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Q - 1 . In 1921 three Presidency Banks in India - The Bank of Bengal, The Bank of Bombay, and Bank of Madras were amalgamated into one Bank which is now called.

Reserve Bank of India
United Bank of India
State Bank of India.
UCO bank

Q - 2 .In one of the joint Savings Bank accounts, you as a Branch Manager received information that one of the depositors had been declared as Insolvent? The depositors other than the undischarged insolvent claim the balance lying in the SB account. Can you pay?

You can pay to the other deposit holders jointly
You can pay to the other deposit holders, dividing the balance proportionately
You can pay as per instruction jointly signed by the solvent depositors and the official receiver of the undischarged
You can pay to the other deposit holders, dividing the balance proportionately, after taking RO permission

Q - 3 .Which of the following forms of business are permissible under BR Act:

Borrowing
Issuance of Letters of Credit
Buying and selling of bullion
All of the above

Q - 4 .Your banks customer XYZ Ltd, enjoys a CC limit of Rs.1,00,000.00 The CC account shows a credit balance of Rs,10,205.00. The relationship between your bank and XYZ Ltd is:

Debtor/Creditor
Creditor/Debtor
Bailor/Bailee
Bailee/Bailor

Q - 5 .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 - 6 .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 - 7 .In one of the joint Savings Bank accounts, you as a Branch Manager received information that one of the depositors had been declared as Insolvent? The depositors other than the undischarged insolvent claim the balance lying in the SB account. Can you pay?

You can pay to the other deposit holders jointly
You can pay to the other deposit holders, dividing the balance proportionately
You can pay as per instruction jointly signed by the solvent depositors and the official receiver of the undischarged insolvent
You can pay to the other deposit holders, dividing the balance proportionately, after taking RO permission

Q - 8 .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 - 9 .Sec 131 of NI Act,1881 extends protection to the

Paying Banker
Collecting Banker
Advising Banker
Issuing Banker

Q - 10 .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 - 11 .RTGS stands for :

Real Time Settlement System
Real Time Gross Settlement System
Real Gross Settlement System
Real Gross Time Settlement System

Q - 12 . Combining of two existing Companies into a new Company in which the both the existing companies extinguish and anew Company is made or created is known as

Consolidation.
Merger
Strategic Alliance
Acquisition

Q - 13 . 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 - 14 .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 - 15 .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 - 16 .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 - 17 .Which one of the following is not barred by law of limitation?

Pledge
Hypothecation
Banker s lien
Guarantee

Q - 18 .The right of set-off is:

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

Q - 19 .Charge created on LIC Policy is:

Hypothecation
Pledge
Assignment
Mortgage

Q - 20 .The minimum percentage of Priority Sector advances to be maintained by foreign banks in India

0.4
0.18
0.32
0.6

Q - 21 . 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 - 22 .Your bank receives a cheque in inward clearing which has not been signed by the account holder. Which one of the following reasons you will select to return the cheque?

Cheque is not signed by the payee
Refer to the drawer
Cheque is not signed by the drawee
Cheque is not signed by the endorsee

Q - 23 . A formal and mutually agreed commercial collaboration between Companies is known as

Merger
Amalgamation
Strategic Alliance
Subsidiary

Q - 24 .Bank s Assets are classified in to standard assets, substandard assets doubtful assets and loss assets, based on the recommendat

Rangarajan
Narasimham
Ghosh
Tandon

Q - 25 . Coupon rate refers to

Bank rate
PLR
The annual interest rate specified on bonds
All the above.

Q - 26 .Cash Budget is a statement of

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

Q - 27 .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 - 28 .Mandate given by the illiterate account holder should be

Attested by manager who confirms and certifies thee same.
Attested by Notary public or Magistrate.
It is enough if we ask for a Mandate letter with LTI which has to be attested an authorised official.
We cannot accept a mandate from an illiterate customer at all.

Q - 29 .Long Form Audit Report (LFAR) is prepared and submitted by

RBI inspectors
Internal inspectors
Statutory auditors
Concurrent auditors

Q - 30 .An account holder draws a cheque on a :

Banker of the Payee
Banker of the Drawee
Banker of the Drawer
Banker of the Endorsee

Q - 31 .A company which pools money from investors and invests in stocks, bonds, shares is called

A bank
An insurance company
Bancassurance
Mutual Fund

Q - 32 .FIMMDA s general principles an

Fixed Income Markets
Money Markets
Derivatives Markets
All of the above

Q - 33 .At a Big shopping mall,Hari withdraws cash from ATM of Central Bank of India. Central Bank of India is a:

Paying Banker
Collecting Banker
Advising Banker
Correspondent Banker

Q - 34 . Registration of a society is required

To sue in it s own name as a separate legal entity.
To open a bank account.
To facilitate receipt of donations/grants from foreign countries.
None of the above.

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 . Mr. Subramanian who is an Ordinary SB account holder of your branch wants to nominate Mr. Alfred Clinton, an U.S. national, who is his friend. Is that allowed?

Yes it is freely permitted
Yes it is freely permitted, but at the time of settlement of claim and repatriation to the nominee, branch has to take RBI permission
Yes it is freely permitted, subject to Regional office approval
Yes it is freely permitted, subject to CO approval

Q - 37 . The combination of two or Companies into a single Company where one survives with it s name (or a combined new name )

Merger or Amalgamation
Diversification.
Combination.
All the above

Q - 38 .State which of the following statement/s is/are correct? i) KYC norms is applicable only to deposit accounts ii) Either or survivor is applicable to all joint accounts iii) A cash credit facility is a fund based limit

i and ii
ii and iii
iii and iv
iv

Q - 39 .Long Form Audit Report (LFAR) is prepared and submitted by

RBI inspectors
Internal inspectors
Statutory auditors
Concurrent auditors

Q - 40 .A cheque is dated 12/05/05.the due date is:

38694
38609
38697
None

Q - 41 .Minimum Bank Rate is:

0.03
0.04
0.05
None

Q - 42 .Except one of the following others are known as Non Fund based facilities:

Letters of Credit
Bank Guarantees
Co-acceptance of Bills
Trust Receipt

Q - 43 .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 - 44 .The Capital Adequacy Ratio is :

0.06
0.08
0.09
0.1

Q - 45 . 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 - 46 .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 - 47 .Which was the first Mutual Fund started in India:

SBI Mutual Fund
Kotak Pioneer Mutual Fund
Indian Bank Mutual Fund
None of the above

Q - 48 .Reserve Bank of India s function

Supervisory & Regulatory
Promotional & Developmental
Refinance Activities
All of the above

Q - 49 . 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 - 50 . 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

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