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Q - 1 .A cheque is dated 12/05/05.the due date is:

38694
38609
38697
None

Q - 2 .Hypothecation is applicable in the case of

Movable goods
Immovable property
Book debts
Corporate guarantee

Q - 3 .Sec 131 of NI Act,1881 extends protection to the

Paying Banker
Collecting Banker
Advising Banker
Issuing Banker

Q - 4 .Charge created on LIC Policy is:

Hypothecation
Pledge
Assignment
Mortgage

Q - 5 .John & James are friends aged 14 & 15 respectively. They want to open a joint account in your bank. You will

Allow them to open a joint account to be operated jointly
Allow them to open a joint account with operating instructions Either or Survivor
Allow them to open a joint account with operating instructions Former or Survivor
Allow them to open a joint account with operating instructions Any one or Survivor

Q - 6 .A company which pools money from investors and invests in stocks, bonds, shares is called

A bank
An insurance company
Bancassurance
Mutual Fund

Q - 7 . A bill is drawn on 16th Feb, 2001 which is payable after 30 days. It will mature on

13.3.2001
15.3.2001
20.3.2001
None of these.

Q - 8 .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 - 9 .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 - 10 . Executors and administrators can delegate their powers to a third party to operate the account

By mandate
By power of attorney
By obtaining permission from RO.
None of the above

Q - 11 .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 - 12 .Long Form Audit Report (LFAR) is prepared and submitted by

RBI inspectors
Internal inspectors
Statutory auditors
Concurrent auditors

Q - 13 .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 - 14 .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 - 15 . IT authorities have seized a deposit receipt from a customer. The deposit has matured. Now the deposit receipt is presented by IT authorities for payment along with over due interest

Overdue interest can be paid if the deposit is renewed for a further period of 15 days.
Overdue interest can be paid because the receipt is IT authorities.
The branch can pay interest after getting permission from R.O.
None of the above.

Q - 16 .The right of set-off is:

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

Q - 17 .Loan for fish rearing is covered under Prirority Sector as ________ advances

Direct Agriculture
Indirect Agriculture
Self Employment Scheme
Allied to indirect Agriculture

Q - 18 .A stop payment instruction of a cheque can be issued by:

The payee
The endorsee
The drawer
The drawee

Q - 19 .Cash Budget is a statement of

Cash-Non cash funds
Cash receipt and Cash payments
Another name for cash flow
None

Q - 20 . The minimum period for which commercial papers can be issued is

12 months
1 month
3 months
CP can be issued for maturity from 7 days to 1 year

Q - 21 .The minimum percentage of Priority Sector advances to be maintained by foreign banks in India

0.4
0.18
0.32
0.6

Q - 22 .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 - 23 .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 - 24 . Mr.Rao wants to give mandate to his minor son

It cannot be accepted since the mandate is to be given in favour of a minor
It can be accepted as the minor can act as an agent
Mandate can be accepted to operate only credit transactions and no debit should be allowed
None of the above.

Q - 25 . 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 - 26 .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 - 27 .Except one of the following others are part of Public Sector Banks:

State Bank of Hyderabad
Central Bank of India
Regional Rural Bank, sponsored by a nationalized bank
HDFC Bank

Q - 28 .The Capital Adequacy Ratio is :

0.06
0.08
0.09
0.1

Q - 29 . According to Section 130 of Transfer of Property Act the transfer of an actionable claim can be effected only by the execution of an instrument in writing signed by transferor or by his duly authorized agent This mode of transfer of an actionable claim is known as ________

Assignment
Lien
Mortgage
Hypothecation

Q - 30 .Which of the following is a material alteration?

An open cheque is crossed with two lines across the cheque
The purchaser of a DD changes the word order to bearer
In a bearer cheque the holder of the cheque changes the word bearer to order by striking bearer with a line
A blank endorsement on a cheque is converted into a full endorsement

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 .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 - 33 .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 - 34 .Tele banking service is based on

Virtual Banking
Online Banking
Voice processing
Core Banking

Q - 35 .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 - 36 .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 - 37 .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 - 38 .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 - 39 .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 - 40 .Which one of the following is not barred by law of limitation?

Pledge
Hypothecation
Banker s lien
Guarantee

Q - 41 .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 - 42 .Obligation of a Banker to maintain secrecy is applicable to

Existing deposit accounts
Existing safe deposit accounts
Closed deposit accounts
a,b and c (existing/closed)

Q - 43 .Sec ___ of RBI Act,1934 gives sole power to RBI to issue currency notes

10
18
22
26

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

RBI inspectors
Internal inspectors
Statutory auditors
Concurrent auditors

Q - 45 .Law of limitation is not applicable in respect of :

Advance against pledge of shares
CC granted against hypothecation of inventory
Term loan secured by mortgage of Plant & Machinery
Bank Term Deposit

Q - 46 .In case of a Non Resident Indian which of the following is permitted?

A SB account in joint names in Candian dollars
A Fixed deposit account in Australian dollars
A NRNR account in Indian rupees
An EEFC account in Indian rupees

Q - 47 .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 - 48 . Nomination rules for deposit accounts have been introduced under the following rules of Banking Regulation Act,21-03-1900 05:00:00 AM

Sec. 45
Sec. 45ZA F
Sec. 45ZA B
None of the above

Q - 49 .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 - 50 .A holder for value is :

A bank allows one of its clients to withdraw against clearing of a cheque.
A bank which maintains high net worth customers accounts
A bank which collects cheques for non customers
A bank which handles high value clearing cheques

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