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Saturday, February 25, 2012


1) If number of partners in a firm is 22 in respect of trading activity the firm is

1) Limited company
2) Large partnership
3) Illegal association
4) None of these

2) Mandate given by the illiterate account holder should be

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

3) A joint account is operated by A and B as both or survivor. A dies and a cheque signed by A and B are
presented for payment. The cheque

1) Can be paid.
2) Can be paid after getting confirmation from B.
3) Can be paid after getting the consent of the legal heirs of A.
4) None of the above.

4) 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

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

5) The combination of two or Companies into a single Company where one survives with it’s name (or a
combined new name) and others lose their corporate existence is known as

1) Merger or Amalgamation
2) Diversification.
3) Combination.
4) All the above

6) Mergers are of 4 types. 1) Vertical mergers 2) Conglomerate mergers 3) Concentric Merger What is the
4th type.

1) Practical mergers
2) Horizondal Mergers
3) Typical mergers
4) Foreign Merger

7) A formal and mutually agreed commercial collaboration between Companies is known as
1) Merger
2) Amalgamation
3) Strategic Alliance
4) Subsidiary

8) Combining of two existing Companies into a new Company in which the both the existing companies
extinguish and a new Company is made or created is known as

1) Consolidation.
2) Merger
3) Strategic Alliance
4) Acquisition

9) 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.

1) Reserve Bank of India
2) United Bank of India
3) State Bank of India.
4) UCO bank

10) The minimum period for which commercial papers can be issued is

1) 12 months
2) 1 month
3) 3 months
4) CP can be issued for maturity from 7 days to 1 year

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

1) Assignment
2) Lien
3) Mortgage
4) Hypothecation

12) A bill is drawn on 16th Feb, 2001 which is payable after 30 days. It will mature on

1) 13.3.2001
2) 15.3.2001
3) 20.3.2001
4) None of these.

13) Mr.Rao wants to give mandate to his minor son

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

14) Executors and administrators can delegate their powers to a third party to operate the account

1) By mandate
2) By power of attorney
3) By obtaining permission from RO.
4) None of the above

15) Registration of a society is required

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

16) Coupon rate refers to

1) Bank rate
2) PLR
3) The annual interest rate specified on bonds
4) All the above.

17) 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?

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

18) Section 171 of Indian Contract 1872, gives to a Banker an absolute right of general lien on all goods
and securities received by the Banker. The Bankers Lien is -----------
1) Set off
2) An Implied Pledge.
3) Mortgage
4) Hypothecation

19) Nomination rules for deposit accounts have been introduced under the following rules of Banking
Regulation Act, 1949:

1) Sec. 45
2) Sec. 45ZA – F
3) Sec. 45ZA – B
4) None of the above

20) 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?
1) You can pay to the other deposit holders jointly
2) You can pay to the other deposit holders, dividing the balance proportionately
3) You can pay as per instruction jointly signed by the solvent depositors and the official receiver of the
undischarged insolvent
4) You can pay to the other deposit holders, dividing the balance proportionately, after taking RO


1) 3 2) 2

3) 2 4) 4 5) 2 6) 4 7) 2 8) 3

9) 2 10) 1 11) 1 12) 1 13) 2 14) 3

15) 1 16) 3 17) 4 18) 4 19) 1 20) 4