MOCK PRACTICE TEST : 2
1 International Bank opened a
saving bank account in the name of Mr. R Singh and at the time of
opening of the account handed
over to him the copy of rules and regulations for conducting the
account which also provided that
the cheque book should be kept under lock and key and for
loss if any arising from not
complying with requirement, bank will not be responsible. The
customer kept the cheque book in
drawer and one of his office colleagues took off one cheque
leave and by forging the
signatures of Mr. R Singh withdrew the money from the bank. The
customer claims the refund of the
money:
a the bank is not under
obligation to refund the money as the loss has been caused due to
negligence on the part of the
customer
b the loss would be shared
equally by the customer and bank as both of them have been at fault.
c bank would advise the customer
to recover the money from the forger who is office colleague of
the customer
d bank is liable for making
payment of a forged cheque and will have to restore the amount to
the credit of the account
e any of the above.
2 Your branch maintains a saving
bank account of Mr. Dharma, an illiterate person who wants to
go abroad for some time. He wants
to authorise his wife to operate the account. Which among the
following will be most
convenient/easy way to achieve the objective:
a power of attorney duly
registered with the Registrar of Assurances
b adding the name of wife to the
account and making the operations either or survivor
c authorising the another person
through mandate (a simple letter)
d making his wife nominee in the
account
e any of the above
3 Mr. Samendu has been
maintaining a current account with Corporate Bank for the last 3 years
with substantial balance of Rs.3
lac. Bank gets a confirmed report that he has filed an insolvency
petition. Bank also receives a
cheque of Rs.1.50 lac for payment:
a cheque will be returned by the
bank as payment will not be a payment in due course
b cheque will be returned as
property is now vested with official assignee
c cheque will be returned under
such doubtful circumstances
d cheques will be paid and
operations in the account will be permitted till the competent court
declares him insolvent
e none of the above
4 A partnership firm having its
current account with your branch withdraws cash in the morning
amounting to Rs.45000. At noon it
withdraws more amount of Rs.27000. In the evening yet
another withdrawal of Rs.28000 is
made by the firm. 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
b bank is not required to deduct
because the amount is not more than Rs.1 lac
c bank is not liable to deduct
because the amount of single withdrawl is less than Rs.1 lac
d bank is required to deduct as
the amount of each withdrawal is above Rs.25000
e none of the above
5 Your branch has granted a
demand loan of Rs.60000 to Sh. Banwari Lal against his term deposit
of Rs.1 lac. The branch has
received a court attachment order for Rs.50000 relating to this deposit.
Which of the following action
should be taken by the bank:
a since the deposit is already
under lien of the bank, bank should ignore the order
b since there is adequate balance
in the FDR account to meet the liability of the loan, the bank can
follow the instructions in the
attachment order after recovery of its own dues
c bank should seek specific
confirmation from court before adjustment of its dues
d the branch will meet the
attachment order liability on date of maturity of the FDR
e bank’s liability is of
contingent nature due to which the liability under attachment order will be
met first.
6 Sh. Des Raj a blind persons
approaches Meerut branch of Commercial Bank for opening a
current account as he is engaged
as commission agent in fruit business. The bank however
refuses to open the current
account giving the reason that such accounts are not permitted in the
light of practical difficulties
involved in operation of the account:
a Refusal of the bank is not
justified as a blind person is competent to contract and can also open
a current account
b Refusal of the bank is
justifiable in the light of practical difficulties.
c Refusal of the bank is
justified in the light of possible loss which the customer may incur
d b and c
e only c
07 A company is having its
current account with 3 branches of your bank and on a single days
makes cash withdrawals of
Rs.40000 from one branch, Rs.35000 from the 2nd branch and
Rs.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
b bank is not required to deduct
because the amount is not more than Rs.1 lac
c bank is not liable to deduct
because the amount of single withdrawl is less than Rs.1 lac
d bank is required to deduct as
the amount of each withdrawal is of 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
8 The exposure ceiling on
individual borrowers under the group approach in Indian banks from
March 31, 2002 as per RBI
directives is restricted to:
a 12% of the capital fund
b 15% of the capital fund
c 18% of paid up capital
d 22.5% of paid up capital
e 15% of the paid up capital
9 The term ARC used in Narasimham
Committee Report‑II
stands for:
a Asset restructuring corporate
b Asset re‑location company
c Asset reconstruction company
d Asset redeployment corporate
e none of the above
10 Which of the following types
of operations 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
11 Mr. Akash Khanna is having his
personal saving account with United Bank’s Chandigarh
branch. He is also the sole
trustee of Khanna Charitable Trust and operates the account of the
trust which is also maintained
with the bank. In connection with an important personal work he
proposes to proceed abroad for 6
months and seeks your guidance for smooth operations in the
accounts:
a he can give mandate in favour
of some of his friend or relative for operations in the accounts.
b he can execute a power of
attorney in favour of a known person for operations in both the
accounts
c he can give mandate or power of
attorney for his personal account
d he cannot delegate the powers
to any one in case of trust account and could leave some cheque
leaves properly signed for use in
case of trust account
e c and d
12 What is the amount of balance
in a deceased depositor’s account, where the bank, depending
upon the circumstances may ask
for a legal representation such as succession certificate, letter of
administration, probate:
a in case of joint survivorship
accounts, no requirement
b in case of nomination accounts,
no requirement
c in case of accounts with no
nomination or survivorship provision, discretion of the bank
d Banks cannot ask for such
representations
e a to c
13 A borrower in your branch has
created an equitable mortgage. The registration, under Section
125, of such a charge with
Registrar of Companies is:
a: Required to make it binding on
liquidator
b: Not required being oral
mortgage
c: Required sometimes when
memorandum of deposit is submitted
d: a and c
e Never required
14 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
15 A partnership firm wants to
open a Current Account with your branch, but it is not registered
with Registrar of Firms.
a Is the registration of a
partnership firm essential ?
b: It is not essential as it is
only optional
c: It depends on will of
creditors of the firm
d: It depends on will of the bank
e c and d
16 RBI regulates the money market
and SEBI regulates the capital market. Which segment is
regulated by IRDA, out of the
following sector:
a telecom b insurance
c banking d software
e b and d
17 In foreign exchange
transaction, which of the following is the basic buying rate:
a Bills buying rate
b TT buying rate
c Direct rate
d Indirect rate
e a and b
18 The cases of deceased
depositors where the claims have been received and 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
19 Which of the following kinds
of joint accounts cannot be categorized as an account opened
with survivorship clause:
a either or survivor
b anyone or survivor
c former or survivor
d letter or survivor
e none of the above
20 X opened an account with your
branch under the Senior Citizens Saving Scheme 2004 for 3
years. He needs the funds to meet
his medical expenses by raising a long 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
21 When a seller undertakes to
make the goods available for export, at his factory, such
arrangement is called:
a Ex‑works b FOB
c CIF d FOR on ship
e none of the above
22 Which among the following is
not correct in connection with the Lok Adalats, which have
come into prominence in the
recent past?
a proceedings before Lok Adalat
are deemed to be judicial proceedings under Civil Procedure
Code
b Lok Adalat has power to summon
and enforce attendance of witnesses
c Lok Adalat have the same powers
which are vested in a civil court under the Code of Civil
Procedure.
d Lok Adalats can entertain
pecuniary (financial) cases without any ceiling on the amount
e none of the above
23 International Bank Limited
negotiated documents worth Euro 15000 against a withoutrecourse
irrevocable letter of credit
issued by a bank in UK. When the documents were sent to the
opening bank in UK, these were returned
with the reason that the bill of lading and the insurance
certificate attached to the
documents are fake. Opening bank also refused to make the payment
against these documents, which
are otherwise as per terms of the letter of credit. What is the
position of International Bank
Limited?
a Bank has acted negligently by
accepting fake documents due to which it cannot recover the
money from opening bank
b Bank has the option to recover
the money from the seller who has tendered fake documents
c Bank can rightly claim the
money from opening bank under UCPDC provisions since the bank
was to see the regularity of the
documents and was not responsible for their being fake
d Bank will have to approach
international court
e a and b above
24 For financing a pump set,
which of the following standards will be taken into account?
a ISO 9001 b ISO 9002
c ISO 9004 d BIS
e BIS 2101
25 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
26 Liability of the guarantor in
a contract of guarantee is:
a: Unlimited where it is not
revoked
b: Irrespective of the liability
of the principal debtor it does not continue
c: Co‑extensive with that of
the principal debtor
d: a and c
e None of the above
27 Because the bank’s right under
general lien is an implied pledge, in case of default, the bank,
after giving a proper/reasonable
notice to the borrower can:
a: Convert general lien into a
particular lien
b: Sell the security under
certain circumstances without filing a suit
c: Can surrender its right, if
told by RBI
d: a and c
e None of the above
28 In case the pledgee fails to
re‑transfer
the possession of the goods to the pledger on repayment
of loan, within a reasonable
period and the goods are damaged, according to Section 161 of
Indian Contract Act:
a: Pledgee would be responsible
for loss, if any
b: Pledger would be responsible,
for loss, if any
c: Godown‑keeper would be
responsible
d: damage would be to the account
of both of them equally
e None of the above
29 For a charge hypothecation,
registration with Registrar of Companies u/s 125 of Indian
Companies Act:
a: Would be in bank’s interest
b: Registration not required as
hypothecation is just like a pledge
c: Registration is compulsory
because of floating charge
d: registration is compulsory
because it is charge on actionable claims
e None of the above
30 Your branch receives a cheque
of Rs.20000 drawn from SB account in favour of LIC of India by
your customer maintaining SB and
Current Account. SB account has been showing balance of
Rs.15678 and the current account
Rs.12940:
a cheque would not be passed as
the account on which cheque is issued does not have sufficient
balance
b cheque would not be passed as
bank cannot transfer the balance from one account to another
account even though there is
instruction from the account holder
c cheque would be passed after
speaking to the customer over phone
d cheque could be passed after
transferring the balance from one account to another
e any of the above, according to
the merit of the customer
31 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
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
32 What will be due date for a
bill dated 1.2.2004 payable 45 days after sight and the bills was
accepted on 6.2.2004:
a: 23.3.2004 b: 25.3.2004
c: 26.3.2004 d: 28.03.2004
e None of the above
33 For banks to enter into
insurance business, among others, the NPA level should be:
a not more than 10%
b not more than 9%
c not more than 5%
d reasonable
e none of the above
34 The maximum period for which a
certificate of deposit can be issued:
a 7 days
b 15 days
c 179 days
d not more than 12 months
e 3 years
35 Model Bank issued an FDR in
the name of Mr. X and his wife W. Mrs W comes to the bank
and request for premature payment
to meet the expenses on treatment of Mr. X who is admitted
to one hospital and cannot sign,
because of fractured hands:
a the request of W will be
considered on sympathetic consideration
b the request of W will be
considered on production of certificate from the hospital to the effect
that Mr.X is admitted
c the request of W will be turned
down altogether
d payment can be made after
verifying the facts and after obtain thumb impression of Mr. X in
the hospital, witnessed by the
attending Doctor
e none of the above
36 Corporate Bank has sanctioned
a loan of Rs.5 lac for purchase of a car to a lawyer. Under
which of the following categories
it will be classified:
a small business
b professional and self employed
c small scale service and
business enterprise
d self employed
e non‑priority sector advance
37 Production of oil seeds and
pulses is connected with which of the following:
a green revolution
b yellow revolution
c blue revolution
d white revolution
e none of the above
38 A cheque has been presented
through clearing house and bears special crossing of two banks.:
a: Drawee bank will pay to the
bank in whose favour special crossing appears first
b: Pay to either of the banks and
payment shall be in due course
c: Return the cheque with the
remarks crossed to two banks
d: a and b
e None of the above
39 A cheque has been endorsed in
favour of Z with the condition that payment of the cheque can
be made to him only when he
marries Y. In this case the drawee bank should ensure while
making payment that:
a: Z married Y
b: There is no need for bank to
ensure marriage of Z to Y
c: Drawer that marriage has taken
place
d: if cheque is presented for
payment, bank shall pay the cheque
e b and d
40 Bank International Limited had
granted a loan of Rs.65 lac to M/s Juary Fertilisers Ltd few
years back but due to problem
with the industry, the account could not be conducted properly
for few months and has become sub‑standard.
Party wants to settle the account with the bank to
make it legally binding on both
the parties without involving itself in a lengthy legal struggle.
Bank is also agreeable for their
proposal:
a they can enter into a
compromise settlement and get it approved from High Court of the State
b they can go to a Lok Adalat and
get the consent decree
c they can go to a notary public
and give declarations
d they can approach a Lok Adalat
of DRT for a consent decree
e any of the above
41 A cheque has been issued in
favour of A or order. At his request the drawer converts the order
to bearer and puts his small
initials to authenticate the cancellation:
a: The bank will make the payment
as mandate is clear
b: The bank will not make payment
as cancellation requires full signatures
c: The bank seek confirmation
from ask the drawer whether it is his signatures
d: a and b
e c and d
42 While providing finance to a
project, 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.
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.
43 Which of the following method
can be used to calculate the per capita income of a country:
a: Total family income / number
of family members
b: National income / total
population
c: Total income of various
industries / total number of industrial workers
d: Total Govt. revenue / total
population
e a and b
44 Which among the following
aspects are taken into consideration by RBI for its Prompt
Corrective Action (PCA), while
initiating any action under the scheme:
a capital to risk assets ratio
b non‑performing advances
c return on assets
d a and c above
e a to c above
45 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
46 Project A has higher fixed
cost than the project B. What will be true with regard to Break even
point of these project, 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
47 Under which section of Banking
Regulation Act 1949, every banking company has to submit
annual statement of all those
accounts which are lying under in‑operative category for the last 10
years (called unclaimed deposits)
to RBI:
a: 27 b: 26
c: 19(2) d: 15
e 12
48 A company has been formed to
undertake the business of software development. 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
49 When a banker is acting on the
standing instructions of a customer, their relationship is of :
a: An employer and an employee
b: An owner and a servant
c: A trustee and beneficiary
d: A principal and an agent
e Agent and principal
50 Under which of the following
methods of depreciation on fixed assets, 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
51 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. What should be importer
do:
a He must go for a swap of Aus
Dollar with Rupee
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
52 The methodology that focuses
on eliminating the defects and facilitating data driven decision
making:
a management by objectives
b customer relation management
c six sigma
d strategic management
e Total quality management
53 A bank carries positive gap in
its asset liability position i.e. rate sensitive assets are higher than
the rate sensitive assets. 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.
54 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. 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
55 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
56 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
57 A registered firm has certain
advantages over the non‑registered firms. Where is a partnership
firm registered:
a: Registrar of firms
b: Registrar of companies
c: Registrar of deeds
d: Sub‑registrar estates
e a or d
58 A banker should not pay the
cheques drawn by a customer who has been sentenced and sent
to jail for:
a: Rape
b: Criminal liability
c: Moral ground
d: Insolvency
e a and b
59 You are approached by a person
for opening an account in the name of an executor of a will.
You require which of the
following documents:
a: Registration certificate
b: Memorandum of association and
articles of association,
c: Probate
d: letter of administration
e None of the above.
60 What is a probate:
a: A will certified by a court
for settlement of property of the deceased.
b: It is will of the deceased
c: The last will of a person
certified by the legal heirs
d: a registered will of the
deceased
e None of the above.
61 U/s 26 of Negotiable Instruments
Act:
a: A minor can not draw
promissory note or a cheque.
b: A minor who has been admitted
to a partnership firm can draw a cheque .
c: A minor can draw, accept,
endorse and negotiate bills of exchange, promissory note or cheque
binding all parties except
himself.
d: a minor can be held liable for
the bill of exchange he has accepted
e None of the above.
62 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
63 Holder in due course is
defined u/s....of NI Act
a: 10 b: 9
c: 18 d: 8
e 13
64 Mr. X and Y are having a joint
account in which they have nominated Mr. A. On death of Mr.
X, Mr A approaches the bank for
payment?
a being nominee, payment would be
made to A
b Y being alive, payment would be
made to Y as survivor
c Y being alive and payment would
be made to nominee and Y jointly
d payment would be made to Y and
legal heirs of X
e payment would be made as per
succession certificate which has to be submitted
65 In which of the following
currencies, 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
66 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
67 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
68 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
69 In computer software, 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
70 What is the amount of loan
which can be extended against the security of a certificate of
deposit:
a 25% b 50%
c 75%
d No loan can be allowed
e none of the above
71 Which among the following is
not a condition for a case to be referred to Corporate Debt
Restructure forum:
a the aggregate exposure should
not be more than Rs.10 cr
b there should be atleast two
creditors
c the reference can be made by
any creditor having 20% or more share in the exposure
d the reference can be for
standard and sub‑standard
accounts
e none of the above
72 The receivables of various
loans and obligations are put together and distributed amongst
investors, in which of the
following:
a leasing
b factoring
c securitisation
d venture capital
e forfaiting
73 Popular Bank has issued a term
deposit receipt in the name of Mr. A and B to be operated as
`former or survivor’. A
approaches the bank for addition of name of Mr. X, his son and also
nominate Mr. Z his brother in
law. He claims that the money belongs to him?
a addition of name would be
allowed but not nomination
b nomination would be permitted
but not addition of name
c addition of name and nomination
would be permitted as request is from former
d without consent of B addition
or nomination cannot be accepted
e none of the above
74 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
75 Which of the following is not
correct with regard to prevention of Money Laundering
provisions:
a it is acquiring, owning,
possessing or transferring any proceeds of money of crime
b it is a process of converting
money obtained illegally to appear to have originated legitimate
sources
c India has passed the Prevention
of Money Laundering Act to identify and control the
transactions of money laundering
d Records relating to money
laundering transactions are to be preserved by banks for 20 years
e Offences under money laundering
are cognizable and non‑bailable.
76 The minimum amount of a
certificate of deposit can be:
a Rs.1 lac b Rs.3 lac
c Rs.5 lac d Rs.10 lac
e no minimum is prescribed
77 The holder of a negotiable
instrument is holder in due course if:
a: He receives the instrument in
good faith and without negligence
b: He receives the instrument for
lawful consideration
c: He receives the instrument
before its maturity
d: All the above
e none of the above
78 If a promissory note is
payable in instalments, the period of grace for payment will be
available:
a: Only once
b: On each instalment
c: Only on last instalment
d: no grace period available for
promissory note
e None of the above
79 Under Gold Card scheme for
exporters, based on credit worthiness of the card holder, which
of the following is not correct:
a banks could consider waiver of
collateral security
b banks could consider exemption
from ECGC guarantee cover
c requests for credit would be
considered quickly maximum within 7 days
d in principal limits would be
set up for 3 years
e provision for stand‑by
limit of 20% to meet urgent credit needs would be made.
80 Repayment of loans under
Swarnjayati Shahri Rozgar Yojna should be made in:
a 2‑3 years b 3‑5 years
c 3‑7 years d 5‑7 years
e more than 6 years
81 Repayment under the Scheme for
Liberation and Rehabilitation of Scavengers (SLRS) has to be
in a period of:
a 2‑5 years b 3‑5 years
c 3‑7 years d 5‑7 years
e more than 7 years
82 For which among the following
the bank provides relief in interest rate to the borrower in
education loan?
a when he is from a very poor
family
b when loan is sanctioned for a
highly prospective education from job aspects
c when loan is repaid during the
moratorium period
d when interest portion of the
loan is repaid during the moratorium period
e when interest as well as
principal of the loan is paid before moratorium
83 Under which kind of following
mechanisms, the DSB returns being submitted by banks to RBI,
fall:
a early alert system
b on‑site surveillance
c off‑site supervision
d risk based supervision system
e prevention of money laundering
84 Which of the following cannot
enter into a valid contract?
a a person temporarily of unsound
mind and presently of sound mine
b a pardanashin lady
c an illiterate person
d a blind person
e a person of age of 17 plus
years
85 Dearness allowance increase
for bank employees is linked to which of the following:
a General increase in the
inflation
b wholesale price index
c consumer price index
d consumer price index for
industrial workers
e wholesale price index for
industrial workers
86 Preservation of bank records
is mandatory under which of the following Acts?
a RBI Act 1934
b Preservation of Books Act 1902
c Indian Evidence Act
d Banking Regulation Act 1949
e Companies Act 1956
87 Which of the following
accounts are reported under CVC directions:
a willful defaulters of Rs.10 lac
and above
b willful defaulters of Rs.25 lac
and above
c loan frauds of Rs.10 lac and
above
d loan write‑off of
Rs.10 lac and above
e all the above
88 Under the rating system called
CAMELS, the term `M’ stands for which of the following:
a management of assets and
liabilities
b management of non‑performing
assets
c management of human resources
d management quality
e management policies
89 Which of the following
documents relating to a loan transaction, can be kept blank by a bank:
a: hypothecation agreement
b: Memorandum of mortgage
c: Share transfer deeds
d any of the above
e none of the above
90 A loan agreement is executed
but it is not stamped properly:
a: It can be stamped later on
after payment of penalty as per provision of State Stamp Acts and
can be treated as a valid
documents, after obtaining permission of the collector of stamp duty.
b: The court can allow the bank
to pay the duty with fine and validate the document
c: Since at the time of
execution, the stamp duty has not been paid, this cannot be treated an
agreement
d: a and b
e: a to c any.
91 When there is an agreement in
writing for creation of an equitable mortgage between the
parties and this forms a part of
an equitable mortgage, the agreement in itself is an operative
instrument. This is not simply an
evidence:
a: For such a document the
registration is necessary
b: For such a document registration
is not necessary
c: This depends upon the will of
the bank
d: a and b
e None of the above
92 A banking company can acquire
shares in a company subject to which of the following ceiling:
a not exceeding 30% of the
capital of the bank or 30% of the capital of the company, whichever
higher
b not exceeding 30% of the
reserves of the bank or 30% of the capital of the company whichever is
lower
c not exceeding 30% of the paid
up capital and reserves of the bank or 30% of the capital of the
company whichever is lower
d 30% of the capital of the
company
e 30% of the authorised capital
of the bank or 30% of the capital of the company
Problem.
Following are the financial
figures of a concern as on 31.03.2003
Particulars. Rs.
Capital 8,000
Sundry Debtors 10,000
Cash in Hand 3,000
Machinery 17,000
Prepaid expenses 1,000
Fixed deposit with bank 5,000
Bills payable 2,000
Debentures 22,000
Expenses outstanding 4,000
Stock 4,000
Sundry creditors 4,000
Based on this information, please
work out the following:
93 Net working capital in this
case will be:
a Rs. 5,000 b Rs. 2,000
c Rs. 13,000 d Rs. 22,000
94 From the financial figures
given in the above question total working capital works out to :
a Rs. 23,000 b Rs. 36,000
c Rs. 22,000 d Rs. 14,000
e Rs.12000
95 If in the above problem, the
sales are Rs.115000, the working capital turnover ratio would be:
a 3 b 5
c 7 d 8
e 9
96 The liquidity aggregate L1, as
per recommendations of YB Reddy Committee represents which
of the following:
a M 1 + deposits of financial
institutions
b M 1 + deposits of post office
c M 2 + deposits of financial
institutions and post office
d M 3 + deposits of post offices
excluding NSCs
e M 3 + deposits of financial
institutions and post office
97 In a real time gross
settlement system, which is true with regard to the transmission,
processing and settlement of
instruction:
a it is carried through a net
work provided by SWIFT
b it is carried on a batch‑system
basis
c it is carried on a plat form
provided by leading public sector banks
d it is carried on a continuous
basis as and when the instructions are received and accepted by
the system
e it is carried when authorised
by RBI
98 Proceeds of goods and services
exported by an exporter are required to be brought to India
within 180 days normally. But a
status holder can avail the normal repatriation period for export
proceeds up to ___, instead of
normal 180 days:
a 360 days b 300 days
c 270 days d 225 days
e 200 days
99 In a computer system, the
security is important for which of the following reasons:
a to secure the data
b to improve the reliability of
the data
c to improve the quality of data
d to analyse the data
e all the above
100 Corporate Bank decides to
allow a cash credit limit of Rs.25 lac to a trading firm in one of its
branches in Jaipur. The proposes
to secure the loan by mortgage of a commercial property
(located in Kolkata) of the equal
value, in the name of one the partners in the firm, who is sick
and is admitted in hospital. The
firm wants the equitable mortgage to be created in the hospital
itself:
a can be accepted, if the doctor
certifies the illness and it one of the witness.
b cannot be created because the
hospital is not part of the bank branch
c can be created if the hospital
is located at a notified centre
d can be created if the title
deed of the property is handed over to the bank officials
e can be created if the hospital
would have been in Kolkata instead of Jaipur as property is
located in Kolkata
Answers : Test No.02
01 d 02 c 03 d 04 b 05
b 06 a 07 e 08 b 09 c 10
d 11 e 12 c
13 a 14 c 15 b 16 b 17b
18 d 19
e 20 a 21 a 22 d 23 c 24
d
25 e 26 c 27 b 28 a 29
c 30 a 31 b 32 b 33 d 34
d 35 d 36 e
37 b 38 c 39 b 40 d 41
b 42 c
43 b 44 e 45 b 46 b 47 b 48
e
49 e 50 a 51 c 52 c 53
b 54 a 55 c 56 b 57 a 58
d 59 c 60 a
61 c 62 a 63 b 64 d 65
e 66d 67
a 68 c 69 a 70 d 71 a 72
c
73 d 74 a 75 d 76 a 77
d 78 b 79 c 80 c 81 c 82
d 83 c 84 e
85 d 86 d 87 b 88 d 89
c 90 a 91 a 92 c 93 c 94
a 95 b 96 d
97 d 98 a 99a 100 c
