MOCKPRACTICETEST:1

1GlobalBankishavingacurrentaccountofM/sRuchiEnterprisesandachequeofRs.13500is
presentedthroughclearing,drawninfavourofMr.Ramesh.Throughanoversightthechequeis
dishonouredwrongfully.Wheninformation aboutthisdishonourisreceivedbyMr.Ramesh,he
sendsanoticetotheGlobalBankforwrongfuldishonourandclaimsdamages.Whatwouldyou
dowiththisnotice?
aBankshouldcontactMr.Rameshforwithdrawlsofthenoticefordamages.
bBanksshould contactthedrawerandaskthemtoprevailuponthepayeeforwithdrawalofthe
notice.
cBankcanignorethisnoticeasthebankisnotliableforsuchdamagestothepayee.
dBankisliabletothedrawerofthechequeandnooneelse.
ecanddabove
2CorporateBankhadopenedasavingbankaccountinthenameofMr.Subramanianand
Murlidharoperatedas`formerorsurvivor.ThewifeofMr.Subramanian,whoisnomineeinthe
accountcomestoyourbranchandinformsyouthatMr.Subramanianhasexpiredamonthback.
Shealsohandsoverthedeathcertificateandrequestsforpaymentofthebalance.
athepaymenttothenomineewillbemadeonproperidentificationassheisalsohavingthe
deathcertificate.
bthepaymentwillbemadetothewifeofdeceasedbeinglegalheiroftheformer.
cthepaymentwillnotbemadeaswiththedeathoftheformer,nominationhasbeencancelled.
dthepaymentwillnotbemadeaswiththedeathoftheformer,survivorgetstheauthorityto
operatetheaccountandnomineecomesintopictureonlywhennoneoftheaccountholdersis
available
eanyoftheabove
3BankUniversalLimitedreceivesaletterofcreditof$20000infavourofM/sDiamondExports
PvtLtdforexportstoGermany.Afterverificationofthegenuinenessofthecredit,itisforwarded
tothebeneficiarythroughregisteredletter.Unfortunately,duetopostalstrike,bythetimethe
letterofcreditisdelivered,itsvalidityperiodexpires.Theexporterthreatenslegalactionagainst
thebank:
abankisliableasbankhasnothandedoverthecreditintimetothebeneficiary
bpostaldepartmentisliableforthelossandexporterhastotakeupthematterwiththepostal
department
cbankisnotliableasitdoesnotassumeanyliabilityfortheconsequencesarisingoutofdelayin
transitduetoactionsbeyonditscontrol
dbankcouldpersuadetheopeningbanktoextendthevaliditydatesothatitisnotputtoloss
eanyoftheabove
4Yourbranchhasreceivedagarnisheeorderinthenameofyourcustomerhavingsavingbank
account,withfollowingtransactions.Whichamongtheseisnotsubjectmatterofthegarnishee
order:
aanadvicereadyfordespatchtoanotherbranchafterdebittotheaccountinpaymentofcheque
banadvicereceivedforachequewhichwassentincollection,fromanotherbranchbutnot
creditedtotheaccountsofar
cachequesentinclearing,theamountofwhichhasbeencreditedtotheaccount
danamountofRs.4000relatingtohiswifesaccountcreditedbymistaketotheaccountofthe

customer
ealltheabove
5YourbranchopensafixeddepositofRs.50000inthejointnameofMr.AnilKumarandMr.
SuhailKumarpayabletoeitherorsurvivor.TheyalsonominateMissKonicaaminordaughterof
Mr.SuhailKumarwiththeprovisionthatthepaymentcanbeclaimedbyMrs.SuhailKumaron
behalfoftheminor.Unfortunately,Mr.SuhailKumarexpiredandsubsequentlyMr.AnilKumar
decidestochangethenominationfromMissKonicatohisownson.Tothis,Mrs.SuhailKumar
objectsandasksyourbranchnottoaccepttheinstructionofMr.AnilKumar:
abankhasnooptiontoignoretherequestfromMr.AnilKumaras,beingsurvivorallrights
relatingtodepositarevestedwithhim.
bbankcanrequestMr.AnilKumartodecidethecaseinconsultationwiththeexistingnominee
cbankhastoaccepttherequestfromMrs.SuhailKumar,asshewasthenomineecoupledwith
interest
dbankwillaskthemtogotoacourtoflawfordecisionandwouldimplementthedecisionofthe
court
ebandcabove
6Sh.AmritLalopensatermdepositaccountwithBankofBengalandnominateshisnieceMs
ArunaPande.Unfortunately,heexpiresinanaccidentbutMsArunaPandedoesnotturnup
despiteanoticefromthebank.Meantime,thelegalheirsofMr.AmritLali.e.histwosons,visit
thebankandrequestformakingpaymentofthedeposit.Theyalsopresentaprobatefromcourt
oflawinwhichtheyareexecutorsofthewillofthedeceased:
athepaymentofthebalancein theaccountwillbemadebythebanktoMsArunaPandeonly
bthepaymentofthebalancewouldbemadetothelegalheirsintermsofprobate
cthepaymentwillbemadeinequalproportiontothelegalheirsandthenominee
dthebankwilladvisethelegalheirstobringspecificorderfromthecourtinthelightof
nomination
enoneoftheabove
7TheliabilityofaminorcoparcenerinanHUF,fortheactsofaKartais:
aunlimited
bnil
ctotheextentofhisshareinthefamilyproperty
d50%ofthelossasperhisshare
enoneoftheabove
8Mr.DSinghandMr.KSingharemaintainingacurrentaccountin`formerandsurvivor
operations.Mr.KSingh(illiterate)issuesanoticetothebankthattheoperationsintheaccount
shouldbestoppedasthereissomedisputebetweenbothofthem.Healsomentionsthatmoney
intheaccountbelongstohimbutforoperationalconvenience,thepowertooperatetheaccount
wasgiveninfavourofDSingh.Whatwouldyoudowiththecheque(signedbyMr. DSinghfor
Rs.670favouringLICofIndia)whichhasbeenpresentedthroughclearing,forpaymentfromthis
account?
athechequeisofsmallamountandshallbepaid.
bthechequeisinfavourofLICofIndiaandshallbepaid
cchequewillbereturnedduetoreceiptofinformationaboutdispute
dchequewillbepaidasKSinghsinstructioncannotbeacceptedsolongasMr.DSinghisalive
eAnyoftheabove

9AnattachmentorderisreceivedfromIncomeTaxOfficerforattachingfundslyinginsaving
bankaccountofaperson.Incase,thebankfailstoexecutethisorderu/s226(3)ofIncomeTax
Act:
a:BranchManagercanbearrested.
b:BranchManagercanbefineduptoRs.5000andsentenceduptooneyear
c:Thebankershallbetreatedasaassesseeindefault
dAmountcanberecoveredfromthebank,withpenalty.
e:candd.
10YourbranchishavingafixeddepositreceiptofRs.2lacinthenameofB,whichistomature
afteroneyear.Bdefaultsinpaymentofloan.Therightofsetoffcanbeexercisedforaloan
againstfixeddepositreceipt:
a:Onmaturity
b:Evenbeforematurity
cbygiving30daysnotice,itcanbeexercised
d:anyoftheabove
e:Noneoftheabove.
11YourcustomerMr.Veerapanissuesachequepayableto`selfororder,forRs.55000.Itis
presentedforpaymentbyhispeonMr.Prakash.ThechequeisendorsedbyMr.Veerapanin
blank:
achequeshouldnotbepaidasitisdrawninfavourofself
bchequeshouldnotbepaidasitisnotdrawnproperly
cchequecanbepaidasitisproperlydrawnandendorsedinblankthepaymentofwhichcanbe
obtainedbythebearer
dchequespayabletoselforordercannotbeendorsedinblank
enoneoftheabove
12ThebankreceivedgarnisheeorderonsavingbankaccountofMr.Ramat10.50a.m.,who
depositsRs.5000at12.10p.m.i.e.afterserviceoftheorder:
a:Theorderwouldapplytothisamountalso.
b:Thebankwillrefusetoacceptthedeposit
c:Theorderwillnotapplytothisamount
dorderwillapplyifcourtisinformedaboutthis
e:orderwillapplyifcourtdeclaresso.
13Forthepurposeofchangeinclassificationofanadvancesfromstandardtosubstandard
categoryduetononpaymentoftheloan,incaseofcropbasedagricultureadvances,whichofthe
followingistaken:
atwoharvestseasons
btwocropseasons
conecropseason
dtwocropseasonsforshortdurationcropandonecropseasonforlongdurationcrop
etwoharvestseasonswithmaximumofoneyear.
14Anexporterhasreceivedrepaymentofcertainbillshehadsentforcollectionandnowwants
toretainthesameinforeigncurrency:
ahecanopencurrentaccountasEEFCaccount

bhecanopenfixeddepositaccountasEEFCaccount
checanopensavingbankaccountasEEFCaccount
dhecanopenanyoftheaboveprovidednointerestispaid
ehecanopenonlyaandc
15YourbranchmaintainsacurrentaccountofapartnershipfirmSandhu&Companywith
SandeepSandhuandKuldeepSidhuaspartners.MasterSandeshSandhu(son ofMr.Sandeep
Sandhu)isalsoadmittedtothefirmforbenefits.Inordertomeetthefinancialrequirementsof
thefirm,Mr.SandhuapproachesthebanktosanctionademandloanagainstanFDRinthename
ofMasterSandeshu/gofMr.SandeepSandhu:
atheloanisneededbythefirm,inwhichtheminorisapartner,hencecanbesanctioned
btheloanisbeingraisedbythefatheroftheminor,duetowhichitcanbesanctioned
ctheloancanbesanctionedbykeepingtheFDRassecurity
dtheloancanbesanctionedifthefatherdeclaresthatitisforthebenefitoftheminor.
eLoancannotbesanctioned
16CorporateBankhadgrantedatermloanofRs.20lactoM/sKawalSocietyLimitedwhichis
notbeingrepaid.Thecompanyissigningthebalanceconfirmationletterdespitethefactthatit
hasbeensentthreetimes.Banksendsalegalnoticeforrepaymentoftheloanwhichshows
balanceofRs.27lacnow.CompanyconfrontsbanksclaimofRs.27lacbywayofaletterstating
thattheyhavealreadypaidRs.5lacduetowhichtheamountshouldbeRs.15laconly:
atheletterwillservethepurposeofacknowledgementletterandextendthelimitationperiodfor
theentireamount
bthelettercouldextendthelimitationperiodifitweredulystamped
ctheletterisnotanacknowledgementitisonlyadenialofbanksclaim
danyoftheabove
enoneoftheabove
17YourbranchhassanctionedworkingcapitallimitofRs.9lactoapartnershipfirmwhich
submitsstockreportwithstocksworthRs.28lacandsundrycreditorsofRs.18lac.Themarginin
theaccountisonly20%,theunitbeinganSSIunit.Whatisthemaximumamountuptowhich
thelimitcanbeallowedtobeavailedbytheparty?
aRs.6lacbRs.8lac
cRs.9lacdRs.4.60lac
enoneoftheabove
18Anyoldbankhastofulfillthefollowingtermsandconditionstobeincludedinthesecond
scheduleofRBIAct1934:
a:ItshouldbeeitheraStateCoopBankoraCompanydefinedunderIndianCompaniesAct
1956oraninstitutionappointedbyCentralGovt.forundertakingbankingoperations.
b:Jointlyitspaidupcapitalandreservesshouldnotbelessthan5lac.
c:IthastosatisfyRBIthatnoneofitsfunctions,areagainstdepositorsinterest.
d:Alloftheabove.
eonlyc
19Forsmallscaleservicebusinessenterprises(SSSBE),theinvestmentceilinginfixedassets
excludinglandandbuildingis:
aRs.20lacbRs.3lac
cRs.5lacdRs.10lac

eRs.5lac
20ApersoncalledHimmatSinghhasbeenmaintainingasavingbankaccountwithyourbranch
forthelast10yearswherenonominationhasbeenopted.Nowhewantstomakenominationin
favourofhisminorson.
a:Bankwillaccepttherequestfornomination
b:Bankwillnotaccepttherequestfornominationinfavourofminorsincealongperiodhas
alreadypassedwhenaccountwasopened
c:Nominationinfavourofminorcanbeallowedonlywhenapersonisalsoappointedwhocan
receivethepaymentonbehalfofminoriftheaccountholderdiesduringhisminority
d:Both(c)and(b)above
enoneoftheabove
21UniversalBankhasbeenmaintainingajointfixeddepositaccountinthenameofMr.Asha
SinghandMr.ManjeetSingh.AftersuddendeathoftheMr.AshaSinghinaroadaccident,Mr.
ManjeetSinghapproachesthebankforpaymentofthefixeddepositbeforematurity,whichthe
bankmakesafterobtaininganindemnitybond.Thelegalheirsdisputethepaymentandinsiston
50%payment:
atheclaimoflegalheirsisnottenableasafterdeathofoneofthejointholders,thebalance
becomespayabletothesurvivor
bthebankhasmadethepaymenttothesurvivornegligently,asincaseofdeathofoneofthe
holders,thedepositreceiptcannotbecancelled
cthebankhasactednegligentlyasthepaymentwasrequiredtobemadetothelegalheirsofthe
deceasedholderandthesurvivorjointly
daandc
eanyoftheabove
22AbusinessfirmhasbeensanctionedworkingcapitallimitsofRs.6lacat25%marginbythe
bankandbookdebtlimitofRs.4lacat50%margin.Whatwillbetotalmarginrequirementto
availthelimitfully:
a4lacb5lac
c6lacd6.5lac
e8lac
23WhatisthemaximumtimeavailabletoacustomerforlodgingcomplainttoOmbudsman:
a1monthfromdateofcomplaintmadetobankandnoreplyreceived
b1monthfromdateofcomplaint,replyreceivedbutcustomernotsatisfied
c1yearfromdateofreceiptofreplyfromthebank
d1yearfromdateoflodgementofcomplaintwiththebank+1month,wherereplyhasnotbeen
received.
ec ord
24AnFDpayabletoeitherorsurvivorforRs.25000isinthenamesofAandB.Thereceiptislost
andaduplicateisissuedonthebasisofindemnity.LateronAcomeswithoriginalondateof
maturityforpayment.
a:ThebankwillpaytoAbecauseitispayabletoeitherorsurvivor
b:Thebankwillnotpaybecauseaduplicatehasbeenissuedmakingtheoriginalasuseless.
HencetheconsentofBisrequired
c:Thecourtwillbeinformed.

danyoftheaboveatthediscretionofthebank
e:Noneoftheabove
25RaviyourcustomerofasavingbankaccountisapproachedbyapersoncalledRamtogivean
introductiontoenablehimtoopenasavingbankaccountwithyourbranchtowhichheagrees.
SubsequentlyitisprovedthatRavigaveintroductionthoughhereallydidnotknowmuchabout
Ram.Insuchsituation:
a:BankcanholdRaviresponsibleashecarelesslygavetheintroduction
b:BankcannotholdRaviresponsibleasRavihasnotviolatedintroductionrules
c:Bankcanrecover50%ofamountfromRavi
danyoftheabove
e:Noneoftheabove
26Intt.inSFaccountiscalculatedon:
a:Minimumbalanceduringthemonth
b:Balanceason30thofthemonth
c:Minimumbalancebetween10thandlastdayofthemonth
dbalanceason10thandlastdayofthemonth
d:Noneoftheabove
27AgivesamandateinfavourofBtooperatehisaccountandlateronapowerofattorneyis
executedbyAinfavourhiswife.Inthecase:
a:Mandatewillwouldremaineffectivealongwithpowerofattorney
b:Mandatewouldbecomeineffective,ifrevokedspecifically
c:Courtinterventionshouldbehad
dOnlypowerofattorneywillbeoperative
e:aandb.
28Inapubliclimitedcompany,maximumandminimumno.ofshareholdersis:
a:50and10
b:Nolimitand7
c:100and2
d:1000and100
eanynumberatthediscretionofthecompany
29Acompanyisavailingcreditfacilitiesfromyourbranch.Whichamongthesecreditfacilities
doesnotrequireregistrationofchargesu/s125ofCompaniesAct1956for:
a:PackingCreditforshipmentofgoods
b:Hypothecationofstocks
c:Pledgeofstock
d:Termloanformachinery
ebillsdiscounting
30Fordoorstepbankingbybanks,RBIhasissueddirectivesunderwhichofthefollowingActs:
aRBIAct
bNegotiableInstrumentAct
cBankingRegulationAct
dShopsandEstablishmentAct
eIndustrialDisputesAct

31Inapartnershipfirm,theno.ofpartnerscannotgobeyond10or20dependinguponthe
natureofbusiness.Theprovisionregardingthismaximumno.ofpartnersismentionedin:
a:IndianPartnershipAct
b:IndianContractAct
c:IndianCompaniesAct
dBankingRegulationAct
e:Noneoftheabove.
32RaviKumarandSons,anHUF,maintainacurrentaccount.TheKartaoftheHUFdiesand
leavesbehindthreefamilymembersi.e.hiswifeandtwominorsons.Howwillyoudealwiththe
account:
a:Bankwillstopoperationsintheaccount
b:Accountcanbeoperatedbyminorsonbeingmalemember
c:Accountwouldbeoperatedbywidowbeingguardianofeldestmalemembertobecalled
Karta
daccountcanbeoperatedbyanyofthetwosons
e:Noneoftheabove.
33Whichofthefollowingdocumentsincaseofacompany,iscalledCharterofthecompany:
a:ResolutionfromBoardofDirectorsorShareholders
b:MemorandumofAssociation
c:ArticlesofAssociation
dCertificateofIncorporation
e:CertificateofCommencementofBusiness
34Abankreceivesachequeforcollectionfromitscustomer.Bankgivescreditbeforecollection
ofthecheque.Italsoallowsthecustomertowithdrawtheamount.Insuchcase,the:
a:Bankisholder
b:Bankisholderforvalue
c:Bankbecomesholderinduecourse
drepresentativeofthedrawer
e:Noneoftheabove
35Notnegotiablecrossingmeans:
a:Thecollectingbankershouldconfirmaboutthegenuinenessofholderbeforecollectionofhis
cheque
b:Thenotnegotiablechequecannotbefurthernegotiated.
c:CollectionofnotnegotiablechequewillnotgetprotectionunderNIAct
d:Atransfereecannotgetbettertitlethanatransferorandhealsocannottransferabettertitle
thanhepossesses.
eanyoftheabove
36Abillispayabletoortoorderofanontradingfirm.Endorsementcanbemadeby:
a:Anypartnerofthefirm
b:Allthe partners
c:Authorisedpartnerthroughpowerofattorney
d:Anytwopartners
eanyoftheabove
37Theterm`allongerefersto:

a:Aplainsheetappendedtoanegotiableinstrumentforthepurposeofmakingendorsement
thereon
b:Conditionalendorsementofanegotiableinstrument
c:Aplainsheetappendedtoawill
denclosurestothebalancesheetofthebank
e:Noneoftheabove
38AcustomerofDelhibranchofthebankhavingMulticitychequebookunderthecentralized
businesssolution(CBS)demandspaymentofachequeatLucknowbranchofthebankandthere
isconnectivitybetweenthesetwobranches:
aitisnotaproperdemand
bdemandisinorder.Lucknowbranchshouldpay.Bankwouldgetproperdischarge.
ctodemandmoneyallbank branchesareconsideredoneunitwhetherthechequeisnormalor
multicity.
ddemandisinorder,butLucknowbranchcannotgetvaliddischargeascontractiswithDelhi
branch
ebandc
39Achequeispresentedforpaymentthroughclearinghousebutduetocertainreasons,itis
returnedunpaid.Thereturningmemoisenclosedtocomplywith:
a:NegotiableInstrumentsAct
b:RBIAct
c:BankingRegulationsAct
d:Itisapractice
eRBIclearingHouserules
40Theprovisionformakingthepayment ofamountmentionedinwordsinachequeisdescribed
u/s...ofNIAct:
a:18b:19
c:20d:21
e118
41AbearerchequeisissuedbyoneMr.AshokinfavourofAman,butheforgetstohandover
thechequetoAman.Amanhowever,picksupthechequein hisabsencefromhistable.Whether
thenegotiationhastakenplace?
a:No,endorsementisalsoneeded
b:No,deliveryisalsoneeded
c:No,endorsementanddeliverybothrequired
dyes,thechequeisdrawninhisfavour
e:Noneoftheabove
42An exportclientM/sShanbegExportsofyourbranchreceivesanexportorderforexportof
handicraftitemstoUSunderaletterofcreditof$30000.Itisstatedthatyourbankcanissue
anothercreditinfavouroflocalsupplier/manufacturerfromwhomthe exporteristoprocurethe
material.Underwhichofthefollowingcategories,suchletterofcreditcanbeclassified:
aredclauseletterofcredit
bgreenclauseletterofcredit
cstandbyletterofcredit
dtransferableletterofcredit

ebacktobackletterofcredit
43AbankcanpurchaseNPAfromanotherbank,ifinthebooksofsellingbank,theaccountwas
NPAfor____:
a2years
b3years
c4years
d5years
e7years
44IfNPAispurchasedfromXbankbyYBankandYbankwantstosellittoZbank,whatisthe
minimumperiodforwhichtheaccountshouldremainwithbankY:
a:6months
b:12months
c:15months
d18months
e:36months
45Whatistheriskweightageforcapitaladequacypurpose,incaseofcreditcard:
a:25%
b:50%
c:100%
d:125%
e:150%
46IncaseofSJSRY,whatistheminimumno.ofmembersofwomengroupunderDWCUA:
a:25
b:20
c:15
d12
e:10
47UndertheNayakCommitteerecommendations,thequantumofworkingcapitallimitsfrom
thebankisminimum____oftheprojectedannualsales:
a:5%b:15%
c:20%d:25%
e3%
48AbearerchequeofRs.3lachasbeenpresentedbyMr.ShamKumar,thepayeesofacheque
drawnonyourbranch.Hebeingnewtothebankhasshowninabilitytogiveidentification:
aincaseofbearercheque,noidentificationisneededirrespectiveoftheamountofthecheque
bIdentificationisrequiredtosafeguardtheinterestofthebank
cIdentificationisessentialforallinstrumentsforgettingprotection
dIdentificationwouldnotberequiredifpresentedwithpassbook
enoneoftheabove
49Mr.DharmvirhasgivenapowerofattorneytoMr.AshokKumarforoperationofaccounts
anddealingwithnegotiableinstrumentsdrawninfavourofMr.Dharmvir.What willbethe
correctendorsementbyMr.AshokKumaramongthefollowing:

aDharmvirsd/byAshokKumar
bAshokKumarsd/AshokKumar
cForDharmvirsd/DharmvirbyAshokKumar
dForDharmvirsd/byAshokKumar(attorneyforDharmvir)
eForAshokKumar sd/byAshokKumar
50Mr.JugrajLalcomestoopenasavingbankaccountwithyourbranch.Healsohasachequeof
Rs.500,whichhewoulddepositintheaccountwhenaccountisopened.Whichamongthe
followingcanbeacceptedasfirstdepositintheaccount?
acashonlybcheque
cbankdraftdbankerscheque
eanyoftheabove
51Whatisthetarget(quota)forSC/STandotherbackwardclassesunderPMRY:
a40%,10%
b30%,20%
c22.5%,27%
d27%,22.5%
e20%,30%
52Incaseofapartnershipfirm,themanagingpartnerexecutethedocumentsonbehalfoffirm.If
youarebranchauditor,whatwouldyousuggesttothebranchstaff?
a:Allthepartnerssignalldocuments
b:Allpartnerssigninboththecapacitiesi.e.jointlyandseverally
cpartnerssignintheirindividualcapacity
d:Boththeabove
e:Noneoftheabove
53ForTermloantheperiodoflimitationisthreeyearsfrom:
a:Dateofdocuments
b:Dateofdefault
c:Dateofsanction
d:Duedateofeachinstalment
edateofdefaultofeachinstalment
54Incasethedebtisacknowledgedaftertheexpiryoflimitationperiod,thelimitationperiod
willbe:
a:Extendedbyanotherthreeyearsfromthisdate
b:Extendedforanotherthreeyearsfromdateofexpiry
cextendedfor 3years
d:Notbeextended
e:Noneoftheabove
55Intermloans,NPAistheaccountwhen:
a:Principalhasremainedpastduefor3monthswefMarch31,2004
b:Interest,principalorothercharges,remainunpaidforaperiodmorethan90dayswefMarch
31,2004
cInterestandprincipalhavefallendueandpaidaftermorethan90days
d:anyoftheabovewhicheverisearlier

e:Noneoftheabove
56Whatistheextentuptowhichthecreditisallowedtowomenaspartoftheoverallcredit
being extendedbythebanks:
a3%oftheirprioritysectorcredit
b5%oftheirtotalcredit
c5%oftheirnetbankcredit
d5%oftheirprioritysectorcredit
e5%oftheirincrementaldeposits
57IncaseofadvancescoveredunderECGCorDICGCguarantee,theprovisionunder
provisioningguidelinesistobemadefortheoutstandingbalance:
a:Afterreducingtheamountofcoveravailablefromtheoutstandingbalance
b:Withouttakingintoaccounttheabovesaidcover
creducingtheamountifactuallyrecovered
d:Anyoftheabove
e:Noneoftheabove
58Inthegroupapproachsystemoflending,thefollowingnormshavebeenprescribedbyRBI
relatingtoceilingonexposureofbanks:
a:15%ofcapitalfundforindividualborrower
b:40%ofcapitalfundforborrowinggroup
c5%forinfrastructureprojects
d:aandbabove
e:atocabove
59Whatisthe%ageofloanaccountsthatistoberoutedthroughruralorsemiurbanbranchesin
DRIadvances:
a2/3rd
b50%
c40%
d1/3rd
e30%
60What isthereservationforwomeninSGSYscheme:
a:60%
b:50%
c:40%
d30%
e:25%
61Therearecertainfinancialinstrumentswhosepricesarederivedfromthepriceofthe
underlyingcurrencyorinterestrateorstocksetc.Theseareknownas:
aDerivativesbSecuritisation
cLeasingdFactoring
eVentureCapitalFunding
62TheconceptsofMonetaryAggregatesandLiquidityaggregatessuchasM1,M2,M3andL1,
L2andL3havebeenrevisedontherecommendationsofwhichofthefollowingcommittees:

aNarasimhamCommittee
bRangarajanCommittee
cRajaChelliahCommittee
dYVReddyCommittee
eLCGuptaCommittee
63Aprocess,throughwhich,amemberownedorganisationbecomesashareholderowned
company,iscalled:
aDemutulisation
bDematerialisation
cFactoring
dDerivatives
eSecuritisation
64Aftertheconversionofhypothecationintopledgethebankwillhavethesamerightasthatof:
a:Pledgeeb:Mortgagee
c:Pledgerdhypothecatee
e:Hypothecator
65OnCRRthebanksgetinterest___on___:
a:bankrate,entirebalance
b:3.5%,eligiblebalance
c:bankrate,eligiblebalance
d3.5%,entirebalance
e:discretionofRBI.
66Chargecreatedbyaborrowerinfavourofasecuredcreditoronmovableassetswithout
possession,isknownasperprovisionsof___Act:
a:Lien,IndianContractAct
b:Assignment,SARFAESIAct
c:Mortgage,TransferofPropertyAct
d:Hypothecation,IndianContractAct
enoneoftheabove
67WhatisthefundingratioforSGSYschemewithinstateandcentralgovt.:
a:25:75
b:33:67
c:50:50
d75:25
e:80:20
68WhichtwocurrencieshavebeenincludedbyRBIinitsREER:
a:JapaneseYenandChineseYuan
b:ChineseYuanandSingaporeDollar
cSingaporeDollar&AustralianDollar
d:AustralianDollar&CanadianDollar
e:noneoftheabove
69Whichamongthefollowingislimitedto150%ofthresholdyieldundertheRashtriyaKrishi

BimaYojna?
atheamountofloantobecoveredbytheinsurancepolicy
btheamountofpremiumontheinsurancepolicy
ctheamountoftheinsurance
dtheamountofclaimundertheinsurancepolicy
eanyoftheabove,whicheverishigher
70WhatistheamountofclaimwhichwillbepaidimmediatelybytheCreditGuaranteeFundto
abankiftheamountof loanindefaultisRs.16lacontheeligibledate:
aRs.16lac
bRs.12lac
cRs.9lac
dRs.3lacenoneoftheabove
71Thefundingintheratioof75:25isdonebyCentralandStateGovt.forwhichofthefollowing
Govt.sponsoredschemes:
aPMRY Scheme
bSJSRYscheme
cDRIscheme
dSLRSscheme
ealltheabove
72Yourbranchproposestosanctionloantoaretailtraderforthecommoditieswhicharenot
coveredbythedefinitionofessentialcommodities.Whatisthemaximumamountofloanthat
couldbesanctionedtotheborrower:
aRs.3lacbRs.5lac
cRs.10lacdRs.20lac
enoceiling
73Aletterofcreditissilentaboutthecurrencyinwhichtheinsuranceistobeobtained.Inwhich
ofthefollowingwillitbeobtained?
aIndianrupeesbEuro
cUSDollardPound
ecurrencyoftheletterofcredit
74Whichofthefollowingconfersonthetrustees,thepowertoobtainloan:
a:Trustdeed
b:Trustdeedwriter
c:Beneficiary
dresolutionfromthetrustees
e:CommissionerofCharity
75Whatistheamountofminimumpaidupcapitalandcapitaladequacyratio%foranew
privatebank:
a:Rs.100cr,15%
b:Rs.200cr,15%
c:Rs.200cr,12%
dRs.200cr,10%
e:Rs.300cr,10%

76Onwhichkindofthefollowingdeposits,theseniorcitizenscanbeallowedadditionalinterest
asperRBIdirectives?
acurrentdeposits
bsavingbankdeposits
ctermdeposits
datocall
ebandconly
77HowmanyreviewoftheAnnualPolicyStatement(CreditPolicy)aremadebyRBIandwhen:
aOne,duringOctober
btwo,duringAprilandOctober
cThree,duringJuly/October/January
dFour,duringApril,July,Oct&Jan
enoneoftheabove
78ThemaximumleveluptowhichSLRismaintainableis:
a25%b30%
c35%d40%
e45%
79AspertheloandeliverysystemrecommendedbyJilaniCommittee,theborrowersare
requiredtosplittheirfundbasedworkingcapitallimitsorMPBFinto:
atermloanandbills
bdemandloanandcashcredit
cworkingcapitaldemandloanandcashcredit
dcashcreditandbills
etermloanandcashcredit
80PromptcorrectiveactionisinitiatedbyRBIinrespectofwhichofthefollowing:
awhencapitaladequacyisbelow%
bwhennetNPAsareabove10%
cwhenreturnonassetsfallsbelow0.25%
datocall
eaandb
81WhatisthelevelofnetNPAofabankwhenonsatisfyingotherconditions,thebankcan
declaredividend:
alessthan9%
blessthan8%
clessthan7%
dlessthan5%
elessthan4%
82Achequewithamountinwordswrittenasrupeesfivethousandispresentedbuttheamount
infiguresisnotstated.Thepayeeinsistsonimmediatepayment:
achequecanbepaidafterconsultingthedraweronly
bchequecanbepaidafterobtainingindemnityfromthepayeeandthedrawer.
cchequecanbepaidforamountinwordsu/s18ofNegotiableInstrumentAct

dchequebeingInchoateInstrumentcannotbepaid
enoneoftheabove
83AbearerchequehasbeendrawninfavourofMrs.Durani,whowantstonegotiateitfurther.
Howshewillendorsethecheque:
aDurani(Mrs.)bMrs.Durani
csd/(Mrs.Durani)dAnyofabove
enoneoftheabove
84Whichamongthefollowingisthemostappropriatecrossingtoconsiderita`specialcrossing?
a`PayXthroughhisbankwithintwotransverselines
bPayeesaccountthroughhisbankwithouttransverselines
cNameofthebankwithouttransverselines
dNameofthebankwithintransverselines
ecandd
85Whichamongthefollowingisprovidedu/s22ofNegotiableInstrumentActinthe contextofa
BillofExchange:
adraweetobepermitted48hoursforacceptanceofthebill
bdraweecanacceptthebillbysigningonthefaceofthebill
cpresentationofthebillshouldbeatthebusinessplaceofthedrawee
ddraweecanbeallowed 3daysofgraceformakingpayment
edraweecanmakethepaymentonnextprecedingbusinessdayifthepaymentfallsdueona
holiday
86Atermloanissanctionedfor:
a:Workingcapitalpurposes
b:Investmentincurrentassets
c:Investmentinfixedassets
dbothforfixedassetsandcurrentassets
e:anyoftheabove
87Whatisthemaximumamountofdonationthataprofitmakingbankmakeduringayear:
a:5%ofitsprofitsaftertax
b:4%ofitsauditsprofits
c:2%oftheprofitsofthepreviousyear
d:1%oftheprofitsofthepreviousyear
emaximumRs.5lac
AborrowingfirmsubmitstotheCommercialBank,thebalancesheetwithfollowingparticulars:
CapitalandReserves24lac
Termloans16lac
TradeCreditors12lac
Expensespayable8lac
Bankcashcredit20lac
Fixedassets24lac
SecuritydepositforElectricity4lac
Preliminaryexpenses2lac
Stocks30lac

Billsreceivable/bookdebts14lac
Cashandbankbalances6lac
Netprofits6lac
Sales120lac
Onthebasisofaboveinformation,pleaseworkthefollowingratio?
88Currentratiowouldbe:
a1.10:1b1.15:1
c1.20:1d1.25:1
e1.33:1
89Whatwillbethequickratio:
a0.85:1b0.75:1
c0.50:1d0.40:1
e0.30:1
90Thedebtequityratiowouldbe:
a2.1:1b1.76:1
c1.34:1d1.10:1
e0.73:1
91Debtorsvelocityratiowouldbe:
a1.4monthsb1.6months
c1.8monthsd2.0months
e2.2months
92Whatwillbestockturnoverratio:
a3timesb4times
c5timesd5.5times
e6times
93UnderUniformPracticesforDocumentaryCredit,ifquantityisnotspecifiedtobeexceededor
reduced,itshouldnotexceedthetolerancelevelof:
a1%b2%
c3%d5%
e10%
94Incaseinterestratesriseduringayear,thecurrentmarketvalueofexistingGovt.securities
generally:
aremainconstant
bincreases
cfalls
dmovesupafterfallinginitially
enoneoftheabove
95WhichofthefollowingisnotatermwhichisusedinthecontextofAssetLiability
Management?
aMaturityBuckets

bCapitalFund
cResidualmaturity
dInterestraterisk
enoneoftheabove
96WhichagencyprocessestheloanapplicationsundertheschemeSwarnJayantiShehriRozgar
Yojna:
aDRDA
bDisttIndustryCentre
cKVIC
dUrbanlocalbody
eReserveBank
97Underwhichofthefollowingcategories,acontractofinsuranceiscategorised?
acontractofagency
bcontractofguarantee
ccontractofindemnity
dcontractofguaranteeandindemnity
eanactionableclaim
98Undertheprovisionsoflaw,whatisthemaximumno.ofcompanies,ontheBoardofDirectors
ofwhich,anindividualcanbecomeaDirector:
a5b10
c15d20
e25
99AsperRBIdirectives,whatamountabankisexpectedtotransfertostatutoryreservefund:
a20%ofprofitsbefore tax
b25%oftheprofits
c20%ofprofitsbeforedeclarationofdividend
d25%ofprofitsbeforedeclarationanddividendandtax
e25%ofprofitsbeforedividenddeclaration
100AchequeofRs.15000issuedinfavourofM/sManishKumar&Sonsisdepositedbythe
proprietorofthefirmMr.ManishKumarinhispersonalsavingbankaccount,whichthe
collectingbankrefusestocollect,toguarditselfagainstconversion,whileManishKumarinsists
onthat:
athestandtakenbythebankiscorrectsince thechequebelongingtothefirmcannotbecollected
fortheaccountofindividual
bthestandtakenbyManishKumariswrongasitisdiscretionofthebanktodecidewhetherto
collectornot
cstandtakenbythebankisincorrectsinceinthecaseofproprietorship,theaccountofthefirm
andthatoftheindividualareconsideredinthesamenameandsamecapacity
dchequecanbecollectedonlyifManishKumarprovidesanindemnity
enoneoftheabove

Answers:TestNo.1
01e02d03c04c05a06a07c08d09e10a11c12c13d14a15e16a17b
18d19d20c21c22c23e24b25b26c27e28b29c30c31c32c33b34
b35d36b37a38b39e40a41b42e43a44c45d46e47c48a49d50e
51c52b53d54d55b56c57a58d59a60c61a62d63a64a65b66e67
a68b69c70c71b72c73e74a75e76c77c78d79c80d81c82d83e84
e85d86c87d88d89c90e91a92b93d94c95b96d97c98c99e100c

MOCKPRACTICETEST:2
1InternationalBankopenedasavingbankaccountinthenameofMr.RSinghandatthetimeof
openingoftheaccounthandedovertohimthecopyofrulesandregulationsforconductingthe
accountwhichalsoprovidedthatthechequebookshouldbekeptunderlockandkeyandfor
lossifanyarisingfromnotcomplyingwithrequirement,bankwillnotberesponsible.The
customerkeptthechequebookindrawerandoneofhisofficecolleaguestookoffonecheque
leaveandbyforgingthesignaturesofMr.RSinghwithdrewthemoneyfromthebank.The
customerclaimstherefundofthemoney:
athebankisnotunderobligationtorefundthemoneyasthelosshasbeencauseddueto
negligenceonthepartofthecustomer
bthelosswouldbeshared equallybythecustomerandbankasbothofthemhavebeenatfault.
cbankwouldadvisethecustomertorecoverthemoneyfromtheforgerwhoisofficecolleagueof
thecustomer
dbankisliableformakingpaymentofaforgedchequeandwillhavetorestoretheamountto
thecreditoftheaccount
eanyoftheabove.
2YourbranchmaintainsasavingbankaccountofMr.Dharma,anilliteratepersonwhowantsto
goabroadforsometime.Hewantstoauthorisehiswifetooperatetheaccount.Whichamong the
followingwillbemostconvenient/easywaytoachievetheobjective:
apowerofattorneydulyregisteredwiththeRegistrarofAssurances
baddingthenameofwifetotheaccountandmakingtheoperationseitherorsurvivor
cauthorisingtheanother personthroughmandate(asimpleletter)
dmakinghiswifenomineeintheaccount
eanyoftheabove
3Mr.SamenduhasbeenmaintainingacurrentaccountwithCorporateBankforthelast3years
withsubstantialbalanceofRs.3lac.Bankgetsaconfirmedreportthathehasfiledaninsolvency
petition.BankalsoreceivesachequeofRs.1.50lacforpayment:
achequewillbereturnedbythebankaspaymentwillnotbeapaymentinduecourse
bchequewillbereturnedaspropertyisnowvestedwithofficialassignee
cchequewillbereturnedundersuchdoubtfulcircumstances
dchequeswillbepaidandoperationsintheaccountwillbepermittedtillthecompetentcourt
declareshiminsolvent
enoneoftheabove
4Apartnershipfirmhavingitscurrentaccountwithyourbranchwithdrawscashinthemorning
amountingtoRs.45000.AtnoonitwithdrawsmoreamountofRs.27000.Intheeveningyet
anotherwithdrawalofRs.28000ismadebythefirm.WhatisthestatusofapplicationofBanking
CashTransactionTax:
abankisrequiredtodeductthetaxasthetotalamountofwithdrawalonasingledayisRs.1lac
bbankisnotrequiredtodeductbecausetheamountisnotmorethanRs.1lac
cbankisnotliabletodeductbecausetheamountofsinglewithdrawlislessthanRs.1lac
dbankisrequiredtodeductastheamountofeachwithdrawalisaboveRs.25000
enoneoftheabove
5YourbranchhasgrantedademandloanofRs.60000toSh.BanwariLalagainsthistermdeposit

ofRs.1lac.ThebranchhasreceivedacourtattachmentorderforRs.50000relatingtothisdeposit.
Whichofthefollowingactionshouldbetakenbythebank:
asincethedepositisalreadyunderlienofthebank,bankshouldignoretheorder
bsincethereisadequatebalanceinthe FDRaccounttomeettheliabilityoftheloan,thebankcan
followtheinstructionsintheattachmentorderafterrecoveryofitsowndues
cbankshouldseekspecificconfirmationfromcourtbeforeadjustmentofitsdues
dthebranchwillmeettheattachmentorderliabilityondateofmaturityoftheFDR
ebanksliabilityisofcontingentnatureduetowhichtheliabilityunderattachmentorderwillbe
metfirst.
6Sh.DesRajablindpersonsapproachesMeerutbranchofCommercialBankforopeninga
currentaccountasheisengagedascommissionagentinfruitbusiness.Thebankhowever
refusestoopenthecurrentaccountgivingthereasonthatsuchaccountsarenotpermittedinthe
lightofpracticaldifficultiesinvolvedinoperationoftheaccount:
aRefusalofthebankisnotjustifiedasablindpersoniscompetenttocontractandcanalsoopen
acurrentaccount
bRefusalofthebankisjustifiableinthelightofpracticaldifficulties.
cRefusalofthebankisjustifiedinthelightofpossiblelosswhichthecustomermayincur
dbandc
eonlyc
07Acompanyishavingitscurrentaccountwith3branchesofyourbankandonasingledays
makescashwithdrawalsofRs.40000fromonebranch,Rs.35000fromthe2ndbranchand
Rs.25000fromthe3rdbranch.WhatisthestatusofapplicationofBankingCashTransactionTax:
abankisrequiredtodeductthetaxasthetotalamountofwithdrawalonasingledayisRs.1lac
bbankisnotrequiredtodeductbecausetheamountisnotmorethanRs.1lac
cbankisnotliabletodeductbecausetheamountofsinglewithdrawlislessthanRs.1lac
dbankisrequiredtodeductastheamountofeachwithdrawalisofRs.25000orabove
eBankisnotrequiredtodeductastheamountislessthanRs.1lacforeachbranchandthe
amountwithdrawnfromallbranchesisnottobeaggregated
8TheexposureceilingonindividualborrowersunderthegroupapproachinIndianbanksfrom
March31,2002asperRBIdirectivesisrestrictedto:
a12%ofthecapitalfund
b15%ofthecapitalfund
c18%ofpaidupcapital
d22.5%ofpaidupcapital
e15%ofthepaidupcapital
9ThetermARCusedinNarasimhamCommitteeReportIIstandsfor:
aAssetrestructuringcorporate
bAssetrelocationcompany
cAssetreconstructioncompany
dAssetredeploymentcorporate
enoneoftheabove
10WhichofthefollowingtypesofoperationsmodesarepermittedundertheSeniorCitizens
SavingScheme2004:
agenerallysingleaccount

bjointmodewiththespouse
cjointoperationwithanyone
daandbonly
eatocall
11Mr.AkashKhannaishavinghispersonalsavingaccountwithUnitedBanksChandigarh
branch.HeisalsothesoletrusteeofKhannaCharitableTrustandoperatestheaccountofthe
trustwhichisalsomaintainedwiththebank.Inconnectionwithanimportantpersonalworkhe
proposestoproceedabroadfor6monthsandseeksyourguidanceforsmoothoperationsinthe
accounts:
ahecangivemandateinfavourofsomeofhisfriendorrelativeforoperationsintheaccounts.
bhecanexecuteapowerofattorneyinfavourofaknownpersonforoperationsinboththe
accounts
checangivemandateorpowerofattorneyforhispersonalaccount
dhecannotdelegatethepowerstoanyoneincaseoftrustaccount andcouldleavesomecheque
leavesproperlysignedforuseincaseoftrustaccount
ecandd
12Whatistheamountofbalanceinadeceaseddepositorsaccount,wherethebank,depending
uponthecircumstancesmayaskforalegalrepresentationsuchassuccessioncertificate,letterof
administration,probate:
aincaseofjointsurvivorshipaccounts,norequirement
bincaseofnominationaccounts,norequirement
cincaseofaccountswithnonominationorsurvivorshipprovision,discretionofthe bank
dBankscannotaskforsuchrepresentations
eatoc
13Aborrowerinyourbranchhascreatedanequitablemortgage.Theregistration,underSection
125,ofsuchachargewithRegistrarofCompaniesis:
a:Requiredtomakeitbindingonliquidator
b:Notrequiredbeingoralmortgage
c:Requiredsometimeswhenmemorandumofdepositissubmitted
d:aandc
eNeverrequired
14Whatisthemaximumtimelimitforthebankstosettletheclaimsinrespectofadeceased
depositorsandreleasepaymentstothesurvivors/nominees:
a7days
b10days
c15days
d30days
enotimelimit
15ApartnershipfirmwantstoopenaCurrentAccountwithyourbranch,butitisnotregistered
withRegistrarofFirms.
aIstheregistrationofapartnership firmessential?
b:Itisnotessentialasitisonlyoptional
c:Itdependsonwillofcreditorsofthefirm
d:Itdependsonwillofthebank

ecandd
16RBIregulatesthemoneymarketandSEBIregulatesthecapitalmarket.Whichsegmentis
regulatedbyIRDA,outofthefollowingsector:
atelecombinsurance
cbankingdsoftware
ebandd
17Inforeignexchangetransaction,whichofthefollowingisthebasicbuyingrate:
aBillsbuyingrate
bTTbuyingrate
cDirectrate
dIndirectrate
eaandb
18Thecasesofdeceaseddepositorswheretheclaimshavebeenreceivedandpendingbeyond
thestipulatedperiodarerequiredtobereportedtowhichofthefollowing:
aBoardofDirectorsofthebank
bOmbudsman
cReserveBankofIndia
dCustomerServiceCommitteeoftheBoard
eAlltheabove
19Whichofthefollowingkindsofjointaccountscannotbecategorizedasanaccountopened
withsurvivorshipclause:
aeitherorsurvivor
banyoneorsurvivor
cformerorsurvivor
dletteror survivor
enoneoftheabove
20XopenedanaccountwithyourbranchundertheSeniorCitizensSavingScheme2004for3
years.Heneedsthefundstomeethismedicalexpensesbyraisingalongonthebasisofpledgeof
thedeposit.Whatprecautionswouldbetakenbythebank:
atheloancannotbesanctionedunderthescheme
btheloanamountshouldnotbemorethan80%oftheamountoforiginaldeposit
ctheloanamountwillbelinkedtopresentmaturityvalueofthedeposit
dtheloanwouldbeallowedafterobtainingawrittenrequestsupportedbyaestimatefrom
hospital
enoneoftheabove
21Whenasellerundertakestomakethegoodsavailableforexport,athisfactory,such
arrangementiscalled:
aExworksbFOB
cCIFdFORonship
enoneoftheabove
22WhichamongthefollowingisnotcorrectinconnectionwiththeLokAdalats,whichhave
comeintoprominenceintherecentpast?

aproceedingsbeforeLokAdalataredeemedtobejudicialproceedingsunderCivilProcedure
Code
bLokAdalathaspowertosummonandenforceattendanceofwitnesses
cLokAdalathavethesamepowerswhicharevestedinacivilcourtundertheCodeofCivil
Procedure.
dLokAdalatscanentertainpecuniary(financial)caseswithoutanyceilingontheamount
enoneoftheabove
23InternationalBankLimitednegotiateddocumentsworthEuro15000againstawithout
recourseirrevocableletterofcreditissuedbyabankinUK.Whenthedocumentsweresenttothe
openingbankinUK,thesewerereturnedwiththe reasonthatthebillofladingandtheinsurance
certificateattachedtothedocumentsarefake.Openingbankalsorefusedtomakethepayment
againstthesedocuments,whichareotherwiseaspertermsoftheletterofcredit.Whatisthe
positionofInternationalBankLimited?
aBankhasactednegligentlybyacceptingfakedocumentsduetowhichitcannotrecoverthe
moneyfromopeningbank
bBankhastheoptiontorecoverthemoneyfromthesellerwhohastenderedfakedocuments
cBankcanrightlyclaim themoneyfromopeningbankunderUCPDCprovisionssincethebank
wastoseetheregularityofthedocumentsandwasnotresponsiblefortheirbeingfake
dBankwillhavetoapproachinternationalcourt
eaandbabove
24Forfinancingapumpset,whichofthefollowingstandardswillbetakenintoaccount?
aISO9001bISO9002
cISO9004dBIS
eBIS2101
25WhatistheagecriteriaforunderSeniorCitizenSavingScheme2004foropeningtheaccount:
a55years
b65years
c60years
d55yearsincaseofthosewhoareretiringvoluntarily
ecandd
26Liabilityoftheguarantorinacontractofguaranteeis:
a:Unlimitedwhereitisnotrevoked
b:Irrespectiveoftheliabilityoftheprincipaldebtoritdoesnotcontinue
c:Coextensive withthatoftheprincipaldebtor
d:aandc
eNoneoftheabove
27Becausethebanksrightundergenerallienisanimpliedpledge,incaseofdefault,thebank,
aftergivingaproper/reasonablenoticetotheborrowercan:
a:Convertgenerallienintoaparticularlien
b:Sellthesecurityundercertaincircumstanceswithoutfilingasuit
c:Cansurrenderitsright,iftoldbyRBI
d:aandc
eNoneoftheabove

28Incasethepledgeefailstoretransferthepossessionofthegoodstothepledgeronrepayment
ofloan,withinareasonableperiodandthegoodsaredamaged,accordingtoSection161of
IndianContractAct:
a:Pledgeewouldberesponsibleforloss,ifany
b:Pledgerwouldberesponsible,forloss,ifany
c:Godownkeeperwouldbe responsible
d:damagewouldbetotheaccountofbothofthemequally
eNoneoftheabove
29Forachargehypothecation,registrationwithRegistrarofCompaniesu/s125ofIndian
CompaniesAct:
a:Wouldbeinbanksinterest
b:Registrationnotrequiredashypothecationisjustlikeapledge
c:Registrationiscompulsorybecauseoffloatingcharge
d:registrationiscompulsorybecauseitischargeonactionableclaims
eNoneoftheabove
30YourbranchreceivesachequeofRs.20000drawnfromSB accountinfavourofLICofIndiaby
yourcustomermaintainingSBandCurrentAccount.SBaccounthasbeenshowingbalanceof
Rs.15678andthecurrentaccountRs.12940:
achequewouldnotbepassedastheaccountonwhichchequeisissueddoesnothavesufficient
balance
bchequewouldnotbepassedasbankcannottransferthebalancefromoneaccounttoanother
accounteventhoughthereisinstructionfromtheaccountholder
cchequewouldbepassedafterspeakingtothecustomeroverphone
dchequecouldbepassedaftertransferringthebalancefromoneaccounttoanother
eanyoftheabove,accordingtothemeritofthecustomer
31Whatistheroleofadvisingbankincaseofaletterofcredit:
atoforwardtothesellerandtonegotiatedocuments
btoverifythegenuinenessofLCandforwardittotheseller/beneficiary
ctogiveconfirmationthatpaymentwouldbemadebyitincasetheissuingbankfailstomake
thepayment
dtoallowpreshipmentcreditifaskedforbythebeneficiary
ealltheabove
32Whatwillbeduedateforabilldated1.2.2004payable45daysaftersightandthebillswas
acceptedon6.2.2004:
a:23.3.2004b:25.3.2004
c:26.3.2004d:28.03.2004
eNoneoftheabove
33Forbankstoenterintoinsurancebusiness, amongothers,theNPAlevelshouldbe:
anotmorethan10%
bnotmorethan9%
cnotmorethan5%
dreasonable
enoneoftheabove

34Themaximumperiodforwhichacertificateofdepositcanbeissued:
a7days
b15days
c179days
dnotmorethan12months
e3years
35ModelBankissuedanFDRinthenameofMr.XandhiswifeW.MrsWcomestothebank
andrequestforprematurepaymenttomeettheexpensesontreatmentofMr.Xwhoisadmitted
toonehospitalandcannotsign,becauseoffracturedhands:
atherequestofWwillbeconsideredonsympatheticconsideration
btherequestofWwillbeconsideredonproductionofcertificatefromthehospitaltotheeffect
thatMr.Xisadmitted
ctherequestofWwillbeturneddownaltogether
dpaymentcanbemadeafterverifyingthefactsandafterobtainthumbimpressionofMr.Xin
thehospital,witnessedbytheattendingDoctor
enoneoftheabove
36CorporateBankhassanctionedaloanofRs.5lacforpurchaseofacartoalawyer.Under
whichofthefollowingcategoriesitwillbeclassified:
asmallbusiness
bprofessionalandselfemployed
csmallscaleserviceandbusinessenterprise
dselfemployed
enonprioritysectoradvance
37Productionofoilseedsandpulsesisconnectedwithwhichofthefollowing:
agreenrevolution
byellowrevolution
cbluerevolution
dwhiterevolution
enoneoftheabove
38Achequehasbeenpresentedthroughclearinghouseandbearsspecialcrossingoftwobanks.:
a:Draweebankwillpaytothebankinwhosefavourspecialcrossingappearsfirst
b:Paytoeitherofthebanksandpaymentshallbeinduecourse
c:Returnthechequewiththeremarkscrossedtotwobanks
d:aandb
eNoneoftheabove
39AchequehasbeenendorsedinfavourofZwiththeconditionthatpaymentofthechequecan
bemadetohimonlywhenhemarriesY.Inthiscasethedraweebankshouldensurewhile
makingpaymentthat:
a:ZmarriedY
b:ThereisnoneedforbanktoensuremarriageofZtoY
c:Drawerthatmarriagehastakenplace
d:ifchequeispresentedforpayment,bankshallpaythecheque
ebandd

40BankInternationalLimitedhadgrantedaloanofRs.65lactoM/sJuaryFertilisersLtdfew
yearsbackbutduetoproblemwiththeindustry,theaccountcouldnotbeconductedproperly
forfewmonthsandhasbecomesubstandard.Partywantstosettletheaccountwiththebankto
makeitlegallybindingonboththepartieswithoutinvolvingitselfinalengthylegalstruggle.
Bankisalsoagreeablefortheirproposal:
atheycanenterintoacompromisesettlementandgetitapprovedfromHighCourtoftheState
btheycangotoaLokAdalatandgettheconsentdecree
ctheycangotoanotarypublicandgivedeclarations
dtheycanapproachaLok AdalatofDRTforaconsentdecree
eanyoftheabove
41AchequehasbeenissuedinfavourofAororder.Athisrequestthedrawerconvertstheorder
tobearerandputshissmallinitialstoauthenticatethecancellation:
a:Thebankwillmakethepaymentasmandateisclear
b:Thebankwillnotmakepaymentascancellationrequiresfullsignatures
c:Thebankseekconfirmationfromaskthedrawerwhetheritishissignatures
d:aandb
ecandd
42Whileprovidingfinancetoaproject,theterm NetPresentValuemethodrepresentswhichof
thefollowing:
atofindoutthepresentvalueoftheinvestmentmadeintheproject
batooltounderstandastowhatshallbethepresentvalueoftheloanbeinggivenattheendofa
particularperiod.
cpresentvalueofthecashflowswhichtheprojectwouldgenerateoveratimeperiodonthe
basisofadiscountfactor
dpresentvalueofthecashoutgooverthelifetimeoftheprojectsoastounderstandtheactual
outlay
ethediscountrateatwhichthepresentvalueoffuturecashflowsbecomeszerotakinginto
accounttheinvestment.
43Whichofthefollowingmethodcanbeusedtocalculatethepercapitaincomeofacountry:
a:Totalfamilyincome/numberoffamilymembers
b:Nationalincome/ totalpopulation
c:Totalincomeofvariousindustries/totalnumberofindustrialworkers
d:TotalGovt.revenue/totalpopulation
eaandb
44WhichamongthefollowingaspectsaretakenintoconsiderationbyRBIforitsPrompt
CorrectiveAction(PCA),whileinitiatinganyactionunderthescheme:
acapitaltoriskassetsratio
bnonperformingadvances
creturnonassets
daandcabove
eatocabove
45WhichamongthefollowingisthefirstbanktoreturncapitaltotheCentralGovernnent:
aStateBankofIndia
bPunjabNationalBank

cOrientalBankofCommerce
dCanaraBank
eCorporationBank
46ProjectAhashigherfixedcostthantheprojectB.WhatwillbetruewithregardtoBreakeven
pointoftheseproject,otherthingsbeing equal:
aprojectAhashigherbreakevenandscopeofbetterprofits
bprojectAhashigherbreakevenandscopeoflowerprofits
cprojectBhashigherbreakevenandscopeofbetterprofits
dprojectBhashigherbreakevenandscopeoflowerprofits
eBreakevenshallbeequalbasedonthecashflows
47UnderwhichsectionofBankingRegulationAct1949,everybankingcompanyhastosubmit
annualstatementofallthoseaccountswhicharelyingunderinoperativecategoryforthelast10
years(calledunclaimeddeposits)toRBI:
a:27b:26
c:19(2)d:15
e12
48Acompanyhasbeenformedtoundertakethebusinessofsoftwaredevelopment.This
objectiveofthecompanywouldbefoundinwhichofthefollowingdocuments:
aCertificateofIncorporation
bCertificateofCommencementofBusiness
cResolutionfromBoardofDirectors
dArticlesofAssociation
eNoneoftheabove
49Whenabankerisactingonthestandinginstructionsofacustomer,theirrelationshipisof:
a:Anemployerandanemployee
b:Anownerandaservant
c:Atrusteeandbeneficiary
d:Aprincipalandanagent
eAgentandprincipal
50Underwhichofthefollowingmethodsofdepreciationonfixedassets,theannualamountof
depreciationdecreases:
aWrittendownvaluemethod
bStraightlinemethod
cAnnuitymethod
dInsurancepolicymethod
eaandcabove
51AnimporterhasimportedfromAustralia(invoicingAusDollar)certainplantandmachinery
thepaymentofwhichistobemade2monthsafter.Onthebasisofprevailingsituationthehome
currencyisexpectedtorecorddepreciationcomparedtoAusDollar.Whatshouldbeimporter
do:
aHemustgoforaswapofAusDollarwithRupee
bHemustarbitrageinAusDollars
cHeshouldbookaforwardcontract andpurchaseAusDollar

dHeshouldsellAusDollarsimmediately
eHeshouldpurchaseAusDollarsspot
52Themethodologythatfocusesoneliminatingthedefectsandfacilitatingdatadrivendecision
making:
amanagementbyobjectives
bcustomerrelationmanagement
csixsigma
dstrategicmanagement
eTotalqualitymanagement
53Abankcarriespositivegapinitsassetliabilitypositioni.e.ratesensitiveassetsarehigherthan
theratesensitiveassets.Whatwouldtheimpactofincreaseininterestrates:
aNetinterestmarginwoulddecrease
bNetinterestmarginwouldincrease
cMarketvalueoftheassetswouldincrease
dMarketvalueoftheliabilitieswouldincrease
eTherewillbenoimpact.
54Collectionperiodofitssundrydebtorshasbeenincreasinginrespectofafirmbuttheperiod
availabletoitforpaymenttosundrycreditorshasbeendecreasing.Thiswouldleadto:
aincreaseinitsworkingcapitalrequirements
bdecreaseinitsworkingcapitalneeds
cnochangeinitsworkingcapitalneeds
dhigheramountofinterestpayment
eNoimpactonanyofthefinancialparameters
55Aprocessunderwhichitisexpectedthatacombinedentity(combinationoftwoormore)
wouldbeabletoexceedtheindividualearningoftheentitiesbeingcombined:
asixsigma
btotalqualitymanagement
csynergy
dinternalrateofreturn
emanagementbyprofiteering
56Thefacilityofremittanceisnotavailabletowhichofthefollowingtypesforeignnationalsof
nonIndianorigin:
aCitizensofAustralia&Canada
bCitizensofNepal&Bhutan
cCitizensofNepalandBangladesh
dCitizensofBhutanandPakistan
eNoneoftheabove
57Aregisteredfirmhascertainadvantagesoverthenonregisteredfirms.Whereisapartnership
firmregistered:
a:Registraroffirms
b:Registrarofcompanies
c:Registrarofdeeds
d:Subregistrarestates

eaord
58Abankershouldnotpaythechequesdrawnbyacustomerwhohasbeensentencedandsent
tojailfor:
a:Rape
b:Criminalliability
c:Moralground
d:Insolvency
eaandb
59Youareapproachedbyapersonforopeninganaccountinthenameofanexecutorofawill.
Yourequirewhichofthefollowingdocuments:
a:Registrationcertificate
b:Memorandumofassociationandarticlesofassociation,
c:Probate
d:letterofadministration
eNoneoftheabove.
60Whatisaprobate:
a:Awillcertifiedbyacourtforsettlementofpropertyofthedeceased.
b:Itiswillofthedeceased
c:Thelastwillofapersoncertifiedbythelegalheirs
d:aregisteredwillofthedeceased
eNoneoftheabove.
61U/s26ofNegotiableInstrumentsAct:
a:Aminorcannotdrawpromissorynoteoracheque.
b:Aminorwhohasbeenadmittedtoapartnershipfirmcandrawacheque.
c:Aminorcandraw,accept,endorseandnegotiatebillsofexchange,promissorynoteorcheque
bindingallpartiesexcepthimself.
d:aminorcanbeheldliableforthebillofexchangehehasaccepted
eNoneoftheabove.
62AforeignnationalvisitingIndiawantstoopenanNROaccountduringhisvisit:
aaccountcanbeopened
baccountcannotbeopened
caccountcanbeopenedwithRBIpermissiononly
daccountcanbeopenedforforeigncurrencytransactions
enoneoftheabove
63Holderindue courseisdefinedu/s....ofNIAct
a:10b:9
c:18d:8
e13
64Mr.XandYarehavingajointaccountinwhichtheyhavenominatedMr.A.OndeathofMr.
X,MrAapproachesthebankforpayment?
abeingnominee,paymentwouldbemadetoA
bYbeingalive,paymentwouldbemadetoYassurvivor

cYbeingaliveandpaymentwouldbemadetonomineeandYjointly
dpaymentwouldbemadetoYandlegalheirsofX
epaymentwouldbemadeaspersuccessioncertificatewhichhastobesubmitted
65Inwhichofthefollowingcurrencies,anFCNRBcannotbeallowedtobeopened:
aUS$andEuro
bEuro&AustralianDollar
cCanadianDollar&Pound
dJapaneseYenandEuro
eSingaporeDollarandDinar
66WhichofthefollowingcategoriesofpersonscanopenanFCNRBaccount:
aOverseasCompany
bOverseasfirm
cOverseascorporatebody
dNRIofIndiannationalityororigin
ecandd
67Asoftwarethatrestrictstheaccesstoandfromanetworkandisdesignedtoprotectfrom
outsideintrusioniscalled:
afirewalltechnology
bnetworkprotectiontechnique
cvirusprotectiontechnology
dtotalprotectiontechnique
emorphing
68Thebreakevenpointintermsofcapacityutilizationofaprojectinits2ndand3yearwould
be55%and50%respectivelywhiletheactuallevelofoperationis52%and54%respectively:
atherewillbesubstantialprofit
bitwillincurloss
ctherewillbelossinthe2ndyearandprofitinthe3rdyear
dtherewillbeprofitinthe2ndyearandlossinthe3rdyear
etherewillbeneitherprofitnorloss
69Incomputersoftware,thetermMorphingreferstowhichofthefollowing:
aanimationtechniqueinwhichoneimageisgraduallyturnedintoanother
bdataconversiontechniquebywayofuseofcodes
cconversionofdigitalpicturetoanalogimages
dasoftwarethatsavesanetworkfromintrusion
esoftwarethatlinksoneservertoanother
70Whatistheamountofloanwhichcanbeextendedagainstthesecurityofacertificateof
deposit:
a25% b50%
c75%
dNoloancanbeallowed
enoneoftheabove
71WhichamongthefollowingisnotaconditionforacasetobereferredtoCorporateDebt
Restructureforum:

atheaggregateexposureshouldnotbemorethanRs.10cr
bthereshouldbeatleasttwocreditors
cthereferencecanbemadebyanycreditorhaving20%ormoreshareintheexposure
dthereferencecanbeforstandardandsubstandardaccounts
enoneoftheabove
72Thereceivablesofvariousloansandobligationsareputtogetheranddistributedamongst
investors,inwhichofthefollowing:
aleasing
bfactoring
csecuritisation
dventurecapital
eforfaiting
73PopularBankhasissuedatermdepositreceiptinthenameofMr.AandBtobeoperatedas
`formerorsurvivor.AapproachesthebankforadditionofnameofMr.X,hissonandalso
nominateMr.Zhisbrotherinlaw.Heclaimsthatthemoneybelongstohim?
aadditionofnamewouldbeallowedbutnotnomination
bnominationwouldbepermittedbutnotadditionofname
cadditionofnameandnominationwouldbepermittedasrequestisfromformer
dwithoutconsentofBadditionornominationcannotbeaccepted
enoneoftheabove
74Whichofthefollowingcategoriesofborrowersarenoteligibleforassistance underKVICs
marginmoneyscheme?
aPartnershipfirm
bindividuals
ccooperativesocieties
dtrustregisteredwithKVIC
enoneoftheabove
75WhichofthefollowingisnotcorrectwithregardtopreventionofMoneyLaundering
provisions:
aitisacquiring,owning,possessingortransferringanyproceedsofmoneyofcrime
bitisaprocessofconvertingmoneyobtainedillegallytoappeartohaveoriginatedlegitimate
sources
cIndiahaspassedthePreventionofMoneyLaunderingActtoidentifyandcontrolthe
transactionsofmoneylaundering
dRecordsrelatingtomoneylaunderingtransactionsaretobepreservedbybanksfor20years
eOffencesundermoneylaunderingarecognizableandnonbailable.
76Theminimumamountofacertificateofdepositcanbe:
aRs.1lacbRs.3lac
cRs.5lacdRs.10lac
enominimumisprescribed
77Theholderofanegotiableinstrumentisholderinduecourseif:
a:Hereceivestheinstrumentingoodfaithandwithoutnegligence
b:Hereceivestheinstrumentforlawfulconsideration

c:Hereceivestheinstrumentbeforeitsmaturity
d:Alltheabove
enoneoftheabove
78Ifapromissorynoteispayableininstalments,theperiodofgraceforpaymentwillbe
available:
a:Onlyonce
b:Oneachinstalment
c:Onlyonlastinstalment
d:nograceperiodavailableforpromissorynote
eNoneoftheabove
79UnderGoldCardschemeforexporters,basedoncreditworthinessofthecardholder,which
ofthefollowingisnotcorrect:
abankscouldconsiderwaiverofcollateralsecurity
bbankscouldconsiderexemptionfromECGCguaranteecover
crequestsforcreditwouldbeconsideredquicklymaximumwithin7days
dinprincipallimitswouldbesetupfor3years
eprovisionforstandbylimitof20%tomeeturgentcreditneedswouldbemade.
80RepaymentofloansunderSwarnjayatiShahriRozgarYojnashouldbemadein:
a23yearsb35years
c37yearsd57years
emorethan6years
81RepaymentundertheSchemeforLiberationandRehabilitation ofScavengers(SLRS)hastobe
inaperiodof:
a25yearsb35years
c37yearsd57years
emorethan7years
82Forwhichamongthefollowingthebankprovidesreliefininterestratetotheborrowerin
educationloan?
awhenheisfromavery poorfamily
bwhenloanissanctionedforahighlyprospectiveeducationfromjobaspects
cwhenloanisrepaidduringthemoratoriumperiod
dwheninterestportionoftheloanisrepaidduringthemoratoriumperiod
ewheninterestaswellasprincipaloftheloanispaidbeforemoratorium
83Underwhichkindoffollowingmechanisms,theDSBreturnsbeingsubmittedbybankstoRBI,
fall:
aearlyalertsystem
bonsitesurveillance
coffsitesupervision
driskbasedsupervisionsystem
epreventionofmoneylaundering
84Whichofthefollowingcannotenterintoavalidcontract?
aapersontemporarilyofunsoundmindandpresentlyofsoundmine

bapardanashinlady
canilliterateperson
dablindperson
eapersonofageof17plusyears
85Dearnessallowanceincreaseforbankemployeesislinkedtowhichofthefollowing:
aGeneralincreaseintheinflation
bwholesalepriceindex
cconsumerpriceindex
dconsumerpriceindexforindustrialworkers
ewholesalepriceindexforindustrialworkers
86PreservationofbankrecordsismandatoryunderwhichofthefollowingActs?
aRBIAct1934
bPreservationofBooksAct1902
cIndianEvidenceAct
dBankingRegulationAct1949
eCompaniesAct1956
87WhichofthefollowingaccountsarereportedunderCVCdirections:
awillfuldefaultersofRs.10lacandabove
bwillfuldefaultersofRs.25lacandabove
cloanfraudsofRs.10lacandabove
dloanwriteoffofRs.10lacandabove
ealltheabove
88UndertheratingsystemcalledCAMELS,theterm`Mstandsforwhichofthefollowing:
amanagementofassetsandliabilities
bmanagementofnonperformingassets
cmanagementofhumanresources
dmanagementquality
emanagementpolicies
89Whichofthefollowingdocumentsrelatingtoaloantransaction,canbekeptblankbyabank:
a:hypothecationagreement
b:Memorandumofmortgage
c:Sharetransferdeeds
danyoftheabove
enoneoftheabove
90Aloanagreementisexecutedbutitisnotstampedproperly:
a:Itcan bestampedlateronafterpaymentofpenaltyasperprovisionofStateStampActsand
canbetreatedasavaliddocuments,afterobtainingpermissionofthecollectorofstampduty.
b:Thecourtcanallowthebanktopaythedutywithfineandvalidatethedocument
c:Sinceatthetimeofexecution,thestampdutyhasnotbeenpaid,thiscannotbetreatedan
agreement
d:aandb
e:atocany.

91Whenthereisanagreementinwritingforcreationofanequitablemortgagebetweenthe
partiesandthisformsapartofanequitablemortgage,theagreementinitselfisanoperative
instrument.Thisisnotsimplyanevidence:
a:Forsuchadocumenttheregistrationisnecessary
b:Forsuchadocumentregistrationisnotnecessary
c:Thisdependsuponthewillofthebank
d:aandb
eNoneoftheabove
92Abankingcompanycanacquiresharesinacompanysubjecttowhichofthefollowingceiling:
anotexceeding30%ofthecapitalofthebankor30%ofthecapitalofthecompany,whichever
higher
bnotexceeding30%ofthereservesofthebankor30%ofthecapitalofthecompanywhicheveris
lower
cnotexceeding30%ofthepaidupcapitalandreservesofthebankor30%ofthecapitalofthe
companywhicheverislower
d30%ofthecapitalofthecompany
e30%oftheauthorisedcapitalofthebankor30%ofthecapitalofthecompany
Problem.Followingarethefinancialfiguresofaconcernason31.03.2003
Particulars.Rs.
Capital8,000
SundryDebtors10,000
CashinHand3,000
Machinery17,000
Prepaidexpenses1,000
Fixeddepositwithbank5,000
Billspayable2,000
Debentures22,000
Expensesoutstanding4,000
Stock4,000
Sundrycreditors4,000
Basedonthisinformation,pleaseworkoutthefollowing:
93Networkingcapitalinthiscasewillbe:
aRs.5,000bRs.2,000
cRs.13,000dRs.22,000
94Fromthefinancialfiguresgivenintheabovequestiontotalworkingcapitalworksoutto:
aRs.23,000bRs.36,000
cRs.22,000dRs.14,000
eRs.12000
95Ifintheaboveproblem,thesalesareRs.115000,theworkingcapitalturnoverratiowouldbe:
a3b5
c7d8
e9

96TheliquidityaggregateL1,asperrecommendationsofYBReddyCommitteerepresentswhich
ofthefollowing:
aM1+depositsoffinancialinstitutions
bM1+depositsofpostoffice
cM2+depositsoffinancialinstitutionsandpostoffice
dM3+depositsofpostofficesexcludingNSCs
eM3+depositsoffinancialinstitutionsandpostoffice
97Inarealtimegrosssettlementsystem,whichistruewithregardtothetransmission,
processingandsettlementofinstruction:
aitiscarriedthroughanetworkprovidedbySWIFT
bitiscarriedonabatchsystembasis
citiscarriedonaplatformprovidedbyleadingpublicsectorbanks
ditiscarriedonacontinuousbasisasandwhentheinstructionsarereceivedandacceptedby
thesystem
eitiscarriedwhenauthorisedbyRBI
98ProceedsofgoodsandservicesexportedbyanexporterarerequiredtobebroughttoIndia
within180daysnormally.Butastatusholdercanavailthenormalrepatriationperiodforexport
proceedsupto___,insteadofnormal180days:
a360daysb300days
c270daysd225days
e200days
99Inacomputersystem,thesecurityisimportantforwhichofthefollowingreasons:
atosecurethedata
btoimprovethereliabilityofthedata
ctoimprovethequalityofdata
dtoanalysethedata
ealltheabove
100CorporateBankdecidestoallowacashcreditlimitofRs.25lactoatradingfirminoneofits
branchesinJaipur.Theproposestosecuretheloanbymortgageofacommercialproperty
(locatedinKolkata)oftheequalvalue,inthenameofonethepartnersinthefirm,whoissick
andisadmittedinhospital.Thefirmwantstheequitablemortgagetobecreatedinthehospital
itself:
acanbeaccepted,ifthedoctorcertifiestheillnessanditoneofthewitness.
bcannotbecreatedbecausethehospitalisnotpartofthebankbranch
ccanbecreatedifthehospitalislocatedatanotifiedcentre
dcanbecreatedifthetitledeedofthepropertyishandedovertothebankofficials
ecanbecreatedifthehospitalwouldhavebeeninKolkatainsteadofJaipuraspropertyis
locatedinKolkata

Answers:TestNo.02
01d02c03d04b05b06a07e08b09c10d11e12c13a14c15b16b17
b18d19e20a21a22d23c24d25e26c27b28a29c30a31b32b33d
34d35d36e37b38c39b40d41b42c43b44e45b46b47b48e49e
50a51c52c53b54a55c56b57a58d59c60a61c62a63b64d65e66
d67a68c69a70d71a72c73d74a75d76a77d78b79c80c81c82d
83c84e85d86d87b88d89c90a91a92c93c94a95b96d97d98a99
a100c

MOCKPRACTICETEST:3
1:Ifaminoradmittedtoapartnershipfirmforbenefitsbecomesmajoranddoesnotofferany
declarationabouteitherbecomingthepartnerofthefirmoraboutintentiontoleavethefirmasa
partnerwithin6monthsofthedateonwhichhebecamemajororwithin6monthsofthedate
whenhefirstgotinformationabouthisstatusasbeneficiaryofthefirm:
a:Itwillbepresumedthatheisapartner
b:Itwillbepresumedthatheisnotapartner
c:Itwillbepresumedthathisintentionisnottobecomeapartner
d:bandc
eNoneoftheabove
2:AnattachmentorderofRs.80000onapartnershipfirmisreceived,whosecurrenta/cshowsa
balanceofRs.8000.TheindividualaccountsofthepartnersA,BandCareshowingcreditbalance
ofRs.40000,Rs.34000andRs.2500respectively.Tomeetthepaymentstatedintheorder,how
muchamountwillbepayablefromAsaccount?
aRs.32500bRs.35500
cRs.37500dRs.40000
eRs.39500
3M/sRahimKhanandCompanyimportcertaingoodsandafter paymentofthedocumentsto
thebank,sendtheshippingdocumentstotheirclearingagentsM/sShoabClearingAgentswith
theinstructionthattheymaydisposeofthegoodsandalsostipulatetheminimumrateforwhich
thesegoodscanbesold.Theclearingagentssellthegoodsforapricelittlelessthanthe
stipulatedprice.M/sRahimKhanandCompanyclaimthereturnofthegoodsfromthebuyer:
asincetheclearingagentshavesoldthegoodsforapricelowerthanthestipulatedone,the
buyerwillhavetoreturnthegoods.
bsincetheclearingagentshavesoldthegoodsatalowerpricewithoutseekingconfirmation
fromtheprincipals,thegoodswillhavetobereturned
cthebuyercannotbeforcedtoreturnthegoods,sincetheydonothaveanynoticeofthe
conditionstipulatedbytheprincipals
dthebuyercannotbeforcedtoreturnevenifhehadtheinformationaboutthecondition
enoneoftheabove
4AbillofexchangeisdrawnbyM/sKasturiLalandSonsonM/sShivaTradersinconsideration
ofpurchaseofgoods,Mr.ShayamKumarbeingitspayee.ShayamKumarendorsedthebillin
favourofMr.ShantiPrakashwhohadendorseditinblank.ItisstolenbyMr.SudhirPhatke,an
employeeofShantiPrakashanddeliveredtoM/sDyalTradersfor value,butitisdishonouredon
presentationforpayment.FromwhomcanM/sDyalTradersrecovertheamountonthebill?
aFromMr.ShantiPrakash
bFromM/sShivaTraders
cFromM/sKasturiLal&Sons
dFromShyamKumar
eFromalltheabove
5Non performingadvanceisanadvance(exceptCashCredit)whichremainspastduefora
periodofmorethan
a:360daysb:180days

c:90daysd30days
e:noneoftheabove
6CreditBankmaintainsacurrentaccountofM/sChitamEnterprisesinwhichthefirmdepositsa
chequeofRs.52000.Oncarefulexamination,thebankfindsthatthewords`nonnegotiableare
writtenonlowerpartofthechequewithouttheparalleltransverselines.Theconcernedofficerof
thebankisnotsureaboutwhethertoacceptitforcollectionornot:
aitisuncrossedinstrumentandtwoparalleltransverselinesshouldbedrawn
bitisnotacleardirectionfromthedrawerduetowhichthechequeshouldnotbeacceptedfor
collection
cthewords`notnegotiablecanbewrittenwithoutparallellines.Butthiswillnotbeconsidered
ascrossing.Itcanbeacceptedforcollection.
dthetransferabilityoftheinstrumenthasbeenaffectedduetothesewords,duetowhichthe
instrumentshouldnotbeaccepted.
enoneoftheabove
7YourbranchreceivesadividendwarrantofRs.560infavourofoneMrs.RamaDevipresented
byStateBankinclearing.Onthebacksideofthedividendwarrant,itisstatedthatpayees
dischargeisneededbutthepayeehasnotsignedthesameingivingdischarge.
athedividendwarrantwillbereturnedunpaidastherequirementofdischargehasnotbeenmet,
whichthedrawerhadimposed.Paymentifmade,willnotbeapaymentinduecourse.
bthedividendwarrantwillbereturnedasithasbeenpresentedbyanotherbankwhichhasnot
givenitsconfirmation
cthedividendwarrantwillbepaidwithoutdischargefromthepayee,assuchdischargeisnota
legalrequirement
dthedividendwarrantwillbepaidafterconfirmationfromthecollectingbank
enoneoftheabove
8NewDelhibranchofModernBankissuedafixeddepositofRs.3lacfor5yearsinthenameof
Mr.SSubramaniamwhoraisesaloanofRs.50000againsttheFDRwithaviewtomeetexigencies
atalaterstage.Hecomesforaddition ofthenameofhisson,asheisnotkeepinggoodhealthfor
fewmonths.
atherequestofthedepositorwillbeacceptedbeingagenuinereason
btherequestwillbeacceptedsincetheadditionisforthehissonsname
ctherequestwillbeacceptedsincetheFDRistomatureafterlongtime
dtherequestcannotbeacceptedtilltheloanisoutstanding
eanyoftheabove
9UniversalBankisapproachedbySameer,a17oldboywithhisPANcardandothernecessary
informationforopeningacurrentaccount.Heishavingsubstantialinvestmentsinsharesand
receivesregulardividend.Hisfatherhasrecentlyexpiredandhisfathersinvestmentwillalsobe
transferredinhisnameinfuture:
atheaccountcannotbeopenedasitexposesthebanktoundue risk
btheaccountcannotbeopenedasitisforsharetransactions
cthecurrentaccountcanbeopenedbytheminorashecandraw,negotiateandgivevalid
discharge
dthecurrentaccountcanbeopenedbySameeralongwithhismother,ifsheiswillingtodothe
same
enoneoftheabove

10Whatistheno.ofminimumandmaximumshareholdersinapubliclimitedjointstock
company:
aminimum2maximum7
bminimum3maximum50
cminimum4maximum50
dminimum7maximum50
eminimum7maximumnoceiling
11Aloanissubstandardassetforaperiodofmorethanoneyear.Theprovisionistobemadeat
therateof....oftheoutstandingamount:
a:10%b:20%
c:30%
d:100%fortheunsecuredportion
eaanddabove
12Whichofthefollowingisasituationthatcanbetermedasnegativeworkingcapital?
awhencurrentassetsareequaltocurrentliabilities
bwhencurrentassetsarelessthancurrentliabilities
cwhencurrentassetsaremorethancurrentliabilities
dwhentherearelossesandcurrentratiois1:1
ewhenthecurrentratioisbelowtheidealratioof1.33:1
13WhatisthemaximumamountforwhichtheCGFTSIguaranteecoverisavailable:
a:Rs.18.75lac
b:Rs.25lac
c:75%oftheamountondateofNPA
d:Rs.10lac
eaandb
14AloanofRs.4laceachisallowedbybankZtoadoctorhavinghisownclinicandalawyer
havinghisownpractice.Theseloansshallbeclassifiedas:
a:loantodoctorasprioritysectorandtolawyerasnonprioritysector
b:loantolawyer asprioritysectorandtodoctorasnonprioritysector
c:loantodoctorandtolawyerasnonprioritysector
dloantodoctorandtolawyerasprioritysector
15PremiumistobepaidbythebanktoDICGCforthehalfyearendedSept2005.Asonwhich
datetheamountofdepositsistobetakenintoaccount:
alastFridayofMar2005
bLastdayofSep2004
clastworkingdayofMar2005
dlastFridayofSep2004
enoneoftheabove
16Thetermfirewalltechnologyrefersto:
acomputersoftwarethatprotectsacomputersystemfromvirus.
bcomputersoftwarethatremovesthecomputervirus.
ccomputeroperatingsoftware.

dcomputerhardwaretoprotectacomputerfromincidentoffire
ecomputersoftwarethatprotectsacomputersystemfrom outwardintrusion.
17Whatisthemaximumno.ofpartnersinanonbankingfirm.
a20
b20excludingtheminorpartner
c10
d10includingtheminorpartner
e20includingtheminorpartner
18Riskarisingfromfailureofcomputersystemandlossofdatais:
a:creditrisk
b:systemrisk
c:liquidityrisk
d:operationalrisk
ecomputerrisk
19Onwhichamongthefollowing,agarnisheeorderisnotapplicable?.
afundsintheaccountatthetimeofreceiptofgarnisheeorder
btermdeposit receiptwhichisyettomature
crecurringdepositthematurityofwhichwillbe3monthsafter
dachequerealizationadvicethathasnotbeencreditedtotheaccount
eamountdepositedbythecustomerafterreceiptofthegarnisheeorder
20Amortgagorsellsthepropertytothemortgageeundertheconditionthatthesalewould
becomeabsoluteonfulfillmentofspecificconditions:
a:Thismortgagebyconditionalsale
b:ThisisEnglishmortgage
c:Thisisasalecummortgagetransaction
d:Thisisasalewithpromisetobuyback
eaandc
21Whocandepositthetitledeedwiththebankforcreatinganequitablemortgage:
a:Owner
b:Hisauthorisedagent
capersondirectedbythecourt
d:aandb
e:atoc
22Whetheratrusteecanappointagent:
a:Asatrustee,hecannot
b:Asindividualperson,hecan
c:Underallcircumstances,hecannot
d:a&bbotheatoc
23Astategovt.guaranteedadvanceswouldbetreatedNPAifoverdueformorethan90days
wef:
a:31.03.2005
b:31.03.2006

c:31.03.2007
dTobetreatedNPAforincomerecognitionpurposeonly
e:SuchaccountsarenottobetreatedasNPA.
24Advancesagainsttheirownsharesarenotallowedbybanksbecausetheseareprohibited
under:
aRBIAct1934
bNegotiableInstrumentAct
cBankingRegulationAct1949
dSEBIAct
ecandd
25AreturningnonresidentIndianwantstoopenanaccountwithyoubutwantstobesure
aboutwhatcanberepatriatedbyhimincaseofneed.
anorepatriationallowed
bonlyinterestcanberepatriated
conlyprincipalcanberepatriated
dprincipalandinterestbothcanberepatriated
enoneoftheabove
26Whichofthefollowingdefinesaforeignexchangeforwardcontractbetter?
aexchangeratethatisdeterminedinfuture
bexchangeratethatisdeterminedinfuturebutdeliveryismadenow
cexchangeratethatisdeterminednowbutdeliveryofcurrencyismadeinfutureonadayfixed
atthetimeofmakingthecontract
dexchangerateanddelivery,botharedeterminedin future
enoneoftheabove
27ModernBankhadgrantedatermloanforpurchaseofacartoMr.RameshChanderwhichhas
becometimebarreddebtlastmonth.Aletterwritten8monthsback,byMr.RameshChanderto
hisfriendMr.SatishKumarfallsinthehandsofthebankinwhichhehadrequestedMr.Satish
Kumartogivehimcertainfundsashehastorepaytheabovestatedloanofthebank.
athelettercanbetreatedasacknowledgementofdebtifparticularsoftheloanmatchwiththose
giveninthe letterwhichwouldextendthelimitationperiod
bthelettercannotbeusedforthepurposeofthelimitationperiodasitisnotstamped
cthelettercannotbeusedforlimitationpurposeasitisnotaddressedtothebank
dthelettercanbeusedforlimitationperiodbutitisnotstampedadequately
ealltheabove
28Officiallanguagepolicycameintoforcewitheffectfromwhichofthefollowingdates:
aAug16,1947
bSept14,1947
cJan26,1947
dJan26,1950
eAug16,1950
29WhatisthemaximumamountforthepurposeofarbitrationunderBankingOmbudsman
scheme2002.
aRs.2lacbRs.3lac

cRs.5lacdRs.10lac
eNoneoftheabove
30Incaseofoverdraftfacility,wheretheaccountisshowingcreditbalancetemporarily,whatis
therelationshipofthebankandcustomer.
acreditoranddebtor
bdebtorandcreditor
cprincipleandagent
dtrusteeandbeneficiary
enoneoftheabove
31WhichsectionoftherespectiveActcoverstheSLR:
aSection24(2A)ofBRAct1949
bSection23ofBRAct1949
cSection27ofRBIAct
dSection24(2)ofRBIAct
eSection14ofBRAct
32Theloansystemofcreditdeliveryismandatorilyapplicableforloanaccountshaving:
atermloanofRs.10croreandabove
bfundbasedworkingcapitallimits(MPBF)ofRs.10crandabove
cnonfundbasedlimitsofRs.10crandabove
dcombinedlimitsofRs.10crandabove
ea,bandd
33Whenpaymentofatermdepositreceiptismade,whatistheamountofinterestperfinancial
year,for deductionoftaxatsource.
aRs.5000orabovefromabank
bAboveRs.5000fromabankbranch
cAboveRs.5000fromallbranchesofthebanktakentogether
dRs.5000andaboveincludinginterestonsavingbankdeposits
enoneoftheabove
34YourbranchhassanctionedcashcreditlimitofRs.12lactoM/sUnitedPharmacy.Asatthe
closeofJuly31,ithasbeencarryingstocksworthRs.9lac,sundrycreditorsofRs.3lacandbook
debtsofRs.6lac.Bankhasprescribedamarginof25%onstocksand30% onbookdebts.Whatis
themaximumamountthatcanbewithdrawninthecashcreditlimit?
aRs.8.70lacbRs.8.30lac
cRs.12lacdRs.6.75lac
eRs.7.25lac
35Atthetimeofrenewalofworkingcapitallimitsbyyourbranch,theloanofficerobservedthat
M/sBabraEnterprisessutilisationoffundsonalongtermbasisis80%ofthelongtermsources
duringtheyear.Whichamongthefollowingwouldbetheresultofthiskindoffinancial
management:
athecurrentliabilitieswouldincrease
bthe currentassetswoulddecline
cthecurrentratiowoulddecline
dthecurrentratiowouldimprove

enoneoftheabove
36Whichamongthefollowing,istheAuthoritythatfixestherateofinterestonsavingbank
depositsinbanks?
aReserveBankofIndia
bMinistryofFinance
cIndianBanksAssociation
dBoardofDirectorsofaBank
eNoneoftheabove
37StockauditiscompulsoryincaseofNPAaccount,iftheamountoutstandingisRs.____or
more
a:5cr
b:4cr
c:3cr
d:2cr
e1cr
38PopularBankdecidestoprovidefinancetoGhaiFilmsLtdforproductionofafilm.The
workingcapitalassessmentwouldbedonebythebankonthebasisof:
a:cashbudgetsystem
b:turnovermethodofNayakCommittee
c:TraditionalmethodofTandonCommittee
d:anyoftheaboveatbanksdiscretion
enoneoftheabove
39Whatistheperiodoflimitationfortherecoveryofaloangivenonthebasisofademand
promissorynote:
a:Threeyears
b:Threeyearsfromdateofnote
c:Threeyearsfrom filingofsuit
d:Threeyearsfromdateofdefault
ebandd
40CorporateBankfilessuitforrecoveryofitsloanagainsttheguarantoronlyandnotthe
borrower.Guarantorpleadsinthecourtthatbeforefilingsuitagainsthim,moneyshouldbe
recoveredfromtheborrower.Insuchcircumstances,thebankcanseekrecourseinthecourt
against:
a:alltheliablepartiestogetheronly
b:anyoneofthematatime
c:allseparately
d:atitsdiscretionitcanproceedagainstanyone.
eatthediscretionofthecourt
41Apubliclimitedcompanyopensacollectionaccountforitspublicissue.Thebankwantsto
withdrawthefundsforuseforthepurposeforwhichtheissuewasfloated.Onwhatcondition,
thiscanbedone.
a:IfCo.producescertificateofcommencementofbusiness
b:IfCosubmitscopyofcertificateofincorporation

c:Ifprospectusisissued
d:Whenco.requeststhebank
eaandc
42Whatistheminimumamountoutstandingincaseofwillfuldefault,thattheinformationwill
berequiredtobesenttoCIBIL:
a:Rs.2.5lac
b:Rs.10lac
c:Rs.25lac
d:Rs.100lac
enoneoftheabove
43Inthosecasewheretheprocessofdissolutionofafirmhasstarted,whatarethesituations
wherethepartnersstillhaverightstobindtheotherpartners:
a:Towindupthebusinessoffirm
b:Tocompleteallthosetransactionswhichcouldnotbecompletedtilldateofdissolution
c:tillalltheliabilitiesofthefirmaredischarged
daandb
e:atoc
44InaPMRYgrouploan,the interestratewouldbedecidedonthebasisof:
a:totalamountoftheprojectcost
b:totalamountoftheloan
c:totalamountofloanandsubsidy
d:percapitaloanamount
epercapitalprojectcost
45YourbranchreceivesachequeofRs.17500intheaccountofasavingbankcustomer.The
balanceintheaccountisRs.16700.AnoutstationchequeofRs.23000hasbeensentforcollection,
theproceedsofwhichhavenotbeenreceivedasyet.Whilereturningthecheque,whichamong
thefollowingreasonswillbegiven:
ainsufficientfunds
bexceedsarrangements,pleasepresentagain
ceffectsnotcleared,pleasepresentagain
ddrawersinstructionsawaited
erefertodrawer
46InanHUF,thereisonemalemajormemberhavingtwominorsons.Afterhisdeathwhowill
functiononbehalfoftheKartaofHUF:
a:Eldestson
b:Youngestson
c:Naturalguardianoftheeldestson
dguardianoftheeldestappointedbycourtifthereisnonaturalguardian
e:candd
47AHindusoldiergivesanoralwillwhileheisfightingonIndoPakborder.Suchwillsare
called:
aoralwill
binvalidwill

cprivilegedwill
dunprivilegedwill
eaandc
48Acharitabletrustisregisteredwith:
a:RegistrarofTrusts
b:RegisterofSocieties
c:Registrar ofCompanies
d:CommissionerofCharity
eaorb
49Investmentfluctuationreservewouldbeclassifiedbyabankforthepurposeofcapital
adequacyratiounder:
a:tierIcapitalfund
b:paidupcapital
c:tierIIcapitalfund
d:tierIIIcapitalfund
eatthediscretionofthebank
50WhocanactasnaturalguardianinrespectofaHinduMinor:
afatheralone
bmotheralongwithfather
cfatherandafterhisdeathmother
dgrandfather
ebandc
51Inwhichofthefollowing,atermdepositreceiptcanbeclassified?
anotnegotiablebuttransferable
btransferableactionableclaim
cnottransferableactionableclaim
dademandliability
enoneoftheabove
52WhatkindofanassetisgoodwillaspertheIndianAccountingStandards?
aintangibleasset
bfictitiousasset
ccurrentassets
dfixedasset
enotanasset
53RajanraisedaloanandHarishwashisguarantorandloanhasbecomedue,forpayment
whichRajanfailstopay.Bankhadtorecalltheloanduetothis.HarishmaintainsaSFaccount.
TheBank:
a:CannotexerciserightofsetoffagainstHarishsaccount.
b:IncaseloanisrecalledfromHarish,therightofsetoffcanbeexercised
c:Interventionofthecourtrequired
d:loanrecallisnotanecessarycondition
eNoneoftheabove.

54Yourbranchishavingapartnershipcurrentaccountandagarnisheeorderinthenameofa
partnerinthefirm,isreceived.Itwill:
aapplytoallpartners
bapplytofirmsaccount
cnotapplytofirmsaccount
dnot applytoanyone.
eaandc
55Agarnisheeorderisapplicableto
a:Demanddeposits
b:Timedepositssubjecttomaturity
cRecurringDeposit
d:atoc
e:bandc
56Foraloantoberaisedincaseofneed,apersonsassignshisinsurancepolicy infavourofthe
bank.Suchrelationshipofthecustomerwiththebank,willbeofa/an:
apledgerandpledgee
bbeneficiaryandtrustee
clenderandborrower
dassignorandassignee
eassigneeandassignor
57Whichofthefollowingisacurrentliabilityforthepurposeofclassificationtoanalysea
balancesheet
adebenturesduesafter2years
btermloanwithamoratoriumof3years
cgeneralreservecreatedonly3monthsearlier
dprovisionfordisputedincometaxliability
enoneoftheabove
58Onerupeenotebearsthesignaturesof:
a:GovernorRBI.
b:Secy.MinistryofFinance
c:PrimeMinisterofIndia
d:FinanceMinister.
ePresidentofIndia
59Aspersection45(ZA)ofBankingRegulationAct1949:
a:Nominationfacilityhasbeengrantedforbankdeposits.
b:GuidelineshavebeenlaiddownforelectionofChairmenandManagingDirectorsofthe
banks.
c:Guidelineshavebeengivenforprovidingworkingcapitaltobigunits.
d:nominationfacilityisavailableforlockeraccounts
enominationfacilityforsafedepositvault
60ThereportonHarmonisationofroleofFIsandbanksrelatingtouniversalbanking,wasgiven
by:
aMSVerma

bRHKhan
cBDShah
dKSShere
eNarasimhamCommittee
61SaleofanSSIfirmisRs.240lac.Itsrequirementforworkingcapitalisequalto5monthssales.
Whatwillbetheamountofworkingcapital.
aRs.60lac
bRs.75lac
cRs.90lac
dRs.100lac
enoneoftheabove
62SaleofanSSIfirmisRs.240lac.Itsrequirementforworkingcapitalisequalto5monthssales.
Whatwillbetheamountofmargin&banklimit.
aRs.48lac,12lac
bRs.60lac,15lac
cRs.72lac,18lac
dRs.80lac,20lac
enoneoftheabove
63Repaymentcapacityincaseoftermloanproposalsisjudgedbythebankswithwhichofthe
followingratios:
adebtequityratio
binternalrateofreturn
cnetpresentvalue
dbreakevenanalysis
edebtservicecoverageratio
64Acollectingbankgetsstatutoryprotectionunder:
a:RBIAct
b:BankingRegulationAct
c:NegotiableInstrumentsAct
d:IndianContractAct
eNoneoftheabove
65WhatisthetimeperiodunderSARFAESIAct,forreplyingtheborrower,incaseheraisesan
objectionforpossessionoftheasset:
a:60days
b:30days
c:7days
d:3days
enoneoftheabove
66Bispayeeofacheque,whoendorsesittoC.ClostthechequewhichisfoundbyD,who
endorsesitinfavourofAforvaluableconsiderationbywayofforgingCsignatures.Thecheque
isdishonoured.Acanrecoverfrom:
a:Bb:C
c:D
d:anyofthepreviousparties

eNoneofthepreviousparties
67A,acustomerhasasavingbankaccountandherhusbandhadwithdrawnthemoneyfromthe
bankonthebasisofforgedchequesatvariousoccasionsbutthecustomerdidnotobjecttoit.
Afterhisdeath,shecomestobankanddemandsthemoney:
a:Bankwouldreferthemattertothecourt
b:Bankisliableonforgedcheques
c:Thebankisnegligentbutnotliable,asthecustomerispartytotheforgeryanddidnotinform
thebankintime
d:lossshallbeborneintheratioof50:50bythebankandthecustomer
eNoneoftheabove
68Afirmdiscountsitsexportreceivablesofupto5yearswithoutrecoursetotheexporterunder
whichofthefollowingarrangement:
aforfaiting
bfactoring
csecuritisation
dbillsdiscounting
eforeignbillsdiscounting
69Whoamongthefollowingwillsigntheaccountopeningformforopeningacurrentaccountin
caseofapartnershipfirmwherethefirmhasthreepartnersandaminor,aged17,hasbeen
admittedtothefirmforbenefits?
aallthethreeandthefatheroftheminor
ballthethreeandnaturalguardianoftheminor
callthethreeandtheminorhimself
dallthethreepartnersonly
eanyoftheabove
70Youreceiveagarnisheeorderforacurrentaccountmaintainedinyourbranch.Achequeis
receivedforpayment.Whatmemoshouldbeappendedwhilereturningthecheque:
a:Garnisheeorderreceived
b:Refertodrawer.Garnisheeorderreceived
c:insufficiencyoffundsduetogarnisheeorder
daandb
eatoc
71Abillpresentedbyyourbranchisdishonouredandyouwanttogetitsnoting.Theprovision
regardingnotingisdescribedundersection...ofNIAct:
a:100b:99
c:85Ad:131
e87
72IfaborrowerwantstofileanappealwithDRATagainstthedecisionofDRTunderSARFAESI
Act,howmuchamountitwillberequiredtodeposit:
a:75%oftheamount
b:50%oftheamount
c:25%oftheamount
d:10%oftheamount

ethereisnoneed fordepositoftheamount.
73IfaborrowerwantstofileanappealwithDRATagainstthedecisionofDRTunderDRTAct,
howmuchamountitwillberequiredtodeposit:
a:75%oftheamount
b:50%oftheamount
c:25%oftheamount
d:10%oftheamount
ethereisnoneedfordepositoftheamount.
74Aishavingalockerandsendsthekeybypostwithanintentiontosurrenderthelocker:
a:bankwillbedischargedofitsliability,ifkeyisaccompaniedbyaletterstatingthecontentsof
thelockersasNIL
b:Thebankwillnotbedischargedofitsliability
c:Thebankshouldnotaccept
d:bankcanacceptsubjecttoitsrightsunderreserve
eNoneoftheabove
75AandBmaintainanFDaccountwithalockerandwanttomakesinglenominationforboth
theaccounts:
a:Nominationcanbemadeinboththeaccountsseparately
b:Nominationcannotbeallowedinlockersinjointnames
c:Itwilldependonbanksdiscretion
d:nominationcanbeaccepted
eNoneoftheabove
76Ifachequeiscrossedasaccountpayee,thisisdirectionof___,to___:
apayee,payingbank
bpayee,collectingbank
cdrawer,payingbank
ddrawer,collectingbank
edrawer,paying&collectingbank
77IntermsofrecommendationsofTandonCommittee,whichofthefollowingisconsideredas
idealcurrentratiobybanksforsanctionoftermloans:
a1:1b1.17:1
c1.25:1d1.33:1
enoneoftheabove
78ThereisanFDRofAandBbutAdiesbeforeitsmaturity.Balsodiesoneweekafterhisdeath.
FDamountispayableto:
a:LegalheirsofA
b:LegalheirsofB
c:LegalheirsofAandB
d:legalheirsofthepersonwhodiedlater
eNoneoftheabove.
79Analysisofbalancesheetofapartnershipfirmshowsthatitstotalnetworthismorethanthe
totaloutsideliabilities.

aitcanbetermedasadesirablesituation
bitcanbetermedasanexcellentanddesirablesituation
citreflectstheconservatismonthepartofthemanagement
ditreflectsriskappetiteofthemanagement
ealltheabove
80Forthepurposeofcreationofequitablemortgage,whonotifiestheplacesfordepositoftitle
deeds:
aCentralGovt.
bLocalselfGovt.
cPresidentofIndia
dGovernoroftheState
eStateGovt.
81Indepositaccounts,thephotographsareobtained.Why?
a:toavoidfrauds
b:toavoidirregularities
c:todetectirregularitiesinfinancialtransactions
dtocomplywithUNdirectives
e:tocheckbenamiaccounts/transactions
82Whichamongthefollowinghasformulatedthegovt.sponsoredschemecalled`Swaran
JayantiGramSwarozgarYojana?
aAgriculturalDepttofStateGovt.
bMinistryofAgricultureofState
cUnionMinistryofRuralDevelopment
dDistt.RuralDevelopmentAgency
eLeadBankoftheconcernedDistt
83Whatisthe requirementofmarginundertheSchemeforLiberationandRehabilitationof
Scavengers(SLRS):
a20%oftheprojectcostwithmaximumofRs.7500
b15%oftheamountofloanwithamaximumofRs.7500
c15%oftheprojectcostwithmaximumofRs.7500
d10%oftheprojectcostwithmaximumofRs.7500
e15%oftheamountofsubsidymaximumRs.7500
84Inaprivatelimitedcompanytheminimumandmaximumno.ofshareholderscanbe:
a:1and20b:20and100
c:100and1000d:2and50
85Whatisthemeaningofascheduledbank?
a:ThebankfunctioningunderprovisionsofBankingReg.Act1949.
b:Thebankincludedin2ndscheduleofRBIAct1934.
c:ThebankincorporatedunderBankingCompaniesAct1956.
d:Thebankauthorisedtodobankingfunctions.
ebankissuedalicensebyRBImentioningthereinthatitisascheduledbank
86WhofixesthescaleoffinanceforcroploanforagriculturaladvancesinIndia:
aDisttCropCommittee

bDisttTechnicalCommittee
cStateAgri.Deptt
dStateTechnicalCommittee
eaorc
87Section31ofRBIActpermitsonlyRBIandCentralGovt.toissue/draw:
abillspayabletobearerondemand
bpromissorynotespayabletobearerondemand
cchequespayabletobearerondemand
da&babove
eatoc
88WheretheforeignbanksfailtoachievethelendingtargetforSSIunderprioritysector:
atheyhavetodeposittheamountofshortfallwithNABARD
btheyhavetodeposittheamountofshortfallwithKVIC
ctheyhavetodeposittheamountofshortfallwithRBI
dtheyhavetodeposittheamountofshortfallwithSIDBI
eanyoftheabove
89Whatisthesubtargetforadvancestosmallscaleindustriesbythecommercialbanksforunits
havinginvestmentinplantandmachineryaboveRs.25lac?
aMinimum40%ofNetBankCredit
bMaximum40%ofnetbankcredit
c40%oftheSSIadvances
dMinimum40%ofSSIadvances
eMaximum40%ofSSIadvances
90UnderKnowYourCustomerguidelinesofRBI,forwhichperiodtherecordsarerequiredtobe
maintained:
a1yearsb2years
c4yearsd5years
e10years
91AmonthbackthedollarrupeeratewasRs.43.90perdollar.NowitisRs.45.10perdollar.Who
amongthefollowingisthegainer:
awhoexportsbwhoimports
cwhohastomakeoutwardremittance
dwhomovesforavisitabroad
enoneoftheabove
92DollarhasshownincreaseinitsvaluecomparedtoIndianrupee.Whichofthefollowing
wouldbetrue?
aExportsfromIndiawillgoup
bImportsintoIndiawillbecomecostly
cTradewithothernationswillbereduced
dborc
eNoneoftheabove
93InterestandprincipalcanberepatriatedbyanNRI,inthefollowingaccounts?

aFCNRbNRE
cEEFCda&b
ealltheabove
Thefollowingdataistakenfromthebalancesheetofafirm:
CapitalandReserves50
Banktermloan50
Bankcashcredit50
Currentliabilities50
FixedAssets70
Preliminaryexpenses10
Cash/Bankbalance20
Stocks60
Bookdebts30
Prepaidexpenses10
Sales300
Profit10
Onthebasisofaboveinformation:
94Whatisthenetworth:
a50b45
c40d30
e20
95Whatisthecurrentratio:
a1.5:1b1.33:1
c1.20:1d1.10:1
e1.00:1
96Whatistheacidtestratio(quickratio)
a0.25:1b0.50:1
c0.75:1d0.80:1
enoneoftheabove
97Whatisthedebitequityratio?
a3:1b2:1
c2.25:1d1.25:1
e1:1
98Whatisthetotalindebtednessratio:
a6:1b4.25:1
c4.0:1d3.75:1
e3.25:1
99Whatisthestockturnoverratio?
a3timesb4times
c5timesd6times
enoneoftheabove

100Whatisthedebtorsvelocityratio
a2.1months
b1.60months
c1.20months
d1.09months
e1months

Answers:TestNo.03
01a02b03c04e05e06c07a08d09c10e11b12b13b14a15c16e17
a18d19e20a21d22d23b24c25d26c27a28d29d30b31a32b33b
34a35d36a37a38a39b40d41a42c43d44d45a46e47c48d49a50
c51c52b53b54c55d56d57d58b59a60b61d62d63e64c65c66c
67b68a69d70a71b72b73a74a75a76d77e78c79c80e81e82c83
c84d85b86b87d88d89e90d91a92b93d94c95c96b97d98d99c
100c