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1) Reserve Bank of India’s functions are classified into: a) Supervisory & Regulatory b) Promotional & Developmental c) Refinance Activities d) All of the above 2) Minimum Bank Rate is: a) 3% b) 4% c) 5% d) None (d) (d)
3) Sec ---- of RBI Act,1934 gives sole power to RBI to issue currency notes a) 10 b) 18 c) 22 d) 26 4) KYC means a) Know Your Customer very well b) Know Your existing Customer very well c) Know Your prospective Customer very well d) Satisfy yourselves about the customer’s identity and activities. (d) 5) In a Garnishee Order, the banker on whom garnishee order served is: a) Judgement Debtor’s Creditor b) Judgement Creditor’s Creditor c) Judgement Creditor’s Debtor d) Judgement Debtor’s Debtor (d) (c)
6) Sec 131 of NI Act,1881 extends protection to the a) Paying Banker b) Collecting Banker c) Advising Banker d) Issuing Banker 7) Hypothecation is applicable in the case of a) Movable goods b) Immovable property c) Book debts d) Corporate guarantee 8) A cheque is dated 12/05/05.the due date is: a) 12/08/05 b) 14/09/05 c) 12/11/05 d) None 9) Charge created on LIC Policy is: a) Hypothecation b) Pledge c) Assignment d) Mortgage (c) (d) (a) (b)
10) Your bank grants a working capital finance to ABC & Co, a partnership firm, against hypothecation of inventory. The charge is to be registered with Registrar of Companies within a) 30 days from the date of advance b) 30 days from the date of hypothecation agreement c) 30 days from the date of sanction of loan d) None (d)
11)Which one of the following is not barred by law of limitation?
a) Pledge b) Hypothecation c) Banker’s lien d) Guarantee 12)The term “Credit Management” covers a) Capital adequacy norms b) Risk management including Asset/Liability management c) Credit appraisal – decision and review of loans & advances d) All of the above (d) (c)
13)Bank’s Assets are classified in to standard assets, substandard assets doubtful assets and loss assets, based on the recommendations of -------------------- Committee a) Rangarajan b) Narasimham c) Ghosh d) Tandon (b)
14)The time taken to convert cash into raw materials, semi finished goods, finished goods and into cash , is known as a) b) c) d) Trade cycle Cash cycle Operating cycle Revolving cycle (c)
15)A company which pools money from investors and invests in stocks, bonds, shares is called a) A bank b) An insurance company c) Bancassurance d) Mutual Fund 16)Bancassurance is (d)
a) An insurance scheme to insure bank deposits b) An insurance scheme to insure bank advances c) A composite financial service offering both bank and insurance products d) A bank deposit scheme exclusively for employees of insurance companies (c)
17)John & James are friends aged 14 & 15 respectively. They want to open a joint account in your bank. You will a) b) c) Allow them to open a joint account to be operated jointly Allow them to open a joint account with operating instructions Either Allow them to open a joint account with operating instructions
or Survivor Former or Survivor d) Allow them to open a joint account with operating instructions Any one or Survivor (a)
18)Mr.Atmaram as director of a Ltd company expired. Bank received a cheque signed by Mr.Atmaram as director of the Ltd company. The bank a) b) c) d) Can honour the cheque only after obtaining confirmation from other Can honour the cheque Cannot hounour the cheque The company should issue a stop payment instructions to the bank (b) 19)Tele banking service is based on a) b) c) d) Virtual Banking Online Banking Voice processing Core Banking (c) directors
20) In a securitisation deal, the role of a Special Purpose Vehicle (SPV) is a) To acquire large Non Performing Loans (NPA) b) To acquire such loans from a bank or financial institution c) To acquire such loans for a transfer price, with or without recourse d) To manage the acquired loans for the purpose of realization or holds them as investment till maturity (d)
21)Securitisation is a process of acquiring the loans classified as a) Bookdebts b) Performing debts c) Bad debts d) Non performing debts (d)
22)The minimum percentage of Priority Sector advances to be maintained by foreign banks in India a) 40% b) 18% c) 32% d) 60% (c)
23) Loan for fish rearing is covered under Prirority Sector as ----------advances a) Direct Agriculture b) Indirect Agriculture c) Self Employment Scheme d) Allied to indirect Agriculture (a)
the Mid-Office is responsible for: a) Dealing activities b) Risk Management c) Reconciliation d) Confirmation of deals (b) (c) .24) Cash Budget is a statement of a) Cash-Non cash funds b) Cash receipt and Cash payments c) Another name for cash flow d) None 25) In bank’s parlance credit risk in lending is a) Default of the banker to maintain CRR b) Default of the banker to maintain SLR c) Default of the banker to release credit to the customer d) Default of the customer to repay the loan (d) (b) 26) The apex institution which handles refinance for agriculture and rural development is called: a) RBI b) SIDBI c) NABARD d) SEBI (c) 27) Long Form Audit Report (LFAR) is prepared and submitted by a) RBI inspectors b) Internal inspectors c) Statutory auditors d) Concurrent auditors 28) As per FIMMDA’s guidelines.
1.00. enjoys a CC limit of Rs.10.205.000.00 The CC account shows a credit balance of Rs. The relationship between your bank and XYZ Ltd is: a) Debtor/Creditor b) Creditor/Debtor c) Bailor/Bailee d) Bailee/Bailor (a) . except one : a) Call Money b) Notice Money c) Term Money d) GOI dated securities 30) Which was the first Mutual Fund started in India: a) SBI Mutual Fund b) Kotak Pioneer Mutual Fund c) Indian Bank Mutual Fund d) None of the above 31) The regulator for Mutual Funds in India is: a) FIMMDA b) AMFI c) RBI d) SEBI (d) (d) (d) 32) FIMMDA’s general principles and procedures are applicable to: a) Fixed Income Markets b) Money Markets c) Derivatives Markets d) All of the above (d) 33) Your bank’s customer XYZ Ltd.29) Interest is calculated on actual/365 days basis in respect of the following products.00.
Sponsoring Bank 35% b) Central Government 15%. the share holding pattern is: a) Central Government 50%.Sponsoring Bank 15% (b) 38) Law of limitation is not applicable in respect of : a) Advance against pledge of shares b) CC granted against hypothecation of inventory c) Term loan secured by mortgage of Plant & Machinery d) Bank Term Deposit (d) .State Government 35%.State Government 15%.34) The right of set-off is: a) Customer’s Right b) Customer’s Obligation c) Banker’s Right d) Banker’s Discretion (d) 35)Which of the following forms of business are permissible under BR Act: a) Borrowing b) Issuance of Letters of Credit c) Buying and selling of bullion d) All of the above (d) 36) A Co-Operative Bank operating in different States are regulated by: a) State Co-Operative Societies Act b) Banking Regulation Act c) Multi Unit Co-Operative Societies Act d) Banking Laws (applicable to Co-Operative Societies) (c) 37) In respect of Regional Rural Banks.Sponsoring Bank 50% b) Central Government 35%.State Government 50%.State Government 35%.Sponsoring Bank 15% b) Central Government 50%.
wants to undertake capital market activities. it should: a) Obtain special license from AMFI b) Obtain special license from FIMMDA c) Both a and b d) Register with SEBI 40) FIMMDA stands for: a) Foreign Exchange Markets and Derivative Markets b) Fixed Income Markets Money Markets and Derivatives Markets c) Fixed Income Markets and Derivatives Markets d) None of the above 41) The Capital Adequacy Ratio is : a) 6% b) 8% c) 9% d) 10% (c) (b) (d) 42) Except one of the following others are known as Non Fund based facilities: a) Letters of Credit b) Bank Guarantees c) Co-acceptance of Bills d) Trust Receipt (d) 43) FIMMDA’s guidelines cover the following products.39) A bank in India. except one: a) Call Money b) Cross Currency Interest Rate swaps c) Commercial Paper d) Certificate of Deposit (b) .
sponsored by a nationalized bank d) HDFC Bank (d) 45) A banker is expected to honour the cheques within the specified banking hours as per Section of NI Act.44) Except one of the following others are part of Public Sector Banks: a) State Bank of Hyderabad b) Central Bank of India c) Regional Rural Bank.1881 a) 22 b) 25 c) 31 d) 65 (d) .
investments Rs. The firm sells goods on credit for Rs.500 (d) Rs. current liabilities Rs.600 3.The effect of the transaction is that. If the net worth of the business is Rs.40000 (c) increases by Rs. current assets Rs. the capital will remain same (c) A reduction in the amount of assets will amount to equivalent reduction in the net worth (d) An increase in the amount of liabilities with no corresponding increase in liabilities will increase the amount of capital 4. a statement which speaks about liabilities of an entity. Nil (b) Rs. Select from the following a sentence which is wrong (a) If assets increase and liabilities do not .50000. the cost of the goods sold is Rs.30000. 500.II:1. 1100 (c) Rs. Nil. the capital of the firm----(a) increases by Rs. the capital will increase (b) If assets increase and liabilities also increase by same sum .300.300.500. what is the amount of claim to outsiders? (a) Rs.50000 (b) reduces by Rs. fixed assets are Rs.JAIIB Sample Papers 2012. 20000 . Select from the following . (a) The liabilities consist of claims of the owners (b) The liabilities consist of claims of the owners and outsiders (c) The liabilities consist of claims of the outsiders (d) None of the above 2.
At the end of 31st March. 20000 5. (a) Outstanding expenses .000 and bank balance of Rs. 20.Nominal account (b) Profit and Loss Account (Dr. 17000.000. From the following . Select the wrong pair. 2006 with Capital of Rs.Capital (d) Balance sheet . He did good business during the year and earned handsome profit. (c) In the “Fluctuating Capital Account Method” the balance in the capital account .find a sentence which is false in respect of partnership (a) If the partnership is following the “Fixed Capital Account Method” salary payable to a partner is credited to the partner’s current account (b) Drawings made by partners are never entered in the Profit and Loss Appropriation Account.53000 (d) None of the above 6.(d) reduces by Rs.00.1.Financial position 7. Mr. his financial position was: Fixed Assets Rs.1. balance) – Application of funds (c) Net worth less reserves & surplus .33000 and Creditors Rs.Ghatge commenced his business on 1st April. One of the pairs given below is wrong. 36000 (b) Rs. What was his net profit for the year 05-06? (a) Rs. Choose the sentence which speak about illegal association (a) The unregistered association of 10 persons to do banking business (b) The unregistered association of 50 persons to do non banking business (c) The unregistered association of 20 persons to do business other than banking (d) The unregistered association of 10 persons to do business other than banking 8.70000 (c) Rs. 2007.
The rate of return expected on capital employed of a firm is 10%.00.3.000 c. What is the value of goodwill on the basis of two years purchase of super profits.000. The capital employed in the business is Rs. From the account given below. 18000 to partner . after admission of C would be ----(a) 15:15:10 (b) 20:10:10 (c) 3:1:1 (d) None of the above 12.78.always remains the same (d) The capital account of a partner is required to be opened in both the Fixed Capital Account Method and Fluctuating Capital Account Method 9. Commission to Partners Account 10. they admitted C as a partner with 25% share in the profits of the firm. The average net profits expected are Rs.000 but was to be .6. Hence .00. Rs. Q and Mr. Rs.108000 per annum before charging remuneration of Rs.000 as capital for one fourth share in the future profits.00. a. Partners Salary Account c. Interest on Loan Account d. The book value of the stock was 41. Mr.108.000 b.000 d. They take S into partnership. Drawings Account b.60.1. Rs. It was agreed that S will pay Rs. the new profit sharing ratio . select the account which is wrongly included in Profit & Loss Appropriation Account at the debit side a. A and B are two partners in a firm sharing profits and losses as 2:1. R were partners of a firm sharing profit and losses in the ratio of 3:2.000 as his share of goodwill which will be retained in business and also bring Rs. None of the above 11.
One of the journal entries is wrong. 40. Q feels that one of the entry is wrong. . Rs.50.9.52000 and Creditors A/c Rs. (c) For Profit on revaluation of assets and liabilities – Debit Old Partners Capital Account in old profit sharing ratio and Credit Revaluation Account (d) For decrease in the value of assets -Debit Revaluation Account and Credit Asset Account 14. a partnership firm. Premises A/c Rs. 60000 & R’s Capital by Rs.000 (c) Debit Goodwill for Rs. A’s Capital A/c.15000.000 13. C. (a) For increase in the value of assets-Debit Asset Account and Credit Revaluation Account.20. Accountant has interpreted the Revaluation Account as follows. observations.00.25000.000. occurrences are called ----(a) data (b) record (c) file (d) system 15. a revaluation of assets and liabilities was done and Revaluation account was prepared which showed the following position: At the credit side of Revaluation Account. Rs. Accountant has passed following entries.1.1. Select the incorrect sentence.revalued at Rs. (b) For decrease in the value of liabilities. In the books of ABC Enterprises. choose the entry which is wrong.Debit Liabilities Account and Credit Revaluation Account. (a) Debit cash and credit Goodwill for Rs.20000 were shown. 8000 were shown while at debit side of Revaluation Account Reserve for Doubtful Debts A/c.Rs. when Mr.000 and credit Q’s Capital by Rs.00. but Mr. a partner decided to resign from the firm. One of the interpretations by him is incorrect.000 and C’s Capital A/c.000 (d) Debit Stock and credit Profit & Loss Adjustment A/c by Rs. Any facts.20000.000 (b) Debit cash and credit S’s Capital for Rs.3. Stock A/c Rs. Rs. Read the following four journal entries which are passed to consider revaluation of assets and liabilities at the time of admission of a partner. B’s Capital A/c. Select the wrong entry from the following.00.
(a) A member of a company can enter into contract with a company (b) It is compulsory to register a joint stock company (c) If all but one member of a private company becomes insolvent . partners share profit and loss in proportion to the capital contributed by the partners. 15.000 is made for doubtful debts 16. 25000 (b) Creditors are revised upwardly by Rs. arrears of preference dividend are cleared first (d) The Act prohibits the issue of any preference shares which are irredeemable 19. Select the incorrect sentence (a) Whenever.(a) Stock is revalued upwardly by Rs. Select the incorrect statement in respect of companies.8000 (c) Premises are revised upwardly by Rs. 17. Select the incorrect statement .it affects the existence of the organisation (d) Shareholders are not liable for the acts of the company 18. there is no profit or inadequate profit.52000 (d) A provision on debtors of Rs. dividend cannot be declared (b) The right to claim dividend lapses when there is no profit in case of cumulative preference shares (c) When the company makes profit . Select the True statement from the following (a) Interest on drawing is an income to the partnership firm (b) Joint Venture is a permanent partnership firm (c) Goodwill is a tangible asset of the firm (d) In the absence of partnership agreement .
called up capital and paid up capital cannot be same (d) The amount which the company has asked its shareholders to pay is called up capital of the company. (a) Debit bank account and credit share application account ( when application money is received) (b) Debit share application account and credit share capital account (application transferred to share capital account) (c) Debit share capital and credit share allotment account ( for recording allotment money being fallen due ) (d) Debit bank account and credit share allotment account ( for receipt of allotment money) 21.(a) Authorized capital is the capital with which the company is registered (b) Issued capital is equal to its authorized capital (c) Authorized capital. Select the wrong entry. Select the incorrect statement in respect of calls in advance (a) The company may accept from shareholders . issued capital. Select the incorrect statement in respect of utilization of share premium (a) it is used for the purpose of buy back of shares (b) it used for payment of dividend in case of inadequacy of profits (c) it is used for writing off preliminary expenses . One of the entries is wrong. Following are the journal during the process of application to allotment stage . 20. subscribed capital. the uncalled amount on shares even before it is fallen due (b) The article of association must permit such acceptance of advance call money (c) Interest on calls in advance can be paid but the maximum is upto 6% (d) The amount of calls in advance is part of the paid up share capital 22.
issued shares of Rs.500 (c) Credit share capital by Rs. The accounts and the amount with which the account is debited are given below in sets.10 each at 10 % premium.2. When the entry recording the re-issue of shares was passed in all.2 and on final call Rs.900 (b) Debit forfeited shares by Rs.3 (including premium). on first call Rs.200 25. General Reserve Rs.100 each fully paid up)Share premium Rs.25 Lakh ( 25. X was issued 100 shares of Rs.10 each.. Select the same. 15 Lakh and Profit & Loss account Rs.100 (d) Credit Share first call Account by Rs. 15 Lakh . 3 Lakh. Select the source which is not valid for issue of bonus shares (a) Share premium (b) Revaluation reserve created by revaluation of fixed assets (c) Capital reserve (d) Capital redemption reserve 26.200 (b) Credit Share allotment Account by Rs. Y at Rs. on allotment Rs.000 shares of Rs.It was decided to use minimum free reserve for issue of 1:1 bonus shares. four accounts were affected. (a) Credit Forfeited shares Account by Rs.4. At this stage. One of the shareholders. 5 per share. One of the accounts is given wrong effect.(d) it is used for issue of fully paid bonus shares 23. He failed to pay call money of Rs. The liability side of the balance sheet of ABC International Ltd. One of the set is correct. (a) Debit bank account by Rs. DT Ltd. Mr.400 24. applied for 100 shares but fail to pay allotment and first call money. The shares were forfeited and re-issued to Mr.9. the said shares were forfeited.5 Lakh.1000 (d) Credit forfeited shares by Rs. Select that account from the following. Capital Reserve Rs. . payable on application Rs. Select the account which was wrongly credited. The debit and credit effect of these four accounts is given below.200 (c) Credit share premium Account by Rs. is showing following position: Paid up share capital Rs.
General Reserve Account (10 Lakh) & Profit & Loss Account by Rs. General Reserve Account (15 Lakh) & Profit & Loss Account by Rs. Select the incorrect statement in respect of form of balance sheet of companies(Liabilities side). 4 Lakh (b) Share Premium Account (Rs. the following order is maintained: Authorised capital. Nil Lakh). 1 Lakh). General Reserve Account (4 Lakh) & Profit & Loss Account by Rs. issued capital.5 Lakh). 29. (a) sinking fund is shown under unsecured loans (b) Loans and Advances from banks are grouped under the head Secured Loans (c) Unclaimed Dividend is grouped under the head current liabilities (d) Proposed dividend is grouped under provisions. Select the incorrect statement in case of Share Capital and Reserves and Surplus as shown in the balance sheet. 1 Lakh). 3 Lakh). Select the incorrect statement in respect of form of balance sheet of companies ( Asset side). General Reserve Account (15 Lakh) & Profit & Loss Account by Rs. 15 Lakh (c) Share Premium Account (Rs.5 Lakh).(a) Share Premium Account (Rs. Capital Reserve Account ( Rs. subscribed capital (b) The called up amount per share is indicated and in the amount column total amount i. Nil Lakh).5 Lakh). Capital Reserve Account ( Rs. number of shares multiplied by amount called up per share is shown (c) The amount of unpaid calls is deducted from (b) above (d) The amount of forfeited shares account is shown under Reserves & surplus 28. 15 Lakh 27. (a) Live Stock is grouped under the head ‘current Asset’ (b) Balance of unutilized monies raised by issue is grouped under the head ‘Investments’ (c) Interest paid out of capital during construction is grouped under the head . (a) Under share capital. Capital Reserve Account ( Rs. 2 Lakh (d) Share Premium Account (Rs.e. Capital Reserve Account ( Rs.
Select the false statement in respect of assets (a) a banking company is allowed to acquire assets for its own use (b) a banking company is allowed to grant loans against the security of assets belonging to its customers . each balance sheet subsequent to such reduction or revaluation must show the reduced figures and date of reduction for a period of ----(a) 1 year thereafter (b) 2 years thereafter (c) 3 years thereafter (d) 5 year thereafter 31. Name the wrong account debited (a) Interim dividend (b) Proposed dividend (c) Provision for tax (d) Capital redemption reserve 33.debentures or bonds (c) Immovable properties (d) Interest accrued on investments 32. One of the accounts is wrongly grouped under the head “Investments” while preparing the balance sheet of the company.‘Miscellaneous Expenditure’ (d) Vehicles are grouped under the head ‘Fixed Asset’ 30. Single out the wrong account. In case any sum has been written off on a reduction of capital or revaluation of assets. (a) Investments in government or trust securities (b) Investments in shares . One of the accounts is wrongly debited to “Profit and Loss Appropriation A/c” of a company.
1949 (d) Form A gives format of a balance sheet and form “B” gives the format of a profit and loss account 36.-respectively . None of the above 35. Fixed Assets and other Assets are part of Schedule Nos. Select the incorrect statement in respect of “ financial Statements of Banks” (a) a banking company is not required to prepare financial statements in accordance with Schedule VI of the Companies Act . 15% c. 1956.of their disclosed profit after adjustment/provision towards bonus to staff a. The scheduled banks are required by RBI to transfer at least -----. Investments. Advances. (b) The Act prescribes special forms of balance sheet and profit and loss account for the preparation of its final accounts (c) These are set out in form A and form B of the first schedule to the Banking regulation Act. 20% b. The financial statement of bank consists of ------.(c) a banking company is allowed to take possession of such assets in case of default committed by the borrower (d) a banking company is not allowed to sale the assets against the security of which it has granted loans 34.schedules (a) 18 Schedules (b) 16 Schedules (c) 17 Schedules (d) Schedules 37. 10% d.
8.12 38.9. Liability for partially paid investments in respect of banking companies is grouped under the head----(a) Investments (b) Other assets (c) Other liabilities and provisions (d) Contingent liabilities 39. 9. Select this item from the following (a) Income on Investments (b) Profit on sale of investments (c) Profit on revaluation of investments (d) Profit on exchange transactions 40.11 d.8.10.9 b.11.a.10. 6. Advances given to a staff by a bank as a employer should be included in----(a) other assets . matured term deposit to be shown under----(a) demand deposits (b) saving bank deposits (c) term deposits (d) other liabilities and provisions 41.8.9. One of the items is a misfit in a group namely ‘other income’ of a banking company.7. In banking company.10 c. 7.
(b) advances (c) investments (d) none of the above 42. Identify that item of expense. (a) depreciation on motor cars (b) depreciation on stationary and stamps (c) depreciation on furniture (d) depreciation on non-banking assets 43. One of the expenses is wrongly included. (a) 25% (b) 75% . Some of the items included under this category are listed below.Depreciation on bank’s property is part of “Operating Expenses”. Select the correct statement in respect of doubtful debts (a) Which has remained NPA for a period not exceeding 18 months? (b) Which has remained NPA for a period exceeding 18 months (c) Which is considered uncollectible by bank/ internal auditor or RBI Inspection (d) None of the above 44.40%(revised) of total outstanding (b) 10%(revised) of total outstanding (c) 40%(revised) of total outstanding (d) 100%(revised) of total outstanding 45. The provisional requirement for standard asset is----(a) 0. The investment under “held to maturity” should not exceed -----of bank’s total investment. 87.
(c) 5% (d) None of the above 46. Acceptances. Select the false statement in respect of banking (a) A company accepting deposits for the purpose of lending or investment is a banking company (b) A manufacturing company accepting deposits from the public and some portion of it is lending to its employees as home loans is a banking company (c) A company besides accepting deposits and lending is dealing in goods in connection with the realisation of a security is a banking company (d) A company besides accepting deposits and lending is in the business of collections or negotiating bills of exchange is a banking company. 49. The list given below provides the close relationship between the items of each pair. One of the pairs has no such close relationship. Identify the security which is SLR security (a) Securities issued by local authorities (b) Shares (c) Bonds (d) subsidiaries 47. (a) Banking company – trustees and executors . The list given below consists of various securities. Identify this pair. endorsements and guarantees are shown as----(a) other assets (b) contingent liabilities (c) advances (d) other liabilities and provisions 48.
The information given in the pair is pertaining to banking companies (a) Reserves & surplus .Profit and Loss Account (c) Ledger book .Refinance from NABARD (d) Other Liabilities & Provisions .(b) Form B .Inter office/branch adjustments(net) .Schedule 5 50.Matured time deposits (c) Borrowings in India . Choose the wrong pair from the following.Letter of credit register (d) Other liabilities and provisions .Share premium (b) Time deposits .
1 01 Which of the following better explains the meaning of risk : a loss arising on happening of some event b loss arising on non-happening of some event c probability of loss that could arise due to uncertainty d probability of risk that could arise due to uncertainty e risk due to loss as a result of uncertainty 02 Risk that could arise due to legal actions or uncertainty of interpretations of contracts and agreements is called: a counter-party risk b contract risk c country risk d uncertainty risk e legal risk 03 Risk on account of uncertainty about availability of cash when required or cash in excess of requirement: a counterparty risk b legal risk c credit risk d liquidity risk e settlement risk 04 Risk that is associated with inability/failure of banks in payment of amount representing clearing cheques presented by different banks: a liquidity risk b settlement risk c credit risk d legal risk e clearing process risk 05 Risk that is associated with failure of internal processes of a bank or business organization: a settlement risk b procedural risk c operational risk d credit risk e none of the above 06 A part of credit exposure of a bank that will not be recovered in the event of default on a specified obligation is called: a credit risk b loss given default c credit loss risk d counterparty default e credit exposure risk 07 Debt financing that can magnify the risk and reward for an investment is called: a leverage .Multi-option Question Bank Set .
securities or other investments is called: a trading risk b investment risk c liquidity risk d market risk e credit risk 09 Exposure to uncertainty in economic value of an investment that could not be marked to market is called: a trading risk b business risk c market risk d liquidity risk e investment risk 10 The risk that may arise due to failure of a counterparty to perform an obligation: a counterparty risk b credit risk c market risk d performance risk e market risk JAIIB BASED QUESTIONS (Que No. directions relating to which aspect of banking. can be issued by RBI to banks: a directions relating to deposits b directions relating to export credit c directions relating to priority sector d directions relating to advances e directions on general aspects of banking 13 The term ‘unclaimed deposit’ stands for which of the following: a deposits where the depositor has expired and not claimed b deposit where the legal heirs have claimed the deposit after death of the depositor c deposit which have not been operated for a long time d deposits not operated for 10 years e all the above 14 Which of the following actions are required to be taken by the bank in connection with unclaimed deposits: a annual return is required to be submitted to RBI b annual return is to be prepared as on Dec 31 for submission to RBI c annual return is to be submitted within 30 days of end of each calendar year d a to c all e a and c .11 to 52 are part of our Correspondence Course for JAIIB) REGULATION OF BANKING BUSINESS 11 RBI can issue direction to banks under which of the following provisions: a Section 21 of B R Act b Section 35A of B R Act c Section 22 of RBI Act d a and b e a to c all 12 Under Section 21.b reward risk c derivative d investment risk e loss given default 08 The risk that a bank faces on account of trading in govt.
from the Reserve Fund and Share Premium account is required to be reported to ___ within ____ days: a ROC. e none of the above 21 When Central Govt. profits. for which of the following aspects: a purpose of the advance b margin to be maintained c maximum amount of advance d rate of interest e all the above 16 What kind of restriction is imposed by RBI u/s 20 of B R Act on the banks: a banks should fix margins on advances as per RBI directives b rate of interest can be fixed by banks as per their discretion c maximum and minimum period of deposits should be as per RBI directives d banks cannot grant advances on the security of their own shares e all the above 17 The Usurious Loans Act prohibits : a loans without obtaining security b loans by obtaining extra-ordinary security c loans at exorbitant rates of interest d loans with high margin percent e none of the above 18 Protection to a bank from scrutiny by courts is available u/s 21A of B R Act relating to interest rate being excessive: a if interest is as per RBI directives b if interest is not exorbitant c if interest is at bank rate d if interest rate is linked to bank rate e none of the above 19 To build Statutory Reserver. profits before tax c 25%. can exempt a bank from transferring its profits to reserve fund on RBI recommendations: a when reserve fund is adequate to meet capital adequacy b when capital adequacy ratio is above the minimum required c when reserve fund and share premium balance is not less than paid up capital d when reserve fund is equal to paid up capital e none of the above 22 Appropriation. on RBI recommendation allows such exemption d when Central Govt.15 Directions on loans and advances are issued by RBI u/s 21 of B R Act. of its allows such exemption. u/s 17(1) of B R Act a 20%. b 20%. if any. banks have to transfer ____% out of ____ to a reserve fund. 21 days . profits before dividend e none of the above 20 When does the requirement of transfer to reserve fund u/s 17 (1) as above is not there: a when it is waived by RBI b when bank makes such request and RBI agrees c when Central Govt. profits before dividend d 20%. 30 days b Company Law Board.
25% e none of the above 24 To be a scheduled bank.c Central Govt. 3% d 24. d a company incorporated outside India under Foreign Law e any of the above 25 To be a scheduled bank. 21 days 23 Non-scheduled banks have to maintain cash reserve u/s ___ of Banking Regulation Act at ___ % of demand and time liabilities: a 18. a bank has to be one of the following: a state cooperative bank. 5% b 42. 21 days e RBI. 3% c 18.2 lac c Rs. the return relating to CRR is to be submitted: a as on close of next day b as on close of the preceding business day c as at close of the preceding working day d on the previous working day e not required to be submitted 28 What penalty can be imposed by RBI on non-compliance with requirement of cash reserve ratio: a 3% b 3% above bank rate during the 1st fortnight c 5% above bank rate during the 2nd fortnight d b and c e none of the above 29 If default in CRR still continues beyond first two fortnights.10 lac e Rs. manager or secretary can be fined c director can be removed d all the above e none of the above 30 What return is required to be furnished to RBI for SLR purpose: a A monthly return to be submitted within 15 days b A monthly return to be submitted within 7 days from close of the month c A monthly return to be submitted within 20 days from end of the month to which it relates d A monthly return to be furnished by close of the next month .20 lac 26 What is true with regard to return to be submitted to RBI for cash reserve ratio: a return gives details of demand and time liabilities b return is as at the close of business on each alternate Friday c return is to be submitted not later than 7 days after date to which it relates d RBI can permit submission of the return on a monthly basis to be submitted within 20 days in case of difficulty with geographical position of the bank and branches e all the above 27 If the relevant Friday on which the return is to be submitted is a holiday as per NI Act.5 lac d Rs. 30 days d SEBI.1 lac b Rs. what is the minimum paid-up capital and reserves requirement of a bank: a Rs. b company defined u/s 3 of Companies Act c an institution notified by Central Govt. what is the penalty: a director. manager or secretary can be imprisoned b director.
the preceding working day would be deemed to the relevant day d Quarter for the above purpose is of 3 months e all the above 34 Cash reserve of 3% of demand and time liabilities u/s 18 of B R Act is required to be maintained by: a cooperative banks b scheduled commercial banks c financial institutions d non-scheduled banks e all the above 35 Which of the following is not a correct statement: a Only scheduled banks are to maintain cash reserve u/s 42 of RBI Act b Non-scheduled banks are to maintain cash reserve u/s 18 of B R Act c Additional cash reserve can be prescribed to be kept by Central Govt.e none of the above 31 SLR is to be maintained as at: a close of each month b close of each fortnight c close of each week d close of each business day e none of the above 32 What penalty can be imposed by RBI on non-compliance with requirement of SLR ratio: a 3% b 3% above bank rate during the 1st fortnight c 5% above bank rate during the 2nd fortnight d b and c e none of the above 33 What is the requirement u/s 25 of B R Act. to be fulfilled by banks in India: a Banks are to maintain 75% of the demand and time liabilities as assets in India. may notify c as on last working day of the year or the period d a to c e a and b 37 Balance sheet and profit and loss account are prepared by a bank as per: a 3rd Schedule of RBI Act b 2nd Schedule of RBI Act c Schedule VI of Companies Act d 3rd Schedule of B R Act e none of the above 38 Banks are required to publish their balance sheets in ______ : . d Interest is required to paid by RBI on cash balances maintained with it u/s 24 of B R Act e Banking companies are required to maintain reserve fund u/s 17 of B R Act RETURNS. INSPECTION AND WINDING UP 36 As per Section 29 of B R Act. b These assets would be there as on last Friday of each quarter c If such Friday is holiday. the balance sheet and profit and loss account is required to be prepared by a banking company as on: a end of each calendar year b expiry of 12 month period ending with any other date which Central Govt.
What option is not correct: a paid cheques cannot be returned at all. b paid cheques can be returned by keeping copy of the instrument c customer has to follow the preservation rules of Section 45Y of BR Act d authority to return the paid instruments is available to banks u/s 45Z of B R Act e none of the above. 6 months c 3. also c a copy of inspection report is required to be given to bank . 6 months e none of the above 40 Each bank has to get its balance sheet audited from qualified auditors appointed by: a Central Govt. reappointment or removal of auditors by a banks: a Central Govt. 3 months d 3.a in a news paper in circulation at place of principal office of the banking company b in two news paper in circulation at place of principal office of the banking company c in a news paper and magazine in circulation at place of principal office of the banking company d on website of the bank concerned e none of the above 39 Banks are to furnish to RBI ___ copies of balance sheet within ___ months from end of the period to which they relate: a 2. b RBI c Institute of Chartered Accountants of India d Bank Board e b and c 41 Approval of which of the following authority is required for appointment. 45 Section 35 of B R Act concerns with which of the following aspects: a return of paid instruments b issue of directions in public interest c audit of accounts of banks d inspection of banks by RBI e issued of directions on loans and advances 46 Which of the following is correct with regard to inspection of banks by RBI: a inspection can be carried by RBI u/s 35 of B R Act b inspection can be ordered by Central Govt. b RBI c Institute of Chartered Accountants of India d SEBI e b and c 42 Which of the following is not true in connection with special audit of banks: a special audit can be ordered by RBI and SEBI b special audit can be ordered in public interest c special audit can be ordered to safeguard interest of depositors d special audit can relate to any transaction or a class of transactions e special audit can be by the same auditor or another auditor 43 Which of the following is not true with regard to preservation of records by banks: a rules for preservation are framed under section 45Y BR Act b rules are framed by Reserve Bank c rules specify the period of preservation books. accounts and other documents d rules specify the period of preservation of different instruments e RBI can order longer period for preservation of any record than the prescribed u/s 45Y 44 A customer demands return of certain cheques issued by him and paid by the bank. 3 months b 2.
if Central govt. Set . doubtful accounts and loss accounts c the scheme is available for doubtful accounts and loss accounts . can prohibit a bank from acceptance of fresh deposit. decides to take stern action such as prohibition of acceptance of fresh deposits. kindly refer to December 2005 issue of Banking Events Update. c Board for Financial Supervision of RBI d he himself is authorized e a and c 48 On the basis of inspection report of a bank. without Central govt. permission c banks are to furnish three copies of balance sheet to RBI d It is mandatory to give copy of scrutiny report to the bank by RBI e Board for Financial Supervision is set up u/s 58 of RBI Act For solution to this quiz. due to which of the following: a if RBI carries inspection and finds that deposits are not insured by DICGC b if RBI carries scrutiny of the bank and finds that there are complaints from depositors c if bank is incurring losses d if bank not complying with requirement of RBI Act e if business is being conducted to the detriment of interest of depositors 52 Which of the following is not a correct statements: a annual accounts of foreign banks relate to their business in India. b RBI can order special audit of a bank.2 01 Which among the following is correct with regard to RBI scheme for one-time settlement for small and medium enterprises RBI’s OTS for SMEs) : a the scheme is available both for standard loan accounts and substandard accounts b the scheme is available for sub-standard. what it is required to do: a give opportunity to the bank b decision of prohibition can be deferred c can impose additional terms and conditions d can publish the report e all the above 49 Who among the following are not the members of Board for Financial Supervision: a Governor RBI b Dy.d inspection team can require the bank to furnish any statement or information e all the above 47 In order to verify some fact. Whose permission is required: a RBI b Central Govt. governors c 4 directors from Central Board of RBI d 2 directors from Local Boards of RBI e none of the above 50 What is the quorum for meeting of Board for Financial Supervision: a of 3 members one of which should be chairman or vice-chairman b of 4 members including Chairman c of 3 members d of 2 members if they are chairman and vice chairman e none of the above 51 Central Govt. the inspecting official wants to examine a senior officer of a bank on oath.
07 Under Debt-Restructuring mechanism for SME. which of the following kinds of loans are not eligible: a all non-corporate SME irrespective of amount of bank dues b all corporate SMEs dealing with one bank irrespective of amount of bank dues. 2004: a 100% of o/s balance in the a/cs on the date of categorisation as doubtful NPAs b 100% of o/s balance in the a/cs on the date of categorisation as doubtful NPAs plus the interest at simple rate. d a and c e b and c . 2004. 02 Banks can not entertain which of the following kinds of loan accounts under the RBI’s OTS for SMEs: a cases where action has already been initiated under SARFAESI Act 2002 b cases that are pending with DRT c cases that are pending with BIFR d cases that are pending with a court e none of the above 03 The last date for receipt of applications under RBI’s OTS for SMEs is : a Sept 30. 2006 d Mar 31. 2004 till the date of final payment. which became doubtful subsequently: a 100% of o/s balance in the a/cs on the date of categorisation as doubtful NPAs b 100% of o/s balance in the a/cs on the date of categorisation as doubtful NPAs plus the interest at simple rate. c 100% of o/s balance in the a/cs on the date of categorisation as doubtful NPAs plus interest at bank rate d 100% of o/s balance in the a/cs on the date of categorisation as doubtful NPAs plus interest at BPLR of the bank e 100% of o/s balance in the a/cs on the date of categorisation as doubtful NPAs plus interest & other charges due 05 What is the amount that could be accepted by banks under RBI’s OTS for SMEs for sub-standard accounts as on March 31. e 100% of o/s balance in the a/cs on the date of categorisation as doubtful NPAs plus interest & other charges due 06 Which of the following options are available to the borrowers for repayment under RBI’s OTS for SMEs: a full amount has to be paid up front b 25% can be paid up front and balance in instalments c 25% can be paid up front and balance 75% in instalments within three years with interest d 25% can be paid up front and balance 75% in instalments within one year without any interest payment e 25% can be paid up front and balance 75% in instalments within one year with interest at existing PLR till date of payment. 2005 b Dec 31.10 crore. 2006 e Jun 30.d the scheme is available for loss accounts only e the scheme is available for doubtful accounts only. 2006 04 What is the amount that could be accepted by banks under RBI’s OTS for SMEs for doubtful or loss accounts as on March 31. c all corporate SMEs having consortium arrangement with total fund limits of Rs. c 100% of o/s balance in the a/cs on the date of categorisation as doubtful NPAs plus interest at bank rate d 100% of o/s balance in the a/cs on the date of categorisation as doubtful NPAs plus interest at existing BPLR from April 1. 2005 c Feb 28.
2 lac b Rs.6 lac d Rs.08 Which of the following types of loan accounts are eligible under Debt-Restructuring mechanism for SME: a should not be a loss account b Units that could become viable in 7 years c Units that could ensure repayment not exceeding 10 years d BIFR cases e all the above 09 What is the permissible time norm for working out the restructuring under DebtRestructuring mechanism for SME: a one month from date of account becoming sub-standard b one month from date of receipt of information from the borrower c 30 days from date of receipt of request d 60 days from date of receipt of request e 90 days from date of acknowledgement of request.8 lac e Rs. c when bank did not send any reply within 2 months of a reference of complaint to the bank. 15 What is the time period during which the bank is to implement the order of Ombudsman: a within 15 days of date of receipt of order b within 30 days of date of receipt of order c within one month from date of receipt by the bank. b when referred by the customer after bank did not send any satisfactory reply within one month. d when bank makes a reference to Ombudsman e a to c all. 10 Under consortium advances.4 lac c Rs. 12 What is the maximum amount of compensation that Ombudsman can allow.10 lac 13 What remedy is available to the bank when Ombudsman passes an award directing the bank to make the payment: a Bank can go in for appeal in a court of law b Bank can go in for appeal to RBI c Bank can make a request for review to Review Authority d Bank can file a suit against the decision with DRT e none of the above 14 What remedy is available to the customer when Ombudsman passes an order with which customer is not satisfied: a can make a review application to Ombudsman b can make a review application to Review Authority c can go in for appeal in DRT d can proceed for any remedy deemed appropriate by him e can file a suit in a Consumer Court only. of customer’s acceptance of the award with in 15 days of receipt of order by him . which bank could work out the restructuring: a the bank having maximum share b the bank having maximum share alongwith the 2nd largest bank c all the banks together d banks having 51% share e none of the above 11 What is the time period when a complaint can be entertained by the Ombudsman: a when referred by the customer directly to the Ombudsman. for a case referred to it: a Rs.
10 lac d a and c e b and c 17 What is the time period during which Ombudsman is expected to render his award in case of arbitration.1 lac per depositor from the banking system .1 lac per depositor per branch of a bank b Rs.d within one month from date of receipt by the bank of the acceptance of award. e none of the above 16 What is the amount of dispute that could be referred to Ombudsman for arbitration: a between bank to bank Rs. c deposits of State Land Dev Banks with State Coop Banks d deposit received outside India e all the above 23 What is the amount of insurance up to which a deposit is insured: a Rs. a 3 months from date of receipt b 1 months from date of receipt c 6 months from date of first hearing d within 6 months from date of receipt of the case e c and d. whichever earlier. 19 Which of the following type of complaint regarding loans cannot be lodged by the customer with the Ombudsman: a non-observance of RBI directives b delay in sanction or disbursement c non-acceptance of loan application without valid reasons d non-observance of time schedule for disposal of loan applications e none of the above 20 Ombudsman scheme has been formulated by RBI under provisions of: a RBI Act Section 21 b RBI Act Section 35 c Banking Regulation Act Sec36-A d Banking Regulation Act Section 35-A e Ombudsman Act Section 35 21 Which among the following are not eligible for deposit insurance from DICGC: a foreign banks b regional rural banks c district central banks d primary cooperative societies e none of the above 22 Which of the following kinds of deposits are not insured under DICGC scheme: a inter bank deposits b deposits from government. any time. 5 lac b between bank to bank Rs. 18 What is the time period during which the bank can file a review application with Review authority: a within 2 months from date of award b within 1 month from date of receipt of copy of award c within 1 month from date of award d within 3 months from date of order e within 6 months from date of receipt of award. 10 lac c between bank to customer Rs.1 lac per depositor per bank c Rs.
having deposit with both the banks: a cover is applicable to the maximum extent of Rs.1 lac per depositor held singly or jointly e all the above 24 On which amount/balance of deposit. the premium payable in advance to DICGC is to be calculated by the banks: a last working day of March b last working day of Mar and Sept c last reporting Friday of March d Last Friday of the year e none of the above 29 What is the time schedule during which the premium is to be finally paid: a within 1 month from beginning of the year b within 2 months from beginning of the year c within 2 months from beginning of the respective half year d within 2 months from last day of the previous year e none of the above 30 What are the circumstance under which a bank is disqualified to be covered under deposit insurance scheme of DICGC: a where the bank fails to make the payment of premium b where the bank has been prohibited from accepting the deposits by RBI c where RBI has cancelled the licence d where the bank ceases to be a banking company e all the above 31 On dishonour of a cheque. the deposit insurance cover is available from DICGC a date of cancellation of licence of the bank b date of liquidation of the bank c date of amalgamation comes into force d date of merger comes into force e any of the above 25 If two banks are closed on the same day.1 lac d cover available but maximum amount would be Rs.1 lac b cover available separately to the extent of Rs. what kind of remedy is available to the holder of the cheque under NI Act: a holder can file complaint with Ombudsman .d Rs.1 lac to be claimed pro-rata from both the banks e none of the above 26 What is the time period during which DICGC is expected to meet its claim liability: a two months from date of receipt of claim list from the liquidator b two months from date of receipt of claim list from the transferee bank c two months from date of receipt of claim list from the insured bank/transferee bank d a to c all e a and b only 27 What is true with regard to periodicity and the amount of premium payable on deposit insurance: a 10 p per Rs. what is the position of availability of insurance cover to the depositor.100 per annum b payable yearly c payable half-yearly d a and b e a and c 28 On what basis.1 lac for each bank c cover not available as that amounts to violation of basic cover of Rs.
b to issue notice to the drawer within 15 days. in response to the notice from holder e any of the above. what is the punishment under NI Act for dishonour of cheque: a fine double the amount of the cheque b fine up to Rs.b holder can file the case in a normal court c holder can file a complaint with metropolitan magistrate or 1st class judicial magistrate d holder can file a complaint with RBI e all the above 32 The remedy under Section 138 of NI Act. in response to the notice from holder e no complaint can be filed 37 What punishment is prescribed under NI Act. What is the time period during which the complaint can be filed by X in this case: a within 30 days from date of receipt of information about dishonour by the holder b within 15 days from date of issuing notice to the drawer to make the payment c within two months from date of cause of action d within three months from date of non-receipt of reply from the drawer. d a and c e b and c 35 What is the time period. from date of receipt of the notice by him. d where the cheque has been issued to discharge the liability and holder has been asked not to present the cheque e where the cheque has been dishonoured for insufficiency of funds. by the holder: a to issue notice to the drawer within 30 days of date of receipt of the information about dishonour. 36 X has received a cheque from Y as gift on his birthday. b fine double the amount of cheque c imprisonment up to 2 years d a and c e b and c 38 If an offence is compounded by the court. 33 What is the time period during which the cheque is to be presented u/s 138 of NI Act: a before the bank fails b before the drawer stops the payment of the cheque c during the validity period d maximum within 6 months of date of issue. to make the payment. to make complaint by the holder: a within 30 days from date of receipt of information about dishonour by the holder b within 30 days from date of issuing notice to the drawer to make the payment c within one month from date of cause of action d within two months from date of non-receipt of reply from the drawer. for dishonour of cheque: a fine equal to the amount of cheque. When cheque is presented. whichever is later. it is dishonoured. of date of receipt of information about dishonour c drawer should be given 15 days period.5000 . e c and d 34 Which of the following is an essential condition for filing complaint. to file complaint is not available to the holder under which of the following circumstances: a where the cheque has been issued without consideration b where the cheque has been issued to discharge the liability c where the cheque has been issued to discharge the liability but its payment has been stopped.
on the basis of which KYC guidelines have been issued: a Financial Action Task Force b Anti-money laundering standards c UNO Resolution on Iraq war d a and b e b and c 44 What is the cut off amount of transactions for which the banks are required to keep record and report to the designated authority: a all debit and credit transactions b all debit and credit transactions in cash only c all cash withdrawals and deposits of Rs. 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 e all the above 41 KYC guidelines have been issued by RBI.50000 d More than Rs.50000 or less b Rs.c imprisonment up to 1 year d imprisonment up to 2 year e b and c 39 What is the mode of service of summons by the court on the drawer of the cheque: a normal postal services b speed post c authorized courier d a and b e a to c 40 What is true with regard the liability of a director of a company.10 lac and above e all withdrawals of above Rs. under which of the following: a Section 21 of Banking Regulation Act b Section 31 A of RBI Act c Section 35 A of RBI Act d Section 31 of NI Act e None of the above 42 Which among the following is the objective of issuing KYC guidelines by RBI: a check fraudulent activities of the borrowers b check money laundering activities c avoid undesirable customer to enter the banking system d a and b e b and c 43 Which of the following is the basic document. 45 What is the amount of bank draft that can be issued by banks in cash under KYC directives of RBI: a Rs.50000 or more c Less than Rs. in case of dishonour of cheque.1 lac 46 What is the time period during which the record of transactions is to be kept by banks under KYC directives: a 3 years b 4 years c 5 years d 6 years .1 lac in cash.10 lac and above d all withdrawals and deposits of Rs.50000 e More than Rs.
X draws a bill of exchange on Y in consideration of sale of goods. 47 What is the periodicity of reporting of transactions to designated authority under KYC: a fortnightly b monthly c quarterly d half yearly e yearly. e it cannot be accepted. that you find is a fake note.e time frame prescribed by Central Govt. his term deposit receipt. if the customer provides indemnity bond c it can be accepted. Which among the following action is required to be taken: a the note will be cut into pieces and pieces handed over to the tenderer b the police would be called and tenderer would be handed over to police.500 bank note.3 1. Set . What would be date of payment of the bill? a it will be treated as usance bill and due date would be worked out after acceptance of the bill b it will be treated as a demand bill and payment would be claimed as per mutual consent of both the party c it will be treated as a demand bill and paid accordingly d it will be treated as an ambiguous instrument and as such invalid e it not a valid document. since it is a term deposit issued by another bank. kindly refer to November 2005 issue of Banking Events Update. a statement would be obtained from the tenderer & both would be sent to police 3. in which of the following situations: a encashment of foreign travellers’ cheques b collection of a foreign currency bank draft c negotiation of bill tendered by the exporter d receipt of loan proceeds of a foreign currency loan from abroad e issue of a foreign currency demand draft . Bank should refuse. X a customer of another bank approaches your branch to deposit in safe custody. Hence X has to withdraw the instrument 4. as a normal customer d it cannot be accepted. 48 Which of the following is not the key element of KYC policy to be framed by individual banks. a Rs. provided the other bank has no objection to this b it can be accepted. Your branch receives from a customer. issued by the said bank: a it can be accepted. Mr. c the note would be marked ‘fake’ and handed over to the tenderer d the note would be impounded and kept in safe custody e the note would be impounded. as per RBI directives: a customer acceptance policy b customer identification procedure c monitoring of transactions d risk management e none of the above For solution to this quiz. 2. He does not mention the date of payment of the bill. which has primary lien on the deposit. Bank makes use of selling rate in case of a foreign exchange transaction.
2005 c Sep 20. The account would be treated Standarad asset wef: a Sep 20. he can be covered: a it is part of the credit risk b the appraisal of the loan is definitely defective c bank can recover the dues through filing of suit only d it is part of the operational risk e it is part of the liquidity risk 8. a bank can calculate capital adequacy ratio: a capital / risk weighted assets b capital + reserves / risk weighted asset c capital fund / credit assets d capital fund / risk weighted assets e risk weighted assets / capital fund 11. 2006 d. which had fallen due during July 2005. 2004 with a moratorium of 6 months. A farmer has been allowed an advance for irrigation equipment. Substandard loan account of a firm was rescheduled by the bank on Sept 20. This account will be called ____ account by the foreign bank and ____ by the bank in India: a loro and vostro b nostro and vostro c loro and nostro d vostro & nostro e vostro and mirror account 6. A borrower defaults in repayment of loan. there is no need for life certificate d life certificate should be obtained once in a year during May e life certificate should be obtained once in a year during November 7. The loan will become NPA after : a one harvest season b one crop season c two harvest seasons d two crop seasons e maximum within one year 10 In which of the following methods.Mar 20. securities c to cover the risk of fluctuation in value of capital market securities d to cover the risk on account of govt. due to which of the following: a increasing advances in housing finance b frauds taking place in housing finance in one particular bank . loans e c and d above 12. He has failed to repay the due instalment of his loan. 2004 9.5. Which among the following is purpose of investment fluctuation reserve: a to cover the interest payment on investment in capital market b to cover the loss arising from valuation and from interest rate movements in investment in govt. The firm commenced the repayment as per reschedulement and continued to repay the loan regularly. 2005 b. Under which of the following. RBI has cautioned banks to take more precautions in respect of housing finance advances. 2006 e Sep 20. He normally produces wheat and paddy. Which among the following is true with regard to pension accounts in banks: a life certificate should be from a Doctor b life certificate should be obtained in the month of May and Nov every year c When payment is obtained by the pensioner himself.Mar 20. A foreign bank maintains a rupee account with a bank in India in Delhi.
A cheque dated Oct 12. 2004 is presented for payment on Oct 27.10000 for collection and also requests for instant credit of the cheque. 17.25% on all advances of the bank. 14. What is true with regard to the provision that is required to be maintained on standard loan assets: a it is 1% on all regular standard assets b it is 1% on all regular and irregular standard assets c it is 0. . Which among the following is true in case of objective of setting up of CIBIL? a to collect information about bank NPAs b to collect credit information on behalf of RBI and CVC c to collection information about bank business for helping RBI d to collect positive and negative credit information and disseminate the same e a to c all 16. A customer tenders to the bank an outstation cheque of Rs. the maximum amount of claim for non-fund based limits is: a Rs.10 lac b Rs.25% on all regular standard loan accounts d it is 0. A cheque has been issued by X in favour of Y. if otherwise in order b the cheque would be paid. Under Credit Guarantee Fund Scheme. to which bank agrees.15 lac c Rs. 2004. 19. It is however observed that the cheque book from which the cheque was issued was issued to the customer on Oct 22. Which among the following is true with regard to the cheque: a Y has no liabiity if the cheque is dishonoured. b Z becomes a holder in due course c X’s liability on the cheque is a secondary liablity d no one would be holder in due course on this cheque e Such cannot be endorsed.c increasing incident of frauds and increasing NPAs d due to increasing exposure of few banks in housing finace e a to d all 13. 2004 only. as apparent tenor of the drawer is not clear d the cheque being post-dated cheque would be returned e the cheque being ante-dated would be returned.18. if drawer confirms that he put the date intentionally c the cheque would be returned.25% of global loan portfolio of standard loan assets e it is 0.25 lac e Non-fund limits are not covered. What would be bank be called: a agent of the customer b holder for value c holder d holder in due course e special holder in due course 18. What would the bank do with the cheque? a this is ante dated cheque and would be paid. Which of the following committees is associated with improvement in the working of weak banks: a RH Khan Committee b S S Tarapore Committee c Padmanabhan Committee d S L Kapoor Committee e Verma Committee 15.75 lac d Rs. as the transferability has been restricted. who crosses the same as ‘not negotiable’ and endorses to Z for a valuable consideration.
c Rs.a.40000 p.a. deals with which of the following aspects of banking transactions? . What is the amount of family income for eligibility under DRI scheme in rural areas: a Rs. c the maximum income of husband/wife Rs.a.a.a.a.7500 p.a.80000 p. b Rs. The assessment of working capital for this would be made by the bank: a as per cash budget method b as per turnover method of Nayak Committee c as per Chore Committee method d as per 1st method of Tandon Committee e as per 2nd method of Tandon Committee 23. where raw material is available in a particular season of two months only. d Rs.a.20. You are approached by an SSI units that is engaged in an industry. e Rs. 22.a.40000 p. from all sources e c and d both are correct 26 Which of the following categories of borrowers are not eligible for assistance under KVIC’s margin money scheme? a Partnership firm b individuals c cooperative societies d trust registered with KVIC e none of the above 27 Section 269-T of Income Tax Act 1961. d the maximum income of husband/wife and that of parents is Rs. at a particular point of time? a when foreign exchange purchased is less than foreign exchange sold b when foreign exchange sold is more than foreign exchange purchased c when foreign exchange sold is equal to foreign exchange purchased d when foreign exchanged purchased is more than foreign exchange sold e when foreign exchange purchase become risk-prone due to price variation 21.7200 p.11200 p. from all sources and that of parents separately Rs.40000 p. What is overbought position in case of Foreign Exchange.6250 p. Which of the following must be true: a debt equity ratio changed b current ratio changed c stock turnover ratio changed d debt service coverage ratio changed e nothing changed 25 Which among the following is correct with regard to family income in case of Prime Minister Rozgar Yojna (PMRY)? a for income purpose family comprises husband and wife and their childern b the maximum income separately for husband and wife is Rs. Which among the following is true with regard to objective of getting signature of the person obtaining payment of a bearer cheque? a to get it endorsed properly b to get final discharge of the instrument c to create proof that the instrument was presented d to get receipt of payment e a to c all 24 The comparison of the balance sheet of a firm reveals that increase in its long term uses are 125% of increase in its long term sources.6400 p.
trustee & beneficiary d articles left by mistake . 30 Which among the following can be exercised by a bank on a term deposit the maturity date of which expired 2 months back: a right of assignment b right of appropriation c right of subrogation.50000 only e all the above. the relationship between the bank and customer is not correctly stated: a shares given for sale .20000 only b deduction of tax at source on term deposits c payment of bank drafts in cash up to Rs. b because that would be risk prone c as per provisions of RBI Act d as per directives of Banking Regulation Act e because is draft is a value paid instrument while cheque is value payable.agent/principal 34 In which of the following circumstances. 28 Bank drafts are issued by banks payable to order only while customers can issue cheques payable to bearer also: a due to restriction imposed by Govt. d right of forclosure e right of set off 31 When a bank has oversold position in foreign currency in an appreciating market which of the following would be true? a bank will be gaining while covering its position b bank may incur loss while covering its position c there will not be any impact.50000 only d preparation of bank drafts in cash up to Rs.agent & principal e standing instruction . 33 In which of the following circumstances.agent & princial b garnishee order . there can be more than one nominee a joint term deposit accounts b deposit accounts of pensioners c joint safe deposit of aritcles d locker accounts in either/survivor account e joint operation locker accounts .a payment of term deposit in cash up to Rs. since bank has already sold the currency d bank will gain while purchasing the fresh currency e none of the above 32 In order to sell an asset charged to the bank under SARFAESI Act. which among the following is true? a any kind of asset can be sold if it is charged to the bank b all kinds of loans are covered except agriculture loans c before possession 30 day’s notice and before sale 60 days’ notice is required d before possession 60 days’ notice and before sale 30 days’ notice is required e sale can be made after getting permission from DRT.debtor & creditor c payee of draft . 29 Which of the following is not correct with regard to ‘Know Your Customer guidelines’ ? a Guidelines have been issued u/s 35 A of Reserve Bank of India Act b Guidelines relate to identification of depositors c Guidelines help to control financial frauds d Guidelines help in identification of money laundering and suspicious activities e Guidelines are applicable to all accounts including foreign currency accounts.
The cheque is presented on Sept 29.Tyagi for payment across the counter. X signs a post dated cheque dating it as March 30. 2005.25 lac b 20% of SSI advances should be to SSI with investment in plant & machinery above Rs. 38 In case of small scale industrial units. When money was demanded from Mr.5 lac & up to Rs. G has used to demand the securities: a Right of foreclosure b Right of subrogation c Right of redemption d Right of marshalling e Right of novation 41 B appoints X as his agent on January 01.100 for each Rs. Which right Mr. G guaranteed the loan raised by Mr. Rs.10000 d No court fee is payable e Court fee is discretion of Lok Adalat.35 Your branch receives a cheque of Rs. This direction of A is: a direction of drawer to paying bank b direction of the payee to collecting bank c direction of drawee to the payee d direction of the drawer to collecting bank e direction of the drawer to the payee 40 Mr. 36 Illegal interference in the property of another person. Tyagi in the cheque is written in Hindi while the other particulars are in English: a Bank will return the cheque b Bank will ask Mr. Tyagi to write the name in English also c Bank will ask the payee to get it corrected in English from the drawer d Bank will make the payment of the cheque e Bank will make the payment. G he paid the loan and asked for handing over the securities available in the loan. that becomes a punishable offence. after enquiring from the drawer. He expires on March 25.25 lac c Minimum 40% of SSI advances should be to SSI with investment in plant & machinery above. It is observed that the name of the payee Mr.5 lac.750. 2005.25 lac e all the above 39 X issues a cheque in favour of A. which among the following is correct with regard to the sub-target to be achived by banks: a 25% of SSI advances should be to SSI with investment in plant & machinery up to Rs.1 lac c Max amount is Rs. is called: a tress-passing b marshalling c securitisation d negotiation e conversion 37 What is the amount of court fee for filing a case in a Lok Adalat? a Minimum Rs. who crosses the cheque as ‘ account payee only’. Y who failed to pay. 2005 a the cheque will not be paid b the cheque would not be paid because the signatory has died .25 lac d 20% of SSI advances should be to SSI with investment in plant & machinery above Rs.2500 drawn in favour of Mr. b Above the amount of Rs. 2004.
4 1 A reputed company approaches your bank to provide them credit support for raising external commercial borrowing under automatic route. X draws a bill of exchange on Y which Y accepts for payment. Set . foreign bill d. What kind of facility can be provided to them: a a guarantee for the ECB can be given b a standby letter of credit can be opened c letter of undertaking can be issued d letter of comfort can be issued e None of the above is permitted 2 What is the role of advising bank in case of a letter of credit: a to forward to the seller and to negotiate documents b to verify the genuineness of LC and forward it to the seller/beneficiary . genuine bill e. is an alternative method of effecting bulk payment transactions which would obviate the need for issuing and handling paper instruments and thereby facilitate improved customer service by the banks and companies / Corporations Govt. 42 For which kind of following accounts. accommodation bill For solution to this quiz. a locker account cannot be opened: a joint account in the name of more than 3 persons b joint operations by more than two persons c either or survivor d former or survivor e the account can be opened in all forms such as joint operation. documentary bill of exchange c. department effecting payment. the banking cash transaction tax is to be deducted: a all deposit and loan accounts b for all non-saving bank accounts whether deposit or loan accounts c cash withdrawal from non-saving accounts of individuals/HUF of Rs. kindly refer to October 2005 issue of Banking Events Update. either/survivor and former/survivor 45 X and Y deal with each other by sale and purchase of goods.c the cheque would be paid as the customer is alive d the cheque would be paid as cheque has not become stale as yet e cheque would be returned as with death of the agent the authority ceasd to operate. clean bill of exchange b.25000 and above d cash withdrawal from non-saving accounts of others of less than Rs. but no sale purchase has taken place for this bill.1 lac and above e c and d 43 Under which of the following systems. In this case the bill is : a. a electronic funds transfer b electronic clearing services c special electronic funds transfer d real time gross settlement e all the above 44 In which of the following styles.
What will be true with regard to Break even point of these project. the annual amount of depreciation decreases: a Written down value method b Straight line method c Annuity method d Insurance policy method e a and c above 9 An importer has imported from Australia (invoicing Aus Dollar) certain plant and machinery the payment of which is to be made 2 months after. On the basis of prevailing situation the home currency is expected to record depreciation compared to Aus Dollar.c to give confirmation that payment would be made by it in case the issuing bank fails to make the payment d to allow preshipment credit if asked for by the beneficiary e all the above 3 While providing finance to a project. This objective of the company would be found in which of the following documents: a Certificate of Incorporation b Certificate of Commencement of Business c Resolution from Board of Directors d Articles of Association e None of the above 8 Under which of the following methods of depreciation on fixed assets. a higher overall ceiling (above 5%) in respect of exposure to capital market: a State Bank of India b HDFC Bank c StanChart Bank d ICICI Bank e IDBI Ltd 5 Which among the following is the first bank to return capital to the Central Governnent: a State Bank of India b Punjab National Bank c Oriental Bank of Commerce d Canara Bank e Corporation Bank 6 Project A has higher fixed cost than the project B. c present value of the cash flows which the project would generate over a time period on the basis of a discount factor . d present value of the cash outgo over the life time of the project so as to understand the actual outlay e the discount rate at which the present value of future cash flows becomes zero taking into account the investment. other things being equal: a project A has higher break-even and scope of better profits b project A has higher break-even and scope of lower profits c project B has higher break-even and scope of better profits d project B has higher break-even and scope of lower profits e Break even shall be equal based on the cash flows 7 A company has been formed to undertake the business of software development. What should be importer do: a He must go for a swap of Aus Dollar with Rupee . 4 Which among the following banks has been permitted by RBI. the term Net Present Value method represents which of the following: a to find out the present value of the investment made in the project b a tool to understand as to what shall be the present value of the loan being given at the end of a particular period.
rate sensitive assets are higher than the rate sensitive assets. 14 Collection period of its sundry debtors has been increasing in respect of a firm but the period available to it for payment to sundry creditors has been decreasing.e. This would lead to: a increase in its working capital requirements b decrease in its working capital needs c no change in its working capital needs d higher amount of interest payment e No impact on any of the financial parameters 15 A process under which it is expected that a combined entity (combination of two or more) would be able to exceed the individual earning of the entities being combined: a six sigma b total quality management c synergy d internal rate of return e management by profiteering 16 Which of the following foreign nationals of non-Indian origin cannot remit foreign exchange from India: a Who has retired from employment in India b Who has inherited assets from a person resident in India c Who is widow of a Indian Citizen . What would the impact of increase in interest rates: a Net interest margin would decrease b Net interest margin would increase c Market value of the assets would increase d Market value of the liabilities would increase e There will be no impact.b He must arbitrage in Aus Dollars c He should book a forward contract and purchase Aus Dollar d He should sell Aus Dollars immediately e He should purchase Aus Dollars spot 10 The rate of discount at which the present value of cash inflows becomes equal to the present value of cash outflows over the period of a project is called: a net present value b discounted cash flow c debt service coverage ratio d internal rate of return e project appraisal technique 11 A stand-by letter of credit opened for import of gold on loan basis provides for which of the following: a the usance period should not exceed 90 days b the usance period shall be need based as per contract c the tenor of the letter of credit should be in line with the period of gold loan d a to c all e a and c 12 The methodology that focuses on eliminating the defects and facilitating data drivern decision making: a management by objectives b customer relation management c six sigma d strategic management e Total quality management 13 A bank carries positive gap in its asset liability position i.
24 Who among the following can open an NRO account in India: a a non-resident Indian only . How the bank should deal with his request: a Can be allowed up to $ 1 million b Can be allowed up to $ 100000 c Can be allowed with permission of RBI d Can be allowed up to Rs.1 million e Can not be allowed 21 An NRI wants to remit the sale proceeds of the immovable properties from India. Which of the following documents will not be required to be furnished by him: a evidence in support of inheritance b Reserve Bank permission c Document for legacy of assets d An undertaking by the remitter e CA certificate as per prescribed format 22 What is the residential status of a student from India having gone abroad for studies purpose: a a person of Indian origin b a Non-resident Indian c a resident Indian d a foreign National e none of the above 23 What kind of remittance facilities are available for a student from India having gone abroad for studies purpose: a same as in case of Resident India b same as in case of a foreign national c same as in case of an NRI d same as in case of person of Indian origin e No such facility is permitted.d all the above e none of the above 17 What is the maximum amount that a foreign nationals of non-Indian origin can remit foreign exchange from India: a $ 50000 b $ 100000 c $ 500000 d $ 1000000 e $ 2500000 18 The facility of remittance is not available to which of the following types foreign nationals of non-Indian origin: a Citizens of Australia & Canada b Citizens of Nepal & Bhutan c Citizens of Nepal and Bangladesh d Citizens of Bhutan and Pakistan e None of the above 19 Remittance of sale proceeds of immovable of property can be allowed by Authorised Delaers to which of the following: a Citizens of Nepal and Bangladesh b Citizens of Sri Lanka & Afghanistan c Citizens of Pakistan & Iran d Citizens of China and Bhutan e None of the above 20 A person of Indian origin approaches to remit funds from his Non-Resident Ordinary account.
During his visit to India. his NRO account would be treated as: a an NRE account b A resident account c An NRO account d an FCNR account e none of the above 31 A request is received by your branch from the nominee. His saving bank with your branch in India will be designated as: a FCNR account b A non-resident external account c An NRO account d A resident account e none of the above 30 A non-resident Indian has been visiting India to meet his old parents. to credit the balance lying in the deceased person’s NRO account to his account: a it cannot be done if nominee is resident b it cannot be done if nominee is non-resident c request can be accepted if he is non-resident only d request can be accepted if he non-resident or resident India .b a person of Indian origin only c Any person/entity resident outside India d a foreign national only e none of the above 25 Which of the following types of credit can be freely allowed by Authorised Dealers to NRO accounts: a from FCNR accounts and vice versa b from NRE accounts and vice versa c transfers from rupee accounts of non-resident bank d all the above e none of the above 26 What is the extent of debits that can be allowed by ADs for remittance from NRO account of NRI/PIO: a $ 1 million per calendar year b $ 1 million per financial year c $ 100000 per calendar year d $ 100000 on one occasion e $ 100000 per financial year 27 A foreign national visiting India wants to open an NRO account during his visit: a account can be opened b account cannot be opened c account can be opened with RBI permission only d account can be opened for foreign currency transactions e none of the above 28 The compliance of which of the following conditions is required to be ensured in respect of NRO account of a foreign national: a the account can be opened maximum for a period of 6 months b no credit from local funds will be permitted c interest can be credited d balance can be allowed to be converted into foreign currency for payment to the account holder at the time of his departure from India e all the above 29 A resident Indian proceeds to Nepal for taking up employment.
e RBI permission is required for such request. His NRO account would be treated as: a an NRE account b A resident account c An NRO account d an FCNR account e none of the above 33 An NRI has been issued a credit card by your bank. What treatment should be given by the bank to his loan account: a loan should be recovered before he leaves India b banks can use their commercial judgement about continuation of the loan c if loan is allowed. an FCNR-B cannot be allowed to be opened: a US $ and Euro b Euro & Australian Dollar c Canadian Dollar & Pound d Japanese Yen and Euro e Singapore Dollar and Dinar 37 Which of the following categories of persons can open an FCNR-B account: a Overseas Company b Overseas firm c Overseas corporate body d NRI of Indian nationality or origin e c and d 38 Deposit under FNCR-B scheme can be accepted maximum for which of the following maturities: a 1 year b 2 years c 3 years d 4 years e 5 years 39 What is true with regard to payment of interest on FCNR-B accounts: a the no. of years is to be taken 360 b for deposits of maturity of up to one year. it can be adjusted by his relatives d if loan is allowed. compounding to be done with an interval of 180 days. it can not be adjusted by his income in India e if loan is allowed. it can not be adjusted out of remittances 35 What is meant by the word ‘deposit’ in the context of FCNR-B scheme a a saving bank deposit b a current account deposit c a term deposit d a saving. interest is not to be compounded c for deposits of more than year. 32 A non-resident Indian has returned to India for employment for uncertain period. current or term deposit e none of the above 36 In which of the following currencies. The balance drawn by him under the card shall be adjusted by which of the following: a remittances from abroad b transfer from his NRE account c transfer from his FCNR account d transfer from his NRO account e any of the above modes 34 A resident India allowed loan by your bank has become non-resident. d all the above e none of the above .
the word family in respect of a staff member does not include: a spouse of the member/deceased member b dependent parents c dependent children d dependent brothers/sisters e none of the above 41 An NRI customer comes to get his FCNR-B term deposit cancelled after 8 months of its date of issue as he needs money urgenty to meet the cost of medical expenses in India. under the automatic route: . the deposit was with the bank. the external commercial borrowing funds cannot be raised. the deposit was with the bank less penalty d as applicable to the period.40 For payment of additional interest on FCNR-B deposit account. What interest rate would be paid to him: a as applicable for domestic saving bank account b as applicable for NRE account saving bank account c as applicable to the period. It will be paid: a on Saturday with interest up to Friday b on Saturday with interest up to Saturday c on Monday with interest up to Monday d on Friday with interest up to Friday e None of the above. without any penalty e no interest to be paid 42 A customer holding FCNR-B term deposit wants to convert his deposit to NRE deposit: a it can be allowed without any penalty b it cannot be allowed with RBI permission c it can be allowed subject to recovery of penalty d it can be allowed without paying any interest e it can be allowed and interest can be paid as per saving bank deposit on NRE accounts 43 An NRI customer holding FCNR-B term deposit and returning to India for permanent settlement wants to convert his deposit to Resident foreign currency deposit: a it can be allowed without any penalty b it cannot be allowed with RBI permission c it can be allowed subject to recovery of penalty d it can be allowed without paying any interest e it can be allowed and interest can be paid as per saving bank deposit on NRE accounts 44 An FCNR-B term deposit is maturing on Saturday and customer demands its payment. 45 Which among the following is not part of the External Commercial Borrowing: a buyer’s credit b seller’s credit c securitized assets d bank loans e NRI deposit 46 What is the time period of minimum average maturity for external commercial borrowing: a 1 year b 2 years c 3 years d 4 years e 5 years 47 For which among the following purposes.
a investment in the form of capital goods import b Investment in infrastructure c investments in joint venture and wholly owned subsidiaries abroad d meeting the working capital needs e none of the above 48 A software that restricts the access to and from a network and is designed to protect from outside intrusion is called: a firewall technology b network protection technique c virus protection technology d total protection technique e morphing 49 The break-even point in terms of capacity utilization of a project in its 2nd and 3 year would be 55% and 50% respectively while the actual level of operation is 52% and 54% respectively: a there will be substantial profit b it will incur loss c there will be loss in the 2nd year and profit in the 3rd year d there will be profit in the 2nd year and loss in the 3rd year e there will be neither profit nor loss 50 In computer software.5 1 Which of the following terms represent ‘one point basis’: a one percent b one tenth of one percent c one hundredth of a percent d one hundred percent e one thousandth of a percent 2 Bombay stock exchange index ‘Sensex’ is based on the value of top 30 shares of: a Fortune 500 companies b Government Companies c Strong World level companies d Indian blue chip companies e Asian companies 3 Which of the following kind of mutual funds operates continuously without any limit for entry for subscriptions and redemptions: a open ended b closed ended c growth fund d fixed income fund e specific fund . Set . the term ‘Morphing’ refers to which of the following: a animation technique in which one image is gradually turned into another b data conversion technique by way of use of codes c conversion of digital picture to analog images d a soft ware that saves a network from intrusion e software that links one server to another For solution to this quiz. kindly refer to September 2005 issue of Banking Events Update.
25000 from him and deposited in his account. This is called: a Transfer of shares b Rejection of shares c Renunciation of shares d Surrender of shares e None of the above 5 Which of the following instruments represent the share in Indian companies in India being traded in America/Europe? a GDR/ADR b IDR/ADR c GDR/IDR d Zero Coupon Bonds e Debentures 6 The customer day in a public sector bank bank is on and customers are allowed to meet the top officials of the bank branch on this day in every month: a 5th b 7th c 10th d 15th e 25th 7 The term ‘evergreening’ means a to plant green trees all the times b a healthy asset cover c provide additional loan facility to an NPA account to make the asset standard d to paint the bank building with green paint e none of the above 8 One of the female staff members of workman staff had a miscarriage and has applied for a 6-month maternity leave. another customer has snatched Rs. What would be done? a No leave permissible for miscarriage. d Since amount belongs to Dharmesh. a By debiting account of Ramesh. ordinary leave account would be debited e none of the above 9 A minor can be allowed to open a saving bank account. the balance would be earmarked. on behalf of the bank? a Any official of the bank b Any officer of the bank c Any manager of the bank . Ramesh Kumar. Dharmesh.4 A person is not interested in buying the rights issue shares offered to him and he decides to give this right to one of his relatives. e none of the above 11 As per extant guidelines. who among the following can sign the notice for possession under SARFAESI Act 2002. Hence request would be rejected. b Leave would be sanctioned after verification of the fact. an important customer of your branch informs you that Mr. bank will provide a certificate that amount has been deposited. where he: a could sign and his age is at least 12 years b his age is above 16 years c could sign in English and his age is 16 years d could sign and his age is 10 years or above e could sign in Hindi and his age is 10 years or above 10 Mr. c Sanction the leave after getting it approved from Head Office d Allow 6 weeks’ leave and for the balance period. amount would be paid to Dharmesh b Advise him that bank cannot take any action on his complaint c Guide him to lodge a complaint with the police and if necessary.
in case of a registered mortgage begins with reference to : a date on which the loan falls due b date on which the mortgage was created c date of documents d b and c whichever is earlier e none of the above 13 After State Bank of India. for the first time for the banking industry: a operational risk b liquidity risk c settlement risk d market risk e credit risk 17 Under the provisions of SARFEASI Act 2002.d Any Law Officer of the bank e An officer in Scale IV or above 12 The limitation period of 12 years. where the defaulting borrower contests the seizure of the assets proposed for possession. 16 The following risk has been introduced in the Basel II accord. the exposure of the banks in capital market is restricted to: a 5% of the SLR investments b 5% of the total investments c 5% of total outstanding advances of (last day of) previous year d 7. who among the following are major shareholders of Asset Reconstruction Co. policy to raise additional resources through taxation and allocation of expenditure as per its priorities. which of the following a tax information network & challan identification number b tax information network and customer identification number c tax indentification network and challan identification number d tax identification net work and customer identification number e none of the above . is called: a economic policy b 5-year plan c expenditure and income policy d fiscal policy e none of the above 19 The terms TIN and CIN under the OLTAS system represent. whom can he approach: a Supreme Court b High Court having the jurisdiction c DRT having jurisdiction d DRAT e Distt Court 18 Govt. are not part of the advances to sensitive sectors: a against shares b to share brokers c to builders d against the security of commodities e loan to tobacco industry 15 As per RBI directives.5% of total outstanding advances e 5% of the total outstanding advances on on-going basis. India Limited: a ICICI/IFCI b IDBI/IFCI c ICICI/PNB d IDBI/ICICI e IDBI/BoB 14 Advances allowed by banks to which of the following.
500 lac d maximum amount of Rs.20 The Nayak Committee method for sanction of composite loans is applicable to which kind of SSI units being financed: a maximum amount of Rs. represents which of the following transactions: a sale of shares at NSE and investment at NASDAQ b purchase of immovable property in India by a foreign national by remitting funds from abroad c export of goods and surrender of foreign exchange representing export proceeds to an authorized dealer d export of services for investing the proceeds permanently outside India e none of the above 25 Which of the is not correct with regard to a Kissan Credit Card : a the amount is based on operational holding and scale of finance b the card has validity of 3 years c cheque book can be issued to select customers d contingent requirement can also be financed e none of the above 26 When a country decides to conduct trade on favourable terms with another country for mutual benefits.10 cr e none of the above 21 Which among the following maturity period of FCNR-B deposits is not available as per RBI directives: a 1 year and above but less than 2 years b 2 years and above but less than 3 years c three years only d 1 year to 5 years any maturity e a to c 22 A customer of a bank desires.200 lac c maximum amount of Rs. The risk arising from this situation is called: .100 lac b maximum amount of Rs. b applicable for the period on date of deposit less penalty c applicable for the period on date of withdrawal less penalty d no interest to be paid e none of the above 24 Current account convertibility in terms of foreign exchange transactions. this is called: a FTA system b MFN status c Bilateral trade d Counter trade e None of the above 27 A bank finds it difficult to repay the short term deposits on maturity to its deposits because the funds of the bank are locked in long term loans or investments. transfer of funds from his NRE account to an FCNR-B account and later on from FCNR-B to NRE account: a from NRE to FCNR will be allowed b from FCNR to NRE will be allowed c From NRE to FCNR will not be allowed d From FCNR to NRE will not be allowed e Allowed both ways 23 Interest on FCNR-B term deposit of 2 years. which is cancelled after 8 months of its deposit would be : a applicable for the period less penalty.
where the realizable value of security is less than ____ of the outstanding: a 10% b 15% c 25% d 50% e 100% 34 Which of the following is the objective for introduction of Senior Citizen Saving Scheme: a Mobilise additional deposit for banks b provide assured return to senior citizens c increase the govt. clearance is required d Bank Board’s approval is required e no permission is required. To improve the ratio. borrowing d attract retirement funds e none of the above . For this purpose. the bank will suggest the company to: a increase the equity by way of bonus issue b issue rights shares to existing shareholders c raise long term loans from institutions d raise long term interest free loans from friends and relatives e all the above 30 Which among the following would be classified as application of funds by a business firm: a raising loans from banks b raising the equity through a public issue c sale of fixed assets d purchase of fixed assets e earning handsome profits 31 Which of the following is correct with regard to shifting a bank branch within the same municipal area: a RBI license is necessary b RBI permission is required c State govt. the unsecured loan would mean. 32 The Asset Liability Committee in a bank makes the assessment of which of the following: a Credit risk b Foreign Exchange fluctuation risk c Liquidity risk d operational risk e all the risks 33 Additional provision on sub-standard assets classified as unsecured is to be made at 20%.a Interest rate risk b Liquidity risk c Operational risk d Market risk e Credit risk 28 The liquidity position assessment of a company can be made by which of the following parameters: a debt equity ratio b total outside liabilities to tangible net worth ratio c debt service coverage ratio d current ratio e fund flow statement pattern 29 A company is found to be carrying high debt equity ratio.
processed and settled instantantly. This stands for: a change of data into coded form b user having the access through a pass word c sending the data through internet d sending the information through CD or floppy e none of the above 37 Cheque truncation means which of the following: a tearing the cheque into pieces b sending a zerox copy of the cheque for collection c electronic image of a cheque d providing details of the cheque over phone e sending original cheque to paying bank and retaining an electronic image by the collecting bank 38 Broad band connectivity facilitates which of the following: a continuous offline internet for 24 hours b provision of internet faster than dial up tone facility c cheaper connectivity d broad screen computer based internet facility e all the above 39 Which among the following could be taken under ‘mixed farming’? a agricultural and allied activity b agricultural and manufacturing activity c agricultural and trading activity d agricultural and servicing activity e all the above 40 A shortfall in achievement of priority sector overall target by a commercial bank can be partly made good by: a investing in SIDBI bonds b investing in RIDF c investing in RBI bonds d investing in Treasury Bills e all the above 41 Which of the following can open an account under the Public Provident Fund Scheme in its present form: a an individual b an HUF c a Charitable trust d a society for handicapped persons e all the above 42 What is the extent of provision that a bank is required to make for net position after segregating all debit and credit entries in inter-branch accounts: a 2. this is called: a automated teller machine b electronic funds transfer c reconciliation transaction d real time gross settlement e none of the above 36 Financial transactions are transmitted through ‘encryption process”.5% of the net amount b 10% c 20% d 50% e 100% .35 If a financial transaction is carried.
What is status of application of Banking Cash Transaction Tax: a bank is required to deduct the tax as the total amount of withdrawal on a single day is Rs. where the bank. letter of administration. At noon it withdraws more amount of Rs. In the evening yet another withdrawal of Rs. Rs.1 lac c bank is not liable to deduct because the amount of single withdrawl is less than Rs. no requirement b in case of nomination accounts.28000 is made by the firm. no requirement c in case of accounts with no nomination or survivorship provision.27000. discretion of the bank d Banks cannot ask for such representations e a to c 47 What is the maximum time limit for the banks to settle the claims in respect of a deceased depositors and release payments to the survivors/nominees : a 7 days b 10 days c 15 days d 30 days e no time limit 48 The cases of deceased depositors where the claims have been received and are pending beyond the stipulated period are required to be reported to which of the following: a Board of Directors of the bank b Ombudsman c Reserve Bank of India d Customer Service Committee of the Board e All the above 49 Which of the following kinds of joint accounts cannot be categorized as an account opened with survivorship clause: a either or survivor .25000 from the 3rd branch. What is the status of application of Banking Cash Transaction Tax: a bank is required to deduct the tax as the total amount of withdrawal on a single day is Rs.1 lac c bank is not liable to deduct because the amount of single withdrawl is less than Rs.25000 or above e Bank is not required to deduct as the amount is less than Rs.1 lac for each branch and the amount withdrawn from all branches is not to be aggregated 45 Which of the following types of operation modes are permitted under the Senior Citizens Saving Scheme 2004: a generally single account b joint mode with the spouse c joint operation with any one d a and b only e a to c all 46 What is the amount of balance in a deceased depositor’s account. probate: a in case of joint survivorship accounts.1 lac b bank is not required to deduct because the amount is not more than Rs.35000 from the 2nd branch and Rs.25000 e none of the above 44 A company is having its current account with 3 branches of your bank and on a single days makes cash withdrawals of Rs. may ask for a legal representation such as succession certificate.1 lac b bank is not required to deduct because the amount is not more than Rs.43 A partnership firm having its current account with your branch withdraws cash in the morning amounting to Rs.45000.1 lac d bank is required to deduct as the amount of each withdrawal is above Rs.40000 from one branch.1 lac d bank is required to deduct as the amount of each withdrawal is of Rs. depending upon the circumstances.
b anyone or survivor c former or survivor d letter or survivor e none of the above 50 X opened an account with your branch under the Senior Citizens Saving Scheme 2004 for 3 years. kindly refer to August 2005 issue of Banking Events Update . He needs the funds to meet his medical expenses by raising a loan on the basis of pledge of the deposit. What precautions would be taken by the bank: a the loan cannot be sanctioned under the scheme b the loan amount should not be more than 80% of the amount of original deposit c the loan amount will be linked to present maturity value of the deposit d the loan would be allowed after obtaining a written request supported by a estimate from hospital e none of the above 51 What is the age criteria for under Senior Citizen Saving Scheme 2004 for opening the account: a 55 years b 65 years c 60 years d 55 years in case of those who are retiring voluntarily e c and d For solution to this quiz.
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