1. The document discusses various topics related to general banking such as a banker's obligations to customers, know your customer (KYC) objectives, types of cheques, and account opening requirements.
2. It addresses the statutory duties of bankers including honoring customers' cheques and bills, maintaining secrecy of accounts, and exercising lien. It also defines key terms like stale cheques, letter of authority, and standing instructions.
3. The document quizzes readers on regulations such as cash transaction report (CTR) thresholds, required documents for opening accounts for companies, firms, and societies, and record keeping periods for closed accounts. It covers critical issues in banking like money laundering prevention, types of deposits,
1. The document discusses various topics related to general banking such as a banker's obligations to customers, know your customer (KYC) objectives, types of cheques, and account opening requirements.
2. It addresses the statutory duties of bankers including honoring customers' cheques and bills, maintaining secrecy of accounts, and exercising lien. It also defines key terms like stale cheques, letter of authority, and standing instructions.
3. The document quizzes readers on regulations such as cash transaction report (CTR) thresholds, required documents for opening accounts for companies, firms, and societies, and record keeping periods for closed accounts. It covers critical issues in banking like money laundering prevention, types of deposits,
1. The document discusses various topics related to general banking such as a banker's obligations to customers, know your customer (KYC) objectives, types of cheques, and account opening requirements.
2. It addresses the statutory duties of bankers including honoring customers' cheques and bills, maintaining secrecy of accounts, and exercising lien. It also defines key terms like stale cheques, letter of authority, and standing instructions.
3. The document quizzes readers on regulations such as cash transaction report (CTR) thresholds, required documents for opening accounts for companies, firms, and societies, and record keeping periods for closed accounts. It covers critical issues in banking like money laundering prevention, types of deposits,
a). Honour customer’s cheque b). Maintain secrecy of his customer’s account c). Exercise Lien d). Honour customer’s bill 2. Objectives of KYC is a). To ensure appropriate customer identification b). To monitor transactions of suspicious nature c). To ensure that he/she would not deceive the bank d). Only a and b 3. A customer’s letter of instructions, without any stamp, in connection with the operations of his account is known as a). Power of attorney b). Probate c). Letter of Authority d). Mandate 4. In executing the standing instructions, there exists a relationship of a). Debtor and Creditor b). Bailee and Bailor c). Trustee and beneficiary d). Agent and Principal 5. Stop payment instruction of a cheque can be given by a). Any payee of the cheque b). Only drawer of the cheque c). Any endorser of the cheque d). All of the above 6. The paying banker can get protection for a materially altered cheque provided a). The alteration is not apparent b). The alteration is immaterial c). He makes payment in due course d). a and c together 7. A customer has issued a cheque where the date of which is already passed. Such cheque is called a). Stale cheque b). Crossed cheque c). Post-dated cheque d). Ante dated cheque 8. The effect of General crossing is that it gives a direction to the a). Collecting banker b). Holder c). Paying banker d). a and c together 8A. The effect of Account paying crossing is that it gives a direction to the a). Collecting banker c). Paying banker b). Holder d). a and c together 9. CTR is required for which of the following amount in banks: a). 5 Lacs b). 5.50 Lacs c). 7.00 Lacs d). 10.00 Lacs 10. The document drawn by a debtor on the creditor agreing to pay a certain amount of money is called a). Cheque b). Promissory note c). Bill of exchange d). Demand Draft 11. A cheque that is not crossed is called a). Uncrossed cheque b). Order cheque c). Open cheque d). Bearer cheque 12. While opening an account in the name of a company, the most important document to be seen is a). List of employees/directors of the company b). List of promoters/shareholders of the company c). Memorandum and Articles of Association of the Company d). Instructions of the Registrar of Companies 13. How long a bank branch is required to preserve the information of a closed account a). 1 year b). 2 years c). 5 years d). 10 years 14. While opening an account of a partnership firm, which of the following is essentail a). Verification of Partnership deed and partnership letter b). Registration Certificate of Partnership c). Registration Certificate from Cooperative sub-register d). None of the above 15. As per Banking companies ( Amendment Act’ 2013) the maximum number of directors of the bank including independent directors are to be a). 20 including 2 independent directors b). 15 including 2 independent directors c). 20 including 3 independent directors d). 18 including 3 independent directors 16. As regards Contract Act, 1872 which one of the following is not true a). Agreements by persons of idiocy are not void b). An agreement enforceable by law is a contract c). In every contract there should be free consent d). A minor can not be a guarantor
17. Layering under money laundering refers to
a). Disguising the origin of initial deposit through multiple transfers b). Disguising the origin of initial deposit through multiple transactions c). a and b d). None of the above 18. In case of opening an account in the name of society which documents to obtained/verified is a). Copy of Bye Laws b). Certificate given by the local authorities c). Certificate given by the RJSC and Firms d). None of the above 19. Section 85 of Negotiable Instrument Act’ 1881 extends protection to the a). Collecting Banker b). Paying Banker c). Drawer of the cheque d). Both a and b 20. Scheduled banks are to maintain SLR a). 13% of total demand & time liabilities b). 6.5% of total demand & time liabilities c). 19%of total demand & time liabilities d). 19.50% of total demand & time liabilities 21. Lien is a/an --------- of the ceditor to retain possession a). Obligation b). Right c). Interest d). Protection 22. The best suited deposit for a trading company is a). Savings Deposit b). Fixed Deposit c). Current Deposit d). Recurring Deposit 23. The rate of interest payable on various deposits is fixed by a). Head office of each bank b). Bank and Financial Institutions deposits under Ministry of finance c). Association of Bankers Bangladesh d). Bangladesh Bank 24. The most undesirable customer is a). A minor b). An unregistered firm c). A married woman d). An undischarged bankrupt 25. The document which can be used only for making local payment is a). A cheque b). A bankers cheque/PO c). A bill of exchange d). A demand draft 26. Ancillary business of a bank implies non-fund business and the income earned from this source includes income by way of a). Commission b). Interest c). Brokerage d). Both a and c 27. BFIs are guided by a). Financial Institutions Act-1993 b). Companies Act-1994 c). The Banking Companies Act-1991 d). Securities Exchange Commission Act-1993 28. What is the meaning of CAR a). Capital Advance Ratio b). Capital Asset Ratio c). Capital Adequacy Ratio d). Capital and Reserve Ratio 29. For clearing a MICR cheque bank should put a). General Crossing b). Special Crossing c). Either a or b d). None of the above 30. There are ---- parties involved in a guarantee a). 2 b). 3 c). 4 d). None of these 31. Which of the following is not legal tender money? a). Debit Card b). Hundred Taka Currency Note c). Cheque d). Both (a) and (c) 32. Monetary policy deals with- a). Interest rate b). Money supply c). Both (a) and (b) d). None of the above 33. Garnishee order is issued by- a). Policy order b). National Board of Revenue c). Court of Law d). C.I.D 34. Money laundering refers to- a). Concealing or disguising the illicit nature, source, location, ownership or control of the proceeds of crime b). Assisting any person involved in the commission of the predicate offence to evade the legal consequences of such offence c). Smuggling money or property earned through legal or illegal means to a foreign country d). All of these 35. Which of the following person cannot open an account with a bank? a). An adult b). Lunatic c). Solvent d). Minor with guardian 36. One of the directors of a limited company expired and cheques signed by him are presence for payment, should be bank pay these cheques? a). Cannot pay b). Can pay upon other director’s confirmation c). Can pay as a routine d). Payments be stopped by the company 37. Which of the following is the lender’s recourse related law? a). Contract Act, 1872 b). Bank Company Act, 1991 c). Artha Rin Adalat Ain, 2003 d). All of these 38. The Articles of Association of a Limited Company contains- a). Objects of the company b). Internal management of the company c). Both (a) and (b) d). None of the above 39. Banker’s Lien is a/an- a). Hypothecation b). IGPA for mortgage c). Implied pledge d). Bailment of goods 40. Non-Banking Financial Institutions are guided by- a). Financial Institutions Act, 1993 b). Companies Act, 1994 c). The Banking Companies Act, 1991 d). Bangladesh Bank Order, 1972 41. Which of the following create liabilities of a bank? a). Savings deposit b). Fixed deposit c). Current deposit d). All of These 42. Which one is not included in financial crimes? a). Cheque fraud b). Credit card fraud c). Over-invoicing for purchasing an office articles d). Purchase of luxury items 43. When a cheque book is lost by a customer of a bank, which of the following document needs to be executed? a). Guarantee bond, b). Treasury bond, c). Indemnity bond, d). Security bond 44. Deposits recorded by the depositor but not yet recorded by the Bank means- a). Restricted deposit b). Outstanding deposit c). Deposit in transit d). All of these 45. A note which is burnt or having sign of burn partially or wholly is called- a). Altered Note b). Damp Note c). Deformed Note d). Charred Note 46. How many handards are provided by the FATF for AML & CFT? a). 35 b). 40 c). 38 d). 42 47. The relationship between a banker and a customer is: a). That of a debtor and creditor b). That of a creditor and a debtor c). Primarily that of a debtor and a creditor d). A & b together 48. The banker has a lien on: Cheque given for collection Cheque given for safe custody Cheque left by mistake A & b together 49. To constitute a person as a customer: There must be frequency of transactions There must be a dealing of a banking nature There must be some sort of an account There must be a single transaction of any nature 50. When banker customer relationship terminated: Death Insolvency or insanity of a customer Closing of the account either on the initiative of the customer or banker. 51. Types of lien: 2 types: General lien Particular lien 52. Relationship between Banker & Customer: Deposit accounts……………. Debtor and Creditor Advances……………………...Creditor and debtor Safe custody deposit…………Bailee and bailor Collection of a cheque……… Agent and Principal Safe deposit locker…………. Lessor and lessee
53. Contracts by lunatics are
Always void Always valid Always voidable At times voidable 54. The most important feature of a negotiable instrument is Free transfer (A) Transfer free from defects(B) Right to sue A and B together 55. In the case of a negotiable instrument, the following person generally gets a good title Finder of the lost instrument Holder of a stolen instrument Holder in due course Holder of a forged instrument 56. A cheque bearing a date 31st April, 1992 is presented for payment on 5th May 1992. As per the practice The cheque should be dishonoured with the remark “ non-existing date” The cheque is returned with the remark” irregularly drawn”. The cheque is dishonoured with the remark” not valid” The cheque can be honoured. 57. Crossing a cheque without the knowledge of the drawer is a case of Material alteration (A) Immaterial alteration (B) Authorized alteration (C) A and c together 58. The following one is not a material alteration Alteration of crossing Alteration of place of payment Conversion of blank endorsement into full endorsement Alteration of the payee’s name 59. The paying banker can get protection for a materially altered cheque provided The alteration is not apparent (A) The alteration is immaterial (B) He makes payment in due course (C) a and c together 60. A “Not negotiable” crossing is a warning to the Paying banker (A) Collecting banker (B) Holder (C) A and B together 61. The following one is absolutely essential for special crossing Two parallel transverse lines Words “& Co.” Words “Not negotiable” Name of a banker 62. An order cheque can be converted into a bearer cheque by means of Sans recourse endorsement Special endorsement Blank endorsement Sans Frais endorsement 63. Negotiability gives to the transferee………. title of the transferor The same title No title No better title Better title 64. One of the following endorsement is not a valid one Partial endorsement Restrictive Endorsement Facultative endorsement Conditional endorsement 65. The liability of the Guarantor is Primary Co-extensive with that of principal debtor Secondary None of these 66. If a current account is being conducted unsatisfactorily, the banker can Refuse to honour the cheques of that customer (A) Refuse to issue a fresh cheque book (B) Refuse to accept further deposits into that A/c. (C) A and C together 67. The right to set-off is nothing but a Right to sell Right to retain Right to combine Right to appropriate 68. As soon as a banker receives a Garnishee Order absolute, he should Close the A/c of the customer Stop the operation of the A/c Either close or stop the operation of the account depending upon the wording All of the above 69. A collecting banker is given protection only when he collects A crossed cheque An order cheque A bearer cheque A mutilated cheque 70. A collecting banker is given the statutory protection only when he act as A holder A holder for value A holder in due course An agent 71. When garnishee order is issued by the court attaching the account of a customer, the banker is called. Judgement debtor Judgement creditor Garnishee Garnishor 72.When the amount stated in words and figures differ the banker Can honour the amount in figures Can honour the amount in words Can honour the smaller amount Can dishonor it 73. To get statutory protection the paying banker must make Payment to a holder Payment to a holder in due course Payment in due course Payment to a drawee in case of need 74. Which instruction is good for Banker: a) Either or survivor b) Any One Can Operate c) Joint Operation. 75. Types of Endorsement: 5 Nos. i.e Blank, full, partial, restrictive, conditional 76. The followings are the salient features of a Fixed Deposit account, except It is repayable on the expiry of the specified period It is a transferable instrument Length of time is fixed Rate of interest is fixed 77.The Executor is appointed by a will. The certified copy (issued by the Court) of the will is known as - (A) Trust Deed (B) Codicil (C) Will Deed (D). Probate 78.The safest form of crossing is: (A) General Crossing (B) Special Crossing (C) Double Crossing (D) A/C Payee Crossing 79.As per the Bank Company Act, 1991, every banking company incorporated in Bangladesh shall transfer to the reserve fund - (A) At least 20% of current year’s profit before tax (B) At least 5% of demand and time liabilities (C) At least 13% of demand and time liabilities (D) None of the above
80.Payment in due course is the
(A) Payment to the last holder of the cheque (B) Payment according to apparent tenor in good faith and without negligence. (C) Payment according to apparent tenor (D) None of the above 81.The person promising to pay money under a promissory note is known as - A) Drawer B) Maker C) Drawee 82.A person who is legally entitled to the possession of the negotiable instrument in his own name and to receive the amount thereof is known as - A) Holder in due course B) Holder C) Holder for value D) None of these 83.A minor - A) cannot draw a negotiable instrument; B) cannot be a payee of a negotiable instrument; C) cannot be drawee of a negotiable instrument 84.An order instrument can be made payable to the bearer by making A) conditional endorsement; B) full endorsement; C) General endorsement D) None of these 85.The person appointed to operate the account after his death by the deceased himself before his death is called - A. Executor; B. Administrator; C. Attorney D. None of the above 86.A minor cannot - A. accept a bill; B. draw a bill; but minor able to draw, endorse a bill. C. endorse a cheque D. None of the above 87.Laws governing day-to-day transactions of a bank are contained in: A. Negotiable Instrument Act-1881. B. Bank Companies Act-1991. C. N.I. Act.-1881 and Bank Companies Act.-1991. 88. A Bill of Exchange is payable: (A) Only on Demand or at a fixed time. (B) On Demand or at a fixed or determinable future time. (C) Only at a fixed time or determinable future time
89. Who is the “Payee” of Cheque?
(A) The person named in Cheque to whom or to whose order the money is to pay is the "Payee". (B) The Person receiving payment of a cheque is the "Payee". (C) "Payee" of a cheque is the person who presents it before a bank for payment. 90. Fixed Deposit Receipts are: (A) Assignable (B) Negotiable (C) Transferable 91. "Account Payee" crossing signifies that: (A) A banker should collect it for the payee only. (B) A banker must collect it through any account simply. (C) A banker must collect it as a holder for value. 92. Can a stale Cheque be paid? (A) May be paid after confirmation of the drawer. (B)May be paid without confirmation of the drawer but after proper inquiry. (C)Must not be paid under any circumstances. 93. In case of collection of cheques, the collecting banker gets statutory protection for only: (A) Crossed cheques (B) Order cheques (C) All kinds of cheques 94. A collecting banker can collect a cheque either as: (A) Agent or principal (B) Trustee or holder for value (C) Agent or holder for value 95. 'Not negotiable' cheque is: (A) Neither transferable nor negotiable (B) Transferable but not negotiable (C) Transferable but not negotiability is subject to a caution about title 96. When a Locker is given to a customer on hire, what relationship is established between the banker and the customer? (A) Bailer and Bailee (B) Agent and Principal (C) Lessor and lessee 97. Interest on Savings ale is calculated annually on the basis of (A) 360 days (B) 365 days (C) 364 days 98. In Case of Safe custody of valuables, the Banker enters into a relationship with the Customer. In this case the Banker is: (A) Debtor / Trustee. (B) Pledged /Trustee (C) Bailee / Trustee.
99.Post-dated Cheques are not paid by a banker because:
a. Banker may face problems in future b. It does not constitute 'Payment in due course' c. It is the practice of the Banks 100. FDR is: a. Not negotiable b. Negotiable by endorsement and delivery c. Negotiable by delivery 101. Where the banker pays cash before clearing of the cheque, he becomes a. Holder in due course b. Trustee c. Holder for value 102. Statutory protection has been given to the collecting banker a. Only for crossed cheques b. Only for specially crossed cheques c. Both for open and crossed cheque 103. One of the differences between promissory notes and cheques is: a. A promissory note contains a promise to pay and a cheque contains an order to pay b. A promissory note is always payable to bearer and a cheque contains an order to pay c. A promissory note is always crossed and a cheque may be crossed or uncrossed 104. The action of a creditor banker in taking into account sums owing by him to the debtor in order to arrive at the net sum is called: a. Set off b. Assignment c. Lien 105. Crossing of Cheque is: a. A material part of a cheque b. A material alteration of a cheque 106. The Current Bank Rate is: A. 7 % B. 6 % C. 5 % 107. The followings are the salient features of a Fixed Deposit account, except (A) It is repayable on the expiry of the specified period (B) It is a transferable instrument (C) Length of time is fixed (D) Rate of interest is fixed 108. Travellers Cheques are issued by A) Travel Agencies B) Commercial Banks C) Tourist Department of Government of Bangladesh D) None of these 109. When a banker accepts the securities for safe custody, the relationship between a banker and a customer is that of - A) a debtor and a creditor B) Trustee and Beneficiary C) Principal and Agent D) None of these 110. A Traveller’s Cheque is valid for a period of a. Three months from date of issue; b. Six months from date of issue; c. Three years from date of issue; d. Unlimited time 111. When the customer is operating the locker - a. the banker should remain with the customer in the safe room; b. the banker should not remain with the customer in the safe room; c. no other person should be present in the safe room d. None of these 112. A promissory note is a. A conditional promise b. An unconditional promise c. Either a or b 113. Demand Draft is: a. Not a negotiable instruction b. A quasi negotiable instrument c. A negotiable instrument 114. Bill of lading is: a. A negotiable instrument b. Not a negotiable instrument c. Not of the above 115. Payment order is: a. Not a negotiable instrument b. A negotiable instrument, c. Some negotiable instrument 116. A negotiable instrument: a. May be conditional b. Must be unconditional c. All of the above 117. Bill of exchange may be drawn on: a. Bank b. Person or firm c. All of the above 118. Number of negotiable instrument is: a. Three b. Four c. Five 119. A bill of exchange is always payable: a. On demand b. After expiry of certain period, c. Either a or b 120. A cheque dated in advance is known as: a. Anti-dated b. Post dated c. None of the above 121. A cheque after expiry of six months is known as: a. Antidated b. Stale c. Both a and b 122. Who can endorse a cheque: a. Drawer as a holder b. Holder c. Any one of the above 123. A “Not negotiable” crossing is: a. Special crossing b. General crossing c. Both a and b 124. “A/c. payee” crossed cheque is: a. Transferable by endorsement b. Not transferable c. Transferable in case of need 125. A “Not Negotiable” crossed cheque is: a. Not transferable b. Transferable but nobody will be holder in due course c. None of the above 126. A collecting banker will get protection: a. Under section 13 of N.I. Act 1881 b. Under section 31 of N.I. Act 1881 c. Under section 131 of N.I. Act 1881 127. A cheque crossed “A/c. Payee” is a a. Special crossing b. General crossing, c. Either a or b 128. Stamping is required under stamp Act in: a. Promissory note b. Payment order c. All of the above 129. Bank can pay the proceeds of the cheque to: a. Payee b. Holder c. None of the above 130. An order cheque can become bearer by: a. Full endorsement b. Blank endorsement c. Conditional endorsement 131. A Negotiable instrument loses its negotiability by a. Blank endorsement b. Full endorsement, c. Restricted endorsement 132. A cheque crossed “& company” can be transferable only to: a. A company b. Any person or company c. None of the above 133. Order contained in Bill of Exchange should be: a) Conditional b) Unconditional c) Uncertain d) Sufficient 134. A cheque is paid: a) On Demand b) On acceptance 135. Types of Crossing: a) General b) Special c) All of the above 136. Which account does not require any introducer? a) Individual b) Limited Company c) Proprietorship d) Public Limited Company Account 137. Policy of dormant Account: SB- Two Year CD-One Year 138. Which one is called banker’s cheque: Pay Order 139. Validity of Cheques: 6 Months, BB Cheque: 3 Months. 140. A banker is a PRIVILEGED debtor 141. Honoring of a cheque is a STATUTORY obligation, whereas maintenance of secrecy is a CONTRACTUAL obligation. 142. A banker’s lien is always a GENERAL LIEN 143. A banker’s lien is generally described as an IMPLIED PLEDGE 144. Either or Survivor clause protects a banker from unwanted disputes in the case of a joint account.