Professional Documents
Culture Documents
True
False
The Correct Answer is :
True Module : Module A Chapter : Chapter1
2. A banking company is registered under the Banking Regulation Act. True False
The Correct Answer is :
False Module : Module A Chapter : Chapter1
3. Cooperative banks are registered under the Multi-State Cooperative Societies Act
or a State Cooperaytive Societies Act.
Marks: 2+ 0.5True
False
The Correct Answer is :
True Module : Module A Chapter : Chapter1
4. Subsidiaries of the State Bank are companies registered under the Companies Act.
Marks: 2+ 0.5True
False
The Correct Answer is :
False Module : Module A Chapter : Chapter1
5. Accepting deposits for safe custody would fall within the definition of 'banking'
Marks: 2+ 0.5True
False
The Correct Answer is :
False Module : Module A Chapter : Chapter1
6. Reserve Bank was constituted under _____.
Marks: 2+ 0.5BR Act.
RBI Act
Companies Act
The Correct Answer is :
RBI Act Module : Module A Chapter : Chapter1
7. A Regional Rural Bank is _____.
Marks: 2+ 0.5a body corporate created under a special statute
a cooperative society
a company
The Correct Answer is :
a body corporate created under a special statute Module :
Module A Chapter : Chapter1
8. Banking companies are licensed by _____.
Marks: 2+ 0.5Reserve Bank
Registrar of Companies
Company Law Board Module : Module A Chapter : Chapter1
9. Business which a banking company may undertake other than banking is as
stipulated by ______.
Marks: 2+ 0.5Reserve Bank
BR Act
RBI Act
The Correct Answer is :
BR Act Module : Module A Chapter : Chapter1
10. BR Act was enacted for ________.
Marks: 2+ 0.5regulating banking companies
creating Reserve Bank
regulating acceptances of deposits from public
The Correct Answer is :
regulating banking companies
Module : Module A Chapter : Chapter1
11. Central Government can give direction to the Reserve Bank.
True
False
The Correct Answer is :
True Module : Module A Chapter : Chapter1
12. All kinds of business of banks is regulated only by the Reserve Bank.
True
False
The Correct Answer is :
False Module : Module A Chapter : Chapter1
13. Central Government is the primary regulator of banks
True
False
The Correct Answer is :
False Module : Module A Chapter : Chapter1
14. state governments have no control over cooperative banks.
True
False
The Correct Answer is :
False Module : Module A Chapter : Chapter1
15. On cancellation of license of any bank, an appeal lies to Central Government.
Marks: 2+ 0.5True
False
10 per cent
100 per cent
The Correct Answer is :
10 per cent
Module : Module A Chapter : Chapter2
26. Banking companies are not permitted to give dividend until all _________ are
written off.
Marks: 2+ 0.5bad debts
expenses
capitalised expenses
The Correct Answer is :
capitalised expenses
Module : Module A Chapter : Chapter2
27. A temporary branch for less than 30 days in a town where a bank has an existing
branch does not require permission from Reserve Bank.
True
False
The Correct Answer is :
True Module : Module A Chapter : Chapter2
28. A company to which banking licence is rejected can undertake business as a
moneylender or undertake other business.
Marks: 2+ 0.5True
False
The Correct Answer is :
True Module : Module A Chapter : Chapter2
29. The decision of Reserve Bank to revoke licence is final and no appealies from it.
Marks: 2+ 0.5True
False
The Correct Answer is :
False Module : Module A Chapter : Chapter2
30. Banking companies are permitted to give brokerage up to 2.5 per cent of the
paid-up value of shares.
Marks: 2+ 0.5True
False
The Correct Answer is :
True
Module : Module A Chapter : Chapter2
31. No person can hold the shares of banks beyond ceilling speciried under the BR
Act.
Marks: 2+ 0.5True
False
The Correct Answer is :
False Module : Module A Chapter : Chapter2
32. A banking company cannot hold share in any other company other than a
subsidiary.
Marks: 2+ 0.5True
False
The Correct Answer is :
False Module : Module A Chapter : Chapter2
33. A director of a banking company should not have ______ in any other company.
Marks: 2+ 0.5beneficial interest
any interest
substantial interest
The Correct Answer is :
substantial interest
Module : Module A
Chapter : Chapter2
34. At least ________ of the directors should have the qualifications prescribed
under Section 10A(2) of the BR Act.
Marks: 2+ 0.550 per cent
75 per cent
51 per cent
The Correct Answer is :
51 per cent Module : Module A Chapter : Chapter2
35. When the board of a banking company is ordered to be reconstituted under
Section 10A of the BR Act, directores will be removed _______ for the purpose of
reconstitution.
Marks: 2+ 0.5by rotation
by lots
by majority decision
The Correct Answer is :
by lots Module : Module A Chapter : Chapter2
36. Before removing the Chariman of a bank from office, Reserve Bank has to
_______.
Marks: 2+ 0.5give compensation for loss of office,
give opportunity of being heard
give an option to continue as director.
The Correct Answer is :
give opportunity of being heard
Module : Module A
Chapter : Chapter2
37. The provision of Section 36AA of the BR Act regarding removal of managerial
personnel have ______ over other laws.
Marks: 2+ 0.5no effect
overriding effect
persuasive effect
The Correct Answer is :
overriding effect
Module : Module A
Chapter : Chapter2
38. Reserve Bank is authorised to appoint ______ under SEction 36AB of the BR Act.
Marks: 2+ 0.5directors
additional directors
managing director
The Correct Answer is :
additional directors
Module : Module A
Chapter : Chapter2
39. The maximum period of office that may be held continuously by an ordinary
director in a banking company is 8 years.
Marks: 2+ 0.5True
False
The Correct Answer is :
True Module : Module A Chapter : Chapter2
40. The decisions of the Board of Directors, during the period when the boards'
constitution is defective shall be void.
Marks: 2+ 0.5True
False
The Correct Answer is :
False Module : Module A Chapter : Chapter2
41. The post Chariman of a banking company may be on part-time basis.
True
False
The Correct Answer is :
True Module : Module A Chapter : Chapter2
42. The Chairman of a banking company can hold office only for a maximum period
of 8 years.
Marks: 2+ 0.5True
False
The Correct Answer is :
False Module : Module A Chapter : Chapter2
43. From the order removing Chairman of a banking company, appeal lies to Central
Government within 30 days of the order.
Marks: 2+ 0.5True
False
The Correct Answer is :
True Module : Module A Chapter : Chapter2
44. Reserve Bank has the power to remove any officer or other staff of a banking
company under Section 36AA of the BR Act.
Marks: 2+ 0.5True
False
The Correct Answer is :
True Module : Module A Chapter : Chapter2
45. Reserve Bank may issue directions to banking companies under Section 21 of BR
Act on _________.
Marks: 2+ 0.5audit
loans and advances
captial structure
The Correct Answer is :
loans and advances
Module : Module A
Chapter : Chapter3
46. ______ may regulate acceptance of deposits including rate of interest on deposit
by banking companies under Section 35A of the BR Act.
government
Reserve Bank
Board of Directors
The Correct Answer is :
Reserve Bank
Module : Module A Chapter : Chapter3
47. The banking ombudsman can be an arbitrator in disputes between __________.
Marks: 2+ 0.5two banking companies
two or more customers
a bank and the government
The Correct Answer is :
two banking companies
Module : Module A
Chapter : Chapter3
48. Diretions can be issued to banking companies on loans and advances _______.
Marks: 2+ 0.5in strict confidence
in public interest
in the interst of borrowers
The Correct Answer is :
in public interest
Module : Module A
Chapter : Chapter3
49. The purpose of ________ is to make credit available to essential sectors of the
economy according to national priorities.
Marks: 2+ 0.5selective credit control
maintenance of cash reserve
reserve fund
The Correct Answer is :
selective credit control
Module : Module A Chapter : Chapter3
50. _________ Act prohibits lending at exorbitant rates and empowers reopening of
such contracts.
Marks: 2+ 0.5BR Act
RBI Act
Usurious Loans Act
The Correct Answer is :
Usurious Loans Act
Module : Module A
Chapter : Chapter3
51. Reserve Bank can issue directions on loans and advances under Section 21 of the
Banking Regulation Act.
Marks: 2+ 0.5True
False
The Correct Answer is :
True Module : Module A Chapter : Chapter3
52. Regulation of credit to different sectors of the economy is known as selective
credit control.
Marks: 2+ 0.5True
False
The Correct Answer is :
True
Module : Module A
Chapter : Chapter3
53. Banks are free to lend to their directors.
Marks: 2+ 0.5True
False
The Correct Answer is :
False Module : Module A Chapter : Chapter3
54. Bank have to file a return to Reserve Bank regarding unclaimed deposits under
Section 26 of the BR Act.
Marks: 2+ 0.5True
False
The Correct Answer is :
True Module : Module A Chapter : Chapter3
55. Directions may be issued under RBI Act to banks in respect of loans and
advances in the interest of depositors.
Marks: 2+ 0.5True
False
The Correct Answer is :
False Module : Module A Chapter : Chapter3
56. _______ have to maintain cash reserve under Section 18 of the BR Act.
Coop.
banks
Banking companies which are not scheduled banks
Nationalised banks
The Correct Answer is :
Banking companies which are not scheduled banks
Module : Module A Chapter : Chapter3
57. The liquid assets to be maintained under Section 24(2A) of BR Act are RBI Act.
Marks: 2+ 0.5inclusive
not inclusive
partly inclusive
The Correct Answer is :
not inclusive
Module : Module A
Chapter : Chapter3
58. The payment of penalty under Section 24 of BR Act can be enforced by making
an appliation before _____.
Marks: 2+ 0.5the government
civil court
high court
The Correct Answer is :
civil court
Module : Module A
Chapter : Chapter3
59. Only scheduled banks havea duty to maintain cash reserve under Section 42 of
the Reserve Bank of India Act.
Marks: 2+ 0.5True
False
The Correct Answer is :
True Module : Module A Chapter : Chapter3
60. Every banking compnay has to maintain the liquid assets as required under
Section 24 of the Banking Regulation Act.
Marks: 2+ 0.5True
False
The Correct Answer is :
True Module : Module A Chapter : Chapter3
61. The share capital and reserves of banking company from part of its demand and
time liabilities for the purpose of Section 42 of the RBI
True
False
The Correct Answer is :
False Module : Module A Chapter : Chapter3
62. Additional cash reserve required under Section 42 (1A) will be as notified by the
Central Government from time to time.
Marks: 2+ 0.5True
False
The Correct Answer is :
False Module : Module A Chapter : Chapter3
63. Interest is payable to scheduled banks on the additional cash reserve maintained
as required under Section 42 (1A) of the RBI Act.
True
False
The Correct Answer is :
True Module : Module A Chapter : Chapter3
64. No banking company incorporated in India is required to maintain reserve fund
under Section 17 (1) of the BR Act.
Marks: 2+ 0.5True
False
The Correct Answer is :
False Module : Module A Chapter : Chapter3
65. The diretions of Reserve Bank issued to the banking companies under Section
35A of the Banking Regulation Act are __________.
binding on them
any report from the Reserve Bank on the affairs of the bankijng company.
Marks: 2+ 0.5True
False
The Correct Answer is :
False Module : Module A Chapter : Chapter4
92. The undertaking of an acquired bank may vest in the Central Government or in
any company or corporation as directed by the Central Government.
Marks: 2+
0.5
True
False
The Correct Answer is :
True Module : Module A Chapter : Chapter4
93. On the application of Reserve Bank, the High Court may stay the commencement
or continuance of proceedings against any banking company for any period of time.
Marks: 2+ 0.5True
False
The Correct Answer is :
False Module : Module A Chapter : Chapter4
94. The Reserve Bank or State Bank or another person as specfied by the Reserve
Bank in its application before the High Court may be appointed as liquidator of a
banking company,
Marks: 2+ 0.5True
False
The Correct Answer is :
True Module : Module A Chapter : Chapter4
95. On winding uop of a banking company, all the depositors as a class get the first
preference for payment.
Marks: 2+ 0.5True
False
The Correct Answer is :
False Module : Module A Chapter : Chapter4
96. The Reserve Bank may prepare a scheme for reconstruction or amalgamation of
a banking company under moratorium under Section 45 of the BR Act.
Marks: 2+ 0.5True
False
The Correct Answer is :
True Module : Module A Chapter : Chapter4
97. Making any false statements in a return or other document submitted under the
provisions of the BR Act is punishable with imprisonment and fine also.
Marks: 2+ 0.5True
False
The Correct Answer is :
True Module : Module A Chapter : Chapter4
98. The State Bank of India is a __________ constituted under the State Bank of
India Act.
Marks: 2+ 0.5banking company
body corporate
society
The Correct Answer is :
body corporate Module : Module A:ch. undefined
99. The Chairman of the State Bank is appointed by ______ in consultation withe the
Reserve Bank.
Marks: 2+ 0.5the Central Board
Banking services Recruitment Board
Central Government
The Correct Answer is :
Central Government
Module : Module A
Chapter : undefined
100. State Bank has to act as ________ and carry out Central Government business
and other business entrusted by the Reserve Bank.
agent of Reserve Bank
agent of Central Government
advisor to the Central Government
The Correct Answer is :
agent of Reserve Bank
Module : Module A
Chapter : undefined
101. The provision of the _______ are applicable to State Bank as stipulated in
Section 51 of the BR Act.
Marks: 2+ 0.5RBI Act
Banking Regulation Act
Companies Act
The Correct Answer is :
Banking Regulation Act
Module : Module A Chapter : undefined
102. The majority of shares of subsidiary banks are held by ________ .
Reserve bank
Central Government
State bank
The Correct Answer is :
Reserve bank
Module : Module A
Chapter : undefined
103. Regional rural banks operate in _______.
Marks: 2+ 0.5a notified area
the whole of a state
only a district
The Correct Answer is :
a notified area
Module : Module A Chapter : undefined
104. The management of the affairs of a regional rural bank is vested in ___
the Sponsor Bank
its Board of Directors
National Bank
The Correct Answer is :
its Board of Directors
Module : Module A
Chapter : undefined
105. The State Bank can make statutory regulations for carrying out this purposes of
the State Bank of India Act, in consultation with Reserve Bank and with previous
approval of the Central Government .
Marks: 2+ 0.5True
False
The Correct Answer is :
True Module : Module A Chapter : undefined
106. The Central Bank Government is not authorised to give any directions to the
State Bank in matters of policy involving public interest.
True
False
The Correct Answer is :
False Module : Module A Chapter : undefined
107. The provision of Sectionm 42 of the Reserve Bank of India Act relating to cash
reserve apply to State Bank
Marks: 2+ 0.5True
False
The Correct Answer is :
True Module : Module A Chapter : undefined
108. Subsidiary banks do not have to maintain liquid assets under Section 24 of the
BR Act.
Marks: 2+ 0.5True
False
The Correct Answer is :
False Module : Module A Chapter : undefined
109. Regional rural banks may transact the business of banking as defined in Section
5(b) of the BR Act and also other business specified in Section 6(1) of that Act.
Marks: 2+ 0.5True
False
The Correct Answer is :
True Module : Module A Chapter : undefined
110. Two regional rural banks may be amalgamated by the Reserve Bank by
notification in the gazette.
Marks: 2+ 0.5True
False
The Correct Answer is :
False Module : Module A Chapter : undefined
True
False
The Correct Answer is :
True
Module : Module A
Chapter : undefined
120. A primary cooperative bank does not require licence from the Reserve Bank to
carry on banking business.
Marks: 2+ 0.5True
False
The Correct Answer is :
False Module : Module A Chapter : undefined
121. The provision of the Banking Regulation Act as provided in Section 56 of the Act
apply to cooperative banks.
Marks: 2+ 0.5True
False
The Correct Answer is :
True Module : Module A Chapter : undefined
122. A 'Cooperative Bank' means a primary cooperative bank, central cooperative
bank and a state cooperative bank.
Marks: 2+ 0.5True
False
The Correct Answer is :
True Module : Module A Chapter : undefined
123. There are no restrictions under the BR ACt on lending by cooperative banks to
their directors of firms in which they are interested.
True
False
The Correct Answer is :
False Module : Module A Chapter : undefined
124. A scheduled cooperative bank to maintian ash resrve as stipulated in Section 42
of tjhe Reserve Bank of India Act (as application to cooperative societies.
Marks: 2+ 0.5True
False
The Correct Answer is :
True Module : Module A Chapter : undefined
125. Inspection of cooperative banks is done by the state government under the
cooperative Societies Act and the Reserve Bank has no power to inspect under the
Banking Regulation Act.
Marks: 2+ 0.5True
False
The Correct Answer is :
False Module : Module A Chapter : undefined
126. The relating to payment of cheques and protection to a banker is contained in
the India Contract Act.
Marks: 2+ 0.5True
False
The Correct Answer is :
False Module : Module B Chapter : Chapter1
127. The responsibility of a banker to pay back the money of the customer
specifically state in the Negotiable Instrument Act, 1881
Marks: 2+ 0.5True
False
The Correct Answer is :
True Module : Module B Chapter : Chapter1
128. Section 31 of the Negotiable Instruments Act applies only on banker.
True
False
The Correct Answer is :
True
Module : Module B Chapter : Chapter1
129. The banker is first bound to honour a customer cheque and only thereafter
exercise him right of set off.
Marks: 2+ 0.5True
False
The Correct Answer is :
False Module : Module B Chapter : Chapter1
130. A forged signature is no mandate of the customer.
Marks: 2+ 0.5True
False
True
False
The Correct Answer is :
True
Module : Module B Chapter : undefined
201. A mortgage deed need not be witnessed.
Marks: 2+ 0.5True
False
The Correct Answer is :
False Module : Module B Chapter : undefined
202. Permission from Income Tax Authorities under Section 230 to create mortgage
is required only if the land belongs to a company.
True
False
The Correct Answer is :
False Module : Module B Chapter : undefined
203. Arrears of tax constitute a preferential charge on the property.
True
False
The Correct Answer is :
True Module : Module B Chapter : undefined
204. There are three types of shares - ordinary, equity and preference.
True
False
The Correct Answer is :
False
Module : Module B Chapter : undefined
205. Debenture is a kind of share issued by a company and has no voting rights.
Marks: 2+ 0.5True
False
The Correct Answer is :
False Module : Module B Chapter : undefined
206. Borrower can create a valid pledge with documents of title of goods.
True
False
The Correct Answer is :
True Module : Module B Chapter : undefined
207. Bills of Lading, Dock Warrants, warehouse-keeper's certificate, etc,. are some
examples of documents of title of goods.
Marks: 2+ 0.5True
False
The Correct Answer is :
True Module : Module B Chapter : undefined
208. Documents of title to goods are negotiable instruments.
True
False
The Correct Answer is :
False Module : Module B Chapter : undefined
209. Only LIC can issue life policies.
Marks: 2+ 0.5True
False
The Correct Answer is :
True Module : Module B Chapter : undefined
210. Insurance contracts are contracts of absolute good faith.
True
False
The Correct Answer is :
True Module : Module B Chapter : undefined
211. An assignee of a life policy can sue in his own name.
Marks: 2+ 0.5True
False
The Correct Answer is :
True Module : Module B Chapter : undefined
212. For a loan against Fixed Deposit Receipt, the stamp duty is very high.
True
False
The Correct Answer is :
False Module : Module B Chapter : undefined
213. Supply bills are Bills of Exchange.
Marks: 2+ 0.5True
False
The Correct Answer is :
False Module : Module B Chapter : undefined
True
false
The Correct Answer is :
True Module : Module B Chapter : undefined
228. Individual borrowers are governed by the ___________ Act.
Indian contract.
Module : Module B Chapter : undefined
229.In a HinduUndivided Family the business of the fami8ly is managed by Karta
Module : Module B Chapter : undefined
230. A company is ____ and _______ from its members.
Marks: 2+ 0.5Separate and distinct.
Module : Module B Chapter : undefined
231. A Private Limited Company has minimum ________ number of members and a
maximum of _____ numbers of members.
Marks: 2+ 0.52 , 50
Module : Module B Chapter : undefined
232. A Public Limited Company shares are ___________ transferable.
Freely
Module : Module B Chapter : undefined
233. Statutory Corporations are established by Acts of ________.
Parliament
Module : Module B Chapter : undefined
234. Private Trusts are governed by the _______ Act.
Marks: 2+ 0.5Indian Trust Act.
Module : Module B Chapter : undefined
235. Trusts of Hindus are governed by the _______ Act.
Marks: 2+ 0.5Religious and Charitable Endowments Act
Module : Module B Chapter : undefined
236. Trusts of Muslims are governed by the _______ Act.
Marks: 2+ 0.5Wakf
Module : Module B Chapter : undefined
237. Cash Credit facility is a _________
Marks: 2+ 0.5Fund based facility
Module : Module B Chapter : undefined
238. Bills co-acceptance facility is a __________.
Marks: 2+ 0.5Non-Fund based facility
Module : Module B Chapter : undefined
239. Banker is entitled to charge interest on temporary overdraft under Banking Custom
Module : Module B Chapter : undefined
240. Limitation period for filing a suit in Term Loans is _________ years from the
date of default of installment.
Marks: 2+ 0.53 (Three)
Module : Module B Chapter : undefined
241. Period of repayment in the case of medium-term loan is _________.
5-7 Years
Module : Module B Chapter : undefined
242. Only personal security of the borrower is available in the case of _______ loans.
Marks: 2+ 0.5Unsecured
Module : Module B Chapter : undefined
243. Secured loans are normally secured by ___________.
Marks: 2+
Pledge, hypothecation, mortgage or assignment of debts.
Module : Module B Chapter : undefined
244. Pledge is _________ of goods as a security for debt.
Marks: 2+ 0.5Bailment
Module : Module B Chapter : undefined
245. Hypothecation is treated as _____ pledge.
Marks: 2+ 0.5-
Constructive
Module : Module B Chapter : undefined
246. Personal obligation of Mortgage is a distinct feature of ___________.
Mortgage by deposit of title deeds.
Module : Module B Chapter : undefined
247. Section 58 of Partnership Act, 1932 provides for ________.
Registration
of partnership.
Module : Module B Chapter : undefined
248. A partner on behalf of firm institute a suit on contract, if the firm is registered.
Marks: 2+ 0.5True
False
The Correct Answer is :
False Module : Module B Chapter : undefined
249. Shares of public limited company are freely transferable.
True
False
The Correct Answer is :
True Module : Module B Chapter : undefined
250. Certificate of Incorporation is a document evidencing existence of company.
Marks: 2+ 0.5True
False
The Correct Answer is :
True Module : Module B Chapter : undefined
251. Certificate of commencement of business is required for private limited
company to start business.
Marks: 2+ 0.5True
False
The Correct Answer is :
False Module : Module B Chapter : undefined
252. Charge means any form of ________ for ________
Marks: 2+ 0.5Security, debt
Module : Module B Chapter : undefined
253. Charges created by company shall be registered with _________.
Registrar of Companies
Module : Module B Chapter : undefined
254. Under Companies Act a charge includes _______.
Marks: 2+ 0.5Mortgage
Module : Module B Chapter : undefined
255. Charge if not registered is not enforceable against company
True
False
The Correct Answer is :
False
Module : Module B Chapter : undefined
256. Charge shall be registered within _________ days from the date of creation of
charge.
Marks: 2+ 0.530
Module : Module B Chapter : undefined
257. Banks obtain security while lending so that in case of need the money can be
________ of securities.
Marks: 2+ 0.5realized
Module : Module C Chapter : Chapter1
258. The SARFAESI Act is applicable to the housing finance companies whose names
are notified by the Central Governmnet .
Marks: 2+ 0.5True
False
The Correct Answer is :
True
Module : Module C Chapter : Chapter1
259. In Mardia Chemical Case the Supreme Court decided that condition of deposit of
amount is fully invalid.
Marks: 2+ 0.5True
False
268. If the borrower does not pay within _______ days after notice by the secured
creditor the creditor can ____ of the security.
Marks: 2+ 0.560, take possession
Module : Module C Chapter : Chapter2
269. After receipt of notice from the secured creditor for repayment of dues by the
borrower, the borrower is legally prevented from transferring his property in any way.
Marks: 2+ 0.5True
False
The Correct Answer is :
True Module : Module C Chapter : Chapter2
270. On request of the secured creditor the District Magistrate or the Chief Judical
Magistrate can take possession of the security for handing over it to the creditor.
Marks: 2+ 0.5True
False
The Correct Answer is :
True Module : Module C Chapter : Chapter2
271. When the management of the company is taken over by the secured creditor,
the directors of such company are entitled to compensation for loss of office.
Marks: 2+ 0.5True
False
The Correct Answer is :
False Module : Module C Chapter : Chapter2
272. When any bank or financial institution creates a charge against property, with
which authority the transaction will have to be registered under the SARFAESI Act,
2002?
Marks: 2+ 0.5With the Central Registry.
With the ROC.
With the Registrar of Assurances within whose jurisdiction the property lies.
With the Reserve Bank of India.
The Correct Answer is :
With the Central Registry.
Module : Module C Chapter : Chapter2
273. When the provisions of SARFAESI Act, 2002 can be invoked for proceeding
against the charged property?
Marks: 2+ 0.5When the bank feels that it is necessary for the recovery at any time.
When the RBI directs to do so.
When there is default in repayment by the borrower.
When there is default in repayment and the bank declares the account as NPA.
The Correct Answer is :
When there is default in repayment and the bank declares
the account as NPA.
Module : Module C Chapter : Chapter2
274. Whether existing or future receivables are property?
Marks: 2+ 0.5Yes.
No.
Yes, but if and when charged to the lender.
No, if hypothecated to the lender.
The Correct Answer is :
Yes. Module : Module C Chapter : Chapter2
275. From the following which function is of securitisation company?
Acquisition of loan transaction from the lender.
Help the lender in recovery by sale of charged property.
Take legal steps against the defaulter borrower on behalf of the lender.
Acquisition of financial assest from the originator.
The Correct Answer is :
Acquisition of financial assest from the originator.
Module : Module C Chapter : Chapter2
276. Securitisation company or reconstruction company needs registration from RBI
for commencement of business.
Marks: 2+ 0.5True
False
The Correct Answer is :
True Module : Module C Chapter : Chapter3
277. Right of acquisition of finanical asset by Securitisation company or
reconstruction company is subject to the prior agreements or contracts about the
asset.
Marks: 2+ 0.5True
False
The Correct Answer is :
False Module : Module C Chapter : Chapter3
289. A guarantor to the loan is within the meaning of the word borrower under
SARFAESI Act.
Marks: 2+ 0.5True
False
The Correct Answer is :
True Module : Module C Chapter : Chapter4
290. SARFAESI Act is applicable only when there is security.
True
False
The Correct Answer is :
True Module : Module C Chapter : Chapter4
291. Has SARFAESI Act defined hypothecation and whether the Act is applicable to
hypothecation security?
Marks: 2+ 0.5True
False
The Correct Answer is :
True Module : Module C Chapter : Chapter4
292. On giving default notice by the creditor, the borrower gives a reply to it. what
the creditor should do?
Marks: 2+ 0.5Ignore the notice as the law does not provide for any reply option to the bank.
Wait till the borrower initiates any legal action based on his reply.
Give due consideration case by the Supreme Court and reply to it.
Take the matter before DRT for resolving issues raised in reply.
The Correct Answer is :
Give due consideration case by the Supreme Court and
reply to it.
Module : Module C
Chapter : Chapter4
293. On sale of security asset, the sale proceeds are appropriated firstly.
Towards satisfaction of dues of secured creditor.
Towards payment of dues of labour.
Towards payment of cost, charges and expenses for preservation and protection of
securities, insurance premiums, etc
Towards payment of legal costs incurred by the creditor for taking possession and
for effecting sale.
The Correct Answer is :
Towards payment of cost, charges and expenses for
preservation and protection of securities, insurance premiums, etc
Module : Module C Chapter : Chapter4
294. After coming into operation the provision relating to central registry the banks
and financial institutes will have to register all security interest created in the asset.
Marks: 2+ 0.5True
False
The Correct Answer is :
True Module : Module C Chapter : Chapter5
295. The period stipulated in the Act for filing details of security interest is ___ days.
Marks: 2+ 0.530
Module : Module C
Chapter : Chapter5
296. Duty to report satisfaction of charge to the central registrar is on creditor or on
the borrower?_______
Marks: 2+ 0.5creditor
Module : Module C Chapter : Chapter5
297. Besides the SARFAESI Act some other laws require some registration of charge
created in the property. if such double registration is avoidable?
Yes, the
creditor can choose under which law he needs registration.
No. registration under SARFAESI Act as well as any other applicable law will have
to be made as SARFAESI Act is not substitution of any other law.
Yes, if one charge noting is by a registered document.
No, as the Civil Courts and DRT still have jurisdiction against the properties both
registration are required.
The Correct Answer is :
No. registration under SARFAESI Act as well as any other
applicable law will have to be made as SARFAESI Act is not substitution of any other
law.
Module : Module C
Chapter : Chapter5
298. Is there any punishment provided in the Act for not following RBI directions?
Marks: 2+ 0.5Yes,
Module : Module C Chapter : undefined
299. Can the Honorary Magistrate take cognizance of offcence under SARFAESI Act?
Marks: 2+ 0.5No
Module : Module C Chapter : undefined
300. Whether breach of RBI directives is punishable offence and to what extent?
Marks: 2+ 0.5Yes, fine up to five lakh rupees and for continuation of offence per day fine up to
rupees ten thousand.
Yes, by cancellation of licences of the company.
No, these are the administrative directions.
No, the Act has not provided for any punishment in specifc.
The Correct Answer is :
Yes, fine up to five lakh rupees and for continuation of
offence per day fine up to rupees ten thousand.
Module : Module C Chapter : undefined
301. For challenging action initiated by seured creditor against the defaulter
borrower under SARFAESI Act, the borrower can go to the Civil Court for injunction.
Marks: 2+ 0.5True
False
The Correct Answer is :
False Module : Module C Chapter : undefined
302. Can the bank take action under SARFAESI Act against a deposit under lien with
it
Marks: 2+ 0.5Yes
No
The Correct Answer is :
No Module : Module C Chapter : undefined
303. Are hire-purchase and lease contracts covered under SARFAESI Act?
Yes
No
The Correct Answer is :
No
Module : Module C Chapter : undefined
304. After Bank's notice a defaulter borrower has paid within 60 days substantial
amount and present dues are Rs 1 lakh which are 15% of the claimed amount. Can
bank proceed to take possession of the security?
Yes
No
The Correct Answer is :
No Module : Module C Chapter : undefined
305. If on some point the provisions of Transfer of Property Act and SARFAESI Act
are different, which Act will prevail?
Marks: 2+ 0.5SARFAESI Act
The Correct Answer is :
SARFAESI Act
Module : Module C Chapter : undefined
306. Can a bank proceed to take possession of the security after four years of cause
of action?
Marks: 2+ 0.5Yes
No
The Correct Answer is :
No Module : Module C Chapter : undefined
307. Provision of SARFAESI Act are applicable to which of the following?
Pledges
goods.
Only mortgaged properties.
Securities that are not otherwise charged to the creditors.
Securities charged to creditors and not in possession of the creditor.
The Correct Answer is :
Securities charged to creditors and not in possession of
the creditor.
Module : Module C Chapter : undefined
308. when the Rules, framed by the Central Government, under the Act get validity?
Marks: 2+ 0.5After the Appellate Tribunal of DRt approves them.
318. On valid grounds bank can refuse opening new account on this ground
complaint before the Banking Ombudsman is maintainable.
True
False
The Correct Answer is :
False Module : Module C Chapter : undefined
319. Can a prospective borrower go before the Banking Ombudsman for nonsanction of his loan by the bank.
Marks: 2+ 0.5Yes
No
The Correct Answer is :
No Module : Module C Chapter : undefined
320. Banking Ombudsman has powers to call any information and certified copies
from bank when he is dealing with the complaint.
Marks: 2+ 0.5Yes
No
The Correct Answer is :
Yes Module : Module C Chapter : undefined
321. For setting the complaint Banking Ombudsman is bound by legal rules of
evidence.
Marks: 2+ 0.5True
False
The Correct Answer is :
False Module : Module C Chapter : undefined
322. What is the maximum amount the Banking Ombudsman can award as
compnesation.
Marks: 2+ 0.5Rs 10 lakh
The Correct Answer is :
Rs 10 lakh Module : Module C Chapter : undefined
323. Limitation period for filling of the review application against the award given by
the Banking Ombudman is _________ month/s.
Marks: 2+ 0.5One
Module : Module C Chapter : undefined
324. For dealing with the review application against the award passed by the Banking
Ombudsman_________ is the review authority.
Marks: 2+
Reserve Bank of India.
Module : Module C Chapter : undefined
325. Can a customer from whose account fraudulently someone has withdrawn
money make complaint before the Banking Ombudsman?
No, as the offence committed is of criminal nature FIR with police has to be filed.
Yes, but if the police authoirities who have received FIR permit filing of complaint
with Ombudsman.
Yes, as this aspect comes under the powers of Banking Ombudsman.
No, as the loss caused to the customer is of a civil nature for recovery, civil suit is
required to be filed.
The Correct Answer is :
Yes, as this aspect comes under the powers of Banking
Ombudsman.
Module : Module C
Chapter : undefined
326. Banking Ombudsman can act as arbitrator if the value of the claim in the
dispute is less than Rs _______
Marks: 2+ 0.5Rs 10 lakh
Module : Module C Chapter : undefined
327. For agreeing to refer the matter to the Banking Ombudsman as arbitrator
parties to the dispute are required to give____.
Marks: 2+ 0.5affidavit of undertaking
Module : Module C
Chapter : undefined
328. The complainant is required to produce his documents in support of his claim
only at the time of hearing of the case.
Marks: 2+ 0.5True
False
The Correct Answer is :
False Module : Module C Chapter : undefined
329. Oppositte party to the dispute has to file a new claim if there is any counter
claim from his side.
Marks: 2+ 0.5True
False
The Correct Answer is :
False Module : Module C Chapter : undefined
330. Before dealing with the case the Banking Ombudsman has to draw up a
document defining________.
Marks: 2+ 0.5-
Terms of Reference
Module : Module C Chapter : undefined
331. Once the dispute before the Banking Ombudsman is referred to arbitration can
new claim or counterclaim be made?
Marks: 2+ 0.5No, as the reference on the issues has already been made.
Yes, provided the claim and counterclaim are within the terms of reference.
Yes, provided additional stamp duty is paid thereon.
No, because arbitration is by mutual consent so stage of claim and counterclaim
does not arise.
The Correct Answer is :
Yes, provided the claim and counterclaim are Module :
Module C Chapter : undefined
332. DRT Act is applicable only if the debt recoverable is above Rs__________.
Marks: 2+ 0.5Rs 10 lakh
Module : Module C Chapter : undefined
333. The debt recoverable through DRT may be secured or unsecured.
True
False
The Correct Answer is :
True Module : Module C Chapter : undefined
334. Overdrawn amount in an account is not a debt recoverable under DRT Act.
True
False
The Correct Answer is :
False Module : Module C Chapter : undefined
335. If a Civil Court has passed a decree it has to be executed through that court
only and cannot come to Recovery Tribunal
Marks: 2+ 0.5True
False
The Correct Answer is :
False Module : Module C Chapter : undefined
336. A Bank has allowed a current A/c holder ad hoc overdraft of Rs 15 lakh. The
amount is due. whether this is recoverable under provisions of DRT Act?
No, as it is not a regular loan.
No, as only secured loans can be recovered under the DRT Act.
Yes, as it is a legally recoverable amount by the Bank.
Yes, but if the tribunal grants special permission to lodge the case.
The Correct Answer is :
Yes, as it is a legally recoverable amount by the Bank.
Module : Module C Chapter : undefined
337. Debt Recovery Tribunals are established by _______
Marks: 2+ 0.5Central Government
Module : Module C Chapter : undefined
338. Debt Recovery Tribunals consist benches of three persons.
True
False
The Correct Answer is :
False Module : Module C Chapter : undefined
339. Jurisdiction of Appellate Tribunal is with the respective High Courts.
True
False
The Correct Answer is :
False Module : Module C Chapter : undefined
340. Can the order of Central Government appointing Presiding Officer of the
Tribunal be challenged in any Court?
Marks: 2+ 0.5Yes, before the Appellate Tribunal.
No.
No, unless the High Court permits for it
Yes, under Constitution Article 226 before the High Court.
The Correct Answer is :
No. Module : Module C Chapter : undefined
341. A decree passed by the foreign court can be executed by the Tribunal
True
False
The Correct Answer is :
True Module : Module C Chapter : undefined
342. For reasons the Chairperson of the Appellate Tribunal can transfer any case
from one Tribunal to other Tribunal within his jurisdiction.
True
False
The Correct Answer is :
True Module : Module C Chapter : undefined
343. For the matters of which the Tribunals are empowered the Civil Courts have no
jurisdiction.
Marks: 2+ 0.5True
False
356. Recovery Officer can aski the defendant to furnish by affidavit particulars of his
asset.
Marks: 2+ 0.5True
False
The Correct Answer is :
True Module : Module C Chapter : undefined
357. A company is under winding up process. Whether High Court permission is
required to a Bank to proceed against it before DRT?
No, as the DRT Act being a special Law having overriding effect over other laws.
Yes, as Companies Act specially provides to that effect.
Depends on the stage of winding up process.
No permission but concurrence of High Court required.
The Correct Answer is :
No, as the DRT Act being a special Law having overriding
effect over other laws.
Module : Module C Chapter : undefined
358. If the books of the bank are maintained in the electronic form, does all the
provisions of this Act are applicable to it.
Marks: 2+ 0.5Yes
No
The Correct Answer is :
Yes
Module : Module C
Chapter : undefined
359. Does this Act apply to any investigation or inquiry under the Criminal Procedure
Code?
Marks: 2+ 0.5Yes
No
The Correct Answer is :
Yes Module : Module C Chapter : undefined
360. A certified copy of any entry in a Bankers' Books is received in legal proceeding
as ______ evidence for existence of such entry.
Marks: 2+
prima facie
Module : Module C Chapter : undefined
361. Unless the Court otherwise directs, bank offier cannot be compelled to
produce____ to prove any banker's book's contents when copy is produced.
Original books
Module : Module C Chapter : undefined
362. In a civil suit to which bank is not a party has produced certified copy of books
of account. One party to the suit wants to call bank officer as witness to prove the
contents of copy. Can it be done?
Marks: 2+ 0.5Yes, as it is right of the party to get it reaffirmed in evidence.
No, as the certified copy is a prima facie evidence that is admissible in evidence.
No, unless the bank volunteers to do so.
Yes, but if Court allows the application to call the witness.
The Correct Answer is :
No, as the certified copy is a prima facie evidence that is
admissible in evidence.
Module : Module C
Chapter : undefined
363. Consumer Protection Act is enacted to protect the manufacturing conditions of
the Industries.
Marks: 2+ 0.5True
False
The Correct Answer is :
False Module : Module C Chapter : undefined
364. The agencies appointed under Consumer Protection Act are quasi-judicial in
nature.
Marks: 2+ 0.5True
False
The Correct Answer is :
True Module : Module C Chapter : undefined
365. Can a voluntary consumer association file a complaint on behalf of consumer.
Marks: 2+ 0.5Yes
No
The Correct Answer is :
Yes Module : Module C Chapter : undefined
366. A consumer has purchased goods for resale. Can he file complaint?
Yes
No
The Correct Answer is :
No Module : Module C Chapter : undefined
367. 'A' has purchased a draft from a bank favouring 'B'. The draft is lost in transit
and for duplicate draft in lieu of first bank need some formalities to be completed
by'A'. Can 'B' file a consumer case against the formalities as at is delaying payment
to him.
Marks: 2+ 0.5No, as he is not conusmer of the bank and is not taking any service from the
bank.
No, as he has not paid the demand draft commission.
Yes, as because of bank his payment is getting delayed.
Yes, his money is lying in the bank, he is deemed as account holder of the bank.
The Correct Answer is :
No, as he is not conusmer of the bank and is not taking
any service from the bank.
Module : Module C
Chapter : undefined
368. Central Consumer Protection Council is the apex council having all India
Jurisdiction.
Marks: 2+ 0.5True
False
The Correct Answer is :
True Module : Module C Chapter : undefined
369. Minister in charge of consumer affairs in the Central Government is the
Chairman of Central Consumer Protection Council.
Marks: 2+ 0.5True
False
The Correct Answer is :
True Module : Module C Chapter : undefined
370. State Consumer Protection Council is appointed by Central Government
True
False
The Correct Answer is :
False Module : Module C Chapter : undefined
371. State Consumber Protection Council has to meet at least ____ in a year.
Marks: 2+ 0.5Twice
Module : Module C
Chapter : undefined
372. Who is the Chairman of the Central Consumer Protection Council?
Cheif
Justice of the Supreme Court.
Judge of the Supreme Court appointed by the Chief Justice of the Supreme Court.
Minister in charge of Law and Judiciary in the Central Government .
Minister in charge of consumer affairs in the Cenral Government
The Correct Answer is :
Minister in charge of consumer affairs in the Cenral
Government
Module : Module C Chapter : undefined
373. To appoint a person as President of District Forum, he must be qualified to be a
District Judge.
Marks: 2+ 0.5True
False
The Correct Answer is :
True Module : Module C Chapter : undefined
374. Appointment of District Forum is made by the High Court.
True
False
The Correct Answer is :
False Module : Module C Chapter : undefined
375. Can few consumers file a representative complaint on behalf of general
consumers at large?
Marks: 2+ 0.5Yes, but with permission of District Forum
Module : Module C Chapter : undefined
376. As the agencies appointed for under the Act are quasi-judicial, they do not have
powers of Civil Court while conducting the case.
Marks: 2+ 0.5True
False
The Correct Answer is :
False Module : Module C Chapter : undefined
377. District Forum has passed order to pay compensation. How recovery of the
ordered amount is made?
Marks: 2+ 0.5By filling execution in Civil Court.
By filling execution before District forum.
By filling civil Suit.
By referring the order toe collector for making recovery as if and revenue
recovery.
The Correct Answer is :
By referring the order toe collector for making recovery as
if and revenue recovery.
Module : Module C
Chapter : undefined
378. A _________ is free when the parties to the contract agree to the same thing in
the same sense.
Marks: 2+ 0.5consent
contract
agreement
The Correct Answer is :
consent Module : Module D Chapter : Chapter1
379. A contract without _________ is void.
Marks: 2+ 0.5cash
consideration
indemnity
guarantee
The Correct Answer is :
consideration Module : Module D Cha. : Chapter1
380. A person who makes a proposal is known as _______.
Marks: 2+
promisor
principal debtor
surety
guarantor
The Correct Answer is :
promisor Module : Module D Chapter : Chapter1
381. A person is said to be competent to contract if ___________.
he is a major
he is of sound mind
he is a major and of sound mind
The Correct Answer is :
he is a major and of sound mind
Module : Module D Chapter : Chapter1
382. A enters into an agreement with B to rob C and share money. B runs away with
all the moeny. A can suit against B to recover the money.
True
False
The Correct Answer is :
False Module : Module D Chapter : Chapter1
383. Mr X (aged 17) can enter into an agreement with Mr Y (aged 25) to buy a car.
Marks: 2+ 0.5True
False
The Correct Answer is :
False Module : Module D Chapter : Chapter1
384. A contract is concluded only when the party to whom the proposal is made,
accepts the proposal.
Marks: 2+ 0.5True
False
The Cor rect Answer is :
True Module : Module D Chapter : Chapter1
385. Insurance policies are contracts in the nature of _____.
guarantee
plede
bailment
indemnity
The Correct Answer is :
indemnity Module : Module D Chapter : Chapter2
386. There are ________ parties in a contract of indemnity.
Marks: 2+
2
3
4
5
The Correct Answer is :
2 Module : Module D Chapter : Chapter2
387. A person who is indemnified can recover damages as well as costs for claming
the damages.
Marks: 2+ 0.5True
False
The Correct Answer is :
True Module : Module D Chapter : Chapter2
388. In a contract of indemnity the indemnifier is primarily labile
True
False
The Correct Answer is :
True Module : Module D Chapter : Chapter3
389. In a contract of guarantee the liability of the surety is secondary.
True
False
The Correct Answer is :
True Module : Module D Chapter : Chapter3
390. Anything done for the benefit of the principal debtor, is a sufficient consideration
to the surety for giving the guarantee.
Marks: 2+ 0.5True
False
The Correct Answer is :
True Module : Module D Chapter : Chapter3
391. Where there are co-sureties, a release by the creditor of one of them does not
discharge the others.
Marks: 2+ 0.5True
False
The Correct Answer is :
True Module : Module D Chapter : Chapter3
392. Principal debtor need not pay the surety after the surety has paid to the
creditor.
Marks: 2+ 0.5True
False
The Correct Answer is :
False Module : Module D Chapter : Chapter3
393. Surety is also known as the __________.
Marks: 2+ 0.5indemnifier
bailor
guarantor
bailee
The Correct Answer is :
guarantor Module : Module D Chapter : Chapter3
394. Liability of the surety is ________ that of the principal debtor.
co-extensive with
primary to
secondary to
The Correct Answer is :
co-extensive with
Module : Module D Chapter : Chapter3
395. Surety is _________ if the principal debtor is released by the creditor.
discharged
liable
The Correct Answer is :
discharged Module : Module D Chapter : Chapter3
396. Guarantee obtained by _________ is invalid.
Marks: 2+ 0.5misrepresentation
consent
agreement
contract
The Correct Answer is :
misrepresentation Module : Module D Cha:Chap3
397. Bailor is a person who delivers his goods to the surety to enable him to give a
guarantee.
Marks: 2+ 0.5True
False
The Correct Answer is :
False Module : Module D Chapter : Chapter4
398. Bailee can use the goods given by the bailor, in the manner as he likes.
True
False
The Correct Answer is :
False Module : Module D Chapter : Chapter4
399. The bailee can keep the goods bailed to him and he need not return the same
to the bailor.
Marks: 2+ 0.5True
False
The Correct Answer is :
False Module : Module D Chapter : Chapter4
400. Giving a product on rent for use to another person is a contract of bailment.
True
False
The Correct Answer is :
True Module : Module D Chapter : Chapter4
401. If ornaments kept in the safe locker of bank is stolen in spite of due care by the
bank, the bani is liable to the depositor of ornaments.
True
False
The Correct Answer is :
False Module : Module D Chapter : Chapter4
402. It is the obligation of the bailee to keep his goods separate from the goods of
the bailor.
Marks: 2+ 0.5True
False
The Correct Answer is :
True Module : Module D Chapter : Chapter4
403. The bailor is liable for any loss to the bailee if the goods bailed are defective
and the bailor knowingly does not disclose this fact to the bailee.
True
False
454. The partners can mutually agree and dissolve the firm.
True
False
The Correct Answer is :
True Module : Module D Chapter : undefined
455. On the death of a partner the partnership firm is compulsorily dissolved.
True
False
The Correct Answer is :
False Module : Module D Chapter : undefined
456. A partner of an unregistered firm can file a suit against other partners to get his
share of profits.
Marks: 2+ 0.5True
False
The Correct Answer is :
False Module : Module D Chapter : undefined
457. It is compulsory for a person to hold qualification shares to get appointed as a
director in a private company.
Marks: 2+ 0.5True
False
The Correct Answer is :
False Module : Module D Chapter : undefined
458. Directors are the actual owners of a company
Marks: 2+ 0.5True
False
The Correct Answer is :
False Module : Module D Chapter : undefined
459. Private company can make a issue of shares by prospectus.
True
False
The Correct Answer is :
False Module : Module D Chapter : undefined
460. A company has to be compulsorily registered under the Companies Act, 1956.
True
False
The Correct Answer is :
True Module : Module D Chapter : undefined
461. A company cannot enter into contracts in its own name.
True
False
The Correct Answer is :
False Module : Module D Chapter : undefined
462. If all the members of a company die, then the company has to be wound up.
(i.e. dissolved).
Marks: 2+ 0.5True
False
The Correct Answer is :
False Module : Module D Chapter : undefined
463. In case of a company limited by shares the creditors of the company can
recover the money from the members if the company is not making profits.
True
False
The Correct Answer is :
False Module : Module D Chapter : undefined
464. A member cannot transfer shares in a public company without the consent of
other members.
Marks: 2+ 0.5True
False
The Correct Answer is :
False Module : Module D Chapter : undefined
465. The minimum number of members required in a private company is __
3
7
12
2
The Correct Answer is :
2 Module : Module D Chapter : undefined
466. The minimum number of members required in a public company is-3
7
12
2
The Correct Answer is :
7 Module : Module D Chapter : undefined
467. The maximum number of members in a private company can be _____.
7
12
50
2
The Correct Answer is :
50 Module : Module D Chapter : undefined
468. The maximum number of members in a public company can be _____.
any
number
12
50
51
The Correct Answer is :
any number Module : D Chapter : undefined
469. A private company should have a minimum paid-up capital of Rupees _
five crore
five lakh
one crore
one lakh
The Correct Answer is :
one lakh Module : Module D Chapter : undefined
470. A public company should have a minimum paid-up capital of Rupees __
five crore
five lakh
one crore
one lakh
The Correct Answer is :
five lakh Module : Module D Chapter : undefined
471. In a government company the government holds at least_____ per cent.
12
15
50
51
The Correct Answer is :
51 Module : Module D Chapter : undefined
472. In case of conflict between the Memorandum of Association and Articles of
Association, the Articles of Association prevails.
True
False
The Correct Answer is :
False Module : Module D Chapter : undefined
473. Doctrine of ultra vires lays down that every outsider is assumed to have read
the Memorandum of Association and Articles of Association.
True
False
The Correct Answer is :
False Module : Module D Chapter : undefined
474. Doctrine of constructive notice states that the outsiders are not required to see
the compliance of internal regulations of the company.
True
False
The Correct Answer is :
False Module : Module D Chapter : undefined
475. Doctrine of indoor management lays down that a company cannot carry on the
objects not permitted by its Memorandum of Association.
True
False
The Correct Answer is :
False Module : Module D Chapter : undefined
476. A minor can be a member of a private company but not of a public company.
True
False
The Correct Answer is :
False Module : Module D Chapter : undefined
477. A member can inspect the register of members.
Marks: 2+ 0.5True
False
The Correct Answer is :
True Module : Module D Chapter : undefined
478. There are no remedies available for misstatements in prospectus by directors.
True
False
The Correct Answer is :
False Module : Module D Chapter : undefined
479. The maximum number of directors in a private company can be _____
3
7
12
5
The Correct Answer is :
12 Module : Module D Chapter : undefined
480. The maximum number of directors in a public company can be _____.
3
7
12
15
The Correct Answer is :
12 Module : Module D Chapter : undefined
481. The minimum number of dirctors required in a public company is __
3
7
12
2
The Correct Answer is :
3 Module : Module D Chapter : undefined
482. The minimum number of directors required in a private company is ___
3
7
12
2
The Correct Answer is :
2 Module : Module D Chapter : undefined
483. At least _____. of the total number of directors of a public company are to be
persons whose periof of office is liable to determination by retirement by rotation.
Marks: 2+ 0.52
7
two-third
The Correct Answer is :
two-third Module : Module D Chapter : undefined
484. Every public company, or a private company which is a subsidiary of a public
company, having a paid-up share capital of Rupees _____ must have a managing or
whole-time director or a manager.
Marks: 2+ 0.5five crore
five lakh
one crore
one lakh
The Correct Answer is :
five crore Module : Module D Chapter : undefined
485. Additional directors are appointed by the ________.
Marks: 2+ 0.5board of directors
promoters
underwriters
shareholders
The Correct Answer is :
board of directors Module : D Chapter : undefined
486. Alternate directors are appointed by the _______.
Marks: 2+ 0.5board of directors
promoters
underwriters
shareholders
The Correct Answer is :
board of directors
Module : Module D Chapter : undefined
487. Casual vacancies in the board of directors is filled in by the
board of directors
promoters
underwriters
shareholders
The Correct Answer is :
board of directors
Module : Module D Chapter : undefined
488. authorised person is an individual apointed by RBI to deal in foriehn exchange
True
False
The Correct Answer is :
False Module : Module D Chapter : undefined
489. A current account tranaction alters the assets or liabilities outside india of
person resident in india
Marks: 2+ 0.5True
False
The Correct Answer is :
False Module : Module D Chapter : undefined
490. A capital account transaction includes payment dur in connection with forighn
trade in the ordinary course of business
Marks: 2+ 0.5True
False
The Correct Answer is :
False Module : Module D Chapter : undefined
491. Foreign exchange includes traveller's cheques.
Marks: 2+ 0.5True
False