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1.

A public sector bank of is a body corporate created under special statute

True / False Answer is : True

2. A banking company is registered under the Banking Regulation Act

True / False Answer is : False

3. Cooperative banks are registered under the Cooperative Societies Act

True / False Answer is : True

4. Subsidiaries banks are companies registered under the Companies Act

True/ False Answer is : False

5. Accepting deposits for safe custody would fall within the definition of
‘banking’

True / False Answer is : False

6. Reserve Bank was constituted under _______

A. BR Act/ B. RBI Act / C. Companies Act Answer is : B. RBI Act

7. A Regional Rural Bank is ________________.

A. A body corporate created under a special statute


B. A cooperative society

Answer is : A. A body corporate created under a special statute

8. Banking companies are licensed by _______ .

A. Reserve Bank/ B. Registrar of companies


C. Company Law Boar /d. Sebi/Answer is : B. Registrar of companies

9. Business which a banking company may undertake other than banking is


as stipulated by ______________

A. Reserve Bank / B. BR Act / C. RBI Act)./ Answer is : B. BR Act

10. BR Act was enacted for _________ regulating acceptance of deposits


from public).

A. Regulating banking companies / B. Creating Reserve Bank

Answer is : A. Regulating banking companies


11. Central Government can give direction to the Reserve Bank.

True / False Answer is : True

12. All business of banks are regulated only by the Reserve Bank.

True / False Answer is : False

13. Central Government is the primary regulator of banks.

True / False / Answer is : False

14. The State Government has no control over cooperative banks.

True / False Answer is : False

15. On cancellation of licence of any bank, an appeal lies to Central


Government.

True / False/ Answer is : True

16. Cooperative bank operating in different states are regulated by _______

A.State Cooperative Societies Act/ B.Multi-Unit Cooperative Societies


Act
C.Banking Laws (application to Cooperative Societies Act)

Answer is : B.Multi-Unit Cooperative Societies Act

17. Government can exempt a bank from provision of BR Act ______

A.On the recommendation of RBI/ B.Whenever the government is


satisfied/ C.If requested by a bank/

Answer is : A.On the recommendation of RBI

18. ________ exercises the central banking function in India,

A.State Bank, Central Bank of India


B.Reserve Ban/ Answer is : B.Reserve Bank of India

19. Company matters of a banking company are regulated by ______

A.Reserve Bank / B.Authorities under Companies Act


C.SEBI / Answer is : B.Authorities under Companies Act
20. Trading in shares and securities by banks is subject to control by
______

A.Controller of Capital Issues / B.SEBI


C.Company Law Board / Answer is : B.SEBI

21. Section 5(b) of ______ Act gives the definition of the term ‘Banking’

A.Contract Act,/ B.Negotiable Instruments Act,


C.Banking Regulation Act,/ D.Transfer of Property Act.

Answer is : C.Banking Regulation Act,

22. Principle functions of the Bank are:

A.Dispatch of statements,/ B.Adjustment of Interoffice Transactions,


C.Clearing/ D.Acceptance of deposits for Lending and investment.

Answer is : D.Acceptance of deposits for Lending and investment.

23. In a deposit account the principal relation between Bank and Customer
is bank ___________ and the Customer ________.

A.Agent, Principal / B.Lessor, Lessee


C.Creditor-Debtor / D.Debtor-Creditor
E.Bailor-Bailee / Answer is : D.Debtor-Creditor

24. When a Bank lends money the relation between Bank and Customer is
Bank _____________ and Customer ________.
A.Agent, Principal / B.Lessor, Lessee
C.Creditor-Debtor / D.Debtor-Creditor
E.Bailor-Bailee / Answer is : C.Creditor-Debtor

25. In case of safe custody of articles relation between Bank and Customer
is Bank ___________ and Customer _________.

A.Agent, Principal / B.Lessor, Lessee


C.Creditor-Debtor / D.Debtor-Creditor
E.Bailor-Bailee Answer is : E.Bailor-Bailee

26. In case of safe deposit licker the relation between Bank and Customer is
Bank _______________ and Customer _________.

A.Agent, Principal / B.Lessor, Lessee


C.Creditor-Debtor / D.Debtor-Creditor
E.Bailor-Bailee Answer is : B.Lessor, Lessee
27. An individual can start a bank.

True / False Answer is : False

28. A banking company should have the word ‘Banking’ in its name

True / False Answer is : True

29. A company engaged in manufacture of furniture can use the word ‘Bank’
in its name.

True / False / Answer is : False

30. Ledger keeper is authorised to disclose the balance of the account of the
customer to a stranger.

True / False Answer is : False

31. Line is a/an ________ of the creditor to retain possession.

A.Obligation / B.Right
C.Interest / D.Protection / Answer is : B.Right

32. Where as general lien gives right to retain goods, Banker’s lien has
_________ in case of default.

A.right to create charge/ B.right to create mortgage


C.right to sell. / Answer is : C.right to sell.

33. General lien gives the creditor right to retain ________ which have
come in his possession.

A.all goods / B.some goods


C.specific goods / Answer is : A.all goods

34. Particular lien gives the creditor right to retain ________ in case the
expenses incurred are not paid. A.all goods / B.some goods
C.specific goods / Answer is : C.specific goods

35. Banker’s lien is a/an _________.

A.hypothecation / B.mortgage
C.implied pledge / D.pledge

Answer is : C.implied pledge

36. In case of __________ goods, Banker’s lien is not applicable.

A.owner’s goods / B.stolen goods


C.finished goods / Answer is : B.stolen goods
37. The right to _______ two accounts is known as set-off.

A.Open / B.Banker’s right C.Combine Answer is : C.Combine

38. Right of set-off is not discretionary right with the bank. .

True / False / Answer is : False

39. With the death of a partner of a partner of a firm having a cash credit
account the account of the firm can continued as thitherto.

True / False / Answer is : False

40. Transfer of funds from the partnership account to the credit of the
account of a partner to set-off a debit balance, is in order.

True/ False/ Answer is : False

41. The right of set-off is __________.

A.Customer’s right B.Banker’s right C.Banker’s obligation


D.Bank’s descrition. Answer is : D.Bank’s descrition.

42. Garnishee order is issued by _______.

A.Police officer / B.Revenue authority


C.Inforcement authority / D.Court of Law Answer is : D.Court of Law

43. Attachment order is issued by __________.


A.Drawer of a cheque / B.Revenue authority
C.Manager of bank / Answer is : B.Revenue authority

44. Mandate is _________ .

A.Signed letter to the Bank / B.Order of the court of law


C.Memorandum of understanding / D.Unstamped letter to the Bank

Answer is : D.Unstamped letter to the Bank

45. Power of attorney is _________.

A.Signed letter to the Bank / B.A promissory note


C.Garnishee order / D.Stamped documents.

Answer is : D.Stamped documents.


46. Person to whom a power of attorney is given is called _________ and
the person who gives the Power of attorney is called _________.

A.Debtor-Creditor / B.Bailor-Bailee
C.Agent, Principal (donor, donee) / Answer is : C.Agent, Principal
(donor, donee)

47. A letter of mandate is generally issued for a short or temporary period.

True/ False Answer is : True

48. Mandates are accepted from limited companies and cooperative


societies.

True / False Answer is : False

49. Special power of attorney gives extensive powers to the agent to


perform many acts. .

True / False Answer is : False

50. Garnieshee order is issued by the revenue authorities. .

True / False / Answer is : False

51. Attachment order is issued by the Court of Law.

True / False / Answer is : False

52. Promissory Notes, Bills of Exchange and cheque are together defined
as____________

A.Negotiable instruments / B.Transferred instruments


C.Trust Receipts / D.Documents of Title to goods. Answer is :
A.Negotiable instruments

53. N.I.are easily ________

A.transferable / B.gifted / C.sold / Answer is : A.transferable

54. a cheque is drawn on a __________

A.owner of ship / B.an agent of a principal


C.bank Answer is : C.bank

55. a cheque is payable on a _________

A.demand / B.after certain days


C.on a fixed future date. / Answer is : A.demand
56. Two parallel transverse lines across the cheque is called _________

A.endorsement / B.transfer
C.assignment / D.crossing Answer is : D.crossing

57. Crossing is a direction to the ________ bank to pay the cheque to the
payee through a bank.

A.drawer / B.payee / C.paying / D.collecting

Answer is : C.paying

58. When a cheque is drawn on a bank is called the __________.

A.drawer / B.endorser / C.acceptor / D.drawee

Answer is : D.drawee

59. The crossing in a crossed cheque can be cancelled by ________.

A.drawer/ B.endorser/ C.acceptor/ D.drawee

Answer is : A.drawer

60. Acts done honestly is called acts done.

A.without negligence/ B.rashly/ C.mollified


D.in good faith / Answer is : D.in good faith

61. Mere signature of the payee on the reverse of the instrument is called
________ endorsement

A.full / B.blank/ C.conditional/ D.restrictive

Answer is : B.blank

62. ‘Sans recourse’ means _______.

A.I am not afraid / B.Do not touch me / C.ask the drawer


D.without liability to me / Answer is : D.without liability to me

63. A cheque is a Bill of Exchange.

True / False / Answer is : True

64. Drawee of a cheque is not a banker. .

True / False / Answer is : False


65. A promissory note can be crossed.

True / False / Answer is : False

66. A cheque needs acceptance.

True / False / Answer is : False

67. A holder-in-due accepts N.I. for consideration.

True / False / Answer is : True

68. Crossing of a cheque can be done by the drawer only.

True / False / Answer is : False

69. Transferee of a negotiable instrument will not get a better title


transferor.

True/ False/ Answer is : False

70. A cheque can be issued payable after 3 month from the date of its
issuance.

True / False / Answer is : False

71. A banker on whom a cheque is drawn by customer is ___________.

A.Collecting banker / B.Paying banker/ C.Advising banker


D.Confirming banking. / Answer is : B.Paying banker

72. A banker who collects a cheque for and on behalf of his customer is
__________.

A.Collecting banker/ B.Paying banker/ C.Advising banker


D.Confirming banking./ Answer is : A.Collecting banker

73. Section 131 of N.I. Acts extends protection to the __________.

A.Collecting banker / B.Paying banker / C.Advising banker


D.Confirming banking./ Answer is : A.Collecting banker

74. Section 85 of N.I. Acts extends protection to the __________.

A.Collecting banker / B.Paying banker / C.Advising banker


D.Confirming banking. / Answer is : B.Paying banker

75. When a banker makes payment of a cheque after banking hour he will
be held __________.
A.liable/ B.reasonable / C.acceptable / Answer is : A.liable

76. One of the condition to honour the cheque by the paying banker is that
amount in words and figures should ____________.

A.differ / B.tally / C.be clear/ Answer is : B.tally

77. Where a customer by a letter has advised the bank directing the banker
not to honour / pay a particular cheque such a letter is called _________.

A.letter of authority/ B.letter of credit/ C.stop paymentletter/

D.letter of continuity./ Answer is : C.stop payment letter

78. Where a customer has issued a cheque date of which is yet to come,
such a cheque is called ____.

A.stale cheque / B.post-dated cheque/ C.crossed cheque


D.stolen cheque/ Answer is : B.post-dated cheque

79. When a bank pays a cheque according to the apparent tenor, in good
faith and without having reason to doubt the bonafide of the presendor,
such payment is ___________.

A.wrong payment / B.late payment/ C.future payment


D.payment in due course/ Answer is : D.payment in due course

80. To get the protection under S / 131, a collecting bank has to collect a
______for credit of is customer

A.stolen cheque / B.stale cheque/ C.postdated cheque


D.crossed cheque / Answer is : D.crossed cheque

81. Payment of cheque must be made by the banker within banking hours.

True / False / Answer is : True

82. Payment of a postdated cheque by a banker is in order.

True / False / Answer is : False

83. A bearer cheque is always payable to bearer.

True / False/ Answer is : True

84. Payment of a cheque at a branch other than the branch where it is


payable, is in order.

True / False / Answer is : False


85. Stopped payment cheques should be paid by the banker.

True / False / Answer is : False

86. If a cheque is stolen in transit and presented at the drawee bank by a


holder in due course case and if the cheques is paid by the bank in due
course in a case the drawee bank would be _______.

A.be held liable / B.would not be held liable


C.would be found guilty/ Answer is : B.would not be held liable

87. where the signature of the drawer of a cheque is not genuine, such a
cheque is called _________.

A.post-dated cheque / B.forged cheque


C.clearing cheque / D.stale cheque/ Answer is : B.forged cheque

88. a forged cheque is a valid cheque.

True / False / Answer is : False

89. true owner of a cheque will be entitled for payment even when the
cheque has been lost and it has reached the hands of holder in due course.

True / False / Answer is : False

90. where a person has lost an article and if the article comes in procession
of a bonafide purchaser, the bonafide purchaser will not be entitled to the
article.

True / False / Answer is : True

91. Section 138 states that drawer of a cheque is liable to be punished if the
cheque is bounced for ___________.

A.not crossing / B.alteration in figures/ C.being postdated


D.insufficient fund Answer is : D.insufficient fund

92. when a drawer draws a cheque without keeping sufficient balance and if
the cheque is dishonoured for insufficient funds, the drawer is punishable
with and imprisonment which may extend to ________ and or a fine.

A.two months / B.four month / C.one year Answer is : C.one year

93. Demand deposits are those which can be withdrawn __________.

A.on demand / B.at any future date / C.after one year


D.after 5 years/ Answer is : A.on demand
94. Current deposits are not entitled to ________.

A.Cheque book/ B.Statements / C.Customer service


D.interest./ Answer is : D.interest.

95. In savings deposits interest is paid on _______ balance in the a/c


between 10th to last working day of the month

A.maximum / B.average/ C.minimum/


D.last balance/ Answer is : C.minimum

96. Introduction in all deposits accounts is _________

A.optional/ B.compulsory/ C.discretion of the bank

Answer is : B.compulsory

97. A minor below age of 7 can open an account independently.

True/ False/ Answer is : False

98. When a customer dies contractual relationship between the bank and
the customer is terminated.

True/ False/ Answer is : True

99. A Will need not be probated by a court.


True/ False/ Answer is : False

100. If a customer tenders a cheque for payment when he is drunk bank


should not have witness at the time of signing and the payment.

True / False/ Answer is : False

101. A partner has no implied authority to admit the liability in any suit
client filed against the firm.

True / False / Answer is : True

102. Public limited company should have a minimum of at least ________


members.

A.50 / B.15 / C.7/ D.without limit./ Answer is : C.7

103. Government companies are companies where the government holds at


least ________ % share of the company.

A.80/ B.50/ C.75/ D.51 / Answer is : D.51


104. Section ______ of the company Act details the borrowing limits of the
company.

A.85(A)/ B.31/ C.293(1)/ D.5(b)/ Answer is : C.293(1)

105. The Trustees _________ delegate their powers.

A.can/ B.can not/ Answer is : B.can not

106. Execution of a will is entrusted to __________

A.Administrator/ B.holding of power of attorney


C.Executor/ D.holder in due close. Answer is : C.Executor

107. Administrator is a person appointed by __________ to look after the


property under letter of Administrator.

A.the government/ B.the Court


C.the bank/ D.RBI/ Answer is : B.the Court

108. __________ is a person appointed by the Court to wind up the


company.

A.Administrator/ B.Executor
C.Registrar/ D.liqudator/ Answer is : D.liqudator

109. the person appointed by the court to look after the property under
letter of administrator is executor
True/ False/ Answer is : False

110. the person who is entrusted with the work of execution of the will is
called executor.

True/ False/ Answer is : True

111. Trustees cannot delegate their powers.

True/ False/ Answer is : True

112. No loans should be granted to clubs and associations

True/ False/ Answer is : True

113. 293 (i)(d) of company Act stipulates the borrowing limit of a limited
company.

True/ False/ Answer is : True

114. Memorandum of Association stipulates internal rules of a company

True/ False/ Answer is : False


115. Article of Association lays down objects of the company.

True/ False / Answer is : True

116. NRNR & FCNR (B) accounts can be kept in the from of _________
deposits

A.Term Deposits/ B.Current Deposits/ C.Saving Deposits


D.Recurring Deposits/ Answer is : A.Term Deposits

117. Accounts jointly with residents can be opened in the case of


__________ accounts.

A.FCNR (B) and NRE/B.NRO and NRNR/ Answer is : B.NRO and NRNR

118. Accounts jointly with residents cannot be opened in the case of


__________ accounts.

A.FCNR (B) and NRE/B.NRO and NRNR/ Answer is : A.FCNR (B) and NRE

119. The term Non-resident Indian means an individual being a citizen of


India or a person of Indian origin outside India.

True/ False/ Answer is : True

120. FCNR (B) account can be kept in the Current, Saving and Recurring
Deposits.

True / False / Answer is : False

121. Rate of interest payable on NRO, NRE and FCNR Deposits are left to the
discretion of Banks.

True / False/ Answer is : False

122. The banker should not ________ the account of his customer unless
there is justifiable reason for the closure.
A.close / B.open / C.transfer/ Answer is : A.close

123. Passbook is a _______ of transactions between the customer and the


bank.

A.basis/ B.source/ C.record/ D.root/ Answer is : C.record

124. When account is following is closed by the bank, proper________


should be given to the customer

A.thanks letter/ B.guarantee/ C.notice/D.demand/ Answer is : C.notice


125. Passbook is a copy of the customer’s account.

True/ False/ Answer is : True

126. When a banker closes the account of the customer he is not required to
send any notice.

True/ False Answer is : False

127. When a banker of a partnership account who has got an account with
the bank, dies the bank should close the account.

True/ False/ Answer is : True

128. When banker receives intimation of death of the customer, account is


allowed to continue.

True/ False/ Answer is : False

129. The present CRR and SLR requirements are ________ , respectively.

A.20% and 40%/ B.3% and 25% / C.5% and 30%

Answer is : B.3% and 25%

130. Present minimum capital adequacy ratio is 9% of

A.Total liabilities/ B.Total assets/ C.Total risk weighted assets

Answer is : C.Total risk weighted assets

131. New Prudential Accounting Norms cover

A.interest rates/ B.Method of lending/ C.Deposits


D.Capital adequacy, income recognition, Assets classification and
Provisioning

Answer is : D.Capital adequacy, income recognition, Assets classification


and Provisioning

132. A borrowal account is designated as non performing asset when the


interest and/or instalment remains unpaid for

A.1 quarter/ B.2 quarters/ C.3 quarters/ D.4 quarters

Answer is : B.2 quarters


133. RBI ensures that banks operate within set norms by conducting
_________ inspections and _________ monitoring.

A.on-site, off-site/ B.field, commodity prices/ C.stock, stock market

Answer is : A.on-site, off-site

134. On-site inspection is followed by

A.supervisory letter/ B.renewal of licence/ C.fresh audit

Answer is : A.supervisory letter

135. Quarterly on-site visits are undertaken in respect of

A.all banks/ B.urban co-operative banks/ C.newly licensed banks


during first year

Answer is : C.newly licensed banks during first year

136. Frequency of First Tranche Returns is

A.monthly/ B.monthly / quarterly


C.monthly / quarterly / half-yearly

Answer is : C.monthly / quarterly / half-yearly

137. Second Tranche of OSMOS returns cover

A.asset quality/ B.liquidity and interest rate exposures


C.ownership pattern of deposits/

Answer is : B.liquidity and interest rate exposures

138. Under Section 37 of the Banking Regulation Act, a moratorium order


can be issued by the High Court for a maximum total period of

A.one month/ B.six month/ C.one year/ Answer is : B.six month


139. When a banking company is placed under moratorium under Section 45
of B.R.Act, the RBI must prepare a scheme

A.VRS for staff/ B.capital buy back


C.reconstruction of the company or amalgamation with any other bank

Answer is : C.reconstruction of the company or amalgamation with any


other bank

140. An order for winding up a banking company can be issued by

A.the High Court/ B.the RBI/ C.the Central Government

Answer is : A.the High Court

141. Principal function of banks are :

A.accepting deposits/ B.lending and investing


C.non fund business and remittance services
D.all of above/ Answer is : D.all of above

142. In deposits accounts the main relationship between bank and customer
is:

A.creditor – bank, debtor – customer


B.debtor – bank, creditor – customer
C.agent – principal/ D.servant - owner
E.only a and b / Answer is : B.debtor – bank, creditor – customer

143. When a bank lends money to the corporate person the relationship
is:

A.borrower and lender/ B.creditor – debtor


C.debtor – creditor/ D.customer and client

Answer is : B.creditor – debtor

144. Bailor – bailee relationship is applicable in:

A.cash deposited with cashier by customer


B.safe deposits locker
C.demand draft issued by bank
D.keeping articles in safe custody with bank
E.none of above

Answer is : D.keeping articles in safe custody with bank


145. what relationship is created when the bank collects a cheque in
clearing.

A.holder for value


B.clearing member and principle.
C.agent and principle
D.collecting bank and holder
E.none of above

Answer is : D.collecting bank and holder

146. when any FDR is lost by a customer of a bank, what document is


executed:

A.guarantee bond/ B.government bond


C.promissory bond/ D.indemnity bond
E.none / Answer is : D.indemnity bond

147. A credit voucher for Rs.44,444 favouring Tarun was wrongly posted to
Varun Bose by the bank, the relationship established with Varun Bose is of:

A.trustee and beneficiary/ B.debtor and guarantor


C.creditor and indemnifier / D.creditor and debtor
E.none

Answer is : D.creditor and debtor

148. Mr nanhe has a bank account and credited RS 20 lakh in it


subsequently he has arrested on charges of fraud. the police informed the
bank for not allowing withdrawals from his account. Two days later, bank
receives a cheque of RS 15000 favoring Nehas creditor. What should the
bank do

A.not to pay cheque


B.return cheque with memo stating A/c holder in jail
C.honour the cheque
D.get police orders for payment
E.get court orders for payment

Answer is : C.honour the cheque


149. Account holder X draws a cheque for Rs.5,000 favouring Rajesh (a
minor aged 13 years) or dearer. Rajesh presents the cheque on counter duly
signed on the back. What should the banker do with the Cheque of a minor?

A.refuse, since no contractual capacity


B.pay the cheque after inquiring with X
C.pay to Rajesh without any responsibility of bank
D.ask Rajesh to bring his parents
ESection 26 N.I. Act 1881, does not allow minor to receive payment.

Answer is : C.pay to Rajesh without any responsibility of bank

150. Cheque drawn for Rajkumar or order is stolen. The thief made
endorsement as Rajkumar on the cheque in his favour. The cheque is
presented in clearing and paid by bank. True owner later on sent legal
notice to bank. What is the liability of the bank?

A.the paying bank will get protection under N.I. Act


B.forgery does not give any rights to bank, hence liable
C.under section 85, the paying bank is liable
D.under section 131, the paying bank is liable.

Answer is : A.the paying bank will get protection under N.I. Act

151. After close of business hours by 1.30 hrs, the account holder himself
availed payment. At 4.15 p.m. (after close of 1.45 hrs) income tax
attachment order is received by bank. What would be the liability of paying
bank?

A.payment is made in due course and as payment is debitable next day,


bank is protected
B.payment is not in due course since paid after reasonable time ( i. e.
1.30 hrs late for today)
C.attachment order will be effective after bank’s right of lien over the late
payment
D.bank should approach the customer to get the order changed to next
day.

Answer is : B.payment is not in due course since paid after reasonable


time ( i. e. 1.30 hrs late for today)
152. Ritesh issued a cheque at 3:30 p.m. (one hour after close of business
hours of the bank) to Shubha approached to the bank and on request paid
the money at 4:00 p.m. as late payment; Ritesh arrived to the bank and
stopped payment of cheque issued to shubha at 4:30 p.m. on the same day.
Who is liable for loss?

A.(a) payment after Business Hours is not a payment in due Course hence
bank is liable, Section 10 N.I. Act
B.Payment even though after business hours but within banking hours is
protected under Section 31
C.Payment late for today is protected under Section 85
D.Refused to accept stop payment instructions since late for today.

Answer is : A.(a) payment after Business Hours is not a payment in due


Course hence bank is liable, Section 10 N.I. Act

153. Section 131 of N.I. Acts gives protection for collection of

A.Bills of Exchange/ B.Promissory Note/ C.Hundis


D.Cheque/ E.All the above / Answer is : D.Cheque

154. Rajkumar wants a demand draft striking the word ‘Order’ and writing
the word ‘Bearer’. Can bank help him ?
A.Bearer Draft is unlawful under section 31 of RBI/ B.Bearer Draft can
be issued like a cheque/ C.Signature of the payee should be attested on
the back of draft by the issuing branch/ D.Attestation of the signature of
the payee on a separate slip of paper by bank (without striking out the word
‘Order’ on draft) Answer is : D.Attestation of the signature of the payee on
a separate slip of paper by bank (without striking out the word ‘Order’ on
draft)

155. A draft purchased is reported lost and the purchaser wants to stop
the payment of the draft. Can the Bank do it?

A.Bank cannot stop payment since it is a promissory note


B.Bank can stop payment since covered under negotiable instrument.
C.Bank can ask the purchaser to suffer for negligence and bank cannot
help
D.Bank would issue stop payment instructions only after two weeks from
date of issue.

Answer is : A.Bank cannot stop payment since it is a promissory note


156. Discuss the essential conditions for right of set off to the bank.

A.Money transactions
B.Both the accounts in the same name and rights
C.implied agreement to keep the accounts distinct and separate.
D.All of the above
E.None of the above

Answer is : D.All of the above

157. Objectives of KYC

A.to ensure appropriate customer identification


B.to monitor transactions of suspicious nature
C.to ensure that he / she would not deceive the bank.
D.if loan given it would not be a NPA
E.only (a) & (b)

Answer is : E.only (a) & (b)

158. Sources of credit informations

A.information’s on visit to business premises


B.On interview with borrower and from documents submitted
C.Information’s on visit to business premises
D.All of above
E.Only (b) & (c) Answer is : D.All of above

159. What qualitative information are available from loan proposals?

A.Personal history of achievements health and interpersonal relationship


with family
B.professional skills and qualifications, details of heirs and successors.
C.Track record business reputation , behaviour patterns for managerial
skill and bearing capacity
D.All of above
E.Only (c) Answer is : D.All of above

160. Quantitative informations available from loan proposal are:

A.personal assets and liabilities of the borrower


B.details of expenses / and resources for meeting the margin
C.only (a) & (b)
D.None of above Answer is : C.only (a) & (b)
161. Demand Deposits are those which can be withdrawn:

A.On Request
B.On Sanction by Manager
C.On Demand
D.On Persuasion Answer is : C.On Demand

162. Current accounts Deposits are not entitled to_________

A.Cheque book above 100 to leaves


B.Monthly Statements
C.Cash Payment
D.Interest
E.All of the above Answer is : D.Interest

163. in saving account deposits interest is paid on ________ balance in the


account between 10th to last day of month.

A.Maximum
B.Average
C.Minimum
D.Last Balance at the end of month Answer is : C.Minimum

164. Merchant bankers are:

A.Financial Brokers
B.Financial intermediaries
C.Credit Appraisers
D.Underwriters
E.All of the above

Answer is : B.Financial intermediaries

165. Merchant bankers’ activity relate to:

A.Equity and equity related finance


B.Debt and Debt related finance
C.Fund Business
D.Non-Fund business
E.None of the above

Answer is : A.Equity and equity related finance

166. Advantages of Lease Financing

A.Alternative use of funds


B.Arrangement for faster and cheaper credit
C.Increased capacity to borrow Lessee
D.Trading on Tax Shield
E.All of above Answer is : E.All of above
167. Disadvantage of Leasing

A.Deprivation of asset ownership


B.Deprivation of asset in case of default
C.Attachment on owner going insovent
D.None of the above
E.All of a to c Answer is : D.None of the above

168. Advantage of Factoring service to customers

A.Responsibility of collecting sales dues


B.Absolve of sales ledger administration
C.Absolve from Bad debts
D.Quicker payments by clients
E.All of above Answer is : E.All of above

169. Limitation of Factoring

A.Over trading
B.Manipulation in invoices
C.Not suitable to SMEs
D.Companies with few Debtors
E.All of the above Answer is : E.All of the above

170. Advantages of Factoring as a financial tool / facility

A.Flexible finance through up-front payment


B.Obtaining off-balance sheet finance
C.Payment to suppliers more promptly for higher credit reputation
D.All of the above
E.None of the above Answer is : D.All of the above

171. Disadvantages to Credit Card holders

A.Over Spending Debt Trap


B.Frauds due to loss or theft of cards
C.Forged signatures
D.Forged Charge slips
E.All of above Answer is : D.Forged Charge slips

172. Line is a/an _______ of the creditor to retain possession.

A.right/ B.obligation
C.instrument/ D.interest Answer is : A.right

173. Particular Lien gives the creditor right to retain ______ increase the
expenses incurred are not last

A.all goods/ B.ordered goods/ C.some goods / securities/ D.specific


goods / securities/ Answer is : D.specific goods / securities
174. Banker’s Lien is an / a _______

A.bailment of goods/ B.implied pledge


C.agreement/ D.an stoppage Answer is : B.implied pledge

175. Banker’s Lien is not applicable in case of ____________

A.Safe Custody/ B.Securities left negligently


C.All of above/ D.none/ Answer is : C.All of above

176. Right to combine two accounts by banks is called __________

A.Garnishee/ B.Lien/ C.Set-off/ D.Rating

Answer is : C.Set-off

177. The right of set-off is __________

A.Customer’s right / B.Banker’s right


C.Bank’s discretion/ D.Payee’s right

Answer is : C.Bank’s discretion

178. Garnishee order is issued by __________

A.Police Officer/ B.Revenue Officer


C.C.I.D./ D.Courts of Law/ Answer is : D.Courts of Law

179. Attachment order is issued by __________

A.Income Tax Officer/ B.Sales Tax Officer


C.(i) and (ii) combined/ D.Public Debt Officer

Answer is : C.(i) and (ii) combined

180. Mandate is a ________ agreement.

A.Stamped/ B.Unstamped
C.Memorandum/ D.Letter/ Answer is : B.Unstamped

181. Power of attorney can be _______.

A.Universal/ B.Limited
C.both (i) & (ii)/ D.Calculated/ Answer is : C.both (i) & (ii)

182. Person to whom a power of attorney is given is called ________ And


who gives it is called _______

A.Debtor-Creditor/ B.Baior-Bailee/ C.Pawner-Pawnee


D.Donor-Donee/ Answer is : D.Donor-Donee
183. Payment in due course means

A.Payment on due date


B.Payment in accordance with apparent tenor
C.Payment in accordance with apparent signature and specimen
D.Payment due to sufficient funds.

Answer is : B.Payment in accordance with apparent tenor

184. Payment of cheques are governed by sections under N.I.Act

A.Section 10/31/85/126
B.Section 15/16/17/131
C.Section 131/138/147/142
D.None of these
E.All of (i) to (iv)

Answer is : A.Section 10/31/85/126

185. The liability of drawee of cheque is

A.Sufficient funds
B.Property applicable for payment
C.Required to do so without default
D.All of above
E.None

Answer is : D.All of above

186. Duties of paying banker of crossed cheques are

A.Crossed cheques
B.Collection on behalf of customers
C.Payment in good faith and without negligence
D.None of above

Answer is : C.Payment in good faith and without negligence

187. Promissory Notes / Bill of Exchange and Cheque are defined as


___________

A.Trust Receipts
B.Judicial documents
C.Negotiable instruments
D.documents of title to goods

Answer is : C.Negotiable instruments


188. Cheque is payable on _______

A.Demand/ B.Usance
C.Fixed future date/ D.After Sight

Answer is : A.Demand

189. Crossing is a direction to the _______ bank to pay the cheque to the
payee through a bank.

A.Drawer/ B.Payee
C.Paying/ D.Passing
E.Collecting / Answer is : C.Paying

190. The crossing in a crossed cheque can be cancelled by _______

A.Drawer/ B.Drawee
C.Endorser./ D.Acceptor
E.Bank / Answer is : A.Drawer

191. Acts done honestly is called acts done ______

A.Without negligence/ B.Rashly


C.Mollified/ D.In good faith
Answer is : D.In good faith

192. Mere signature of the payee on the reserve of the instrument is called
________ endorsement.

A.Full/ B.Partia/ C.Conditional/ D.Restrictive


E.Blank / Answer is : E.Blank

193. Sans recourse means _________.

A.Without fear/ B.Without physical touch


C.Without liability to me/ D.Without liability to payee

Answer is : C.Without liability to me

194. A bank on whom a cheque is drawn by the customer is _______

A.Collecting bank/ B.Paying bank


C.Advising bank/ D.Issuing bank
E.Confirming / Answer is : Paying Bank

195. Section 131 of N.I. Act extends protection to the ________

A.Collecting bank / B.Paying bank/ C.Drawee bank


D.Negotiating bank/ Answer is : A.Collecting bank
196. Where a customer, by a letter has advised the bank directing the
banker not to honour / pay particular cheque such letter is called ________

A.Letter of credit/ B.Stop-payment letter


C.Mandate/ D.Garnishee letter
E.Official letter/ Answer is : B.Stop-payment letter

197. Forged Cheque is __________ cheque.

A.Valid/ B.InValid/ C.Post-dated/ D.Stale cheque


E.(v) Anti-dated / Answer is : B.InValid

198. Introduction in opening accounts is

A.Optional / B.Compulsory
C.Discretionary/ D.Waived from year 2003.

Answer is : B.Compulsory

199. Minor with self-operation can open account if he / she is above

A.6 year/ B.13 year/ C.15 year/ D.17 year

Answer is : B.13 year

200. Public Ltd. Company should have minimum shareholders, before


opening bank account:

A.50/ B.20/ C.10/ D.7/ E.no limit

Answer is : D.7

201. Government companies are those companies where the government


holds at least_________.

A.51%/ B.26%/ C.100%/ D.No Requirement./ Answer is : A.51%

202. Delegation of power under Trust is _________.

A.Possible/ B.Not possible/ C.Beneficiary’s permission


D.Charity commissioner’s permission/ Answer is : B.Not possible
203. Which document stipulates internal rules of company _________ ?

A.Memorandum/ B.Resolution
C.Articles/ D.Declaration
E.Companies Act, 1956 Answer is : C.Articles

204. Minor’s account can be opened in the guardianship of __________.

A.Mother and Father/ B.Mother or Father


C.Grandmother/ D.Elder brother./ Answer is : B.Mother or Father

205. Two or more minors desire to open bank a/c in your bank, whether
they can open

A.Either or Survivor/ B.Jointly C.Only two can join


D.Cannot open/ Answer is : D.Cannot open

206. Who is considered natural guardians for minor’s ________?

A.Mother and Father/ B.Stepmother and Father


C.Stepfather and Stepmother/ D.All of above

Answer is : A.Mother and Father

207. Who shall be nature guardian in case of married minor girl?

A.Father/ B.Mother/ C.Father-in-law/ D.Mother-in-law


E.Husband. Answer is : E.Husband.

208. Sanjay, a minor aged 11 years, desire to open bank’s Saving Account.
His mother is illiterate and his father has become sanyasi. He has got both
grand parents. Who will be his natural guardian?

A.Father/ B.Mother/ C.Grandfather/ D.Guardian appointed by court


E.Sanjay himself can oprate. Answer is : B.Mother

209. In a limited co. certificate of incorporation was obtained through


memorandum which was signed by two persons for all the 7 signatories The
signatures were forged. Will the bank accept memo as genuine for opening
bank a/c?

A.Yes/ B.No
C.Yes because incorporation certificate is valid
D.No because forged documents can not be accepted
E.Bank will ask its H.O. / Answer is : C.Yes because incorporation
certificate is valid
210. There should be two persons to open a partnership account in a bank
which is correct?

A.X aged 25 years Y aged 17 Years


B.X aged 25 years Y aged 21 years
C.X aged 17 years and Y aged 16 years
D.Ku. Shubha aged 30 years and Ku. Rachna aged 16 years ( daughter of
Ku. Shubha)
E.X aged 71 years Y aged 57 Years but lunatic

Answer is : B.X aged 25 years Y aged 21 years

211. HUF account is to be opened in a bank where three major person are
there
Shrikumar-Father
Mrs. Ramawati-Shivkumar’s Mother
Sharat kumar-Son
Who can become Karta of HUF?

A.Shivkumar / B.Sharat Kumar


C.Mrs. Ramawati/ D.Both Shivkumar and Ramawati
E.Both Shivkumar and Sharat Kumar

Answer is : A.Shrikumar

212. One of the directors of a Ltd. Co. expired and cheques signed by him
are presented for payments should the bank pay those cheques?

A.Cannot pay
B.Company on other directors confirmation
C.Can pay as a routine
D.Payments be stopped by co.

Answer is : C.Can pay as a routine

213. X a partner in the firm XYZ Co. wants to open a bank account in the
firm’s name. Does it require signatures of

A.All partners// B.Any one / C.Managing partner only


D.Sleeping partner not required/ Answer is : A.All partners

214. Securitisation is the process of acquisition of loans classified as

A.Bad debts/ B.Performing debts/ C.Non-performing Debt


D.Book debts/ Answer is : C.Non-performing Debt
215. Authorised officer means

A.Chief manager in PSB/ B.Chief manager in NABARD


C.Chief manager in a foreign bank/ D. manager or equivalent in LIC

Answer is : A.Chief manager in PSB

216. Bonds or debentures issued by Securitisation company should bear


interest not less than

A.Bank rate / B.PLR/ C.1.5% over bank rate


D.1.5% over saving rate/ Answer is : C.1.5% over bank rate

217. By which act, any security interest created in favour of secured


creditor without intervention of courts

A.Transfer of Property Act/ B.RDDB & FI Act, 1993


C.SRFA &ESI Act, 2002/ D.Reserve Bank of India Act, 1934

Answer is : C.SRFA &ESI Act, 2002

218. Secured creditor is liable for penalties for default under

A.SRFA &ESI Act, 2002


B.Companies Act Section 142
C.Recovery of Debts Due Act, 1993
D.Negotiable Instrument act, 1881

Answer is : A.SRFA &ESI Act, 2002

219. Recovery of loans and advances are possible under SREA &ESI Act,
2002 by

A.Court/ B.DRT
C.Summary trial by Banks or FISettlement
D.Settlement/ Answer is : C.Summary trial by Banks or FISettlement

220. Securitisation is the process of

A.Purchasing or acquiring
B.Selling and administering
C.Security documenting acquisitioning
D.Providing security to NPA

Answer is : A.Purchasing or acquiring


221. Qualified institutional buyer means

A.Institution having paid up capital of Rs 10 crore


B.Broker firm or company eligible to qualify
C.Securitisation company
D.Financial institution, bank insurance co. SFC

Answer is : D.Financial institution, bank insurance co. SFC

222. Bancassurance is nothing but

A.Assurance by the bank that it will not fail.


B.Insurance of entire deposits at banks by insurance company.
C.A packaged financial service offering both banking and insurance
products to customers to meet both insurance and banking needs

Answer is : C.A packaged financial service offering both banking and


insurance products to customers to meet both insurance and banking needs

223. Advantage to banks under Bancassurance

A.Increased return of fee income from assets


B.Protection of personal life of borrowers to save loans from becoming
NPA
C.Marketing and processing capabilities are available extensively.
D.Only (b) and (c)
E.Only (a) and (c)

Answer is : E.Only (a) and (c)

224. What are the challenges before banks under Bancassurance

A.Extensive training to entire staff at a heavy cost.


B.Development of IT system even in un-profitable
C.Performance recognition and payment on incentives to employees for
insurance business
D.Motivate staff to sell insurance products.
E.All of the above / Answer is : E.All of the above

225. Describe problems and different nature in compensation to


employees

A.Cultural conflict and different nature in compensation to employees.


B.Non achieving of targets and no convergence at branch level.
C.Reluctance to one-stop service
D.Possible source of conflict with existing customers
E.All of the above / Answer is : E.All of the above
226. What you feel could be future of Bancassurance

A.Bank and insurance have strong similarities with bright future


B.Cost of providing services to would reduce, resulting cheap insurance
products
C.Wider range of services to client of banks
D.Better consumer protection under Consumer Protection Act
E.All of above / Answer is : E.All of above

227. Mutual funds are

A.Financial brokers/ B.Financial intermediaries


C.Financial institutions for depositors
D.Financial consultants

Answer is : B.Financial intermediaries

228. Out of about 36 mutual funds in India, the major player is

A.Birla mutual fund


B.IDBI mutual fund
C.Tata mutual funds
D.Unit trust if India mutual fund

Answer is : D.Unit trust if India mutual fund

229. Mutual funds offer advantage of

A.Adequate protection from state agencies


B.Easy liquidity of listed schemes
C.Unlisted open-ended Schemes can be sold back
D.All of (a) to (c)/ Answer is : D.All of (a) to (c)

230. Mutual funds are able to provide higher rate of return to the investors
as

A.Doing speculative business in share market


B.Operating costs as percentage of net assets is very low, i.e. 1.26%
C.All of above
D.None of above

Answer is : C.All of above


231. Which is the most profitable [in terms of net assets] mutual fund in
India sponsored by banks

A.ICICI + SBI + CANBANK


B.BOI + HDFC +Kotak
C.BOB + IDBI + Indbank +PNB
D.All (a) to (c)

Answer is : A.ICICI + SBI + CANBANK

232. In E-banking customers need not visit the bank, to meet cash
requirements of self through

A.Electronic funds transfer


B.Tele-banking
C.On-line banking
D.Automatic Teller Machine
E.None

Answer is : D.Automatic Teller Machine

233. Tele-banking service function is available with bank computers, based


on

A.Virtual/ B.Voice processing/ C.Brick and Mortar processing


D.All of above/ E.None / Answer is : B.Voice processing

234. In E-commerce the purchaser shift his / her purchasing from a physical
store to

A.Virtual store on Internet/ B.Virtual banking on Internet


C.E-money/ D.Master Card
E.B2B / Answer is : A.Virtual store on Internet

235. what goods and services can be marketed through e-commerce?

A.Real products
B.Selling of information
C.Advertising
D.Entertainment
E.All of above / Answer is : A.Real products

236. Write benefits to consumers of E-commerce

A.Special tailored information


B.Multimedia presentation
C.Ability to place orders easily
D.Rediffmail online services for payment
E.All of above / Answer is : E.All of above
237. Benefits of e-banking to consumers

A.Anywhere banking
B.Anytime banking
C.Lowers the risk with cash
D.Reduction in cost
E.All of above / Answer is : E.All of above

238. Home banking services means and includes

A.Cash transactions
B.Non-cash transactions
C.Both Cash and non-cash
D.None/ Answer is : C.Both Cash and non-cash

239. The maximum loan that can be granted to a private retail trader
dealing in non-essential commodities is

A.1 lakh/ B.2 lakh


C.3 lakh/ D.5 lakh/ Answer is : B.2 lakh

240. Motor vehicle can be financed to the following professionals under


Priority Sector

A.Architect/ B.Engineer
C.Medical Practitioner/ D.none of these

Answer is : C.Medical Practitioner

241. Mr. Suresh, a Photocopier, requests for a term loan of Rs 10.00 lakh for
purchase of 3 photocopying machines costing Rs 12.00 lakh. He will meet
loan WC requirements from his own resources.Manager can sanction the
loan under Priority Sector:

A.10 lakh/ B.12 lakh


C.Cannot sanction/ D.Regional manager can sanction

Answer is : C.Cannot sanction

242. Mr.Satish runs a travel agency. He dose not know driving. He


approaches the bank for loan of Rs 7.00 lakh for purchase and furnishing of
the van for travel and tour operator. Bank can

A.Refuse the loan/ B.sanction


C.Sanction if driving license is obtained
D.refuse since loan is excessive/ Answer is : B.sanction
243. The maximum loan that can be granted under village and cottage
industries is Rs

A.50,000/ B.65,000
C.25,000/ D.no limit/ Answer is : A.50,000

244. Net Working Capital / margin means

A.Money invested by the borrower


B.Bank loan/ C.Subsidy from Government
D.All the above

Answer is : A.Money invested by the borrower

245. The minimum percentage of Priority Sector advances to be maintained


by foreign banks in India

A.40%/ B.32%
C.15%/ D.no minimum limit

Answer is : B.32%

246. Which of the following scheme is not covered under weaker section

A.IRDP/ B.DRI
C.PMRY / D.consumption loan/ Answer is : C.PMRY

247. Loan for fish rearing is covered under priority sector as advance

A.Direct Agriculture / B.Indirect agriculture


C.Allied to indirect agriculture/ D.None

Answer is : A.Direct Agriculture

248. Training of Rural Youth for Self-Employment [TRYSEM] relates to:

A.Agricultural production/ B.Irrigation


C.Small scale industry / D.Self-employment in rural areas/

Answer is : D.Self-employment in rural areas


249. Minor irrigation schemes includes

A.Dig-wells/ B.Tube/bore-wells
C.Lift irrigation pumps/ D.all of these/

Answer is : D.all of these

250. Tyre re-treading activity and coffee processing shall be treated as an


industrial activity eligible under

A.SSI/ B.SSSBE
C.Tiny/ D.Service/ Answer is : A.SSI

251. The advanced not faulting under the priority sector is

A.SSI + Retail Trade + Small Business


B.Professional / self-employed + Agriculture
C.Wholesale Traders + Export + Education Loans to Business
Management Institutes
D.Funds provided by sponsoring bank to RRB’s

Answer is : D.Funds provided by sponsoring bank to RRB’s

252. Indirect agriculture advance means

A.Advances granted to agriculture for motor car to visit city


B.Advances granted to profit motive institutions which help indirectly to
agriculture or farming community
C.Advance granted to commission agents
D.Advances granted to Urban Electricity corpn.

Answer is : B.Advances granted to profit motive institutions which help


indirectly to agriculture or farming community

253. Cardinal principles of lending are

A.Safety and liquidity/ B.Profitability and diversifications of risks


C.Productive purpose and security/ D.Only (i) and (iii)
E.All of (i) to (iii) / Answer is : E.All of (i) to (iii)

254. Liquidity with a banker means

A.Cash on Hand/ B.Cash and Bank balances


C.Short term current assets to convert into cash
D.farming community/ E.None

Answer is : D.farming community


255. Customer profitability analysis means

A.Exercise done by bank before to lending for a customer


B.Exercise before opening a new branch
C.Assets the profitability of customers business
D.Only (i) and (iii)/ Answer is : B.Exercise before opening a new
branch

256. Banker can reduce risk in lending to a borrower

A.by obtaining adequate security


B.by ensuring that there will be no problem of liquidity with borrower
C.by ensuring that there will be no the account of lack of liquidity and
lack of willingness to pay on the part of the borrower

Answer is : C.by ensuring that there will be no the account of lack of


liquidity and lack of willingness to pay on the part of the borrower

257. In bankers parlance, credit risk in lending refers to

A.default of repayment by a borrower


B.default of a bankers in maintaining SLR
C.default of a banker to release credit to a borrower
D.none of above

Answer is : A.default of repayment by a borrower

258. Net working capital means

A.Current assets – Current Liabilities


B.Owned funds – goodwill
C.Use of assets + sources of funds
D.None of above

Answer is : A.Current assets – Current Liabilities

259. Major Current assets are

A.Marketable investments and cash/receivable/inventories


B.Inventories + cash + receivables
C.Share in sister concern + unquoted shares + cash
D.All of above

Answer is : A.Marketable investments and cash/receivable/inventories


260. What are the sources of working capital

A.Trade credits + Unsecured Loans + Deposits


B.Bank borrowings + Advance Payments
C.Net working capital/ D.All of above
E.None / Answer is : D.All of above

261. Working Capital means

A.Requirements for day to day transactions


B.Excess of current assets over current liabilities
C.Fixed assets – current assets
D.None of above

Answer is : A.Requirements for day to day transactions

262. Term loans mean Loans

A.Payable after one year to 10 years


B.repayment is done in installments
C.Term loans are utilized for acquisition of fixed assets
D.All of above
E.Only (i) and (ii)

Answer is : D.All of above

263. Working Capital needs are estimated by

A.Operating Cycle method/ B.Projected Turnover method


C.Cash Budget method/ D.Any of above
E.None of above / Answer is : D.Any of above

264. Difference between Cash Budget and Cash Flow

A.Cash flow deals with cash and non-cash funds


B.Cash Budget deals with Cash Transactions only
C.Cash flow statement are for quarterly or half yearly while cash budget
for short periods
D.Cash budget is projection into future while cash flow statement is
historical
E.All of above / Answer is : E.All of above
265. Advantages of Cash Budget could be

A.Borrower plans in advance cash requirements


B.Banker is able to spot to danger signal quickly and corrective measures
could be taken
C.Banker can plan his resources to meet credit demands
D.All of above/ E.Any of the above

Answer is : D.All of above

266. In there any exposure ceiling for banks in providing advances / loan to
borrowers?

A.15% of capital funds for single borrower and 40% in a borrower’s


group
B.10% of capital funds for single borrower and 20% in a borrower’s
group
C.25% of capital funds for single borrower and 50% in a borrower’s
group for infrastructural projects.
D.No such ceiling

Answer is : A.15% of capital funds for single borrower and 40% in a


borrower’s group

267. Credit decisions are affected by risks like

A.Credit risk / Market risk / Operational risk


B.Liquidity / interest rate / foreign exchange rate
C.Commodity price / equity price risks
D.None of above

Answer is : A.Credit risk / Market risk / Operational risk

268. When a Loan will be NPA?

A.interest and / or Loan instalments overdue for more than 90 days


B.A/c is out of order for more than 90 days in case of overdraft / cash
credit
C.Bill remain overdue for more than 90 days in BP / BD
D.All of above/ E.Only (i) and (iii)/ Answer is : D.All of above
269. Charging of interest at monthly rests would / would not change
overdue under NPA.

A.Would make overdue of 90 days form monthly interest debiting


B.Would make overdue 90 days from previous Quarter ending
C.Both of above
D.None of above

Answer is : B.Would make overdue 90 days from previous Quarter ending

270. Advances granted to units placed under rehabilitation package


approved by BIFR / TLI are treated as

A.NPA/ B.Standard assets


C.Additional credit facilities to such unit are to be treated as Non-NPA for
two years approved by BIFR / TLI
D.Additional credit facilities granted by banks under nursing programmed
prepared by banks themselves

Answer is : A.NPA

271. Working capital gap means

A.Total current assets – total current liabilities


B.Total current assets – Current Liabilities, other than bank borrowing
C.Total assets – total liabilities

Answer is : B.Total current assets – Current Liabilities, other than bank


borrowing

272. Maximum permissible Bank Finance (MPBF) is arrived at by

A.Deducting net working capital from working capital gap


B.Deducting net working capital gap from total assets
C.Deducting NWC from Total Current assets
D.None of above

Answer is : A.Deducting net working capital from working capital gap


273. Negative Lien means

A.A declaration by a Co. not to encumber assets of the co. without


previous consent of banker
B.A Lien letter executed by the Co. authorising the bank to mark lien on it
C.A trust letter executed by a Co.
D.A declaration that bank cannot provide cash to Co. if demanded

Answer is : A.A declaration by a Co. not to encumber assets of the co.


without previous consent of banker

274. Charge created on LIC policy is

A.Lien/ B.Set-off/ C.Hypothecation


D.Pledge/ E.Assignment/ Answer is : E.Assignment

275. Under Law of Limitation the liability of a guarantor is

A.3 years date of document


B.3 years from date of advance
C.3 years from date of invocation
D.12 years
E.30 years

Answer is : C.3 years from date of invocation

276. A guarantor is liable only when

A.The principle debtor has defaulted to pay


B.The creditor has exhausted his remedy against the principal debtor
C.The guarantor is called upon to pay on default by the principal debtor
D.After the expiry of limitation period of guarantee
E.None of above

Answer is : C.The guarantor is called upon to pay on default by the


principal debtor

277. A computer network mainly used to share

A.Data/ B.Software
C.Hardware/ D.All of above/ E.None of these

Answer is : D.All of above


278. Terminals connected to server is known as

A.Client/ B.Nodes
C.a & b/ D.CPU/ E.None of these

Answer is : C.a & b

279. For uninterrupted power supply in branch computerisation following


device is used

A.Online UPS/ B.Offline UPS


C.Convertor/ D.Generator/ E.None of these

Answer is : A.Online UPS

280. Proper functioning of computerised system is ensured by

A.Generation of audit trails/ B.Exceptional transaction


C.Tallying of cash book/ D.All of the above
E.None of these / Answer is : D.All of the above

281. In multi-user computer networking

A.Computer are based on centralized processing concept


B.Various terminals are attached to main computer
C.All data and information is kept on main computer
D.Large number of users can be connected to central computer
E.All of above

Answer is : E.All of above

282. In star topology

A.Each node is joined to the central node by separate link


B.Devices are connected in close loop
C.Information is passed from one node to the other in series
D.Devices on the network are connected to a single continuous
E.All of above

Answer is : A.Each node is joined to the central node by separate link


283. In bus topology

A.Each node is joined to the central node by separate link


B.Devices are connected in close loop
C.Information is passed from one node to the other in series
D.Devices on the network are connected to a single continuous
E.All of above

Answer is : D.Devices on the network are connected to a single


continuous

284. In ring topology

A.Each node is joined to the central node by separate link


B.Devices are connected in close loop
C.Information is passed from one node to the other in series
D.B & c
E.All of above

Answer is : C.Information is passed from one node to the other in series

285. In Core Banking system

A.Branches are connected to a central host


B.Branch automation modules and delivery channels are incorporated
C.Transactions are done centrally and online
D.All of above/ E.None of these/ Answer is : D.All of above

286. Benefits in core Banking is

A.Reliable centralised data recovery


B.Data warehousing and data mining technologies
C.Integrated customer centric services
D.Core infrastructure can used for future expansion
E.All of above / Answer is : E.All of above

287. ATMs provide

A.round the clock service/ B.privacy in transaction


C.anywhere banking facility/ D.quick and efficient service
E.all of above / Answer is : E.all of above
288. From the bank point of view the advantage of ATMs are

A.alternative to expand banking hours


B.cash handling and cash transportation is avoided
C.alternative to new branches
D.all of the above
E.none of these

Answer is : D.all of the above

289. PIN is

A.randomly generated sequence of digits


B.postal index number
C.stored in magnetic strip of the card
D.a & c/ E.none of these

Answer is : D.a & c

290. Security features available with smart cards are

A.multiple pins/ B.retinal pattern verification


C.dynamic signature verification/ D.vein recognition
E.all of above / Answer is : E.all of above

291. The advantages of the processor smart cards are

A.security/ B.reliability / C.longer life/ D.all of the above


E.none of these / Answer is : D.all of the above

292. Electronic purse may have following number of storage space

A.only one/ B.two/ C.several/ D.no storage space


E.none of these / Answer is : C.several

293. Cheque truncation can be done by

A.using MICR data/ B.sending cheque by speed post


C.using image processing/ D.a & c
E.none of these / Answer is : D.a & c
294. The credit card offers

A.revolving credit for certain period


B.pay off the entire amount of card usage
C.on-line recover of amount of card usage
D.all of above/ E.none of these

Answer is : A.revolving credit for certain period

295. the debit card offers

A.revolving credit for certain period


B.pay of the entire amount of card usage
C.online recover of amount of card usage
D.all of above/ E.none of these

Answer is : C.online recover of amount of card usage

296. The Charge card offers

A.revolving credit for certain period


B.pay of the entire amount of card usage
C.online recover of amount of card usage
D.all of above/ E.(e) none of these

Answer is : B.pay of the entire amount of card usage

297. MODEM does the following:

A.modulates digital signals into analog


B.demodulates analog signals into digital
C.converts data into image
D.both a & b/ E.none of these

Answer is : D.both a & b

298. A twisted pair cable consists of

A.two insulated copper wire


B.an inner copper conductor held in position by circular spacers
C.single copper wire/ D.all of these
E.none of these / Answer is : A.two insulated copper wire
299. A coaxial cable consists of

A.two insulated copper wire


B.an inner copper conductor held in position by circular spacers
C.single copper wire/ D.all of these
E.none of these / Answer is : B.an inner copper conductor held in
position by circular spacers

300. In optical fiber data is transmitted through

A.a very thin glass or plastic fibers with a beam of light


B.satellite
C.laser beam driven by a high speed high current driver
D.both a & c/ E.none of these/ Answer is : D.both a & c

301. In microwave systems

A.radio waves are modulates to carry information


B.wave beams are sent from one antenna to another
C.along the route, the received data is amplified and retransmitted
D.microwave signals may be passed on to the satellite
E.all of above

Answer is : D.microwave signals may be passed on to the satellite

302. Message switcher is used to

A.store and forward data to large number of terminals over a single


communication channel
B.send more than one signal simultaneously over a single communication
channel
C.intercept and handle communication activities for the host computer
D.all of above
E.none of above

Answer is : A.store and forward data to large number of terminals over a


single communication channel

303. Multiplexer is used to

A.store and forward data to large number of terminals over a single


communication channel
B.send more than one signal simultaneously over a single communication
channel
c.all of above/ d.none of above

Answer is : B.send more than one signal simultaneously over a single


communication channel
304. Front End Processor (FEP) is used to

A.store and forward data to large number of terminals over a single


communication channel
B.send more than one signal simultaneously over a single communication
channel
C.intercept and handle communication activities for the host computer
D.all of above/ E.none of above

Answer is : C.intercept and handle communication activities for the host


computer

305. A simple transmission is capable of

A.transmitting data only in one direction


B.data movement in both the direction but only one direction at a time
C.providing simultaneous two way communication
D.data communication only
E.none of these

Answer is : A.transmitting data only in one direction

306. A full-duplex transmission is capable of

A.transmitting data only in one direction


B.data movement in both the direction but only one direction at a time
C.providing simultaneous two way communication
D.data communication only
E.none of these

Answer is : C.providing simultaneous two way communication

307. The Committee which has recommended for establishment of Data


Warehouse is known as

A.Vasudevan Committee
B.Rangarajan Committee
C.Saraf Committee
D.Shere Committee
E.None of these

Answer is : A.Vasudevan Committee


308. Data mining techniques can be applied in

A.Predicting future trends based on applied in


B.Credit Risk analysis
C.Analysing demographic information about customers
D.All of the above
E.None of these

Answer is : D.All of the above

309. Communication technology

A.facilitate the processing of data


B.helps in transmission of data
C.enables decision support system
D.is a tool for data mining
E.All of the above

Answer is : B.helps in transmission of data

310. Which of the following is the gateway in India for EDI services
worldwide

A.Satyam online/ B.BSNL


C.MTNL/ D.VSNL/ E.None of these

Answer is : D.VSNL

311. The Universal set of standards for EDI is known as

A.EDIFACT/ B.EDI/ C.ISO/ D.BIS


E.None of these

Answer is : A.EDIFACT

312. Banks can use a corporate website for

A.dissemination of information
B.financial advice
C.accounts service
D.Selling products
E.None of these

Answer is : E.None of these


313. Computer-based information systems offer

A.data consistency / B.data redundancy


C.flexibility and ease for modification
D.All of the above/ E.None of these

Answer is : D.All of the above

314. Decision support system (DSS) uses

A.query language/ B.adhoc report generator


C.statistical analyzer/ D.graphics
E.All of above / Answer is : E.All of above

315. Impact of IT on banks can be

A.change in organisational structure


B.change in organisational orientation
C.change in service delivery channel
D.change in customer aspiration
E.All of above

Answer is : E.All of above

316. Information technology has resulted in

A.improved efficiency/ B.innovative products


C.effective delivery system/ D.enhanced productivity
E.all of the above / Answer is : E.all of the above

317. A typical computerized environment constitutes three interdependent


but separate components.

A.Software, hardware and data/ B.Hardware, software and UPS


C.Software, modem and Networking/ D.Software, peopleware and data
E.None of these / Answer is : A.Software, hardware and data
318. The risks broadly lead to:

A.Incorrect decision-making leading to setback to business


B.Interruption in activities due to loss of data, hardware, software
peopleware
C.Violation of privacy
D.Direction financial loss due to computer funds
E.All of these / Answer is : E.All of these

319. The objective of computer auditing is:

A.Assets safeguarding/ B.Preserving data integrity


C.Achieving system efficiency/ D.All of above
E.None of these / Answer is : D.All of above

320. The consequences of error in computerized systems are more serious


than in manual systems because

A.Computer systems process more data


B.Errors in computer systems are generated at high speed, and the cost
to correct may be high
C.User of computer systems perceive the computer output to be always
correct
D.All of above/ E.a and c / Answer is : D.All of above

321. Compared to a manual system, in a computer system:

A.The methodologies for implementing controls change


B.Basic control objectives are more difficult to achieve
C.Control objectives are more difficult to achieve
D.All of above/ E.a and b / Answer is : D.All of above

322. Segregation of duties in computerized environments is necessary


because:

A.It increases employees’ efficiency


B.Unlimited access to various can be avoided
C.It generates employment
D.All of above
E.b and c

Answer is : D.All of above


323. Risk prone component(s) in computerised systems

A.Error and omission in data and software


B.Unauthorised disclosure of confidential information
C.Computer abuse and mis-utilisation of banks assets
D.Frauds/ E.All of above/ Answer is : E.All of above

324. Effective control mechanism(s) in computerised environment

A.Preventive/ B.Detective/ C.Corrective


D.All of above/ E.a and c/ Answer is : D.All of above

325. Scope of System Audit is to

A.Review of operations to establish compliance


B.Review of the adequacy of producers and controls
C.Integrity review focused at fraud detection / prevention of IT system
D.All of above/ E.None of these/ Answer is : D.All of above

326. Audit trail is

A.A chronological record of all events occurring in a system


B.Report submitted by auditors
C.A collection of record generated by Database Administrator
D.All of above
E.None of these

Answer is : A.A chronological record of all events occurring in a system

327. Market is a geographical place where goods can be bought or sold

True/ False/ Answer is : False

328. Marketing is not relevant to a temple.

True/ False/ Answer is : False

329. Marketing is concerned with selling.

True/ False/ Answer is : True


330. Marketing implies ‘meeting needs ___________

A.Competition/ B.Profitably
C.Opportunities/ Answer is : B.Profitably

331. The business become customer and market driven due to increased
______.

A.Competition/ B.Profitably/ C.Opportunities

Answer is : A.Competition

332. Marketing identifies ____________ in customer requirements.

A.Competition/ B.Opportunities
C.Profitably/ Answer is : B.Opportunities

333. The following dose not represent a market situation

A.a bank run dispensary located in its staff quarters


B.a fund raising charity show for the members of an NGO
C.a meditation camp of a religious organisation conducted or its members
D.a stall distribution kada prasad in a gurudwara

Answer is : D.a stall distribution kada prasad in a gurudwara

334. The markets are grouped into different types based on the
geographical area, location of market place, product, nature of transaction,
and volume of transaction.In the above statement the following is not
correct

A.nature of transaction/ B.geographical area


C.location of marketplace/ D.volume of transaction

Answer is : C.location of marketplace

335. The following offering is not a service

A.Fixed deposit receipt/ B.Postage stamp


C.Insurance Policy/ D.Gift coupon of a chain store

Answer is : D.Gift coupon of a chain store


336. The act of obtaining a desired object from someone by offering
something in return is called as a __________.

A.Transaction/ B.Exchange/ C.Relationship/ D.Value

Answer is : B.Exchange

337. Economists use the term ________ to refer to a collection of buyers


and sellers who transact in a particular product class

A.Customer// B.Market
C.Exchange/ D.Experience

Answer is : B.Market

338. Match with following 1-Market

A.Many Sellers Few Buyers/ B.House to house vegetable


C.National Stock Exchange/ D.Railway

Answer is : C.National Stock Exchange

339. Match with following 2-Service

A.Many Sellers Few Buyers/ B.Chandni Chowk


C.National Stock Exchange/ D.Railway

Answer is : D.Railway

340. Match with following 3-Need

A.Thirst/ B.Chandni Chowk/ C.Hike in crude prices/ D.Railway

Answer is : A.Thirst

341. Match with following 3-Market Condition

A.Many Sellers Few Buyers/ B.Chandni Chowk


C.National Stock Exchange/ D.Railway

Answer is : A.Many Sellers Few Buyers


342. The identification and satisfaction of _________ _______ from the
basis of marketing.

A..consumer’s requirements/B.Consumer behaviour/cConsumer Price

Answer is : a.consumer’s requirements

343. Marketing is concerned with the creation and maintenance of mutually


satisfying _________.

A.sale B.exchange

Answer is : B.exchange

344. Wants for specific products backed by an ability and __________ to


buy them result in a demand

A.wiliness/ B.exchange/ Answer is : A.wiliness

345. The focus of modern marketing is on __________ ________


___________

A.customer relationship management


B.consumer behaviour/ Answer is : A.customer relationship
management

346. One view on classification of goods and services is that there is no such
thing as service industries and that everybody is in __________

A.busy /b.service/ Answer is : B.service

48. Marketing activities can be performed not only by sellers but also by
potential buyers

True/ False/ Answer is : True

349. Marketing comprises only actual buyers and not the potential buyers.

True/ False/ Answer is : False


350. Financial services are simpler hence they have different and simpler
characteristics than other services

True/ False/ Answer is : False

351. marketing mix for services is easier to formulate than that for physical.

True/ False/ Answer is : False

352. Out of the items mentioned below ____________ is not product.

A.Pilgrimage tour to Badrinath


B.‘Green Mumbai’ call
C.Crescent Apartment Housing Society
D.Discourse for public by Shri Suhanshu Maharaj at Cross Maidan,
Mumbai

Answer is : C.Crescent Apartment Housing Society

353. Match with options 1-Pepsi included in a Combo at McDonalds

A.Brand Name/ B.Associated features


C.Brand Name / D.Associated features

Answer is : B.Associated features

354. Match with options 2-Dry fruits in a glass bowl in Diwali Gift Pack

A.The core/ B.Associated features


C.Package and label / D.Associated features

Answer is : A.The core

355. Match with options 3-A Taj meal on jet Airways flight loan

A.The core/ B.Associated features


C.Package and label/ D.Associated features

Answer is : B.Associated features

356. Match with options 4-‘ALLBANK’ in housing loan offering of Allahabad


Bank

A.Brand Name/ B.Associated features


C.Package and label / D.Associated features

Answer is : A.Brand Name


357. In banking services bank guarantee is at a
¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬_________Product level in customer value hierarchy

A.top B.basic/ Answer is : B.basic

358. External Commercial Borrowing is

A.Consumer Product/ B.Industrial Product


C.Non-durable Goods/ D.Durable Goods
E.Material Supplies / Answer is : B.Industrial Product

359. Writing paper bought by your bank is

A.Consumer Product/ B.Industrial Product


C.Non-durable Goods/ D.Durable Goods
E.Material Supplies / Answer is : E.Material Supplies

360. Petrol bought for your car is

A.Consumer Product/ B.Industrial Product


C.Non-durable Goods/ D.Durable Goods
E.Material Supplies/

Answer is : A.Consumer Product

361. Compact Disks (CDs) are

A.Consumer Product/ B.Industrial Product


C.Non-durable Goods/ D.Durable Goods
E.Material Supplies / Answer is : C.Non-durable Goods
362. A bank offer under mentioned products, out of which _______ does not
belong to the product line(s) of others

A.Regular Saving Account


B.Premium Saving Account with overdraft line
C.Demand Draft/ D.Credit Card/ E.Banker’s Cheque

Answer is : D.Credit Card

363. A product has a life cycle comprising _________ (number of stages)

A.1 B.2 C.Four/ Answer is : C.Four

364. The concept of product life cycle is not of much concern to marketers
but to engineers or product developers. (Please state True and False)

True/ False Answer is : False

365. The sales of a new product in the introduction stage do not depend on
_________ out of the following

A.Product Brand Name/ B.Product Features


C.Product Price/ D.Seller’s Brand/ Answer is : A.Product Brand Name

366. In the maturity stage the product has established itself hence there is
no need for any further marketing efforts. (Please state True or False)

True/ False/ Answer is : False

368. Match the items 2-Fast Growth, Rising Profits

A.Maturity/ B.Decline/ C.Growth / D.Introduction

Answer is : C.Growth

369. Match the items 3-Falling Sales, Low Margins

A.Maturity/ B.Decline/ C.Growth/ D.Introduction

Answer is : B.Decline
370. Out of the items mentioned below, ___________ is not a product

A.Lecture by Shri Sudhanshu Maharaj


B.Simla
C.Ballet performance by Hema Malini
D.Visit to Bank’s London Office

Answer is : D.Visit to Bank’s London Office

371. A product ___________ is a group of related products that function in


a similar manner, are sold to the same customer groups, and marketed
through the same type of outlets

A.group/ B.line/ C.category/ D.market

Answer is : B.line

372. Goods that are typically bought by a consumer based on a comparison


of suitability, quality,price, and style are called __________ goods

A.industrial/ B.speciality/ C.shopping/ D.convenience

Answer is : C.shopping

373. Out of the following, ________ is not one of the three levels of a
products

A.core/ B.augmented/ C.actual/ D.fragmented

Answer is : D.fragmented

374. A bank has a special product for senior citizens which provides cheque
book on savings account with customers name on cheque book, free of cost
debit card with overdraft facility of Rs 20,000 a special pouch for holding
pass book, cheque book and debit card, facility for withdrawal and deposits
at any branch of the bank, free of cost remittances to any branch of the
bank free of cost remittances to any branch of another bank covered under
RTGS facility. Which of the following is the core product in this offering?

A.overdraft/ B.debit card


C.remittances/ D.savings account

Answer is : D.savings account


375. Industrial goods are classified based on the manner in which the
purchasing agent shops for and buys the goods

True/ False/ Answer is : False

376. The characteristic of service that it cannot be stored for future use is
known as intangibility

True/ False/ Answer is : False

377. Product line consistency refers to the number of versions offered of


each product line

True/ False/ Answer is : False

378. Marketers are now developing offering that give total customer
experience so that their offering are differentiated from the competition

True/ False/ Answer is : True

379. A brand name should suggest something about the product’s benefits
and qualities

True/ False/ Answer is : True

380. Product Personality is

A.Core benefit/ B.Expected product


C.The core/ D.Product items

Answer is : C.The core

381. Product Level is

A.Core benefit/ B.Expected product/ C.The core


D.Product items/ Answer is : A.Core benefit

382. Product Line is

A.Core benefit/ B.Expected product


C.The core/ D.Product items/ Answer is : D.Product items
383. Product Life Cycle is

A.Decline/ B.Brand
C.The core/ D.Product items/ Answer is : A.Decline

384. Assets are

A.Decline/ B.Brand
C.The core/ D.Product items/ Answer is : B.Brand

385. Out of the following, ___________ is not an objective of pricing.

A.Profit/ B.Stabilising demand and sales of the product


C.Improvement in product quality
D.Expansion of business

Answer is : D.Expansion of business

386. of the following pricing methods, _________ is not based on


competitors pricing

A.English Auction/ B.Sealed-Bid Auction


C.Going-rate Pricing/ D.Group Pricing

Answer is : D.Group Pricing

387. Of the following pricing strategies, __________ is not ideal for new
products

A.Market-skimming/ B.Discriminatory pricing


C.Market-penetration/ D.Promotional pricing

Answer is : B.Discriminatory pricing

388. Price for any product is a constant

True/ False/ Answer is : False


389. One of the objectives of pricing is getting cash inflows at the required
time

True/ False/ Answer is : True

390. Perceived value pricing takes the buyers’ perception into account

True/ False/ Answer is : True

391. A _________ discount is offered by the seller to intermediary who


performs functions like selling, storing and record keeping

A.quantity/ B.trade
C.cash/ D.seasonal

Answer is : B.trade

392. In market skimming pricing strategy:

A.initially price is lower and then it is increased


B.initial price is high and is maintained high
C.initial price is low and is maintained low
D.initially price is higher and then it is reduced

Answer is : D.initially price is higher and then it is reduced

393. Bank of Kuber is offering 1% interest rate on fixed deposits to senior


citizens of 60 years and above It is practicing ___________.

A.promotional pricing
B.psychological pricing
C.segmental pricing
D.product mix pricing

Answer is : C.segmental pricing

394. With _________ pricing, the products are priced below list price ( or
even below cost) for a temporary period to create period to create buying
urgency.

A.reference/ B.by-product
C.market penetration/ D.promotional Answer is : D.promotional
395. Of the following pricing methods, ________ is not cost – based method

A.value pricing/ B.target-return pricing


C.mark-up pricing/ D.marginal cost Pricing

Answer is : A.value pricing

396. Trade discount is also called a functional discount

True/ False/ Answer is : True

397. An aspect of psychological pricing is reference prices – prices that


buyers carry in their minds and refer to a when looking at a give product

True/ False/ Answer is : True

398. A firm should set a single price for a product and keep it constant as it
moves through its life cycle.:-

True/ False/ Answer is : False

399. For segmented pricing to be effective, members of the segment paying


the lower price should be able to resell the product to the segment paying
the higher price.

True/ False/ Answer is : False

400. With product – form segmented pricing different variants of the


products are priced differently but not according to their costs

True/ False/ Answer is : True

401. Factor influencing price is

A.Two – part pricing/ B.Cash rebates


C.Market – penetration pricing
D.Usage characteristics of product
E.Target – return pricing

Answer is : D.Usage characteristics of product


402. Pricing method is

A.Two – part pricing/ B.Cash rebates


C.Market – penetration pricing/ D.Usage characteristics of product
E.Target – return pricing/ Answer is : E.Target – return pricing

403. Pricing strategy for new product is

A.Two – part pricing/ B.Cash rebates


C.Market – penetration pricing/ D.Usage characteristics of product
E.Target – return pricing / Answer is : C.Market – penetration pricing

404. Promotional pricing is

A.Two – part pricing/ B.Cash rebates


C.Market – penetration pricing/ D.Usage characteristics of product
E.Target – return pricing / Answer is : B.Cash rebates

405. Product – mix pricing is

A.Two – part pricing/ B.Cash rebates


C.Market – penetration pricing/ D.Usage characteristics of product
E.Target – return pricing/ Answer is : A.Two – part pricing

406. Marketing channel refers to _________

A.a physical channel for movement of goods in them from the seller to
buyer
B.a set of firms who handle the physical movement of goods from one
point to another
C.different departments of the producer firm which are associated in
ensuring delivery of goods to the buyer
D.a set of independent organisations involved in the process of making a
product or service available for use or consumption

Answer is : D.a set of independent organisations involved in the process


of making a product or service available for use or consumption

407. The functions of distribution channel do not include ___________.

A.gathering and providing market information


B.marketing research
C.assisting the consumer in understanding and using the goods
D.promoting the sale of goods

Answer is : B.marketing research


408. Of the following characteristic _______ is found only in some service
like banking and not found in case of many services.

A.inseparability/ B.variability
C.client relationship/ D.perishability/ Answer is : C.client relationship

409. The maximum number of entities at any of the levels in a distribution


channel is called the length of the channel

True/ False/ Answer is : False

410. In selection of the marketing channel, the product characteristics are


relevant and market characteristic are of no consequence

True/ False/ Answer is : False

411. Banking is a service industry however, as it is experience oriented the


layout of the branch along with the interior décor make an impact on the
customer

True/ False/ Answer is : True

412. Distribution channels carry out the following functions except _______

A.Physical distribution/ B.Fixing the price


C.Matching the offer/ D.Risk taking/ Answer is : B.Fixing the price

413. A direct marketing channel is also called as _________ level channel

A.three/ B.two/ C.one/ D.zero

Answer is : D.zero

414. Computerised banking services have helped in working around the


following characteristic _______.

A.perishability and client relationship


B.inseparability and client relationship
C.variability and perishability
D.inseparability and intangibility

Answer is : D.inseparability and intangibility


415. Of the following intermediaries, ________ are not found working for
bank

A.direct sales agents/ B.wholesellers


C.Automobile dealers/ D.merchant establishments

Answer is : B.wholesellers

416. The following is not among the tasks performed under physical
distribution _____________.

A.storage of goods/ B.taking orders


C.forecasting demand for product/ D.servicing of the product

Answer is : D.servicing of the product

417. For industrial products direct-marketing channel is better suited.

True/ False/ Answer is : True

418. The location of the bank branches should be convenient for


maintaining management control due to risky nature of banking business
irrespective of the customer convenience

True/ False/ Answer is : False

419. The branch network of a bank is affected by RBI’s policy among other
factors.

True/ False/ Answer is : True

420. Physical distribution function of marketing distribution channel does


not have an effect on service

True/ False/ Answer is : False

421. The two main modes of transport for goods in India are rail and road

True/ False/ Answer is : True


422. Distribution Channel

A.Direct Channel/ B.Levels


C.Length of Marketing Channel/ D.Two or Three Level Channel
E.Storage Warehouses Equipped to Despatch Goods Quickly on receipt of
Orders

Answer is : B.Levels

423. Number of Levels

A.Direct Channel/ B.Levels/ C.Length of Marketing Channel


D.Two or Three Level Channel/ E.Storage Warehouses Equipped to
Despatch Goods Quickly on receipt of Orders

Answer is : C.Length of Marketing Channel

424. Perishable Products

A.Direct Channel/ B.Levels


C.Length of Marketing Channel
D.Two or Three Level Channel
E.Storage Warehouses Equipped to Despatch Goods Quickly on receipt of
Orders

Answer is : A.Direct Channel

425. Strong Competition

A.Direct Channel/ B.Levels


C.Length of Marketing Channel/ D.Two or Three Level Channel
E.Storage Warehouses Equipped to Despatch Goods Quickly on receipt of
Orders

Answer is : D.Two or Three Level Channel

426. Distribution Centers

A.Direct Channel/ B.Levels/ C.Length of Marketing Channel


D.Two or Three Level Channel
E.Storage Warehouses Equipped to Despatch Goods Quickly on receipt of
Orders

Answer is : E.Storage Warehouses Equipped to Despatch Goods Quickly


on receipt of Orders
427. The tools for communications with the customer are __________.

A.Promotion mix/ B.Product and price


C.(i) and (ii)/ D.(i) and other three elements of marketing mix

Answer is : D.(i) and other three elements of marketing mix

428. Promotion seeks to influence the buyer in decision – making through


________.

A.Persuasion/ B.Compulsion
C.Reminding/ D.(i),(iii) information and reinforcement

Answer is : D.(i),(iii) information and reinforcement

429. Promotion is an exercise of maintaining contact with the consumer at


different levels so as to_________

A.enhance customer relationship


B.Iure the customer in to buying the products
C.prevent customer from being critical of the firm
D.none of the above

Answer is : A.enhance customer relationship

430. Promotion mix of a firm includes public relations.

True/ False/ Answer is : True

431. In integrated marketing communications, the elements of promotion


mix are blended

True/ False/ Answer is : True

432. Buyers’ behaviour stage is not relevant for determining the promotion
mix

True/ False/ Answer is : False

433. An advertisement is not for __________.

A.suggesting new uses of a product/ B.telling about a new uses of a


product / C.explaining how a product works
D.building brand preference

Answer is : C.explaining how a product works


434. Direct marketing does not cover __________

A.online marketing/ B.public relations


C.personal selling / D.catalogue marketing

Answer is : B.public relations

435. Doller Rupee Co-operative Bank with ten branches in Mumbai should
not opt for ___________.As medium for its advertisement campaign

A.star plus channel on television


B.Mumbai edition of Mid-Day eveninger
C.Hording at dadar in Mumbai
D.Suburban train in Mumbai

Answer is : A.star plus channel on television

436. Personal selling is not an ideal medium of communication for


_________

A.core banking system


B.internet banking
C.a product in decline stage
D.treasury-based investment product

Answer is : C.a product in decline stage

437. Public relations element will not include __________.

A.A report on the bank appearing in a periodical


B.a program o f Lata Mangeshkar sponsored by the bank
C.an eye camp for cataract surgery sponsored by the bank
D.a presentation made to the employees of utpadansheel udyog Ltd.

Answer is : D.a presentation made to the employees of utpadansheel


udyog Ltd.

438. Advertisements are the best medium for personal communication with
Customers

True/ False/ Answer is : False


439. Personal selling is a useful strategy for sales in case of a decline stage
of a product

True/ False/ Answer is : False

440. The current view of the salesmen is that they should be concerned
more than just producing sales ,and should be made to produce customer
satisfaction

True/ False/ Answer is : True

441. Direct marketing has become the fastest growing form of marketing

True/ False/ Answer is : True

442. Direct marketing has not proved to be a useful tool for building lasting
Customer relationships

True/ False/ Answer is : False

443. Marketing information system is ___________ pertaining to marketing

A.the computer hardware system used for handling database


B.the set of input and output report / statements to collate and purvey
C.the structure of people, equipment and procedures for generating and
processing information
D.the software used for collecting and processing information

Answer is : C.the structure of people, equipment and procedures for


generating and processing information

444. Marketing information system is concerned with information about


___________.

A.consumers/ B.channel intermediaries


C.sales force / D.all of the above

Answer is : D.all of the above

445. The marketing personnel need information ______________ intervals.

A.at yearly/ B.at quarterly


C.at monthly/ D.on a continuous basis and regular
Answer is : D.on a continuous basis and regular
446. Marketing information system is necessary because information is
just not available to the decision makers from any ready source.

True/ False/ Answer is : False

447. Marketing research uses the information readily available from the
secondary sources

True/ False/ Answer is : False

448. Marketing information system help in validating information and


sorting out conflicting information

True/ False/ Answer is : True

449. Firm need to collect and analyse the data

A.Projecting their organisation as knowledge oriented


B.enabling the top management to keep control over the sales force
C.taking the required steps for effective marketing of their products
D.for utilising their information technology capabilities

Answer is : C.taking the required steps for effective marketing of their


products

450. An effective MIS fulfils these _________.

A.Analysis of quantitative information


B.Coordination among functional and specialists executives
C.Limited to current scenario
D.Both (i) and (ii) above

Answer is : D.Both (i) and (ii) above

451. The components of Marketing Information System do not include


_________

A.Marketing Intelligence system


B.Internal Records System
C.Information technology System
D.None of the above

Answer is : C.Information technology System


452. The ultimate user of the Marketing Information System are
__________.

A.the customer of the firm


B.the competitor of the firm
C.the decision makers in the firm
D.both (i) and (ii) above

Answer is : C.the decision makers in the firm

453. Which of the following situation falls under the purview of marketing
Research System?

A.Riddhi Vriddhi Bank wants to send Diwali greeting cards to all its fixed
deposit account holders with deposits of Rs. 10,000 or more.
B.Monday Honey Bank wants to have a profile of Kalahandi Disrict to
decide about opeing a new branch there
C.Get Rich Fast Bank wants a comparative business statistics with other
10 peer level banks in the country
D.Baroda branch of Prosperous Customer Bank is twelve-year-old, and it
recorded a compound annual growth rate of 20% in deposits during the first
ten years, which has been better than the industry average. However,
during the last two years the branch has witnessed a significant decline in
its deposits. Managing Director of the Bank desire to know the causes for
ameliorating the situation.

Answer is : D.Baroda branch of Prosperous Customer Bank is twelve-


year-old, and it recorded a compound annual growth rate of 20% in
deposits during the first ten years, which has been better than the industry
average. However, during the last two years the branch has witnessed a
significant decline in its deposits. Managing Director of the Bank desire to
know the causes for ameliorating the situation.

454. Marketing information system in not concerned with the evaluation of


information colleted from either primary source or secondary sources.

True/ False/ Answer is : False

455. Promotion mix

A.Public relations/ B.A hoarding at the station


C.A press report on centenary of the bank/ D.Contests
E.Strong message consistency

Answer is : A.Public relations


456. Sales promotion

A.Public relations,/ B.A hoarding at the station


C.A press report on centenary of the bank/ D.Contests
E.Strong message consistency

Answer is : B.A hoarding at the station

457. Direct marketing

A.Public relations/ B.A hoarding at the station


C.A press report on centenary of the bank/ D.Contests
E.Strong message consistency

Answer is : C.A press report on centenary of the bank

458. Public relations

A.Public relations/ B.A hoarding at the station


C.A press report on centenary of the bank
D.Contests/ E.Strong message consistency

Answer is : D.Contests

459. promotion-mix integration

A.Public relations/ B.A hoarding at the station


C.A press report on centenary of the bank
D.Contests/ E.Strong message consistency

Answer is : E.Strong message consistency

460. The marketing information requirements of a firm are very limited and
for one – time need

True/ False/ Answer is : False

461. Marketing information system collects and analyses the information as


per the system initially prescribed and is not concerned with the type of
information required by management

True/ False/ Answer is : False

462. Typically, most of the information for the marketing information


system is collected from secondary sources

True/ False/ Answer is : True


463. Consumer is of no relevance for the marketing information system,
since almost entire information is collected from independent sources.

True/ False/ Answer is : False

464. Marketing Research System

A.Major source – published information


B.Database management/ C.Data collected specifically
D.Geographic, demographic, psychographic and behavioural data on
customers and prospects/ E.Operations research tools

Answer is : C.Data collected specifically

465. Marketing Intelligence System

A.Major source – published information


B.Database management/ C.Data collected specifically
D.Geographic, demographic, psychographic and behavioural data on
customers and prospects/ E.Operations research tools

Answer is : A.Major source – published information

466. Marketing Information System

A.Major source – published information/ B.Database management


C.Data collected specifically
D.Geographic, demographic, psychographic and behavioural data on
customers and prospects
E.Operations research tools

Answer is : B.Database management

467. Customer database

A.Major source – published information


B.Database management/ C.Data collected specifically
D.Geographic, demographic, psychographic and behavioural data on
customers and prospects
E.Operations research tools

Answer is : D.Geographic, demographic, psychographic and behavioural


data on customers and prospects

468. Data analysis

A.Major source – published information/ B.Database management


C.Data collected specifically/ D.Geographic, demographic,
psychographic and behavioural data on customers and prospects
E.Operations research tools / Answer is : E.Operations research tools