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1. A Garnishee order does not extend to the following types of deposits

A. Term Deposits maturing after two years B. Credit Balance in Cash Credit Account
C. Current account D. None of these
Your answer is: D. None of these

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2. B gives a cheque for collection to his banker. Bank collects the cheque, but before creditin
the amount to Bs account, the bank fails. Relationship between B and the Bank is
A. Creditor-Debtor B. Principal-Agent
C. Beneficiary -Trustee D. Bailor & Bailee
Your answer is: A. Creditor-Debtor

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3. Garnishee order is issued by a
A. Police officer B. Revenue Officer
C. CID D. Court of Law
Your answer is: D. Court of Law

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4. The relationship between RBI and a Bank maintaining currency chest is of
A. Principal & Agent B. Licensor & Licensee
C. Trustee & Beneficiary D. Bailor & Bailee
Your answer is: A. Principal & Agent

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5. The court case Devayanas Vs Noble is related to-
A. Rule Of Appropriation B. Right To Set Off
C. Right Of Lien D. Right to act as per customers mandate
Your answer is: A. Rule Of Appropriation

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6. An income tax attachment order will effect which of the funds?
A. Time deposits B. Demand deposits
C. Future credit in the a/c D. All of these
Your answer is: D. All of these

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7. BANKING is defined in which Act ?
A. RBI Act B. B.R. Act
C. N.I. Act D. None Of These
Your answer is: B. B.R. Act

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8. The Banker Customer relationship stands terminated upon the
A. Death of customer B. Lunacy of customer
C. Insolvency of Customer D. all of these
Your answer is: D. all of these

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9. A Garnishee Order attaches these deposits-
A. SB B. CA
C. FD including ODFD D. All of these
Your answer is: D. All of these

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10. Which one among these is the most important relationship between banker and
customer
A. Debtor and Creditor B. Bailee and Bailor
C. Agent and Principal D. Trustee and Beneficiary
Your answer is: C. Agent and Principal
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11. A Cash Credit Account has a Credit Balance of Rs 5000/-The relationship between Bank
and Customer in this case is -
A. Creditor & Debtor B. Debtor & Creditor
C. Trustee & Beneficiary D. Principal & Agent
Your answer is: B. Debtor & Creditor

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12. The right to set-off customers account can be exercised only by -----
A. Creditor B. Debtors
C. Banker D. Customer
Your answer is: C. Banker

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13. The primary relationship between a banker and customer starts from the time
A. When customer visits that bank B. When customer opens an account
C. When customer visits that bank to make queries D. All of these
Your answer is: B. When customer opens an account

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14. Which one of these is a Bankers Right
A. Right Of General Lien B. Right of Set Off
C. Right Of Appropriation D. ALL
Your answer is: D. ALL

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15. Garnishee means the--
A. Judgement Creditor B. Judgement Debtor
C. Commercial Banks D. Debtor to the Judgement Debtor
Your answer is: D. Debtor to the Judgement Debtor

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16. A Garnishee Order attaches these accounts-
A. Locker A/c B. Safe Custody A/c
C. Undrawn Balances Of Cash Credit Account D. None Of these
Your answer is: C. Undrawn Balances Of Cash Credit Account

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17. The --------- rule is followed in appropriation of accounts if neither debtor nor creditors
make any specific appropriation
A. Pagest B. Kinlay
C. Sheldon D. Claytons
Your answer is: D. Claytons

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18. The Banker Customer relationship in case of a DEPLO account is-
A. Creditor-Debtor B. Principal-Agent
C. Beneficiary -Trustee D. Debtor-Creditor
Your answer is: A. Creditor-Debtor

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19. A customer keeps certain valuable securities with bank for safe custody . In this case the
bank is---
A. Trustee B. Benificiery
C. Creditor D. Debtor
Your answer is: A. Trustee

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20. Dishonour of cheque by a banker without any justifiable reason is called
A. Valid dishonour of cheques B. Unmindful dishonour of cheques
C. Negligence dishonour of cheques D. Wrongful dishonour of cheques
Your answer is: D. Wrongful dishonour of cheques
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21. An account belonging to an insolvent can be attached by?
A. Garnishee Order B. Income Tax Attachment Order
C. None Of These orders D. Both of these orders
Your answer is: B. Income Tax Attachment Order

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22. After the maturity of term deposit, the relationship between Banker and Customer is
A. Debtor and Creditor B. Trustee & Beneficiary
C. Bailee and Bailor D. Agency and Principal
Your answer is: B. Trustee & Beneficiary

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23. A Bank is called a preferred debtor because-
A. Governments Support for the Banks B. Banks are preferred by depositors
C. Banker is required to pay only when it is demaned D. None Of these
during working hours at the Bank.
Your answer is: C. Banker is required to pay only when it is demaned during working hours at the Bank.

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24. KYC Policy is formulated by
A. RBI B. Central Govt
C. FIU of Govt. Of India D. CBI
Your answer is: A. RBI

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25. Bankers Right to Set Off is available in case of-
A. Garnishee Order B. Income Tax Attachment Order
C. Available in both the cases D. Available in none of the cases
Your answer is: C. Available in both the cases