchange Act

Q - 16 .Name the authority which issues Import Export Code (IEC).

• RBI
• FEDAI
• DGFT
• EXIM BANK

Q - 17 .For the purpose of creation of equitable mortgage, who notifies the places for deposit of title deeds ?

• Central Govt.
• Local self Govt.
• President of India
• State Govt.

Q - 18 .Which rate is quoted by the banks for buying and selling foreign currency amongst each other?

• Mercury Fx Rate
• Inter-bank rate
• Special Rate
• Card Rate

Q - 19 .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 - 20 ....... is a person appointed by the Court to wind up the company.

• Administrator
• Executor
• Registrar
• liqudator

Q - 21 .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 - 22 .In documentary credit transactions ......

• all parties deal with documents and not goods
• all parties deal in documents and goods as well
• buyer and seller deal in goods and banks in documents
• all parties deal in goods only

Q - 23 .Section 138 states that drawer of a cheque is liable to be punished if the cheque is bounced for ......

• not crossing
• alteration in figures
• being postdated
• insufficient fund

Q - 24 .What can be the min & max denomination of bank notes under the provisions of RBI act?

• Rs 1 to Rs 1000
• Rs 2 to Rs 1000
• Rs 2 to Rs 10000
• Rs 10 to Rs 10000

Q - 25 ....... have to maintain cash reserve under Section 18 of the BR Act. Coop.

• banks
• Banking companies which are not scheduled banks
• Nationalised banks
• None of the above

Q - 26 .In which of the following areas, RBI can't issue directions to bank ?

• Interest rate on deposit
• Interest rate on advances
• Margin on bank loans
• NONE OF THE ABOVE

Q - 27 .At least ...... of the total number of directors of a public company are to be persons whose period of office is liable to determination by retirement by rotation.

• 1/2
• 1/3
• 2/3
• 1/4

Q - 28 .Quarterly on-site visits are undertaken in respect of

• all banks
• urban co-operative banks
• newly licensed banks during first year
• None of these

Q - 29 .An ancillary LC which arises when the seller(beneficiary) uses the LC opened in his favour to support another LC opened by the Seller s Bank, favouring his supplier is called ......

• Transferable LC
• Back to Back LC
• Revolving LC
• none of these

Q - 30 .The capital which is stated in the Memorandum of Association is known as

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

Q - 31 .A foreign currency travelers cheque is valid for ......

• 3 months
• 6 months
• 1 month
• no time limit unless otherwise mentioned therein

Q - 32 .Government companies are companies where the government holds at least ...... % share of the company.

• 80
• 50
• 75
• 51

Q - 33 .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 - 34 .The advising banks responsibility is ......

• to inform the issuing bank as to whom to issue the letter of credit.
• to advise the buyer the dispatch of documents by the seller
• to inform the beneficiary/seller about the letter of credit
• None of the above

Q - 35 .The provision of Section 36AA of the BR Act regarding removal of managerial personnel have ...... over other laws.

• no effect
• overriding effect
• persuasive effect
• None of the above

Q - 36 . 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 - 37 .When the Advising Bank, at the request of the issuing Bank, adds its confirmation which would constitute a definite undertaking by the former the L/C is known as a/an ......

• Irrevocable L/C
• Transferable L/C
• Confirmed L/C
• Revolving L/C

Q - 38 .Which rate is quoted by the banks for buying and selling foreign currency amongst each other?

• Mercury Fx Rate
• Inter-bank rate
• Special Rate
• Card Rate

Q - 39 .Private Trusts are governed by the ......

• Parliament Act
• Indian Trust Act
• Wakf Act
• Religious and Charitable Endowments Act

Q - 40 .The bank through whom the credit is advised and who confirms the letter of credit when required and negotiates the documents tendered is called ......

• Opening Bank
• Foreign Bank
• Advising Bank
• None of these

Q - 41 .There is an FDR of A and B but A dies before its maturity. B also dies one week after his death. FD amount is payable to:

• Legal heirs of A
• Legal heirs of B
• Legal heirs of A and B
• legal heirs of the person who died later

Q - 42 . R returns are submitted to RBI as on every ......

• month
• 10th, 20th & 30th
• 15th & last working day of the month
• every week

Q - 43 .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 - 44 .The final decision to issue notes of different denomination is taken by ...

• Governor RBI
• Central Board Of Directors Of RBI
• Issue Deptt Of RBI
• Central Govt

Q - 45 .Central Information Commission can impose a penalty subject to a maximum of ...... rupees

• 15000
• 20000
• 25000
• 30000

Q - 46 .Which of the following one stamps where documents are required to be stamped?

• Adhesive Revenue Stamp.
• Special Adhesive/Embossed stamp.
• Bill of Exchange Stamps.
• All the above.

Q - 47 .Casual vacancies in the board of directors is filled in by the ......

• board of directors
• promoters
• underwriters
• shareholders

Q - 48 .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 - 49 .Which of the following kind of authority RBI doesn't have to regulate the banking business in India?

• To inspect the banks
• To exercise supervisory control over banks
• To give directions to bank in public interest
• NONE OF THE ABOVE

Q - 50 .How many types of  R return are required to be submitted at present?

• 5
• 6
• 7
• 2

Prv Next Finish Test