PRINCIPLES & PRACTICES OF BANKING – RECOLLECTED QUESTIONS

Ans - d
Transactions of Internet Banking Which are the ingredients of product The term 'hot card' refers to (a) lost
includes ..... (i) Withdrawal of cash mix? (i) Advertising, (ii) Public card (b) stolen card (c) misplaced
anywhere in India, (ii) relation, (iii) Sales promotion card (d) misused card. Which
combination is correct?
Statement of account for a specific a. Only (i) and (ii) a. a, b, c
period, (iii) Transfer of funds from b. Only (i) and (iii) b. a, b, d
one account tanother account c. Only (ii) and (iii) c. a, c, d
d. (i), (ii) and (iii) d. b, c, d
a. Only (i) and (ii) Ans - a
b. Only (i) and (iii) Ans - d A customer has balance in his
c. Only (ii) and (iii) saving bank account. In which of the
d. (i), (ii) and (iii) Who proposed 4Cs in marketing? following cases, the bank’s right of
set of can be used for recovery of a
Ans - c a. Neilsen loan?
b. Neil Borden a. A bank guarantee issued by the
What is meant by “micro-blogging”? c. Lauterborn bank
(i) Blogging daily, (ii) Blogs which are d. Philip Kotler
posted by companies, not b. A term loan has been sanctioned
individuals, (iii) Blogs with limited Ans - c and the installment is still to fall due
individual posts, limited by character Which of the following statements is c. A cash credit limit is sanctioned to
count typically correct in regard to credit card? (i) the party and it is running regular
Credit cards are put intan imprinter
a. Only (i) and (ii) machine and the information on card d. Customer is guarantor in a loan
b. Only (i) and (iii) is recorded on an invoice or other account of another person and that
c. Only (ii) and (iii) document, known as 'charge slip', (ii) person has defaulted in repayment of
d. (i), (ii) and (iii) The name and emblem of card the loan
issuing bank are server printed on
Ans - b the card, (iii) The credit card bears a Ans - d
specimen of the card holder's Which of the following is/are the
signature and in some cases even stages of product life cycle? (i)
Which of the following is not an input his photograph. Introduction, (ii) Growth, (iii) Maturity
device in a computer system? a. Only (i) and (ii)
a. touch pad a. Only (i) and (ii) b. Only (i) and (iii)
b. mouse b. Only (i) and (iii) c. Only (ii) and (iii)
c. mother board c. Only (ii) and (iii) d. (i), (ii) and (iii)
d. bar code reader d. (i), (ii) and (iii) Ans - d
Ans - c Your branch receives a garnishee
Ans - d order in the name of your customer
Information Technology (IT) is looked The recipient of a digitally signed Mr. Trivedi, who has the following
at as an integrated technology of ..... message can verify the authenticity deposits accounts with your branch.
a. Manual Processing System of the message by use of which of Which of these can be attached
b. Manual Communication System the following key? under this garnishee order?
c. Information Processing
Technology (Computers) a. sender’s private key a. Trivedi - Executor of Ashok Kumar
b. sender’s public key deceased
d. Information Transmission c. receiver’s private key b. Joint saving bank account with his
Technology (Communications) d. receiver’s public key wife
c. Trivedi - trustee of Sewa Dal
Ans - c Ans – b Charitable Trust
d. None of the above
A club is maintaining current account Which of the following features do Ans - d
which is operated by Secretary and not match in case of goods and In Modems (whose the wrong one)
Treasurer jointly. The treasurer dies services, as a product? ..... (i) Digital signals are amplified,
and a cheque signed by him and (ii) Several digital signals
Secretary is presented a. Goods are search products are multiplexed, (iii) AC is converted
services are experienced products b. DC
a. The cheque cannot be paid Goods and services are tangible
b. The cheque cannot be paid after c. Goods relate to a stage prior to a. Only (i) and (ii)
death as he was responsible for the purchase of use b. Only (i) and (iii)
money c. The cheque should be paid d. Services are the products that c. Only (ii) and (iii)
if otherwise in order relate to a stage after buying or d. (i), (ii) and (iii)
d. The cheque should be paid after consuming Ans - d
confirmation from president of the A savings account is treated as a
club. Ans - b dormant account if there is no
12 operation in the account for the last
Ans - c ..... years.
Globally, the banks are technology
Which social network is considered that will gradually give new a. one
the most popular for business to dimension ..... of banks. (i) b. three
business marketing? Products, (ii) Services, (iii) Delivery c. two
systems d. five
a. Facebook
b. Orkut a. Only (i) and (ii) Ans - c
c. Ryze b. Only (i) and (iii) The Debit card offers .....
d. LinkedIn c. Only (ii) and (iii)
d. (i), (ii) and (iii) a. revolving credit for certain period
Ans - d

1
b. payoff the entire amount of card Banking means acceptance of ..... for
usage the purpose of lending and ..... u/s Which of the following is not the
c. online recover of amount of card ..... of Banking professional market research
usage Regulation Act agency?
d. all of above
Ans - c a. Deposits, investments, 5 (b) a. ORG
what relationship is created when the b. Deposits, investments, 5 (c) b. MARG
bank collects a cheque in clearing? c. Deposits, investments, 6 (b) c. DMA
d. Deposits, investments, 6 (c) d. IMRB
a. holder for value
b. clearing member and principle Ans - a Ans - c

c. agent and principle National Payments Corporation of What are the benefits of credit card
d. collecting bank and holder India (NCPI) is promoted by ..... for its holder? (i) Card holder is
relieved of the
Ans - d a. SEBI risk/Botheration/tension of carrying
Fund based credit facilities include b. RBI cash while staying in hotels, dinning
..... (i) Term loan for acquisition of c. GoI in restaurants, shopping, Buying air
fixed assets, (ii) Cash d. Major Public and Private or rail tickets etc, (ii) Card holder can
credit facility, (iii) Bill purchase facility Sector Banks draw money from ATMs
a. Only (i) and (ii)
b. Only (i) and (iii) Ans - b a. Only (i)
c. Only (ii) and (iii) b. Only (ii)
d. (i), (ii) and (iii) Which of the following is not the c. Either (i) or (ii)
common objective pursued by firms d. Both (i) and (ii)
Ans - d for short term?
Ans - d
Merchant bankers are ..... a. Profit optimization
b. Profit maximization Promotion in Marketing means .....
a. Financial Brokers c. Minimum return on sales turnover
b. Financial intermediaries d. Fast turnaround or early cash a. passing an examination
c. Credit Appraisers recovery b. elevation from one grade to
d. Underwriters another
Ans - a c. selling the products through
Ans - b various means
d. selling the product in specific
The forfeiter is an intermediary If a bond is issued with the provision areas
between ..... that the investor has option to
a. Exporter’s bank and importer replace the bond with Ans - c
b. Importer’s bank and exporter equity at a fixed price, it is called .....
c. Importer and exporter Bank Marketing means .....
d. Exporter & his bank and importer a. Coupon bond
& his bank b. Convertible bond a. Selling of Banks
c. Preference bond b. Merger of Banks
Ans - c d. Zero coupon bond
c. Selling bank’s products and
Ans - b services
Monetary Policy Committee (MPC) of d. None of these
India comprises of ..... members, ..... When a company issues shares to a
from the RBI and select group of investor which is Ans - c
...... nominated by the Government neither a public issue nor a
rights issue, it is called ..... One of the following is a target for
a. 5, 3, 2 a. Bonus issue the marketing of internet banking .....
b. Rights issue
b. 6, 3, 3 c. Private placement a. All the customers
c. 7, 3, 4 d. Qualified institutional placement b. All the educated customers
d. 7, 4, 3 c. All the computer educated
Ans - c customers
Ans - b d. Only creditors
Which of the following is a benefit of
strategic alliance? (i) Ability to bring Which of the following statement Ans – c
together the complementary skills is/are correct? (i) Price exist in
and assets that neither company different forms for products of Forfaiting helps the exporter in the
could easily develop on its own, (ii) different nature, (ii) Price affects the following ways...... (i) provides
Providing added value to the consumer behaviour in deciding increased trade opportunity,
customer i.e. value addition, (iii) about acquiring the product, (iii)
Expansion of channels and market Price is the only element that (ii) provides 100 per cent
presence produces revenues financing, (iii) helps the exporter to
transfer various risk resulted from
a. Only (i) and (ii) deferred payments
b. Only (i) and (iii) a. Only (i) and (ii)
b. Only (i) and (iii) a. Only (i) and (ii)
c. Only (ii) and (iii) c. Only (ii) and (iii) b. Only (i) and (iii)
d. (i), (ii) and (iii) c. Only (ii) and (iii)
d. (i), (ii) and (iii) d. (i), (ii) and (iii)
Ans - d
Ans - d Ans - d

2
A good seller should have the b. Demographic Segmentation
following quality/qualities? (i) c. Geographic Segmentation Ans - d
Devotion to the work, (ii) Submissive, d. Status Segmentation Market‐driven strategy includes .....
(iii) Sympathy
Ans - d a. identifying problems
a. Only (i) and (ii) b. planning marketing tactics of
b. Only (i) and (iii) peers
c. Only (ii) and (iii)
d. (i), (ii) and (iii) CRM (Customer Relationship c. positioning the organization and its
Management) is ..... (i) A pre‐sales brands in the market place d. internal
Ans - d activity, (ii) A tool for lead marketing
generation, (iii) An ongoing daily
activity Ans - c
Effective marketing helps in ..... (i)
Developing new products, (ii) a. Only (i) and (ii) Innovation in marketing is same as
Creating a competitive b. Only (i) and (iii) .....
environment, (iii) Building demand c. Only (ii) and (iii) a. motivation
for product d. (i), (ii) and (iii) b. perspiration
c. aspiration
a. Only (i) and (ii) Ans - d d. creativity
b. Only (i) and (iii)
c. Only (ii) and (iii) hich of the following is NOT an Ans - d
d. (i), (ii) and (iii) important component of
'PROMOTIONAL MIX‘?
Ans - d
a. Advertising Personal loans can be canvassed
Home loans are granted to ..... b. Personal selling among .....
c. Sales Promotion a. salaried person
a. Individuals d. Total quality Management b. pensioners
b. Institutions c. foreign nationals
c. Builders Ans - d d. NRI Customers
d. all of these
Ans - a
Ans - a The sole aim of marketing is to .....

ESOP stand for .....
a. Efficient Service of Promises
b. Effective System of Projects
c. Employee Stock Option Plan
d. Essential Security of Project
Ans - c
What is concept Marketing?
a. It is the type of marketing in which
manufactures own outlets and
exclusive show rooms b. It is the
factory outlets owned and operated
by retailers c. It is an act of
converting a new concept into a
product
d. It is the concept of marketing
through sending messages on
mobiles
Ans - c
Expand ICDT Model
a. Information, communication,
Transaction and Distribution b.
Investment, communication,
transaction and distribution c.
Internet, carrier, Transaction and
Distribution
d. Internet, communication,
Transport and Distribution
Ans - a
Which of the following is NOT a base
for Market segmentation?
a. Behavioral Segmentation
a. increase sales A product means something that can
b. increase the number of employees be offered to satisfy a want or need
which can be physical goods,
c. increase profits services, persons, place, idea etc.
d. increase production Which of the following does not
match?
Ans - a
a. Idea - adult education
b. Places - Goa, Kashmir
Bancassurance can be sold to ..... c. Persons - Bismilla Khan
d. Services - tooth paste
a. All banks
b. All insurance companies Ans - d
c. Insurance Agents
d. All existing and prospective bank
customers If there are declining sales leading to
decilining profits and no possibility of
Ans - d increasing and improving them,
which of the following strategy will be
adopted by an organization?
A restaurant provides food as well as a. Product modification
service along with the infrastructure
for use. This type of b. More of product modification and
product can be classified as ..... some production elimination c. Some
production modification and more of
a. Pure tangible goods production elimination d. Product
b. Tangible goods with elimination
accompanying services
c. Hybrid Ans - d
d. Major service with The best advertisement is .....
accompanying minor goods
a. Glow sign boards
Ans - c b. On internet
c. TV media
Conversion means ..... d. A satisfied Customer
a. meeting a prospective client
b. interacting with a prospective Ans - d
client Acid Test of a brand is .....
c. converting an employer into an
employee a. Brand preference
d. converting a prospective client into b. Brand awareness
a buyer c. Brand loyalty

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d. Brand equity One of the following is not included
in the 7 P’s of Marketing. Find the Ans - d
Ans - c same.
Your branch maintains a joint
a. Product account of A and B. B is declared
Market Research is needed for ..... (i) b. Price insolvent. In such case, the
Deciding the market area, (ii) c. Production balance lying in the account will be
Deciding the right‐product d. Promotion paid to .....
to be sold, (iii) Making proper
marketing decisions Ans - c a. A being the solvent account holder
b. Official assignee or receiver
a. Only (i) and (ii) appointed by the court
b. Only (i) and (iii) Labeling is important for c. After meeting the claim of B
c. Only (ii) and (iii) informational, legal & reasons ..... towards the official assignee, the
d. (i), (ii) and (iii) balance amount will be paid to
a. Marketing A
Ans - d b. Branding d. A and the official assignee or
c. Strategic receiver, jointly
d. Promotional
In addition to product, price, Ans - d
promotion, the augmented marketing Ans - d 26
mix for services include all
of the following EXCEPT ..... Which of the following statements is Equity investment by a bank in
not correct in the context of dealing companies engaged in non-financial
a. People with a company? services activities would be
b. Packaging subject to a limit of .....
c. Process a. Responsibility to get the charge
d. Physical evidence registered with ROC is that of the a. 10 per cent of the investee
bank company’s paid up share capital b.
Ans - b b. Responsibility to file the particulars 10 per cent of the bank’s paid up
of charge to get it registered is that of share capital and reserves c. Either a
Out of the following ..... is not an the company or b, whichever is less d. Either a or
objective of pricing b, whichever is more
c. If company fails to file the
a. Profit particulars of charge for registration, Ans - c
b. Stabilizing demand an sales of bank can file the particulars within
the product the prescribed period, being an The process of segregation of
c. Improvement in product interest party ownership and trading rights of the
quality d. Satisfaction of charge is also members in a stock exchange
d. Expansion of business required to be registered within 30 is called .....
days
Ans - d a. Mutualization
Ans - a b. Demutualization

Service after sale is not the function c. Rematerialization

of ..... Market risk takes the form of (which d. Dematerialization
one is not correct)?
a. Marketing staff Ans - b
b. Seller a. Commodity price risk
c. Director of the company b. Interest rate risk What is the maximum extent up to
d. Employees of the company c. Loan default risk which the foreign institutional
d. Liquidity risk investors can invest in the stock
Ans - a exchanges in India?
Ans - c
Delivery channel other than Bank a. 24%
counters are ..... (i) ATMs, (ii) b. 26%
Internet Banking, (iii) Mobile In which of the following situations c. 49%
Banking different partners of the combination d. 74%
remain separate entities?
a. Only (i) and (ii) Ans - c
b. Only (i) and (iii) a. Alliance
c. Only (ii) and (iii) b. Amalgamation A cheque of Rs.10000 issued by
d. (i), (ii) and (iii) c. Consolidation Ram Chander, one of your account
d. Merger holders, in favour of Shivaji is stolen
Ans - d by one Radhey Shyam who foeges
Ans - a Shivaji’s signatures and andorses it
in favour of Ganeshi lal, who obtain
Cross‐selling is not effective for What is the objective of securitization the payment from the bank. In this
which one of the following products? of financial assets? situation what would be bank’s
position?
a. Debit Cards a. To enable the banks in speedy
recovery of bad loans a. Bank will be liable for the forgery
b. Savings Accounts
c. Internet Banking b. To sell the securities without b. Bank will be liable only if the
d. Pension loans intervention of the court, only if loan drawer proves that the instrument is
goes bad c. To acquire assets and forged c. Bank will not be liable if
Ans - b then sell the same at profit d. Ganeshi Lal agrees to refund the
Recycling of funds amount

4
 a. Horizontal merger
d. Bank will get protection available b. Vertical merger
to it under Section 85(1) NI Act and
will not be liable for the payment c. Conglomerate merger
made d. Concentric merger
Ans - d Ans - b
In the following situations, which Labeling is important for three
decision taken by a bank is not reasons‐ promotional and legal
correct, in case of an insolvent reasons. What is the third reason?
customer?
a. Marketing
a. A cheque signed by the insolvent b. Branding
person as drawer is presented for c. Strategic
payment and bank returns it unpaid d. Informational
b. Insolvent person comes to open a Ans - d
new deposit account and bank
refuses to open the account Which of the following has made
product selection simpler? (i)
c. An insolvent person comes as Internet, (ii) E-mail, (iii) Price
payee of a cheque and bank refuses
ti pay to him d. None of the above a. Only (i) and (ii)
b. Only (i) and (iii)
Ans - d c. Only (ii) and (iii)
d. (i), (ii) and (iii)
EMV standards which provides
technical standards for card usage. Ans - a
In which EMV stands for .....
Which of the following is not the
a. Electronic Magnetic Variance characteristics of the services?
b. Europay, Master card and Visa
c. Electro Magnetic Visualization a. Intangibility
d. None of these b. Perishability
c. Seperability
Ans - b d. Heterogeniety
The various dangers to any Ans - c
computer system can be classified
as ..... (i) Physical damage due to Which of the following is/are the
characteristics associated
natural calamities, (ii) Damage due transactions between two or more
to operational problems like power parties? (i) Agreed upon conditions,
failure, System malfunction etc, (iii) (ii) Time of agreement, (iii) A place of
Human errors agreement
a. Only (i) and (ii) a. Only (i) and (ii)
b. Only (i) and (iii) b. Only (i) and (iii)
c. Only (ii) and (iii) c. Only (ii) and (iii)
d. (i), (ii) and (iii) d. (i), (ii) and (iii)
Ans - d Ans - d
Real Time Gross Settlement System
means a payment system in which The Central Registry of
..... Securitisation Asset Reconstruction
and Security Interest of India
a. both processing and final (CERSAI) is set up under the
settlement of funds transfer provisions of .....
instructions can take place
continuously a. RBI Act
b. BRI Act
b. final transaction takes place at the c. SARFAESI Act
end of the day c. final payment is d. Transfer of Property Act
physically effected within 24 hours d.
Final settlement of funds take place Ans - c
at 3 PM daily
Ans - a Banking Codes and Standards Board
of India, has been constituted as a
.....
Two companies are merged. One of
these is supplier of goods to the a. Joint stock company
other. This merger is b. Trust
known as ..... c. Society
d. Partnership firm
Ans - c
Which of the following conditions are
essential to constitute a valid
pledge?
a. Bailment of goods
b. Bailment must be or on behalf of
the debtor or intending debtor
c. It must be the intention of the
parties that the goods will serve as
security for a debt or
performance of a promise
d. All of the above
Ans - d
Under RTGS ..... (i) Bank will route
payments trough online messages to
RBI's clearing cell, (ii)
Each transactions will be cleared and
settled independently on a minute-
by-minutes basis, (iii) The payee
would have funds in his account
within a maximum time frame of two
hours of the settlement.
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
The DSS and ESS bring about a lot
of transparency in .....
a. Data Processing System
with b. Cheque Processing
c. Decisions Making Process
d. Withdrawal Processing
Ans - c
In which of the following types of
fund, the investment is made
exclusively in govt. securities?
a. Liquid funds
b. Gilt funds
c. Sector specific fund
d. Index fund
Ans - b
The legal set up of a mutual fund is
in the form of a .....
a. Joint stock company
b. Trust
c. Partnership firm
d. Limited liability partnership
Ans - b
The universal set of standards for
EDI is known as .....
a. EDIFACT
b. EDI
c. ISO
d. BIS
5

Ans - a
Where a person in any of the towns,
which the State Government
concerned may, by notification in the
Official Gaetted specify on this
behalf, delivers to a creditor or his
agent document or title to immovable
property, with intent to create a
security thereon, the transaction is
called a .....
a. Simple mortgage
b. English mortgage
c. Equitable mortgage
d. Anomalous mortgage
Ans - c
Factors influencing the promotion
mix is/are ..... (i) Type of
product/market, (ii) Buyers’
Readiness stage, (iii) Product life
cycle stage
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
Markup pricing comes under which
of the pricing method?
a. Value-based pricing
b. Cost-based pricing
c. Competition-based pricing
d. Going rate pricing
Ans - b
Which of the following is/are true
about push strategy of promotion
mix? (i) Promotion efforts are
directed towards the final consumer,
(ii) Promotion efforts are directed at
the channel member, (iii) It is done
through personal selling and trade
promotion
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - c
The most visible of impact of
technology is reflected in the way the
banks respond ..... for
making its effective used for efficient
service delivery.
a. Technically
b. Operationally
c. Strategically
d. Financially
Ans - c
Technology has compelled the banks
to evolve a ..... Pricing system for
marketing better
services which may sometimes result
in higher costs to the customers.
a. Opaque
b. Increasing
c. Decreasing
d. Transparent
Ans - d
Which of the following is/are tool(s)
for promotion mix? (i) Direct
Marketing, (ii) Public relations, (iii)
Advertising
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
Data privacy assumes significant
dimension; viz ..... (i) authority to
access data, (ii) authority to
use data only for specified purposes,
(iii) authority to withdraw money
without telling others
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - a
ATMs provide .....
a. round the clock service
b. anywhere banking facility
c. quick and efficient service
d. all of above
Ans - d
In a MICR cheque, which of the
following code does not match the
'description .....
a. first 6-digit code - cheque number
b. central 09-digit code — city, bank
and branch code
c. last 2-digit code — transaction
code such as saving or current
account d. none of the above
Ans - d
If an Indian bank has place of
business in one state only and has
office in Mumbai or Kolkata, what is
true regard to the amount of
minimum capital?
a. Rs.5 lac
b. Rs.5 lac + Rs.25000 for each
place of business outside Mumbai or
kolkata c. Total amount not
exceeding Rs.10 lac d. a to c
Ans - d
Where a minor is admitted for benefit
in a partnership firm and he attains
majority and decides
to join the firm as partner, his liability
begins from .....
a. Date of his majority
b. Date of his decision to join the firm
c. Date of information to him that he
was admitted for benefits d. Ate
when he was admitted for benefits
Ans - d
Which of the following amount can
be sent abroad by an NRI from his
NRO account? (a)interest credited by
the bank (b) amount of dividend
received (c) principal in the account?
a. a and b
b. b and c
c. a and c
d. Any of the above
Ans - a
In the ....., the subscription and
repurchase is available on a
continuous basis
a. Growth fund
b. Open ended fund
c. Close ended fund
d. Debt oriented fund
Ans - b
Liquidity with a banker means .....
a. Cash on hand available with him
b. Cash and bank balance
c. The level of convertible (to cash)
short term assets available with a
bank d. All of the above
Ans - c
The process of maintenance of
account books, discounting of bills
and collection of bills on due
date is called by a person other than
by the seller .....
a. Securitization
b. Factoring
c. Forfaiting
d. Take out finance
Ans - b
RBI is managed by a Board which
consists of ..... (i) governor, (ii) 4
deputy governors, (iii) all
nominated by the Central Govt. and
RBI. Which of these is correct?
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
A withdrawal slip is a .....
6
a. Cheque
b. Bill of Exchange
c. Promissory Note
d. All of these
Ans - c
Which of the following is the internal
factor influencing pricing?
a. Price elasticity of the demand of
the product
b. Competitors’ policy
c. Bargaining power of suppliers
d. Social considerations
Ans - a
Marketing concept is rested on four
main pillars. Which of the following is
not amongst four pillars?
a. Target Market
b. Customer needs
c. Segregated Marketing
d. Profitability
Ans - c
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
Ans - d
Digital Banking is characterised by
.....
a. Visiting branch office for doing
transactions and using digital
devices available at branches c. Use
of computers and core banking
solutions by the banks for effective
customer services
b. Alternative electronic channels
which can be used by customers at
their convenience to carry out
banking operations
d. Use of Electronic ledgers and
digital tools for book maintenance
and transactions by the banks
Ans - b
The difference between ATM card
and Debit card is .....
a. Both are same and no difference
b. ATM card can be used in both
online transactions, POS and ATM
withdrawals where as Debit cards
can be used only for ATM withdrawls
c. Debit card can be used in online
transactions, POS transactions and
ATM withdrawals where as ATM
cards can be used only for ATM
withdrawals
d. ATM card is used in POS
terminals only whereas Debit cards
can be used in all type of
transactions
Ans - c
Credit risk does not take form of .....
a. Bank guarantees
b. Treasury operations
c. Cross border exposure
d. Equity price change
Ans - d
Which of the following is an Example
for Pre paid card? (i) Travel card, (ii)
Credit card, (iii) Gift card
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - b
A bank has acquired an immovable
property but it has not been able to
dispose it of within 7 years. What
remedy is available to the bank?
a. It can seek Central Govt.
permission which is available for 4
years
b. It has to seek State Govt.
permission where it is located which
has powers to extend the period of
seven years by 5 years
c. It can seek RBI permission which
has authority to extend it by 5 years
d. It can seek RBI and Company law
Board Permission
Ans - c
Regional rural banks re licenced for
banking business under .....
a. A special statute
b. Companies Act
c. Cooperative Societies Act
d. Banking regulation Act
Ans - d
Credit operations of banking system
are generally guided by ..... (i)
Directives of RBI, (ii)
Instruction of Govt, (iii) Bank's own
policy
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
When a bank lends money to the
corporate person the relationship
between bank and
corporate person is .....
a. borrower and lender
b. creditor – debtor
c. debtor - creditor
d. customer and client
Ans - b
An electronic database of
certificates, the equivalent of digital
Yellow Pages is called .....
a. certificates chest
b. certificates depositor
c. repository
d. certificate warehouse
Ans - c
How does creating a social network
marketing plan differ from a
traditional marketing plan? (i) The
staff requirements and skill sets for
social marketing are different, (ii)
There is no need for a social
marketing plan, but social marketing
plan is required for traditional
marketing, (iii) Other than the
method of delivery, a marketing plan
either way will be similar
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - a
What is meant by A/B testing in
marketing?
a. Testing of 2 different products
b. Testing 2 versions of an
advertisement to see which elicits
the best response c. Clinical testing
of medical products before legally
allowing them for sale d. Testing via
2 mediums, such as radio and
television
Ans - b
Which of the following statements
are not correct? (i) In India, foreign
exchange regulations are
administered by Reserve Bank of
India, (ii) Reserve Bank of India
maintains the external value of
rupee, (iii) Reserve Bank of India
does not deal in foreign exchange
directly with the public
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - a
What place does Pricing have in
marketing?
a. Higher prices guarantee higher
revenue stream
7
b. The company should actively
market how much their products cost
c. Different pricing levels can be
tested to see what elicits the best
consumer response
d. Marketing based on the pricing
level relative to competition is
important
Ans - c
How can a company use the same
material for both traditional and
social network marketing?
(i) Selling ad space on the
company website, (ii) Utilizing a
television ad campaign online as well
on their site and sites such as
YouTube, (iii) Creating a magazine
print ad with the company website
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - c
Social networks have an enormous
information sharing capacity. As
such, they are a great
distribution channel for .....
a. customer feedback
b. viral content
c. exclusive coupons
d. marketing messages
Ans - d
Debit card can be used for ..... (i)
Cash withdrawal from ATMS, (ii) For
making payment in POS
terminals, (iii) Making payment in e
commerce portals by providing card
number, expiry date and CVV
number
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
The part of the computer that makes
use of primary memory:
a. storage unit
b. central processing unit
c. output devices
d. all the above
Ans - c
According to marketing four Ps,
credit terms can not be classified as
..... (i) Place, (ii) Price, (iii)
Product
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - b
From buyers point of view, product is
considered as .....
a. Customers cost
b. Customer solution
c. Convenient availability
d. Communication
Ans – a
Bancassurance is not ..... (i) An
insurance scheme to insure bank
deposits, (ii) A composite
financial service offering both bank
and insurance products, (iii) An
insurance scheme to insure bank
advances
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - b
Communication channels such as
buzz marketing and word-of-mouth
influence are not classified as ..... (i)
non personal communication
channels, (ii) non-emotional
communication channels,
personal communication channels
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - a
The minimum percentage of Priority
Sector advances to be maintained by
foreign banks in India
with less than 20 branches .....
a. 40%
b. 18%
c. 32%
d. 60%
Ans - c
Loans to corporates directly engaged
in Agriculture and Allied Activities to
an aggregate limit of more than 2
crore is covered under Prirority
Sector as ..... advances
a. Direct Agriculture
b. Indirect Agriculture
c. Self Employment Scheme
d. Allied to indirect Agriculture
Ans - b
Bank loans to Primary Agricultural
Credit Societies (PACS) is covered
under Priority Sector as
...... advances
a. Direct Agriculture
b. Indirect Agriculture
c. Self Employment Scheme
d. Allied to indirect Agriculture
Ans - b
What is Reverse Repo? (i) It is a
method of borrowing against certain
securities for a short period, (ii) It is
process where lender levels against
the securities with a commitment to
take back the securities from the
borrower against payment at a
specified price, (iii) It is helpful in
contracting liquidity in the system
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - b
Marketing channel doesn't refer to
..... (i) a set of independent
(iii) organisations involved in the
process of making a product or
service available for use or
consumption, (ii) a physical channel
for movement of goods from the
seller to the buyer, (iii) a set of firms
who handle the physical movement
of goods from one point to another
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - c
Business market strategies stimulate
a customer to take action towards
the buying decision is

Ans - b The minimum percentage of Priority known as .....

Sector advances to be maintained by
Which of the following products in Domestic commercial a. Promotional market
retail banking do not fall under retail banks ..... b. Related market
deposit products? c. Digital market
a. 40% d. Virtual market
a. no frill accounts b. 18%
b. deposit accounts of senior citizens c. 32% Ans - a
d. 60%
c. depository services When Marginal utility diminishes,
d. all the above Ans - a total utility .....

8
a. Diminishes d. All members of the family are b. Non resident ordinary account
b. Increases called coparceners including mother c. FCNR account
and daughter-in-law d. Savings bank
c. Remains constant
d. Increases at a diminishing rate Ans - d Ans - d
....
Ans - d
In case the letters engraved on the
Statement ..... machines are also in Common Seal has defaced, a new The minimum period for opening
use in few banks which considerably seal can be adopted by FCNR deposit account is .....
enhance statement the Company by .....
delivery times. a. Six months
a. Referring to the provisions made b. Three months
a. Printing in Article of Association c. One year
b. Folding and Franking d. Two years
c. Plotting b. Referring to the provisions made
d. Ordering in Memorandum of Association c. Ans - c
Passing a suitable resolution before
Ans - b using the new seal d. Order of the The cases of deceased depositors
Managing Director or Secretary where the claims have been received
The international level ...... have and are pending beyond the
been active in the privacy area. (i) Ans - c stipulated period are required to be
Organization for Economic .... reported to which of the following?
Co-operation and Development, (ii)
Ashton Tate Corporation Ltd, (iii) AT The ombudsman signifies; a. Board of Directors of the bank
&T b. Ombudsman
a. an institution established to c. Reserve Bank of India
a. Only (i) and (ii) content and prevent abuses of power d. Customer Service Committee
b. Only (i) and (iii) by Public official. b. redress of the Board
c. Only (ii) and (iii) individual grievances
d. (i), (ii) and (iii) c. acts as an external agency to Ans - d
probe in to administration faults.
Ans - d d. all the above
Which of the following can be taken
Mr. X maintains a SB account with Ans - d as part of Off-balance sheet items?
your bank. He has given a POA to
his son, to operate his SB a. Take out finance in the books of
account. The relationship between Maximum No of Partners in a the taking over institution b.
the bank and Mr.X is ..... banking partnership firm is ______ in Outstanding foreign exchange
terms of ______ Act contracts c. Open position in gold
a. debtor and creditor d. All the above
b. principal and agent a. 10, Indian Partnership Act 1932
c. donor and donee b. 20, Indian Partnership Act 1932 Ans - d
d. none of the above c. 10, Companies Act 1956
d. 20, Companies Act 1956
Ans - a Initial Public Offering (IPO) means
Ans - c that an unlisted company makes to
Match the following: .... the public for the first time ..... (i) a
Find the odd man out from the fresh issue of securities, (ii) offers its
i) Classification of Assets a. following: existing securities for sale
Narasimham
ii) Allonge b. Endorsement a. National Bank for Agriculture and a. Only (i)
iii) Funds Transfer c. EFT Rural development b. Industrial b. Only (ii)
iv) Crossed cheques d. Collecting Finance Corporation of India c. c. Either (i) or (ii)
banker Industrial Investment Bank of India d. Both (i) and (ii)

a. i-A,ii-B,iii-C,iv-D d. IDBI bank Ans - d

b. i-D,ii-C,iii-A,iv-B
c. i-A,ii-D,iii-B,iv-C Ans - d
d. i-B,ii-A,iii-C,iv-D The legal status of a mutual fund is
in the form of a .....
Ans – a Which amongst the following is not
term deposit issued by commercial a. Partnership firm
Which of the following is not true in banks? b. Proprietorship
respect of Joint Hindu Family? c. Joint stock company
a. Current account d. Trust
a. It is governed by two schools of b. Fixed deposit
Hindu law – Dayabhaga & Ans - d
Mitakshara c. Recurring deposit
d. Reinvestment deposit Sales of an MSE unit for the previous
b. Under Mitakshara, every year were Rs.200 lac. These are
son/daughter of a coparcener Ans - a projected at Rws.300 lac for next
acquire a right in JHF by birth c. year. As per Nayak Committee, the
Under Dayabhaga School he/she level of minimum bank working
acquires the right in JHF only after Find the odd man out from the capital limits to be sanctioned would
father’s death following: be .....

a. Non resident external account a. Rs.40 lac

9
b. Rs.60 lac Under National Electronic Funds
c. Rs.20 lac Transfer (NEFT), bank to afford
d. Rs.100 lac credit to beneficiary accounts
immediately upon completion of a
Ans - b batch or else return the transactions
within ..... hours of
completion of batch settlement, if
A forward exchange contract is a firm credits are unable to be afforded
contract for the purchase/sale of a
specified quantity of a a. immediately
stated foreign currency at a b. half an-hour
predetermined exchange rate c. one hour
between the bank and its ..... (i) d. 2 hours
exporters, (ii) importers Ans - d
a. Only (i)
b. Only (ii) The difference between ATM card
c. Either (i) or (ii) and Debit card is .....
d. Both (i) and (ii)
a. Both are same and no difference
Ans - d
b. ATM card can be used in both
online transactions, POS and ATM
Forfaiting enables the exporter to withdrawals where as Debit cards
avoid the following risks ..... (i) can be used only for ATM withdrawls
interest-rate risk, (ii) currency
risk, (iii) credit risk and political risk c. Debit card can be used in online
transactions, POS transactions and
a. Only (i) and (ii) ATM withdrawals where as ATM
cards can be used only for ATM
b. Only (i) and (iii) withdrawals
c. Only (ii) and (iii)
d. (i), (ii) and (iii) d. ATM card is used in POS
terminals only whereas Debit cards
Ans - d can be used in all type of
transactions
A computer network is used for Ans - c
which of the following?
a. To share date Which of the following is an Example
b. To share software for Pre paid card? (i) Travel card, (ii)
c. To share hardware Credit card, (iii) Gift card
d. All the above
a. Only (i) and (ii)
Ans - d
b. Only (i) and (iii)
c. Only (ii) and (iii)
Those terminals that are attached to d. (i), (ii) and (iii)
a server in a computer network
system, are called ..... Ans - b
a. CPU, Nodes Clients
b. Only CPU and Clients A Fund of Funds is a scheme that
c. Only clients and nodes invests primarily .....
d. Only CPU and nodes
a. in money market instruments
Ans - c b. in other schemes of the same
Which of the following statement is mutual fund or other mutual funds
false? c. in the bullion market
d. only in primary market
a. In Stored value card monetary
value is stored in the card itself Ans - b
b. In Stored value card credit limits
are generally provided by the card Who fixes the insurance premium
issuer rates for some of the general
insurance products?
c. Stored value card is a prepaid
card and card issuer is not a bank a. SEBI
but a service provider d. In prepaid b. Insurance Regulatory
card the value of the card lying in the Development Authority
deposit account linked at the back c. Tariff Advisory Committee
end d. All the above
Ans - b Ans - c
Insurance policy taken by a business
firm on the life of very important
person to project the
firm against financial loss, is called
.....
a. Master policy
b. Keyman policy
c. VIP Protection policy
d. Umberrima fides
Ans - b
To address customer grievances in
respect of insurance contract on
personal lives, there is an
institution called......
a. Insurance Ombudsman
b. Insurance regulator
c. Insurance Intermediary
d. Insurance Regulatory and
development Authority
Ans - a
The minimum capital to start a new
Insurance company in India is .....
a. Rs.100cr
b. Rs.75cr
c. Rs.50cr
d. Rs.10cr
Ans - a
Your branch has sanctioned cash
limit of Rs.12 lac to M/s United
Pharmacy. As at the close of July 31,
it has been carrying stocks worth
Rs.9 lac, sundry creditors of Rs.3 lac
and book debts of Rs.6 lac. Bank
has prescribed a margin of 25% on
stocks and 30% on book debts, what
is the maximum amount that can be
withdrawn in the cash credit limit?
a. Rs.8.70 lac
b. Rs.8.30 lac
c. Rs.12 lac
d. Rs.6.75 lac
Ans - a
If there is default of repayment by the
buyer in case of factoring and the
factor is able to
recover the amount from the seller, it
is called .....
a. Non-recourse factoring
b. Without recourse factoring
c. Recourse factoring
d. Bills discounting
Ans - c
A bank can exercise its right of
& general lien u/s 171 if (a) the goods
are received in normalcourse of
business (b) in the capacity of a
banker (c) whether as security for
loan or for safe custody (d) the loan
is due for recovery.
a. a to d all correct
10
b. a, b and c correct
c. a, b and d correct
d. b, c and d correct
Ans - c
The rule in Clayton case becomes
applicable in banking transactions in
the following cases (a) when death of
a customer takes place (b) when the
partner retires (c) when the
guarantor withdraws his guarantee
(d) when the director of a company
dies who has been operating the
account.
Ans - b
Which of the following is not true in
respect of Common Seal?
a. Common Seal of the Company
can only be of metal and not a
rubber stamp
b. Fact that it is a common seal &
name of the Company should be
engraved in it in legible characters in
English only
c. Common Seal can be affixed only
with the authority of the Board of
Directors as provided in AoA
d. 60 days from the date of creation
of charge
Ans - c
....
The role of banking ombudsman is;
a. resolution of complaints against
banks regarding deficiency in
services b. it is an external agency
includes mediation persuasion and
adjudication c. it is an external
agency having independent identity
d. all the above

a. a, b and c only d. Subsequent Board resolution will Ans - d

b. b, c and d only not validate documents where
c. a, c and d only Common Seal is affixed without
d. a to d all Board of Directors Authority Who can't participate in Call/Notice
Money Market?
Ans - a Ans - b
.... a. SCBs
X received a bearer cheque from Y b. Co-Operative Banks
for valuable consideration and in Pledge of movable assets by a c. RRBs
good faith. Actually Y had company can be searched at ..... d. PDs
stolen this cheque from Z. X would
get title of ..... a. Register of Charges maintained by Ans - c
a Company at the Registered Office ....
a. A holder only b. Registrar of Companies of the
b. A holder for value State where Registered Office of the FERA was replaced by FEMA with
c. A holder in due course Company is situated effect from .....
d. An endorsee c. Both a and b
d. Neither a nor b a. 01.01.1999
Ans - c b. 01.06.1999
Ans - a c. 01.01.2000
\ d. 01.06.2000
The no.of which component of Search for Corporate guarantee
Central Board of Directors of RBI, given in relation to any other Ans - d
does not match? corporate body can be made at ....

a. Governor-1 a. Register of Guarantees The tenor of issue of CDs can be

maintained by a Company at the upto ..... months.
b. Dy. Governors-6 Registered Office
c. Directors-15 b. Registrar of Companies of the a. 3
d. None of the above State where Registered Office of the b. 6
Company is situated c. 9
Ans - b d. 12
c. Both a and b
d. Neither a nor b Ans - d
In the balance sheet of a bank, the
off-balance sheet items are shown Ans - a ....
as ..... ....
There are ..... types of possible
a. Assets Which of the following charge over errors during screening of ideas.
b. Liability assets of the company is not
c. Asset or liability as per its required to be registered with a. 1
nature Registrar of Companies? b. 2
d. Notes to the balance sheet c. 3
a. Equitable Mortgage d. 4
Ans - d b. Hypothecation
c. Pledge Ans - b
Out of the following, which does not d. Charge on Book Debts
match?
Ans - c One of the objective of Feature
a. A cheque is received by a trust as .... improvement are .....
donation from Mr. X - Trust is a
holder only A charge created on the assets of a. Reliability
the Company is required to be b. Safety
b. A cheques is given by Mr. X to registered with RoC within how many c. Aesthetic appeal
Mrs. Y as gift on her marriage – Y is days? d. Speed
a holder in due course c. X delivers
to Y a bearer cheque after getting a. 30 days from the date of sanction Ans - b
the value from Y - Y is a holder in b. 60 days from the date of sanction
due courses. d. A finds a cheque c. 30 days from the date of creation
drawn in favour of B - A is not holder of charge

11
An audiocassette manufacturer Ans - b Instead of 4P, which is used for
enters into fax machines or diet Marketing services?
products businesses is an
example of ..... Which of the following is true when a. 5P
Death/ insolvency/ Retirement or b. 6P
a. Concentric diversification Expulsion of any partner takes place c. 7P
b. Horizontal diversification in a Partnership firm? d. 8P
c. Conglomerate diversification
d. None of the above a. Firm is compulsorily dissolved Ans - c
b. Firm is reconstituted
Ans - c Book debts can be financed by .....
c. Continuation of the Firm depends
upon the provisions made in the a. Factoring
Minimum and maximum number of Partnership Deed d. Both b or c b. Forfeiting
share holders in a public limited c. Both a and b
company? Ans - d d. None of these
....
a. 2, 50 Ans – c
b. 10, 50 Which of the following is the
c. 7, no limit instrument of payment called Plastic INDONET was set up by .....
d. 7, 50 Money? (i) Debit card, (ii) Credit
card, (iii) Banker's cheque a. RBI
Ans - c b. CMC Ltd
a. Only (i) and (ii) c. TCS
b. Only (i) and (iii) d. None of the above
The data processing NEFT clearing c. Only (ii) and (iii)
centre National Clearing Cell (NCC), d. (i), (ii) and (iii) Ans - b
of the RBI is located at?
Ans - a
a. New Delhi A CP is a/an ..... instrument.
b. Mumbai The T-bill is quoted in the secondary
c. Calcutta market with the minimum tradable a. Secured
d. Chennai amount of Rs....... b. Unsecured
c. Both a & b
Ans – b a. 100 d. None of these

CHIPS started its operation in ..... b. 10000 Ans - b

c. 25000 ....
a. 1960 d. 50000
b. 1970 Which is/are not correct? Travelers
c. 1980 Ans - c cheques are ..... (i) Transferable, (ii)
d. 1990 .... Not transferable, (iii)
Transferable provided transferee is a
Ans - b In Housing Loan, if EMI is not paid hotel, departmental store or a bank
on due date, penal interest at ..... %
will be charged a. Only (i) and (ii)
In credit cards, the period of interest normally.
free credit ranges from ..... days. b. Only (i) and (iii)
a. 2 c. Only (ii) and (iii)
a. 15 to 50 b. 3 d. (i), (ii) and (iii)
b. 16 to 51 c. 4
c. 15 to 51 d. 5 Ans - c
d. 16 to 50
Ans - a
Ans - c Which of the following are part of
Under the Banking Ombudsman Public Sector Banks ? (i) State Bank
scheme an arbitrator is separately of Hyderabad, (ii) Central Bank of
In service sector, small enterprises appointed by India, (iii) Regional Rural Bank,
investment in equipment is sponsored by a nationalized bank
a. Banking ombudsman himself
a. Less than 25 lakhs b. RBI a. Only (i) and (ii)
b. 10 Lakhs to 2 Crores c. GOI-MOF b. Only (i) and (iii)
c. 25 Lakhs to 5 Crores d. GOI-Law ministry c. Only (ii) and (iii)
d. 5 Crores to 10 Crores d. (i), (ii) and (iii)
Ans – d
Ans - b A settlement system in which the Ans - d
processing and final payment of
funds transfer instructions
What are we going to do? And, how takes place continuously, is called Travellers cheques are payable to
are we going to do? In which of the ..... .....
following categories these two
questions fall? a. debit clearing system a. Bearer
b. credit clearing system b. Order
a. Researching c. national clearing system c. Named payee only
b. Planning d. real time gross settlement d. All of the above
c. Controlling
d. Managing Ans - d Ans – b

12
Which among the following defines
a non performing asset?
a. In a loan account, the principal
due has not been paid for more than
ninety days b. In a loan account, the
interest due has not been paid for
more than ninety days c. Both (a.
and (b. as mentioned above
d. Assets that have not
commented upon by the
auditors
Ans - c
Which among the following
committees had recommended
Income Recognition and assets
classification norms?
a. Rangarajan committee
b. Goiporia committee
c. Narasimhan committee
d. Jankiraman committee
Ans - c
What do you mean by the term
called as “DRT”, when it comes to
recovery of bank dues?
a. Debt Recovery Tribunal
b. Debtor recovery tribunal
c. Debt reminder tribunal
d. Debt recovery tariff
Ans - a
Which of the following has
introduced “Banking Ombudsman” in
our country?
a. Reserve Bank of India
b. Indian Bank’s association
c. National Institute of Bank
Management
d. Indian Institute of Banking and
Finance
Ans - a
Banking Ombudsman scheme has
been introduced under the provisions
of .....
a. Reserve Bank of India act
b. Banking regulation act
c. Indian contract act
d. Consumer protection act
Ans - b
What is the maximum period of time
after which a customer of a bank can
contact Banking Ombudsman, if he
does not receive satisfactory
response to his complaint?
a. One month
b)Two months
c. Three months
d. One year
Ans - b
The consequences of errors in
A complaint can be submitted before computerised systems are more
Banking Ombudsman within serious than in manual systems
______of final decision by because .....
the bank?
a. Computer systems process more
a. Two months data
b. Three months
c. Six months b. Errors in computer systems are
d. Twelve months generated at high speed, and the
been cost to correct may be high c. Users
bank Ans - d of computer systems perceive the
computer outputs to be always
correct d. All of above
In the term “CIBIL’, what do you
mean by “B”? Ans - d
a. Bank
b. Bureau Compared to a manual system, in a
c. Borrower computer system .....
d. Bench
a. The methodologies for
Ans - b implementing controls change b.
Basic controls objectives change
c. Control objectives are more
Which committee has recommended difficult to achieve
financing to self help group? d. All of above
a. Kalia committee Ans - d
b. Narasimhan committee
c. Vasu committee Which of the following statements
d. Goiporia committee are not correct? (i) In India, foreign
exchange regulations are
Ans - a administered by Reserve Bank of
India, (ii) Reserve Bank of India
maintains the external value of
When a currency is converted into rupee, (iii) Reserve Bank of India
any other currency without any limit does not deal in foreign exchange
and for any purpose, it directly with the public
is called as .....
a. Only (i) and (ii)
a. Fully convertible b. Only (i) and (iii)
c. Only (ii) and (iii)
b. Partially convertible
c. Controlled convertible d. (i), (ii) and (iii)
d. Not at all convertible
Ans - a
Ans - a
As regards deposit insurance which
Which of the following committees of the following statement/s is/are
has recommended for capital True? (i) insurance cover for
account convertibility in our country? deposits (demand and term) upto
Rs.1,00,000.00 is available, (ii)
a. A T Pannirselvam insurance cover is provided by
b. S. Padmanabhan general insurance companies, (iii)
c. S. Rangarajan committee insurance premium is to be paid
d. S. S. Tarapore committee semi annually by the bank and not
customer/s.
Ans - d
a. i and iii
b. ii
What is the necessity of foreign c. ii and iii
capital for a developing country like d. iii
India?
Ans - a
a. It encourages savings in the
country
b. It is helpful to solve the problem of State which of the following
balance of payment statement/s is/are True? (i) open
ended schemes are offered by
c. It is helpful for economic mutual funds, (ii) banks cannot setup
development of a developing country mutual funds, without RBI’s
d. All the above permission, (iii) bank branches used
as a distribution channel for
Ans - d insurance products is called
bancassurance.
13
a. Only (i) and (ii) c. retailers management
b. Only (i) and (iii) Ans - d d. customer relationship
c. Only (ii) and (iii) management
d. (i), (ii) and (iii) What are the powers of Reserve
Bank of India for conducting scrutiny Ans - d
Ans - d of a Bank? (i) The RBI is empowered
to conduct scrutiny of affairs of a In buyer decision process,
Bank in addition to regular percentage of potential customers in
One of the key area of Asset Liability inspection, (ii) The scrutiny officer a given target market is called
Mangement of banks is the interest has the same powers as the ......
management. Banks inspecting officer of RBI, (iii) A copy
analyse interest trends based on ..... of the scrutiny report would be a. customer funnel
produced to the Bank b. company funnel
a. gap analysis c. marketing funnel
b. value at risk a. Only (i) and (ii) d. retailers funnel
c. duration analysis b. Only (i) and (iii)
d. All of the above c. Only (ii) and (iii) Ans - c
d. (i), (ii) and (iii)
Ans - d Aggregate value of customer's base
Ans - d is classified as .....

Provisions of SRFAESI Act,2002 is a. shareholder value

not applicable to .....
a. a pledge of movables as per Sec
172 of Indian Contract Act
b. any interest for repayment (upto
Rs one lakh for secured loans and
upto Rs ten lakhs for
unsecured loans
c. any one of a or b
d. both a and b
Ans - d
Securitisation is the process of
acquisition of loans classified as .....
a. standard assets
b. book debts
c. non performing assets
d. any one of the above
Ans - c
What is a Demat a/c ?
a. acronym for Demat
dematerialization of shares
b. dematerialization is a paperless
book entry form of shares c. demat
accounts can be opened by banks d.
all of the above
Ans - d
In periods of boom, which leads to
economic instability Reserve Bank
does not resort to ..... (i)
Forms of direct marketing includes b. base value
..... (i) direct mail marketing, (ii) c. retention value
catalog marketing, (iii) d. marketers base value
personal selling
Ans - a
a. Only (i) and (ii)
b. Only (i) and (iii) Benefits in Core Banking is .....
c. Only (ii) and (iii)
d. (i), (ii) and (iii) a. Reliable centralised data recovery
Ans – d b. Data warehousing and data
mining technologies c. Integrated
customer centric services d. All of
Which of the following sections do above
not deal with the amalgamation of a
bank? (i) Section 44, (ii) Section 44A, Ans - d
(ii) Section 45
a. Only (i) and (ii) Terminals connected to a server is
b. Only (i) and (iii) known as .....
c. Only (ii) and (iii)
d. (i), (ii) and (iii) a. Clients
b. Nodes
Ans - b
c. Both (a) & (b)
Marketing messages that are based d. None of these
is to respect consumers wishes and
willingness is classified as Ans - c
......
a. permission marketing For uninterrupted power supply in
b. supplier marketing branch computerisation, the following
c. customer specified marketing device is used .....
d. activity marketing
a. Online UPS
Ans - a b. Offline UPS
c. Convertor
How many members can be d. Generator
nominated as Board of Directors on
the Board of a Bank ? Ans - a

Selling of first class securities in its a. 12 In ring topology .....

precession in the market, to reduce b. 13
the supply of money as a measure of c. 14 a. Each node is joined to the central
open market operations, (ii) Bying of d. 15 node by a separate link b. Devices
approved securities in the market as are connected in a closed loop
a measure of open market Ans - a
operations, (iii) Increasing the bank c. Information is passed from one
rate as a measure of open market Process of managing information node to the other in series d. Both b
operations about customers to maximize loyalty &c
is said to be .....
a. Only (i) and (ii) Ans - c
b. Only (i) and (iii) a. company relationship
management
c. Only (ii) and (iii) b. supplier management
d. (i), (ii) and (iii)

14
One advantage a non–profit has The term booting is not used in
when opening a private social Ans - d connection with ..... (i) activation of
network is ..... internet, (ii) activation of
In case of a micro enterprise, the ATM, (iii) activation of the smart card
a. its tax exempt status makes the maximum investment in plant and
start up cost of a private social machinery is Rs. & in a. Only (i) and (ii)
network more affordable. equipment Rs. ..... b. Only (i) and (iii)
b. its supporters tend to spend more c. Only (ii) and (iii)
time using social networks. a. Rs.1O lac, Rs.10 lac d. (i), (ii) and (iii)
c. that it has an immediate user base b. Rs.10 lac, Rs.25 lac
of people interested in the cause. c. Rs.25 lac, Rs.10 lac Ans - d
d. its supporters have a higher d. Rs.25 lac, Rs.25 lac
tolerance for marketing messages.
Ans - c Windows software that is used for
Ans - c managing text through the word
What is the record preservation processing is .....
period under RTGS?
...... concerns with pricing policies for a. MS Word
late entrants to a market. a. 5 years b. MS Power Point
b. 5 to 8 years c. MS Access
a. Marketing skills c. 10 years d. MS Excel
b. Marketing research d. 20 years,
Ans - a
c. Elasticities Ans - c
d. Market penetration
Which of the following guidelines are ...... is the best promotion tool in any
Ans - d applicable in connection with shortfall type of marketing.
in lending to priority sector? (i) Any
shortfall in achieving sub-target a. Creativity
Under the provision of Reserve bank under SSI sector, an equivalent b. Communication
of India (Note Refund) Rules, 1989, amount should be invested with c. Telecalling
the exchange of mutilated notes is SIDBI, (ii) An equivalent amount of d. Publicity
required to be done by the branches shortfall under agriculture sector
of : should be invested with RIDF, Ans - d
Interest of RIDF investment is
a. State bank of India only payable at 2%
b. Nationalised bank only Which of the following penalties, the
c. Public Sector banks a. Only (i) and (ii) RBI can impose as a bank incase it
d. Scheduled Commercial banks b. Only (i) and (iii) defaults in maintaining the required
including Regional Rural banks c. Only (ii) and (iii) CRR? (i) It will impose penal interest
d. (i), (ii) and (iii) upto 5% over the bank rate, (ii) It can
Ans - c impose a fine on the officer
Ans - a responsible for default, (iii) RBI can
prohibit the schedule Bank from
Pricing that starts with an ideal The system that has a very high receiving any fresh deposits
selling price is known as ..... frequency radio signal to transmit
data through space, is known a. Only (i) and (ii)
a. Value based pricing b. Only (i) and (iii)
b. Going-rater pricing as ..... c. Only (ii) and (iii)
c. Skimming pricing d. (i), (ii) and (iii)
d. Target pricing a. optical fibre
b. Coaxial cable Ans - d
Ans - d c. microwave system Interest rate futures were launched
d. modem with a minimum value of Rs. .....
Trustee securities refer to ..... lakh/s.
Ans - c
a. securities issued under the a. 1
provisions of Section 20 of Indian Mr. x wants a demand draft striking b. 2
Trust Co the word ‘Order’ and writing the word c. 3
b. securities issued in trust of other ‘Bearer’. Can bank help him ? d. 4
c. any security
d. All of the above a. Bearer Draft is unlawful under Ans - b
section 31 of RBI ....
Ans - a The banking ombudsman scheme
b. Bearer Draft can be issued like a 1995 was amended in
cheque
Which of the following is an c. Signature of the payee should be a. 2000
important aspect of creating blogs attested on the back of draft by the b. 2001
and posting content? (i) Using a witty issuing branch
user name, (ii) Posting at least once c. 2002
a month to the blog, (iii) Social Media d. Attestation of the signature of the d. 2004
Optimization payee on a separate slip of paper by
bank (without striking out the word Ans - c
a. Only (i) and (ii) ‘Order’ on draft)

b. Only (i) and (iii) Ans - d BCSBI has been set up on the
c. Only (ii) and (iii) recommendations of ..... Committee.
d. (i), (ii) and (iii)

15
a. Jankiraman d. We cannot accept a mandate from
b. Narasimhan an illiterate customer at all. Ans - b
c. Tarapore
d. Rangarajan Ans - b HNI stands for .....

Ans - c Data related to crime does not a. Hindustan National Investment

incorporate b. High National Investment
c. High Net worth Individual
a. Data Didling d. None of the above
Inter-Bank Term money means,
borrowings among banks for ..... b. Data Spying Ans - c
c. Data Leakage
a. 1 day d. Data Mining Which of the following is the internal
b. 2-14 days factor influencing pricing?
c. more than 14 days Ans - d
d. None of these a. Price elasticity of the demand of
the product
Ans - c CHIPS system is set-up in ..... b. Competitors’ policy

Under forfaiting, the exporter is able a. USA c. Bargaining power of suppliers

to transfer ..... risk. b. UK d. Social considerations
c. Hong Kong
a. Credit d. Brazil Ans - a
b. Political
c. Interest Rate Ans - a
d. All the above Markup pricing comes under which
Which of the following is not a of the pricing method?
Ans - d function of RBI?
a. Value-based pricing
The combination of two or a. Managing Govt Debt b. Cost-based pricing
Companies into a single Company b. Bankers to Govt c. Competition-based pricing
where one survives with it’s name (or c. Raising deposit from public d. Going rate pricing
a combined new name. and others d. Lender of last resort to banks
lose their corporate existence is Ans - b
known as Ans - c
A charge created on the assets of
a. Merger The management level responsible the Company is required to be
for making long range strategic registered with RoC within how many
b. Diversification decisions about which days?
c. Combination products and services to produce is
d. Amalgamation the ..... a. 30 days from the date of sanction
b. 60 days from the date of sanction
Ans - b a. Technology Level c. 30 days from the date of creation
b. Application Level of charge
A formal and mutually agreed c. Operational Level d. 60 days from the date of creation
commercial collaboration between d. Top Level of charge
Companies is known as
Ans - d Ans - c
a. Merger
b. Amalgamation Which is the main fund transfer Which one of the following doesn't
c. Strategic Alliance system in the USA? come under the functions of RBI in
d. Subsidiary India?
a. Bankwire
Ans - b a. Regulating the Money Market
b. Fedwire b. Supervision over NBFCs
c. POS c. Supervision over FIIs
National Clearing Cell of the RBI is d. None of these d. Management of Payment System
located in .....
Ans - b Ans - c
a. Mumbai
b. New Delhi Which of the following sets refers to
c. Calcutta Export credit target for domestic the order or sequence of marketing
d. Chennai commercial banks is ..... of ANBC. management functions?

Ans - a a. 10 % a. Control – implementation – market

b. 12 % planning
Mandate given by the illiterate c. 20 %
account holder should be d. None of these b. Market planning – control –
implementation
a. Attested by manager who confirms Ans – d c. Implementation – control – market
and certifies thee same. planning
b. Attested by Notary public or Export credit target for foreign banks d. Marketing planning –
Magistrate. is ..... of ANBC. implementation - control

c. It is enough if we ask for a a. 10 % Ans - d

Mandate letter with LTI which has to b. 12 %
be attested an authorised official. c. 20 %
d. None of these

16
Which of the following is not true in b. Relevant Array of Inexpensive
respect of Joint Hindu Family? a. SEBI Disks
b. RBI c. Relevant Array of Inexpensive
a. It is governed by two schools of c. FMC Drives
Hindu law – Dayabhaga & d. PFRDA d. Redundant Array of Inexpensive
Mitakshara Drives
Ans – d
b. Under Mitakshara, every Ans - a
son/daughter of a coparcener In ECS-Debit ..... (i) One account
acquire a right in JHF by birth c. What is the risk weightage for capital debited, number of accounts
Under Dayabhaga School he/she adequacy purpose, in case of credit credited, (ii) One account
acquires the right in JHF only after card ..... credited, number of accounts debited
father’s death
a. 25% a. Only (i)
d. All members of the family are b. 50% b. Only (ii)
called coparceners including mother c. 100% c. Either (i) or (ii)
and daughter-in-law d. 125% d. Both (i) and (ii)

Ans – d Ans - d Ans - b

Minimum Bank Rate is .....

Two firms are said to be identical BCC in an email denotes ..... (i) blind
when a. 3% carbon copy, (ii) black carbon copy
b. 4%
a. Partners of the two firms are same a. Only (i)
c. 5% b. Only (ii)
b. When the two firms have some d. None c. Either (i) or (ii)
common factors c. When the activity d. Both (i) and (ii)
is same d. When the address is Ans - d
same Ans - a

Ans – a Except one of the following, others

are part of Public Sector Banks: Expand - ENIAC
The mental act, condition or habit of
placing trust or confidence in another a. State Bank of Hyderabad a. Electronic Numerical Integrator
shows which of the following b. Central Bank of India and Calculator
options? b. Electronic Number Integrator and
c. Regional Rural Bank, sponsored Calculator
a. Motive by a nationalized bank d. None of
b. Belief these c. Electronic Numerical Integrator
c. Behavior and Coumputer
d. Attitude Ans - d d. None of the above
Which is not a major promoter of
Ans - d CIBIL? Ans - a

A joint account is operated by A and a. HDFC

B as both or survivor. A dies and a b. SBI Expand - RDBMS
cheque signed by A and B are c. RBI
presented for payment. The cheque d. Trans Union International Inc. a. Responsive Data Base
Management System
a. Can be paid. Ans - c b. Relational Data Base
b. Can be paid after getting Management System
confirmation from B. Which one is not a fund based c. Responsive Data Base
c. Can be paid after getting the service? Maintenance System
consent of the legal heirs of A. d. Relational Data Base Maintenance
d. None of the above a. Short term finance System
b. Letter of Credit
Ans - b c. Bill discounting Ans - b
d. Export credit IP address is a numerical label
Which of the following is not true in assigned to each ..... (i) Computer,
respect of Guardian to Minor? Ans - b (ii) Printer

a. Guardian of Illegitimate minor child Which of the following can't be a. Only (i)
– Mother included in the definition of "Financial b. Only (ii)
Intermediary"? c. Either (i) or (ii)
b. Guardian of Hindu married minor d. Nither (i) nor (ii)
girl – Girl’s Father-in-law, If Husband a. Financial Institutions
Minor c. Testamentary Guardian b. Banks Ans - c
becomes effective after death of c. NBFC & Mutual Funds
father and mother d. Natural d. None of these Which of the following sections
Guardian varies from religion to prohibits a bank from granting any
religion Ans - d loan (secured or unsecured), to any
of its Directors or any other firm or
Ans - b Expand - RAID company in which such Director has
.... vested interest?
a. Redundant Array of Inexpensive
Who is the Governing Body for the Disks a. Section 12
New Pension Scheme? b. Section 18

17
c. Section 20
d. Section 21
Ans - c
If NPA is purchased from X bank by
Y Bank and Y bank wants to sell it to
Z bank, what is the time
period for which the account should
remain with bank Y .....
a. 6 months
b. 12 months
c. 15 months
d. 18 months
Ans - a
In case of component ‘Urban Self-
Employment Programme’ (USEP) of
SJSRY, What should be the
minimum percentage of women
beneficiaries?
a. 30%
b. 20%
c. 15%
d. 12%
Ans - a
Which of the following are the
restrictions on loans and advances
under Section 20? (i) No bank shall
grant any loans or advances on the
security of its own shares, (ii) No
bank will grant any loan or advances
to or on behalf of any Director or to a
firm in which the Director has vested
interest, (iii) No bank would grant
loan to any individual in respect of
whom any of its Directors is a partner
or guarantor
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
Cheque is payable on .....
a. Demand
b. Usance
c. Fixed future date
d. After Sight
Ans - a
A bearer cheque is issued by one
Mr. Ashok in favour of Aman, but he
forgets to hand over the cheque to
Aman. Aman however, picks up the
cheque in his absence from his table.
Whether the negotiation has taken
place?
a. No, endorsement is also needed
b. No, delivery is also needed
c. No, endorsement and delivery
both required
d. Yes, the cheque is drawn in his
favour
Ans - b
Under the Nayak Committee
recommendations, the quantum of
working capital limits from the bank
is minimum ..... of the projected
annual sales.
a. 5%
b. 15%
c. 20%
d. 25%
Ans - c
Voting Right of the shareholders with
total Rights of all shareholders of a
Bank are limited to
......
a. One per cent of total Rights
b. Two per cent of total Rights
c. Five percent of total Rights
d. Ten percent of total Rights
Ans - a
Mr. X mortgages his bungalow to
Bank of India to secure a cash credit
limit of Rs. one lakh. While the
account is drawn to the extent of Rs.
50,000/-. HDFC, who had notice of
the first mortgage, advance Rs.
75,000/- against the same property
and gives notice to Bank of India of
the second mortgage in his favor.
Subsequent to this notice, Mr. X
borrows further Rs. 50,000/-under
the cash credit limit up to the full
stipulated limit.
a. The entire borrowing to the extent
of Rs. one lakh will receive priority
although part of it was drawn
subsequent to the notice of the
second mortgage.
b. The loan of Rs. 75,000/- from
HDFC will have the priority over the
2nd installment drawn by Mr. X from
the Bank.
c. Both the facilities will have the
same priority.
d. None of the above
Ans - a
Central Bank of India, is a
nationalized bank. It is classified as
.....
a. Co-operative Society
registered under the Co-operative
Societies Act
b. Body corporate constituted
under special statute/s
c. Company registered under the
Indian Companies Act,1956
d. either b or c
Ans - b
As regards co-operative banks, RBI
does not .....
a. issue license
b. permit Forex business
c. appoint/approve statutory auditors
d. conduct inspection
Ans - c
A borrower can legally create any
number of mortgages on his
property. The mortgages, however,
will rank in priority accordingly to the
dates of the mortgage.In this context
the following statement is true :
a. A subsequent mortgagee, say a
third mortgagee by redeeming a prior
mortgage. Say the first mortgagee is
entitled to lack (fasten) his third
mortgage to the first mortgage so
redeemed to the detriment of the
intermediate mortgagee; i.e., the
second mortgagee.
b. No subsequent mortgage by
paying off a prior mortgage whether
with or without notice of an
intermediate mortgage, acquires
thereby any priority in respect of his
original security.
c. A banker who has made an
advance on second mortgage can
not take over the first mortgage
by paying off the dues to the first
mortgagee.
d. None of the above
Ans - b
The maximum Bank Rate is .....
a. 3%
b. 6%
c. 7.5%
d. None of the above
Ans - d
Bank rate policy, open market
operations, variable reserve
requirements and statutory liquidity
requirements as measures of credit
control are not classified as .. (i)
Quantitative methods, (ii)
Quantitative methods, (iii) Weighted
average methods
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - a
The Reserve Bank of India Act,1934
does not deal with .....
a. financial supervision of
banks/financial institutions b. policy
18
planning of cooperative banks c. Promotion is an exercise of The small companies/organisations
management of forex/forex reserves maintaining contact with the that have been created exclusively to
consumer at different levels so as to deal in govt. securities are called:
d. capital management and business ......
of banks a. NBFCs
a. enhance customer relationship b. mutual funds
Ans - b b. lure the customer in to buying the c. primary dealers
products d. asset management companies

CRR and SLR are not applicable to
.....
a. a certificate of deposit
b. credit balance in a cc account
c. a flexi deposit
d. a commercial paper
Ans - d
Bancassurance is .....
a. an insurance scheme to insure
bank deposits
c. prevent customer from being Ans - c
critical of the firm d. none of the
above As a cover for bank note issue, RBI
keeps some minimum value of total
Ans - a approved assets in the form of:
Segmentation on basis of values and
attitudes and behavioral patterns is a. cash and bank balances
an example of .....
b. cash, gold coins and bank
a. geographic location balances
b. cultural factors c. gold coins, bullion and foreign
c. economic factors securities
d. political and legal factors d. all the above
Ans - b Ans - c

b. an insurance scheme exclusively

for the employees of banks Targeting affluent customers with For controlling inflationary or
luxurious goods is an example of ..... deflationary situations in India, RBI
c. a composite financial service makes use of(which one is
offering both bank and insurance a. geographic segmentation excluded):
products d. a bank deposit scheme b. income segmentation
exclusively for employees of a. Cash Reserve Ratio
insurance companies c. psychographic segmentation b. Statutory Liquidity ratio
d. behavioral segmentation 96
Ans - c c. Open Market operations
Ans - b d. Liquidity adjustment facility

Comprehensive and organized Segmentation of international Ans - d

collection about individual prospect markets on basis of monetary
of customer including regulations is an example of .....
psychographic, geographic and A cheque drawn by a Power of
demographic data is called ..... a. geographic location Attorney holder is presented for
b. cultural factors payment. You come to known
a. premium database c. economic factors through reliable source that PA
b. customer database d. political and legal factors holder has died. Which of the
c. event database following action you will take?
d. rebate database Ans - d
a. Return the cheque as agency is
Ans - b Direct marketing through which terminated
products are sold directly to b. Pay the cheque as Principal is
customer on phone call is alive
Kind of direct marketing by which an classified as .....
offer, reminder or announcement is c. Pay the cheque after obtaining
sent to people at a. telephone marketing Principal’s confirmation d. None of
specific virtual or physical address is b. online marketing these
called ..... c. offline marketing
d. offline marketing Ans - b
a. direct mail marketing
b. kiosk marketing Ans - b
c. catalog marketing One of the objective of Style
d. premium marketing Upto how much amount loan can be improvement is .....
sanctioned by appropriate authority
Ans - a within powers delegated to him to a. Products' versatility
any relative of their own director or b. Aesthetic appeal
directors of other banks or relative of c. Durability
Major sources of ideas for product director of other bank? d. Convenience
development comes from ..... (i)
internal sources, (ii) a. up to Rs 25 lakh Ans - b
product lines extension, (iii) external b. Rs 25 lakh and above
sources c. Less than Rs 25 lakh How many types of diversification
are generally observed?
a. Only (i) and (ii) d. None of these as loan to relatives
b. Only (i) and (iii) of bank's directors can not be a. 2
c. Only (ii) and (iii) granted without RBI permission b. 3
d. (i), (ii) and (iii) c. 4
Ans - c d. 5
Ans - b
Ans - b

19
 d. (i), (ii) and (iii) b. Section 24
c. Section 3b
There are ..... stages of branding in Ans - b d. None
banking services.
a. 2 Ans - b
When it comes to new private sector
b. 3 banks, which amongst the following Find the odd man out from the
c. 4 is odd man out? following:
d. 5
a. Axis Bank Limited a. State Bank of Patiala
Ans - c b. ICICI Bank Limited b. State Bank of Indore
c. State Bank of Hyderabad
In which of the following product life c. Kotak Mahindra Bank Limited
cycle stages, sales are zero and the d. The Ratnakar Bank Limited d. State Bank of Bikaneer and Jaipur
company’s investment costs mount?
Ans - d Ans - b
a. Product development
b. Introduction New Bank of India merged with
c. Growth RBI is responsible for undertaking which of the following banks?
d. Maturity the following activities except .....
a. Central Bank of India
Ans - a a. Currency note issuing authority b. Canara Bank
b. Banker to the banker c. Indian Bank
c. Financial adviser to the d. Punjab National Bank
The central banking authority i.e. RBI government
in India , is performing two distinct d. Controller of capital markets Ans - d
roles in context of money market that
include: Ans - d
Which amongst the following banks
a. monetary control and banking Which of the following norms are is one among the private sector
supervision applicable to a new private sector banks classified as old private sector
b. issue of currency and bank? (i) The bank shall get its banks?
maintenance of CRR shares listed on the stock exchanges
within two years of licensing, (ii) A a. Axis Bank Limited
c. handling govt. business and minimum capital of Rs. 500 crore, (iii) b. HDFC Bank Limited
maintaining price stability d. banking The bank shall open at least 25 per c. Nainital Bank Limited
supervision and financial stability cent of its branches in unbanked d. Yes Bank Limited
rural centres
Ans - a Ans - c
a. Only (i) and (ii)
Introducing additional brands in an b. Only (i) and (iii)
existing product category is called as c. Only (ii) and (iii) A future is a ..... (i) standard contract
..... d. (i), (ii) and (iii) based on an agreement to buy or sell
an assets at a
a. Line extension Ans - d
b. Brand extension certain price at a certain time in
c. Multi brands The Banking Codes and Standards future, (ii) It is an obligation on the
d. New brands Board of India was registered on 18 buyer to purchase the underlying
February, 2006 under instrument, (iii) It is an obligation on
Ans - c ...... the seller to sell it

Which of the following statement is a. RBI Ac a. Only (i) and (ii)

correct regarding CAMELS b. Banking Regulation Act b. Only (i) and (iii)
Approach? (i) The Reserve Bank of c. the Societies Registration Act, c. Only (ii) and (iii)
India is the authority to decide 1860 d. (i), (ii) and (iii)
Ratings, (ii) The banks have been d. None of the above
classified into two categories for the Ans - d
purpose of Rating, (iii) For the Rating Ans - c
of Foreign banks compliance with When it comes to the regional
regulatory guidelines is significant centres of Reserve Bank of India,
The responsibility to make which amongst the following is odd
a. Only (i) and (ii) investment in various types of man out?
b. Only (i) and (iii) securities for a mutual fund lies with
c. Only (ii) and (iii) which of the following? a. Chennai
d. (i), (ii) and (iii) b. Hyderabad
a. sponsor c. Mumbai
Ans - d b. asset management company d. New Delhi
c. trustee
Which of the following are d. custodians Ans - b
characteristics of an equity share? (i)
it is called ordinary share also, (ii) it Ans - b
represents complete ownership of When it comes to nationalization of
the company, (iii) it provides voting six banks during the second stage on
right to the holder Which of the following sections of 15.04.1980, which among the
banking regulation act 1949 deals following is not true?
a. Only (i) and (ii) with the pension of statutory liquidity
b. Only (i) and (iii) ratio (SLR)? a. Andhra Bank
c. Only (ii) and (iii) a. Section 42 b. Punjab and Sind Bank

20

c. New Bank of India
d. Indian Overseas Bank
Ans - d
Currency note issue is one among
several functions of Reserve Bank of
India and which amongst the
following is not the responsibility of
RBI?
a. Issue of 2 rupee notes
b. Issue of 1000 rupee notes
c. Issue of one rupee notes
d. Issue of ten rupees notes
Ans - c
Which are the traditional functions of
Reserve Bank of India?
a. Issue of currency notes
b. Forex management
c. Functions like export assistance
and clearing house functions d. All
the above
Ans - d
Which amongst the following is not
the development function of Reserve
Bank of India?
a. Agriculture development
b. Promotion of industrial finance
c. Development of bill market
d. Open market operations
Ans - d
The financial system in our country
comprises of which amongst the
following?
a. Financial markets
b. Financial assets
c. Financial Intermediaries and
institutions
d. All the above
Ans - d
Which amongst the following is a
money market instrument?
a. Call money
b. Term money
c. Notice money
d. All the above
Ans - d
A Government Security is the
security which is issued by the
Government to raise a public loan
and issued in the form of ..... (i)
Bearer bonds, (ii) Promissory notes,
(iii) Stock certificates
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
A modem performs the function of
..... (i) Modulating binary data for
voice line transmission,
(ii) Demodulating the transmitted
data for computer processing, (iii)
Multiplexing of several signals
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - a
Under the powers derived from
Section 20, 21 and 21A, Reserve
Bank of India does not ..... (i)
manage the public debt and issue
new loans on behalf of the Central
and state Government, (ii) provide
refinance to NABARD in respect on
agriculture advances, (iii) regulate
flow of credit to the economy by
variation in the Statutory Liquidity
requirement and Cash Reserve Ratio
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - b
The desire to have a commodity or
service is called .....
a. Want
b. Utility
c. Goods
d. None of these
Ans - a
The holder of the card can purchase
goods and avail services, upto a
specified limit, from ..... (i)
Shops, Department Stores, Hotels,
Restaurants, (ii) Railway Stations,
Airlines etc, (iii) Emporiums
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
A company which pools money from
investors and invests in stocks,
bonds, shares is not called as ..... (i)
A bank, (ii) An insurance company,
(iii) Mutual Fund
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - a
What is Repo? (i) It is a method of
borrowing against certain securities
for a short period, (ii) The borrower
undertake a commitment to purchase
back the same securities after
specified period at predetermined
price, (iii) It is helpful in contracting
liquidity in the system
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - a
Credit cards are of standard size and
thickness and are embossed with the
following details .....
(i) Name of card holder, (ii) Card
number, (iii) Validity date
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
Communication technology .....
a. facilitates the processing of data
b. helps in transmission of data
c. enables decision support system
d. is a tool for data mining
Ans - b
The minimum percentage of Priority
Sector advances to be maintained by
foreign banks in India
with 20 and above branches .....
a. 40%
b. 18%
c. 32%
d. 60%
Ans - a
Book debts can be financed by .....
a. Factoring
b. Forfeiting
c. Both a and b
d. None of these
Ans - c
Encoding the contents of a message
in such a way that hides the contents
from outsider is not called as ..... (i)
encryption, (ii) decryption, (iii)
cryptography
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
21

Ans - c
Following kind/s of market exist on
the basis of geofrphical area ..... (i)
Retail Market, (ii) Local
Market, (iii) Global Market
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans – c
Loans to corporates directly engaged
in Agriculture and Allied Activities to
an aggregate limit of 2 crore is
covered under Prirority Sector as .....
advances
a. Direct Agriculture
b. Indirect Agriculture
c. Self Employment Scheme
d. Allied to indirect Agriculture
Ans - a
Attachment order is issued by ..... (i)
Income Tax Officer, (ii) Public Debt
Officer, (iii) Sales Tax
Officer
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - b
To take care of temporary liquidity
problems of central and state govt.,
what kind of loan is given by RBI?
a. Treasury bills
b. Dated securities
c. Short duration bonds
d. Ways and means advance
Ans - d
Section 7(1) of RBI Act concerns
with which of the following aspects?
a. RBI authority to regulate the banks
b. NABARD authority to regulate
RRBs
c. Govt. authority to issued directions
to RBI
d. RBI authority to issue directions to
banks in India
Ans - c
For collection of which of the
following, the collecting bank will get
protection ..... (i) A cheque
that does not bear any crossing
before it is handed over to the bank.
Bank puts its own stamp to present
the cheque for clearing, (ii) A
cheque, as first deposit in the newly
opened account after complying with
KYC guidelines, (iii) A cheque written
in two inks, two handwritings and two
scripts
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
Bank B makes payment of the
following cheque. For which of these
the bank will not get protection?
a. A cheque with one endorsement
as forged endorsement
b. A bearer cheque bearing an
endorsement in favour of X while
payment is received by Y without
endorsement from X
c. A cheque the amount of which has
been filled by the payee and was left
blank by the drawer d. A cheque
having amount in words as Rs:five
thousand while amount in figures
was left blank
Ans - a
Which of the following is an example
for Digital Banking channel? (i)
Mobile & Phone Banking, (ii) Internet
Banking, (iii) Branch Banking
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - a
Under National Electronic Funds
Transfer (NEFT), the customers can
complain to Ombudsman if
complaint is not resolved within days
.....
a. 15 days
b. 30 days
c. 45 days
d. 60 days
Ans - b
Which of the following is not the
growth strategies?
a. Intensive growth
b. Innovative growth
c. Integrative growth
d. Diversification growth
Ans - b
Banking operations in India are
governed mainly by ..... Act and .....
Act and the regulator of
banks ......
a. Banking Regulation Act, NI Act,
RBI
b. RBI Act, NI Act, RBI
c. Banking Regulation Act, RBI Act,
RBI
d. Banking Regulation Act, RBI Act,
SEBI
Ans - c
In which of the following situation,
bank shall issue a financial
guarantee? (i) For supply of goods
on credit basis, (ii) In favor of custom
authorities, (iii) In favor of tax
authorities
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
In banking reference, credit risk
refers to .....
a. default of a banker in sanctioning
credit limits to the borrower b. default
of a banker in keeping sufficient cost
at branch level c. default by a
borrower in repayment of banks dues
d. All of the above
Ans - c
Govt. regulates the banking system
by affecting the decision making by
RBI since ..... (a) Govt.
holds the entire share capital of RBI
(b) Govt. can give direction to RBI
u/s 7 (1) of RBI Act. (c) Govt. has
absolute powers over the banking
system
a. A to c all correct
b. A and b only are correct
c. B and c only are correct
d. A and c only are correct
Ans - b
In early stages computers were
being used as ..... Systems in
organization Fulfilling their own
requirements.
a. Stand-alone
b. Network Systems (LAN)
c. Satellite Network Systems
d. Microwave Systems
Ans - a
Under the impact of Information
Technology, large banks are shifting
their focus away from the
domestic market to the .....
a. Rural Area
b. Corporate Sector
c. Global Area
d. Government Deposits
22
Ans - c
Some banks are using mobile .....
mounted on trucks to offer regular
cash withdrawal like
pension payments at remote areas.
a. Cheque Dispenser Machines
b. ATMs
c. Cash Dispenser Machines
d. Both a and b
Ans - c
Smart card ..... (i) has an integrated
circuit with micrprocessor chip
embedded in it so that it
could perform calculations, maintain
records and act as electronic purse,
(ii) has built in facility for protection
against fraudulent operations, (iii)
can either be rechargeable or
exchangeable
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
The provisions in respect of removal
on ceiling on borrowing powers of
the Board of a public limited
company or subsidiary of a public
limited company, are given in
Section ..... of the Companies Act
2013
a. 125
b. 293
c. 180
d. 134
Ans - c
Ans - c
The mortgagor who has redeemed
the mortgage is entitled on
redemption to the following right .....
(i) To get back from the mortgagee,
the mortgage deed and all the other
related
documents, (ii) To obtain possession
of the mortgaged property, (iii) To
have the mortgaged property re
transferred at his cost to him or to
such third person as he may direct
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
Which of the following is not correct
in the context of dishonor of cheque
for insufficiency of funds?
a. To file the suit, holder is required
to give a notice to drawer within 30
days of receipt of information about
dishonor
b. To file the suit, the holder is to
give notice to draw to make payment
within 30 days of receipt of notice by
drawer
c. Court can impose fine up to
double the amount of cheque on the
drawer d. Drawer can be imprisoned
up to 2 years, if found guilty
Ans - b
National Payments Corporation of
India (NCPI) is owned by .....
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
A bill of exchange is different from a
cheque in the following context .....
(a) cheque is payable
on demand but BoE can be payable
on demand or in future (b) a cheque
is drawn on a specific bank and a bill
of exchange can be drawn on a bank
or some other person also (c) BoE
can be endorsed and crossed but a
cheque cannot (d)when cheque is
dishonored, notice of dishonor need
not be sent to drawer but in case of
BoE it is required to make him liable.
a. a to d all correct
b. a, b and c are correct
c. a, c and d are correct
d. a, b and d are correct
Ans - d
Banknet and SWIFT for transmission
of messages were commissioned in
India in the year .....
a. 1951
b. 1991
c. 1961
d. 1971
Ans - b
Non-fund based credit facilities
include ..... (i) Letter of credit, (ii)
Letter of guarantee, (iii)
Acceptance of bills on behalf of
customer

A cheque issued by a director of a a. SEBI a. Only (i) and (ii)

Limited Company is presented for b. RBI
payment after death of the director c. GoI b. Only (i) and (iii)
which the bank pays, But the d. Major Public and Private c. Only (ii) and (iii)
company raises the claim on the plea Sector Banks d. (i), (ii) and (iii)
that bank cannot pay such cheque
after death of the director ..... Ans - d Ans - d

a. Bank cannot pay the cheque as Credit risk emanates from a bank’s
the drawer expired In a factoring transaction, where the dealing with .....
factor retains the right to recover the
b. Bank can pay the cheque as the amount from seller, a. Individuals
company is still a legally competent if payment is not recovered from the b. Corporates
person to contract signed as agent of buyer of goods, is called ..... c. Banks
the company d. Any of the above
a. Without recourse factoring
c. Bank should contact the Co. b. With recourse factoring Ans - d
because loss will be of the company c. Advance factoring
is case of dispute d. B and c d. Back factoring
To make the cost of credit costlier,
Ans - b Ans - b which of the following is done by
RBI?
The concept of ‘discovered price’ is
used, in the context of ..... Which of the following is/are the a. Decrease in bank rate
pricing strategy? (i) Geographical b. Increase in repo rate
a. Rights issue pricing, (ii) Psychological pricing, (iii) c. Increase in SLR
b. Initial public issue Product mix pricing d. All the above
c. Book building issue
d. Bonus issue a. Only (i) and (ii) Ans - b

23

Foreign banks are to deposit in
SEDF with SIDBI, the shortfall in
respect of ..... (i) Export
advances target of 12%, (ii) Overall
priority sector target of 40%, (iii)
Micro & small enterprises target of
7.5%
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
The issue of and servicing of govt.
debt, is management by .....
a. Commercial Banks
b. Public Sector Bank
c. Reserve Bank
d. Govt. itself
Ans - c
When specific goods are charged to
the banker by a firm by means of a
letter of Hypothecation but are in
actual or constructive possession of
the borrower then in the event of the
insolvency of the borrower the goods
.....
a. can be claimed by the Official
Receive
b. can be claimed by the Official
Receiver for the general benefits of
the creditors c. cannot be claimed by
the Official Receiver d. None of the
above
Ans - c
The system in which users use the
network without knowing the details
of the Hardware,
communication method etc. such a
world-wide network is known as .....
a. LAN
b. Internet
c. CICNET
d. ERPNET
Ans - b
Find out the incorrect statement
regarding term of office of directors
of a bank .....
a. A whole time directors is
appointed for a term not exceeding 5
years
b. Term of a whole time director can
be renewed for further period 5 years
c. A part-time director is appointed
for a term not exceeding 5 years
d. A part-time director can hold office
for consecutive period up to 8 years
Ans - c
a. Only (i) and (ii)
b. Only (i) and (iii)
When an unlisted company issues c. Only (ii) and (iii)
fresh securities for the first time, it is d. (i), (ii) and (iii)
called .....
Ans - d
a. Initial public offering
b. Rights issue Which of the following is not a
c. Follow – on public offering feature of a factoring transactions?
d. Bonus shares (a) in factoring the receivables are
purchased by a factor company (b) in
Ans - a the balance sheet of the seller firm,
the factored receivables are an off-
balance sheet item (c) factoring is
What is the maximum extent up to another name for bills discounting (d)
which a single investor can hold registration of charge is required to
shares in an Indian stock exchange? be registered in factoring like bills
discounting.
a. 1 percent
b. 2 percent a. a and c
c. 5 percent b. b and c
d. 10 percent c. c and d
d. b and d
Ans - c
Ans - c
...... is a tax levied on all transactions
code on the stock exchange at rates Decision support system (DSS) uses
prescribed by Central ..... (i) query language, (ii) financial
Govt. from time to time advice, (iii) statistical
analyser
a. Transactions tax
b. Stock exchange transactions tax a. Only (i) and (ii)
c. Securities transaction tax b. Only (i) and (iii)
d. Securities tax c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - c
Ans - d
Which of the following statement is A customer of a bank placed certain
correct in the context of red herring funds with the bank for purchase of
prospectus? certain securities. Bank started the
purchase of securities as per
a. The price is mentioned in this instructions of the customer. But
prospectus before the purchase of securities for
the entire amount could be complete,
b. The no. of shares being offered is the bank failed. The relationship of
mentioned in this prospectus c. The the customer in this case with the
amount of issue is mentioned in this bank is that of .....
prospectus
a. Agent - principal
d. Details or price, no of shares and b. Bailor - bailee
amount of issue is not mentioned in c. Beneficiary - Trustee
this prospectus d. Creditor - debtor
Ans - d Ans - c
What are the characteristics of
Open-ended Mutual Fund? (i) They
are bought and sold on demand at
their net asset value, or NAV, (ii)
Generally calculated at the close of Which is not a characteristic of
every trading day, (iii) Investors buy services?
shares directly from a fund
a. Perishable
a. Only (i) and (ii) b. Tangible
b. Only (i) and (iii) c. Heterogeneous
c. Only (ii) and (iii) d. Inseparable
d. (i), (ii) and (iii)
Ans - b
Ans - d
Which of the following is/are Which one of the following
component(s) of product personality? Committees introduced the concept
(i) The associated features, (ii) The of weaker sections within the priority
package and label, (iii) The brand sector for the first time in India?
name and logo
24
a. Ojha Committee b. A variable recurring deposit
Which one is a distributed control account
b. Nariman Committee Network? c. A flexi deposit account
c. Krishnaswamy Committee d. A roaming current account
d. None of these a. Star Topology
b. Bus Topology Ans - b
Ans - c c. Tree Topology
d. Loop Topology
RSA is .....
What are the provisions of Ans – b
remuneration of the banking .... a. Symmetric Cryptosystem
ombudsman ? b. Asymmetric Cryptosystem
Commonly used medium of c. Block Cypher
a. he is eligible for remuneration and communication in banking d. Digital Signature
other perquisites b. this will be
determined by the RBI a. Coaxial Cables Ans - b
c. this has to be borne by banks b. Fibre Optic Cable
proportionately c. Telephone Lines Firewalls are used to protect against
d. all the above d. None of these
Ans - d a. Unauthorised Attacks
Ans - c b. Virus Attacks
c. Data Driven Attacks
d. Fire Attacks
As per Sec 3 of The Majority Act, a ‘DOS’ floppy disk does not have .....
person below how many years of Ans - a
age is Minor in case guardian has a. A Boot Record
been appointed by court? b. A File Allocation Table
Minimum tenur of Government
a. 16 c. A Root Directory Securities is ..... days.
b. 18 d. Virtual Memory
c. 21 a. 1
d. Depends upon court order Ans - d b. 2
c. 3
Ans - b d. 5
.... Credit card is a small plastic card of
Normally the day of auction for 91- around ..... cm. Ans - a
day T-bill is ..... ....
a. 7.0 x 5.5
a. Wednesday b. 8.5 x 5.0 SCBs can lend to the extent of ..... %
b. Wednesday of reporting week c. 7.5 x 5.0 of their capital funds on any day.
c. Wednesday of non-reporting d. 8.5 x 5.5
week a. 25
d. None of the above Ans - d b. 50

Ans - a c. 75
.... d. 100
The way devices are interconnected
A Power of Attorney PA executed is known as ..... Ans - b
abroad, should be stamped within ....
how many months of its receipt in a. Network
India? b. Topology Compiler is a .....
c. LAN
a. One Month d. None of these a. Package
b. System Software
b. Two Months Ans - b c. Process
c. Three Months d. Application Software
d. Six Months
In Garnishee Order, balances held Ans - b
Ans - c outside India .....
....
a. can be attached
Which of the following is not true in b. can't be attached If number of partners in a firm is 22
respect of Executors? c. can be attached if ordered so by in respect of trading activity the firm
the court is
a. Appointed by a testator through a d. None of these
will a. Limited company
Ans - b b. Large partnership
b. Appointed by Court in absence of c. Illegal association
a will to act through Letter of d. None of these
Administration c. Performs the duty In which account customer has the
of realizing and distributing the flexibility to select the number of Ans - c
assets of a deceased installments and also vary his
d. On death of one of the Executors monthly installment amounts subject
his powers are vested in surviving to certain conditions? CPs are issued normally for a tenure
executors of......
a. An EEFC account
Ans - b a. 30 Days
.... b. 60 Days

25
c. 90 Days
d.120 Days a. 1 day BCSBI is setup on the
b. 2-14 days Recommendations of which
Ans – c c. More than 14 days Committee
d. None of these
a. S.S. Tarapore Committee
The validity period of SEBI's Ans - b b. Dr. C. Rangarajan Committee
observation letter for IPO offer c. Vijay Kelkar Committee
document is...... In bank’s parlance credit risk in d. Montek Singh Ahluwalia
lending is Committee
a. 1 month
b. 2 months a. Default of the banker to maintain Ans - a
CRR ....
c. 3 months b. Default of the banker to maintain
d. 6 months SLR Relationship of Banker with Payee of
Draft
Ans - c c. Default of the banker to release
credit to the customer d. Default of a. Trustee and Beneficiary
the customer to repay the loan b. Drawer and Drawee
ECS-RAPID was introduced by RBI c. Licensor and Licensee
in ..... Ans - d d. Principal and Agent

a. 1995 Ans - a
b. 1996 Headquarters of SWIFT is at ..... ....
c. 1997
d. 1998 a.Newyork A savings account is treated as a
b.Paris dormant account if there is no
Ans - c operation in the account for the last
c.Brussels ..... years.
Smallest storage unit of a computer d.London
is ..... a. one
Ans - c b. three
a. Bit c. two
b. Byte d. five
c. Nibble ECS was launched by RBI in .....
d. Pixel Ans - a
a. 1995
Ans - a b. 1996
c. 1997 Electronic purse may have following
d. 1998 number of storage space .....

MICR was introduced in ..... Ans – a a. only one

a. 1945 b. two
b. 1954 c. several
c. 1965 Digital Signature consists of ..... d. no storage space
d. 1956
a. Message Only Ans - c
Ans - b b. Random Number Only
c. Both A and B
d. None of these Cheque truncation can be done by
Reforms in the financial services ..... (i) using MICR data, (ii) sending
sector were initiated on the Ans - c cheque by speed post,
recommendations of ..... (iii) using image processing
Committee.
Online Marketing is the function of a. Only (i) and (ii)
a. Jankiraman which of the following ..... b. Only (i) and (iii)
c. Only (ii) and (iii)
b. Narasimhan a. Purchase section d. (i), (ii) and (iii)
c. Tarapore b. Production Department
d. Rangarajan c. IT Department Ans - b
d. A collective function of all staff
Ans - b
Ans - d The law of equi-marginal utility is
otherwise called as .....
Treasury bills are issued for a period
of upto...... Lead generation does not mean ..... a. Law of substitution
(i) tips for selling tactics, (ii) tips for b. Law of diminishing MU
a. 30 days better production, (iii) c. Law of negative returns
b. 31 days likely sources for prospective clients d. None of these
c. 90 Days
d. 91 days a. Only (i) and (ii) Ans - a

Ans - d b. Only (i) and (iii) A book “The Nature and significance
c. Only (ii) and (iii) of Economic Science” is written by
Notice Money means money d. (i), (ii) and (iii) .....
lent/borrowed between banks and
entities like PDs for ..... Ans - a a. Alfred Marshal

26
b. Lionel Robbins
c. Samuelson
d. Adam Smith
Ans - b
When different version of products
are priced differently but in
accordance to difference in
their value then it is a form of .....
a. Psychological pricing
b. Segmented pricing
c. Product-line pricing
d. Product-form pricing
Ans - d
Mediums of data transmission are
..... (i) Terrestrial Cables, (ii)
Microwave Systems, (iii)
Communication Satellite
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
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
Ans – d
The committee on communication
networks for banks set up in 1987
under the chairmanship of .....
Executive Director, RBI
a. Mr. Rangarajan
b. Mr. K. Sarraf
c. Mr. T.N. Ananthram lyer
d. None of the above
Ans - a
Where the mortgagor ostensibly sells
the mortgaged property, on the
condition that in default of payment
of the mortgage money on a certain
date, the sale shall become absolute
or on the condition that on such
payment being made, the buyer shall
transfer the property to the seller, the
transaction is known as .....
a. Simple mortgage
b. Mortgage by condition sale
c. Mortgage by deposit of title deeds
d. None of these
Ans - b
State which of the following
statement/s is/are correct? (i) KYC
norms is applicable only to deposit
accounts, (ii) A cash credit facility is
a fund based limit, (iii) An incomplete
negotiable instrument is called as an
inchoate instrument
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - c
In case of unitary elastic, demand
curve is .....
a. Horizontal
b. Vertical
c. Rectangular hyperbola
d. None of these
Ans - c
In terms of PMLA, Records of Cash
Transaction of Rs. 10 Lacs and
Suspicious Transactions are
required to be maintained for a
Period of .....
a. 5 Years
b. 10 Years
c. 15 Years
d. 25 Years
Ans - b
....
Which of the following statements is
correct?
a. The delivery of documents of title
to goods (except a bill of lading) by
the owner of the goods to the lender
is not considered as a valid pledge in
English Law, however, under the
Indian Law, such delivery constitutes
a valid pledge.
b. The delivery of documents of title
to goods by the owner of the goods
to the lender is not considered as a
valid pledge in Indian Law, however,
under the English Law, such delivery
constitutes a valid pledge.
c. Both of the above are correct
d. None of the above
Ans - a
01st August of Every Year
observed as .....
a. KYC Compliance Day
b. KYC Compliance and AML Day
c. Computer Security Day
d. KYC Compliance and Fraud
Prevention Day
Ans - d
Which Section of Banking Regulation
Act, 1949 provides Nomination for
Payment of Depositor’s Money?
a. Section 42
b. Section 24
c. Section 110A
d. Section 45ZA
Ans - d
....
A bearer cheque of Rs. 3 lac has
been presented by Mr. Sham Kumar,
the payees of a cheque
drawn on your branch. He being new
to the bank has shown inability to
give identification .....
a. In case of bearer cheque, no
identification is needed irrespective
of the amount of the cheque
b. Identification is required to safe
guard the interest of the bank
c. Identification is essential for all
instruments for getting protection d.
Identification would not be required if
presented with pass book
Ans – a
Which of the following statements, is
correct regarding licensing of a
banking company under Banking
Regulation Act 1949? (i) It is
necessary to obtain a license for
opening of Banking company, (ii) RBI
has powers to cancel the license, (iii)
The bank may make an appeal with
the central government against the
decisions of the RBI
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
Suspicious Transactions Reports
(STRs), is submitted to
a. RBI
b. Banking Department, Ministry
of Finance
c. FIU-IND
d. Central Bureau of
Investigation (CBI)
Ans – c
....
is In Marketing mix which scope of
product supports the elements? (i)
Guarantee/Warrantee, (ii) Quality,
(iii) Packaging
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
27
A and B have a locker as either or c. To acquire such loans for a b. Holder in due course
survivor and A inform that keys have transfer price, with or without c. Holder for value
been lost. Thereafter B comes for recourse d. Paying banker
operations.
d. To manage the acquired loans for Ans – c
a Bank will allow operations the purpose of realization or holds
them as investment till maturity
b Bank will allow operations if Any contract with minor is void ab
indemnity is given by B c Bank will Ans – d initio in terms of which of the
not allow operations without consent following Act?
of A Securitisation is a process of
d Bank will not allow operations to acquiring the loans classified as ..... a. Sec 34 Transfer of Property Act
any of them withoUt a court order (i) Bookdebts, (ii) Non 1882
performing debts b. S 11 of Indian Contract Act 1872
Ans - c c. Sec 26 Negotiable Instruments Act
a. Only (i) 1881
b. Only (ii) d. Sec 6 of The Majority Act
Which of the following is correct with c. Either (i) or (ii)
regard to quantum of loan to micro, d. Neither (i) nor (ii) Ans - b
small & medium enterprises? ....
Ans - b
a. WC and TL for micro enterprise — The banking ombudsman scheme
maximum Rs.25 lac covers the following banks;
b. WC and Tt for small enterprise — Which of the following is not a
maximum Rs.200 lac popular social marketing network? a. scheduled commercial banks.
c. WC and TL for medium enterprise b. regional rural banks.
— maximum Rs.500 lao a. Facebook c. co-operative banks.
d. WC and TL need based and d. all these
composite loan (SIDBI Scheme) to b. Pinterest
MSEs Rs.100 lac c. Twitter Ans – d
d. None of the above
Ans - d Total amount of transactions are
Ans - b accumulated and debited to the
.... customer’s account in .....
Normally the amount of auction for
182-day T-bill is ..... crores Sale or purchase of Govt Securities a. Debit Card
by RBI in open market is called as b. Credit Card
a. 4000 ..... c. Charge Card
b. 5000 d. Smart Card
c. 6000 a. Credit Planning
d. 7000 b. SCC Ans - c
c. OMO
Ans - c d. CAS
.... As per Basel 2 Recommendations,
Ans - c the subordinate Term Debt are
The head quarter of IMF is located at restricted to...
.....
How many types are T bills are a. 25% of Tier I Capital
a. London issued? b. 50% of Tier I Capital
b. Washington
a. 2 c. 25% of Tier II Capital
c. New York b. 3 d. 50% of Tier II Capital
d. Paris c. 4
d. 5 Ans - b
Ans - b
.... Ans - b
.... In India, the drought in which one of
Basel II consists of three mutually the following years was categorised
reinforcing pillars viz; minimum In respect of which one of the as ‘SEVERE’?
capital requirement, following co-operative institutions the
supervising review of capital percentage share of deposits in their a. 1979
adequacy and the 3rd one is ..... total financial resources is the lowest b. 1966
among all the institutions given in the c. 1987
a. Internal Audit list? d. All these years
b. USGAAP
c. CRA a. PACS Ans - c
d. Market Discipline b. DCCB
c. SCB
Ans - d d. PLDB
.... At which one of the following centres
Ans - d one of the Software Parks is
In a securitisation deal, the role of a located?
Special Purpose Vehicle (SPV) is .....
Bank A allows one of its clients to a. Gandhinagar
a. To acquire large Non Performing withdraw against clearing of a b. Cochin
Loans (NPA) cheque. The banker is called..... c. Kandla
b. To acquire such loans from a bank d. None of these
or financial institution a. Collecting banker

28
Ans - a a. print and broadcast media
Cash budget deals with ..... b. word-of-mouth influence
c. buzz marketing
Under PMRY scheme, which is not a. cash transactions d. display and online media
levied? b. non-cash transactions
c. both a and b Ans - b
a. Penal Interest d. None of these
b. Processing charges
c. both a and b Ans - a Loan for fish rearing is covered
d. None of these under Prirority Sector as .....
advances
Ans - c Who are eligible for subsidy under
SHG? a. Direct Agriculture

The service provided by HSBC which a. All the members b. Indirect Agriculture
allows the customer to access their b. only BPL members c. Self Employment Scheme
accounts from a PC c. only APL members d. Allied to indirect Agriculture
installed at his office or at their home d. None of the above
is called ..... Ans - a
Ans - b
a. Corporate Banking
Gift cheques are cheque which can ...... is capable of fastest broad band
b. Hexagon be gifts in lieu of ..... transmission.
c. Personal Banking
d. Both a & c a. Cash a. Dial-up Network
b. Demand draft b. Microwave Network
Ans - b c. Mail transfer c. Leased Lines Network
d. All of the above d. All of the above

Communication software which Ans - a Ans - b

allows free format messaging and file
transfer on Banknet
infrastructure is ..... To carryout functions of Central Two firms are said to be identical
Federal System, USA has been when
a. NICNET divided into ..... districts.
b. Banknet a. Partners of the two firms are same
c. RBI Net a. 10
d. Indonet b. 12 b. When the two firms have some
common factors c. When the activity
Ans - c c. 15 is same d. When the address is
d. 25 same
Which one comes under Terrestrial
cables? Ans - b Ans - a

a. Copper wire-pair Which one is not a part of Marketing

b. Coaxial pair Interest is calculated on actual/365 Mix (4Ps)
c. Optical fibre days basis in respect of the following
d. All of them products ..... (i) GOI a. Price
dated securities, (ii) Call Money, (iii) b. People
Ans - d Notice Money c. Product
d. Place
a. Only (i) and (ii)
b. Only (i) and (iii) Ans - b
c. Only (ii) and (iii)
The customer has the option to pay d. (i), (ii) and (iii)
the entire amount once in a month or Banknet doesn't link .....
pay in installments in Ans - c
...... a. Nagpur
b. Bangalore
a. Debit Card FIMMDA’s general principles and
b. Credit Card procedures are applicable to ..... (i) c. Hyderabad
c. Charge Card Fixed Income Markets, (ii) d. Ahmedabad
d. Smart Card Money Markets, (iii) Derivatives
Markets Ans - d
Ans - b
a. Only (i) and (ii)
b. Only (i) and (iii) Banks access Banknet with .....
SGYS scheme came into operation c. Only (ii) and (iii)
from ..... d. (i), (ii) and (iii) a. RBI Net
b. INET
a. 01.03.1998 Ans - d c. COMET
d. INDONET
b. 01.04.1998
c. 01.03.1999 Way of personal communication Ans - c
d.01.04.1999 between friends, family, neighbors
and target buyers about particular
Ans - d market offering is called

29
The message transfer utility of
COMET enables ..... users to login at Ans - a Ans - a
a time at each node.

a. 200 In star topology for a local area Universal Bank has granted cash
b. 2000 network ..... credit limit of rs.10 lac to M/s Kala
c. 400 traders, a partnership firm. The
d. 4000 a. Each node is joined to each other account is showing a debit balance
by a common link of rs.9.50 lac when the notice is
Ans - c received about the insolvency of one
b. All nodes are linked to the server of the partners, which among the
through individual nodes c. Each following steps should be initiated by
In the context of ATMs, PIN stands node is joined to the central node by the bank to safeguard its interest?
for ..... and it is a ..... digit code a separate link d. The nodes are
connected through a continuous a. Operations in the account to be
a. Perfect Information Number, 5 cable stopped and balance confirmation
digits letter to be obtained from all the
b. Personal Information Number, 5 Ans - c partners
digits
c. Personal Information Number, 4
digits In a smart card the security features b. Operations in the account to be
d. Perfect Information number, 4 are ..... (a) multiple pins (b) retinal stopped and notice of demand to be
digits pattern verification (c) issued on the remaining partners
dynamic signature verification (d) c. Notice about the outstanding dues
Ans - c vein recognition to be sent to the official assignee in
whom the estate of
a. a and c only the insolvent partner has been
The debit payment system that b. b and c only vested
works on the principle of multiple c. a, c and d only d. b and c above
debits and a single credit ..... d. a to d all
Ans - d
a. debit clearing Ans - d
b. electronic debit clearing
Debit card can be used for ..... (i)
c. electronic clearing The minimum and the maximum Cash withdrawal from ATMS, (ii) For
d. electronic clearing service amount for RTGS transactions is ..... making payment in POS

Ans - b a. no minimum and no maximum terminals, (iii) Making payment in e

Which of the following is not correctly
matched?
a. WAN - Wide Area Network
b. LAN — Local area network
c. MAN - Model Area Network
d. RAM - Random Access Memory
Ans - c
Which of the following is not an
advantage of the multi-user
computer system through
networking?
a. Corporate level information is
available at one place
b. Costly hardware can not be
shared between various user due to
which it is not effective c. Information
can be shared easily between
various users
d. Computing resources can be used
economically by processing the high
volume data
Ans - b
In ..... each node is joined to the
central node by a separate link
b. no minimum but max Rs.2 lac
c. no maximum but min Rs.2 lac
d. no minimum but max Rs.2 cr
Ans - c
Under Money Transfer Service
Scheme (MTSS), what is the
maximum amount of single inward
foreign currency remittance?
a. USD 10000
b. USD 5000
c. USD 2500
d. USD 1000
Ans - c
The risks that is managed by RTGS
are .....
a. liquidity risk and settlement risk
b. settlement risk and systemic risk
c. systemic risk and liquidity risk
d. liquidity risk and operational risk
Ans - b
Which of the following is an example
for Digital Banking channel? (i)
Mobile & Phone Banking, (ii) Internet
Banking, (iii) Branch Banking
commerce portals by providing card
number, expiry date and CVV
number
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
Under National Electronic Funds
Transfer (NEFT), the customers can
complain to Ombudsman if
complaint is not resolved within days
.....
a. 15 days
b. 30 days
c. 45 days
d. 60 days
Ans - b
The Basel Committee on Banking
Supervision, is a committee that was
constituted by .....
a. RBI and World Bank
b. International Monetary Fund
c. United Nations
d. None of the above

a. Star topology a. Only (i) and (ii) Ans - d

b. Bus topology b. Only (i) and (iii)
c. Ring topology c. Only (ii) and (iii)
d. None of the above d. (i), (ii) and (iii)

30

Your customer issues a cheque for
Rs.10000 in discharge of his liability
towords Mr. Shayam
Prasad or order, who endorses the
same in favour of Mr. Sita Ram In
blank. This cheque .....
a. Cannot be endorsed further as the
blank endorsement restricts further
negotiation
b. Can be negotiated by Mr. Sita
Ram without endorsement by him
and by the mere delivery c. Can be
negotiated further by Mr. Sita ram full
endorsement by him followed be
delivery d. Can be endorsed by him
in blank only
Ans - b
A bank has risk weighted assets of
Rs.1000 cr and it has undisclosed
reserves of Rs.30 cr. What is the
maximum amount of such reserves
that can be included Tier-2 capital?
a. Rs.90 cr
b. Rs.30 cr
c. Rs.12.50 cr
d. Rs.7.50 cr
Ans - c
Which of the following transactions is
backed by a letter of credit?
a. Factoring
b. Forfaiting
c. Securitization
d. Leasing
Ans - b
to which paying bank’s position is
b. The premium rates for with profit safe
policy are lower than the premium for
without profit policy c. The premium b. The cheque is of a small amount,.
rates for with profit policy are equal Hence the bank should refund the
than the premium for without profit money c. If customer is valuable, the
policy d. None of the statement is customer’s request should be
correct accepted
Ans - a d. Endorsement is irregular due to
which the paying bank is not
protected under the provisions of
A banking company fails to produce Section 85 of NI Act
books, accounts and documents
which it is bound to furnish under the Ans - d
provisions of RBI Act, what is the
penalty as per Banking Law
Amendment Act 2012? (i) It can be If a banker allows an advance by
fined up to Rs.200000, (ii) It can be keeping 25% margin and the amount
fined up to Rs.5000, (iii) If offence of loan is Rs. 1 lac, the
continues additional fine could be value of security would be .....
Rs.50000
a. Rs.1.25 lac
a. Only (i) and (ii) b. Rs.1.33 lac
c. Rs.1.50 lac
b. Only (i) and (iii)
c. Only (ii) and (iii) d. Rs.1 lac
d. (i), (ii) and (iii)
Ans - b
Ans - b
Which of the following relationship
In case of deferred payment between customer and bank
guarantee. Normally ..... advance matches?
payment is made by the buyer
of machinery to the supplier of the a. Safe deposit of articles – bailer &
machinery, which is treated as bailey
margin by the bank b. Collection of cheque – agent and
principal
a. 5% to 10% c. Deposits- debtor and creditor
b. 5% to 30% d. Mortgage – mortgagee,
c. 10% to 15% mortgage
d. 20% to 30%
Ans - a
Ans - c

X is associated with the following

NAV is required to be disclosed by Current assets of a company are account maintained in your branch.
the mutual funds on a ..... basis Rs.800 lac and other current The branch receives
liabilities Rs.80 lac. If the amount of anattachment order. The order will
a. daily net working capital is Rs.170 lac be applicable on .....
b. weekly what will be amount of excess
c. depending on the type of borrowing, as per 2nd method of a. Current account of XYZ Private
scheme lending? Limited, in which X is the managing
d. none director with Majority shareholding.
a. Rs.120 lac
Ans - c b. Rs.80 lac b. Overdraft account against life
c. Rs.50 lac policy in the name of X with balance
When investment is made in other d. Rs.30 lac of Rs.15000 against the limit of Rs.2
schemes of the same or different lac.
mutual funds, such fund is Ans - d
called ..... c. Account in the name of his minor
daughter M under guardianship of X
a. Index fund A saving bank customer of Modern d. A term deposit to mature after 2
b. Gilt fund Bank issues a chaque of Rs.1500 in years in his joint name with his wife
c. Fund of funds favour of M/s swastic Enterprises or
d. Mutual fund order. The cheque is paid by the Ans - d
bank on presentation through
Ans - c clearing with endorsement from the
payee as ‘Svastika Enterprises’. The Marketing in which product is
endorsement is also confirmed by described to customers with air
Which of the following statement is the collecting bank. The drawer television spots providing
correct regarding premium on life claims that the payment has not customers with toll free numbers or
insurance policies? been made in due course and claims Website to order is called .....
refund of the amount .....
a. The premium rates for with profit a. kiosk marketing
policy are higher than the premium a. This is a payment on the b. offline marketing
for without profit policy guarantee by the collecting bank due c. telephone marketing

31
d. direct response TV marketing
Ans - d
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
Ans - d
A typical computerised
environment constitutes
three interdependent but
separate
components .....
a. Software, hardware and data
b. Hardware, software and UPS
c. Software, modem and networking
d. Software, people ware and data
Ans - a
A Full-duplex transmission is capable
of .....
a. transmitting data in one direction
only
b. data movement in both the
direction but only in one direction at
a time c. providing a simultaneous
two way communication d. data
communication only
Ans – c
Collateral security & margin in loan
to agriculture exempted for loan .....
a. Up to Rs.10000
b. Up to Rs.15000
c. Up to Rs.25000
d. Up to Rs.100000
Ans - d
Which of the following is value added
service as part of wholesale
banking?
a. structured finance
b. channel financing
c. supply chain management
d. letter of credit
Ans - b
PNs are used mainly by investors
based in ..... (i) India, (ii) Abroad
a. Only (i)
b. Only (ii)
c. Either (i) or (ii)
d. Both (i) and (ii)
Ans - b
Locker operated by A & B with either
or survivor instructions. Nomination
done by A in favour of X. A dies. Y is
the son of A. Payment will be made
to (i) B, (ii) X, (iii) X & Y
a. Only (i)
b. Only (i) and (ii)
c. Only (iii)
d. (i) and (iii)
Ans - a
Urban Cooperative Banks are
controlled by ..... (i) NABARD, (ii)
State Governments, (iii) RBI
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - c
The upper value limit of an individual
national electronic funds transfer
(NEFT) transaction is
......
a. Rs. 20000
b. Rs. 50000
c. Rs. 100000
d. None of the above
Ans - d
'Currency of India' refers to .....
a. One rupee notes only
b. One rupee notes and coin
c. Bank notes issued by Reserve
Bank of India; i.e., Rs. 2, Rs. 5, Rs.
10, Rs. 20, Rs. 50, Rs. 100, Rs. 500
and Rs. 1000
d. One rupee notes and coins and
bank notes issued by reserve Bank
of India
Ans - d
Non-volatile Memory retains data .....
(i) only when the computer is ON, (ii)
even when the
computer is turned off
a. Only (i)
b. Only (ii)
c. Either (i) or (ii)
d. Both (i) and (ii)
Ans - b
An export client M/s Shanbeg
Exports of your branch receives an
export order for export of handicraft
items to US under a letter of credit of
$ 30000. It is stated that your bank
can issue another credit in favour of
local supplier/manufacturer from
whom the exporter is to procure the
material. Under which of the
following categories, such letter of
credit can be classified .....
a. red clause letter of credit
b. green clause letter of credit
c. transferable letter of credit
d. back to back letter of credit
Ans - d
A bank can purchase NPA from
another bank, if in the books of
selling bank, the account was
NPA for .....
a. 2 years
b. 3 years
c. 5 years
d. 7 years
Ans - a
A and B maintain an FD account with
a locker and want to make single
nomination for both the accounts:
a. Nomination can be made in both
the accounts separately b.
Nomination cannot be allowed in
lockers in joint names c. It will
depend on bank’s discretion
d. Nomination can be accepted
Ans – a
What is the process of
amalgamation? (i) It has to be
approved by majority of shareholders
representing 2/3 shareholders, (ii)
The RBI has to sanction the scheme,
(iii) After approval of RBI assets and
liabilities are transferred to acquiring
bank
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
The provision for making the
payment of amount mentioned in
words in a cheque is described
u/s...of NI Act.
a. 16
b. 18
c. 20
d. 21
Ans - b
32
Crossing is a direction to the ..... Mr. A, Mr. B & Mr.C operate their Ans - a
bank to pay the cheque to the payee bank account in the mode of “Any or
through a bank. Survivor" and Mr. A
dies, then the right to operate lies Retailing operation which is operated
a. Drawer with ..... and owned by manufacturer and
carries surplus or
b. Payee a. Either B or C individually irregular goods is classified as .....
c. Paying b. Either B or C as given in the
d. Passing mandate a. factory outlets
c. B and C but jointly b. warehouse clubs
Ans - c d. Any of the above c. factory clubs
d. surplus center
Ans - c
Retail stores such as Best Buy, Ans - a
Staples and Pet Smart are examples
of ..... Segmentation of international
markets on basis of common Examples of ECS (Credit) are ..... (i)
a. superstore languages, religions and customs is Dividend, (ii) Interest, (iii) Salary
b. outbound stores example of ..... payment
c. inbound stores
d. intensive stores a. geographic location a. Only (i) and (ii)
b. Only (i) and (iii)
Ans – a b. cultural factors c. Only (ii) and (iii)
c. economic factors d. (i), (ii) and (iii)
d. political and legal factors
The crossing in a crossed cheque Ans - d
can be cancelled by ..... Ans - b

a. Drawer Sec ..... of RBI Act,1934 gives sole

b. Drawee Acts done honestly is called acts power to RBI to issue currency notes
c. Endorser. done .....
d. Acceptor a) 10
a. Without negligence b) 18
Ans - a b. Rashly c) 22
c. Mollified d) 26
d. In good faith
According to Sec. 59 of the Transfer Ans – c
of Property Act, 1882, where the Ans - d
principal money secured is one
hundred rupees or more, a mortgage Off-price retailer that sells limited
other than a mortgage by deposit of Of the following pricing strategies, brand names for grocery items or
title deeds can be affected only by a ..... are ideal for new products. (i) other variety, offering
registered instrument signed by the Discriminatory pricing, (iii) discount to customers who pay
mortgagor and attested by two Market-penetration, (iii) Promotional membership fees is called as .....
witnesses. The document is to be Pricing
presented for registration at the a. factory outlets
office of the Sub-Registrar/Registrar a. Only (i) and (ii) b. warehouse clubs
of Assurances within ..... b. Only (i) and (iii) c. factory clubs
c. Only (ii) and (iii) d. surplus center
a. one month from the date of d. (i), (ii) and (iii)
execution Ans - b
b. three months from the date of Ans – c
execution
c. four months from the date of Diversification Growth is defined
execution Customer market division done on as......
d. None of the above basis of 'compulsive, ambitious and
outgoing customers' a. Identify opportunities for further
Ans - c classified as ..... growth within the existing businesses

a. geographic segmentation b. Identify opportunities to build or

Mr. A & Mr. B operate their bank
account in the mode of “Jointly or
Survivor” and Mr. A dies,
then the proceeds of the account can
be .....
b. demographic segmentation
c. psychographic segmentation
d. behavioral segmentation
Ans - c
acquire businesses related to the
existing businesses c. Identify
opportunities to add attractive
businesses, unrelated to the existing
businesses d. None of the above

a. shared between Mr. B and the Ans - c

legal heirs of Mr. A b. transferred to Retailer store which carries deep
Mr. B's own other bank account c. assortment of specialty product line
shared between Mr. B and the and customers are served Who regulates the Insurance
nominee by knowledgeable staff is classified Business in India?
as .....
d. shared between Mr. B, the a. RBI
nominee and the legal heirs of Mr. A a. category killer b. SEBI
b. discount killer c. IRDA
Ans - b c. limited inbound retailers d. AMFI
d. limited outbound retailers
Ans - c

33
 The bank is required to comply with
c. 25 Lakhs to 5 Crores the execution of the award of
RBI exercises monetary control in d. 5 Crores to 10 Crores banking ombudsman within the bank
India through... is required to comply with the
Ans – c execution of the award of banking
a. Issue of currency ombudsman within;
b. Cash reserve and liquid reserve
ratios While opening an account in the a. 7 days
c. Repo and Reverse Repo Rate name of a Joint Hindu Family a JHF b. 15days
d. Regulated Payment System letter is obtained. It will be signed c. 30days
by? d. 60days
Ans - b
a. Karta Ans - b
Building a brand doesn't involve ..... b. Adult Coparceners
c. Minor Coparceners
a. Brand positioning d. Only by a and b Relationship between Banker &
b. Brand name selection Customer in case of Deposit Account
c. Brand marketing Ans - d is .....
d. Brand development
a. Creditor- Debtor
Ans - c The measurement and evaluation of b. Bailer – Bailee
progress against the goals and c. Debtor – Creditor
targets of plans falls under... d. Licensor – Licensee
Which of the following is not required
in case of a private limited company? a. Planning Ans - c
b. Implementation ....
a. Memorandum of Association c. Control and review
b. Articles of association d. Analysis There is a joint account in the names
of A and B to be operated upon by
c. Certificate to commence business Ans – c both of them jointly.
d. Certificate of incorporation On the death of A, the credit balance
in the account is payable to .....
Ans - c ABC Company purchased Hear
.... Music and began making compilation a. B
music CDs to play and sell in its b. B and Legal heirs of A Jointly
Creator of Trust is referred as stores. It has also tested new c. Either a. or b.
restaurant concepts. It is considering d. None of these
a. Trustee which of the following strategies?
b. Beneficiary Ans - b
c. Settlor a. Product development ....
d. Garnishee b. Market development
c. Diversification What can be a characteristic of
Ans - c d. Market penetration Physical Products?

Ans - a a. Inseparability
b. Heterogeneity
Who is the customer among the c. Homogeneous
following? A cheque drawn by a Power of d. Perishability
Attorney holder is presented for
a. One who acts as an agent for one payment. You come to known Ans - c
maintaining a deposit account. through reliable source that Principal
b. One who regularly gets Draft has died. Which of the following
issued. action you will take? Apart from Product, price and place,
c. One who maintains a Loan which is the other one in 4Ps?
Account. a. Return the cheque
d. One who regularly visits the bank. b. Pay the cheque a. Profit
d. Confirm the legal heirs of the b. Plan
Ans - c principle c. Promotion
c. None of these d. People

FIMMDA’s guidelines cover the Ans - a Ans - c

following products, except one:

a. Call Money Fortnightly average borrowing The banking ombudsman may reject
b. Cross Currency Interest Rate outstanding of Commercial Banks the complaint on the following
swaps should not exceed more than grounds
c. Commercial Paper ...... % of their capital funds.
d. Certificate of Deposit a. complaint is without sufficient
a. 100 cause.
Ans – b b. 125 b. complaint is not pursued with
reasonable diligence.
c. 150 c. there is no loss or damage or
In Manufacturing sector, small d. 175 inconvenience suffered by the
enterprises investment in plant and complainant.
machinery is Ans - a d. any one or all of the above
....
a. Less than 25 lakhs Ans - d
b. 10 Lakhs to 2 Crores

34
 Ans - d

Which of the following is not true in Mode of communication capable of The deposit of cash under CRR
respect of Guardian to Minor? receiving and transmitting both but requirement with RBI is .....
only one at a time is requirement.
a. Guardian of Illegitimate minor child ......
– Mother a. Voluntary
a. Simplex b. Discretionary
b. Guardian of Hindu married minor b. Semi duplex or half duplex c. Mandatory
girl – Girl’s Father-in-law, If Husband c. Duplex d. None of the above
Minor c. Testamentary Guardian d. None of the above
becomes effective after death of Ans - c
father and mother d. Natural Ans - b A direct marketing channel is also
Guardian varies from religion to called ..... level channel
religion
Who is eligible to issue CPs? a. Zero
Ans - b b. One
a. Corporates c. Two
d. Three
Which of the following forms of b. PDs
business are permissible under BR c. FIs Ans - a
Act: d. All of them

a. Borrowing Ans - d In the recent years, important of

b. Issuance of Letters of Credit .... marketing has increased due to ..
c. Buying and selling of bullion
d. All of the above LC is issued by the opening bank on a. Availability of information to
request of .. customer
Ans - d
a. Seller b. Target and customised
b. Supplier communications and offerings c.
FIMMDA’s general principles and c. Applicant Consumer has wider choices d. All
procedures are applicable to: d. Beneficiary the above

a. Fixed Income Markets Ans - c Ans - d

b. Money Markets
c. Derivatives Markets In a book built issue allocation, RIIs,
d. All of the above ...... are not Commercial Banks NIIs and QIBs are in the ratio of

Ans - d a. Public Sector Banks a. 30:20:50

b. Cooperative Banks b. 35:50:15
c. Private Sector Banks c. 35:15:50
Mode of communication capable of d. Foreign Banks d. 30:50:20
receiving and transmitting at all time
(i.e. Two-way Ans - b Ans - c
communication simultaneously Bank can grant loans against ..
possible) is ..... The bank that makes payment to the
beneficiary on receipt of documents a. LIC Policy
a. Simplex as per terms of Letter of Credit is... b. CDs
b. Semi duplex or half duplex c. FD issues other bank
c. Duplex a. Advising Bank d. Mutual fund
d. None of the above b. Negotiating Bank
c. Confirming Bank Ans - a
Ans - c d. Opening Bank CIBIL came into effect with effect
from?
Ans - b
Which one doesn't offer voting a.1999
rights? b.2000
Equity shares are issued on c.2001
a. Equity shares redemption of bond to the holder of d.2002
b. Preference shares ..... bond.
c. Bonus Shares Ans - b
d. Rights shares a. Coupon
Which is not a retail deposit product?
Ans - b b. Convertible
c. Preference a. credit card
d. Zero Coupon b. term deposits
Which is not an objective of Test
Marketing? Ans - b c. senior citizen deposits
d. No frills acct
a. To know how the consumers and
dealers react to handling, using and NREP has been merged into : Ans - a
repurchasing the actual product
b. To learn the size of the market a. EAS
b. NRY Marketing passes through the
c. To test the product in authentic c. JRY management functions of .....
consumer settings d. All the above d. PMRY
Ans - c a. Analysing

35
b. Planning
c. Controlling
d. All the above
Ans - d
As per Foreign Exchange Regulation
Act 1973 which one of the following
forms is to be used by the exporter
for declaring the exports made to all
countries otherwise than by post?
a. PP Forms
b. G R Forms
c. V P Forms
d. COD Forms
Ans - b
Which of the following conditions
should be fulfilled by a business
Enterprises providing any service
under priority sector loans? (i) The
original cost of equipment does not
exceed Rs. 20 lac with a working
capital limit of Rs. 10 lac or less, (ii)
The aggregate of term loan and
working capital should not exceed
Rs. 20 lac
a. Only (i)
b. Only (ii)
c. Either (i) or (ii)
d. Both (i) and (ii)
Ans - d
Which of the following statements, is
correct?
a. RBI may decide interest rate to be
charged by a Bank on individual
loans b. Margin amount on secured
loans can be decided by the RBI
c. RBI may stipulate norms for the
banks for the commission to be
charged on guarantee
d. Maximum amount of loan which
can be considered by abank to a
single party having regard to the paid
up capital, Reserves & Deposits
ofthe individual.
Ans - a
Which of the following statements, is
correct regarding nomination? (i)
Two or more hirers of a locker with
joint signatures may nominate one or
more persons as nominee who may
have access to the locker, (ii) Even a
minor can appoint a nominee but a
major person has to sign on its
behalf, (iii) If the nominee dies before
the death of the depositors, the
nomination automatically terminates
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d Attachment order is issued by ..... (i)
Income Tax Officer, (ii) Public Debt
In case of Unitary elastic demand, Officer, (iii) Sales Tax
the value of Ed is ..... Officer
a. Zero a. Only (i) and (ii)
b. One b. Only (i) and (iii)
c. Infinite c. Only (ii) and (iii)
d. Greater than one
d. (i), (ii) and (iii)
Ans - b
Ans - b
Once a Bearer is always a bearer is The mortgagor who has redeemed
applicable in respect of ..... the mortgage is entitled on
redemption to the following
a. A bill of exchange payable after 90 right .....
days
b. A cheque a. To get back from the mortgagee,
the mortgage deed and all the other
c. A demand promissory note related documents b. To obtain
d. A certificate of deposit possession of the mortgaged
property
Ans - b
c. To have the mortgaged property re
transferred at his cost to him or to
Blue chip securities refer to ..... such third person as he may direct
d. All of the above
a. shares of any company
b. shares of companies, which are Ans - d
listed at any of the stock exchange
c. shares of good companies
d. All of the above The DSS and ESS bring about a lot
of transparency in .....
Ans - c
a. Data Processing System
b. Cheque Processing
When a bank lends money to the c. Decisions Making Process
corporate person the relationship d. Withdrawal Processing
between bank and
corporate person is ..... Ans - c
a. borrower and lender
b. creditor – debtor Total investments made in all
c. debtor - creditor subsidiaries and other entities that
d. customer and client are engaged in financial services
activities together with equity
Ans - b investments in entities engaged in
non financial services
Garnishee order is issued by .....
activities should not exceed ..... of
a. Police Officer the bank’s paid-up share capital and
b. Revenue Officer reserves
c. CBI
d. Courts of Law a. 5 percent
b. 10 percent
Ans - d c. 20 percent
d. 25 percent
The various dangers to any Ans - c
computer system can be classified
as ..... (i) Physical damage due to
Choose the correct statement/s
natural calamities, (ii) Damage due about RTGS ..... (i) RTGS went live
to operational problems like power on March 26, 2004 for
failure, System malfunction etc, (iii)
Human errors settlement of inter-bank transactions,
(ii) From April 29,2004. the RTGS
a. Only (i) and (ii) has been opened for the settlement
b. Only (i) and (iii) of customer transactions, (iii) The
c. Only (ii) and (iii) receiving bank is under an obligation
d. (i), (ii) and (iii) to credit the beneficiary customer's
account within two hours of receiving
Ans - d the credit notification at its payment
systems gateway
a. Only (i) and (ii)
b. Only (i) and (iii)
36
c. Only (ii) and (iii) a. One month
d. (i), (ii) and (iii) b. Three months
c. Six months
Ans - d d. Twelve months
Eligibility Criteria for banks to apply Ans - c
for PD licence ..... (i) Minimum Net
Owned Fund of 1,000
Scheduled commercial banks
crore, (ii) Minimum CRAR of 9 per (SCBs) and primary dealers (PDs)
cent, (iii) Net NPAs of less than 3 per have been allowed with effect
cent and a profit making record for from November 2006, to cover their
the last three years short positions within an extended
period of .....
a. Only (i) and (ii)
b. Only (i) and (iii) a. five trading days
c. Only (ii) and (iii) b. two trading days
d. (i), (ii) and (iii) c. short sales not permitted
d. none
Ans - d
Ans - a
What type of function is carried by
the banks under bancassurance?
Real Time Gross Settlement System
a. the banks develop their own means a payment system in which
insurance products and sell to their .....
customers
a. both processing and final
b. the banks develop their own settlement of funds transfer
insurance products and sell through instructions can take place
of other companies c. the banks continuously
dstribute insurance products of other
companies to their customers as b. final transaction takes place at the
agents end of the day c. final payment is
physically effected within 24 hours d.
d. the banks distribute insurance Final settlement of funds take place
products of other companies to their at 3 PM daily
customers as agents with with-risk or
without-risk features Ans - a
A computer network mainly used to
Ans - c share .....
Which of the following statements, is a. Data
correct? (i) Banks are required to b. Software
submit a return of unclaimed c. Hardware
deposits under section 26 of banking d. All of the
regulation Act, 1949, (ii) This
includes all the accounts which have Ans - d
not been operated upon for ten
years, (iii) The return of unclaimed
deposits is required to be submitted Audited copies of Balance sheet is to
on 31st March of every year be submited to ..... (i) 3 copies to
RBI, (ii) 3 copies to
a. Only (i) and (ii) Registrar of Companies, (iii) Annual
b. Only (i) and (iii) General Body Meeting
c. Only (ii) and (iii)
d. (i), (ii) and (iii) a. Only (i) and (ii)
Ans - d b. Only (i) and (iii)
c. Only (ii) and (iii)
Which of the following is not a d. (i), (ii) and (iii)
function of capital market regulatory
authority i.e. SEBI, in India? Ans - d
The Officer who Issues a Notice
under SARFAESI Act should be at
least
a. Branch Manager
b. Chief Manager
c. Assistant General Manager
d. Deputy General Manager
Ans - b
Which is not correct with regard to
Marketing?
a. Focus is on the consumer
b. Marketing is a broader concept
than selling
c. Focus is on the products
d. Profit maximises with customer
satisfaction
Ans - c
Based on Product, markets can be
grouped into .....
a. Real Estate Market
b. Regional Market
c. Cash/Spot Market
d. Commodity Market
Ans - a
What is the time period under
SARFAESI Act for replying the
borrower, in case he raises an
objection for possession of the asset:
a. 60 days
b. 30 days
c. 7 days
d. 3 days
Ans - c
Govt. Securities are called gilt-edge
securities because ..... (i) these
securities carry fixed
interest rate, (ii) they are easily
realizable, (iii) their prices generally
do not fluctuate adversely
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d

a. regulation of debt market A withdrawal slip is a .....

b. control over the equity market
c. framing the rules for pension funds
d. supervision over listed companies
Ans - c
All pre-paid payment instruments
issued in the country shall have a
minimum validity period of
...... from the date of
activation/issuance to the holder.
What is the maximum time limit for
publishing a bank balance sheet in a. Cheque
the newspaper? b. Bill of Exchange
c. Promissory Note
a. Within 2 months from the date of d. All of these
balance sheet b. Within 3 months
from the date of balance sheet c. Ans - c
Within 6 months from the date of
balance sheet d. No such time limit
Eligibility Criteria for Scheduled
Ans – c commercial banks (AD Category I) to
become trading/clearing members of
the currency derivatives segment to

37
be set up by the stock exchanges
recognized by SEBI ..... (i) Minimum
Net Owned Fund of 500 crore, (ii)
Minimum CRAR of 10 per cent, (iii)
Net NPAs of less than 3 per cent and
a profit making record for the last
three years
Under the finger print identification
systems, the customers use bank
cards wherein the ___ of the index
finger stored on the magnetic strip on
the card is used to match the
impression with that scanned at the
time of making withdrawal
State which of the following
statement/s is/are correct? (i) KYC
norms is applicable only to deposit
accounts, (ii) A cash credit facility is
a fund based limit, (iii) An incomplete
negotiable instrument is called as an
inchoate instrument

a. Only (i) and (ii) a. Magnetic Ink Impression a. Only (i) and (ii)
b. Only (i) and (iii) b. Ink Impression b. Only (i) and (iii)
c. Only (ii) and (iii) c. Embossed Impression c. Only (ii) and (iii)
d. (i), (ii) and (iii) d. Digitized Impression d. (i), (ii) and (iii)

Ans - d Ans - d Ans - c

Bailor – bailee relationship is
applicable in .....
Some banks are using mobile ..... In addition to the normal services as
mounted on trucks to offer regular a. cash deposited with cashier by defined in the Banking regulation
cash withdrawal like customer Act, banks also undertake activities
pension payments at remote areas. b. safe deposits locker like project appraisal, underwriting of
c. demand draft issued by bank issue, technical know how etc. This
a. Cheque Dispenser Machines d. keeping articles in safe custody business is called .....
b. ATMs with bank
a. Consultancy services
c. Cash Dispenser Machines Ans - d b. Bancassurance
d. Both a and b c. Merchant banking
d. Advisory services
Ans - c Which of the following is the
supplementary liquid reserve Ans - c
requirements of banks, in addition to
Smart card ..... (i) has an integrated CRR? Under National Electronic Funds
circuit with micrprocessor chip Transfer (NEFT), bank to afford
embedded in it so that it a. CRAR credit to beneficiary accounts
immediately upon completion of a
could perform calculations, maintain b. Marginal Ratio batch or else return the transactions
records and act as electronic purse, c. SLR within ..... hours of completion of
(ii) has built in facility for protection d. CAR batch settlement, if credits are
against fraudulent operations, (iii) unable to be afforded
can either be rechargeable or Ans - c
exchangeable a. immediately
b. half an-hour
a. Only (i) and (ii) Motor car for a busy doctor is a ..... c. one hour
b. Only (i) and (iii) d. 2 hours
c. Only (ii) and (iii) a. Necessary
d. (i), (ii) and (iii) b. Comfort Ans - d
c. Luxury
Ans - d d. None of these
The functions of purchase of
Ans - a receivable, maintenance of
Which of the following is the receivable ledgers and collection of
advantage of bancassurance dues on due date, under factoring
business to banks (which one cannot Wrist watch for a college student is a becomes the function of .....
be included)? (i) improved customer .....
retention and overall customer a. Seller
satisfaction, (ii) higher employee a. Necessary b. Factor
productivity, (iii) means of earning b. Comforts c. Buyer
risk free non-interest income c. Luxury d. a&c
d. None of these
a. Only (i) and (ii) Ans - b
b. Only (i) and (iii) Ans - a
c. Only (ii) and (iii)
d. (i), (ii) and (iii) Match the following: You have a current account of XYZ
Limited, a public company, account
Ans - d i) IRDA a. Insurance is operated by itsmanaging director
ii) Garnishee Order b. Judgement and one more director singly. You
Phone are sophisticated electronic debtor receive a notice of death of
devices that can deliver E-mail, their iii) ATMs c. Assignment managing director and another
focus away from the iv) Book debt d. E- Banking notice that liquidation process has
domestic market to the ..... been initiated against the
a. i-D,ii-C,iii-A,iv-B company.Two cheques signed by
a. Ordinary b. i-A,ii-B,iii-D iv-C them (one each) are received for
b. Intelligent payment. What will be bank do?
c. Smart c. i-B,ii-A,iii-D,iv-C d)i-D,ii-C,iii-
d. Both a and b B,iv-A a. Cheque signed by director will be
paid and other cheque signed by
Ans - c Ans - b managing Director will be returned
b. Both the cheques will be paid as
the directors are only agents

38
 c. Bank is not liable to the customer,
c. Both the cheques will be returned c. to safe guard the bank’s interest as the cheque could not have been
as with liquidation process the return the cheque with reason:words paid, otherwise. d. None of the
powers of Board of Directors have and figure differs d. none of the above
ceased above
d. Cheques are issued for the Ans - a
purpose of the company, due to Ans - c
which these can be paid
Which of the following represent the Which of the following is not a
Ans - c acronyms of age groups? (i) feature of an ‘account payee
Which of the following is at zero PUPPIES, (ii) SKIPPIES, (iii) DINKS crossing’?
channel level?
a. Only (i) and (ii) a. It is defined as per Section 130 of
a. Retailer b. Only (i) and (iii) NI Act
b. Jobber c. Only (ii) and (iii) b. Its payee is holder only
c. Internet d. (i), (ii) and (iii) c. It can be endorsed and transferred
d. Wholesaler any no. of times
Ans - d d. All the above
Ans - c
Ans - d
Which of the following is not the
In which of the following accounts, characteristic of physical product?
the funds (the principal and interest) Where by any case other than the
can be repatriated outside India? a. Tangible wrongful act or default of the
b. Core value produced in factory mortgage or mortgagee, the
a. FCNR, NRO account only c. Heterogeneous mortgaged property is wholly or
d. Transfer of ownership possible partially destroyed or the security is
b. NRO, NRE accounts only rendered insufficient and the
c. FCNR, NRE only Ans - c mortgagor has not provided enough
d. None of the above further security, the mortgagee has a
A ..... is a type of transferable right to file a suit in a court of law for
Ans - c financial instrument which is traded the mortgage money.A security is
at local stock exchange of a considered insufficient unless the
A crossing is direction of the drawer value of the mortgaged property
to Which among the following is not country but represents a security exceed the amount for the time
correct? (usually, in the form of equity) which being, by .....
is issued by a foreign publicly listed
a. General crossing - to collection company a. one-third, or if consisting of
bank building, exceeds by one-half
b. Not-negotiable crossing - to a. American Depository receipt b. one-half or if consisting of
collecting bank b. Depository Receipt building exceeds by one-third
c. Account payee crossing – to c. Global Depository Receipt c. one-third in both cases
paying bank d. Foreign Convertible Bonds
d. All are correct d. one-half in both cases
Ans - b
Ans - c Ans - a

Garnishee order is issued by ..... Bank A grants an overdraft to ABC

Ltd against book debts. This is The Urban Cooperative Banks are
a. Police Officer secured by ..... regulated by .....
b. Revenue Officer
c. CBI a. hypothecation a. RBI
d. Courts of Law b. pledge b. NABARD
c. mortgage c. Registrar of Coop Societies of
Ans - d d. assignment the State Govt
d. SEBI
Which of the following instrument Ans - d
has three parties i.e.drawer, payee Ans - a
and drawee, to the instrument? On the request of its customer B,
Commercial Bank’s branch,
a. Bill of exchange and cheque transferred the account to its branch. The facility that enables Indian
b. Bill of exchange and promissory A cheque was presented on the first exporters to extend term credit to
note (transferor) branch which it returned importers of eligible goods
c. Promissory note and cheque with thereason ‘refer to drawer’. atthe post-shipment stage is called
d. Promissory note and demand draft Customer claimed damages from the .....
bank
Ans - a a. buyer’s credit
a. Bank is liable to the customer for b. channel financing
not having returned the cheques with c. seller’s credit
A cheque is received for payment a proper reason d. supply chain partnering
with amount mentioned only in
words. The banker would ..... b. Bank is liable to the customer for Ans - c
having returned the cheques if the
a. as per NI Act,honour the cheque balance in the other branch was U/s 35-A of Banking Regulation Act,
for the amount in words adequate, where account was a banking company, before allowing
transferred. transfer of shares is required to
b. dishonour the cheque because no obtain RBI acknowledgment if such
amount is mentioned in figures transfer results in holding more than

39
..... % of the paid up capital of the
bank
a. 2 provisions of Companies Act 1956
b. 5 which mainly include .....
c. 7.5
d. 10
Ans - b
Under provisions of which of the
following relating to account of a
customer can be disclosed
...... (a) as per banking practices (b)
as per provisions of the law (c) as
per implied or express
consent of the customer
disclosure in public interest?
a. a, b and d only
b. b, c and d only
c. a, b and c only
d. a to d all
Ans - d
...... Market provides a platform for
trading of existing securities and
price discovery thereof
a. Primary market
b. Secondary market
c. Money market
d. Insurance market
Ans - b
under which of the following
circumstances, a bank need to give
notice to the customer, before
exercising right of set off?
a. When customer has expired
b. When customer has gone abroad
indefinitely
c. When garnishee order has been
received
d. When attachment order has been
received
Ans - b
Mr. Ashok Kumar issues a power of
attorney in favor of Mr. Amit Kumar
in July 31, 2017 and dies on
December 03, 2017. Your branch
receives (on Dec 26, 2017) through
clearing house, two cheques, one of
which is signed by Mr. Ashok Kumar,
on Dec 12, 2017. Which cheques will
be paid?
a. Both the cheques will be paid, if
there is balance in the account b.
Both the cheques will be return
c. Cheques signed by Mr. Ashok
Kumar will be paid as the cheques
was signed before death d. Cheques
signed by Mr. Amit Kumar will be
paid, as he is alive
Ans - b
Certain category of banks in India c. Stored value card is a prepaid
are incorporated under the card and card issuer is not a bank
but a service provider d. In prepaid
card the value of the card lying in the
deposit account linked at the back
a. Public sector banks, private banks end
and foreign banks b. RRBs, private
banks and foreign banks c. private Ans - b
banks and foreign banks
A holder for value is .....
d. private banks, foreign banks and
Coop banks a. A bank allows one of its clients to
withdraw against clearing of a
Ans - c cheque.
b. A bank which maintains high net
worth customers accounts
(d) Bank A and Bank B have been
combined into a single bank. Where c. A bank which collects cheques for
bank A survived and Bank B non customers d. A bank which
lost its corporate identity. This is handles high value clearing cheques
called .....
Ans - a
a. Alliance
b. Merger A charge against property for an
c. Acquisition amount of debt where neither
d. Consolidation ownership not possession is
passed to the creditor is known as
Ans - b .....
...... is the first national level.
Network in India which was a. Pledge
commissioned in Fabruary 1991
b. Hypothecation
a. Internet c. Mortgage
b. INET d. Lien
c. BANKNET
d. VSAT Ans - b
Ans - c
Which among the following is a false
Impact of IT on banks can be ..... statement?
a. change in organisational structure a. Signature of the payee or
b. change in organisational endorsee for negotiation of the
orientation cheque is called endorsement b.
Endorsement can be only on the
c. change in service delivery channel back side or separate sheet of paper
d. All of the above called allonge c. A cheque can be
endorsed for any number of times
Ans - d
d. Endorsement is possible on bill of
exchange, promissory note and
The fear psychosis rings the air with cheque
the spread of IT and the impact is felt
cutting across all Ans - b
levels of management of functional
areas. These fears may be described
as ..... (i) Job Content- Which of the following endorsements
losing of one's skills and expertise, match their description?
(ii) Job Security, (iii) Authority
Dilution a. Pay to X Rs.10000 and Y Rs.2000
(the cheque is for Rs.12000)- partial
a. Only (i) and (ii) endorsement
b. Only (i) and (iii) b. Pay to X only-restricted
c. Only (ii) and (iii) endorsement
d. (i), (ii) and (iii) c. Pay to X when he returns from
UK-conditional endorsement
Ans - d d. Pay to X without my
responsibility – sans recourse
endorsement
Which of the following statement is
false? Ans - a
a. In Stored value card monetary Which of the following is not the level
value is stored in the card itself of the product?
b. In Stored value card credit limits
are generally provided by the card a. Potential product
issuer b. Augmented product
40
c. Product line
d. Expected product
Ans - c
A Government Security is the
security which is issued by the
Government to raise a public loan
and issued in the form of ..... (i)
Bearer bonds, (ii) Promissory notes,
(iii) Stock certificates
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
The mechanism for pooling
resources from the public by issuing
units to them and investing the
funds, so collected in securities in
accordance with objectives disclosed
in an document, is called .....
a. Public issue
b. Mutual fund
c. Securitization
d. Initial public offering
Ans - b
A post-dated cheque is returned by
the bank without payment because,
the bank is exposed to the following
risk (a) customer dies before date of
the cheque (b) if garnishee order is
received before date of the cheque
(c) if payment is stopped by the
drawer before date of the cheque (d)
if another cheque is returned for
insufficiency of funds, after date of
the post-dated cheque
a. a, b and c are correct
b. a to d all are correct
c. a, c and d only are correct
d. b, c and d are correct
Ans - a
A ..... Transaction processing system
reflects any changes in the books of
the instantaneously.
(i) Real-time, (ii) On-line, (iii) Batch
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - a
Small and relatively new banks with
limited network of branch become
better placed to compete with
established banks, by integrating .....
in their operations.
a. Customer advice
b. Customer share
c. Advertising agencies
d. Information technology
Ans - d
Under the finger print identification
systems, the customers use bank
cards wherein the ___ of the index
finger stored on the magnetic strip on
the card is used to match the
impression with that scanned at the
time of making withdrawal
a. Magnetic Ink Impression
b. Ink Impression
c. Embossed Impression
d. Digitized Impression
Ans - d
One of the following is a target group
for the marketing of educational loan
a. All the customers
b. Students
c. Only poor students
d. Students having promising
educational track record
Ans - b
Cardholder's data can be well
protected through ..... (i) Firewall
Configuration, (ii) Effective
Encryption, (iii) Digital Encryption
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
Which of the following is not a
function of SEBI?
a. To regulate securities market
b. To protect the interest to investors
in securities
c. To promote the development of
securities market
d. None of the above
Ans - d
Direct marketing channel functions
which channel level?
a. One level
b. Two level
c. Zero level
d. Three level
Ans - c
Bank B made payment of a cheque
with following endorsements. In
which of these cases the payment
will not be deemed to be a payment
in due course?
a. Endorsement by X the payee, in
favour of Mr. Y and the cheque has
not negotiable crossing. b.
Endorsement by X, to Y, Y to Z and
Z to A
c. Endorsement by Renu wife of Mr.
Sunil Kumar, while the cheque is in
favour of Mrs. Sunil Kumar
d. Endorsement by X the payee in
favour of Mr. Y while the cheque is
having payee’s account crossing
Ans - d
Weaker sectors include ..... (i) Small
and Marginal farmers, (ii) Landless
laborers, tenant
farmers, artisans and village and
cottage industries where credit limit
does not exceed Rs.25000, (iii)
Beneficiaries under SGSY, SJSRY,
SLRS
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
Hot listing of Credit card means .....
a. enhancement of amount of limit in
the card
b. blocking the operations of the card
c. reducing the amount of limit in the
card
d. listing the card on more than one
network
Ans - b
Adding a standard mark up to the
cost of the product refers to .....
a. Inelastic
b. Price elasticity
c. Break-even price
d. Cost-plus price
Ans - d
The Debit card offers .....
a. revolving credit for certain period
b. payoff the entire amount of card
usage
c. online recover of amount of card
usage
d. all of above
Ans - c
Merchant bankers’ activity relate to
.....
a. Equity and equity related finance
b. Debt and Debt related finance
c. Fund Business
d. Non-Fund business
Ans - a
41
 d. None of the above
a. Only (i) and (ii)
Trust receipt refers to ..... b. Only (i) and (iii) Ans - b
c. Only (ii) and (iii)
a. receipt issued by any trust d. (i), (ii) and (iii)
Which one is not a non-fund based
b. donation receipt of charitable trust Ans - c service?
c. a document containing promise
from the borrower to hold goods or a. Collection of bills and documents
their sale proceeds as The maximum shareholding of a b. Letter of Credit
trustee for the banker. stock exchange by a single investor, c. Bill discounting
d. Any of the above is restricted to …… d. Bank guarantee

Ans - c a. 2% Ans - c
The three layers of packaging are
b. 5% .....
The most visible of impact of c. 10%
technology is reflected in the way the d. 15% a. Primary, secondary, tertiary
banks respond ..... for packaging
making its effective used for efficient Ans - b b. Primary, secondary and shipping
service delivery. packaging
c. Shipping, inner and outer packing
a. Technically In Modems (whose the wrong one) d. None of the above
b. Operationally ..... (i) Digital signals are amplified,
c. Strategically (ii) Several digital signals Ans - b
d. Financially are multiplexed, (iii) AC is converted
DC
Ans – c By making a table, a carpenter
a. Only (i) and (ii) creates .....
b. Only (i) and (iii)
In early stages computers were c. Only (ii) and (iii) a. Form utility
being used as ..... Systems in d. (i), (ii) and (iii) b. Place utility
organization Fulfilling their own
requirements. Ans - d c. Service utility
d. None of these
a. Stand-alone
b. Network Systems (LAN) Basic component of a data Ans - a
c. Satellite Network Systems Communication System is .....
d. Microwave Systems The satisfaction of human want is
a. Transmitting/Receiving devices called .....
Ans - a b. Interface equipments
c. Transmission medium a. Consumption
d. Transmission Processors b. Production
A ..... Transaction processing system c. Distribution
reflects any changes in the books of Ans - a d. None of these
the instantaneously.
(i) Real-time, (ii) On-line, (iii) Batch The demand for commodity on which Ans - a
a consumer spends more
a. Only (i) and (ii) percentage of his income is ..... The objectives of price can be .....
b. Only (i) and (iii)
c. Only (ii) and (iii) a. More elastic a. Profit
d. (i), (ii) and (iii) b. Less elastic b. Market share
c. Unity c. cash flow
Ans - a d. None of these d. All the above

Ans - a Ans - d
What steps have been taken by
banks tcounter the high turnover rate An activity of intangible nature to
of IT professionals? (i) Banks have satisfy the customer requirement is RBI approval is required for
given life time job security called as... appointment of a chairman of a bank.
temployees, (ii) Banks have set up Which of the following statements, is
their In-House Centre for Software a. Marketing correct? (i) RBI approval is required
Development, Maintenance and b. Services for appointment of a chairman of a
manpower training, (iii) Banks have bank, (ii) RBI is empowered to
offered motivational incentives c. Products remove top managerial personnel of
d. None of the above a bank, (iii) RBI may appoint suitable
a. Only (i) and (ii) person in place of the person so
b. Only (i) and (iii) Ans - d removed
c. Only (ii) and (iii)
d. (i), (ii) and (iii) a. Only (i) and (ii)
Sales are declining, profits are b. Only (i) and (iii)
Ans - c declining and competition is c. Only (ii) and (iii)
Mobile Banking offers the following increasing. These indicate that the d. (i), (ii) and (iii)
..... (i) Withdrawal of cash anywhere product may be in .....
in India, (ii) Statement Ans - d
of account for a specific period, (iii) a. Introduction stage
Transfer of funds from one account b. Decline stage Which is/are correct as regard to
to another account c. Growth stage smart/debit cards? (i) Banks are

42
generally extending this facility to
savings/current account, fixed
deposit account holders with built in
liquidity features, (ii) Smart/Debit
card facility is not extended to loan
account holders
a. Only (i)
b. Only (ii)
c. Either (i) or (ii)
d. Both (i) and (ii)
Ans - d
Which of the following is an
important reason for regulation of
banking system? (i) to promote
confidence of public in banking
system, (ii) to protect interest of the
investors, (iii) to ensure that the
financial markets are efficient and
transparent
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
Participatory notes are not allowed to
be issued to
a. Foreigners
Ans - a
Time limit for settlement of claims in
Deceased cases .....
a. 30 days from the date of death
b. 15 days from the date of death
c. 15 days from the date of
submission of all the documents d.
30 days from the date of submission
of all the documents
Ans - c
....
A draft purchased is reported lost
and the purchaser wants to stop the
payment of the draft. What should
the Bank do?
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.
Ans - a
c. Credit Risk
d. All of the above
Ans - c
The overall responsibility of risk
management is assigned to...
a. Risk Management Committee
b. Board of Directors
c. Risk management Group
d. None of these
Ans - a
This kind of market does not exist on
the basis of Geographical Area.
a. Regional Market
b. National Market
c. Retail Market
d. Global Market
Ans - c
Diversification in which the new
products or businesses have no
relationship to the existing
technology, products or market of the
firm is called as .....
a. Concentric diversification
b. Horizontal diversification
c. Conglomerate diversification
d. None of the above

b. Non-Residents Ans - c
c. PIOs Which among the following is not
d. None of these mentioned in the Memorandum of
Association of a company? A social and managerial process by
Ans - c which individuals and organizations
a. Objects of the company obtain what they need and want
b. Authorized capital through value creation refers to
The small companies created which one of the following concepts?
exclusively to deal with Govt c. Powers of directors in conducting
Securities are called... general affairs of the company d. a. Selling
Registered office b. Advertising
a. Mutual Funds c. Barter
b. Primary Dealers Ans - c d. Marketing
c. FIIs
d. NBFCs Ans - d
LAF relates to...
Ans - b In the case of SRMS, what is the rate
a. Temporary loans to state govt by of subsidy for project cost of more
RBI than Rs.25,000/-? (i) 25% of the
A period of rapid market acceptance b. Short term loans to Banks by RBI project cost, (ii) Minimum of Rs
and increasing profits refers to which c. Temporary loans to central govt by 10000 (iii) Maximum of Rs 20,000.
of the following stages of the product RBI
life cycle? d. None of these a. Only (i) and (ii)
b. Only (i) and (iii)
a. Decline Ans – b c. Only (ii) and (iii)
b. Maturity
c. Introduction Nomination can be done in the case d. (i), (ii) and (iii)
d. Growth of ..... (i) Individuals, (ii) Partnership,
(iii) Sole Ans - b
Ans - d Proprietorship
Minimum of Rs 12500
a. Only (i) and (ii)
In the call/notice money market the b. Only (i) and (iii)
following participants are not allowed c. Only (ii) and (iii) Karan draws a cheque for Rs. 5,000
to trade ..... (i) all d. (i), (ii) and (iii) favouring Vignesh (a minor aged 12
corporates, (ii) Primary Dealers and years) or bearer.
Mutual funds, (iii) banks Ans – b Vignesh presents the cheque on
Treasury Operations is an example counter duly signed on the back.
a. Only (i) and (ii) for Bank should .....
b. Only (i) and (iii)
c. Only (ii) and (iii) a. Market Risk a. refuse, since no contractual
d. (i), (ii) and (iii) capacity
b. Operational Risk

43
b. pay the cheque after inquiring with c. Higher of a and b
X d. Lower of a and b a. 5-10%
b. 10-15%
c. pay to Vignesh without any Ans - c c. 15-20%
responsibility of bank d. ask Vignesh d. 20-25%
to bring his parents Mandate is a/an ..... agreement. (i)
Stamped, (ii) Unstamped Ans - b
Ans - c
a. Only (i)
b. Only (ii) Customer keeps certain valuables
If loan given to ..... agriculture is c. Either (i) or (ii) with the bank for safe-keeping. Here
classified in Priority Sector. (i) Direct, d. Both (i) and (ii) the bank is a .....
(ii) Indirect
Ans - b a. Debtor
a. Only (i)
b. Only (ii) Certification Test for marketing & b. Creditor
c. Either (i) or (ii) selling of mutual fund products is c. Trustee
d. Both (i) and (ii) conducted by d. Lessee

Ans - d a. SEBI Ans – c

b. NSE or BSE
Attachment order is issued by ..... (i) c. AMFI RBI notifies CRR under ..... Act
income tax officer, (ii) sales tax d. RBI
officer, (iii) public debt a. Section 24 of the Banking
office Ans – c Regulation Act
b. Section 42 of the Banking
a. Only (i) and (ii) Which one of the following doesn't Regulation Act
b. Only (i) and (iii) come under the functions of SEBI in c. Section 24 of the RBI Act
c. Only (ii) and (iii) India? d. Section 42 of the RBI Act
d. (i), (ii) and (iii)
a. Supervision over listed companies Ans - d
Ans - a b. Management of Payment System
c. Control over Equity Market
A cheque drawn for Raj or order is d. Regulation of Debt Market The rate at which RBI lends to banks
stolen. The thief made endorsement under the Liquidity Adjustment
as Raj on the cheque in his favour. Ans - b Facility (LAF) is called .....
The cheque is presented in clearing
and paid by bank. True owner later a. Repo Rate
on sent legal notice to bank. What is Which is not a criteria generally b. Reverse Repo Rate
the liability of the bank? adopted for short listing the ideas c. Bank Rate
generated? d. Cash Reserve Ratio
a. the paying bank will get protection
under N.I. Act a. Should build on the resources and Ans - a
the skills of the firm b. Should be
b. forgery does not give any rights to suggested by the staffs
bank, hence liable c. under section Retail loans are generally given for
85, the paying bank is liable d. under c. Should have sufficient market the duration of
section 131, the paying bank is potential
liable. d. Should fit into the overall strategy a. 2-7 years
of the firm b. 2-5 years
Ans - a c. 5-7 years
Ans - b d. None of these
Can Board of Directors of a Public
Limited Company borrow in excess Ans - c
of the aggregate of the paid-up No-frills savings bank account, multi-
capital and its free reserves? city cheque book facility of savings
bank account are Marketing management comprises
a. Yes, after passing a resolution at a example for ..... .... key functional aspects.
duly convened meeting of the Board
b. Yes, after obtaining consent of the a. Line extension a. 3
shareholders in its General Meeting b. Brand extension b. 4
c. No, it is prohibited under Section c. Multi brands
293 of Companies Act d. New brands c. 5
d.6
d. Yes, Borrowing upto 200% of Paid Ans - a Ans - b
Up capital & free reserves is
permitted under Sec 293 Which one doesn't belong to Money Bank loans to ..... are covered under
Market? Priority Sector as Indirect advances.
Ans – b (i) corporates directly
a. T. Bills
A Limited Company can make a loan b. Commercial Papers engaged in Agriculture and Allied
to any other body corporate and give c. PSU Bonds Activities to an aggregate limit of
a guarantee upto d. Certificate of Deposits more than 2 crore, (ii) Bank loans to
...... Farmers’ Service Societies (FSS),
Ans - c Bank loans to Primary Agricultural
a. 60% of its paid-up share capital Normally, the amount of advance Credit Societies
and free reserves payment made to the seller by the
b. 100% of its free reserves buyer before issue of guarantee is... a. Only (i) and (ii)

44
b. Only (i) and (iii) b. Only (i) and (iii) a. Only (i)
c. Only (ii) and (iii) c. Only (ii) and (iii) b. Only (ii)
d. (i), (ii) and (iii) d. (i), (ii) and (iii) c. Either (i) or (ii)

Ans - d Ans - d d. Both (i) and (ii)

ATM cards are issued to a person Ans - b

who maintains any of following The minimum tenur of issue of CPs
accounts with the bank ..... can be ..... days.
(i) Savings bank Accounts, (ii) Mr. Ram has a bank account and
Current Accounts, (iii) Term Deposits a. 7 credited Rs. 5 lakh in it.
b. 14 Subsequently he was arrested on
a. Only (i) and (ii) c. 30 charge of fraud. The police informed
b. Only (i) and (iii) d. 91 the bank not to allow withdrawals
c. Only (ii) and (iii) from his account. Two days later,
d. (i), (ii) and (iii) Ans - a bank receives a cheque of Rs.
.... 15,000 favouring Ram's creditor.
Ans – a Bank should .....
The banking ombudsman receives
All the customers are charged with a maximum number of complaints in a. not to pay cheque
single price without any respect of;
discrimination is called .. b. return cheque with memo stating
a. foreign bank A/c holder in jail c. honour the
a. Dynamic Price b. public sector bank cheque
b. Fixed Price c. regional rural bank d. get police orders for payment
c. Single Price d. co- operative bank
d. Variable Price Ans - c
Ans - b
Ans - b
Vaidyanathan Committee's report As per MSMED Act, the buyer has to
relates to revival of ..... pay penalty, if he fails to pay the
The Advance Value on LIC Policy is amount to the supplier
linked with a. RRBs within .....
b. NBFCs
a. Face Value c. Cooperative Credit Structure a. 30 days
b. Surrender Value d. Nationalised Banks b. 45 days
c. 60 days
c. Paid Up Value Ans - c d.90 Days
d. Depending on the Age of the ....
Policy Holder Ans - b
The Third Pillar under BASEL II is?
Ans - b
a. market discipline
b. disclosure norms ...... % of small enterprises advances
PDs are permitted to borrow on an c. minimum capital requirdment should go to micro enterprises in
average in a reporting fortnight to the d. supervisory review case of foreign banks.
extent of ..... % of
Ans - a a. 20
their total Net Owned Funds as at b. 40
the end of March of the previous c. 60
financial year in the call/notice After close of business hours by 3.30 d.80
money market. hrs. the account holder himself
availed payment. At 4.30 p.m. Ans – c
a. 75 income tax attachment order is
b. 175 received by bank. What would be the Breakdowns in internal controls is an
c. 225 liability of paying bank? example for
d. 275
a. payment is made in due course a. Market Risk
Ans - c and as payment is debitable next b. Operational Risk
.... day, bank is protected. c. Credit Risk
b. payment is not in due course since d. All of the above
The market trading timings for paid after reasonable time.
Government Securities are from ..... Ans – b
AM to ..... PM c. attachment order will be effective
after bank's right of lien over the late
a. 9, 4 payment bank d. should approach In Manufacturing sector, medium
b. 9, 5 the customer to get the order enterprises investment in plant and
c. 10, 4 changed to next day. machinery is
d. 10, 5
Ans - b a. Less than 25 lakhs
Ans – b b. 25 Lakhs to 5 Crores
c. 2 Crores to 5 Crores
Section 45ZA to 45ZF relate to For creating Equitable Mortgage by d.5 Crores to 10 Crores
Nomination in ..... (i) Deposit, (ii) Deposit of Title Deeds, the property
Safe custody, (iii) Locker must be situated in ..... Ans - d
accounts (i) Where EM is created, (ii) Any
where in India.
a. Only (i) and (ii)

45
Which one doesn't fall under Multi- As per MSMED Act, if the buyer fails c. Wholesale Banking
user Systems? to pay the amount to the supplier d. Corporate Banking
within 45 days, he has to
a. Mini computers pay compound interest to the Ans - b
b. Micro-computers supplier on the amount with monthly
c. Stand Alone Computers interest at ..... of the bank
d. Main Frame Computers rate. As per SGSY, who will not be
member of the team while selecting
Ans - c a. two times the Swarozgaris?
b. three times
c. four times a. BDO
d. five times b. Banker
Branches send the information to c. BPL Families
head office covering branch profile Ans - b d. Surpanch
containing .....
Ans - c
a. Standing data file (SDF form) Trading of securities of a particular
b. Performance report file (PRF) company at a stock exchange can be Under group loan (SGSY), the group
c. Both a and b suspended by is entitled to a subsidy of ..... % of
d. Neither a nor b project cost.
a. RBI
Ans - c b. Central Govt a. 20
c. SEBI b. 30
d. AMFI c. 40
The process of product development d. 50
comprises of ..... main stages? Ans - c
Ans - d
a. 3
b. 4 Which one is not a Commonly Banker's lien is not applicable in
c. 5 forfaited instrument? case of ..... (i) Safe custody, (ii) debts
d. 6 not due, (iii) Securities
a. Promissory notes left negligently
Ans - c b. Bills of exchange
a. Only (i) and (ii)
Diversification in which the new c. Drafts b. Only (i) and (iii)
products appeal to the existing d. None of these c. Only (ii) and (iii)
customers though the products d. (i), (ii) and (iii)
are technologically unrelated to Ans - d
existing product lines is called as ..... Ans - d

a. Concentric diversification Clearing house facilities of securities

is provided by Sameer issued a cheque at 4:30
b. Horizontal diversification p.m. (one hour after close of
c. Conglomerate diversification a. SEBI business hours of the bank) to Ranjit.
d. None of the above b. Stock Exchanges Ranjit approached the bank and on
c. RBI request got paid the money at 4:45
Ans - b d. Clearing Corporation of India p.m. as late payment. Sameer
reached the bank and stopped
Ans - b payment of cheque issued to Ranjit
PDs are permitted to lend on an at 4:50 p.m. on the same day. Who
average in a reporting fortnight to the is liable for loss?
extent of ..... % of their
RBI introduced the ECS-RAPID in? a. Payment after business hours is
total Net Owned Funds as at the end not a payment in due course hence
of March of the previous financial a. 1983 bank is liable, Section 10 N.I. Act.
year in the call/notice money market. b. 1987
c. 1993 b. Payment even though after
a. 25 d. 1997 business hours but within banking
b. 50 hours is protected under Section 31.
c. 75 Ans - d c. Payment late for today is protected
under Section 85.
d. 100 The purchase amount is debited to d. Refused to accept stop payment
the customers a/c immediately after instructions since late for today.
Ans - a the transaction in .....
.... Ans - a
a. Debit Card
What can be a characteristic of b. Credit Card
Service Products? c. Charge Card If both duplicate and original drafts
d. Smart Card are presented in Clearing, Bank
a. Transfer of ownership possible should pay ..... (i) original
b. Tangible Ans - a and return Duplicate (ii) Pay
c. Homogeneous duplicate and return Original
d. Perishability
Pick the odd one...... a. Only (i)
Ans - d b. Only (ii)
a. Commercial Banking c. Either (i) or (ii)
b. Retail Banking d. Both (i) and (ii)

46
Ans - b Examples of documents are ..... (i) a. Only (i)
Word-processing files, (ii) b. Only (ii)
Spreadsheets, (iii) Bitmaps c. Either (i) or (ii)
In Service sector, medium d. Both (i) and (ii)
enterprises investment in equipment a. Only (i) and (ii)
is b. Only (i) and (iii) Ans - b
c. Only (ii) and (iii)
a. Less than 25 lakhs d. (i), (ii) and (iii)
b. 25 Lakhs to 5 Crores Situation in which company targets
c. 2 Crores to 5 Crores Ans - d whole market with one similar offer is
d. 5 Crores to 10 Crores called as .....

Ans – c Expand - CAD/CAM a. mass marketing

b. segmented marketing
a. Computer Aided c. niche marketing
The software that consists of all the Development/Computer Aided d. micromarketing
programs, languages and documents Maintenance b. Computer Aided
supplied by the manufacturer of the Design/Computer Aided Ans - a
computers is called: (i) application Maintenance
software, (ii) system software Bank cannot use the services of one
c. Computer Aided of the following
a. Only (i) Development/Computer Aided person/association/organisation as
b. Only (ii) Manufacturing d. Computer Aided intermediaries in providing financial
c. Either (i) or (ii) Design/Computer Aided and banking services through the
d. Both (i) and (ii) Manufacturing use of business facilitator and
correspondent models .....
Ans - b Ans - d
a. non-governmental
Which of the following is/are the sole organizations
The highest percentage of victims of authority for issuance of currency in b. self-help groups
computer crime are in ..... India? (i) Controller of Currency, (ii) (NGOs/SHGs)
Government of India, (iii) Reserve c. village sarpanch
a. Banks Bank of India d. Micro Finance Institutions
b. Commercial Users (MFIs)
c. Government a. Only (i) and (ii)
d. University b. Only (i) and (iii) Ans - c
c. Only (ii) and (iii)
Ans - b d. (i), (ii) and (iii)
The intention of provisions of
Ans - d shareholders Rights is to ..... (i) To
The minimum percentage of Priority prevent the shareholders of a
Sector advances to be maintained by
foreign banks in India Which of the following do not fall Bank from securing control over the
under qualitative methods of credit management, (ii) To prevent
control adopted by Reserve Bank of preferential Rights on the Assets of
a. 40% India? (i) Selective Credit Control, (ii) the company
b. 18% Credit authorization scheme, (iii)
c. 32% Moral sausion a. Only (i)
d. 60% b. Only (ii)
a. Only (i) and (ii) c. Either (i) or (ii)
Ans - c b. Only (i) and (iii) d. Both (i) and (ii)
c. Only (ii) and (iii)
The board for financial supervision d. (i), (ii) and (iii) Ans - d
has a term of .....
Ans - c Pick the correct statement about
a. One year credit cards ..... (i) Credit cards used
b. Two years Company marketing mix that target in those establishments
c. Ten years market segments very broadly is
d. No time limit called ..... only which have agreed to accept
them for which the card-issuing
Ans - a a. mass marketing bank/institution enters into
b. segmented marketing agreement with them, (ii) Some
c. niche marketing banks provide the facility of cash
In ECS-Credit ..... (i) One account withdrawal through credit cards from
debited, number of accounts d. micromarketing any of their branches and/or ATMs
credited, (ii) One account subject to a certain monetary ceiling
credited, number of accounts debited Ans - a per transaction per month, (iii) Credit
cards are allowed to be used by the
a. Only (i) card holder only
Recipients listed in the BCC field
b. Only (ii) receive a copy of the message, but a. Only (i) and (ii)
c. Either (i) or (ii) are not shown on ..... (i) b. Only (i) and (iii)
d. Both (i) and (ii) c. Only (ii) and (iii)
Any other recipient's copy (excluding d. (i), (ii) and (iii)
Ans - a other BCC recipients), (ii) Any other
recipient's copy (including other BCC Ans - d
recipients)

47
Promotion has to be given a little recommendations of committee on c. Inter-bank file transfer protocol
more importance in marketing communication network of banks? d. International file transfer
services due to the ..... protocol
a. BANKNET
a. Hybrid offer b. SWIFT Ans - a
b. Tangible and intangible c. MICR
characteristics d. All of the above
c. Pure service
d. Tangible good with accompanying Ans - a As per section 108 of Indian
services Evidence Act, 1872, Presumption of
Which are correct regarding Indo - death can be raised only after a
Ans - b Nepal Remittance Scheme? (i) A lapse of ..... Years from the date of
remitter can transfer funds up to any person being reported missing
Which is the form of the element of Indian Rupees. 50,000, (ii) A remitter
promotion mix among? can transfer funds below Indian a. 3 years
Rupees. 50,000, (iii) It is not b. 5 years
a. Personal selling necessary that the remitter should c. 7 years
b. Advertising maintain an account with a bank in d. 10 years
India.
c. Sales promotion Ans - c
d. All of the above a. Only (i) and (ii) ....
b. Only (i) and (iii)
Ans - d c. Only (ii) and (iii) ‘A’ maintaining a SB A/c is reported
d. (i), (ii) and (iii) missing for more than a year.
Balance in his account is Rs 1 lakh.
What is the advantage of Ans - b Which of the following is true
demutualized stock exchange over regarding settlement of claim in this
the mutual stock exchange? (i) the A & B are maintaining an ‘E or S’ case?
ownership is different from trading account. D has been named as
interest, (ii) the management is nominee. Both A & B die in an a. Claim can be settled only after a
different from ownership and trading, accident. C, son of A, serves a legal lapse of 7 years
(iii) the trading is different from the notice thorough his advocate and
ownership and management objects payment to the nominee d. b. Claim can be settled after
What action you will take? obtaining FIR, Non-traceable report
a. Only (i) and (ii) issued by the police authorities &
b. Only (i) and (iii) a. Payment will be made jointly to Indemnity from the claimant as per
c. Only (ii) and (iii) legal heirs of A & B b. Payment will discretionary power of Branch
d. (i), (ii) and (iii) be made to C Manager
c. Claim can be settled after
Ans - d c. Payment to D will be a valid obtaining FIR, Non-traceable report
discharge to Bank’s Liability d. issued by the police authorities
Payment to D will be stopped
Top Executives of banks look at IT & Indemnity from the claimant by
as a ..... requirement and apply it for Ans - c AGM (Admin) of the respective
improving region d. All are true
organizational efficiency and
effectiveness. Which of the following functions are Ans - c
carried by IRDA in India? (i) ....
a. Employee Regulator of insurance companies,
b. Functional (ii) Regulator of insurance products, The BBA asks ..... Banks to
c. Customer (iii) Supervision of the general contribute the LIBOR for each
d. Financial insurance market maturity and each currency.

Ans - b a. Only (i) and (ii) a. 4

b. Only (i) and (iii) b. 8
c. Only (ii) and (iii) c. 16
Under RTGS ..... (i) Bank will route d. (i), (ii) and (iii) d. 32
payments trough online messages to
RBI's clearing cell, (ii) Ans - d Ans - c
....
Each transactions will be cleared and Stand-alone systems are best suited
settled independently on a minute- for the ..... MIBOR was launched in year .....
by-minutes basis, (iii) The payee
would have funds in his account a. CBS a. 1996
within a maximum time frame of two b. Decision-making process b. 1997
hours of the settlement.
c. Customer Service c. 1998
a. Only (i) and (ii) d. None of these d. 1999
b. Only (i) and (iii)
c. Only (ii) and (iii) Ans - b Ans - c
d. (i), (ii) and (iii) ....

Ans - d Expand IFTP .. What is the relationship between the

bank and RBI when the bank is
a. Inter-bank funds transfer handling the currency chest at its
Which of the following was set up as processor branch?
a exclusive data communication b. Inter-bank funds transfer
network for banks in terms of protocol a. Beneficiary and Trustee

48
b. Agent and Principal c. the reply given by the bank to the
c. Bailee and Bailor Ans - b customer was not satisfactory.
d. Trustee and Beneficiary .... d. all the above

Ans - b Mr. X is maintaining a Savings Bank Ans - d

Bank can grant loans against .....
a. LIC Policy
b. CDs
c. FD issues other bank
d. Mutual fund
Ans - a
Vikash wants a demand draft striking
the word 'Order' and writing the word
'Bearer'. How can the 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).
Ans - d
Merchant bankers' activity are not
related to ..... (i) Debt and debt
related finance, (ii) Fund
Business, (iii) Non-Fund Business
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
Long Form Audit Report (LFAR) is
prepared and submitted by
a. RBI inspectors
b. Internal inspectors
c. Statutory auditors
d. Concurrent auditors
Ans - c
Which of the following is true in case
a notice is received by your branch
that an insolvency petition has been
filed against or by a customer?
Account with your branch. His son
reports that he has become insane.
Which of the following action you will Official liquidator is appointed by
not take? which of the following?
a. Operation in the A/c will be a. Board of Directors of a Company
stopped after exercising due going into liquidation
diligence in verifying the fact b. Company Law Board
c. Registrar of Companies
b. Balance in the A/c will be paid to d. Court
the legal heirs of Mr X after obtaining
affidavit & indemnity c. His son will Ans - d
be advised to approach any court for
appointment of Official Receiver What is the tenure of banking
d. Balance in the A/c will be paid to ombudsman?
the Receiver appointed by a court
under Mental Health Act a. 1 years
b. 3 years
Ans - b c. 5 years
.... d. no such time limit
The word 'FTP’ stands for ..... Ans - c
Most common tenur of issue of ICDs
a. File Translate Protocol is ..... days.
b. File Transit Protocol
c. File Typing Protocol a. 7
d. File Transfer Protocol b. 14
c. 30
Ans - d d. 90
Ans - d
Mr. X has been declared insolvent. ....
You receive a cheque for payment
drawn by Mr. X as a trustee of a Creator of Trust is referred as .....
Trust Account maintained at your
branch. He is the sole authorised a. Trustee
signatory on behalf of the Trust. b. Beneficiary
What action you will take?
c. Settlor
a. Return the cheque d. Garnishee
b. Pay the cheque
c. Pay the cheque if confirmed by Ans - c
other trustees ....
d. None of these
All Trust accounts should be verified
Ans - b by Branch Manager at what interval?
Which of the following is not true in a. At the time of taking over charge
respect of Insolvency? b. Half Yearly
c. Annually
a. A person who cannot pay his d. Both a and c
debts of Rs 500/- or more may be
declared as insolvent b. Application Ans - d
for declaring a person insolvent can
be made by his creditors only c. An ....
insolvent person cannot act as
director of company While opening an account in the
name of a Joint Hindu Family a JHF
d. An insolvent can operate his PPF letter is obtained. It will not
A/c and a Trust A/c as trustee be signed by .....

a. Operation in the account should Ans - b a. Karta

be stopped only when the customer
is adjudicated as insolvent
b. Operation in the account should
be stopped from date of notice of
insolvency petition itself
c. Operation in the account should
be stopped only when the Official
Receiver requests in writing
d. None of these
....
Under what circumstances a d.
complaint can be lodged with the
banking ombudsman
a. if the bank has not settled the
issue within a period of two months.
b. the bank has rejected the
complaint of the customer
b. Adult Coparceners
c. Minor Coparceners
All will sign
Ans - c
What are the important features of
new approach of Risk based
supervision of banks? (i) Optimum
utilization of supervisory resources,
(ii) To minimize impact of crises
situation in the financial system, (iii)

49
It involves continues monitoring and bank? (i) Banking regulation Act (as
evaluation of the risk profiles a. debt equity ratio amended) empowers Central
b. internal rate of return government to acquire a Banking
a. Only (i) and (ii) c. net present value company, (ii) It can do so after
b. Only (i) and (iii) d. debt service coverage ratio receiving a report from the RBI, (iii) It
c. Only (ii) and (iii) can also acquire Banking Company
d. (i), (ii) and (iii) Ans - d for better provision of credit.

Ans - d a. Only (i) and (ii)

Which type of the following software b. Only (i) and (iii)
is not used by a person for c. Only (ii) and (iii)
The demand for comforts is ..... preparation of text documents. (i) d. (i), (ii) and (iii)
Data processor (ii) Word processor,
a. Elastic (iii) Compiler Ans - d
b. Inelastic
c. Unitary elastic a. Only (i) and (ii)
d. Perfectly elastic b. Only (i) and (iii) What is the minimum quorum for the
c. Only (ii) and (iii) board meeting?
Ans - a d. (i), (ii) and (iii)
a. 50% of the total strength of
Ans - b Directors
A savings account transferred to b. One-third of the number of
inoperative accounts if there is not Transactions relating to Government Directors present on the day subject
operation in the account receipt are recorded in ..... to a minimum of 3
for the last ..... c. One-third of the total strength
a. Cash book/Day book of the Directors
a. 2 years b. Transfer book d. No such condition
b. 3 years c. Receipt Scrolls
c. 4 years d. All of these Ans - b

d. 5 years Ans - c
In the second phase of Banks'
Ans - c nationalization, 6 more Banks were
IDRBT stands for ..... nationalized on .....

Where by any case other than the
wrongful act or default of the
mortgage or mortgagee,
mortgaged property is wholly or
partially destroyed or the security is
rendered insufficient and
mortgagor has not provided enough
further security, the mortgagee has a
right to file a suit in a court of law for
the mortgage money.A security is
considered insufficient unless the
value of the mortgaged property
exceed the amount for the time
being, by .....
a. one-third, or if consisting of
building, exceeds by one-half
b. one-half or if consisting of
building exceeds by one-third
c. one-third in both cases
d. one-half in both cases
a. Institute for Development and
Research in Banking Technology b.
the Institute for Development and
Research in Business Technology c.
Institution of Development and
the Research in Banking Technology d.
Institute for Development of Rural
Banking Technology
Ans - a
Relationship of Banker with Payee of
Draft is .....
a. Trustee and Beneficiary
b. Drawer and Drawee
c. Licensor and Licensee
d. Principal and Agent
Ans – a
a. 31.12.1974
b. 31.03.1975
c. 01.01.1980
d. 15.04.1980
Ans - d
Which of the following is correct
regarding Capital Adequacy ratio? (i)
The objective of Capital Adequacy is
to strength the financial stability of
banks, (ii) Capital is divided into two
tiers, tier I and tier II, (iii) Assets are
assigned risk weight from 0-100
based on intensity of risk
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)

Ans - a Ans - d

Which of the following transactions

The system in which users use the would amount to a pledge? (i) In a Garnishee Order, the banker on
network without knowing the details Delivery of the key where the goods whom a garnishee order served is
of the Hardware, are stored, (ii) Endorsement of the .....
communication method etc. such a Railway Receipt/Lorry Receipt in
world-wide network is known as ..... favor of bank by the borrower, (iii) a. judgement debtor’s creditor
Endorsement of warehouse receipt b. judgement creditor’s creditor
a. LAN by the borrower in favor of the bank c. judgement creditor’s debtor
b. Internet d. judgement debtor’s debtor
c. CICNET a. Only (i) and (ii)
d. ERPNET b. Only (i) and (iii) Ans - d
c. Only (ii) and (iii)
Ans - b d. (i), (ii) and (iii)
A bank accepts a deposit from a
Ans - d Corporate house. The features of the
Repayment capacity of a company in deposit are: (i) accepted at a
case of term loan proposals, is Which of the following statements is discounted value, (ii) stamp duty is
judged by the banks, with which of correct regarding acquiring of a borne by the bank, (iii)issued as
the following ratios : banking company by the central

50
usance promissory note, (iv)TDS is
not applicable. Identify the deposit
a. commercial paper
b. certificate of deposit
c. flexi deposit
d. caution deposit
Ans - b
A bank finances an agriculturist to
buy a tractor. The loan is secured by:
a. Hypothecation of the tractor
b. Mortgage of the tractor
c. Pledge of the tractor
d. Assignment of the tractor
Ans - a
An idea for a possible product that
company will offer is classified as .....
a. product idea
b. product image
c. customer management
d. none of above
Ans - a
The tools for communications with
the customer are ..... (i) Promotion
mix, (ii) Product and
price (iii) other three elements of
marketing mix
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - b
Detailed stated version of shortlisted
new ideas in meaningful consumer
terms is best classified
as .....
a. product concept
b. production phase
c. production screening
d. raw-material screening
Ans - a
The functions of distribution
channel include ..... (i) gathering
and providing market
information, (ii) marketing research,
(iii) assisting the consumer in
understanding and using the goods
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - b
Variables such as market and
product variability plays a role in
designing of .....
a. positioning strategy
b. targeting strategy
c. differentiation
d. market segmentation
Ans - b
Promotion seeks to influence the
buyer in decision-making through .....
(i) Persuasion, (ii)
Reminding, (iii) Compulsion
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - a
In positioning statement, first thing
that must be stated is .....
a. target segment
b. market segmentation
c. differentiation
d. positioning
Ans - a
Of the following pricing methods, .....
are based on competitors pricing. (i)
English auction, (ii)
Sealed bid auction, (iii) Going-rate
pricing
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans – d
Positioning statement first states the
.....
a. product membership in category
b. points of priority
c. points of differences
d. brands superiority
Ans - a
Which of the following statement/s
is/are True? (i) Commercial Paper is
issued by a Corporate, (ii) Certificate
of Deposit is issued by a Bank,
(iii)Letter of Credit is non fund based
line of credit
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
Proper functioning of a computerised
system is ensured by .....
a. Generation of audit trails
b. Exceptional transaction report
c. Tallying of cash book
d. All of the above
Ans - d
In muiti-user computer networking
.....
a. Computers are based on a
centralised processing concept b.
Various terminals are attached to the
main computer
c. All data and information is kept on
the main computer d. All of above
Ans - d
In star topology .....
a. Each node is joined to the central
node by a separate link b. Devices
are connected in a closed loop
c. Information is passed from one
node to the another in series
d. Devices on the network are
connected to a single continuous
cable
Ans - a
In an optical fibre data is transmitted
through .....
a. a very thin glass or plastic fibres
with a beam of light
b. satellite
c. laser beam driven by a high
speed high current driver
d. both a and c
Ans - d
In a microwave system .....
a. radio waves are modulated 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. all
of above
Ans - d
Banks evaluate a credit proposal
based on which of the parameters?
(i) character, capital, condition, (ii)
capacity, collateral, compliance, (iii)
capital, collateral, (iv) capacity,
compliance
a. (i)
b. (ii)
c. (i),(iv)
d. (i),(ii)
Ans - d
Sec 85 of NI Act,1881 extends
protection to the .....
a. paying banker
51
b. collecting banker b. Rs. 10 lac
c. advising banker c. Rs. 20 lac a. Each node is joined to the central
d. issuing banker d. Rs. 50 lac node by a separate link b. Devices
are connected in a closed loop
Ans - a Ans - b c. Information is passed from one
node to another in series
d. Devices on the network are
...... pools money from investors and The Central Banking Inquiry connected to a single continuous
invests in stocks, bonds, shares. Commission was set up in ..... cable

a. a bank a. 1925 Ans - d

b. a merchant banker b. 1926
c. 1931
c. a factor d. 1933 A coaxial cable consists of .....
d. a mutual fund
Ans – c a. two insulated copper wire
Ans - d b. an inner copper conductor held in
According to Section 130 of Transfer position by circular spacers
of Property Act the transfer of an
X and Y are twin brothers aged 15 actionable claim can be effected only c. single copper wire
years. They want to open a joint by the execution of an instrument in d. all of these
account in your bank. You writing signed by transferor or by his
will allow them, to open a joint duly authorized agent This mode of Ans - b
account ..... transfer of an actionable claim is
known as .....
a. to be operated jointly Effective control mechanism(s) in
b. with operating instructions either a. Assignment computerised environment are .....
or survivor b. Lien
c. with operating instructions former c. Mortgage a. Preventive
or survivor d. Hypothecation b. Detective
d. with operating instructions any one c. Corrective
or survivor Ans - a d. All of above

Ans - a
Mr.Rao wants to give mandate to his
minor son .....
Which of the following ratings are
provided in 'CAMELS' Approach? a. It cannot be accepted since the
mandate is to be given in favour of a
a. A to E minor b. It can be accepted as the
b. A to C minor can act as an agent
c. A & B
d. A to D c. Mandate can be accepted to
operate only credit transactions and
Ans - a no debit should be allowed d. None
of the above
The control risks are ..... (i) Internal
central Risk, (ii) Organizational Risk, Ans - b
(iii) Management risk &
Compliance Risk,
Expand - IDRBT
a. Only (i) and (ii)
b. Only (i) and (iii) a. Institute for development &
c. Only (ii) and (iii) Research in Banking & Training b.
d. (i), (ii) and (iii) Institute for development & Research
in Banking Terminalogy c. Institute
Ans - d for development & Research in
Banking Technology d. None of the
above
Assessment is to be made under
Risk Based Supervision in ..... areas. Ans - c
Ans - d
Audit trail is .....
a. A chronological record of all
events occurring in a system is:
b. Report submitted by auditors
c. A collection of record generated by
database administrator d. All of
above
Ans - a
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

a. 4 Ans - c
b. 8 A message switcher is used to .....
c. 10
d. 12 a. store and forward data to large Executors and administrators can
number of terminals over a single delegate their powers to a third party
Ans - d communication channel b. send to operate the account
more than one signal simultaneously ......
over a single communication channel
Up to which of the following limits a. By mandate
loan granted to Small Scale service c. intercept and handle
Business Enterprises for instrument communication activities for the host b. By power of attorney
in fixed assets excluding land and computer d. all of above c. By obtaining permission from RO
building are treated as priority d. None of the above
sector? Ans – a
Ans - b
a. Rs. 5 lac In bus topology .....

52
 Ans - a Forex is a ..... hour market.
Registration of a society is required
..... a. 8
Under the banking ombudsman b. 12
a. To sue in it’s own name as a scheme a complaint can be lodged c. 24
separate legal entity b. To open a with the ombudsman ..... d. None of the above
bank account
a. within in the specified jurisdiction. Ans - c
c. To facilitate receipt of b. with the head office of the bank ....
donations/grants from foreign c. with the consumer of the bank
countries d. None of the above d. any of the above LIBOR is not issued for .....

Ans - a Ans - a a. USD

b. GB Pound
c. INR
Coupon rate refers to ..... A Corporate Bond which carry a d. Japanese Yen
rating of D is considered to be .....
a. Bank rate Ans - c
b. PLR a. Highly safe ....
c. The annual interest rate b. High probability of default
specified on bonds c. Can't say NSE MIBOR is based on the rates
d. All the above d. None of the above polled by NSE from a representative
panel of .....
Ans - c Ans - b banks/FIs/PDs.

Section 171 of Indian Contract 1872, .... a. 30

gives to a Banker an absolute right of b. 31
general lien on all Normally the day of auction for 182- c. 50
goods and securities received by the day T-bill is ..... d. None of the above
Banker. The Bankers Lien is .....
a. Wednesday Ans - b
a. Set off b. Wednesday of reporting week ....
b. An Implied Pledge c. Wednesday of non-reporting
c. Mortgage week Bancassurance can be sold to .....
d. Hypothecation d. None of the above
a. All banks
Ans - b Ans - c b. All insurance companies
.... c. Insurance Agents
d. All existing and prospective bank
In one of the joint Savings Bank Real Time Gross Settlement (RTGS) customers
accounts, you as a Branch Manager is managed by .....
received information that one of the Ans - d
depositors had been declared as a. State Bank of India
Insolvent? The depositors other than b. Reserve Bank of India
the undischarged insolvent claim the c. Indian Banks Association (IBA) FERA came into force with effect
balance lying in the SB account. Can d. Government of India from .....
you pay?
Ans - b a. 01.01.1973
.... b. 01.01.1974
a. You can pay to the other deposit c. 01.01.1983
holders jointly Overdrafts granted against ‘no frills’ d. 01.01.1984
b. You can pay to the other deposit accounts in rural and semi-urban
holders, dividing the balance areas is classified as ..... Ans - b
proportionately ....
a. 50% Direct Advance to Agriculture
c. You can pay as per instruction Sector What are the provisions of
jointly signed by the solvent b. 100% Direct Advance to remuneration of the banking
depositors and the official receiver of Agriculture Sector ombudsman ?
the undischarged insolvent c. 100% Indirect Advance to
Agriculture Sector a. he is eligible for remuneration and
d. You can pay to the other deposit d. 100% Direct Advance to Personal other perquisites b. this will be
holders, dividing the balance Segment determined by the RBI
proportionately, after taking RO c. this has to be borne by banks
permission Ans - c proportionately
.... d. all the above
Ans - c Ans - d
What is the provisions of
remuneration of the baking
Nomination rules for deposit ombudsman ? The scope of activities undertaken by
accounts have been introduced the business correspondents will not
under the following rules of a. 60 years include .....
Banking Regulation Act, 1949: b. 62 years
c. 65 years a. disbursal of small value credit
a. Sec. 45ZA d. 68 years b. recovery of principal/collection of
b. Sec. 45ZA – F interest
c. Sec. 45ZA – B Ans - c c. collection of small value deposits
d. None of the above d. payment of money on demand
drafts not exceeding Rs. 1,000

53
 a. Rs.250 lac
Ans - d b. Modulation of analogue signals
b. Rs.300 lac into digital
c. Rs.500 lac c. Modulation of data into images
Who passed the Bill to set up the d. Rs.750 lac d. None of the above
Reserve Bank of India?
Ans - c Ans - c
a. Legislative Assembly
b. Parliament
c. Governor General In the MICR code structure which of In a ATM, the PIN .....
d. British council the following is wrong (0 represents
no. of digits)? a. Stands for postal index number
Ans - a b. Is randomly generated sequence
a. city code - 000 of girls
b. bank code – 0000 c. Stored in magnetic strip of the
c. branch code - 000 card
RBI has given freedom to Banks to d. none of these d. b and c both
..... (i) Convert their non-viable rural
branches into satellite Ans - b Ans - d

offices on certain conditions, (ii)

Provision of locker facilities at the
extension counters, (iii) Closing of
loss making branches in urban/metro
centers and loss making branches at
rural centers served by two
Commercial Bank branches
excluding RRBs, after mutual
consent
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
Mr. X who is an Ordinary SB account
holder of your branch wants to
nominate Mr. Y, an U.S. national,
who is his friend. Is that allowed?
a. Yes it is freely permitted
b. Yes it is freely permitted, but at the
time of settlement of claim and
repatriation to the nominee, branch
has to take RBI permission
c. Yes it is freely permitted, subject
to Regional office approval d. Yes it
is freely permitted, subject to CO
approval
Ans - b
Which of the following actions can be
considered an action of a partner
that would bind other partners?
a. Acknowledgement of debt already
obtained by the firm b. Opening a
bank account of the firm, in his own
name
c. Giving a mandate to allow another
person to operate the account d. To
sell the immovable property relating
to the firm
Ans - a
What is the maximum extent of
investment in plant & machinery for
MSE ancillary units?
Indian Financial System Code (IFSC) Cheque truncation can be done by
is an code based on the pattern ..... (a) using image processing (b)
followed by the Society for using MICR data (c)
Worldwide Inter-bank Financial sending by courier or speed post for
Telecommunication (SWIFT) ..... early delivery.
a. 10 digit numeric code a. a, b and c all
b. 11 digit numeric code b. a and b only
c. 10 digit alpha numeric code c. b and c only
d. 11 digit alpha numeric code d. a and c only
Ans - d Ans - b
Bank can be held liable for
conversion, in which of the following
circumstance? Spend now and pay later stands for
.....
a. Payment of a bearer cheque to a
person other than payee without a. ATM card
endorsement by the payee. b. Credit card
c. Debit card
b. Collection of a cheque belonging d. Electronic purse
to one X for another Xwho opened
the account you with proper Ans - b
introduction.
c. Collection of a cheque of large
amount for a customer having poor The decision support system makes
financial background, use of ..... (a) query language (b)
without enquiring the source of the adhoc report generator
cheque. (c) statistical analyzer (d) graphics
d. All the above
a. a to c only
Ans - c b. b and c only
c. a to d all
d. b, c and d only
The prepaid instruments can be
issued as ..... (1) smart cards or Ans - c
magnetic stripe cards, (2)
internet accounts or internet wallets, A marketing technique where
(3) mobile accounts or mobile wallets marketer plays a specific role in a
(4) paper vouchers, which can be particular segment is called .....
used to access the pre-paid amount
a. Mass Marketing
a. only 1 b. Niche marketing
b. 1 and 3 only c. Strategic Marketing
c. 1 to 3 only d. Communication Marketing
d. 1 to 4 all
Ans - b
Ans - d
The term 'hot card' refers to (a) lost
Which of the following functions is card (b) stolen card (c) misplaced
not carried by a Modem? card (d) misused card. Which
combination is correct?
a. Modulation of digital signals into
analogue a. a, b, c

54
b. a, b, d a. Designing customer specific
c. a, c, d product
d. b, c, d b. Call centres
c. Publicity
Ans - a d. Motivating the staff
Ans - a
Market Expansion doesn't mean .....
(i) hiring more staff, (ii) firing more
staff, (iii) buying more The key challenge to market‐driven
products strategy is .....
a. Only (i) and (ii) a. Selling maximum products
b. Only (i) and (iii) b. Employing maximum DSAs
c. Only (ii) and (iii)
d. (i), (ii) and (iii) c. Delivering superior value
customers
Ans - d d. Being rigid to changes
Ans - c
Effective marketing helps in ..... (i)
developing new products, (ii)
creating a competitive ...... can be done through digital
environment, (iii) building demand for Banking?
products
a. Mobile phone
a. Only (i) and (ii) b. Internet
b. Only (i) and (iii) c. Telephone
c. Only (ii) and (iii) d. All of these
d. (i), (ii) and (iii)
Ans - a
Ans - d
What is M‐marketing? Which among the following is correct
in the context of branding of
a. Mobile Marketing products?
b. Management Marketing
c. Model Marketing a. A brand can be a sign or symbol
d. Modern Marketing but not a name
Ans - a b. Value of brand is its power to
capture consumer preference and
loyalty c. Brands help in providing
Delivery Channel means ..... legal protection due to unique
features d. Strong brands enjoy high
a. maternity wards level of consumer awareness and
b. handing over the products to the loyalty
buyers
Ans - a
c. places where products are made
available to the buyers d. All of these
The unique control mechanism used
Ans - c to identify any changes occurring to
a message in transit in
Electronic Fund Transfer System is
Market Survey means ..... called as .....
a. Market Research a. Message Activation Code
b. Market Planning b. Message Approval Code
c. Marketing Strategies c. Message Authentication Code
d. Market Monitering d. Message Authorisation Code
Ans - a Ans - c
Pricing is significant for firms
Online Marketing is the function of because ..... (i) It determines
which of the following? revenues generated by the firms, (ii)
a. Purchase section It determines profits earned by the
b. Production Department firms, (iii) It affects the level of funds
c. IT Department d. Design Section available for other element of
d. A collective function of all staff marketing mix
Ans - d a. Only (i) and (ii)
Customization is useful for ..... b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
Which of the following is/are the
process of Marketing Management?
(i) Analysis, (ii) Planning, (iii) Control
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
to
The ..... shares are the shares on
which the dividend accumulates if it
remains unpaid for a
particular year
a. Convertible preference shares
b. Cumulative preference shares
c. Participatory preference shares
258
d. Preferred shares
Ans - b
What are the functions of SEBI? (i)
framing rules and regulations and a
code of conduct to regulate the
intermediaries, (ii) checking Price
Rigging, (iii) prohibiting insider
trading and fraudulent & Unfair Trade
Practices
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
Which of the following statements is
correct?
a. The delivery of documents of title
to goods (except a bill of lading) by
the owner of the goods to the lender
is not considered as a valid pledge in
English Law, however, under the
Indian Law, such delivery constitutes
a valid pledge.
b. The delivery of documents of title
to goods by the owner of the goods
to the lender is not considered as a
valid pledge in Indian Law, however,
under the English Law, such delivery
constitutes a valid pledge.
55
 a. Only (i) and (ii)
c. Both of the above are correct b. Only (i) and (iii)
d. None of the above Statement ..... machines are also in c. Only (ii) and (iii)
use in few banks which considerably d. (i), (ii) and (iii)
Ans - a enhance statement
delivery times. Ans - d
The credit facilities (both fund based
and non-fund based) are provided to a. Printing
finance ..... (i) fixed b. Folding and Franking
assets, (ii) current assets, (iii) non- c. Plotting Which of the following paves the way
business assets d. Ordering for listing and trading of the issuer
company’s securities. Whose
a. Only (i) and (ii) Ans - b securities are already not listed on
b. Only (i) and (iii) the stock exchange?
c. Only (ii) and (iii)
d. (i), (ii) and (iii) a. initial public offering
The international level ...... have b. Further public offering
Ans - a been active in the privacy area. (i) c. Bonus issue
Organization for Economic d. Rights issue
Co-operation and Development, (ii)
A modem performs the function of Ashton Tate Corporation Ltd, (iii) AT Ans - a
..... (i) Modulating binary data for &T
voice line transmission, Your branch receives a garnishee
a. Only (i) and (ii) order. It attaches all sums owning or
(ii) Demodulating the transmitted b. Only (i) and (iii) accruing due to Mr. Ashok and Mr.
data for computer processing, (iii) c. Only (ii) and (iii) Anand. There is no account at the
Multiplexing of several signals d. (i), (ii) and (iii) branch in the joint names of Mr.
Ashok and Anand. But they maintain
a. Only (i) and (ii) Ans - d their individual accounts. Under
b. Only (i) and (iii) these circumstances .....
c. Only (ii) and (iii)
d. (i), (ii) and (iii) Rule in clayton’s case is an example a. The court should be advised that
of ..... there is no account in the joint
Ans - a names of Ashok and Mr.
a. right of lien Anand. Hence, the garnishee order
b. right of set off can not be given effect to.
Communication technology ..... c. right of transfer
d. right of appropriation b. The garnishee order will attach the
a. facilitates the processing of data individual accounts of Mr.Ashok and
b. helps in transmission of data Ans - d Mr. Anand as they are jointly and
c. enables decision support system severally liable for the joint debt.
d. is a tool for data mining
Which of the following is not correct c. The matter should be referred to
Ans - b about marketing? the court for clarification
d. Since the order is not applicable,
a. Customer focused the bank need not take any action
The holder of the card can purchase thereon.
goods and avail services, upto a b. Aims at earning profits by
specified limit, from ..... (i) maximizing sales volume c. Oriented Ans - b
to the needs of the buyer d.
Shops, Department Stores, Hotels, Maximizing customer satisfaction
Restaurants, (ii) Railway Stations, Match the following:
Airlines etc, (iii) Emporiums Ans - b
i) Classification of Assets a.
a. Only (i) and (ii) Narasimham
b. Only (i) and (iii) Automated Teller machines (ATMs) ii) Allonge b. Endorsement
are innovation for the banking iii) Funds Transfer c. EFT
c. Only (ii) and (iii) industry. In terms of the service iv) Crossed cheques d. Collecting
d. (i), (ii) and (iii) industry this is an innovation in the banker
..... element of the marketing mix.
Ans - d a. i-A,ii-B,iii-C,iv-D
a. Pricing b. i-D,ii-C,iii-A,iv-B
b. Promotion c. i-A,ii-D,iii-B,iv-C
Top Executives of banks look at IT c. Distribution d. i-B,ii-A,iii-C,iv-D
as a ..... requirement and apply it for d. Product
improving Ans - a
organizational efficiency and Ans - c
effectiveness.
Once a Bearer is always a bearer is
a. Employee The benefits of test marketing is/are applicable in respect of .....
b. Functional ..... (i) More reliable forecast of future
c. Customer sales, (ii) An a. A bill of exchange payable after 90
days
opportunity to decide about b. A cheque
launching or dropping the product, c. A demand promissory note
d. Financial (iii) Determining the better d. A certificate of deposit
promotional strategies
Ans - b Ans - b

56
Blue chip securities refer to .....
a. shares of any company
b. shares of companies, which are
listed at any of the stock exchange
c. shares of good companies
d. All of the above
Ans - c
Which of the following was set up as
a exclusive data communication
network for banks in terms of
recommendations of committee on
communication network of banks?
a. BANKNET
b. SWIFT
c. MICR
d. All of the above
Ans - a
Pick the correct statement about
credit cards ..... (i) Credit cards used
in those establishments
only which have agreed to accept
them for which the card-issuing
bank/institution enters into
agreement with them, (ii) Some
banks provide the facility of cash
withdrawal through credit cards from
any of their branches and/or ATMs
subject to a certain monetary ceiling
per transaction per month, (iii) Credit
cards are allowed to be used by the
card holder only
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
Merchant bankers’ activity relate to
.....
a. Equity and equity related finance
b. Debt and Debt related finance
c. Fund Business
. Non-Fund business
Ans - a
Govt. Securities are called gilt-edge
securities because ..... (i) these
securities carry fixed
interest rate, (ii) they are easily
realizable, (iii) their prices generally
do not fluctuate adversely
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
Trust receipt refers to .....
a. receipt issued by any trust
b. donation receipt of charitable trust
c. a document containing promise
from the borrower to hold goods or
their sale proceeds as
trustee for the banker.
d. Any of the above
Ans - c
The cardinal principles of bank
lending are ..... (i) Safety, (ii)
Security, (iii) Profitability
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
In pledge, the delivery of goods may
be .....
a. Actual
b. Constructive
c. Both of these
d. Any of the above
Ans - c
Issuing banks do not accept the
requests from the purchaser for stop
payment of a demand
draft as .....
a. Draft represents a commitment of
issuing bank in favour of the payee
who can always enforce is payment
against the bank
b. If the draft has been negotiated to
a holder in due course, he has a right
to claim payment from the bank in its
capacity as a drawer so long as the
draft does not bear 'NOT
NEGOTIABLE' crossing
c. Both of the above
d. Any one of the above
Ans - c
Where the mortgagor ostensibly sells
the mortgaged property, on the
condition that in default of payment
of the mortgage money on a certain
date, the sale shall become absolute
or on the condition that on such
payment being made, the buyer shall
transfer the property to the seller, the
transaction is known as .....
a. Simple mortgage
b. Mortgage by condition sale
c. Mortgage by deposit of title deeds
d. None of these
Ans - b
Mr. X maintains a SB account with
your bank. He has given a POA to
his son, to operate his SB
account. The relationship between
the bank and Mr.X is .....
a. debtor and creditor
b. principal and agent
c. donor and donee
d. none of the above
Ans - a
Fair Practice Code for lenders is a
set of codes which banks are
required to follow while dealing with
borrowers. This code has been on
the insistence of Indian industry after
notification of which of the following?
a. SARFAESI Act 2002
b. RDDB Act 1993
c. Legal Services Authority Act 1987
d. None of the above
Ans - a
With the increased use of IT there is
an ever increased demand of the
specialized personal in the fields of
..... (i) IT Management & EDP
Auding, (ii) Telecommunications, (iii)
Data Base Management &
Programming
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
Cross selling is very effective in the
sale of one of the following ..... (i)
Debit Card, (ii) Credit
Cards, (iii) Internet Banking
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
The Basic document for sanction of
pension, issued By the competent
authority is called .....
a. Pension Payment Order (P.P.O)
b. Pension Disbursement Order
(P.D.O)
c. Letter of authority for drawing
pension
d. Pension sanction letter
Ans - a
Target market for debit card is .....
a. All existing account holder
57
b. All sales persons Digital Banking is characterised by
..... Ans - d
c. All NRI‘s
d. All HNI‘s a. Visiting branch office for doing
transactions and using digital
Ans - a devices available at branches c. Use As per fair Practice Code for lenders,
of computers and core banking if a bank receives request from
solutions by the banks for effective borrower for transfer of his
Bank Marketing is treated as ..... customer services loan account to another bank, the
bank is to convey its consent
a. Transaction marketing b. Alternative electronic channels objection within ..... from date
b. Service marketing which can be used by customers at of receipt of request
c. Indoor marketing their convenience to carry out
d. all of these banking operations a. 30 days
b. 21 days
Ans - b d. Use of Electronic ledgers and c. 15 days
digital tools for book maintenance d. 10 days
and transactions by the banks
Ans - b
Which of the following is NOT a part Ans - b
of 'Product Life Cycle'?
Which of the following is not a
a. Introduction A firm has been allowed demand correct statement in the context of
b. Growth loan but it has not carried any registration of a partnership firm?
c. Saturation operations in the account after
d. Inflation disbursement of the full amount. a. Provisions for registration of a firm
What is the limitation period for this are u/s 58 of Indian Partnership Act
Ans - d demand loan? b. Registration of a firm is optional
and not compulsory
a. 3 years from date of last
Telemarketing is a form of ..... withdrawal in the account c. If a firm is not registered, neither it
can file suit in its own name, nor
a. Indirect Marketing b. 3 years from date of last debit of anyone else can file suit on this firm
b. Field Marketing interest in the account c. 3 years
c. Virtual Marketing from date of documents d. A to c, d. If a firm is registered, it can file suit
d. Direct Marketing whichever is earlier in its own name and suit can be filed
on the firm by others, whether
Ans - d Ans - c registers or unregistered

Ans - c
The aim of successful marketing is Which of the following guarantees, is A mutual fund has, apart from its
...... (i) to increase the sale, (ii) a financial guarantee? (i) Bank sponsors ..... (i) Trustees, (ii) Asset
to increase the profit, (iii) to guarantee for supply of goods on Management Company,
increase the output of sellers credit basis, (ii) Bank guarantee in (iii) Custodian
a. Only (i) and (ii) favour of customs authorities, (iii)
b. Only (i) and (iii) Bank guarantee in favour of tax a. Only (i) and (ii)
c. Only (ii) and (iii) authorities b. Only (i) and (iii)
d. (i), (ii) and (iii) c. Only (ii) and (iii)
Ans - d a. Only (i) and (ii) d. (i), (ii) and (iii)

E‐Marketing is the same as ..... b. Only (i) and (iii) Ans - d

(i) virtual marketing, (ii) digital c. Only (ii) and (iii)
marketing, (iii) real time d. (i), (ii) and (iii)
marketing Which of the following is correct in
a. Only (i) and (ii) Ans - d the context of holding of share
b. Only (i) and (iii) capital in an RRB?
c. Only (ii) and (iii)
d. (i), (ii) and (iii) A bank has revaluation reserves of a. Central Govt. 50%, State
Rs.300 cr what amount can be Govt.35%, Sponsoring Bank 15% b.
Ans - d included in the Tier 1 capital? Central Govt. 35%, State Govt.15%,
Sponsoring Bank 50% c. Central
a. Rs. 300 cr Govt. 50%, State Govt.15%,
In a MICR cheque, which of the b. Rs. 165 cr Sponsoring Bank 35% d. Central
following code does not match the c. Rs. 135 cr Govt. 35%, State Govt.50%,
'description ..... Sponsoring Bank 15%
d. Rs. 30 cr
a. first 6-digit code - cheque number Ans - c
b. central 09-digit code — city, bank Ans - c
and branch code
Subordinated debt can be included in The contract notes that ate issued by
c. last 2-digit code — transaction Tier-2 capital fund, only where it is Foreign Institutional Investors (FIIs)
code such as saving or current with an original to their clients
account d. none of the above maturity of ..... (notregistered with SEBI), investing
in Indian stock market .....
Ans - d a. Max 10 years
b. Min 10 years a. Depository receipt
c. Max 5 years b. Derivative
d. Min 5 years c. Option

58
d. Participatory notes
Ans - d
Lahiri Committee Recommendation
relate to which of the following .....
a. Issue of units by Mutual Funds
b. Issue of Depository Receipts
c. Issue of Participation Certificates
by Banks
d. Issue of Participatory notes by FIIs
Ans - d
Inspection and processing fee in
case of priority sector can be
recovered if the amount of
advance is .....
a. Rs.10000 or more
b. Rs.25000 or more
c. Rs.50000 or more
d. More than Rs.25000
Ans - d
Depository receipts are traded at .....
a. Stock exchanges of the same
country in which the listed company
issued the depository receipt
b. Stock exchanges of a country
other than in which the listed
company issued the depository
receipt
c. Stock exchanges of any country
including in which the listed company
issued the depository receipt
d. None of the above
Ans - b
Which of the following expansion
does match to the abbreviation?
a. SSC - Special Credit Control
b. Ads - Authorised dealers
c. OMO - Opposite market Operation
d. All the above
Ans - b
The cheque truncation can be done
..... (a) by using MICR data (b) by
sending chequesx courier
(c) using imaging technology
a. Only c
b. Only a
c. Only a and c
to c all
Ans - c
X is maintaining a SB account with
Popular Bank and wrongly credited
an amount of Rs.12500 to his
account. This was entered in his
pass book also. Later on when the
mistake came to bank’s notice it
debited customer’s account but did
not inform the customer. Meanwhile
the customer issued a cheque on the
basis of this balance which was
dishonoured by the bank.
a. Customer can ask for damages for
return of his cheque although
amount was recoverable from him,
had the cheque been paid
b. Customer cannot ask for damages
as bank has only rectified the
mistake.
c. It was customer’s duty to check
the pass book for bringing the error
to bank’s notice. Hence
customer cannot claim any damages
d. None of the above
Ans - a
Unique Transaction Reference
(UTR) is ..... code
a. 21 digit numeric code
b. 22 digit numeric code
c. 21 digit alpha numeric code
d. 22 digit alpha numeric code
Ans - d
Under CTS 2010 Standards of RBI,
the cheques used In should be
Issued with the account
number field pre-printed .....
a. all accounts
b. current account and corporate
customers
c. current and saving bank accounts
d. large size amount cheques
Ans - b
Compared to a manual system, the
consequences of an error in a
computerized system are more
serious due to ..... (a) errors being
generated at high speed will involve
higher cost to
correct them (b) computer system
processes more data (c) users of
computer systems perceive the
computer output to be always correct
a. a to c all
b. Only b and c
c. Only a and b
d. Only a
Ans - a
Which of the following is not correct
in respect of targets within priority
sector?
a. Weaker section target for Indian
banks is 25% of priority sector b.
Micro enterprises credit target is
7.5% of ANBC c. Export credit is
12% of ANBC for Indian banks
d. Agriculture credit target is 45% of
priority sector credit for Indian banks
Ans - c
What is true with regard the liability
of a director of a company , in case
of dishonor of cheque, issued by a
company?
a. All the directors are liable
b. Nominated directors also liable
c. Directors responsible for conduct
of the business of the company
including managing director d. Only
those directors who are responsible
for accounts maintenance of the
company
Ans - c
A customer of your branch Sham,
deposits a cheque, which he steals
from another person named Sham.
Your branch collects this cheque (on
which the customer is having a
defective title) without being aware
about the defect?
a. Collecting bank is negligent
b. Collecting bank will get protection
if it has complied the requirement u/s
131.
c. Collecting bank is responsible for
conversion
d. Collecting bank is negligent but
will get protection
Ans - b
A payee’s account crossed cheque
in favor of X is presented by bank B
to the drawee Bank-A for payment.
In which of the following forms, the
payment can be made?
a. In clearing only,
b. In clearing or though transfer only
c. In clearing, through transfer or
cash
d. It cannot be paid as this will violate
the direction of the drawer
Ans - c
When a cheque is issued on a
particular date and a date prior to the
date of writing of the
cheque is put, it is called .....
a. Stale cheque
b. Post dated cheque
c. Ante- dated cheque
d. Invalid cheque
Ans - c
In a joint deposit account, which of
the following is correct?
59

a. When nomination is proposed to
be made, it should be by all of them
b. When account is to be closed it
should be done by all even if the
account is either or survivor, where
specific authority to do so has not
been obtained in the account
opening form
c. Garnishee order will be applicable
on this account on pro-rata basis if
the orders received in the name of
one of the account holders
d. Bank cannot use the right of set
off a loan in the name of one of them
Ans - c
Lien is the right to ..... of the until
repayment of the loan as per
provisions of Sec ..... of Indian
Contract Act
b. If not mentioned , in the Articles, it
is equal to paid up capital + reserves a. A debit card
of the company
b. A post-paid card
c. Where board of directors does not c. A credit card
have adequate powers, it has to d. All the above
approach the
shareholders u/s 293 (d) (i) Ans - b
d. None of the above
Ans - d The term White Label ATM relates to
which of the following .....
Which of the following statements a. ATMs installed by banks outside
can be considered to be true? their branches
b. ATMs installed by banks in white
a. Memorandum of Association of a buildings
company is called document of c. ATMs installed by non bank
Indoor management as it contains entities
internal rules of the company d. ATMs jointly installed by banks
b. Trustee can rise loan for the trust and non-bank entities
at their discretion
c. Objects of a company are stated in Ans - c
Articles of Association

a. Retain the possession, goods, d. A person appointed by a court to An electronic purse may have .....
securities & bank deposits, Sec 170 manage the property of a deceased number of storage space
b. Retain the possession, goods and person is called ‘administrator’
securities, Sec 170 c. Sell, goods a. one
and securities, Sec 171 Ans - d b. two
c. six
d. Retain the possession, goods & d. several
immovable properties , Sec 170 Which is not correct with regard to
rate of interest in NRI opened Ans - d
Ans - b accounts?

If the holder of a cheque removes
the crossing in such a way so that
the same is not easily detectable
(with naked eye) and get the
payment after presenting it at
counter of the drawee bank will get
protection u/s ..... of NI Act
a. 89
b. 118
c. 131
d. 87
Ans - a
A bank has to give loan to a
company for which the company has
given certified copy of Articles of
Association. Bank has doubt that the
Articles of Association stands
amended and the company has not
given the amended copy. What
source can be used by the bank to
have copy of the amended
documents?
a. Other bank of the company
b. SEBI
c. Registrar of Companies
d. Any of the above
Ans - c
a. NRE FDR account- as per ceiling
rate fixed by RBI and linked to Bank
Rate b. FCNR account- as per
ceiling rate fixed by RBI and linked to
LIBOR
c. NRE-Saving account- bank
discretion but not more than
domestic rates d. NRO account-
bank discretion but not more than
domestic rates
Ans - a
What is the amount of bank draft that
can be issued by banks in cash
under KYC directives of RBI?
a. Rs.50000 or less
b. Rs.50000 or more
c. Less than Rs.50000
d. More than Rs.50000
Ans - c
Who approves the appointment of
the Chief Executive officer (CEO) of
a private bank?
a. Reserve Bank
b. Board of the Bank concerned bank
c. If it is a listed bank, then SEBI
d. Central Govt. in all cases
The term ‘audit trail’ stands for .....
a. report submitted by the concerned
auditors
b. data and record generated by the
system administrator c. chronological
record of all events occurring in a
system d. all or any of the above
Ans - c
Which of the following organizations
maintain the shares of companies in
dematerialization format?
a. SEBI
b. Depositories
c. Registrars to the issue
d. Mutual funds
Ans - b
Which of the following Act, is meant
to regulate the Indian Banking
System?
a. Negotiable Instrument Act,
Banking Regulation Act, Companies
Act b. RBI Act, Banking Regulation
Act, Companies Act

Ans - a c. Banking Regulation Act,

Borrowing powers of the Board of
Directors of a company (which is not
true)?
a. Are mentioned in the Articles of
Association
Prevention of Money laundering Act
d. RBI Act, Banking Regulation Act
Amount is immediately recovered
from the card holder online for the Ans - d
amount of card used, in
case of .....

60
Deposits and advances of a bank
branch have declined and the
management of the bank wants
to know the reasons for the same.
This will fall under the purview of .....
a. Market intelligence
b. Marketing technology system
c. Taking the required steps for
effective marketing of their products
d. Marketing research system
Ans - d
Popular Bank sanctioned a loan in
the name of B, which he had not
been repaying. The bank has come
to know that B is having an FDR
account with national Bank in the
same city. At the time of maturity of
the term deposit, letter is received by
national Bank from Popular Bank to
remit money to credit in the loan
account .....
a. The amount would be remitted by
the National Bank to Popular Bank
b. If indemnity bond id executed by
Popular Bank, the amount can be
remitted
c. If consent is given by the depositor
and his nominee, the amount can be
remitted d. The amount cannot be
remitted, as right of set-off is not
available to Popular Bank
Ans - d
A loan secured by mortgage of
immovable property is repayable on
demand. The period of
limitation in this case will be .....
a. Three years
b. 12 years from date of mortgage
deed
c. 3 years from date of mortgage
deed
d. None of the above
Ans - b
Mr. Akash Khanna is having his
personal saving account with United
Bank’s Chandigarh branch. He is
also the sole trustee of Khanna
Charitable Trust and operates the
account of the trust which of also
maintained with the bank. In
connection with an important
personal work he proposes to
proceed abroad for 6 months and
seeks your guidance for smooth
operations in the accounts .....
could leave some cheque leaves
property signed for use in case of
trust account d. b and c
Ans - d
Banks do not issue demand drafts
payable to bearer on demand
despite the fact that NI Act
section 5, permits issue of a bill of
exchange payable to bearer or order
.....
a. Because of prevalent practices
b. Because of RBI directives
c. Because of provisions of Section
31 Banking regulation Act d. None of
the above
Ans - d
If holder of a cheque wants to file
complaint in a court u/s 138 NI Act
and other related
provisions of NI Act, he can do so
.....
a. Within one month from date of
cause of a action
b. Within one month from date of
returning of the cheque by the
collecting bank
c. Within one month of date of
receipt of the information about
dishonor by the holder d. Within one
month of date of dishonor of the
cheque
Ans - a
Which of the following is not a
feature of a saving bank account?
a. Interest is prescribed by RBI
b. Interest is paid on the maximum
balance between 7 and last day c.
No. of withdrawals is generally
restricted
d. Account cannot be opened by
organization whose purpose is profit
Ans - b
Mr. P, a student is working on part-
time basis for a Charitable trust. The
trust makes payment for the part-
time work and also makes payment
of some stipend to help him to
complete his studies. The payments
are made to him by way of two
separate cheques.
c. On the both the cheques he is
holder in due course d. On the both
the cheques he is holder
Ans - a
In respect of deceased person, the
bank stops payment on receipt of
notice about death. The balance is
payable to ..... (a) survivor if it is joint
E/S or F/S account (b) survivor and
legal heirs
of deceased person if it is a jointly
operated account (c) to executor if it
is a non-testate account(d) to
nominee if it is a nomination account
of single individual.
a. a to d all correct
b. a, b and c correct
c. a, b and d correct
d. b to d all correct
Ans - c
A customer of the bank has written a
will and he has died. The execution
of this Will will be
carried by .....
a. Administrator
b. Assignee
c. Liquidator
d. None of the above
Ans - d
The primary dealers deal mainly with
which of the following?
a. Shares and debentures
b. Govt. securities
c. Mutual fund units
d. All the above
Ans - b
Which of the following is part of the
money market?
a. bonds issued by the govt.
b. bonds issued by public sector
undertakings
c. term money
d. debentures
Ans - c
Monetary control is exercised by RBI
in India through:
a. payment system
b. issue of currency

a. He can execute a power of
attorney in favour of a known person
for operations in both the accounts
b. He can give mandate or power of
attorney for his personal account
c. He cannot delegate the powers to
any one in case of trust account and
a. On the cheque for work payment
he is holder in due course and for the
cheque for stipend he is holder.
b. On the cheque for work payment
he is holder and for the cheque for
stipend he is holder in due course.
c. cash reserves and liquid reserve
ratios
d. repo rate and reserve repo rate
Ans - c

61
Supervision over the depositories Which of the following is not covered a. 1
and stock exchanges is the role of: under selective credit control, at b. 7
present: c. 14
a. RBI d. 30
b. IRDA a. sugar
c. SEBI b. buffer stocks of sugar Ans - a
d. PFRDA c. unreleased stocks of sugar
with sugar mills representing free ....
Ans - c levy sugar
d. none of above Which of the following are the norms
of awarding compensation by the
Which of the following does not Ans -a banking ombudsman ?
match?
a. banking ombudsman does not
a. regulator of insurance market - Against which type of following have unlimited powers to allow
IRDA security, the banks can sanction compensation.
b. regulator of capital market -SEBI loans: b. the maximum limit of
c. regulator of money market -RBI compensation is Rs. 10 lac
d. regulator of forex market -SEBI a. commercial paper c. no compensation will be awarded
b. certificate of deposit in excess of that which is necessary.
Ans - d d. all the above
c. FDR issued by other bank
d. none of above Ans - d

Ans - d
Which of the following function is not
carried by IRDA in India?
The rate at which RBI purchases or Transferee will not get a better title
a. regulator of insurance companies rediscounts bill of exchange or other than that of the transferor in .....
b. regulator of insurance products eligible commercial instrument from crossing. (i) Payees
c. regulation over the funds banks is called: account only, (ii) Not Negotiable
managing pension
d. supervision of the general a. repo rate a. Only (i)
insurance market b. reverse repo rate b. Only (ii)
c. MSF rate c. Either (i) or (ii)
Ans - c d. bank rate d. Both (i) and (ii)

Ans - d Ans – b
Which of the following have been
created to provide long term funds
for industry or agriculture? Which of the following is no more Non resident external account,
used by RBI as a tool for regulation? FCNR account and RFC account can
a. mutual funds be opened by means of foreign
a. credit rationing or credit allocation inward remittances only and which
b. financial institutions b. credit authorization scheme amongst the following is not foreign
c. asset management companies c. inventory and receivables norms inward remittances?
d. non-bank finance companies d. all the above
a. Foreign demand draft
Ans - b Ans - d b. Foreign currency traveler cheques
c. Foreign currency notes
d. Demand draft
Which of the following function is not
carried out by RBI? Co-operative Banks can lend to the Ans - d
extent of ..... % on any day in the
a. bank of govt. call/notice money market.
b. raising deposits from public Regional Rural Banks were
c. lender of last resort to banks a. 1 established in our country on .....
d. management of Govt Debt b. 2
c. 3 a. 02.10.1975
Ans -b d. No limit b. 02.10.1985
c. 02.10.1976
Ans - d
Which of the following is an .... d. 02.10.1974
important reason for regulation of
banking system? An award of banking ombudsman is; Ans - a

a. to promote confidence of public in a. a judicial decision.

banking system b. to protect interest
of the investors
c. to ensure that the financial
markets are efficient and transparent
d. all the above
b. an arbitrarily order
c. an order on the bank
d. an appeal to the bank
Ans - a
At the time of remitting cash into
deposit accounts and overdraft
accounts, the customers are in a
position to furnish the permanent
account number for remittance
amount exceeding Rupees:

Ans - d a. 10000
The minimum tenor of issue of ICDs b. 50000
can be ..... days. c. 100000

62
d. 200000
Ans - b
Mr. X maintains two accounts with
you, one his individual saving bank
account and another a current as a
trustee of a charitable trust. He has
to go abroad and gives power of
attorney in favour of his wife.
a bank can allow operations in
saving bank account only
b bank can allow operations in
savings account but for trust account
refer to trust deed if it can be
acceptable
c bank will not allow operations in
trust account in any circumstances d
bank will allow operations in Trust
account and not in the SB account
Ans - b
The negotiable financial instrument
which is traded on a stock exchange
of another country but represents
security issued by foreign listed
company is called:
a. buyers credit
b. depository receipt
c. cross listed stock
d. participatory note
Ans – b
Market research is useful for ..... (i)
Deciding proper marketing
strategies, (ii) Deciding the
selling price, (iii) Choosing the right
products
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
The motive that drive a consumer
towards selection of particular outlet,
retailers or supply of service is
known as
a. Public relation
b. Futile exercise
c. Patronage motives
d. Prestige
Ans - c
What are the features of selective
credit control? (i) They effect only the
lenders but not the borrowers, (ii)
They distinguish between essential
and non-essential uses of Bank
credit, (iii) Only non-essential uses
are brought under the scope of
Credit Bank controls
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - c
A sequence of bits which is created
by running an electronic message
through a oneway hash
function (a program) is called .....
a. pass word
b. electronic signature
c. encrypted signature
d. decrypted signature
Ans - b
If the documents submitted by the
beneficiary of an LC are not as per
terms of LC, as per
UCPDC, these .....
a. cannot be accepted by the
negotiating bank
b. can be accepted by negotiating
bank subject to consent of the
opening bank c. can be accepted by
the negotiating bank
d. can be accepted by the
negotiating bank for confirmation of
the applicant
Ans - a
What do you mean by “Two parallel
transverse lines on the face of the
cheque”?
a. Open cheque
b. Bearer cheque
c. Order cheque
d. Crossed cheque
Ans - d
In periods of boom, which leads to
economic instability Reserve Bank
does not resort to ..... (i)
Selling of first class securities in its
precession in the market, to reduce
the supply of money as a measure of
open market operations, (ii) Bying of
approved securities in the market as
a measure of open market
operations, (iii) Increasing the bank
rate as a measure of open market
operations
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
Which of the following has the
authority to suspend trading of the
securities of a particular company at
a stock exchange?
a. SEBI
b. Central Govt.
c. RBI
d. All the above
Ans - a
Karta in a HUF does not have which
of the following authority?
a. To manage the business or
property
b. To raise loan to run the family
business and create charge on HUF
assets to a secure such loan
c. To appoint agent that may be one
of the coparceners or even outside d.
None of the above
Ans - d
Which among the following
statements is true in connection with
customer account?
a. On receipt of information of
customer’s death verbally, the bank
cannot stop payment in the account
b. When an account is to be closed
by the bank, it is not under obligation
to tell the reasons to the customer
c. When a customer wants to close
his account with the bank, he is not
under obligation to disclose the
reasons to the bank
d. Pass-book is the copy of the bank
records, available with the customer
Ans - c
Mr. K had deposited a sum of Rs.2
lac in his saving bank account. A
letter is received from the local
Police that Mr. K has been arrested
for committing a fraud. A cheque of
Rs.15000 has been received through
clearing account for payment, after
receipt of notice from the police.
a. Cheque will be paid
b. Cheque will be paid after having
permission from the Police
c. Cheque will be paid after getting
permission from the customer and
the police d. Cheque will not be paid
Ans - a
A bank authorized by the issuing
company to issue GDR against issue
of foreign currency
convertible bonds or ordinary shares
for the issuing company, is called .....
a. Custodian bank
b. Depository
c. Overseas depository bank
d. Mandated bank
63

Ans - c
Charge card and Credit card is
differentiated by .....
a. Repayment mode as Credit card
usage value can be paid in full or in
part where as in charge card it is full
b. There is no difference
c. Only difference is Credit card is
having more security feature than
Charge card d. Charge cards are
debit cards with an option for over-
drawings
Ans - a
Which of the following is a
characteristic of EMV transaction? (i)
Card to be inserted and remain in the
terminal for the duration of
transaction, (ii) Card generates
unique cryptogram, (iii) Information is
exchanged between the card and the
terminal at the end of, the transaction
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
Which of the following payment
system location does not match?
a. Clearing House Inter-bank
Payment System (CHIPS)-Us
b. Clearing House Automated
Payment System (CHAPS)-
Singapore
c. Clearing House Automated
transfer System (CHATS)-Hong
Kong
d. INFINET- India
Ans - b
The cards which store credential
data in an integrated circuit is .....
a. Chip/ smart card
c. Non EIVIV card
b. Magnetic strip card
d. All the above
Ans - a
Hot listing of Credit card means .....
a. enhancement of amount of limit in
the card
b. blocking the operations of the card
c. reducing the amount of limit in the
card
d. listing the card on more than one
network
Ans - b
b. Transaction are made on-line
Under mobile payments, maximum as well as off-line
amount which can be allowed by a c. Branch automation module is
bank is restricted to … incorporated
d. Branch is connected to a
a. Rs.10000 central host
b. Rs.25000
c. Rs.50000 Ans - b
d. at discretion of the bank
Cardholder's data can be well
Ans - d protected through ..... (i) Firewall
Configuration, (ii) Effective
Encryption, (iii) Digital Encryption
Credit received by the RIGS member a. Only (i) and (ii)
has to be credited the account of the b. Only (i) and (iii)
beneficiary on the c. Only (ii) and (iii)
basis of the account number in the d. (i), (ii) and (iii)
payment message within ..... of
receipt of the message at Ans - d
the Member Interface
a. 15 minutes An account in the name of minor M is
b. 30 minutes opened by his father as ‘M u/g of F’.
c. 45 minutes Which of the following statements in
d. 60 minutes this regard is not correct?
Ans - b a. During minority account will be
operated by guardian
Devices are connected to a single
continuous cable, on a computer net b. On attaining majority, the account
work, in case of ..... will be operated jointly by the
guardian and the account holder,
a. Star topology, bus topology and who has become major
ring topology
b. Star topology c. If death of guardian during minority
c. bus topology takes place, next guardian will
d. ring topology operate the account d. Guardian can
make nomination in this account
Ans - c
Ans - b
Which of the following is not an
important features of local area A bank offers a facility to its credit
network? card holders to use the unveiled
balance in the credit card line as a
a. an independent system is called personal loan at a lower rate of
node which is interconnected to LAN interest, where the customer feel that
b. there is generally one central node bank is offering something extra.
called ‘server’ This strategy of the bank is called .....
c. the way, the different types of a. Going rate pricing
services are handled by server
depends upon topology and b. Marginal cost pricing
protocols c. Value pricing
d. it can be used within limited wide d. Mark up pricing
area of say 10 Kms
Ans - c
Ans - d
A eCommerce transaction refers tpo
The process that replaces the exchange of information by way of
physical flow of cheques with ..... For selling and
electronic information or scanned buying between the customer and
image ..... the seller
a. electronic clearing system a. Credit cards
b. real time gross settlement b. Debit cards
c. cheque truncation c. Paperless instructions
d. electronic funds transfer d. All the above
Ans - c Ans - c
Which of the following is not a Computeration in banks can bring
feature of a core banking system? improvement in the area of ..... (a)
customer service (b)
a. Transaction are made on a central
server
64
house-keeping (c) decision making accomplish strategic marketing
(d) productivity. Which of these is objective is called ..... c. CAMEL
corr4ect: d. CMA
a. Marketing strategy
a. a, b and c only b. Marketing Control Ans - b
b. b, c and d only c. Marketing analysis
c. a, c and d only d. Marketing implementation
d. a to d all The public debts offices function
Ans - d under the control of ..... (i) Reserve
Ans - d Bank of India, (ii) Public
In market skimming pricing strategy Debt Ministry
.....
The Sequence of a sales process is a. Only (i)
..... a. Initially price is lower than it is b. Only (ii)
reduced c. Either (i) or (ii)
a. Lead generation, call, presentation b. Initially price is higher than it is d. Both (i) and (ii)
& sale reduced
b. Sales, presentation, lead c. Initial price is high and is Ans - a
generation, call maintained high
c. Lead generation, call, sale & d. All of these
presen tation Which was the following commission
d. There is no sequence required Ans - b recommended for establishment of
Reserve Bank of India?
Ans - a
Value‐added services means ..... a. Central Banking Commission
b. Hilton young commission
Out the following ..... is not the three a. costlier products c. Presidency Banking Commission
level of the product b. large number of products d. None of the above

a. Core c. additional services Ans – b

b. Symbolic d. at par services
c. Augmented The term SWIFT do not stand for
d. fragmented Ans - c which of the following? (i) Society for
world-over international financial
Ans - d transfers, (ii) Society for world-wide
Aggressive Marketing is necessitated interbank financial
due to ..... telecommunication, (iii) Society for
Of the following pricing methods ..... world-wide interbank financial
is not for new product a. globalization transfers
b. increased competition
a. Market skimming c. increased production a. Only (i) and (ii)
b. Penetration d. increased job opportunities b. Only (i) and (iii)
c. Discriminatory pricing c. Only (ii) and (iii)
d. None of these Ans - b d. (i), (ii) and (iii)

Ans - a Ans - b

Efficient Marketing styles require .....

Bank of Mathura is offering higher (i) proper planning, (ii) good Travellers cheques are required to
interest‐ratio on fixed deposit to communication skills, (iii) be dated at the time of ..... (i) Issue,
senior citizens of 60 years team work (ii) Encashment
and above. It is practicing .....
a. Only (i) and (ii) a. Only (i)
a. Promotional pricing b. Only (i) and (iii) b. Only (ii)
b. Psychological pricing c. Only (ii) and (iii) c. Either (i) or (ii)
c. Segmental pricing d. (i), (ii) and (iii) d. Both (i) and (ii)
d. Product mix pricing
Ans - d Ans - a
Ans - c In terms of section 19 of the RBI Act,
1934, the RBI has prohibited from
..... RBI introduced CP in .....
With ..... pricing, the products are
priced below list price (or even cost) a. Making loans or advances a. 1970
for a temporary period b. 1980
to create buying urgency b. Drawing or accepting bills payable c. 1990
otherwise than on demand c. d. 2000
a. Reference Allowing interest on deposits or
b. By‐product current accounts d. None of the Ans - c
c. Promotional above ....
d. Market penetration
Ans - c Power of Attorney can be ..... (i)
Ans - c Universal, (ii) Limited
Introduction of rating methodology
for banks was introduced by RBI on a. Only (i)
The process that turns marketing the lines of ..... b. Only (ii)
strategies and plans in to marketing c. Either (i) or (ii)
action in order to a. IRAC d. Neither (i) nor (ii)
b. ALM

65
Ans – c company c. Selling by a bank the c. Assets that have not been
insurance policies of any insurance commented upon by the auditors d.
company d. All the above All the above
The merger of two business units,
that manufacture different products Ans - d Ans - b
of like nature, is called
as .....
Which of the following does not
a. Horizontal merger A bank wishes to undertake pertain to non performance assets?
b. Vertical merger insurance business. Whose
c. Lateral merger permission is necessary before a. Sub standard assets
d. Diagonal merger commencement of insurance b. Doubtful assets
business? c. Loss assets
Ans - a d. Standard assets
a. Life Insurance Corporation of India
b. General Insurance Corporation of Ans - d
What do you mean by golden India
parachute? Which of the following cannot be
c. Insurance regulatory and included in the definition of a
a. Attractive benefits that are given to development authority d. Reserve financial intermediary?
top executives of targets company at Bank of India
the time of acquisition a. banks and non-bank finance
Ans - c companies
b. Attractive benefits that are given to b. financial institutions
clerical staff and subordinate staff of c. mutual funds
target company at the time of Selling of banking products by an d. companies engaged in
acquisition insurance company is called as ..... manufacturing of good

c. Attractive benefits that are given to a. Assurfinance Ans - d

top executives of acquirer company b. Bankassurance
at the time of acquisition c. Innovative banking
d. All the above Which of the following cannot be
d. Attractive benefits that are given to included in the money market?
clerical staff and subordinate staff of Ans - a
acquirer company at the time of a. call or notice money
acquisition b. corporate securities
What is a contract of insurance?
Ans - a c. certificate of deposit
a. It is a contract of guarantee d. treasury bills

Which of the following committees b. It is a contract of pledge Ans - b

was set up during the year, 1993
with a view to recommend insurance
sector reforms?
a. M.N. Goiporia committee
b. L.C. Gupta committee
c. R.N. Malhotra committee
d. Narasimhan committee
Ans - c
c. It is a contract of hypothecation
d. It is a contract of indemnity
Ans - d
Which of the following is not an
essential condition for an urban
cooperative bank to undertake
bankassurance business?
...... directors or trustees of a MF
should be independent. (i) 1/2 (ii) 2/3
(iii) 66%
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)

a. The bank should obtain prior Ans - c

What do you mean by permission from Insurance
bankassurance? Regulatory and Development
Authority
a. Selling insurance policies by the Many computers connected to single
banks b. The bank should have a net worth computer falls in the category of .....
b. Insurance of the properties of not less than Rs. 50 crore c. The
belonging to the banks bankassurance business can be a. Internet
through their branches b. LAN
c. Branch Automation
c. Insurance of the properties by the d. The bank will have to enter into an d. All of the above
banks agreement with the insurance
d. Life insurance business agency concerned Ans - b
undertaken by the banks
Ans - a WAN (Wide Area Network) means
Ans - a ..... (i) It is a set up which is spread
across geographical
Which among the following is called
Which of the following is included in as non performing assets? locations rather then a small complex
bancassurance? or building, (ii) It connects various
a. Assets that can exchange income branches/offices of the bank situated
a. Insurance policies issued by the b. Assets that eases to earn interest at different places/cities, (iii) The
banks in their names income computer terminals are connected to
main computer called server.
b. Selling by a bank the insurance
policies of its ancillary insurance a. Only (i) and (ii)

66
b. Only (i) and (iii) a. Only (i) and (ii)
c. Only (ii) and (iii) b. Only (i) and (iii)
d. (i), (ii) and (iii) c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
Ans - c
ATM card is a plastic card which
embedded with mini chip. The Depositories hold securities in .....
following details of account form. (i) Demat, (ii) Physical
holder are available in ATM card ..... a. Only (i)
(i) Name of account holder, (ii) b. Only (ii)
Account number, (iii) c. Either (i) or (ii)
Validity of card d. Both (i) and (ii)
a. Only (i) and (ii) Ans - a
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii) In new product development
process, after analysis of business
Ans - d next step to be taken is not .....
(i) test marketing, (ii) one channel
marketing, (iii) penetration marketing
The small companies/organisations
that have been created exclusively to a. Only (i) and (ii)
deal in govt. securities are called .... b. Only (i) and (iii)
(i) Mutual funds, (ii) NBFCs c. Only (ii) and (iii)
d. (i), (ii) and (iii)
a. Only (i)
b. Only (ii) Ans – c
c. Either (i) or (ii)
d. Neither (i) nor (ii)
Example of semi-duplex mode of
Ans - d communication is .....
a. Radio broadcast
Evaluation of profitability of each b. walkie talkie
segment is not called as ..... (i) c. Four-wire modems
Targeting, (ii) Market d. All of the above
segmentation, (iii) Positioning
Ans - b
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii) A & B are maintaining an ‘E or S’
d. (i), (ii) and (iii) account. D has been named as
nominee. Balance in the
Ans - c account will be payable to ..... on the
death of A
Procedure of arranging a product to a. Jointly to B and Nominee D
occupy distinct place in target b. Jointly to B and legal heirs of A
customers mind is called ..... c. B alone
d. D alone
a. Market segmentation
b. Targeting Ans - c
c. Differentiation
d. Positioning Which of the following committees
were set up by Government of India
Ans - d with a view to attract domestic and
foreign investments in the country?
In PLC stages, stage in which a. Investment commission
company's investment costs mount b. Foreign Investment commission
is classified as ..... c. Inland and Foreign investment
commission
a. testing stage d. National savings commission
b. development stage
c. buying stage Ans - a
d. merger stage
Ans - b External commercial borrowings is a
part of .....
Urban Cooperative Banks are a. Balance of payment
controlled by ..... (i) NABARD, (ii)
State Governments, (iii) RBI b. Balance of trade
c. Current account
d. Capital account
Ans - d
External commercial borrowings are
governed under .....
a. Foreign Exchange Regulation act
b. Securitisation and Reconstruction
of Financial assets and enforcement
of security interest act c. Debt
Recovery Tribunal act
d. Foreign exchange management
act
Ans - d
Foreign trade policy is framed and
implemented by .....
a. Chief controller of Import and
Exports
b. Director General of Foreign Trade
c. Governor of Reserve Bank of India
d. Chairman of Finance commission
Ans – b
Under which ministry Director
General of Foreign Trade functions?
a. Commerce ministry
b. Finance ministry
c. Foreign ministry
d. Home ministry
Ans - a
An offshore banking unit (OBU) is a
unit .....
a. That is located in a foreign country
b. That is located in special
economic zone and deals in foreign
currency
c. That is engaged in business of
lending foreign currency and
establishing joint ventures d. All the
above
Ans - a
When it comes to scheduled
commercial banks, which out of the
following is not true?
a. Nationalised banks
b. Regional Rural banks
c. Foreign banks
d. Local area banks
Ans - d
When it comes to nationalization of
fourteen banks on 19.07.1969, which
among the following is not true?
a. Punjab National Bank
b. Central Bank of India
c. Canara Bank
d. Andhra Bank
Ans - d
67

A loan or advance payable on
demand against the security of
immovable property by way of
mortgage, the limitation period is .....
a. twelve years from the date of
mortgage deed
b. three years from the date of
mortgage deed
c. five years from the date of
mortgage deed
d. None of the above
Ans - a
Pledge does not mean ..... (i)
advance against goods, (ii)
hypothecation of goods, (iii) bailment
of goods as security for payment of a
debt or performance of a promise
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - a
Which of the following are disclosed
in the red-herring prospectus? (i) the
price of the share, (ii) the no. of
shares, (iii) the lower and upper price
band
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - c
A and his wife B have a locker in
joint names and A is residing abroad.
B informs about loss of key of the
locker and asks for breaking open
the locker. Which is not the correct
option? (i) Bank will not accept the
request, (ii) Bank can accept on
basis of indemnity, (iii) Bank can
accept the request accompanied by
power of attorney in her favour from
A Data Communication helps in
a. Only (i) and (ii)
b. Only (i) and (iii)
Ans - a
Additional interest subvention is
available under National Rural
Livelihood Mission (NRLM) for
prompt repayment of the loan by the
women self-help group at ..... %,
which brings the
effective rate of interest to ..... %
a. 2%, 5%
b. 2%, 4%
c. 3%, 4%
d. 3%, 5%
Ans - c
In case of recovery after receipt of
claim from CGT-MSE, the recovered
amount is to be used for
......
a. repayment of balance amount of
bank loan
b. meeting the recovery expenses
and then sharing on a prorate basis
c. on a prorata basis i.e. 75:25
d. as per agreement between the
bank and CGT-MSE
Ans - b
Which of the following own 10 per
cent equity stake in the capital of
CIBIL? (i) HDFC, (ii) SBI, (iii) ICICI
Bank
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
The period of transaction that is
covered by a deferred payment
guarantee is generally
between .....
a. 1 year to 5 years
b. 3 years to 7 years
c. 6 months to 3 years
d. 6 months to 7 years
Ans - b
The application software is
software that is .....
a. developed by the user for specific
functions
b. developed by the manufacturer for
manufacturing purpose c. supplied
by the computer manufacture d.
used by the computer manufacture
Ans - a
Under RB1 NEFT system, what is
the maximum limit of individual
transaction presently?
a Rs. 2 lac
b. Rs. 10 lac
c. Rs. 20 lac
d. no ceiling
Ans - d
Security features available with
smart cards are ..... (i) multiple pins,
(ii) retinal pattern
verification, (iii) dynamic signature
verification
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
A Forward Rate Agreement is .....
(i) a financial contract between two
parties, (ii) to exchange
interest payments for a 'notional
principal' amount on settlement date,
(iii) for a specified period from start
date to maturity date
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
VSAT network is a ..... network for
banks and financial institutions.
a. Open User Group
b. Closed User Group
c. Distributed User Group
d. Computer User group
Ans - b
The advantages of the processor
smart cards are ..... (i) security, (ii)
reliability, (iii) longer life
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
the
Which of the following is the gateway
in India for EDI services worldwide?
a. Satyam online
b. BSNL
c. MTNL
d. VSNL
Ans - d
drastically cutting ..... involved in
transferring data from one
point to another.
a. number of employees
b. number of managers
c. number of clerks
d. cost of time
Ans - d
Full form of FDMA is .....
a. Frequency Division Multiple
Access
b. Financial Data Multiple Access
c. Financial Data Multiple Act
d. Fund Division Multiple Access
68
Ans - a
Ans - d Ans - a

Data mining techniques can be Which of the following is true in

applied in ..... (i) Predicting future respect of opening of account in the Customer value hierarchy has .....
trends based on information name of Pardanashin woman? levels.
available, (ii) Credit risk analysis, (iii)
Analysing demographic information a. Can be opened for literate and a. 4
about customers illiterate Pardanashin woman b. 5
c. 6
a. Only (i) and (ii) b. Can’t be opened for either literate d. 7
b. Only (i) and (iii) or illiterate Pardanashin woman c.
c. Only (ii) and (iii) Can be opened for literate Ans - b
d. (i), (ii) and (iii) Pardanashin woman only d. Can be
opened illiterate Pardanashin woman
Ans - d only The Capital Adequacy Ratio is :

Ans - c a) 6%
The GIRO system is related to which b) 8%
of the following? c) 9%
The seven P's of service marketing d) 10%
a. data transmission in the context of banking services
b. information highway represent ..... Ans - c
c. money transfer system
d. internet highway a. Production, procurement, price,
promotion, place, process and
Ans - c people b. Product, price, promotion, Which Consultancy Company is
place, process, physical evidence working on Restructuring the
Interest is calculated on actual/365 and people c. Purchase, Financial and other Operations of
days basis in respect of the following presentation, price, promotion, NABARD?
products, except one : people, payment and persistent d.
None of these a. McKinsey
a. Call Money b. Standard & Poors
b. Notice Money Ans - b c. Ernst & Young
c. Term Money d. Boston Consultancy Company
d. GOI dated securities
Cross-selling is a basic function of Ans - d
Ans – d ..... ....

a. All employers The term 'hot listed card' refers to .....

A Co-Operative Bank operating in b. All employees (i) lost card, (ii) stolen card (iii)
different States are regulated by: c. All salespersons misplaced card
d. Planning Department
a. State Co-Operative Societies a. Only (i) and (ii)
Act Ans – c
b. Banking Regulation Act b. Only (i) and (iii)
c. Only (ii) and (iii)
c. Multi Unit Co-Operative Funds and securities pay-in and pay- d. (i), (ii) and (iii)
Societies Act out are carried out on
d. Banking Laws (applicable to Ans - d
Co-Operative Societies) a. On trading day
b. T+1 day
Ans - c c. T+2 day Which of the following Act give/s
d. T+3 day legal recognition to a digital
signature? (i) Information
Introducing RTGS and NEFT in Ans - c Technology Act, (ii) Indian Evidence
remittance product category are Act
example for ..... The businesses became ..... driven
due to increased competition. (i) a. Only (i)
a. Line extension Customer, (ii) Market (iii) b. Only (ii)
b. Brand extension Money c. Either (i) or (ii)
c. Multi brands d. Both (i) and (ii)
d. New brands a. Only (i) and (ii)
b. Only (i) and (iii) Ans – a
Ans - c c. Only (ii) and (iii) ....
d. (i), (ii) and (iii)
Lien is not a/an ..... of the creditor to
Ans - a retain possession. (i) right, (ii)
According to Companies Act, obligation, (iii) instrument
maximum duration of financial year is
..... Idea Screening is the first stage of a. Only (i) and (ii)
..... b. Only (i) and (iii)
a. 12 months c. Only (ii) and (iii)
a. New product development d. (i), (ii) and (iii)
b. 12 months which can be extended
upto 15 months c. 18 months b. Diversification Ans - c
d. 15 months which can be extended c. Product modification
upto 18 months d. None of the above

69
The term VSAT stands for ..... (i) a. Only (i) and (ii) b. can be claimed by the Official
Variable small aperture terminal, (ii) b. Only (i) and (iii) Receiver for the general benefits of
Very small aperture c. Only (ii) and (iii) the creditors c. cannot be claimed by
terminal d. (i), (ii) and (iii) the Official Receiver
d. None of the above
a. Only (i) Ans - B
b. Only (ii) Ans - c
c. Either (i) or (ii)
d. Both (i) and (ii) Which of the following incident can
be treated as part of the cyber crime In case of perfectly elastic, demand
Ans - b activity? (i) Misusing a credit card, (ii) curve is .....
Transmitting unlawful data from one
part of the globe to another (iii) Using a. Vertical
The frauds and other kind of crimes the network for drug trafficking b. Horizontal
that happen on the internet network c. Downward sloping
are called ..... (i) a. Only (i) and (ii) d. None of these
Internet crimes, (ii) Cyber crimes b. Only (i) and (iii)
c. Only (ii) and (iii) Ans - b
a. Only (i) d. (i), (ii) and (iii)
b. Only (ii)
c. Either (i) or (ii) Ans - a ...... is the straight reduction in price
d. Both (i) and (ii) on purchase during a stated period
Impact of IT on banks can be ..... of time.
Ans - b
a. change in organisational structure a. Discount
b. change in organisational b. Allowance
The firewall technology is not used in orientation c. Sale
connection with ..... (i) Physical c. change in service delivery channel d. All of the above
safety, (ii) authorised d. All of the above
access, (iii) Protection of computer Ans – a
network from intrusion by hackers Ans - d

a. Only (i) and (ii) A measure of sensitivity of demand

b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - a
If a complainant does not get
satisfactory response from the bank
within ___ days from the date of his
lodging the complaint, he will have
the option to approach the Office of
the concerned Banking Ombudsman
for redressal of his grievance.
a. 15 Days
b. 30 Days
c. 45 Days
d. 60 Days
Ans - b
....
Use of computer can be traced
through a process which is called as
..... (i) Computer audit, (ii)
Audit trail
a. Only (i)
b. Only (ii)
c. Either (i) or (ii)
d. Both (i) and (ii)
Ans - b
The payment system in which there
is a single debit and multiple credit
..... (i) Electronic
clearing service, (ii) SWIFT (iii)
Payroll Processing
The fear psychosis rings the air with to change in price is known as .....
the spread of IT and the impact is felt
cutting across all a. Inelastic
levels of management of functional
areas. These fears may be described b. Price elasticity
as ..... (i) Job Content- c. Break-even price
losing of one's skills and expertise, d. Cost-plus price
(ii) Job Security, (iii) Authority
Dilution Ans - b
a. Only (i) and (ii)
b. Only (i) and (iii) A cheque is received for payment
c. Only (ii) and (iii) with amount mentioned only in
d. (i), (ii) and (iii) words. The banker would .....
Ans - d a. as per NI Act,honour the cheque
for the amount in words
b. dishonour the cheque because no
Non-fund based credit facilities amount is mentioned in figures
include ..... (i) Letter of credit, (ii) c. to safe guard the bank’s interest
Letter of guarantee, (iii) return the cheque with reason:words
Acceptance of bills on behalf of and figure differs
customer
a. Only (i) and (ii) d. none of the above
b. Only (i) and (iii)
c. Only (ii) and (iii) Ans - c
d. (i), (ii) and (iii)
The Consumer Credit Bureau covers
Ans - d credit availed by .....
a. individuals
When specific goods are charged to b. proprietary concerns
the banker by a firm by means of a c. private and public limited
letter of Hypothecation but are in companies
actual or constructive possession of d. banks
the borrower then in the event of the
insolvency of the borrower the goods Ans - a
.....
a. can be claimed by the Official An account holder draws a cheque
Receive on a .....
a. Banker of the Payee

70
b. Banker of the Drawee c. Either (i) or (ii) through reliable source that Principal
c. Banker of the Drawer d. Both (i) and (ii) has died. Which of the following
d. Banker of the Endorsee action you will take?
Ans - a
Ans - c a. Return the cheque
b. Pay the cheque
As per Sec. 372 A of Companies Act, c. None of these
Match the following: 1956 a Limited Company can make
a loan to any other Ans - a
i) IRDA a. Insurance body corporate and give a guarantee ....
upto .....
ii) Garnishee Order b. Judgement Can nomination be made by an
debtor a. 60% of its paid-up share capital illiterate depositor?
iii) ATMs c. Assignment and free reserves b. 100% of its free
iv) Book debt d. E- Banking reserves c. Higher of a and b a. Yes, by affixing his Thumb
d. Lower of a and b Impression on form DA1 without
a. i-D,ii-C,iii-A,iv-B witness b. Yes, by affixing his Thumb
b. i-A,ii-B,iii-D iv-C Ans - c Impression on form DA1 with one
.... witness c. Yes, by affixing his Thumb
c. i-B,ii-A,iii-D,iv-C d)i-D,ii-C,iii- Impression on form DA1 with two
B,iv-A According to Companies Act, witnesses d. No, such nomination
maximum duration of financial year? may be under influence may not hold
Ans - b legal validity
a. 12 months
Ans - b
Adding new product lines, Lengthen b. 12 months which can be extended ....
existing product lines, Add more upto 15 months c. 18 months
versions of each product, pursue d. 15 months which can be extended Nomination is not allowed in which of
more product line consistency comes upto 18 months the following cases?
under which type of product mix
decision. Ans – d a. Individual Resident A/c
.... b. NRIs A/c
a. Product mix dimensions c. Sole Proprietorship A/c
b. Increasing business Which of the following is not the d. Accounts held in Representative
c. Trends pricing strategy? Capacity
d. All of the above
a. Geographical pricing Ans - d
Ans - b b. Psychological pricing ....
c. Product mix pricing
d. None of these Facility of Nomination has been
In case of perfect substitutes, the introduced in Banks on
elasticity of demand is ..... Ans - d recommendations of which
committee?
a. Zero
RBI notifies CRR under _________ a. Talwar Committee
b. Infinite Act b. Ghosh Committee
c. Greater than one
d. Less than one a. Section 24 of the Banking c. Jilani Committee
Regulation Act d. Sawaikar Committee
Ans - b b. Section 42 of the Banking
Regulation Act Ans - a
c. Section 24 of the RBI Act ....
The demand for necessaries is ..... d. Section 42 of the RBI Act
The Indian Banking System is
a. Elastic Ans - d regulated in terms of the provisions
b. Inelastic .... of ..... (i) Reserve Bank of
c. Unitary elastic India Act, 1934, (ii) Banking
d. Perfectly elastic Which of the following is not true in Regulation Act, 1949.
respect of Minor? a. Only (i)
Ans - b b. Only (ii)
a. A minor cannot be sued for c. Either (i) or (ii)
recovery of any monies lent except d. Both (i) and (ii)
Minimum number of directors in case for meeting the necessaries of Ans - d
of Private & Public Ltd Co. his/her life
respectively? Pledged goods in the possession
b. A minor can draw, endorse and with the bank can be sold by the
a. 2, 7 negotiate a cheque binding all other bank ...... (i) with court
b. 1, 5 parties except himself c. If a minor intervention (ii) after notice to
c. 2, 3 misrepresents his age, he is liable for borrower for recovery of its dues.
d. No such stipulation his contracts d. A minor cannot ratify
the contracts on his attaining majority a. Only (i)
Ans - c b. Only (ii)
.... Ans - c c. Either (i) or (ii)
Garnishee Order is issued by the ..... .... d. Both (i) and (ii)
(i) Court, (ii) IT Dept
A cheque drawn by a Power of Ans – b
a. Only (i) Attorney holder is presented for
b. Only (ii) payment. You come to known

71
Registered office of M/s XYZ Ltd Co. b. Pay the cheque as insolvency of a. Debtor/Creditor
is at New Delhi. This company wants agent does not terminate the agency b. Creditor/Debtor
to enter into an MOU with French c. Pay the cheque after obtaining c. Bailor/Bailee
Company having its registered office Principal’s confirmation d. Bailee/Bailor
at Paris. Managing Director of M/s
XYZ Co Ltd will be visiting Paris next d. None of these Ans - a
month in this respect. What will you
suggest him regarding Common Ans - b
Seal? .... The right of set-off is......

a. To carry original common seal to
Paris
b. To carry facsimile of the Common
Seal to Paris
c. Either a or b
d. No Common seal can be taken to
a foreign country
Ans - a
....
What is the amount of subsidy
admissible to Self Help Group under
SGSY scheme? (i) 50% of the
project cost, (ii) Maximum Rs 10000
per beneficiary (iii) Maximum of Rs
2,00,000 for Self Help Group.
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - a
Which of the following is not true in a. Customer’s Right
respect of Administrators? b. Customer’s Obligation
c. Banker’s Right
a. Appointed by a testator through a d. Banker’s Discretion
will
Ans - d
b. Appointed by Court in absence of
a will to act through Letter of RBI acts as bankers to State Govt.
Administration c. Performs the duty on ..... basis. (i) Mandatory, (ii)
of realizing and distributing the Agreement
assets of a deceased
a. Only (i)
d. On death of one of the b. Only (ii)
Administrators his powers are vested c. Either (i) or (ii)
in surviving executors d. Neither (i) nor (ii)
Ans - a Ans - b
....
In terms of Section 293 (1) d. of the The clearing house facilities for
Companies Act, 1956, can Board of payment and delivery of securities is
Directors of a Public Limited provided by:
Company borrow in excess of the
aggregate of the paid-up capital and a. SEBI
its free reserves? b. Stock Exchange

Which of the following is true in
respect of opening of account in the
name of Pardanashin woman?
a. Can be opened for literate and
illiterate Pardanashin woman
b. Can’t be opened for either literate
or illiterate Pardanashin woman c.
Can be opened for literate
Pardanashin woman only d. Can be
opened illiterate Pardanashin woman
only
Ans - c
....
a. Yes, after passing a resolution at a c. Clearing Corporation of India
duly convened meeting of the Board d. All the above
b. Yes, after obtaining consent of the
shareholders in its General Meeting Ans -b
c. No, it is prohibited under Section
293 of Companies Act
The Central Board of RBI comprises,
d. Yes, Borrowing upto 200% of Paid a Governor, 4 deputy governors and
Up capital & free reserves is ----- directors:
permitted under Sec 293
a.5
Ans - b b.7
.... c.10
d.15
The Master Earth Station of NICNET
is installed in ..... Ans - d

Limitation period for filling of the a. Mumbai

review application against the award b. New Delhi
given by the Banking c. Hyderabad RBI acts as bankers to Central govt.
Ombudsman is ....... d. Chennai on ----- basis and state governments
on -----basis:
a. 30 Days Ans - b
a. by agreement, by agreement
b. 45 days b. mandatory, on agreement
c. 60 Days Banknet link ..... cities c. by agreement, mandatory
d. 90 Days d. mandatory, mandatory
a. 5
Ans - b b. 6 Ans - b

c. 7 Normally what type of movement is

A cheque drawn by a Power of
Attorney holder is presented for
payment. You come to known
through reliable source that PA
holder has been declared insolvent.
Which of the following action you will
take?
a. Return the cheque as agency is
terminated
d. 8 seen in interest rate with change in
Ans - c
A bank customer ABC, enjoys a CC
limit of Rs.300000. The CC account
shows a credit balance of Rs.25000.
The relationship between the bank
and the customer is.
bank rate by RBI:
a. if bank rate is reduced, interest
rate of Banks increase b. if bank rate
is increased, interest rate of Banks
decrease c. if bank rate is reduced,
interest rate of Banks decrease

72
d. if bank rate is reduced or c. Accidental Errors
increased, there is no change in the d. Espionage Agents Ans - d
interest rate of Banks
Ans - c A partnership firm is dissolved
Ans - c compulsorily in which of the following
Which is not a function of a bank? circumstances?

The small companies/organisations a. Remittances a. When all the partners are declared
that have been created exclusively to b. Discounting of bills insolvent
deal in govt. securities are called .... c. Conducting foreign b. When the business of the firm
(i) Mutual funds, (ii) NBFCs exchange/Govt transactions becomes unlawful
d. None of these
a. Only (i) c. When a competent court passes
Ans - d an order for the dissolution of the
b. Only (ii) firm d. All these cases
c. Either (i) or (ii)
d. Neither (i) nor (ii) In Garnishee Order, the personal Ans - d
account of a partner ..... for the debts
Ans - d of the firm.
Min Share capital required in case of
a. can be attached Private & Public Ltd Co.
Minimum amount of a CP should be b. can't be attached respectively?
..... lakh/s.
c. can be attached if ordered so by a. Rs 1 lakh, Rs 7 lakhs
a. 1 the court b. Rs 5 lakhs, Rs 50 lakhs
b. 2 d. None of these c. Rs 5 lakhs, Rs 7 lakhs
c. 3 d. Rs 1 lakh, Rs 5 lakhs
d. 5 Ans - a
Ans – d
Ans - d
.... Mandate is a ..... agreement Minimum and maximum number of
share holders in a Private Limited
Banking ombudsman is …… a. stamped Co?
b. unstamped
a. legal machinery established by c. memorandum a. 2, 50
subordinate legislation to provide an d. letter b. 5, 50
additional but optional legal remedy c. 2, 20
b. a judicial machinery Ans - b d. 5, 20
c. NGO
d. an administrative machinery The benefits of test marketing are Ans - a
.....
Ans – a
a. An opportunity to decide about Vehicle loans available to transport
The minimum tenor of issue of CDs launching or dropping the product b. operators are made available with
can be ..... days. Determining the suitable consumers modifications to retail
c. More reliable forecast of future and agri-customers are example for
a. 7 sales .....
Ans - a
.... d. Determining the better promotional a. Line extension
strategies
An award by banking ombudsman b. Brand extension
will contain; Ans - b c. Multi brands
d. New brands
a. specific performance of Mode of communication capable of
operations. only transmitting data but not Ans - b
b. loss / cost to be borne by the receiving is .....
bank.
a. Simplex Which of the following is not the
c. reasons for making the award. b. Semi duplex or half duplex characteristics of the services?
d. all the above. c. Duplex
d. None of the above a. Intangibility
Ans - d b. Perishability
Ans – a c. Seperability
d. Heterogeniety
Internet is .....
Mr. Jugraj Lal comes to open a Ans - c
a. Network of LAN saving bank account with your
b. Network of ATMs branch. He also has a cheque of
c. Network of ALPMs Rs.500, which he would deposit in A Power of Attorney PA executed
d. Network of Networks the account when account is opened. abroad, should be stamped within
Which among the following can be how many months of its receipt in
Ans - d accepted as first deposit in the India?
account?
A passive threat to computer security a. One Month
is ..... a. cash only b. Two Months
b. cheque c. Three Months
a. Malicious Intent c. DD/BC d. Six Months
b. Sabotage d. any of the above

73
Ans – c b. B or S d. GOI
c. Any one or Survivor
Which can be taken as Identity Proff d. Both without survivorship Ans - c
under KYC? ....
Ans - d
a. Ration Card Government Securities are issued at
b. PAN Card .... par value of Rs. .....
c. Telephone Bill
d. Electricity Bill To authenticate a Digital signature, a. 10
which of the following keys are used: b. 50
Ans - b (i) Private key, (ii) Public key, (iii)
Master key c. 100
d. 1000
Which of the following is true when a. Only (i) and (ii)
Death/ insolvency/ Retirement or b. Only (i) and (iii) Ans - c
Expulsion of any partner takes place c. Only (ii) and (iii) ....
in a Partnership firm? d. (i), (ii) and (iii)
Government Securities pa interest at
a. Firm is compulsorily dissolved Ans - a coupon rate on a ..... basis.

b. Firm is reconstituted Minimum and maximum number of a. Daily

share holders in a public limited b. Monthly
c. Continuation of the Firm depends company? c. Half Yearly
upon the provisions made in the d. Yearly
Partnership Deed d. Both b or c a. 2, 50
b. 10, 50 Ans - c
Ans – d c. 7, no limit
d. 7, 50 ....

Banker customer relationship comes Ans - c Can nomination be made in a singly

to an end on... .... operated SB Account of a Minor
above age of 10 years?
a. Death of customer Which of the following are the norms
b. Insolvency of customer of awarding compensation by the a. No, Contract with a Minor is void
c. Insanity of customer banking ombudsman ? ab initio
d. All the above b. Yes, DA1 form to be signed by the
a. banking ombudsman does not Minor himself
Ans - d have unlimited powers to allow
compensation. c. Yes, DA1 form to be signed by the
b. the maximum limit of person who is lawfully entitled to act
Which of the following is not the level compensation is Rs. 10 lac on behalf of the minor
of the product? d. Either b or c
c. no compensation will be awarded
a. Potential product in excess of that which is necessary. Ans - c
b. Augmented product d. all the above ....
c. Product line In case of non-compliance of the
d. Expected product Ans - d award by the bank the baking
ombudsman will report to;
Ans - c
Which of the following is the a. reserve bank of India.
Nomination is defined under which biological aspect of a computer? (i) b. supreme court
Act? Finger, (ii) Hand, (iii) Retina c. finance ministry
d. consumer protection forum
a. Sec 24 of BR act a. Only (i) and (ii)
b. Sec 42 of RBI act b. Only (i) and (iii) Ans - a
c. Sec 45 Z of BR act c. Only (ii) and (iii)
d. None of these d. (i), (ii) and (iii)
What is the maximum limit of
Ans - c Ans – b compensation the baking
.... ombudsman may a award?
....
What are the disadvantages of not a. Rs. 1 lac
registering a partnership firm? The first committee that gave its b. Rs. 5 lac
recommendations relating to
a. Creditors of firm cannot sue an mechanization of banking system: c. Rs. 10 lac
unregistered firm d. Rs. No such limit
a. Rangarajan Committee
b. An unregistered firm cannot sue b. Saraf Committee Ans - c
its debtors & partners c. Both a & b c. Shere Committee
d. None of these d. Narasimham Committee
A & B are maintaining an ‘E or S’
Ans - b Ans - a account. D has been named as
.... nominee. Balance in the account will
CBLO is operated by ..... be payable to ________ on the
In which of the following locker death of A.
accounts nomination is allowed? a. RBI
b. NABARD a. Jointly to B and Nominee D
a. E or S c. CCIL b. Jointly to B and legal heirs of A

74
c. B alone
d. D alone
Ans – c
....
Can nomination be made in favour of
a Minor?
a. No, Minor cannot give a valid
discharge to bank on death of the
depositor b. Yes, freely permitted
c. Yes, however, an appointee is
required to be named for Minor c.
Either b or c
Ans - c
Mr. X is maintaining few accounts
with Popular bank with its Trichur
branch. The bank branch receives an
attachment order. Which of the
following accounts, will be attached
by the order?
a. Overdraft limit of Rs.0.30 lac, in
which there is nominal debit balance
b. Overdraft limit against shares of a
company, where there is some
unavailed balance available c.
Amount of term deposit of Rs.1 lac
minus the balance including interest
in the overdraft li limit of Rs.0.50 lac
against this Term Deposit
d. Overdraft limit of Rs.0.40 lac
against Gold ornaments
Ans - c
A is holder of a cheque who
endorses sans recourse to B and B
to c and C to D who endorses it
to E. cheque is dishonoured .....
a. E can claim from B,C and D
b. E cannot claim from any one
c. E can claim from all
d. E can claim from A
Ans - a
When the seller of machinery or
other capital equipment is agreeable
to extend long term
credit to the buyer of the machinery,
on the gurantee of a bank, such
gurantee is called .....
a. Specific guarantee
b. Deferred payment guarantee
c. Particular guarantee
d. Performance guarantee
Ans - b
A partnership firm of XY&Z has been
adjudged insolvent and its loan
account is showing a debit balance
of Rs.3 lac. Its partner Y is having a
saving bank account in which there
is balance of Rs.1.50 lac?
a. The balance in partner’s account If done through ..... the rural
cannot be utilised for payment of marketing would be more effective
dues of an insolvent firm
b. The balance in partner’s personal a. fairs
account cannot be utilised as that b. village fairs
balance belongs to official assignee c. door to door campaign
d. All of these
c. The balance in partner’s account
can be utilised by exercising the right Ans - b
of set off sue to his joint and several
liability
d. The balance can be utilised before A good definition of ..... would be that
it is objected to by the partner it consists of direct connections with
carefully targeted
Ans - c
individual consumers to both obtain
an immediate response and cultivate
In which of the following lasting customer relationships
circumstance, the banker customer
relationship does not come to an a. advertising
end? b. direct marketing
c. sales promotion
a. Death of the customer d. public relations
b. Insolvency of the customer
Ans - b
c. Insanity of the customer
d. Receipt of garnishee order which
has been satisfied by payment Customization means .....
Ans - d a. acquiring more customers
b. regulating customers
Who controls appointments, c. special products to suit each
reappointments, termination of customer
Chairmen and CEOs of private d. more products per customer
banks?
Ans - c
a. Finance Minister
b. RBI
c. Governor of RBI directly Modern style of marketing include
d. Ministry of Finance ..... (i) digital marketing, (ii)
tele‐marketing, (iii) e‐commerce
Ans - d
a. Only (i) and (ii)
b. Only (i) and (iii)
Innovation means ..... (i) Product c. Only (ii) and (iii)
Designing, (ii) New ideas, (iii) d. (i), (ii) and (iii)
Impulse
Ans - d
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii) Social marketing is .....
Ans - a a. share market prices
b. marketing by the entire society
Where a minor is admitted for c. internet marketing
benefit, in an existing firm (a) he has d. marketing for the social cause
the authority to become partner on
attaining majority (b) he has the right Ans - d
not to become partner on attaining
majority
The target group of the SME loans is
(c) if he remains silent regarding .....
whether to be partner of not to be, he
is deemed to have not become a. All businessmen
partner (d) if he chooses to be a b. All professionals
partner his liability begins from date c. All SSIs
of his becoming full-fledged partners d. All of the above
a. a, c and d are correct Ans - c
b. a, b and d are correct
c. Only a and b are correct
d. Only a and c are correct The system of marketing information
is ..... that pertains to marketing
Ans - c
75
a. The structure of people, The main function of an Asset
equipment and procedures for Ans - b Management Company is to .....
generation and processing of
Information a. hold the securities of various
b. The software used for collection of A cheque drawn by a customer is schemes
information presented for payment after a
Garnishee order has been b. manage the funds by making
c. The computer hardware which is served on the account, the cheque investments in various types of
used for handling database d. The will be returned with the reason ..... securities c. hold its property for the
set of inputs to collate the benefit of the unit holders d. all the
information a. Account garnished above
b. Account attached by the court
Ans - a c. Operations on the account Ans - b
stopped by the court
d. Garnishee order received
Planned-cost service means ..... Whenever RBI wants to reduce the
Ans - d liquidity in the banking system it can
a. Costly products resort to which of the following?
b. Extra profit on the same cost
c. Extra work by seller In case of dishonor of cheques, if the a. Repo
d. All of these action is initiated against the drawer b. Reverse repo
u/s 138 NI Act, the service of c. Reduction in the CRR
Ans - b summons can be by way of (a) d. Reduction in the SLR
normal postal procedure (b) courier
approved by the court (c) speed post Ans - b
Single credit and multiple debits, is (d) e-Mail.
the process, in respect of which of
the following? a. a and b only The Banking Codes and Standards
b. b and c only Board of India was constituted on the
a. RTGS c. a, b and c only recommendations of a
b. NEFT d. a to d all Committee under Chairmanship of
c. ECS-Debit Sh. .....
d. ECS-Credit Ans - c
a. SS Tarapore
Ans - c Which among the following b. Talwar
relationship of bank and customer is c. Goiporia
not properly matched? d. Narasimham
Federal reserve Board is the
regulator of banking system in ..... a. Lockers - lesser & lessee Ans - a
b. Standing Instruction - agent &
a. India principal
b. Europe c. Assignment – Assignor and A holder of a cheque can recover the
c. United States assignee amount from the drawer u/s 138 of
d. Britain d. Loan account - creditor and debtor NI Act where ..... (a)

Ans - c Ans - c the cheque is issued for discharge of

The net asset value of a mutual fund
investment is calculated as under .....
a. (market value of the securities /
no. of units on a particular day) – the
scheme expenses
b. Market value of the securities less
the scheme expenses / no. of units
on a particular day c. Market value of
the securities / no. of units on a
particular day
d. Market value of the securities plus
the scheme expenses / no. of units
on a particular day
Ans - b
To install White Label ATMs, the
Non-bank entities must have net
worth of at least Rs. .....
crore as per the last audited balance
sheet
liability (b) the cheque is dishonoured
for insufficiency of funds (c) the
A bank has possession of certain cheque is presented within its validity
securities of the customer. Which of period irrespective of maximum
the following relationships in the period. Which of these conditions is
context is not correct? correct?
a. To secure a loan- creditor and a. A, b and c all
debtor
b. A and b
b. To collect interest on securities- c. B and c
agent and principal c. Left by d. A and c
mistake- bailee and bailer
d. Given for safe custody – bailee Ans - b
and bailor
Ans - c The issue of new securities to
existing share holders at a ratio to
those already held is known as
What is the time period during which ......
the record of transactions is to be
kept by banks under KYC directives? a. Rights Issue/Rights Shares
b. Bonus Issue
a. 15 years c. Preference Issue
b. 12 years d. None
c. 5 years
d. 10 years Ans - a

a. Rs. 50 cr Ans - c
b. Rs. 100 cr Where a bank is prohibited to accept
c. Rs. 300 cr the deposit despite prohibition for not
d. Rs. 500 cr

76
accepting the depositing the
deposits, what is the punishment?
a. Fine to extent of 20% of the
amount of deposit, so accepted b.
Fine to extent of 50% of the amount
of deposit, so accepted c. Fine to
extent of 100% of the amount of
deposit, so accepted d. Fine to
extent of 200% of the amount of
deposit, so accepted
Ans - d
SEBI in respect of certain matters,
has the same powers .....
a. as are vested in a civil court under
the Code of Civil Procedure, 1908 (5
of 1908), while trying a suit
b. as are vested in a criminal court
under the Criminal Procedure Code
while trying a suit
c. as the Company Law Board
d. none
Ans - a
Bank-B is maintaining account of a
sports club which is operated by its
Secretary and President jointly. Bank
receives a notice (on Feb 10, 2018)
of death of the President on Jan
31,2018. Two cheques of Rs.5000
each dated Jan 12, 2018 and dated
Feb 02, 2018 are presented for
payment on Feb 24,2018. The bank
shall .....
a. Pass both the cheques as these
are signed by them in the capacity of
an agent b. Return both the cheques
as the death of one of the drawers
has taken place c. Pass the 1st
cheque and return the 2nd cheque d.
Pass the 2nd cheque and return the
1st cheque
Ans - c
Access to the account by a customer
in case of ATM is through PIN, which
stands for .....
a. Personal interaction number
b. Private identification number
c. Personal identification number
d. Personal information number
Ans - c
An MSE unit with projected turnover
of Rs.30 lac approaches your branch
for sanction of working capital limits.
What will be the minimum amount o
working capital & margin to be
assessed for this firm?
a. Rs.6 lac, 0.5 lac
b. Rs.1.50 lac, 6 lac
c. Rs.15 lac, 2.0 lac
d. Rs.7.50 lac, 1.50 lac
Ans - d
A charitable trust has a current b. If one of the partners has given
account with your bank and now it instructions to stop payment while
wants to raise a loan for others agree for operations
furtherance of its activities. The loan
can be allowed ..... c. If one of the partners has died and
the remaining partners want the
a. If the trustee decide and pass a operations for winding up the
resolution to that effect business
b. If the current account operating d. if no. of partners has reached 21
trustee make a request and offer his due to two minors having decided to
guarantee also c. If the Trust Deed become partners after attaining
provides for that the loan d. The loan majority
will not be allowed to a trust
Ans - c
Section 19 (2) of Indian Partnership
Ans - c Act deals with which of the following
aspects?
A micro enterprises having sales of
Rs.36 lac and Rs.50 lac for the last a. Relationship of partners
two years respectively has projected b. Liability of partners
sales of Rs.60 lac and wants to have
a bank limit enhanced from existing c. Restrictions on use of implied
Rs.8 lac to Rs.11 lac. What amount authority by partners d. Registration
of limit it can be sanctioned and what of a partnership firm
is the margin requirement?
Ans - c
a. Limit Rs.10 lac, margin Rs.2.50
lac
b. Limit Rs.12 lac, margin Rs.3.00 Which of the following is the
lac regulator and supervisor of
c. Limit Rs.12 lac, margin Rs.5.00 lac depositories?
Ans - b a. IRDA
b. RBI
c. SEBI
A document is executed outside d. PPFDA
India and it requires payment of
stamp duty in India. The duty Ans - c
can be paid on these documents
within .....
Home loans can be best canvassed
a. Before it is used in India among .....
b. Immediately when the document
enters India a. Builders
b. Flat owners
c. Within 4 months from date of its c. Land developers
execution abroad d. Within 3 months d. Individual wanting to buy a flat
of its entry into India or house
Ans - d Ans - d
A manufacturer of a consumer
product keeps the price of a new
Popular bank offers various services product at a substantially high
such as (a) saving bank accounts (b) and over a time period to reduce it
recurring depositaccount (c) credit when the demand reduces. Such
card (d) demand draft. Which of pricing is called .....
these services to one product line?
a. Geographical pricing
a. a and b only b. Promotional pricing
b. a to c only c. Market skimming pricing
c. b to d only d. Psychological pricing
d. a, b and d only
Ans - c
Ans - d
Service marketing is the same as .....
In which of the following a. internet marketing
circumstances operation in a current b. telemarketing
account in the name a firm can be c. internal marketing
allowed? d. relationship marketing
a. If one of the partners has become Ans - d
insolvent
Expand SWOT
77
a. Strengths, Width, Opportunities, The loan values (amount of loan)
Threats b. Being aware of competitors sales under retail lending normally range
b. Security, Weaknesses, activities between .....
Opportunities, Threats. c. Avoiding repeat sales
d. Keeping customer satisfied a. Rs. 20,000 to Rs. 100 lakh
c. Strengths, Weaknesses, b. Rs. 100 lakh to Rs. 10 crore
Opportunities, Threats Ans - d c. More than Rs. 10 crore
d. Society, Weaknesses, d. None
Opportunities, Travel
Forfaiting provides to the exporter Ans - a
Ans - c against receivables .....

a. 100 per cent financing Participatory notes are like contract

Forfaiting provides finance against b. 80 per cent financing notes issued by .....
the export receivables to an exporter c. depending on the contract with the
..... (i) with recourse forfaiter a. Foreign Institutional Investors
to the exporter, (ii) without recourse d. none (FIIs) to entities that want to invest in
to the exporter the Indian stock market but do not
Ans - a want to register themselves with the
a. Only (i) SEBI b. Commercial banks to their
b. Only (ii) investors
c. Either (i) or (ii) Security receipt is issued by the .....
d. Both (i) and (ii) to a qualified institutional buyer in c. Government of India to banks
pursuance to a d. None
Ans - b securitization program:
Ans - a
a. Central Govt.
Forfaiter is ..... b. Securitization Companies
c. Rated companies The ownership, management and
a. an intermediary between an d. All the above trading functions of a stock exchange
exporter and importer are clearly segregated
b. an exporter Ans - b in respect of .....
c. an importer
d. a bank a. Demutualised exchange
b. Corporatised exchange
Ans - a In a gilt fund, the mutual funds make c. Any stock exchange
investment in ..... d. None
An attachment order of Rs.40000 on
a partnership firm is received; whose a. Govt. securities Ans - a
current account shows a balance of b. Corporate securities
Rs.4000. The individual accounts of c. Corporate debt
the partners A,B and C are showing d. Govt. and corporate debt Before passing an award the banking
credit balance of Rs.20000, ombudsman will be guided by;
Rs.17000 and Rs.1250 respectively. Ans - a
To meet the payment stated in the a. evidences produced by the
order, how much amount will be parties.
payable from A’s account? A Depository Receipt (DR) is a type b. banking law and practice.
of ..... c. instructions and guidelines issued
a. Rs.16250 by RBI
b. Rs.17750 a. negotiable (transferable) financial d. all the above
c. Rs.18750 instrument that is traded on a local
d. Rs.40000 stock exchange of a country but Ans - d
represents a security, usually in the
Ans - b form of equity that is issued by a The tenor of issue of CPs can be
foreign publicly listed company upto ..... months.

Customer‘s Relationship with the b. negotiable (transferable) financial a. 3

Bank is influenced by ..... (i) instrument that is traded on a stock b. 6
Customer‘s attitudes, (ii) Attitude exchange of a foreign country but c. 9
represents a security, usually in the d. 12
of bank staff, (iii) Attitudes of form of equity that is issued by a Ans - d
salesperson foreign publicly listed company ....

a. Only (i) and (ii) c. negotiable (transferable) financial Minimum amount of a CD should be
b. Only (i) and (iii) instrument that is traded on a local ..... lakh/s.
c. Only (ii) and (iii) stock exchange of acountry but
d. (i), (ii) and (iii) represents a security, usually in the a. 1
form of equity that is issued by a b. 2
Ans - d local publicly listed company c. 3

d. Receipt given by a depository d. 5

Personal selling tries to achieve participant of a depository
three general goals finding Ans - a
prospects, convincing prospects to Ans - a ....
buy and .....
RBI conducts on site inspection and
a. Monitoring new products being off-site supervision of Indian banks
developed and based on its finding.

78
RBI rates the banks on important a. Only (i) b. 50
parameters called ..... The word A of b. Only (ii) c. 75
these parameters stands c. Either (i) or (ii) d. 100
for ..... d. Both (i) and (ii)
Ans - a
a. CACS, advances Ans - b ....
b. CAMELS, assets
c. CACS, asset quality Co-operative Banks are permitted to
d. CAMELS, asset quality A cheque drawn by a Power of borrow to the extent of ..... % of their
Attorney holder is presented for aggregate deposits
Ans - d payment. You come to known as at the end of March of the
through reliable source that PA previous financial year in the
holder has died. Which of the call/notice money market.
Primary dealers also known as PDs, following action you will take?
deal ..... a. 1
a. Return the cheque as agency is b. 2
a. Mutual funds terminated c. 3
b. Shares b. Pay the cheque as Principal is d. 5
c. Government securities alive
d. All the above Ans – b
c. Pay the cheque after obtaining
Ans - c Principal’s confirmation d. None of
these What are the formalities the banking
Which of the followings cannot ombudsman will comply before
become a Partner in a Firm? Ans - b passing an award ?
....
a. Company as a single entity a. if the complaint is not settled
b. Trust if provided in Trust Deed The Officer who Issues a Notice within 2months from the date of
c. HUF as a single entity under SARFAESI Act should be at receipt of the complaint, the baking
d. Another Firm, each partner as least ..... ombudsman will inform parties about
individual member his intention to pass an award.
a. Branch Manager
Ans - c b. Chief Manager b. both the parties may submit
.... c. Assistant General Manager further representation or evidences
d. Deputy General Manager in support their case within 15 days.
The committee that gave its c. the banking ombudsman will pass
recommendation for drawing a Ans - b an award.
perspective plan of computerization .... d. all the above
for the period 1990-94:
The minimum tenor for borrowing of Ans - d
a. Shere Committee ICDs by PDs is ..... days.

b. Narasimham Committee a. 1 The maximum tenor of Government

c. Rangarajan Committee b. 7 Securities can be upto ..... years.
d. Saraf Committee c. 14
d. 90 a. 1
Ans - c b. 10
Ans – b c. 20
d. 30
What is ASBA in e-Invest? CDs can't be issued to .....
Ans - d
a. All Scheduled Bank Association a. Trusts ....
b. Applications Supported by b. Minors
Blocked Amount c. NRIs The secretariat staff in the baking
c. All India State Bank Association d. Funds ombudsman office will be
d. All Savings Bank Account Holders
Ans - b a. drawn from banks.
Ans – b .... b. drawn from reserve bank
c. directly appointed
A Corporate would be eligible to d. (a) and (b)
The banking ombudsman scheme issue CP, if its TNW is not less than
was implemented in India on ..... ..... crore/s. Ans - d

a. 14.6.1995 a. 1
b. 1.1.7.1995 b. 2 Normally the day of auction for 364-
c. 2.10.1995 day T-bill is .....
d. 15.12.1995 c. 3
d. 4 a. Wednesday
Ans - a b. Wednesday of reporting week
Ans - d c. Wednesday of non-reporting
.... week
d. None of the above
An electronic substitute for a manual Fortnightly average outstanding
signature that serves the similar lending of SCBs should not exceed Ans – b
function as a manual signature is more than ..... % of their
called as (i) encrypted signature, (ii) capital funds.
digital signature
a. 25

79
The tenor of issue of ICDs can be c. Pledge
upto ..... months. d. Charge on Book Debts a. Within the district for any amount

a. 3 Ans - c b. Within the State for any amount &

b. 6 property not exceeding Rs 50000/-
c. 9 outside the State c. Throughout India
d. 12 Rules relating to Common Seal are for any amount
contained in which of the following? d. Within the State for any amount &
Ans - d property not exceeding Rs 10000/-
.... a. Certification of Incorporation outside the State
b. Memorandum of Association
Which of the following is a/an input c. Certificate of Commencement of Ans - d
device in a computer system? (i) Key Business ....
board, (ii) Bar code reader, (iii) d. Articles of Association
Touch pad Any addition/alteration made in the
Ans - d ‘Will’ by maker by an instrument is
a. Only (i) and (ii) referred to as .....
The acceptance of recommendations
b. Only (i) and (iii) of the banking ombudsman should a. Allonge
c. Only (ii) and (iii) be conveyed by the bank within? b. Codicil
d. (i), (ii) and (iii) c. Assignment
a. 7 days d. None
Ans - d b. 15 days
c. 15days Ans - b
d. 30days
Advertising and sales promotion, ....
public relations are three of the five Ans - d
tools of the promotion Succession certificate is not
mix. The other two are ..... applicable to which of the followings
How many offices the banking except in the states of UP & MP?
a. Personal selling, direct marketing ombudsman have at present ?
b. Home banking, internet banking a. Debts
c. Physical evidence and people a. 5 b. Securities
d.Neither of the above c. Goods & Articles
b. 10 d. Applicable to All
Ans - a c. 21
d. 29 Ans - c
How many common seals a
LC which can be amended or Ans - b company may have?
cancelled by the opening bank is
called...... a. Any Number
Normally the amount of auction for b. Only One
a. Transferable LC 91-day T-bill is ..... crores c. As Provided in AoA
b. Irrevocable LC d. As Provided in MoA
c. Revocable LC a. 4000
d. Revolving LC b. 5000 Ans - b
c. 6000 ....
Ans – c d. 7000
Product strategies are of ..... types. A & B are maintaining an ‘E or S’
Ans - c account. D has been named as
a. 1 .... nominee. Both A & B die in an
b. 2 accident. Balance in the account will
c. 3 Issue of probate of a will is governed be payable to .....
d. 4 by which act?
a. Jointly to legal heirs of A & B
Ans - b a. Indian Contract Act
b. NI Act b. legal heirs of A alone
c. Indian Succession Act c. Legal heirs of B alone
The apex institution which handles d. Transfer of Property Act d. D alone
refinance for agriculture and rural
development is called: Ans - c Ans - d
.... ....
a. RBI A probate issued by a High Court is
b. SIDBI valid ____________ and is Which of the following is not true in
applicable to ___________ respect of Garnishee order?
c. NABARD
d. SEBI a. Within the state, Movable assets a. Issued under S 60 of the Civil
b. Within the state, Movable & Procedure Code
Ans - c Immovable assets b. Attaches TDRs payable at a
c. Throughout India, Movable assets Future Date
d. Throughout India, Movable &
Which of the following charge over Immovable assets c. Collection items / Clearing Credits
assets of the company is not realized after the receipt of the order
required to be registered with Ans - d are not attached d. Order in Joint
Registrar of Companies? .... names then deposit in single name
not attached
a. Equitable Mortgage A probate issued by the District court
b. Hypothecation is valid _________ Ans - d

80
.... c. Four-wire modems
d. All of the above a. delay in collection of cheques
Which of the following is not true in b. deficiency in cash transaction.
case of Revenue attachment order? Ans - a c. non- issue of demand drafts
d. all the above
a. Issued by I Tax, Sales Tax,
Wealth Tax authorities b. Specific Under PMRY, the eligible subsidy is Ans - d
amount will be mentioned ..... % of the project cost.
c. Accounts of deceased/insolvent
not attached a. 10 A partnership firm is dissolved
d. Future Credits attached b. 15 compulsorily in which of the following
c. 20 circumstances?
Ans - c d.25
.... a. When all the partners are declared
What is the time limit to accept the Ans - b insolvent
recommendations of baking b. When the business of the firm
ombudsman by a bank? becomes unlawful
The tenor of issue of CBLO can be
a. one week upto ..... months. c. When a competent court passes
b. 2 weeks an order for the dissolution of the
c. 3 weeks a. 3 firm d. All these cases
d. 4 weeks b. 6
c. 9 Ans - d
Ans - b d. 12 ....

Ans - d Min Share capital required in case of

NREGA (National Rural Employment Private & Public Ltd Co.
Guarantee Act) is renamed after ..... The Retail loans given by respectively?
commercial banks are generally for
a. Jawahar Lal Nehru duration of ..... a. Rs 1 lakh, Rs 7 lakhs
b. Mahatma Gandhi b. Rs 5 lakhs, Rs 50 lakhs
a. 5 to 7 with housing loans granted c. Rs 5 lakhs, Rs 7 lakhs
c. Indira Gandhi for a longer duration d. Rs 1 lakh, Rs 5 lakhs
d. Rajeev Gandhi b. Less than 1 year
c. Less than 5 years Ans - d
Ans - b d. None of the above
.... ....
Ans - a
Optical fibre can carry signals at ..... Which among the following is not
mentioned in the Memorandum of
a. 100 mega bits/sec Kissan Credit Card is normally valid Association of a company?
b. 500 mega bits/sec for a period of ..... years.
c. 2 giga bits/sec a. Objects of the company
d. 5 giga bits/sec a. 2 b. Authorized capital
b. 3
Ans - c c. Powers of directors in conducting
c. 4 general affairs of the company d.
d. 5 Registered office

Which is not one of the aspects Ans - d Ans - c

which need careful scrutiny for
launching a product? Maximum No of Partners in a non- Which is not a retail deposit product?
banking partnership firm is ______ in
a. Geographical reach terms of ______ Act a. credit card
b. Timing of launch b. term deposits
c. Place of launch a. 10, Indian Partnership Act 1932 c. senior citizen deposits
d. Prospect consumer groups b. 20, Indian Partnership Act 1932 d. No frills acct
c. 10, Companies Act 1956
Ans - c d. 20, Companies Act 1956 Ans - a
When a firm faces a situation that the
expected sales and profit do not Ans - d
reach the desired levels, it can adopt .... Which of the following statement is
.. possible approaches. What is the true limit for a bank to not true?
dispose customers complaints?
a. 2 a. Minor cannot become a partner in
b. 3 a. 1 month a Firm but he can be admitted to the
c. 4 b. 2 month benefits of the partnership with the
d. 5 c. 3 month consent of all partners
d. 6 month
Ans - b b. Minor is not liable personally for
Ans - b any debts of the Firm nor his private
property can be made liable
Example of Simplex mode of c. Minor’s share in the Firm is liable
communication is ..... for all acts of the Firm

a. Radio broadcast What kind of complaint can be d. Within one month of attaining
lodged with the banking majority, Minor should by way of
b. Walkie talkie ombudsman?

81
public notice, elect to become or not
to become a partner in the Firm
Ans - d
MCX-SX Third on line national stock
exchange started operating?
a. Dec 2012
b. Jan 2013
c. Feb 2013
d. April 2013
Ans - c
A customer has a saving bank
account and her husband had
withdrawn the money from the bank
on the basis of forged cheques at
various occasions but the customer
did not object to it. After his death,
she comes to bank and demands the
money:
a. Bank would refer the matter to the
court
b. Bank is liable on forged cheques
c. The bank is negligent but not
liable, as the customer is party to the
forgery and did not inform the bank
in time
d. loss shall be borne in the ratio of
50:50 by the bank and the customer
Ans - b
MCX-STOCK EX LTD consists of
how many shares?
a. 30
b. 40
c. 50
d. 60
Ans - b
If a borrower wants to file an appeal
with DRAT against the decision of
DRT under Debt Recovery Act, how
much amount it will be required to
deposit:
a. 75% of the amount
b. 50% of the amount
c. 25% of the amount
d. 10% of the amount
Ans – b
A customer of Delhi branch of the
bank having Multi-city cheque book
under the CBS, demands payment of
a cheque at Lucknow branch of the
bank and there is connectivity
between these two branches .....
a. it is not a proper demand
b. demand is in order. Lucknow
branch should pay. Bank would get
proper discharge.
c. to demand money all bank
branches are considered one unit
whether the cheque is normal or
multi-city.
d. demand is in order, but Lucknow
branch cannot get valid discharge as
contract is with Delhi branch
Ans – b
In a partnership firm, the provision
regarding maximum no. of partners
is mentioned in .....
a. Indian Partnership Act
b. Indian Contract Act
c. Indian Companies Act
d. Banking Regulation Act
Ans - c
The person who apply for an LC
a. seller
b. creditor
c. debtor
d. buyer
Ans – d
A firm discounts its export
receivables of up to 5 years without
recourse to the exporter under which
of the following arrangement:
a. forfaiting
b. factoring
c. securitisation
d. bills discounting
Ans - a
A gives a mandate in favour of B to
operate his account and later on, a
power of attorney is
executed by A in favour his wife. In
this case......
a. Mandate would remain effective
along with power of attorney b.
Mandate would become ineffective, if
revoked specifically
c. only one will be operative (either
mandate or power of attorney)
d. a and b
Ans – d
Not negotiable crossing means .....
a. The collecting banker should
confirm about the genuineness of
holder before collection of his
cheque
b. The not negotiable cheque cannot
be further negotiated.
c. Collection of not negotiable
cheque will not get protection under
NI Act
d. A transferee cannot get better title
than a transferor and he also cannot
transfer a better title than he
possesses.
Ans - d
A & B are maintaining an ‘E or S’
account. D has been named as
nominee. Both A & B die in an
accident. C, son of A, produces a
court order restraining the Bank from
making payment from the account.
What action you will take?
a. Payment will be made jointly to
legal heirs of A & B b. Payment will
be made to C
c. Payment to D will be a valid
discharge to Bank’s Liability d
Payment to D will be stopped
Ans - d
You receive a garnishee order for a
current account maintained in your
branch. A cheque is received for
payment. What memo should be
appended while returning the
cheque:
a. Garnishee order received
b. Refer to drawer
c. Insufficiency of funds due to
garnishee order
d. a and b
Ans - b
The stage where the product is
introduced to the market and the
real-life reactions are known
is called as......
a. Idea screening
b. Commercial launch
c. Test Marketing
d. Concept testing
Ans - c
Who among the following will sign
the account opening form for
opening a current account in case of
a partnership firm where the firm has
three partners and a minor, aged 17,
has been admitted to the firm for
benefits?
a. all the three and the father of the
minor
b. all the three and natural guardian
of the minor
c. all the three and the minor himself
d. all the three partners only
excluding the minor.
Ans - d
...... requires staffing, allocation of
tasks and responsibilities, budgeting,
and securing financial
and other resources needed.
a. Analysis
b. Planning
c. Implementation
d. Control
82

Ans - c
Which of the following documents in
case of a company is called Charter
of the company?
a. Resolution from Board of Directors
or Shareholders b. Memorandum of
Association c. Articles of Association
d. Certificate of Incorporation
Ans - b
Ravi Kumar and Sons, an HUF,
maintain a current account. The
Karta of the HUF dies and leaves
behind three family members i.e. his
wife and two minor sons. How will
you deal with the account?
a. Bank will stop operations in the
account
b. Account can be operated by minor
son being male member
c. Account would be operated by
widow being guardian of eldest male
member to be called Karta
d. Account can be operated by any
of the two sons
Ans - c
What percentage of total output of
the Export Oriented Units (EOUs)
producing farm products could be
sold in the Domestic Tariff Area
(DTA) in India without losing the
benefits of duty free imports?
a. Nil
b. 66
c. 25
d. 50
Ans - d
A bill presented by your branch is
dishonoured and you want to get its Which one doesn't come under the
noting. The provision regarding classification of scheduled banks?
noting is described under section...of
NI Act: a. Public Sector Banks
b. Private Sector Banks
a. 100 c. Foreign Banks
b. 99 d. None of these
c. 85A
d. 131 Ans – c
Ans - b Which of the following is correct
regarding loans to professional and
self employed under the priority
If a borrower wants to file an appeal sector? (i) Total borrowings should
with DRAT against the decision of not exceed Rs. 10 lac of which
DRT under SARFAESI Act, how working capital not to exceed Rs. 2
much amount it will be required to lac, (ii) For qualified medical
deposit: practitioners, total borrowings should
not exceed Rs. 15 lac where working
a. 75% of the amount capital of Rs. 3 lac
b. 50% of the amount
c. 25% of the amount a. Only (i)
d. 10% of the amount b. Only (ii)
c. Either (i) or (ii)
Ans - b d. Both (i) and (ii)
Ans - d
A bank receives a cheque for
collection from its customer. Bank
gives credit before collection of Which of the following statements is
the cheque. It also allows the not correct in connection with interest
customer to withdraw the amount. In on loans & advances?
such case, the .....
a. The bank may waives the part or
a. Bank is holder full of interest charged to a borrower
b. Bank is holder for value b. The bank has liberty to provide
c. Bank becomes holder in due interest free loan to a borrower
course
d. Representative of the drawer c. In case the interest charged by the
bank is not in confirmity with the rate
Ans - b prescribed by the RBI, the court may
disallow such excess interest
Hindustan lever launched Surf Excel d. The bank can charge the interest
and Surf Excelmatic. This is a ..... below the prime lending rate
type of branding strategy
Ans - b
a. Line Extension
b. Brand Extension
c. New Brand The universal set of standards for
d. Multi-Brand EDI is known as .....
Ans – a a. EDIFACT

Providing banking facilities to the b. EDI

poor people of the society for mutual Supervision over Capital Market and c. ISO
benefit of poor persons as well as Stock Exchanges is the role of... d. BIS
banks, is called ;
a. RBI Ans - a
a. Financial literacy b. SEBI
b. Financial inclusion
c. Narrow banking c. IRDA In case of perfectly elastic demand,
d. Universal banking d. AMFI demand curve becomes .....

Ans - b Ans - b a. Horizontal

b. Vertical
Reserve Bank of India’s functions c. Downward sloping
are classified into: As per PML Act, Banks has to submit d. None of these
CTR to FIU-India for transactions of
a. Supervisory & Regulatory above Rs. 10 Lakhs within .... of Ans - a
b. Promotional & Developmental close of the month.
. Refinance Activities
d. All of the above a. 3 Days ...... is the price that a buyer carries
b. 7 Days in their mind and refers to it when
Ans - d c. 15 Days they look at the given
d. 30 Days product

Ans - c a. Psychological pricing

83
b. Segmented pricing
c. Product-line pricing
d. Reference pricing
Ans - d
With the increased use of IT there is
an ever increased demand of the
specialized personal in the fields of
..... (i) IT Management & EDP
Auding, (ii) Telecommunications, (iii)
Data Base Management
Programming
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
Small and relatively new banks with
limited network of branch become
better placed to compete with
established banks, by integrating .....
in their operations.
a. Customer advice
b. Customer share
c. Advertising agencies
d. Information technology
Ans - d
Personal loans can be canvassed
among .....
a. salaried person
b. pensioners
c. foreign nationals
d. NRI Customers
Ans - a
Data mining means analyzing the
data stored with .....
a. The DSA
b. The front-office staff
c. The back-office staff
d. The customers
Ans - c
E-Marketing is the same as ..... (i)
Real time Marketing, (ii) Virtual
marketing, (iii) Digital
marketing
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
Which of the folowing were not
created to provide long term funds
for industry or agriculture. (i) Mutual
funds, (ii) FIs, (iii) NBFCs
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans – b
Banks can not grant loans to any of
its directors against which of the
following securities?
a. Government Securities
b. Life Insurance policies
c. Bank's own deposit
d. Shares
Ans - d
& firm or company in which any of its
Credit Exposure ceiling for borrowers
is linked to:
a. Paid up capital of bank
b. Net worth of bank
c. Capital fund of the bank
d. None of these
Ans - c
Banks have to limit their commitment
by way of unsecured guarantees in
such a manner that
...... % of the Bank's outstanding
unsecured guarantees plus the total
of outstanding unsecured
advances do not exceed ..... % of
total outstanding advances.
a. 10%, 15%
b. 15%, 20%
c. 15%, 40%
d. None of these as there is no such
stipulation.
Ans - d
Banks can not grant advance against
their own shares as per provisions
of:
a. Section 20 (1) of RBI Act
b. Section 19(2) of Banking
Regulation Act
c. RBI guidelines
d. Section 20 (1) of Banking
Regulation Act
Ans – d
Which of the following is not
sensitive commodity for purpose of
Selective Credit Control?
a. food grains i.e. cereals and pulses
b. major oil seeds and oils thereof
c. raw cotton and kapas
d. Tea and Coffee
Ans - d
As per RBI, for borrowers availing
working capital credit facilities of Rs
10 crore and above from
the banking system, the loan
component should normally be ..... %
and cash credit component
should be ..... %.
a. 80%, 20%
b. 20%, 80%
c. 75%, 25%
d. 60%, 40%
Ans - a
As per Section 20A of the Banking
Regulation Act, 1949, whose
permission is required for remitting in
whole or in part any debt due to a
bank by any of the directors, or any
directors is interested as director,
partner, managing agent or
guarantor, or any individual, if any of
its directors is his partner or
guarantor.
a. Reserve Bank
b. Board of Directors of the Bank
c. SEBI
d. None of these as loan given to
a director can not be remitted at all.
Ans - a
CRM (Customer Relationship
Management) is ..... (i) A tool for lead
generation, (ii) An ongoing
daily activity, (iii) The task of a DSA
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
Factors influencing the promotion
mix is/are
a. Type of product/market
b. Buyers’ Readiness stage
c. Product life cycle stage
d. All of the above
Ans - d
Under PML Act, Banks has to
maintain record of foreign currency
transactions even below Rs.
10 Lakhs if the aggregate of such
transactions is Rs....... during .....
Days/Weeks/Months.
a. Rs. 10 Lakhs, 1 Day
b. Rs. 10 Lakhs, 1 Month
c. Above Rs. 10 Lakhs, 1 Day
d. Above Rs. 10 Lakhs, 1 Month
Ans - d
A artnership firm has three partners
and a minor, aged 17, admitted to
the firm for benefits. Who among the
following will sign the account
opening form for opening a current
account in this case ?
a. all the three and the father of the
minor
84
b. all the three and natural guardian a. To all endorsees
of the minor
c. all the three and the minor himself b. To Payee
d. all the three partners only c. To Drawee Banker
d. To collecting Banker
Ans - d
Ans - a
The benefits of test marketing is/are
A distribution channel has several
a. More reliable forecast of future ..... points
sales
a. Exchange
b. An opportunity to decide about b. Distribution
launching or dropping the product c. c. Selling
Determining the better promotional d. Buying
strategies d. All of the above
Ans - a
Ans - d
Marketing situation can't be ..
Which of the following is not the
growth strategies? a. Few Sellers & Many Buyers
b. Many Sellers & Many Buyers
a. Intensive growth c. One Seller & Many Buyers
b. Innovative growth d. None of the above
c. Integrative growth Ans - d
d. Diversification growth
A savings account transferred to
Ans - d inoperative accounts if there is not
operation in the account
for the last .....
You received a garnishee order for a
current account maintained in your a. 2 years
branch. A cheque is received for b. 3 years
payment. What memo should be c. 4 years
appended while returning the d. 5 years
cheque?
Ans - a
a. Garnishee order received
b. Refer to drawer
c. Insufficiency of funds due to Cash credit facility
garnishee order merchandise (i.e., goods) are
d. None of the above allowed by way of ..... (i) Lien, (ii)
Hypothecation, (iii) Pledge
Ans - b
a. Only (i) and (ii)
b. Only (i) and (iii)
Max fine for offences under PML Act c. Only (ii) and (iii)
can be ..... d. (i), (ii) and (iii)
factors (d) attorneys of High Court
provided there is no agreement to
the contrary
a. A, b and d only
b. B, c and d only
c. A, b and c only
d. A to d all
Ans - d
There are various restrictions on
banks on the issues relating to (a)
shareholding (b)directorship (c)
Voting powers (which of these are
correct) under provisions of Act?
a. a to c all, banking regulation Act
b. a and b only, Banking regulation
Act
c. b and c only, Banking regulation
Act
d. a and c only, RBI Act
Ans - a
Marketing channels means .....
a. delivery objects
b. sales target
c. delivery outlets
d. delivery boys
Ans - c
Mobile Banking offers the following
..... (i) Withdrawal of cash anywhere
in India, (ii) Statement
of account for a specific period, (iii)
against Transfer of funds from one account
to another account
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - c

a. Rs. 2 Lakhs Ans - c

b. Rs. 3 Lakhs
c. Rs. 5 Lakhs
d. Rs. 10 Lakhs
Ans - c
Mr. Kumar as director of a Ltd
company expired. Bank received a
cheque signed by Mr. Kumar as
director of the Ltd company. The
bank
a. Can honour the cheque only after
obtaining confirmation from other
directors b. Can honour the cheque
c. Cannot hounour the cheque
d. The company should issue a stop
payment instructions to the bank
Ans - b
Electronic purse may have following
number of storage space .....
In the case of an hypothecation
advance to a company ..... a. only one
b. two
a. the charge has to be compulsorily c. several
filed for registration under Section d. no storage space
125 of the Companies Act, 1956,
within a period of 30 days of the Ans - c
creation of the charge
b. the charge has to be compulsorily Transactions relating to Government
filed for registration within a period of receipt are recorded in .....
90 days of the creation of the charge
a. Cash book/Day book
c. the charge is not required to be b. Transfer book
registered c. Receipt Scrolls
d. None of the above d. All of these
Ans - a Ans - c

U/s 171 of Indian Contract Act, the A letter of credit is defined in which
Account Payee crossing is an order general lien is available to ..... (a) of the following?
of the drawer .. banker (b) wharfingers (c)
a. Indian Contract Act

85
b. Companies Act Ans - d a. Negotiation
c. Payment and Settlement System b. Assignment
Act Which of the following payment c. Nomination
d. None of these system location does not match? d. Lien

Ans - d a. Clearing House Inter-bank Ans - b

Payment System (CHIPS)-Us
b. Clearing House Automated
What is the requirement u/s 25 of b Payment System (CHAPS)- Obligation of a Banker to maintain
R Act, to be fulfilled by the banks in Singapore secrecy is applicable to .....
India? c. Clearing House Automated
transfer System (CHATS)-Hong a. Existing deposit accounts
a. Banks are to maintain 75% of the Kong b. Existing safe deposit accounts
demand and time liabilities as assets d. INFINET- India c. Closed deposit accounts
in India b. These assets would be d. a,b and c (existing/closed)
there as on last Friday of each Ans - b
quarter Ans - d

c. If such Friday is holiday, the Charge card and Credit card is

preceding working day would be
deemed to the relevant day d. All the
above
Ans - d
Red Herring Prospectus is issued by
a for .....
a. Company, to raise funds through a
commercial paper
b. Company, to raise funds from
bank for a long term project
c. Company, to raise capital from
market under book building process
in which a price of the share is not
disclosed
d. Bank, to raise funds from the
overseas lenders
Ans - c
An account holder draws a cheque
on a .....
differentiated by .....
a. Repayment mode as Credit card
usage value can be paid in full or in
part where as in charge card it is full
b. There is no difference
c. Only difference is Credit card is
having more security feature than
Charge card d. Charge cards are
debit cards with an option for over-
drawings
Ans - a
If Digital signals are to be transmitted
over long distances then the signals
may get .....
a. improved
b. enhanced
c. unaffected
d. deteriorated
Ans - d
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
Ans - d
State which of the following is/are
correct ..... (i) In a garnishee order
the banker on whom the
order is issued is judgement debtor’s
debtor, (ii) A book debt advance is
secured by a mortgage, (iii) CAMEL
model is used by RBI inspectors
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - b

a. Banker of the Payee

b. Banker of the Drawee
c. Banker of the Drawer
d. Banker of the Endorsee
Ans - c
Cheque truncation can be done by
..... (i) using MICR data, (ii) sending
cheque by speed post,
(iii) using image processing
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Mediums of data transmission are
..... (i) Terrestrial Cables, (ii)
Microwave Systems, (iii)
Communication Satellite
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
...... Phones are sophisticated
electronic devices that can deliver E-
mail, their focus away from
the domestic market
Which of the following is a
characteristic of EMV transaction? (i)
Card to be inserted and remain in the
terminal for the duration of
transaction, (ii) Card generates
unique cryptogram, (iii) Information is
exchanged between the card and the
terminal at the end of, the transaction
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d

Ans - b a. Ordinary Under mobile payments, the

b. Intelligent maximum amount which can be
c. Smart allowed by a bank is restricted to
The technology also forces the d. Both a and b ......
banks to adopt or shift from product
based approach to ..... Ans - c a. Rs.10000
based approach.
b. Rs.25000
a. Prince A transfer by one person of a right, c. Rs.50000
b. Card property or debt (existing of future) to d. at discretion of the bank
c. Employee another person is
d. Customer known as ..... Ans - d

86

Information technology has resulted
in ..... (i) improved efficiency, (ii)
innovative products , (iii)
effective delivery system
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
It is a characteristic of the English
mortgage that .....
a. the personal liability of the
mortgagor remains notwithstanding
the absolute transfer of the property
to the mortgagee
b. in case of default in repayment of
mortgage money the mortgagee has
a right to sell the
mortgaged property outside the court
in special circumstances mentioned
in Sec. 69 of the
Transfer of Property Act. 1882
c. Both of the above
d. None of the above
Ans - c
EMV standards which provides
technical standards for card usage.
In which EMV stands for .....
a. Electronic Magnetic Variance
b. Europay, Master card and Visa
c. Electro Magnetic Visualization
d. None of these
Ans - b
Which of the following is included in
Risk Based Supervision of Banks by
the RBI? (i) It is essential on site
inspection driven, (ii) The inspection
are conducted with references to
Balance sheet dates, (iii)
Supervisions follow-up commences
with the detailed findings of annual
financial inspection
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
Out of the items mentioned below
..... are physical products. (i)
Pilgrimage tour to Gaya, (ii)
Dosa and chapatti, (iii) Drinking
water
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - c
The note issue system in India is not
based on ..... (i) Gold Deposit
System, (ii) Minimum
Reserve System, (iii) Proportional
Reserve System
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - b
During the continuance of the
mortgage in possession, the
mortgagee has the following liability
......
a. He must manage the property as a
person of ordinary prudence.
b. He must use the best endeavors
to collect the rents and profits and
should in the absence of a contract
to the contrary pay the Government
Revenue out of the income.
c. He must keep accounts of any
monies received and spent by him as
mortgagee. d. All of the above
Ans - d
When a proposal for an advance
against immovable property is
received, the following point
should be carefully considered ..... (i)
Borrower's title, (ii) Borrower's
repaying capacity, (iii)
Valuation of the property
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
An estimate of the value of the
property can be arrived at by .....
a. taking architect or engineer's
certificates
b. scrutinizing the certificate issued
by a local authority for taxation
purpose c. calculations based on the
net yield by way of rent d. Any of the
above
Ans - d
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
Ans - c
Identify the document of title to
goods:
a. Bill of exchange
b. Bill of lading
c. Bill of entry
d. any one of the above
Ans - b
One rupee note does not bear the
signature of ..... (i) Secretary,
Ministry of finance, Govt. of
India, (ii) Dy. Governor of Reserve
Bank of India, (iii) Governor of
Reserve Bank of India
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - c
Sec 131 of NI Act,1881 does not
extend protection to the ..... (i)
Paying Banker, (ii) Collecting
Banker, (iii) Issuing Banker
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - b
Hexadecimal number system uses
..... (i) 0 to 16 numbers, (ii) 0 to 9
numbers and characters A,
B, C, D, E, F for numbers 10, 11, 12,
13, 14 and 15
a. Only (i)
b. Only (ii)
c. Either (i) or (ii)
d. Both (i) and (ii)
Ans - b
Which of the following Rating
Approach is not applicable to foreign
banks operating in India? (i)
CAMELS, (ii) CAMEL, (iii) CACE
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - b
Loan for fishering is covered under
Priority Sector as ..... advances
a. Direct Agriculture
b. Indirect Agriculture
c. Self Employment Scheme
d. Allied to indirect Agriculture
Ans - a
87
As per FIMMDA’s guidelines, the RBI issues notes of .. c. It must be the intention of the
Mid-Office is responsible for: parties that the goods will serve as
a. All denomination security for a debt or
a. Dealing activities b. All denomination except Re.1 performance of a promise
b. Risk Management c. All denomination except Rs.1000 d. All of the above
d. None of these
c. Reconciliation Ans - d
d. Confirmation of deals Ans - b

Ans - b Merchant bankers are .....

INFINET is set up at .....
a. Financial Brokers
The ..... converts digital signals to a. Mumbai b. Financial intermediaries
analog signals for the purpose of b. New Delhi c. Credit Appraisers
transmitting data over d. Underwriters
telephone lines c. Hyderabad
d. Chennai Ans - b
a. Modem
b. Router Ans - c Fund based credit facilities include
c. Gateway ..... (i) Term loan for acquisition of
d. Bridge fixed assets, (ii) Cash
Limitation period for filing a suit for credit facility, (iii) Bill purchase facility
Ans - a sale of mortgaged property is .....
years from due date. a. Only (i) and (ii)
b. Only (i) and (iii)
Which one is not a centralised a. 10 years c. Only (ii) and (iii)
control Network? b. 12 years d. (i), (ii) and (iii)
c. 20 years
a. Star Topology d. 30 years Ans - d
b. Ring Topology
c. Tree Topology Ans - b
d. Loop Topology A charge against property for an
amount of debt where neither
Ans - b ownership not possession is
Which is not a communication passed to the creditor is known as
Which is not a function of RBI? processor? .....

a. Lender of Last resort to banks a. Message switches a. Pledge

b. Management of Govt Debts b. Multiplexers b. Hypothecation
c. Regulating Capital Market c. Transponders c. Mortgage
d. Bankers to Govt d. Front End Processors d. Lien

Ans - c Ans - c Ans - b

The securities are held in electronic In the case of an hypothecation

form by... advance to a company .....
Banknet and SWIFT for transmission
a. SEBI of messages were commissioned in a. the charge has to be compulsorily
b. Depositories India in the year ..... filed for registration under Section
125 of the Companies Act, 1956,
c. Mutual Funds a. 1951 within a period of 30 days of the
d. Registrars b. 1991 creation of the charge
c. 1961
Ans - b d. 1971 b. the charge has to be compulsorily
filed for registration within a period of
Ans - b 90 days of the creation of the charge
Interest rate risk is an example for
...... is the first national level. c. the charge is not required to be
a. Market Risk Network in India which was registered
b. Operational Risk commissioned in Fabruary 1991 d. None of the above
c. Credit Risk
d. All of the above a. Internet Ans - a
b. INET
Ans - a
c. BANKNET With a view to increase or decrease
d. VSAT the liquidity in the banking system
Which one doesn't come under and thereby affect the loanable funds
Financial Markets? Ans - c with banks, RBI initiates sale or
purchase of government securities in
a. Money Market open market and this method is
b. Debt Market Which of the following conditions are called .....
c. Forex Market essential to constitute a valid
d. None of these pledge? a. Reverse Repo
b. Open Market Operations (OMOs)
Ans - d a. Bailment of goods
b. Bailment must be or on behalf of
the debtor or intending debtor

88
 Decision support system (DSS) uses Obligation of a Banker to maintain
c. Repo ..... (i) query language, (ii) financial secrecy is applicable to .....
d. G-secs or government advice, (iii) statistical
securities Auction Market analyser a. Existing deposit accounts
b. Existing safe deposit accounts
Ans - b a. Only (i) and (ii) c. Closed deposit accounts
b. Only (i) and (iii) d. a,b and c (existing/closed)
c. Only (ii) and (iii)
Which of the following statement is d. (i), (ii) and (iii) Ans - d
correct? (i) Reserve Bank has to
apply to higher court for winding up Ans - d
of a banking company, (ii) The State which of the following is/are
central government can make an correct ..... (i) In a garnishee order
order of moratorium for a fraud not Which of the following refers to the the banker on whom the
exceeding 6 months, (iii) The central cash that all banks (scheduled and
government has the power to non-scheduled) are required to order is issued is judgement debtor’s
sanction the schemes of maintain with RBI as a certain debtor, (ii) A book debt advance is
amalgamation or reconstruction percentage of their demand and time secured by a mortgage, (iii) CAMEL
prepaid by the RBI liabilities (DTL)? model is used by RBI inspectors

a. Only (i) and (ii) a. Base Rate a. Only (i) and (ii)
b. Only (i) and (iii) b. SLR b. Only (i) and (iii)
c. Only (ii) and (iii) c. Marginal Standing Facility c. Only (ii) and (iii)
(MSF) d. (i), (ii) and (iii)
d. (i), (ii) and (iii) d. CRR
Ans - b
Ans - d Ans - d

Which of the following statements, is

In case of perfectly elastic demand, Equity investments by a bank in a correct regarding bank rate? (i)
the value of Ed is ..... subsidiary company, or a financial Interest rate to decide interest rates
services company, including financial on deposits by banks, (ii) It is a tool
a. One institutions, stock and other of credit control, (iii) It attacts money
b. Greater than one exchanges, depositories, etc., which supply
c. Less than one is not a subsidiary should not exceed
d. Infinite ..... of the bank’s paid-up share a. Only (i) and (ii)
capital and reserves b. Only (i) and (iii)
Ans - d c. Only (ii) and (iii)
a. 5 percent d. (i), (ii) and (iii)
b. 10 percent
What is the amount of capital c. 20 percent Ans - d
subsidy available under National d. 25 percent
Rural Livelihood Mission (NRLM)
scheme? Ans - b What do we call the practice of
charging different prices depending
a. 30% for individuals on individual consumer and
Where a person in any of the towns, situation?
a. 50% for self-help group c. which the State Government
40% for SC/ST concerned may, by notification in the a. Break –even pricing
d. no capital subsidy is available Official Gaetted specify on this b. Cost-PLUS pricing
behalf, delivers to a creditor or his c. Value based pricing
Ans - d agent document or title to immovable d. Dynamic pricing
property, with intent to create a
The elasticity of demand for goods security thereon, the transaction is Ans - d
used for alternative purposes is ..... called a .....

a. Inelastic a. Simple mortgage

b. Elastic b. English mortgage Actual products are the services
c. Infinite c. Equitable mortgage which fulfill the ..... benefits
d. None of these d. Anomalous mortgage
a. Augmented product
Ans - b Ans - c b. Actual product
c. Core product
d. Unsought product
Basic component of a data A transfer by one person of a right,
Communication System is ..... property or debt (existing of future) to Ans - c
another person is
a. Transmitting/Receiving devices known as ..... When MU is zero, TU is .....
b. Interface equipments
a. Negotiation a. Zero
c. Transmission medium b. Assignment b. Negative
d. Transmission Processors c. Nomination
d. Lien c. Increases
Ans - a d. Maximum
Ans - b
Ans - d

89
A holder for value is ..... a. Only (i) and (ii)
b. Only (i) and (iii) Ans - d
a. A bank allows one of its clients to c. Only (ii) and (iii)
withdraw against clearing of a d. (i), (ii) and (iii)
cheque. Rule in clayton’s case is an example
b. A bank which maintains high net Ans - c of .....
worth customers accounts
a. right of lien
c. A bank which collects cheques for Liquidity with a banker means ..... b. right of set off
non customers d. A bank which c. right of transfer
handles high value clearing cheques a. Cash on hand available with him d. right of appropriation
b. Cash and bank balance
Ans - a Ans - d
c. The level of convertible (to cash)
short term assets available with a
bank d. All of the above Which of the following is not the
Eligibility Criteria for Banks stage of product life cycle?
undertaking Insurance Ans - c
Broking/Corporate Agency through a a. Introduction
Subsidiary/JV ..... (i) Minimum Net b. Growth
Owned Fund of 1,000 crore, (ii) A minor account can be opened c. Maturity
Minimum CRAR of 10 per cent, (iii) jointly with .. d. None of these
Net NPAs of less than 3 per cent and
a profit making record for the last a. Natural Guardian Ans - d
three years b. Grand Parents

a. Only (i) and (ii) c. Adult member of the family ...... is a complex function requiring
b. Only (i) and (iii) d. Any one of the above use of both qualitative and
c. Only (ii) and (iii) quantitative techniques
d. (i), (ii) and (iii) Ans - a including budgetary control, control
of marketing mix, and even
Ans - c marketing audit.
While raising a loan for the company,
who will sign the documents on a. Analysis
In case of relatively more elastic, behalf of the company? b. Planning
demand curve is ..... c. Implementation
a. Managing Director d. Control
a. Horizontal b. Authorised official as mentioned in
b. Vertical resolution from Board of Directors Ans - d
c. Steeper c. Executive Director
d. Flatter d. None of the above
Suspicious Transactions to be
Ans - d Ans - b submitted to FIU for amount .....

a. 10 Lakhs and above

Which is correct statement? (i) The
RBI issues monetary policy for the In which topology, breakdown of one b. Above 10 Lakhs
country, (ii) The Ministry of Finance station can disable the entire LAN? c. Above 2 Lakhs
issues fiscal policy, (iii) The Ministry d. Any amount
of Commerce issues the EXIM policy a. Star
b. Bus Ans - d
a. Only (i) and (ii) c. Ring
d. None of these
b. Only (i) and (iii) For a loan to be raised in case of
c. Only (ii) and (iii) Ans - c need, a person assigns his insurance
d. (i), (ii) and (iii) policy in favour of the bank. Such
relationship of the customer with the
Ans - d Various techniques like bank, will be of a/an:
brainstorming sessions, surveys for
need/idea identification, suggestion a. Pledger and pledgee
Discuss the essential conditions for scheme for staff are used during ..... b. Beneficiary and trustee
right of set off to the bank c. Lender and borrower
a. Idea screening d. Assignor and assignee
a. Money transactions b. Commercial launch
b. Both the accounts in the same c. Product Development Ans – d
name and rights d. Concept testing
c. implied agreement to keep the
accounts distinct and separate. Ans - a The products whose sale is
d. All of the above dependent upon the sale of primary
product are .....
Ans - d “Change in demand” occurs due to
the change in ..... a. Companion product
b. Generic product
Cash credit facility against a. Income c. Expected product
merchandise (i.e., goods) are d. Potential product
allowed by way of ..... (i) Lien, (ii) b. Prices of related goods
Hypothecation, (iii) Pledge c. Taste and preference Ans - a
d. All of these

90
 After his death, she comes to bank
Which of the following is not the c. It affects the level of funds and demands the money.
process of Marketing Management? available for other element of
marketing mix d. All of the above a. Bank would refer the matter to the
a. Analysis court
b. Planning Ans - d b. Bank is liable on forged cheques
c. Control
d. None of these c. The bank is negligent but not
A collecting bank gets statutory liable, as the customer is party to the
Ans - d protection under...... forgery and did not inform the bank
in time
a. RBI Act
Which of the following is not the b. Banking Regulation Act d. Loss shall be borne in the ratio of
characteristic associated with c. Negotiable Instruments Act 50:50 by the bank and the customer
transactions between two or more d. Indian Contract Act
parties? Ans - b
Ans - c
a. Agreed upon conditions
Which of the following cannot part of
b. Time of agreement B is payee of a cheque, who a product line?
c. A place of agreement endorses it to c. C lost the cheque
d. None of these which is found by D, who endorses it a. Liril
in favour of A for valuable b. Lux
Ans - d consideration by way of forging C’ c. Rin
signatures. The cheque is d. Dove
dishonoured. A can recover from .....
A garnishee order is applicable to Ans - c
a. B
a. Demand deposits b. C
b. Time deposits subject to maturity c. D Example of Duplex mode of
c. Recurring Deposit d. any of the previous parties communication is .....
d. All the above
Ans - c a. Radio broadcast
Ans - d b. walkie talkie
c. Four-wire modems
Suspicious Transactions to be
Who doesn't comes under low risk submitted to FIU within ..... of arriving d. All of the above
category under KYC guidelines? at conclusion.
Ans - c
a. Persons from lower strata of the a. 3 Days
society b. 7 Days
b. Salaried employees c. 15 Days Registered office of M/s XYZ Ltd Co.
c. Trusts d. 30 Days is at New Delhi. This company wants
d. Govt Departments to enter into an MOU with a Chennai
Ans - b based Company. Managing Director
Ans - c of M/s XYZ Co Ltd will be visiting
Except one of the following others Chennai next month in this respect.
Marketing concept is rested on four are Non Fund based facilities: What will you suggest him regarding
main pillars. Which of the following is Common Seal?
not amongst four pillars? a) Letters of Credit
b) Bank Guarantees a. To carry original common seal to
a. Target Market c) Co-acceptance of Bills Chennai
b. Customer needs d) Trust Receipt
c. Segregated Marketing b. To carry facsimile of the Common
d. Profitability Ans - d Seal to Chennai c. Either a or b

Ans - c
Which of the following statement is d. Neither a nor b
not correct?
Which of the following represent the Ans - a
acronyms of age groups? a. Price exist in different forms for ....
products of different nature
a. SKIPPIES A & B are friends aged 14 & 15
b. Price affects the consumer respectively. They want to open a
b. DINKS behaviour in deciding about joint account in your bank. You can't
c. PUPPIES acquiring the product c. Price is the ..... (i) Allow them to open a joint
d. All of the above only element that produces revenues account to be operated jointly, (ii)
d. None of these Allow them to
Ans - d
open a joint account with operating
Ans - d instructions Either or Survivor, (iii)
Pricing is significant for firms Allow them to open a joint account
because with operating instructions Former or
A customer has a SB account and Survivor
a. It determines revenues generated her husband had withdrawn the
by the firms money from the bank on the basis of a. Only (i) and (ii)
b. It determines profits earned by the forged cheques at various occasions b. Only (i) and (iii)
firms but the customer did not object to it. c. Only (ii) and (iii)

91
d. (i), (ii) and (iii) Customization does not mean ..... (i)
acquiring more customers, (ii) a. inseparability
Ans - c special products to suit
each customer, (iii) more products b. variability
per customer c. client relationship
Which one doesn't come under d. perishability
plastic money? a. Only (i) and (ii)
b. Only (i) and (iii) Ans - c
a. Credit Card c. Only (ii) and (iii)
b. Charge Card d. (i), (ii) and (iii)
c. Debit Card Programs designed to reward those
d. None of these Ans – b customers who buy company's
products regularly are
Ans - d classified as .....

Which is not a type of T bills issued? a. customers program

It is a characteristic of the English b. frequency programs
mortgage that ..... a. 31-day c. distribution programs
b. 91-day d. None of above
a. the personal liability of the c. 182-day
mortgagor remains not withstanding d. 364-day Ans - b
the absolute transfer of the property
to the mortgagee Ans - a
.... The phases of disaster recovery
b. in case of default in repayment of planning are .....
mortgage money the mortgagee has SWIFT is established under .....
a right to sell the mortgaged property a. Awareness
outside the court in special a.US Law b. Preparation
circumstances mentioned in the b.UK Law c. Testing
Transfer of Property Act d. All of these
c.Belgian Law
c. Both of the above d.Russian Law Ans – d
d. None of the above
Ans – c
Ans - c IS audit for the software used is
carried out by CAATT. This type is
RBI acts as bankers to Central Govt. known as .....
Using an existing brand name to on ..... basis. (i) Mandatory, (ii)
launch new or modified products in a Agreement a. The audit around the computer
new category is called as b. The audit through the computer
...... a. Only (i) c. The audit with the computer
b. Only (ii) d. All of above
a. Line extension c. Either (i) or (ii)
b. Brand extension d. Neither (i) nor (ii) Ans - c
c. Multi brands
d. New brands Ans - a
Risk prone component(s) in
Ans - b computerised systems are .....

When a stand-alone system is a. Errors and omissions in data and

The features of the award awarded connected to the existing multi-user software
by banking ombudsman are; systems, they are called as b. Unauthorised disclosure of
...... confidential information
a. it is binding on the banks
a. Workstation c. Computer abuse and mis-
b. it is not binding on the complaints b. Server utilisation of banks assets
unless be accepts it c. Node d. All of above
d. Either a or c
c. the complaint is free to seed Ans - d
alternative remedies available under Ans - d
general law d. all the above
MODEM does the following .....
Ans - d Which is not a common task
performed by the regional a. modulates digital signals into
office/zonal office? analog
COMET permits free format b. demodulates analogue signals into
messages of ..... lines of ..... a. Inter-branch reconciliation digital
characters each. b. Customer Service c. converts data into image
c. Credit monitoring d. both a and b
a. 6,36 d. Personnel data management
b. 7,48 Ans - d
c. 8,48 Ans - b
d. 9,56

Ans - c Which of the following characteristics A twisted pair cable consists of .....
is found only in some services like
banking and not found in case of a. two insulated copper wire
many services?

92
b. an inner copper conductor held in b. Only (i) and (iii)
position by circular spacers a. decline stage
c. single copper wire c. Only (ii) and (iii) b. less improved stage
d. all of these d. (i), (ii) and (iii) c. product maturity stage
d. non-innovative stage
Ans - a Ans - b
Ans – a

Effective selling skills does not Which is/are correct as regard to

Objective of IS security is to ensure depend on ..... (i) Size of the sales debit/smart card ? (i) The
..... team, (ii) Peer strength, (ii) relationship between the card issuing
Knowledge level of the sales team bank and card holder is contractual
a. Confidentiality and is subject to certain terms and
b. Integrity a. Only (i) and (ii) conditions. (ii) As per the RBI
c. Availability b. Only (i) and (iii) guidelines, banks can introduce
d. All of above c. Only (ii) and (iii) smart/debit cards with issued by
d. (i), (ii) and (iii) Reserve Bank of India. (iii) Banks are
Ans - d not permitted to issue debit/smart
Ans - b cards in tie up with any non-banking
entities.
Dumb terminals have ..... (i) Key
board, (ii) Monitor, (iii) Memory Marketing implies 'meeting needs ..... a. Only (i) and (ii)
(i) profitably, (ii) increasingly b. Only (i) and (iii)
a. Only (i) and (ii) c. Only (ii) and (iii)
b. Only (i) and (iii) a. Only (i) d. (i), (ii) and (iii)
b. Only (ii)
c. Only (ii) and (iii) c. Either (i) or (ii) Ans – d
d. (i), (ii) and (iii) d. Both (i) and (ii)

Ans - a Ans - a Charge created on LIC Policy is not

..... (i) Hypothecation, (ii) Pledge, (iii)
Assignment
Multiplexer is used to .....
The functions of the distribution a. Only (i) and (ii)
a. store and forward data to a large channel do not includes ..... b. Only (i) and (iii)
number of terminals over a single c. Only (ii) and (iii)
communication channel b. send a. Helping the company to do d. (i), (ii) and (iii)
more than one signal simultaneously demand forecasting
over a single communication channel Ans - a
b. Helping the customer in
c. intercept and handle understanding and using the goods
communication activities for the host c. Marketing research Bank’s Assets are classified in to
computer d. all of above d. Promotion of the sale of goods standard assets, substandard assets
doubtful assets and loss
Ans - b Ans - c assets, based on the
recommendations of ..... Committee

Considering non personal a. Rangarajan

Hypothecation is not applicable in communication channels, radio and
the case of ..... (i) Movable goods, (ii) television are not considered as b. Narasimham
Immovable property, ...... (i) online media, (ii) broadcast c. Ghosh
(iii) Corporate guarantee media, (iii) display media d. Tandon

a. Only (i) and (ii) a. Only (i) and (ii) Ans - b

b. Only (i) and (iii)
c. Only (ii) and (iii) b. Only (i) and (iii)
d. (i), (ii) and (iii) c. Only (ii) and (iii) If in a cheque, amount stated in
d. (i), (ii) and (iii) words and figure are not same, then
Ans - c .....
Ans - b
a. amount stated in words shall be
paid
The credit cards are usually valid for Considering non personal b. amount stated in figure shall be
..... communication channels, social paid
networking sites, e-mail and c. cheque should be returned with
a. One or Three years company Websites are considered reason "amount in words and figure
b. Five years as ..... differs"
c. Ten years
d. No time limit a. broadcast media
b. display media d. any one of the above
Ans - a c. online media
d. All the above Ans - a

Onsite inspections of banks is not Ans - c

based on ..... methodology (i) The Bankers Fair Practice Code in
CRISIL, (ii) CAMELS, (iii) CCIL 2004 was brought by...
In PLC stages, stage in which sales
a. Only (i) and (ii) and profits declines is called ..... a. Govt of India

93
b. BCSBI Ans - d
The nomination facility in respect of
c. IBA d.RBI safe custody is not available ..... (i)
when the customer is Banks are to keep a close watch on
Ans - c large size cash transactions
an individual, (ii) In respect of articles (debit/credit) of amount ..
deposited by two or more individuals,
Which was the first Mutual Fund (iii) In the case of articles deposited a. 10 Lakhs and above
started in India? by firms and companies b. Above 10 Lakhs
c. Above 2 Lakhs
a. SBI Mutual Fund a. Only (i) and (ii) d. 2 Lakhs and above
b. Kotak Pioneer Mutual Fund b. Only (i) and (iii)
c. Unit Trust of India c. Only (ii) and (iii) Ans - a
d. Indian Bank Mutual Fund d. (i), (ii) and (iii)

Ans - c Ans - c Profits related to new product in its

introductory stage are .....

The main reason for rejection should Assumptions for neutral money are a. negative
by conveyed in writing if the loan ..... (i) The quantity of money has no b. continuously rising
application is upto Rs.... effect on the prices, c. higher
d. declining
a. 1 LaKh (ii) When money becomes neutral
price of the product will depend on Ans - a
b. 2 Lakhs productive power of the economy,
c. 3 lakhs (iii) Neutral money policy implies that
d. 5 Lakhs monetary authorities should not Foreign Exchange reserves of India
change supply of money in response are managed by ..... (i) RBI, (ii)
Ans - b to changes in the supply of goods FEDAI, (iii) Exim Bank

a. Only (i) and (ii) a. Only (i)

Call Money means money b. Only (i) and (iii)
lent/borrowed between banks and c. Only (ii) and (iii) b. Only (i) and (ii)
entities like PDs for ..... d. (i), (ii) and (iii) c. Only (ii) and (iii)
d. Only (i) and (iii)
a. 1 day Ans - d
b. 2-14 days Ans - a
c. More than 14 days
Public relation means building good
relations with ..... Monetary and credit policy helps in
d. None of these ..... (i) Efficient Payment Mechanism,
a. Consumers (ii) Adequate money
Ans - a b. Suppliers supply, (iii) Expansion of Financial
c. Shareholders system
d. All the above
A banker is expected to honour the a. Only (i) and (ii)
cheques within the specified banking Ans - d b. Only (i) and (iii)
hours as per Section c. Only (ii) and (iii)
...... of NI Act,1881 d. (i), (ii) and (iii)
There are ..... stages in the buyers
a. 22 readiness level. Ans - d
b. 25
c. 31 a. Three
d. 65 b. Four The whole time Directors are not
c. Five appointed by ..... (i) Reserve Bank of
Ans - d India, (ii) Central
d. Six government in consultation with RBI,
(iii) Individual Bank
Ans - d
What are the advantage of credit a. Only (i) and (ii)
cards to the member establishments b. Only (i) and (iii)
? (i) Payment is guaranteed by the One of the objectives of monetary c. Only (ii) and (iii)
bank. (ii) The member establishment policy is to maintain exchange d. (i), (ii) and (iii)
get immediate reimbursement from stability because ..... (i) It is
the bank as per the charge slips less Ans - b
discount as agreed with member necessary for smooth international
establishment whether the card trade, (ii) Exchange fluctuations lead
holder has balance in his account or to lack in confidence in a particular Your bank’s customer XYZ Ltd,
not. (iii) It estimates the risk of cash currency, (iii) Any Fluctuation in the enjoys a CC limit of Rs.1,00,000.00.
handling. exchange rate has direct effect The CC account shows a
credit balance of Rs,10,205.00. The
a. Only (i) and (ii) a. Only (i) and (ii) relationship between your bank and
b. Only (i) and (iii) b. Only (i) and (iii) XYZ Ltd is .....
c. Only (ii) and (iii) c. Only (ii) and (iii)
d. (i), (ii) and (iii) a. Debtor/Creditor
b. Creditor/Debtor
Ans - d d. (i), (ii) and (iii) c. Bailor/Bailee
d. Bailee/Bailor

94
 c. Retail Credit Bureau
Ans - a d. Commercial Credit Bureau Ans - a

Which of the following statement, are
correct? (i) Credit policy has been
instrumental in the increased savings
rate, (ii) Monetary policy has
facilitated growth of financial
institutions, (iii) Monetary policy has
resulted in widening the gaps
between rich and poor
Ans - b
A company which pools money from
investors and invests in stocks,
bonds, shares is called
a. A bank
b. An insurance company
The monetary and credit policy
statement of RBI is called:
a. Annual Policy Statement
b. Credit policy of RBI
c. Economic Policy
d. None of these

a. Only (i) and (ii) c. Bancassurance Ans - a

b. Only (i) and (iii) d. Mutual Fund
c. Only (ii) and (iii) Which of the following is/are correct
d. (i), (ii) and (iii) Ans - d regarding selective credit control? (i)
Selective credit controls are used to
Ans - a control inflationary pressure, (ii) Bank
Which is not a type of P/A generally credit to consumers to raise demand
Which of the following is the limit for granted? for durable consumer goods will also
Home loans in rural and semi-urban lead to inflation, (iii) Bank loans
areas for the purpose of priority a. General extended to speculators to hoard
sector advances? b. Limited goods will lead to inflation
c. Universal
a. Rs. 2 lac d. None of these a. Only (i) and (ii)
b. Rs. 5 lac b. Only (i) and (iii)
c. Rs. 15 lac Ans - d c. Only (ii) and (iii)
d. Rs. 25 lac d. (i), (ii) and (iii)

Ans - c Ans - d
“Buy Now – Pay Now” is commonly
used for .....
Which of the following were not In case of with profit life insurance
created to provide long term funds a. Debit Cards policies, the bonus disclosed by the
for industry or agriculture. (i) Mutual b. Vault Cards insurance company if
funds, (ii) FIs, (iii) NBFCs c. Credit Cards
d. E-purse any .....
a. Only (i) and (ii)
b. Only (i) and (iii) Ans - a a. is paid as it accrues
c. Only (ii) and (iii)
d. (i), (ii) and (iii) b. is credited to the bank account of
the policy holder at the end of each
Ans - b Cash budget is a payment of ..... year c. is added to the policy value
and paid along with contracted
a. cash Receipts amount d. is not paid at all.
‘MICR’ technology used for b. cash payments Adjustment is made in premium
clearance of cheques by banks c. either a or b payments
refers to ..... d. both a and b
Ans - c
a. Magnetic Ink Character Ans - d
Recognition
b. Magnetic Intelligence Character Which of the following orders, the
Recognition Open Systems Interconnection (OSI) RBI may pass when the affairs of a
c. Magnetic Information Cable Model consists of ..... Banking company are detrimental to
Recognition the interest of the public? (i) To
d. Magnetic Insurance Cases a. 5-layers determinate the policy in relation
Recognition b. 6-layers toadvances to be followed by
Banking companies, (ii) To decide
Ans - a c. 7-layers the purpose for which advances may
d. 8-layers or may not be made, (iii) To fix
margin to be maintained in respect of
The regulator for Mutual Funds in Ans - c securd advances
India is......
a. Only (i) and (ii)
a. FIMMDA Loan Delivery System is applicable b. Only (i) and (iii)
b. AMFI in case of borrowers enjoying : c. Only (ii) and (iii)
c. RBI d. (i), (ii) and (iii)
d. SEBI a. working capital credit limits of Rs.
10 crore and above from the banking Ans - d
Ans – d system b. working capital credit limits
of Rs 10 crore and above from a
bank. What is “social media optimization”?
Individual customers are covered by
..... of CIBIL. c. fund based limits of Rs 10 crore a. Creating content which easily
and above from the banking system creates publicity via social networks
a. Personal Credit Bureau d. fund based limits of Rs 10 crore
b. Consumer Credit Bureau and above from a bank. b. Writing clear content

95
c. Creating short content which is
easily indexed
d. Hiring people to create content for
social networks
Ans - a
What is meant by “guerilla
marketing”? (i) Using resources such
as time, energy and imagination
rather than money to market, (ii)
Using advertising spots which utilize
gorillas to capture the audience, (iii)
Having a large scale marketing
budget
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - c
The public key, in a electronic
signature is used to .....
a. verify the private key
b. complete the private key
c. supplement the private key
d. all the above
Ans - a
With a ..... System, bank wide
information, which is on-line and
accurate becomes a reality
with better information being
available with the bank, the cost of
operation can be reduced.
a. Computer
b. Centralised
c. Decentralised
d. Distributed
Ans - b
What is a “vlog”? (i) Video Log, (ii)
Video blog, (iii) New technology to
aid in blogging
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - c
Which of the following statements, as
regard to Government business, is
correct? (i) Excise remittances are
accepted in challans with four
copies, (ii) Government cheques are
drawn and signed in lnk, (iii) RBI
interest warrants remain valid for
eight months from the date of
issuance of warrant
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d Ans - b
Which P is not included in the 7Ps of Which out of the following is the aim
marketing mix? of income fund schemes of a mutual
fund?
a. People
b. Purpose a. to provide maximum income
c. Promotion b. to provide regular income
c. to provide appreciation of capital
d. Price d. to provide regular income and
appreciation of capital
Ans - b
Ans – b
Reserve bank of India under Section Service profit chain follows ..... (i)
35A of the banking Regulation Act, Internal service quality, (ii) Satisfied
1949 has issued the following and productive service
instruction, under clean note policy employees, (iii) Satisfied and loyal
..... (i) Banks to secure note packets customers
with
a. Only (i) and (ii)
paper/polymer bands, (ii) Banks b. Only (i) and (iii)
should sort notes into re-issuable c. Only (ii) and (iii)
and non-issuables and issue only d. (i), (ii) and (iii)
clean notes to public, (iii) Banks
should forthwith stop writing of any Ans - d
kind on water mark portion of bank
notes
Who suggested product, pricing,
a. Only (i) and (ii) place, promotion all these in a
b. Only (i) and (iii) company represents “Market Mix”?
c. Only (ii) and (iii)
d. (i), (ii) and (iii) a. Neilsen
b. Neil Borden
Ans - d c. Lauterborn
d. Philip Kotler
In connection with the loan available Ans - b
under National Rural Livelihood
Mission (NRLM), which of the
following does not match? Networking coupled with the
phenomenal increase in the
a. First dose: 4-8 times to the processing power of computers has
proposed corpus during the year or also helped in eliminating the use of
Rs. 50, 000 whichever is higher very powerful ..... systems.
b. Second dose: 5-10 times of exiting
corpus and proposed saving during a. Management
the next twelve b. Officer
months or Rs. 1 lakhs, whichever is c. Union
higher
d. Central Computer
c. Third dose: Minimum of Rs. 5
lakhs Ans - d
d. Between Rs. 5-10 lakhs for fourth
dose and/or higher in subsequent
doses Under the powers derived from
Section 20, 21 and 21A of the
Ans - c Reserve Bank of India does not
...... (i) manage the public debt and
issue new loans on behalf of the
Bank sanctioned a TL of Rs.20 to an Central and state
SSI for a project cost of Rs. 40 lac.
Balance is to come as margin from Government, (ii) provide refinance to
promoter and under SIDBI’S National NABARD in respect on agriculture
Equity Fund. What maximum amount advances, (iii) regulate flow of credit
is available under NEF to this to the economy by variation in the
project? Statutory Liquidity requirement and
Cash Reserve Ratio
a. Rs.5 lac being 25% of the amount
of the loan a. Only (i) and (ii)
b. Rs.10 lac being 25% of project b. Only (i) and (iii)
cost c. Only (ii) and (iii)
c. Rs.4 lac i.e. 10% of project cost d. (i), (ii) and (iii)
d. Difference between margin to be
provided by the borrower+bank loan Ans - b
and the project cost
96
As a cover for bank note issue, RBI borrower and ownership with the
keeps some minimum value of total bank a. Internet
approved assets in the form of ..... (i) b. Intranet
gold coins, (ii) bullion, (iii) foreign Ans - c c. Extranet
securities
d. WAN
a. Only (i) and (ii) Banknet was set up by .....
b. Only (i) and (iii) Ans – c
c. Only (ii) and (iii) a. IBA
d. (i), (ii) and (iii) b. RBI
c. Central Govt Your bank receives a cheque in
Ans - d d. None of the above inward clearing which has not been
signed by the account holder. Which
Ans - b one of the following reasons you will
...... is the best operable within a first select to return the cheque?
to market scenario even though
there would be few The transition process of an a. Cheque is not signed by the payee
competitors within the company exchange from a mutually owned b. Refer to the drawer
industry. association to the shareholders c. Cheque is not signed by the
owned company, is called ..... drawee
a. Elasticities d. Cheque is not signed by the
b. Market skimming a. mutualisation endorsee
c. Market penetration b. demutualisation
d. Marketing research c. decorporatisation Ans - b
d. none of the above
Ans - b
Ans - b
Who can't issue CDs?
On the information that the draft has Which of the following can be
been lost, a duplicate has been included in the qualified institutional a. LABs
issued after taking indemnity bond. buyers (QIBs)? (i) a scheduled b. RRBs
The original and duplicate are commercial banks and financial c. Both a & b
presented for payment through institutions, (ii) mutual funds and d. None of these
clearing, by two different banks on provident funds, (iii) Flls registered
the same day. Both have been with SEBI or Venture capital fund Ans - c
branded with the stamp payee’s ....
account credited. The bank will not a. Only (i) and (ii)
..... (i) pay the original, (ii) pay the b. Only (i) and (iii) A Corporate Bond which carry a
duplicate, (iii) return both c. Only (ii) and (iii) rating of AAA is considered to be .....
d. (i), (ii) and (iii)
a. Only (i) and (ii) a. Highly safe
b. Only (i) and (iii) Ans - d b. High probability of default
c. Only (ii) and (iii) c. Can't say
d. (i), (ii) and (iii) d. None of the above
On 27.09.2015, on verification of a
Ans - b cheque presented by a customer of Ans – a
your bank, you find that the date of
A draft purchased is reported lost the cheque has been wrongly written
and the purchaser wants to stop the as 27.09.2014 and you are of the Knowledge of which is necessary for
payment of the draft. Can the Bank opinion that the cheque should be effective selling skill?
do it? returned to the customer and with
what reasons? a. Promotional market
a. Bank cannot stop payment since it b. Related market
is a promissory note a. Stale cheque
b. Bank can stop payment since b. Mutilated cheque c. Digital market
covered under negotiable instrument c. Post dated cheque d. Virtual market
c. Bank can ask the purchaser to d. Damaged cheque
suffer for negligence and bank Ans - b
cannot help Ans - a
d. Bank would issue stop payment
instructions only after two weeks The objective of creation of IRDA is
from date of issue Within how many days particulars of not to ..... (i) facilitate opening of
charge should be filed with Registrar insurance companies for
Ans - a of companies from the date of
creation of charge? increasing insurance business, (ii)
regulate and develop insurance
In case of advance against pledge of a. 30 Days business, (iii) develop insurance
goods ..... products so that all the insurance
b. 45 Days companies adopt them on a uniform
a. possession as well as ownership c. 60 Days pattern
passes to the bank b. possession d. 90 Days
and ownership remains with the a. Only (i) and (ii)
borrower Ans - a b. Only (i) and (iii)
c. Only (ii) and (iii)
c. the possession passes to the bank d. (i), (ii) and (iii)
but the legal ownership remains with A collaborative network that uses
the borrower d. possession with the Internet Technology to link business Ans - b
with their suppliers is ...

97
 a. Payment will be made jointly to
Which is the tool that will help to legal heirs of A & B b. Payment will Ans - c
increase the sale of product among be made to C
the existing customers itself? c. Payment to D will be a valid
discharge to Bank’s Liability The first pillar under BASEL II is?
a. Premium and bonus offer
b. Free samples d. Payment to D will be stopped a. market discipline
c. Discount offers b. disclosure norms
d. Free gifts Ans - d c. minimum capital requirement
.... d. supervisory review
Ans - a
Normally coaxial cables can carry Ans - c
signals at .....
What would the marketing budget
section of a marketing plan detail? (i) a. 100 mega bits/sec A bill is payable to or to order of a
The cost to write the plan, (ii) The b. 500 mega bits/sec non-trading firm. Endorsement can
expected costs for each ad c. 2 giga bits/sec be made by .....
campaign based on the delivery d. 5 giga bits/sec
method, (iii) The overall marketing a. Any partner of the firm
budget for a year Ans - b
b. All the partners
a. Only (i) and (ii) c. Authorised partner through power
b. Only (i) and (iii) Universal Banking means... of attorney
c. Only (ii) and (iii) d. Any two partners
d. (i), (ii) and (iii) a. International Banking
b. Wholesale Banking Ans - b
Ans - c c. Offering multiple Financial
Products
Modern style of marketing include d. All of the above The term `allonge’ refers to .....
..... (i) digital marketing, (ii) tele-
marketing, (iii) e-mails Ans - c a. A plain sheet appended to a
solicitation negotiable instrument for the
purpose of making endorsement
a. Only (i) and (ii) Which of the following are involved in thereon.
b. Only (i) and (iii) the Growth Strategies of a company?
c. Only (ii) and (iii) (i) Intensification, (ii) Diversification, b. Conditional endorsement of a
d. (i), (ii) and (iii) (iii) Horizontal integration negotiable instrument c. A plain
sheet appended to a will
Ans - d a. Only (i) and (ii) d. Enclosures to the balance sheet of
b. Only (i) and (iii) the bank
c. Only (ii) and (iii)
Temporary financial assistance d. (i), (ii) and (iii) Ans - a
availed by a State Government from
Reserve Bank of India is Ans - c
called as ..... Which of the following is/are tool(s)
for promotion mix?
a. Overdraft Concept of Bank computerisation
b. Temporary loan practically started after ..... a. Advertising
c. Short term finance b. Public relations
d. Ways and Means advance a. 1970-71 c. Direct Marketing
b. 1973-74 d. All of the above
Ans - d c. 1981-82
d. 1983-84 Ans - d

Bank loans to Large-sized Adivasi Ans – c

Multi Purpose Societies (LAMPS) is Which one of the following inputs
covered under Priority Sector as ..... accounts for the largest percentage
advances A communication processor that share in the total cost of all inputs in
connects dissimilar networks by Indian agriculture ?
a. Direct Agriculture providing the translation from
b. Indirect Agriculture one set of protocol to another is ..... a. Feed for livestock
c. Self Employment Scheme b. Seed
a. Bridge c. Irrigation charges
d. Allied to indirect Agriculture b. Gateway d. Chemical Fertilizers
c. Router
Ans - b d. Modem Ans - a

Ans - b The securities are held in electronic

A & B are maintaining an ‘E or S’ form instead by physical form by ..
account. D has been named as
nominee. Both A & B die in an ...... % of small enterprises advances a. Mutual Funds
accident. C, son of A, produces a should go to micro enterprises in b. Registrars
court order restraining the Bank from case of domestic banks. c. Custodians
making payment from the account. d. Depositories
What action you will take? a. 20
b. 40 Ans - d
c. 60
d. 80

98
Which of the following is not true
about push strategy of promotion
mix?
a. Promotion efforts are directed at
the channel member
b. It is done through personal selling
and trade promotion
c. Promotion efforts are directed
towards the final consumer
d. None of these
Ans - c
Launching the financial Inclusion If Garnishee Order is in a single
scheme in one district and later name, and the account is in joint
extending it to other districts names with Operating clause
is an example of...... "Either or Survivor", the money in the
account .....
a. Idea screening
b. Commercial launch a. can be attached
c. Product Development
d. Concept testing b. can't be attached
c. can be attached if ordered so by
Ans - c the court
d. None of these
Based on Volume of Transaction,
markets can be grouped into ..... Ans - b

a. Real Estate Market

Based on Geographical Area, b. Retail Market The network interface card of LAN is
markets can be grouped into ..... c. Cash/Spot Market related to following layer of OSI
d. Commodity Market Model Transport
a. Real Estate Market
b. Regional Market Ans - b a. Network
c. Retail Loan Market b. Data Link
d. Wholesale Market c. Physical
There is a joint account in the names d. None of these
Ans - b of A and B to be operated upon by
both of them jointly. Ans - c
In respect of Regional Rural Banks, On death of A, the credit balance in
the share holding pattern is: the account is payable to......
One of the objective of Quality
a. Central Government 50%,State a. B improvement is .....
Government 35%,Sponsoring Bank
15% b. Central Government b. B and Legal heirs of A Jointly a. Products' versatility
50%,State Government c. Either a or b b. Aesthetic appeal
15%,Sponsoring Bank 35% c. d. None of these c. Durability
Central Government 15%,State d. Convenience
Government 35%,Sponsoring Bank Ans - b
50% d. Central Government Ans - c
35%,State Government Which of the following is not true in
50%,Sponsoring Bank 15% respect of Minor? Which of the following Act gives legal
recognition to a electronic signature?
Ans - b a. Minor can’t be sued for recovery of
any money lent except for meeting a. Negotiable Instruments Act
Which can be crossed by the the necessaries of his/her life b. Income Tax Act
drawer? c. Information Technology Act
b. A minor can draw, endorse and d. Indian Evidence Act
a. A promissory note negotiate a cheque binding all other
b. A bill of exchange parties except himself c. If a minor Ans - c
c. A Cheque misrepresents his age, he is liable for
d. All the above his contracts d. A minor cannot ratify
the contracts on his attaining majority Which of the following orders, the
Ans - c RBI may pass when the affairs of a
Ans - c banking company are detrimental to
the interest of public? (i) To call any
In 1969, ..... major banks were officer of the Bank to discuss the
nationalised. When a cheque is crossed as "not matter with RBI officials, (ii) RBI may
negotiable", who doesn't come in the depute its officer to watch the
a. 12 picture at all? proceedings at any meeting of the
b. 14 Board of Directors, (iii) To instruct
a. Holder Banking company to make within
c. 17 b. Holder-in-due course specified time the changes in the
d.19 c. Payee management
d. Drawer
Ans - b a. Only (i) and (ii)
Ans – b b. Only (i) and (iii)
c. Only (ii) and (iii)
Low-price and high promotional Threats of physical damage to the d. (i), (ii) and (iii)
spending is likely to succeed in ..... hardware is from .....
markets. Ans - d
a. Natural Calamities
a. Large b. Power Fluctuations
b. Small c. Electro Magnetic Effects X got his house insured against fire
c. International d. All of these due to short circuiting. When he was
d. Local away, his house caught
Ans – a fire due to leakage of LPG cylinder.
Ans - a He will not get any claim because of
application of .....

a. principle of subrogation

99
 It doesn't have any direct impact on Which of the following are
b. principle of proximate cause cash base of the commercial bank characteristics of a preference
c. principle of insurable interest share? (i) holders get voting rights
d. principle of indemnity a. Only (i) and (ii) similar to an equity shareholder, (ii)
b. Only (i) and (iii) owners get a fixed dividend, (iii)
Ans - b c. Only (ii) and (iii) owners get the dividend in
d. (i), (ii) and (iii) preference over the equity
shareholders
To provide regular income and Ans - a
growth of investment, the balance a. Only (i) and (ii)
fund schemes invest in ..... b. Only (i) and (iii)
Setting a low initial price to attract a c. Only (ii) and (iii)
a. govt. securities large number of buyers quickly and d. (i), (ii) and (iii)
b. equity of companies cover the large market
c. debentures of companies Ans - c
d. equity and debt instruments share is known as .....

Ans - d a. Skimming pricing Which of the following do not

Which of the following disqualifies a
person to become a chairman of a
Bank? (i) If a person is engaged in
any other business or vocation, (ii) If
a person has substantial interest in
another company or the firm, (iii) If a
person is a Director of another
company other than a subsidiary of a
Bank
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
What does moral suasion imply? (i)
RBI may issue certain guidelines to
be followed during a particular
period, (ii) It is a kind of presentation
and request made by RBI on
commercial Banks,
(iii) RBI may advise to provide
favorable conditions for Bank credit
in the period of business recession
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
When an insurance company
indemnities the insured, it gets the
right over all the rights and
remedies which are available to the
insured against 3rd parties. This right
is available under .....
a. principle of subrogation
b. principle of proximate cause
c. principle of insurable interest
d. principle of indemnity
Ans - a
What is open market operations
being conducted by the Reserve
bank of India? (i) It has direct impact
on cash base of the commercial
bank, (ii) It is a process of buying
and selling govt. securities by the
RBI on behalf of the government, (iii)
b. Going-rate pricing determine the speed of the computer
c. Value based pricing system? (i) size of the hard disk, (ii)
d. Penetration pricing size of the computer unit, (iii)
capacity of the microprocessor
Ans - d
a. Only (i) and (ii)
...... deals with the specification of b. Only (i) and (iii)
the actual good or service and how it c. Only (ii) and (iii)
relates to the target d. (i), (ii) and (iii)
customer.
Ans - a
a. Price aspect
b. Product aspect What are the powers of RBI under
c. Promotion aspect section 35A of the Banking
d. Place aspect Regulation Act 1949 for issuing
directions to Bank? (i) To issue
Ans - b directions in the public interest or in
the interest of Banking policy, (ii) To
prevent affairs of banking company if
Only those commercial banks which it is detrimental to the interests of
fulfill the eligibility criteria fixed by depositors, (iii) To secure the proper
RBI are allowed to have access to management of any banking
the National Payment system. This company
criteria include ..... (i) minimum net
worth of Rs.50 cr (ii) Net NPA less a. Only (i) and (ii)
than 10% (iii) net profits in at least b. Only (i) and (iii)
one year out of the latest 2 years. c. Only (ii) and (iii)
d. (i), (ii) and (iii)
a. Only (i) and (ii)
Ans - d
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii) In joint accounts, the nomination .....
Ans - d a. Can be made by all account
holders in favor of different persons
b. Can be made in favor of one
Which legal provisions accord the person for deposit accounts c. Can
same rights and remedies to the not be availed
payee (beneficiary) against
dishonour of electronic funds transfer d. All of the above
instructions for insufficiency of funds
in the account of the payer (remitter), Ans - b
as are available to the payee under
section 138 of the NI Act?
All normal transactions are accepted
a. Section 16 of Information and and processed under RTGS in which
Technology Act 2000 of the following
phases .....
b. Section 25 of the Payment and
Settlement Systems Act, 2007 c. a. RTGS open business phase
Section 27 of Indian Evidence Act b. IDL Shut phase
d. Section 141 of Negotiable c. IDL close phase
Instruments Act 1881 d. RTGS close phase
Ans - b Ans - a

100
What are the major objectives of
credit policy? (i) To control money
supply, (ii) To attain full employment,
(iii) To maintain price stability
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
..... (i) In terms of orders of
competent courts, (ii) In the case of
minors where
interest of minors are involved
provided bank's convinced that it is
necessary to do so, (iii) In their
judgement based on asset liability
management policies
lender, if any, should be conveyed
within .....
a. twenty-one days from the date of
receipt of request b. fifteen days from
the date of receipt of request c.
immediately on receipt of request
d. None of the above

Ans - d a. Only (i) and (ii) Ans - a

b. Only (i) and (iii)
c. Only (ii) and (iii)
Under a contract of insurance, the d. (i), (ii) and (iii) Which of the following statement, is
payment is made of the insured correct regarding Risk Based
amount on which of the following Ans - d supervision of RBI? (i) The RBI will
dates (choose the wrong one): have effective review, evaluation and
follow-up of the risk profile of the
a. the date of maturity The bailment of goods as security for concerned bank,
b. specified dates at periodical payment of a debt or performance of
intervals a promise is known (ii) The focal point of contacts for
as ..... all banks would be central office of
c. death, in case it happen earlier RBI and its Regional offices, (iii) The
than date of maturity d. death only, in a. Pledge risk profile would focus on high risk
all the cases. areas
b. Hypothecation
Ans - d c. Mortgage a. Only (i) and (ii)
d. Lien b. Only (i) and (iii)
c. Only (ii) and (iii)
Ans - a d. (i), (ii) and (iii)
The Charge card does not offer .....
(i) revolving credit for certain period, Ans - d
(ii) payoff the entire For protection of investors of mutual
amount of card usage, (iii) online funds, who formulates the policies Which is not a major reason for
recover of amount of card usage and regulates the mutual funds to product elimination?
protect the interest of investors?
a. Only (i) and (ii) a. Excessive administration
b. Only (i) and (iii) a. Reserve Bank of India expenditure and time
c. Only (ii) and (iii) b. Company Law Board Insurance
d. (i), (ii) and (iii) b. Sales keep declining continuously
and there is no possibility of
Ans - b increasing sales c. Profits keep
declining continuously and there is
no possibility of improving profits d.
Which of the following are not correct All the above
regarding the no. of factors? (i) in
domestic factoring and international Ans - d
factors 2 factors are involved, (ii) in 459
domestic factoring, 2 factors are
involved and in international factoring A result of a computer virus cannot
1 factor is involved, (iii) in domestic lead to
factoring, 1 factor is involved and in
international factoring 2 factors are a.Disk Crash
involved b.Mother Board Crash
c. Regulatory and Development
a. Only (i) and (ii) authority c.Corruption of program
b. Only (i) and (iii) d. None of the above d.Deletion of files
c. Only (ii) and (iii)
d. (i), (ii) and (iii) Ans - d Ans - b

Ans - a
Which of the following are not off- A company which pools money from
Interest of time deposits may be balance sheet items? (i) overdraft investors and invests in stocks,
paid, credited, transferred or limit sanctioned to a firm, (ii) bid bonds, shares is called
reinvested with frequency not bond, (iii) credit balance in the
less than the ..... overdraft account a. A bank
b. An insurance company
a. quarterly rests a. Only (i) and (ii) c. Bancassurance
b. monthly rests b. Only (i) and (iii) d. Mutual Fund
c. half yearly rests c. Only (ii) and (iii)
d. yearly rests d. (i), (ii) and (iii) Ans - d

Ans - a Ans - b

Bancassurance is
In terms of Rule 14 of IBA Code for In case of receipt of request for
Banking Practice, Banks may accept transfer of borrowal account, the a. An insurance scheme to insure
time deposit for more than 10 years consent or objection of the bank deposits

101
b. An insurance scheme to insure b. A/c Payee within 3 months from he date of
bank advances receipt of complaint
c. General Crossing
c. A composite financial service d. None of the above Ans - c
offering both bank and insurance
products d. A bank deposit scheme Ans - b
exclusively for employees of ‘A’ maintaining an SB Account dies
insurance companies intestate. No nomination had been
...... covers both strategic planning made by him. Balance in the account
Ans - c for the long-term marketing direction is Rs 50000/- Which of the following
of the firm, and is not required for settling the claim
Max period of imprisonment for marketing programmes and tactics to without legal representation?
offences under PML Act can be ..... be used to support the strategic
plans. a. Death Certificate of ‘A’
a. 2-3 Years b. Claim format signed by claimants
b. 3-5 Years a. Analysis
c. 3-7 Years b. Planning c. Stamped Letter of Indemnity by
d. 5-7 Years c. Implementation claimants
d. Control d. Stamped Letter of Indemnity by
Ans - d Surety
Ans - b
Ans - d
A document executed in India shall ....
be stamped ..... the time of During Mortgage, normally EC is
execution. asked for ..... years. ‘A’ maintaining an SB Account dies
intestate. No nomination had been
a. before a. 10 years made by him. Balance in the account
b. after b. 13 years is Rs 1 lakh. Which of the following is
c. 20 years not required for settling the claim
c. at d. 30 years without legal representation?
d. either a or c
Ans - b a. Death Certificate of ‘A’
Ans - d b. Claim format signed by claimants
A bank in India, wants to undertake c. Stamped Letter of Indemnity by
capital market activities, doesn't claimants & Sureties
Under PMRY, the project cost for the need to ..... (i) Obtain d. Affidavit (stamped. from one
business services sector is restricted special license from AMFI, (ii) Independent respectable person
to ..... Register with SEBI, (iii) Obtain
special license from FIMMDA Ans – d
a. 2 Lakhs
b. 5 Lakhs a. Only (i) and (ii)
c. 6 Lakhs b. Only (i) and (iii) Which of the following can be treated
d. 10 Lakhs c. Only (ii) and (iii) as part of the computer hardware: (i)
d. (i), (ii) and (iii) Mother board (ii) Memory (iii) power
Ans - a supply
Ans - b
a. Only (i) and (ii)
b. Only (i) and (iii)
...... covers both strategic planning Monitorable Action Plan (MAP) of c. Only (ii) and (iii)
for the long-term marketing direction RBI would include ..... (i) d. (i), (ii) and (iii)
of the firm, and Improvement areas identified
marketing programmes and tactics to Ans - b
be used to support the strategic during the current on site and off site
plans. supervisory process, (ii)
Accountability of key individuals of A credit voucher for Rs. 30,000/-
a. Analysis the bank, (iii) Sanction and penalties favouring Raju was wrongly posted
b. Planning to Banks for not meeting the to Ramu by the bank. The
c. Implementation monitorable action plan relationship established with Ramu is
d. Control of .....
a. Only (i) and (ii)
Ans - b b. Only (i) and (iii) a. trustee and beneficiary
c. Only (ii) and (iii) b. debtor and guarantor
d. (i), (ii) and (iii) c. creditor and indemnifier
The Imperial Bank of India was d. creditor and debtor
converted into State Bank of India in Ans - d
..... Ans - d

a. 1947 What is the maximum time for The board for financial supervision
b. 1955 settlement of a claim before passing will exercise integrated supervision
c. 1967 an award by the banking over ..... (i) Commercial
d. 1969 ombudsman?
Banks, (ii) Financial Institutions, (iii)
Ans - b a. within 15 days from the date of Non-Banking Financial
receipt of complaint. b. within 30 Intermediaries and other para-
days from the date of receipt of Banking financial institutions
Which is not defined in NI Act? complaint. c. within 2 months from
the date of receipt complaint , d. a. Only (i) and (ii)
a. Special Crossing b. Only (i) and (iii)

102
c. Only (ii) and (iii)
d. (i), (ii) and (iii) Ans - b
Minimum number of directors in case ...
Ans - d of Private & Public Ltd Co.
respectively? As per section 45(ZA) of Banking
Regulation Act 1949:
The term 'Moral Suasion' does not a. 2, 7
refer to ..... (i) The Banker's duty of b. 1, 5 a. Nomination facility has been
secrecy as regards the c. 2, 3 granted for bank deposits.
affair and accounts of his customers, d. No such stipulation
(ii) Moral duty of a borrower to deal b. Guidelines have been laid down
with only one Bank, Ans - c for election of Chairmen and
Managing Directors of the banks.
(iii) A mechanism by which c. Guidelines have been given for
supervisors may enforce The minimum maturity period of providing working capital to big units.
requirements through dialogue with CBLO can be ..... days. d. Nomination facility is available for
the bank's management. locker accounts
a. 1
a. Only (i) and (ii) b. 3 Ans - a
b. Only (i) and (iii) c. 7 ...
c. Only (ii) and (iii) d. 14
d. (i), (ii) and (iii) The Imperial Bank of India was
Ans – a converted into State Bank of India in
Ans - a .....

A cheque drawn by a Power of a. 1947

Out of the following, ..... are Attorney holder is presented for b. 1955
objectives of pricing. (i) Profit, (ii) payment. You come to known c. 1967
Stabilising demand and sales of through reliable source that PA d.1969
the product, (iii) Improvement in holder has been declared insolvent.
product quality Which of the following action you will Ans - b
take?
a. Only (i) and (ii)
b. Only (i) and (iii) a. Return the cheque as agency is The report on Harmonization of role
c. Only (ii) and (iii) terminated of FIs and banks relating to universal
d. (i), (ii) and (iii) banking was given by:
b. Pay the cheque as insolvency of
Ans - d agent does not terminate the agency a. M S Verma
c. Pay the cheque after obtaining b. R H Khan
Principal’s confirmation c. B D Shah
A simplex transmission is capable of d. None of these d. K S Shere
.....
Ans - b Ans - b
a. transmitting data only in one When colour TVs were introduced in
direction India for the first time, the
b. data movement in both the A marketing manager of a large manufacturers priced them very high.
direction but only in one direction at consumer foods company is studying After the initial enthusiasm waned,
a time distribution, promotion, and price of they reduced the price. This type of
c. providing a simultaneous two way the company's product. Marketing pricing is called .....
communication d. data manager is studying which one of the
communication only following concepts? a. Price skimming
b. Market skimming
Ans - a a. Marketing plan c. Exploitation pricing
b. Marketing strategy d. a & c
c. Marketing mix
The risks broadly lead to ..... d. Market offering Ans - b

a. Incorrect decision making leading Ans - c

to setback to business Which Section As per the RBI’s
b. Interruption in activities due to loss Clean Note Policy, writing on a
of data, hardware, software, people Currency Note is ……
ware The market trading days for
c. Violation of privacy Government Securities are from ..... a. An Offence
d. All of these to ..... b. A Crime
c. A Punishable Offence
Ans - d a. Monday, Friday d. The notes become non-legal
b. Monday, Saturday tender
c. Monday, Sunday
d. None of the above Ans - c
Retail stores such as Wal-Mart and
Target are examples of ..... Ans - a
One rupee note bears the signatures BCSBI is setup on the
a. specialty stores of: Recommendations of which
b. department store Committee
c. discount store a. Governor RBI
d. super store b. Secy. Ministry of Finance a. S.S. Tarapore Committee
c. Prime Minister of India b. Dr. c.Rangarajan Committee
Ans - c d. Finance Minister c. Vijay Kelkar Committee

103
d. Montek Singh Ahluwalia
Committee a. Only (i) and (ii) Data privacy assumes significant
dimension; viz ..... (i) authority to
Ans - a b. Only (i) and (iii) access data, (ii) authority to
c. Only (ii) and (iii) use data only for specified purposes,
d. (i), (ii) and (iii) (iii) authority to withdraw money
The Second Pillar under BASEL II without telling others
is? Ans - c
a. market discipline a. Only (i) and (ii)
b. disclosure norms b. Only (i) and (iii)
c. minimum capital requirement Products such as "VHS tapes" are c. Only (ii) and (iii)
d. supervisory review examples of ..... d. (i), (ii) and (iii)

Ans -d a. product classes Ans - a

b. product forms
Based on Nature of Transaction, c. branding
markets can be grouped into ..... d. product perception What are product mix dimensions?

a. Real Estate Market Ans – b a. Number of different product lines

b. Regional Market in the mix
c. Cash/Spot Market b. Total number of items carried in
d. Wholesale Market Which of the following agencies each product line
maintain RIDF (Rural Infrastructure
Ans - c Development Fund)? c. Number of versions offered of
each product in a product line d. All
a. Ministry of Rural development of the above
……of Banking Regulation Act, 1949 b. Reserve Bank of India
provides Nomination for Payment of c. NABARD Ans - d
Depositor’s Money d. SIDBI

a. Section 42 Ans - c ...... refers to the system that assists

b. Section 24 the organization in delivering the
When new developed product service
c. Section 110A concept is tested, next immediate
d. Section 45ZA step is not to ..... (i) develop a. Product
intermediaries, (ii) develop market b. Process
Ans - d strategy, (iii) develop logistic network c. Price
d. Promotion
a. Only (i) and (ii)
Focus of a Marketing Exercise is .. b. Only (i) and (iii) Ans - b
c. Only (ii) and (iii)
a. Goods and services d. (i), (ii) and (iii)
b. Market Demand The cardinal principles of bank
c. Consumers and their requirements Ans - b lending are ..... (i) Safety, (ii)
d. Sale of product Security, (iii) Profitability

Ans - c
A cheque is presented for payment
through clearing house but due to
certain reasons, it is
returned unpaid. The returning
memo is enclosed to comply with .....
a. Negotiable Instruments Act
b. RBI Act
c. Banking Regulations Act
d.RBI clearing House rules
Ans - d
Eligibility Criteria for Banks setting up a. Only (i) and (ii)
a Subsidiary/JV for undertaking
Insurance Business with Risk b. Only (i) and (iii)
Participation ..... (i) Minimum Net c. Only (ii) and (iii)
Owned Fund of 1,000 crore, (ii) d. (i), (ii) and (iii)
Minimum CRAR of 9 per cent, (iii)
Net NPAs of less than 3 per cent and Ans - d
a profit making record for the last
three years
In pledge, the delivery of goods may
a. Only (i) and (ii) be .....
b. Only (i) and (iii)
c. Only (ii) and (iii) a. Actual
d. (i), (ii) and (iii) b. Constructive
c. Both of these
Ans - b

Urban co-operative banks are d. Any of the above

controlled by .. Technology has compelled the banks
to evolve a ..... Pricing system for Ans - c
a. Central Govt and NABARD marketing better
b. RBI and NABARD services which may sometimes result
c. State Govt and NABARD in higher costs to the customers. ATMs provide .....
d. State Govt and RBI
a. Opaque a. round the clock service
Ans - d b. Increasing b. anywhere banking facility
c. quick and efficient service
c. Decreasing d. all of above
According to four Ps of marketing, d. Transparent
inventory and logistics services are Ans - d
not classified as ..... (i) Ans - d
Place, (ii) Product, (iii) Promotion

104
Globally, the banks are technology
that will gradually give new
dimension ..... of banks. (i)
Products, (ii) Services, (iii) Delivery
systems
d. All of the above Though "Pizza huts" are located in
posh, air-conditioned premises, they
Ans - d continue call
themselves as "Pizza huts". This is
to take advantage of .....

a. Only (i) and (ii) The practice of charging different a. Local sentiment of wanting to eat
b. Only (i) and (iii) price with different customers is in huts
c. Only (ii) and (iii) called ..... b. Brand value
d. (i), (ii) and (iii) c. Brand recognition
a. Price discrimination d. Brand extension
Ans - d b. Discount
c. Allowance Ans - c
d. Two-part pricing
Issuing banks do not accept the
requests from the purchaser for stop Ans - a Which is not one of a main stage in
payment of a demand the process of product development?
draft as .....
In the wake of liberalization policy of a. Idea screening
a. Draft represents a commitment of 1991, most of credit control tools b. Commercial launch
issuing bank in favour of the payee have since been discontinued and c. Product testing
who can always enforce is payment are no longer used by RBI, Which d. Concept testing
against the bank are they? (i) Credit
Rationing/Allocation and Credit Ans - c
b. If the draft has been negotiated to Planning, (ii) Credit Authorisation, (iii)
a holder in due course, he has a right Inventory and Credit Norms
to claim payment from the bank in its The goods which satisfy human
capacity as a drawer so long as the a. Only (i) and (ii) wants directly are called .....
draft does not bear 'NOT b. Only (i) and (iii)
NEGOTIABLE' crossing c. Only (ii) and (iii) a. Consumer’s goods
d. (i), (ii) and (iii) b. Producers’ goods
c. Both of the above c. Public goods
d. Any one of the above Ans - d d. Intermediate goods

Ans - c Ans - a
A firm discounts its export
Bank A grants an overdraft to ABC receivables of up to 5 years without
Ltd against book debts. This is recourse to the exporter under which A is having a locker and sends the
secured by ..... of the following arrangement. key by post with an intention to
surrender the locker:
a. hypothecation a. forfeiting
b. pledge b. factoring a. bank will be discharged of its
c. mortgage c. bills discounting liability, if key is accompanied by a
d. assignment letter stating the contents of the
d. foreign bills discounting lockers as NIL
Ans - d b. The bank will not be discharged of
Ans – a its liability
c. The bank should not accept
The Basic document for sanction of Major media channels such as print d. bank can accept subject to its
pension, issued By the competent media, display media, online media rights under reserve
authority is called ..... and broadcast media are not
classified as ..... (i) non personal Ans – a
a. Pension Payment Order (P.P.O) communication channels, (ii) non-
b. Pension Disbursement Order emotional communication channels,
(P.D.O) (iii) personal communication Banks provide safe deposit lockers
channels to the Customer who hire them on
c. Letter of authority for drawing lease basis. Here the
pension a. Only (i) and (ii) bank is a .....
d. Pension sanction letter b. Only (i) and (iii)
c. Only (ii) and (iii) a. Lessor
Ans - a d. (i), (ii) and (iii) b. Creditor
c. Trustee
Ans - c d. Lessee
Cost that vary directly with the level
of production are known as ..... Ans - a
Customers in growth stage of life
a. Overhead costs cycle of products are not classified
b. Sales and profit as ..... (i) innovators, (ii) In strategic Alliance, the alliance
c. Variable cost early adopters, (iii) middle majority partners
d. All of the above customers
a. Merge with each other
Ans - c a. Only (i) and (ii) b. One partner acquires the other
b. Only (i) and (iii) c. Remain separate entities
Profit oriented objective refers to ..... c. Only (ii) and (iii) d. None of these
d. (i), (ii) and (iii)
a. Profit maximization Ans - c
b. Profit satisfaction Ans - b
c. Target return on investment

105
Limitation period for filing a suit for b. Ashok Kumar sd/ Ashok Kumar
foreclosure is ..... years from the date c. For Dharmvir sd/Dharmvir by
mortgage debt Ashok Kumar Which one is among the various
becomes due. d. For Dharmvir sd/ by Ashok Kumar techniques used for generation of
(attorney for Dharmvir) ideas?
a. 10 years
b. 12 years Ans - d a. brainstorming sessions
c. 20 years b. surveys for need/idea identification
d. 30 years
Which of the following is not the c. suggestion scheme for staff
Ans - d common objective pursued by firms d. All the above
for short term?
Ans - d
Participatory notes are issued by a. Profit optimization
b. Profit maximization
a. NREs c. Minimum return on sales turnover In a book built issue allocation, RIIs,
d. Fast turnaround or early cash NIIs and QIBs are in the ratio of
b. NRIs recovery
c. FIIs a. 30:20:50
d. PIOs Ans – a b. 35:50:15
c. 35:15:50
Ans - c Smart Card is ..... d. 30:50:20

a. Special purpose Cards Ans - c

The T-bill is quoted at a discount b. Microprocessor Cards
price to the par value of Rs.......
c. Processing unit contains memory
a. 10 for storing data d. Both b & c A market plan is .....
b. 100
c. 1000 Ans - d a. performance appraisal of the
d. 10000 marketing staff
b. company prospectus
Ans - b 1 MB not equal to c. documented marketing strategy
.... d. business targets
a. 1000 KB
Profit maximization if the situation in b. 1024 KB Ans - c
which marginal cost is equal to .....
c. 2^10 KB Marketing ..... the customer
a. Segmented pricing d. Both B & C requirements. (i) identifies, (ii)
b. Predatory pricing satisfies
c. Marginal revenue Ans - a
d. Price system a. Only (i)
b. Only (ii)
Ans - c Which is not a major objective of c. Either (i) or (ii)
computerisation in banking? d. Both (i) and (ii)
Which of the following can't be
included in the money market? a. Customer service Ans - d
b. Housekeeping
a. CDs c. CBS
b. Treasury Bills d. Decision-making Cross-selling is not effective for
c. Corporate Securities which one of the following products?
d. Call/Notice money Ans - c
a. Debit Cards
Ans - c b. Savings Accounts

Interest in SB account is calculated c. Internet Banking

Which of the following is part of the on...... d. Pension loans
money market?
a. Minimum balance during the Ans - b
a. Debentures month
b. Bonds issued by PSUs b. Balance as on 30th of the month
Marketing channels do not mean .....
c. Term Money c. Minimum balance between 10th (i) delivery objects, (ii) delivery
d. Bonds issued by Govt and last day of the month d. On daily outlets, (iii) delivery boys
balance basis
Ans – c a. Only (i) and (ii)
Ans - d b. Only (i) and (iii)
c. Only (ii) and (iii)
Mr. Dharmvir has given a power of ...... of State Bank of India, providing d. (i), (ii) and (iii)
attorney to Mr. Ashok Kumar for loan for consumer durables 2
operation of accounts and dealing decades ago was a failure. Ans - b
with negotiable instruments drawn in
favour of Mr. Dharmvir. What will be a. Buy Back Scheme
the correct endorsement by Mr. b. Big Buy Scheme
Ashok Kumar among the following c. Big Sale Scheme In Garnishee Order, the firm's
..... d.None of the above account ..... for the debts of the
partners.
a. Dharmvir sd/ by Ashok Kumar Ans - b

106
a. can be attached a. Debtor
b. can't be attached b. Creditor Digital signature has .....
c. can be attached if ordered so by c. Principle
the court d. Agent a. Public Key
d. None of these b. Private Key
Ans - d c. Both A and B
Ans - b d. None of the above

If a cheque is accidentally torn by the In the online world of electronic Ans - c

drawer, the cheque ..... commerce, what do the initials CEM
stands for?
a. can't be paid CHAPS system is set-up in .....
b. can be paid, if the drawer confirms a. Costly E-Commerce Marketing
the multilation b. Customer Experience a.USA
c. can be paid, if the drawer confirms Management b.UK
the multilation and if otherwise in c. Customer Experience
order Misleading c.Hong Kong
d. can't be paid, even if the drawer d. Cost Estimates are Mind d.Brazil
confirms the multilation and Boggling
otherwise in order Ans - b
Ans - b
Ans - c
CHATS system is set-up in .....
Tele banking is not based on ..... (i)
Which one is not one of the most virtual banking, (ii) voice processing, a. USA
common tasks performed by (iii) online banking b. UK
RO/ZO? c. Hong Kong
a. Only (i) and (ii) d. Brazil
a. Inter-branch reconciliation b. Only (i) and (iii)
b. Credit Monitoring c. Only (ii) and (iii) Ans - c
d. (i), (ii) and (iii)
c. Personnel Data Management
d. Customer service Ans - b
"CASHWIRE", a clearing facility, is
Ans - d In LAN, each independent system is provided by .....
known as .....
a. Bankwire
If Garnishee Order is in a single a. Tree b. Fedwire
name(former., and the account is in b. Node c. POS
joint names with Operating c. Server d. None of these
clause "Former or Survivor", the d. Stand-alone PC
money in the account ..... Ans - a
Ans - b
a. can be attached Hypothecation is applicable in the
b. can't be attached case of .....
c. can be attached if ordered so by The fastest I/0 of RAID (Redundant
the court Arrays of Inexpensive Disks) is ..... a. Movable goods
d. None of these b. Immovable property
a. Level – 0 c. Book debts
Ans - a b. Level – 1 d. Corporate guarantee

c. Level – 3 Ans - a
Generally LAN will not extend d. Level – 4
beyond .....
Ans - a Charge created on LIC Policy is .....
a. 50 meters
b. 100 meters a. Hypothecation
c. 150 meters Cash payment of Term deposits is b. Pledge
d. 200 meters possible, if the amount doesn't
exceed Rs. ..... c. Assignment
Ans – c d. Mortgage
a. 20000
The ..... directory is mandatory for b. 25000 Ans - c
every disk c. 40000
d. 50000
a. Root As per the provisions of NI Act,1881
b. Base Ans - a a banker gets protection for payment
c. Sub of a cheque only if it
d. Case is a .....

Ans - a BCSBI has been set up as a ..... a. Holder in due course

b. Payment in due course
a. Autonomous Body c. Holder for value
Banks undertake to pay electricity b. Society d. All of the above
bills, insurance premium for the c. Company
customer regularly. Here the d. None of these Ans - b
bank is a .....
Ans - b

107
A negotiable instrument is endorsed Who can make the complaint to c. Land developers
as Pay to Raju only. This is called as ombudsman? d. Individual wanting to buy a flat
..... or house
a. the customer himself
a. Blank endorsement b. the authorized representative of Ans - d
b. Restrictive endorsement customer.
c. Sans recourse endorsement
d. Endorsement in Full c. (a) or (b) above How much additional exposure is
d. all the above permitted in exceptional
Ans - b circumstances with the permission of
Which one ensures high speed with Ans - c the Board of Directors of the bank in
laser beam light source? case of exposure to single borrower
or group?
a. Copper wire-pair Which of the following is not true in
b. Coaxial pair respect of Married Woman? a. 5%, 5%
c. Optical fiber b. 10%, 10%
d. All of them a. Married woman may extend c. 5%, 10%
guarantee on behalf of third parties d. No additional exposure without
Ans - d RBI approval
b. Married woman cannot be
arrested or imprisoned for non- Ans - a
In the maturity stage of its life cycle, payment of judgement debt c. A
the sales of a product ..... married woman dependent on
husband cannot be adjudged as The banker acts as a Bailee and the
a. Increases insolvent d. Personal assets of a customer as Bailor, this relationship
b. Declines married woman are not liable for any is applicable .....
loan availed by her
c. Stands Still a. when a bank lends funds to a
d. None of the above Ans - d corporate customer

Ans - b .... b. when a bank accepts US$ FCNR

deposits form a NRI customer c.
Which of the following is the first step when a customer operates a safe
An audiocassette manufacturer in the 'transaction processing cycle', deposit locker
starts manufacturing cassette which captures business data d.when a customer keeps articles in
holding trays is an example of through various modes such as safe custody with a bank
...... optical scanning or at an electronic
commerce website? Ans - d
a. Concentric diversification
b. Horizontal diversification a. Document and report generation
c. Conglomerate diversification b. Database maintenance At a Shopping complex, you
d. None of the above c. Transaction processing withdraw cash from ATM of State
d. Data Entry Bank of India. SBI is a .....
Ans - b
Ans – a a. Paying Banker
b. Collecting Banker
Which of the following statements is Find the correct statement.
correct regarding banking c. Advising Banker
ombudsman scheme? a. Marketing is redundant in d. Issuing Banker
monopolistic companies
a. it is an opportunity to public to Ans - a
redress their grievances of banking b. The performance of a salesperson
services b. it is an additional depends on the amount of incentives
grievances settlement mechanism c. paid c. Marketing is influenced by Ram issues a stop payment
it is not substitution of consumer peer performance instructions to his banker to Stop
protection ant. d. A mission statement is part of the payment of a cheque for Rs.20,000.
Company's Prospectus This is
d. all the above.
Ans - d a. A request from Ram
Ans - d b. An intimation from Ram
c. An advice from Ram
The target group of the SME loans is d. A mandate from Ram
.....
The objectives of the banking Ans - d
ombudsman scheme are; a. All businessmen
b. All professionals
a. to promote settlement through A holder for value is .....
conciliation c. All SSIs
b. prompt settlement of customer d. All of the above a. A bank allows one of its clients to
grievances withdraw against clearing of a
c. inexpensive settlement of Ans - c cheque.
grievances. b. A bank which maintains high net
d. all the above. worth customers accounts
Home loans can be best canvassed
Ans - d among ..... c. A bank which collects cheques for
non customers d.A bank which
a. Builders handles high value clearing cheques
b. Flat owners

108
Ans - a d. Endorsement not correct c. Term loan secured by mortgage of
Plant & Machinery d. Bank Term
Ans - c Deposit
Service marketing is the same as .....
Ans – d
a. internet marketing When a cheque is drawn on a bank,
b. telemarketing the bank is called as, the ..... FIMMDA stands for:
c. internal marketing
d. relationship marketing a. Payee a. Foreign Exchange Money Markets
b. Drawee and Derivatives Association of India
Ans - d c. Drawer b. Fixed Income Money Markets and
d. Endorsee Derivatives Association of India

Value-added services does not mean Ans - b c. Foreign Income Money Markets
..... (i) additional services, (ii) costlier and Derivatives Association of India
products, (iii) large d. None of the above
number of products Your bank receives a cheque in
inward clearing which has not been Ans - b
a. Only (i) and (ii) signed by the account holder. Which
one of the following reasons you will
b. Only (i) and (iii) select to return the cheque? Who was the chairman of the
c. Only (ii) and (iii) Committee which recommended the
d. (i), (ii) and (iii) a. Cheque is not signed by the payee setting up of the National Co-
b. Refer to the drawer operative Bank of India?
Ans - c c. Cheque is not signed by the
drawee a. A M Khushro
d. Cheque is not signed by the
Innovation in marketing is same as endorsee b. V Kurien
..... c. B Shivaraman
Ans – b d. None of these
a. motivation
b. perspiration An order cheque is endorsed as Ans – c
c. aspiration "without recourse to me" by the
d. creativity endorser. This endorsement is
known as ..... A bond is normally .....
Ans - d
a. Blank endorsement a. Secured
b. Restrictive endorsement b. Unsecured
In respect of Regional Rural Banks, c. Endorsement in full c. Either a or b
the share holding pattern is: d. None of these d. None of these

a. Central Government 50%,State Ans - d Ans - b

Government 35%,Sponsoring Bank
15% b. Central Government
50%,State Government A stop payment instruction of a SME means ..... (i) Small and
15%,Sponsoring Bank 35% c. cheque can be issued by ..... Medium Enterprises, (ii) Small and
Central Government 15%,State Medium Establishments
Government 35%,Sponsoring Bank a. The payee
50% d. Central Government a. Only (i)
35%,State Government b. The endorsee b. Only (ii)
50%,Sponsoring Bank 15% c. The drawer c. Either (i) or (ii)
d. The drawee d. Both (i) and (ii)
Ans - b
Ans - c Ans - a

A bank in India, wants to undertake Aggressive Marketing is necessitated

capital market activities, it should: During which one of the following due to ..... (i) Globalization, (ii)
periods did Reserve Bank of India increased competition
a. Obtain special license from AMFI play a more aggressive promotional
b. Obtain special license from role for rural India? a. Only (i)
FIMMDA b. Only (ii)
c. Both a and b a. 1982 to 1987 c. Either (i) or (ii)
d. Register with SEBI b. 1969 to 1982 d. Both (i) and (ii)
c. 1960 to 1968
Ans - d d. 1951 to 1959 Ans - b

Ans - b
You receive a cheque in an overdraft Efficient Marketing styles require .....
account for Rs.35,000. The debit
balance in the account is Rs.70,000 Law of limitation is not applicable in a. proper planning
and the OD limit is Rs.1,00,000. respect of : b. good communication skills
What reason you will state while
returning? a. Advance against pledge of shares c. teamwork
b. CC granted against hypothecation d. knowledge of products
a. Refer to drawer of inventory
Ans - d
b. Effects Not cleared
c. Exceeds arrangement

109
Market-driven strategy includes .....
a. identifying problems
b. planning marketing tactics of
peers
c. positioning the organization and its
brands in the market place d. internal
marketing
Ans - c
....
The banking ombudsman may ask
the concerned bank to submit .....
a. information on the complaint.
b. evidences and documents in
support of the reply to the complaint
c. other related document
d. all the above
b. Horizontal diversification
c. Conglomerate diversification
d. None of the above
Ans – a
Using a new brand name for a new
product, either when entering a new
product category or
when it is felt that the existing brand
power is waning is called as .....

Ans - d a. Line extension

b. Brand extension
A call means: c. Multi brands
Interest rate futures were launched in d. New brands
a. after-sales service India in .....
b. profession or business Ans - d
c. visiting friends a. NSE
d. visiting prospective customers b. BSE
c. Both a & b ‘PIN’ in Smart Card is called .....
Ans - d d. None of the above
a. Permanent Index Number
Conversion means: Ans - a
.... b. Personal Identification Number
a. meeting a prospective client c. Personal Index Number
b. interacting with a prospective Normally the amount of auction for d. Permanent Identification Number
client 364-day T-bill is ..... crores
c. converting an employer into an Ans - b
employee a. 4000
d. converting a prospective client into b. 5000
customer c. 6000 The usage of word “ATM” in the
d. 7000 banks denotes .....
Ans - d
Ans - c a. Automatic Teller Machine
Customization is useful for ..... b. Automated Teller Machine
c. Accounts Transacting Machine
a. Designing customer specific As per Indian Stamp Act, which one d. Automated Tallying Machine
product attracts stamp duty?
b. Call centres Ans - b
a. DPN
c. Publicity b. Agreements
d. Motivating the staff c. both a and b Integrative Growth is defined as......
d. Neither a not b
Ans - a a. Identify opportunities for further
Ans - c growth within the existing businesses

The performance of a sales person b. Identify opportunities to build or

mostly depends on ..... Banking defines the acceptance of acquire businesses related to the
deposits should be for the purpose of existing businesses c. Identify
a. salary paid ..... opportunities to add attractive
b. sales incentive paid businesses, unrelated to the existing
c. sizes of the sales team a. lending businesses d. None of the above
d. ability and willingness of the b. investments
salesperson Ans - b
c. lending and investments
Ans - d d. None of these
The sole aim of marketing is to ..... Minimum and maximum number of
(i) increase sales, (ii) increase profits Ans - c share holders in a Private Limited
Co?
a. Only (i)
b. Only (ii) Which one is not a component of a. 2, 50
c. Either (i) or (ii) ATM? b. 5, 50
d. Both (i) and (ii) c. 2, 20
a. Key-pad d. 5, 20
Ans - a b. Cash Dispenser
c. Deposit slot Ans - a
Commercial Banks are permitted to d. None of these ....
borrow to the extent of ..... % of their
capital funds in the Ans - d Rules relating to Common Seal are
call/notice money market. contained in which of the following?

a. 100 a. Certification of Incorporation

b. 125 An audiocassette manufacturer b. Memorandum of Association
c. 150 introduces computer tape
d. 175 manufacture is an example of ..... c. Certificate of Commencement of
Business
Ans - b a. Concentric diversification d. Articles of Association

110
Ans - d ...... requires collection of information During Mortgage, normally parent
.... related to understand customers, documents for ..... years is asked for.
competitors, trends
Bank’s Assets are classified into a. 10 years
standard, substandard, doubtful and and changes in the environment and b. 13 years
loss assets, based on the internal strengths and weaknesses
recommendations of ........ using systematic marketing research c. 20 years
Committee and marketing information systems, d. 30 years
and scientific analysis of the data.
a. Rangarajan Ans - d
b. Narasimham a. Analysis
c. Ghosh b. Planning
d. Tandon c. Implementation Which is a possible approach which
d. Control can be adopted by a firm, when it
Ans – b faces a situation that the expected
.... Ans - a sales and profit do not reach the
desired levels?
Satellite is fitted with transmitters and
receiving antennas called ..... If loan is sanctioned against pledge a. Intensive Growth
of stocks, within how many days b. Integrative Growth
a. Transmiters creation of charge should be filed c. Diversification Growth
b. Transponders with Registrar of companies? d. All the above
c. Receivers
d. Both a & c a. 30 Days Ans - d
b. 45 Days
Ans - b c. 60 Days
d. Registration not required Under PMRY, the project cost for the
B is payee of a cheque, who industry sector is restricted to .....
endorses it to c.C lost the cheque Ans - d
which is found by D, who endorses it a. 2 Lakhs
in favour of A for valuable b. 5 Lakhs
consideration by way of forging C’ Which is not correct with regard to c. 6 Lakhs
signatures. The cheque is Selling? d.10 Lakhs
dishonoured. A can recover from:
a. Focus is on the products Ans - b
a. B b. Marketing is a broader concept
b. C than selling
c. D c. Profit maximises with customer Product strategies are based on .....
d. any of the previous parties satisfaction
d. Profit maximises with increase in a. Product Mix
Ans - c volume b. Product Life Cycle
c. Both a & b
Ans - c d. None of these
Which of the following statement is
not true? Ans - c
A & B are maintaining an ‘E or S’
a. Minor cannot become a partner in account. D has been named as
a Firm but he can be admitted to the nominee. Both A & B die in an Borrowing powers of the Board of
benefits of the partnership with the accident. C, son of A, serves a legal Directors of the company can be
consent of all partners notice thorough his advocate and verified by examining...
objects payment to the nominee D.
b. Minor is not liable personally for What action you will take? a. Memorandum of Association
any debts of the Firm nor his private b. Articles of Association
property can be made liable a. Payment will be made jointly to
legal heirs of A & B b. Payment will c. Certificate of incorporation
c. Minor’s share in the Firm is liable be made to C d. None of the above
for all acts of the Firm
c. Payment to D will be a valid Ans - b
d. Within one month of attaining discharge to Bank’s Liability d.
majority, Minor should by way of Payment to D will be stopped
public notice, elect to become or not Banknet was set up in .....
to become a partner in the Firm Ans - c
a. 1971
Ans - d Intensive Growth is defined as...... b. 1981
.... c. 1991
a. Identify opportunities for further d. 2001
Holidays are declared to the banks growth within the existing businesses
under Ans - c
b. Identify opportunities to build or
a. RBI Act acquire businesses related to the
existing businesses c. Identify
b. Banking Regulation Act opportunities to add attractive Diversification in which the new
c. Negotiable Instrument Act businesses, unrelated to the existing products have technological and/or
d. Indian Contracts Act businesses d. None of the above marketing synergies with existing
product lines, though the target
Ans – c Ans - a groups of customers are entirely
different is called as

111
...... Ans - c days from the date of submission of
all the documents
a. Concentric diversification
b. Horizontal diversification A successful "Blue Ocean" requires Ans – c
c. Conglomerate diversification ..... (i) Effective communication, (ii)
d. None of the above Innovative skills, (iii)
Motivation Apart from Customer needs and
Ans – a wants, Cost to the customer and
a. Only (i) and (ii) Convenience, which is the other one
The clearing house facilities for b. Only (i) and (iii) in 4Cs?
payment and delivery of securities is c. Only (ii) and (iii)
provided by .. d. (i), (ii) and (iii) a. Consumption
b. Communication
a. CCIL Ans - d c. Customer satisfaction
b. SEBI d. Customer demand
c. Stock Exchanges
d. All of the above Which of the following is not an Ans - b
implied power of a partner in a
Ans - c partnership firm?
Marketing ..... the customer
a. To sell/pledge movable goods on requirements. (i) identifies, (ii)
If the company’s sales are slow account of partnership satisfies
down, and profits level off or decline.
At which stage the company has b. To borrow money, contract debts a. Only (i)
reached? etc for the business of the
partnership c. To draw, make or b. Only (ii)
a. Introduction accept negotiable instruments d. To c. Either (i) or (ii)
mortgage partnership immovable d. Both (i) and (ii)
b. Decline property
c. Growth Ans - d
d. Maturity Ans – d

Ans - d The key challenge to market-driven

Generation of sales lead can not be strategy is .....
improved by...... (i) being passive, (ii)
Mark-up pricing is a pricing ..... while being very talkative, a. Selling maximum products
as Geographic pricing is a pricing ..... (iii) engaging recovery agent b. Employing maximum DSAs
c. Delivering superior value to
a. Method, Strategy a. Only (i) and (ii) customers
b. Strategy, method b. Only (i) and (iii) d. Being rigid to changes
c. Process, Policy c. Only (ii) and (iii)
d. Policy, Process d. (i), (ii) and (iii) Ans - c

Ans - a Ans - c
Clearing house facilities are not
provided by ..... for netting of
Home banking is an example of ..... Introduction of additional items in an payments and securities delivery.
existing product category under the (i) primary dealers, (ii) stock
a. Direct marketing same brand name is exchanges, (iii) SEBI
b. Indirect marketing called as .....
c. Branch marketing a. Only (i) and (ii)
d. All the above a. Line extension b. Only (i) and (iii)
b. Brand extension c. Only (ii) and (iii)
Ans - a c. Multi brands d. (i), (ii) and (iii)
d. New brands
Ans – b
'Orient your needs to your sales', is a Ans - a
..... A & B are maintaining an ‘E or S’
account. D has been named as
a. Sales concept A collecting bank gets statutory nominee. Both A & B die in an
b. Marketing concept protection under: accident. Balance in the account will
c. Management concept be payable to .....
d. Production concept a. RBI Act
b. Banking Regulation Act a. Jointly to legal heirs of A & B
Ans - a c. Negotiable Instruments Act b. legal heirs of A alone
d. Indian Contract Act c. Legal heirs of B alone
d. D alone
The sum value of all the values that Ans - c
the consumer exchanges for the Ans - d
benefits of having or using the
product or service is called... Time limit for settlement of claims in
Deceased cases RBI acts as the Banker to the .....
a. Pricing Strategy Governments. (i) Central, (ii) State
a. 30 days from the date of death
b. Sale b. 15 days from the date of death a. Only (i)
c. Price
d. Purchase c. 15 days from the date of b. Only (ii)
submission of all the documents d.30 c. Either (i) or (ii)

112
d. Both (i) and (ii) effective delivery system

Ans - d Which marketing strategy must a. Only (i) and (ii)

interact efficiently with consumer to b. Only (i) and (iii)
establish superior value during c. Only (ii) and (iii)
A decrease in the Bank Rate is likely service period? d. (i), (ii) and (iii)
to lead to a ..... in interest rates of
banks. (i) Decrease, (ii) a. Service marketing mix Ans - d
Increase b. Extended marketing mix
c. Traditional marketing mix
a. Only (i) d. Service profit chain If Digital signals are to be transmitted
b. Only (ii) over long distances then the signals
c. Either (i) or (ii) Ans - c may get .....
d. Neither (i) nor (ii)
a. improved
Ans - a A purchased draft in favour of UPSC b. enhanced
and after some time he approached c. unaffected
the bank for cancellation. The draft d. deteriorated
Bailor-bailee relationship is bears endorsement of the payee
applicable in: also. Ans - d

a. cash deposited with cashier by a. The bank will accept the request
customer The demand curve of Giffen goods is
b. safe deposit locker b. The bank will not accept the .....
c. demand draft issued by bank request because it bears payees
d. keeping articles in safe custody endorsement. Unless he presents a a. downward sloping
with bank letter from payee for release, it b. upward sloping
cannot be cancelled c. The bank will c. horizontal
Ans – d refer the matter to the court d. vertical

d. None of the above Ans - d

Format of cheque is defined in ..... (i)
NI Act, (ii) As per RBI guidelines (iii) Ans - b
As per customs &
practices
Which are the modes of pricing
a. Only (i) and (ii) technique? (i) Elasticity, (ii) Market
b. Only (i) and (iii) skimming, (iii) Market penetration
c. Only (ii) and (iii)
d. (i), (ii) and (iii) a. Only (i) and (ii)
b. Only (i) and (iii)
Ans - c
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
The relationship created when the
bank collects a cheque in clearing is Ans - d
.....
a. holder for value The technology also forces the
banks to adopt or shift from product
b. clearing member and principal based approach to .....
c. agent and principal based approach.
d. collecting bank and holder
a. Prince
Ans – d b. Card
.... c. Employee
d. Customer
Corporate Bonds usually carry a
rating from ..... to ..... Ans - d
The credit facilities (both fund based
and non-fund based) are provided to
finance ..... (i) fixed
assets, (ii) current assets, (iii) non-
business assets
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - a
In order to promote a product
continuous approaching of prospect
consumer is being done,
this is called .....
a. Lead
b. Target group
c. Call
d. Telemarketing
Ans - c

a. A, D Credit operations of banking system

b. AA, DD Under the impact of Information are generally guided by ..... (i)
c. AAA, D Technology, large banks are shifting Directives of RBI, (ii)
d. AAA, DDD their focus away from the Instruction of Govt, (iii) Bank's own
domestic market to the ..... policy
Ans - c
.... a. Rural Area a. Only (i) and (ii)
b. Corporate Sector b. Only (i) and (iii)
Interest rate futures were launched in c. Global Area c. Only (ii) and (iii)
India in year ..... d. Government Deposits
The marginal utility curve is .....
a. 2001 Ans - c
b. 2002 a. Downward sloping
c. 2003 b. Upward sloping
d. 2004 c. Vertical
Information technology has resulted d. Horizontal
Ans – c in ..... (i) improved efficiency, (ii)
.... innovative products , (iii) Ans - a

113

Health is not wealth because it has
no .....
a. Scarcity
b. Utility
c. Marketability
d. None of these
Ans - c
In banking reference, credit risk
refers to .....
a. default of a banker in sanctioning
credit limits to the borrower b. default
of a banker in keeping sufficient cost
at branch level c. default by a
borrower in repayment of banks dues
d. All of the above
Ans - c
Banker can exercise the right of
general lien on .....
a. Valuable articles kept in safe
deposit vault
b. Securities left with the bank
negligently
c. Securities deposited for securing a
loan
d. Securities in the name of other
relatives
Ans - c
MCQ : MODULE E – ETHICS IN
BANKING
...... is a set of values, beliefs, goals,
norms and ways of solving problems
by the members of the
organization. (i) Corporate culture,
(ii) Organizational culture
a. Only (i)
b. Only (ii)
c. Either (i) or (ii)
d. Both (i) and (ii)
Ans - a
Ethics in workplaces can be
managed through the use of ..... (i)
Codes of ethics, (ii) Codes of
conduct, (iii) Roles of ethics
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
Business ethics deals primarily with
.....
a. social responsibility
b. the pricing of products
services
c. moral obligation
d. being unfair to the competition
Ans - c
According to the concept of moral
intensity, a worker is most likely to
behave ethically and
legally when .....
a. a manager observes his or her
behavior closely
b. the worker has intense morals
c. the consequences of the act are
minor
d. the consequences of the act are
substantial
Ans - d
Which one of the following is correct
on Whistleblowing?
Whistleblowers are employees of an
organization that go beyond normal
procedures & loyalty to their
employer and report wrongdoing in
the interest of the public good, (ii)
Whistleblowers are employees that
go beyond, their duties and
expectation in order to highlight
wrong within the organisation
a. Only (i)
b. Only (ii)
c. Either (i) or (ii)
d. Both (i) and (ii)
Ans - a
Which moral philosophy seeks the
greatest good for the greatest
number of people?
a. Consequentialism
b. Utilitarianism
c. Egoism
d. Ethical formalism
Ans - b
Codes of conduct and codes of
ethics .....
a. are formal statements that
describe what an organization
expects of its employees.
b. become necessary only after a
company has been in legal trouble.
c. are designed for top executives
and managers, not regular
employees.
d. rarely become an effective
component of the ethics and
compliance program.
Ans - a
Ethics means ...... (i) Character, (ii)
Manner, (iii) Custom
and a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
Pierre takes a utilitarian view point of
ethics. He will therefore judge a
business decision to be
ethic also long as .....
a. more good than bad results from
the decision
b. everybody is treated fairly
c. certain rights are not violated
d. he has good character and
integrity
Ans - a
The three major types of ethical
issues include except?
(i) a. Communication issues
b. Systematic issues
c. Corporate issues
d. Individual issues
Ans - a
A ..... is a buzz word to employees to
observe ethical norms and forms the
basis for rules of
conduct. (i) Code of ethics, (ii)
Business Ethics
a. Only (i)
b. Only (ii)
c. Either (i) or (ii)
d. Both (i) and (ii)
Ans - a
Small-business owner Anand is
thinking about giving a potential
customer an expense paid vacation
to Las Vegas for her and her
husband. When asked if he is being
ethical, Anand replies, "Look
whatever works, works." Which
ethical principle is Anand most likely
using?
a. focus on the rights of individuals
b. pragmatism
c. utilitarianism (consequences)
d. focus on integrity (virtue
ethics)
Ans - b
Circumstances that leave a person
uncertain but not altogether unsure
about what he or she is
doing is a feature of .....
a. Excusing conditions
b. Moral reasoning
c. Mitigating factors
d. Ignorance
Ans - c
114
Which of the following deals with the
distribution of benefits and burdens, b. Only (i) and (iii) a. Valoir
mostly in the evaluation of social, c. Only (ii) and (iii) b. Valas
political, and economic institutions? d. (i), (ii) and (iii) c. Velois
d. None of these
a. Retributive justice Ans - d
b. Compensatory justice Ans - a

c. Distributive justice Which of the following refers to the

d. Ethical justice reasoning process by which human The purpose of backdating stock
behaviors, institutions, or policies are options is to give the stock-option
Ans - c judged to be in accordance or not holder .....
with moral standards?
a. large payout on his or her birthday
Ethics are important because ..... (i) a. Moral reasoning b. tax-free investment
suppliers prefer to deal with ethical b. Moral duty c. chance to diversify his or her stock
companies, (ii) c. Moral justice portfolio
d. None of the above d. sure profit on the options
customers prefer to deal with ethical
companies, (iii) employees prefer to Ans - a Ans - d
deal with ethical companies
What does and Ethical Foundation
a. Only (i) and (ii) The principle of categorical for an organisation embody? (i) The
b. Only (i) and (iii) imperative is given by ..... structure, operational and conduct of
c. Only (ii) and (iii) the activities of the organisation, (ii)
d. (i), (ii) and (iii) a. James Mill The basic principles which govern
b. Herbert Spencer the external and internal relations of
Ans - d c. Jeremy Bentham the organisation
d. Immanuel Kant
a. Only (i)
Himani is an ethically centered Ans - d b. Only (ii)
production manager. So she will ship c. Either (i) or (ii)
a product ..... d. Both (i) and (ii)
Benefits derived from social
a. only after all its problems have responsibility include ..... (i) Ans - b
been eliminated enhanced organizational efficiency,
(ii)
b. only if the shipping people use producing better products, (iii) The word ‘Ethics’ is derived from
packing material that does not harm attracting people who want to work Greek word ......
the environment c. only after an for the firm
ethics committee has approved it a. Ethios
d. as quickly as she can to meet the a. Only (i) and (ii) b. Ethikos
customer's schedule b. Only (i) and (iii) c. Ethoes
c. Only (ii) and (iii) d. None of these
Ans - a d. (i), (ii) and (iii)
Ans - b
Ans - b

The word ‘moral’ is derived from the According to concept of moral laxity,
Latin word ...... Which one of the following justices workers will often behave unethically
refers to the just imposition of because .....
a. Moralis penalties and punishments?
b. Morilitic a. they have planned to be unethical
c. Monatic a. Distributive b. they come from dysfunctional
d. None of these b. Retributive families
c. Compensatory c. other issues seem more important
Ans - a d. Kantian at the time
d. management pressures them into
Ans - b unethical behavior
...... deals with the right actions of
individuals Ans - c
In which of the following someone
a. Sincerity looks at individual acts to see
b. Rules whether they produce more Which kind of theory Utilitarianism
c. Ethics pleasure, one looks only at moral has?
d. All of these rules at actions of a particular type?
a. Ethical
Ans - c a. Rule utilitarianism b. Conceptual
c. Behavioral
b. Conventional utilitarianism d. None of the above
Which among the following are c. Weighting cost and benefit
advantages of managing business d. None of the above Ans - a
ethics in the workplace? (i) Cultivate
strong team work and productivity, Ans - a ....... would be charged with
(ii) Avoid criminal acts, (iii) Lower implementing and administering an
fines ethical management
The term ‘value’ is derived from the programme
a. Only (i) and (ii) French word .....

115
a. Top management clicking on these sites so he can c. Give swift and sure punishment to
b. Ethics management committee collect commissions from the harassers
c. Middle management advertisers. Abhishek is engaged in d. Train managers at all levels on
d. None of these the scandal referred to as ..... sexual harassment issues

Ans - b a. click fraud Ans - b

b. work-at-home scam

Justice Based on needs and abilities c. cyber squatting A set of characteristics that sets one
is known as ..... d. backdating Websites group of people apart from another is
called as .....
a. Communism Ans - a
a. Culture
b. Capitalism b. Values
c. Socialism What does the importance of ethical c. Ethics
d. None of the above behaviour, integrity and trust call into d. None of these
question?
Ans - b Ans - a
a. What we do next
b. Who does what
Human nature is .....
c. The extent to which managers The main purpose of business ethics
a. Learned should attempt to change the is to?
b. Programmed underlying beliefs and values of
c. Inherited individual followers a. understanding ethical
d. All of these uncertainities
b. principles and concepts
Ans - c d. All of the above c. Application of practices
d. All of the above
Ans - c
An acquired disposition that is a Ans - b
valuable part of a morally good
person,exhibited in the Ethics is a .....
person's habitual behavior is known Ethics of duty – categorical
as ..... a. Pure science imperatives. (i) Universality - I ought
b. Normative Science never to act except in such a way as
a. Moral responsibility c. Inexact Science I can also will that my maxim should
b. Moral ethics d. None of these become a universal law Human
c. Moral virtue Dignity - Act in such a way that you
d. None of the above Ans - b always treat humanity. Never simply
as a means, but always at the same
Ans - c time as an end, (ii) Universality – I
Utilitarianism theories ..... ought to always act in a way that will
Unethical behavior is often triggered allow me to act within the universal
by ..... (i) pressure from higher a. Jeremy Bentham & John Stuart law of Human Dignity – Act in such a
management to achieve Mills way that you never treat humanity’s
b. Jeremy Stuart Mills & John Mills means as an end
goals, (ii) an organizational c. Jeremy Bentham & John Stuart
atmosphere that condones such Smith a. Only (i)
behavior, (iii) a system of checks and d. Jeremy Stuart Mills & John b. Only (ii)
balances Newton c. Either (i) or (ii)
d. Both (i) and (ii)
a. Only (i) and (ii) Ans - a
b. Only (i) and (iii) Ans - a
c. Only (ii) and (iii) Ethics is a ..... (i) Social science, (ii)
d. (i), (ii) and (iii) Science of conduct, (iii) Normative An acquired disposition that is a
Science valuable part of a morally good
Ans - a person, exhibited in the person's
a. Only (i) and (ii) habitual behavior is known as?

Fairness in employment practices b. Only (i) and (iii) a. Moral responsibility

centers on .....
a. hiring no family members or
friends
b. giving people equal rewards for
accomplishing the same tasks c.
obeying equal employment
opportunity legislation d. avoiding
conflicts of interest
Ans - b
Abhishek has his own Website that
carries ads for a dozen retailers. At
night, Abhishek spends hours
c. Only (ii) and (iii) b. Moral ethics
d. (i), (ii) and (iii) c. Moral virtue
d. None of the above
Ans - d
Ans - c
Which one of the following is not
recommended as a method for a The person's reasons for acting must
company to protect itself against be reasons that he or she would be
sexual harassment charges? willing to have all others use, even
as a basis of how they treat him or
a. Develop a zero-tolerance policy on her is known as?
harassment and communicate it to
employees b. Retaliate swiftly a. Reversibility
against employees who bring forth b. Universalizability
charges of harassment c. Rule utilitarianism
d. None of the above

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 b. misuse of corporate resources
Ans - a c. sexual harassment a. Ethical relativism/Non-
d. treating people unfairly relativism

The traits or qualities that are Ans - a b. Cognitivism/Non-cognitivism

considered as valuable are known as c. Consequentialists/Non-
..... consequentialists
Building a sustainable environment d. External/Internal
a. Culture includes ..... (i) developing a green
b. Values supply chain, (ii) Ans - c
c. Ethics omitting hazardous emissions, (iii)
d. All of these writing a code of ethics
Which of the following does the term
Ans - b a. Only (i) and (ii) Corporate Social Responsibility
b. Only (i) and (iii) relate to? (i) Ethical conduct, (ii)
c. Only (ii) and (iii) Environmental practice, (iii) Human
Literally the word ethics stand for ..... d. (i), (ii) and (iii) rights and employee relations

a. Understanding human nature Ans - b a. Only (i) and (ii)

b. Study of morality b. Only (i) and (iii)
c. properties of chemical c. Only (ii) and (iii)
d. substances d. (i), (ii) and (iii)
Define ethical absolutism/cognitivism
Ans - a ..... Ans - d

Which statement reflects the a. Global, strict and absolute rules on

"punishment and obedience
orientation" stage (stage one) of
moral development?
a. I don't steal because my friends
don't steal
b. I don't steal because I don't want
to be spanked
c. I don't steal because it would harm
society as a whole
d. I don't steal because it wouldn't be
fair to everyone else if I did
Ans - b
The kind of care that is owed to
those with whom we have special
concrete relationships is
known as .....
a. Utilitarian standards
b. Standards of justice
c. Standards of caring
d. None of the above
Ans - c
Team leader Gary is scheduled to
prepare a performance of Lisa, a
team member who also
happens to be his wife's closest
friend. The ethical temptation Gary
faces is .....
a. sexual harassment
b. misuse of corporate resources
c. dealing with confidential
information
d. conflict of interest
Ans - d
Neha, the owner of a small
telecommunications firm gives gifts
of stock in her company to telephone
company managers who purchase
her equipment. Kate is giving in to
the ethical temptation of .....
a. kickbacks
right and wrong according to ethical Which one of the following questions
conduct is not asked in six-question ethics
test?
b. Claims morality is context
dependent and subjective, there are a. How does it smell?
no universal right and wrongs that b. Who gets hurt?
can be rationally determined c. What can we possibly get away
c. Right and wrong are objective and with?
determined by the organisation's d. Would you tell your child (or young
culture relative) to do it?
d. Claims there are eternal, Ans - c
universally applicable moral
principles. Right and wrong are Virtue Ethics .....
objective qualities.
a. Assume good businesses will
Ans - d make good decisions
b. Assume good governments will
enforce good ethical practices on
Which of the following stands for their businesses
capitalist Justice? c. Assume good persons will make
good decisions and personal
a. Benefits should be distributed qualities affect decisions
according to the value of the
contribution the individual makes to a d. Assumes good persons will make
society good decisions but it has nothing to
do with personal qualities
b. Benefits should not be distributed
according to the value of the Ans - c
contribution the individual makes to a
society
Intellectual Property (books, music,
c. Benefits should be distributed movies) says ..... is illegal
accrding to employer judgement d.
None of the above a. File sharing
Ans - a b. Copyrighting
c. Botnetting
Circumstances that leave a person d. Googling
uncertain but not altogether unsure
about what he or she is Ans - b
doing is a feature of .....
a. Excusing conditions L. Kohlberg’s (1969) theory of
b. Moral reasoning Cognitive Moral Development .....
c. Mitigating factors
d. Ignorance a. Post-conventional,
conventional, pre-conventional
Ans - c b. Unrealistic, realistic, similar
c. Past, modern, post-modern
The absolutist/cognitive perspective d. Moral, ethical, ethical theories
divides into .....

117
Ans - a ...... specifies methods for reporting
violations, disciplinary action for A(n) ..... is a problem, situation, or
violations and the opportunity requiring an individual,
Which is not a reason a business structure of the due process to be group, or organization
engages in business ethics? followed. (i) Business Ethics, (ii) to choose among several actions
Code of ethics that must be evaluated as right or
a. To recover a company’s image wrong
after a notorious business scandal a. Only (i)
b. Only (ii) a. crisis
b. To avoid the loss of a good c. Either (i) or (ii) b. ethical issue
corporate image or being sued for d. Both (i) and (ii) c. indictment
misconduct c. To enhance global d. fraud
relationships Ans - b
d. To enhance stakeholder Ans - b
relationships
Which of the following is TRUE
Ans - c regarding moral reasoning and its Which one of the following is the
evaluation? right order for three stages of moral
development?
Which isn’t a reason why business a. Moral reasoning does not involve
ethics are important? factual or descriptive judgments b. a. Principled morality, conventional
Ordinary logical standards of validity morality and selfish b. Conventional
a. The power and influence of do not apply to moral reasoning c. morality, Principled morality and
business means it has the potential Special logical standards of validity selfish c. Selfish, Conventional
to inflict harm on society b. do not apply to moral reasoning d. morality and Principled morality d.
Stakeholders increasingly demand Moral reasoning involves normative None of the above
ethical behaviour or value judgments
c. The continued occurrence of Ans - b
ethical infractions shows it’s needed Ans - a Which one of the following moral
d. Ethical companies are more likely judgment approaches will be used
to achieve government funding and where someone has to make a
local funds The ..... dimension of social decision how benefits and burdens
responsibility refers to a business's should be distributed among the
Ans - d societal contribution of time, members of a group?
money, and other resources
a. Utility
What are ethical theories? a. ethical b. Rights
b. philanthropic c. Justice
a. Ethical theories are the conduct c. volunteerism d. Caring
that should be followed in order to d. strategic
have good ethical practices Ans - a
Ans - b .
b. Ethical theories are the rules and
principles that determine right and Socialist view on distribution is best
wrong for any given situation Indian life has ..... fundamental goals described as .....

c. Ethical theories are ancient a. Three a. From each according to his ability,
hypothesis’ on how to create good b. Five to each according to his needs
business practice d. Ethical theories c. Four
give guidelines on how to achieve a d. Two b. The benefits a person receives
good corporate image should be proportional to his
Ans - c contribution c. From each they
Ans - b choose, to each as they are chosen

...... represent an individual’s highest d. Always treat humanity as an end

Utilitarianism suggests that it is priorities and deeply held driving in itself rather than as a means
ethical to make decisions based on forces
..... Ans - a
a. Values
a. Moral virtues b. Principles
b. Common decency c. Culture Which of the following issues are not
c. What is best for most people d. Ethics satisfied by utilitarianism? (i) Justice,
d. None of the given (ii) Right
Ans - a
Ans - c a. Only (i)
b. Only (ii)
Who are organisational c. Either (i) or (ii)
The three major types of ethical stakeholders? (i) Employees, (ii) d. Nither (i) nor (ii)
issues include except? Government, (iii) Customers
Ans - d
a. Communication issues a. Only (i) and (ii)
b. Systematic issues b. Only (i) and (iii)
c. Corporate issues How many stages of moral
d. Individual issues c. Only (ii) and (iii) development proposed by Carol
d. (i), (ii) and (iii) Gilligan?
Ans - a
Ans - d a. Two
b. Three

118
c. Four
d. None of the above a. Culture b. Making the right decisions when
b. Normative science there is a chance to do wrong c.
Ans - a c. Value Defining what is right and wrong for
d. None of these an individual or a community
d. Where individuals have a
...... is the philosophical study of Ans - b conscious choice to make a right and
moral values and rules ethical decision

a. Morality Which of the following choices does Ans - c

b. Ethics NOT describe a situation that is
c. Business Ethics covered by the concept of rights?
d. Philosophy ...... is a code of conduct that an
a. The absence of prohibitions individual or a group has about right
Ans - b against an activity and wrong

b. The authorization to do something a. Morality

What is Ethics to do with? to secure one's interests c. The b. Ethics
necessity of doing something c. Business Ethics
a. Right and wrong required by authority
b. Business d. Personal Ethics
d. The existence of prohibitions on
c. Nothing others to enable individuals to Ans - a
d. The wider community pursue an activity

Ans - a Ans - c The stakeholder view of social

responsibility states that
organizations must respond to the
Consequentialism/Teleological ..... ...... is primarily concerned with the needs of .....
relationship of business goals and
a. Decisions are established based techniques to specifically a. employees and customers
on previous consequences and human ends. (i) Business ethics, (ii) b. shareholders and owners
result from past actions b. Focuses Code of conduct c. all interested parties
on the outcomes/ consequence of d. all those who might sue the
ethical decisions, not on moral a. Only (i) organization
principles c. Focuses on the intrinsic b. Only (ii)
goodness or value of an action c. Either (i) or (ii) Ans - c

d. Consequences of competitor
actions determine your actions
d. Both (i) and (ii) Which one of the following is not a
Ans - b feature of moral standard? (i)
Ans - a Prohibit, (ii) Value, (iii) Condemn

a. Only (i) and (ii)

Which one of the following is a type
of moral standards? (i) Utilitarianism,
(ii) Rights, (iii) Justice
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
Utilitarianism theory .....
a. According to utilitarianism, an
action is morally right if it results in
the greatest amount of good for the
greatest amount of people affected
by the action
b. According to utilitarianism, an
action is morally right if it results in
the most amount of good
possible in the given situation
c. Is if you do a whole lotta good
d. According to utilitarianism, an
action is morally right if it results in
the least amount of negativity
possible
Ans - a
...... seeks to determine norms and
values
Plato’s Virtues ..... b. Only (i) and (iii)
c. Only (ii) and (iii)
a. Wisdom, courage, self-control d. (i), (ii) and (iii)
& justice
b. Confidence, motivation, & Ans - d
control
c. Happiness, goodness & love
d. Wisdom, confidence, What is business ethics?
happiness and justice
a. The study of business situations,
Ans - a activities, and decisions where
issues of right and wrong are
addressed
The ethical dilemma of choosing
between two rights refers to ..... b. Defined as decisions that
organizations make on issues that
a. choosing between the lesser of could be considered right or wrong
two evils c. Ethics that can be applied to an
b. deciding which of two employee organisation’s practises
rights is the most important d. Ethical processes businesses use
in order to achieve a good ethical
c. deciding to offer a bribe or lose out standard
on an important opportunity d.
choosing between the two types of Ans - a
sexual harassment
Ans - a A socially responsible mutual fund
will only purchase stocks in
companies that .....
Define morality ..... a. have a no-smoking policy in place
b. have a culturally diverse
a. What is considered as correct management team
within a society

119
c. hire some job candidates who are
HIV positive
d. have good social performance
Ans - d
c. Either (i) or (ii) The type with which one looks only
d. Both (i) and (ii) at moral rules or actions of a
particular type is known as
Ans - a ...... (i) Rule utilitarianism, (ii)
Utilitarianism

How many essential components of a. Only (i)

A whistle blower is an employee who Moral reasoning are? b. Only (ii)
..... c. Either (i) or (ii)
a. 3 d. Both (i) and (ii)
a. exposes organizational b. 4
wrongdoing c. 2 Ans - a
b. complains a lot to company d. 1
management
c. engages in unethical behavior Ans - b The limited rights and correlative
duties that arise when one person
d. referees disputes with other enters an agreement with
employees ....... is a process that allows people another person is the definition of .....
to make decisions based on their
Ans - a deeper values which will a. Contract
be economically, socially and b. Justice
environmentally sound c. Special obligations
Right action comes to be defined in d. Legal rights
terms of moral principles chosen a. Holistic approach
because of their logical b. Ethics management Ans - a
comprehensiveness,universality, and c. Code of conduct
consistency is known as? d. None of these
Ethics & Law overlap. This is called
a. Interpersonal Concordance Ans - a .....
Orientation Corporate social responsibility has
b. Universal Ethical Principles three components according to a. Yellow area
Orientation professors Basu and Palazzo. b. White area
c. Social Contract Orientation They are ..... c. Black area
d. Law and Order Orientation d. Grey area
a. cognitive, linguistic, and cognitive
Ans - b b. ethical, social, authoritative Ans - d
c. reflective, analytic, corporative
d. conceptual, sensing, assertive
Indian ethos is the outcome of .....
A firm is said to have good corporate Ans - a way of life
social performance when .....
a. Budha
a. stockholders invest in socially Which one of the following ethic sees b. Hindu
responsible causes concrete communities and c. Christian
communal relationships as having a d. Muslim
b. charitable deductions are fundamental value?
automatically deducted from pay Ans - b
without the consent of employees a. The care of ethic
b. Demands of caring The four types of social responsibility
c. the company has not been c. Communitarian ethic include .....
convicted of ethical violations for five d. Socialism
consecutive years d. stakeholders a. legal, philanthropic, economic, and
are satisfied with its level of social Ans - c ethical
responsibility b. ethical, moral, social, and
economic
Ans - d Which one of the following is an c. philanthropic, justice, economic,
alternative to moral principles? and ethical
...... refers to certain norms d. legal, moral, ethical, and economic
governing the conduct of workers a. Virtue Ethics
involved in a work situation b. Logic Ethics Ans - a
c. Real Ethics
a. Team Work d. None of the above
b. Work Ethos Culture is .....
c. Work Group Ans - a
d. Work Management a. Learned
b. Programmed
Ans - b Which of the following is an example
of an area where business ethics c. Inherited
apply? d. All of these
...... are the principles, which govern
and guide business people to a. Conduct of international Ans - c
perform business functions. operations
(i) Business ethics, (ii) Code of b. Nowhere
conduct c. In the personal life of staff Which one of the following
d. None of the above approaches to creating an ethical
a. Only (i) and socially responsible workplace is
Ans - a likely to be the most powerful?
b. Only (ii)

120
a. Passing out buttons with the
statement "Just Say No to Bad
Ethics"
b. Placing posters about ethics
throughout the organization
c. Top management acting as
models of the right behavior
d. Including a statement about ethics
and social responsibility in the
employee handbook
A .....is a written document,
inspirational in contents and specify
clearly what is acceptable or
unacceptable behavior at workplace
and beyond, when the employees
represent their organizations outside.
(i) Business ethics, (ii) Code of
conduct

Ans - c a. Only (i)

b. Only (ii)
c. Either (i) or (ii)
Indian model of management is ..... d. Both (i) and (ii)

a. Value driven holistioc Ans - b

b. Ratopnal holistic
c. Hybrid
d. None of these

Ans - a

A recommended way of minimizing

unethical behavior is for employees
to .....

a. write anonymous notes to ethical

violators
b. immediately report all suspicious
behavior to top management

c. spend part of their vacation

preparing a personal philosophy of
ethics d. confront fellow employees
about ethical deviations

Ans - d

Fundamental theories of Indian

Model include ...... (i) Purushartha
Theory, (ii) Panchakosas
Theory, (iii) Theory of Gunas

a. Only (i) and (ii)

b. Only (i) and (iii)

c. Only (ii) and (iii)
d. (i), (ii) and (iii)

Ans - d

The person's reasons for acting must

be reasons that he or she would be
willing to have all
others use, even as a basis of how
they treat him or her is known as .....

a. Reversibility
b. Universalizability
c. Rule utilitarianism
d. None of the above

Ans - a

Personality is ......

a. Learned
b. Inherited
c. Partially inherited and partially
learned
d. Neither learned nor inherited

Ans – a

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