Prof.

Murtadak B N
New Arts, Commerce and Science College, Ahmednagar

Banking Final Account

1. We should keep our savings with banks because

a) It is safe

b) Earns interest

c) Can be withdrawn anytime

d) All of above

Ans. d

2. Bank does not give loan against

a) Gold Ornaments

b) LIC policy

c) Lottery ticket

d) NSC

Ans.c

3. Bank having maximum number of branches in India

a) Reserve Bank of India

b) State Bank of India

c) Punjab National Bank

d) Bank of Baroda

Ans.b

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 Prof. Murtadak B N
New Arts, Commerce and Science College, Ahmednagar

4. 100/- Rupee note is signed by

a) Prime Minister

b) Finance Minister

c) RBI Governor

d) None of above

Ans.c

5. ATM password should be kept in

a) Personal diary

b) Office diary

c) Memory

d) All of above

Ans. c

6. Who is the present Governor of RBI?

a) K.C. Chakrabarty

b) D K Mittal

c) Raghuram Rajan

d) Shaktikant Das

Ans.c

7. Minimum age required to open SB account in the bank

a) 8 years

b) 10 years

c) 12 years

d) None of above

Ans.b

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 Prof. Murtadak B N
New Arts, Commerce and Science College, Ahmednagar

8. Bank does not provide loans for

a) Crop loans

b) Education loans

c) Home loans

d) Drinking & Gambling

Ans. d

9. KYC means

a) Know your customer

b) Know your character

c) Both of above

d) None of above

Ans.a

10. Loans from money lenders are

a) With High rate of interest

b) No proper accounting

c) No transparency

d) All of above

Ans. d

11. Timely repayment of loans results

a) Good reputation

b) No tension

c) Easily availability of loan in future

d) All of above

Ans. d

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 Prof. Murtadak B N
New Arts, Commerce and Science College, Ahmednagar

12. Defaulter of loan means

a) Not paying loan instalments

b) Bad reputation

c) Illegal activities

d) None of above

Ans. a

13. Life insurance means

a) Insurance of human

b) Insurance of life of human and Cattle

c) Insurance of Life of Machines

d) All of above

Ans. a

14. General Insurance relates to insurance against

a) Fire

b) Theft

c) Burglary

d) All of above

Ans. d

15. PPF means

a) Pension Planning Funds

b) Person having Pension Facilities

c) Public Provident Fund

d) Permanent Practitioner’s Forum

Ans. c

16. PAN means

a) A kind of utensil
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 Prof. Murtadak B N
New Arts, Commerce and Science College, Ahmednagar

b) Primary Account Number

c) Permanent Account Number

d) None of above

Ans. c

17. Bank provides loans for

a) Home

b) Car

c) Education

d) All of above

Ans. d

18. Currency notes are issued by

a) RBI

b) NABARD

c) Public sector banks

d) Central Government

Ans. a

19. Coins are issued by

a) Government of India

b) NABARD

c) Public sector banks

d) State Bank of India

Ans. a

20. Bank Pass Book is

a) Issued by Bank

b) Contains transaction details of Bank account

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 Prof. Murtadak B N
New Arts, Commerce and Science College, Ahmednagar

c) Shows balance in account

d) All of above

Ans. d

21. Banks pays interest on

a) Deposits

b) Loans

c) Both (a) & (b)

d) None of above

Ans. a

22.. Bank charges interest on

a) Deposits

b) Loans

c) Both (a) & (b)

d) None of above

Ans. b

23. Who can open bank account?

a) Indian citizen

b) Non Resident Indian

c) Illiterate

d) All of above

Ans. d

24. PAN number is required for

a) Deposits less than Rs.50,000/-

b) Deposits in excess of Rs.1 lac

c) Deposits Rs.50,000/- & above

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 Prof. Murtadak B N
New Arts, Commerce and Science College, Ahmednagar

d) All transactions

Ans. c

25. TDS means

a) Time Deposit Scheme

b) Total Deposit Scheme

c) Tax Deducted at Source

d) None of above

Ans. c

26. Maximum amount of Cheque

a) Rs.100 crore

b) No limit

c) Rs.1 crore

d) None of above

Ans. b

27. Bank draft is issued by

a) Private Sector Banks

b) Regional Rural Banks

c) Public Sector Banks

d) All of above

Ans. d

28. Payment of cheque can be stopped by

a) Beneficiary

b) Nominee

c) Drawer of cheque

d) All of above

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 Prof. Murtadak B N
New Arts, Commerce and Science College, Ahmednagar

Ans. c

29. Account payee cheques can be paid

a) At cash counter of Bank

b) At ATM

c) By deposit in Bank account

d) None of above

Ans. c

30. In Recurring Deposits,

a) a fixed sum is deposited every month

b) period of deposit is a fixed tenure

c) interest is paid at FDR rate

d) All of above

Ans. d

31. Upon detection of a counterfeit note at the counter, Bank

a) Returns the note to the customer

b) Exchange with a genuine Note

c) Deposit in Account

d) Impound the Note and issue receipt

32. Fixed Deposit can

a) not be withdrawn before maturity

b) paid only after maturity

c) withdrawn before maturity

d) All of above

Ans. c

33. Interest on FDRs is compounded on

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 Prof. Murtadak B N
New Arts, Commerce and Science College, Ahmednagar

a) Monthly basis

b) Quarterly basis

c) Half yearly basis

d) Yearly basis

Ans. b

34. Which type of deposits earns higher interest rate?

a) Current account

b) Savings Account

c) Fixed Deposits

d) None of above

Ans. C

35. An investor purchased on 1-6-11 9% Government of India loan of Rs- 1,00,000 at 102%
Cum interest. Brokerage was paid at 1% on purchase price. Int Dates are 30th June and 31st
December. Then capital value is:

a)99,500

b)95,000

c)93,000

d)99,270

Ans. 99,270

36. Mr. Dinesh had on 1-1-11 10% debentures o Rs. 1,00,000. Out of these he sold
debentures of Rs. 20,000 at 96% Cum interest on 15-4-11. Then he purchased Debentures of
Rs. 40,000 on 15-6-11 at 102% ex interest. Interest is payable on 30th June and 31st
December. He received on 30-6-11 interest as follows:

a)5,000

b)5,500

c)7,000

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 Prof. Murtadak B N
New Arts, Commerce and Science College, Ahmednagar

d)6,000

Ans. 6,000

37. On 1-7-11 Mr. Varun purchased 10% debentures of Rs. 1,50,000 for Rs. 1,60,000. He paid
brokerage at 1% on Purchase price. Interest dates are 30th June and 31st December.

a)1,61,800

b)1,60,000

c)1,61,600

d) non of the above

Ans. 1,61,600

38. On 1-7-10 Het purchased 15% Debentures of Rs. 2,47,500 for Rs. 2,64,000. He paid
brokerage at 1 % on Purchase price. Interest dates are 30th June and 31stDecember.The
capital value will be:

a)2,66,640

b)2,66,460

c)2,68,600

d)2,60,000

Ans. 2,66,640

39. On 31-5-10, 15% government securities of Face Value Rs. 4,00,000 was purchased at Rs.
110 and Rs. 10,000 paid as brokerage. Interest is paid on 30th June and 31st December. Then
the Capital Value wil be:

a)4,22,000

b)4,25,000

c)4,30,000

d)4,28,000

Ans. 4,25,000

40. Interest on security is calculated on :

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 Prof. Murtadak B N
New Arts, Commerce and Science College, Ahmednagar

(a) Its Face Value

(b) Its Market Price

(c) Its Purchase Price

(d) None of the above

Ans. A

41. Capital value in case of Cum-Interest Purchase means:

(a) The total amount paid to broker as purchase price

(b) Purchase price + Brokerage – Interest included

(c) Market Price

(d) None of the above

Ans. B

42. The closing stock of Investment is valued:

(a) Always at purchase price

(b) At cost or market price whichever is less

(c) Always at market price

(d) None of the above

Ans. b

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