Professional Documents
Culture Documents
1) Some important relationships based upon the nature of business conducted by the banks are
given below.Match the same:
Position
of Bank
Type of Transaction
1
Position of
Customer
b) Mortgagee - Mortgagor
d) Bailee - Bailor
f) Creditor - Debtor
h) Trustee - Beneficiary
j) Principal - Agent
I) Bailor - Bailee
n) Lessee-Lessor
p) Hypothecator Hypothecatee
19) According to the World Trade Organisation (WTO). India has to allow foreign
banks to open branches every year.
a) 8
b) 10
c)12
d) 15
20) "Once a bearer is always a bearer" as per Section 85 (2) of the Negotiable
Instrument Act Is applicable to?
a) Cheque
b) Draft
c) Bill of exchange
d) Promissory Note
e) All of the above
21) Under which of the following documents the bank collects supply bills:
a) Mandate
b) Letter of Authority
c) Indemnity Bond
d) Power of Attorney
22) A Company's registered office Is In Chennai and its factory Is at Bangalore. The
company availed a bank loan In Mumbai. Equitable mortgage of company's Immovable
property Is to be created at.
a) Chennai
b) New Delhi
c) Mumbai
d) Any notified centre
23) What is the upper age limit for SC / ST Women under PMRY scheme?
a) 30 years
b) 40 years
c) 45 years
d) No limit
24) What is the period upto which packing credit is normally Initially granted?
a) 60 days
b) 90 days
c) 180 days
d) 360 days
25) What is the amount for issuing drafts when PAN / GIR Is required?
a) Rs. 10,000 and above
b) Rs. 25,000 and above
c) Rs. 50,000 and above
d) Rs. 1 lac and above
26) Which of the following reasons should be mentioned In case a cheque has been
returned for shortfall in balance in the account?
a) Refer to drawer
b) Insufficient funds
c) present again
d) effects not clear
27) Which of the following sectors Basel - II norms relates to?
a) Banking
b) Capital Market
c) Insurance
d) Foreign Investments
28) What are the penal charges levied In case of irregular repayment of loan
Instalments under PMRY loan accounts?
a) 1%
b) 2%
c) 3%
d) No penal charges
29) Which of the following is correct in relation to "Spot Rate"?
a) Delivery on the same day of transaction b)Delivery on next day of transaction
c) Deliver two days after transaction
d) Any future dates after two days
30) Under which of the following categories of assets, prepaid expenses are shown:
a) Current Assets
b) Miscellaneous assets
c) Fixed Assets
d) None of these
31) On the basis of Purchasing Power Parity (PPP), India is the third largest spender
on defence behind:
a) Russia and Saudi Arabia
b) Pakistan and Iran
c) US and China
d) Israel and North Korea
32) Press Note 18 is related to:
a) Investment
c) Revenue Deficit
33) Which city has been declared the world's first "city of literature" by the UNESCO?
a) London
b) France
c) Edinburgh
d) Rome
34) Which is the largest sector of providing employment In India?
a) Textile
b) Railway
c) Defense
d) Steel
35) In India foreign banks can't hold more than - of the banking assets.
a) 5%
b) 10%
c) 15%
d) 20%
36) What Is the maximum amount per single transaction under Electronic Funds
Transfer (EFT)?
a) Rs. 50,000
b) Rs. 1 lac
c) Rs. 5 lac
d) No limit
37) A term deposit for Rs. 10,000/- in the name of A & B opened In the style of M/s
Goodwill & Co. A wants to delete the name of B and Include C.
a) Possible with mandate of both
b) Not possible
c) Open a new account
d) None of these
38) If 75% of the Net profit Is transferred to reserve it means:
a) Sizeable portion of the profit is retained in the business
b) The business is earning good profit
c) None of these
39) Which of the following documents is required for settlement of deposit account if
the account holder is died without writing a will?
a) Letter of Authority
b) Letter of Administration
c) Letter of Execution
d) None of the above
40) Which of the following authority Is appointed In the event of liquidation of a
company?
a) Administrator
b) Receiver
c) Liquidator
d) Executor
41) Which of the following Is Garnishee under a Garnishee Order? .
a) Judgement Creditor
b) Judgement Debtor
c) Bank
None
d)
42) What Is the minimum period of notice required under Securitisation and
Reconstruction of Financial Assets and Enforcement Security Interest Act before sale
of immovable assets?
a) 15 days,
b) 30 days
c) 45 days
d) 60 days.
ANSWERS
1
8
15
22
29
36
e
a
c
d
c
d
2
9
16
23
30
37
f
a
f
c
a
a
3
10
17
24
31
38
a
h
f'
c
c
b
4
11
18
25
32
39
a
d
f
c
a
b
5 e 6 h
12 9 13 b
19 c 20 a
26 b 27 a
33 c 34 a
40 c 41 c
7
14
21
28
35
42
a
i
d
d
c
b
c) FCNR A/c
d) NRO A/c
6) Composite cash credit system with liquidity for agriculture has been introduced on
the recommendations of which of the following committees:
a) Kalia Committee
b) Narasimham Committee
c) R.V. Gupta Committee
d) S. L. Kapoor Committee
7) Debt equity ratio is 3:1, the amount of total assets Rs.3o lac, Current ratio is 1.5:1
and owned funds Rs. 5 lac. What is amount of Current assets:
a) 5 lac
b) 10 lac
c) 15 lac
d) None
8) A balance sheet shows total liabilities at Rs. 30 lac, Current liabilities at Rs. 10 lac
and long term debt at Rs. 10 lac and debit balance of profit and loss a/c at Rs.2Iac.
The net worth is :
a) RS.41ac
b) Rs.8 lac
c) Rs. 61ae
d) None of these
9) Total assets of a unit amount to Rs. 50 lac and the aggregate of Net worth and
Term liabilities is Rs.35 lac, what will be the amount of Current assets if Current
ratios 2:1.
a) RS.30 lac
b) Rs.25 lac
c) Rs.50 lac
d) None of these
10) You come across a cheque on which neither the words bearer nor order are
written. You will make the payment of this cheque by treating it as:
a) A bearer cheque
b) An order cheque
c) Both the above
d) None of the above
11) A and B are having FDR of 3 years payable to either or survivor. Six months after
issue both of them request for replacement of their names by the names of their
sons.
a) Bank would not accept the request as this is tempering with original agreement.
One name must continue:
b) Bank will agree to the request. c) Bank will obtain court's opinion d) None of the above
12) There is credit balance in the account for Rs. 3000. Three cheques with amount of
Rs. 1200, 1100 and 1000 are presented simultaneously. You will pay the cheques with
amount of Rs.:
a) Rs. 1200 only
b) Rs. 1000 only
c) Rs.11000nly
d)
Rs.1200andRs.1100
13) On the death of FD holder his nominee claims the payment before maturity, but
the legal heirs
a) The bank will not pay
b) The bank will not pay because the legal heirs may also claim the amount on maturity
c) Bank may pay as now he has all rights of the depositor
d) None of the above
14) Which one of the following is not included in the assets of a firm:
a) Stock
b) Machinery
c) Goodwill
d) None.
15) If the company has to create an equitable mortgage in favour of the bank for
security of a loan, who will come to the bank to deposit the original title documents
e) None of these.
30) Which Committee had recommended the Negotiated Dealing system?
a) Vyas Committee
b) R.V. Gupta Committee
c) Dr. A.S. Ganguli Committee
d) R.H.Patii Committee
31) Who prescribes business hours for various types of forex business at each centre
to be observed by a bank (authorised dealer) for the branches undertaking forex
business?
a) Reserve Bank of India
b) Concerned bank itself
c) Lead Bank
d) State Bank of India.
32) RBI has increased the limit for remittance abroad by resident Indian for
miscellaneous purpose from US $ 500 to - where the resident Indian need not
comply with any documentation formalities:
a) US $ 1000
b) US $ 2000
c) US $ 3000
d) US $ 5000
33) Banks which qualify to declare dividends would be eligible to pay dividend
without obtaining the prior approval of RBI and the dividend payout ratio should not
exceed __ percent.
a) 20
b) 25
c) 30
d) 33.3
34) The amount of Laghu Udhami Card for SSI unit is proposed to be increased from
Rs. 2 lac to Rs. - w.e.f. March 01, 2004:
a) 4 lac
b) 5 lac
c) 7.5 lac
d) 10 lac
35) Repayment Period for PMRY loan:
a) 3 years
b) 3 to 7 years
c) 7 years
d) 10 year
36) In case of dishonour of cheque due to Insufficiency of fund the punishment under
Section 138 of N.I. Act:
a) Twice the amount of cheque.
b) One year imprisonment
c) Twice the amount of cheque or one year imprisonment.
d) Twice the amount of cheque or two years imprisonment or both.
37) For opening a/c of Public Ltd. Co. we do not ask Introduction. Why?
a) People know about Public Ltd. Co.
b) Only individual seeks introduction
c) Public Ltd. Co. has separate legal entity
d) None of the above
38) Where the registration of firm is to be done:
a) Registrar of Company
b) Registrar of Society
Assurance
d) Registrar of Trust
e) Registrar of Firm.
c)
Registrar
of
39) How much time is allowed to drawee for accepting Usance Bill (excluding holiday).
a) 72 hours
b) 3 days
c) 24 hours
d) 48 hours
40) For which type of Negotiable Instruments the grace period is available for
calculating due date.
a) Cheque
b) Demand Promissory Note c) Demand Bill of Exchange d) Usance bill of exchange
41) Bill of Lading is:
a) Not negotiable instrument
these
d)
d) None of
Should
be
47) A minor aged 15 year comes to your branch for payment of cheque for Rs.
27,000/-. The signature of drawer tally with your record. As a desk officer, can you
make the payment?
a) No, as the amount of cheque is high.
b) No., as the minor cannot give valid discharge.
c) Yes, minor cannot deny taking payment
d) Make the payment after seeking confirmation from the drawer
48) Your locker holder is sick as such he gives an authority in favour of his minor son
to operate the locker:
a) Operation of the locker will not be allowed
b) Operation in locker can be done by locker holder only
c) Allow operation as the minor has the authority.
d) Allow in presence of a bank officer only.
49) The maximum amount that can be deposited in Public Provident Fund accounts
for getting benefits u/s 80cc of Income Tax Act:
a) Rs.25000
b) Rs.35000
c) Rs.50000
d) Rs.70000
5O) The accidental coverage available In case of death in KCC:
a) 25,000
b) 50,000
c) 1 lac
d) None
51) Limit of Housing Loan for public for construction, renovation and reconstruction:
a) 10 lakh
b) 20 lakh c) 251akh d) None
52) Under PMRY Scheme reservation for SC/ST:
a) 25%
b) 22.5%
c) 27%
d) 40%
d) No collateral security is to be taken for individual loans upto Rs 1 lac and group loan upto Rs 5
lac
56) Under Kisan Credit Card Scheme (KCC), the premium for insurance coverage is Rs.
__ per year, to be borne by the farmer in the ratio of ---:
a) 10 and 1:1
b) 15 and 1:1
c) 15 and 1:2
d) 25 and 1:2
57) The status of Tiny sector is to be given to SSI units whose investment in plant and
machinery Is Rs. _lac, irrespective of the location of the unit:
a) Ten lac
b) Fifteen lac
c) Twenty lac
d) Twenty five lac.
58) Minimum land holding for financing of tractors upto 35 hp has been reduced to __
acres of perennially irrigated land:
a) 5
b) 4
c)3
d) 2
59) RBI has prohibited stapling of currency notes by a directive issued under___.
a) Section 35 A of BR Act.
b) Section 35 A of RBI Act
c) Section 35 A of NI Act.
d) Section 35 A of Indian Currency Act.
60) For tractors above 35 hp, the minimum land holding requirement is __ acres of
perennially Irrigated land:
a) 6
b) 8
c) 10
d) 12
61) The firm has Current Assets of Rs.100 and Current Liabilities of Rs 50. The Quick
Ratio is 1.50:1. What Is the amount of Inventories?
a) 20
b) 25
c) 30
d) 35
62) An SSI unit has been sanctioned Working capital limit of Rs 60 lac. What is the
Annual Projected Turnover of the unit Rs.___ :
a) 1 crore
b) 2 crore
c) 3 crore
d) 5 crore
63) Debt Service Coverage Ratio (DSCR) denotes - position of the firm:
a) Profitability
b) Solvency
c) Liquidity
d) None of these
64) Total working capital requirement of 551 units under the turnover method of
working capital assessment, would be equivalent to requirement of minimum __ of
the annual output value:
a) 1 month
b) 2 months
c) 3 months
d) 4 months
65) What is the effect of Cash purchase of raw materials is regards Current Ratio?
a) No effect on current ratio
b) Decrease in current ratio
c) Increase in current ratio
d) Improve the Current ratio by the % material now purchased to the overall stock
e) Deteriorate the Current ratio by the % of material now purchased 10 the overall stock.
86) Full form of PCA:
a) Prompt Corrective Action
c) Potential Core Account
67) Time limit for disposal of loan application of SSI unit for credit facility more than
5 lacs:
a) Fortnight b) 5 weeks
c) 8-9 weeks d) 10 weeks e) None of these
68) Under Swarna Jayanti Shahri Rozgar Yojana (SJSRY), the agency which processes
the applications is :
a) RBI
b) DRDA
c) DIC
d) Urban Local Body / Municipal Corp.
69) Under KVIC scheme, the margin money is kept in the shape of fixed deposit
receipt for _:
a) 1/2 year
b) 1 year
c) 2 years
d) 3 years
70) Who control Import of goods?
a) DGFT
b) RBI
c) RBI & DGFT
d) None of these
71) When the price of dollar raised from Rs. 48 to Rs. 55 who will benefited?
a) Importer
b) Exporter
c) Exporter in terms of rupee
d) None
72) Which party is not in L/C?
a) Importer
d) Confirming bank
b) Exporter
e) Central Stamp Office
c) Issuing bank
c) 1950
d) 1951
d) 2003-2008
94) Which of the following documents is issued by the Registrar of the Companies?
a) Memorandum of Association
b) Certificate of Incorporation
c) Articles of Association
d) None of the above
10
95) A Garnishee order is served on your branch at 10.30 a.m. on 1-1 January, 2004
attaching all sums owing and accruing to Mr. Trehan - a current account holder.
Which of the following transactions/accounts will be attached by the Garnishee
order?
a) A deposit account maintained by Mr. Deepak with London branch of the bank
b) At 10.15 a.m. a sum of Rs. 5000/- has been paid in by the party which was not posted in the
ledger by the time the Garnishee order was received by the bank.
e) At 12.45 p.m. the same day, at T.T. for Rs. 12000 for the credit of the party's account is
received.
d) None of the above
96) A Negotiable in!trument payable to bearer is negotiable by:
a) Delivery
b) Transfer deed
c) Endorsement
d) Endorsement and delivery
97) For demand bill of exchange, the limitation period begins from:
a) Three years from date of default
b) Three years from the date of document
c) Three years from date of sanction
d) None of the above
98) Vostre accounts mean:
a) Rupee accounts of foreign banks in India
b) Rupee accounts of Indian banks in foreign countries
c) Foreign currency accounts of Indian Banks abroad
d) None of the above
99) The Karta of HUF can do which of the following, in relation to business of the
family:
a) Can borrow money
b) Can sign documents
c) Can create charge on properties
d) All the above
100) In SSI financing the banks are to ensure minimum credit of _% of their total
credit to SSI, for units having investment In plant and machinery upto Rs.5 lac:
a) 40%
b) 25%
c) 15%
d) 10%
11
ANSWERS
1
5
9
13
17
21
25
29
33
37
41
45
49
53
57
61
65
69
73
77
81
85
89
93
97
B
E
A
C
C
C
C
A
D
C
C
C
D
B
D
B
A
C
B
E
C
C
D
B
B
2
6
10
14
18
22
26
30
34
38
42
46
50
54
58
62
66
70
74
78
82
86
90
94
98
A
C
B
D
A
C
D
D
D
E
D
B
B
D
B
C
A
A
C
C
B
D
A
B
A
3
7
11
15
19
23
27
31
35
39
43
47
51
55
59
63
67
71
75
79
83
87
91
95
99
D 4
C
8
A 12
D 16
A 20
D 24
B 28
B 32
B 36
D 40
C 44
C 48
A 52
C 56
A 60
B 64
C 68
C 72
A 76
A 80
D 84
B 88
C 92
B 96
D 100
C
B
D
D
D
C
C
D
D
D
D
C
B
C
A
C
D
E
B
D
B
D
C
A
A
12
MULTIPLE CHOICE 02
1) Ramsharan and Rajrani have a joint account with the mandate 'former or survivor'. Both of
them die in an accident simultaneously. There is no nominee in the account. The balance is
payable to :
a) Legal heirs of Ramsharan and Rajrani after taking joint discharge
b) Rajrani
c) Ramsharan & Rajrani on pro-rata basis
d) None of the above
2) Rohit and Mohit are two minors and want to open self operated joint account and both have
completed the age of 10 years and are literate:
a) Account will be opened with either or survivor instructions.
b) Account cannot be opened under any circumstances.
c) Account can be opened after taking under taking from the guardian.
d) Account can be opened with the permission of the court.
e) Account can be opened if they belong to same family and operating instructions are jointly operated
by both.
3) Nomination facility is provided under Banking Regulation Act. Who cannot be a nominee in any
deposit account?
a) Male Minor
b) Female Minor
c) Blind
d) All of these
e) None of the above.
4) Which of the following can endorse a negotiable instrument?
a) A Minor
b) Married woman
c) An illiterate person
d) Blind persons
e) All the above
5) Conducting the affairs of an organisation in a transparent manner which gives a fair deal to all
the shareholders I stakeholder is part of:
a) Corporate Governance
b) Corporate Restructuring
c) Securitization
d) Know Your Customer guidelines.
e) None of these
6) A Stale Bill of Lading is one:
a) Which is presented to the Bankers after 21 days from the date of shipment.
b) Which is presented to the bankers after 15 days from the date of shipment.
c) Which is presented to the Bankers after 20 days from the date of shipment.
d) Which is a stolen Bill.
7) Banker's lien:
a) A special type of mortgage
c) A hypothecation transaction
b) An implied Pledge
d) None of the above.
d) None
9) A Public Ltd. Co. applied for cash credit limit from United Bank of India, Kolkata. A Director
of the company told the bank that the compa"y was having immovable property situated at
Mumbai am! its registered office was at Chennai. Where will the charge with ROC be got
registered?
a) Registration of mortgage charge should be with the Registrar of the Companies in whose
jurisdiction the properties are situated.
b) Registration of mortgage charge should be with the Registrar of the Companies where the head
office of the bank is located
c) Registration of mortgage charge should be with the Registrar of the Companies at the place of the
branch from where the limit is being sanctioned.
d) Registration of mortgage charge should be with the Registrar of the Companies at the place where
the company is having its registered office.
10) To open an account of an 'Administrator' the Bank will scrutinize which document:
a) Probate
b) Succession Certificate
c) Letter of Administration
d) Acceptance letter by Administrator
13
11) To prevent slippage of accounts in NPA category, RBI has designed broad framework
detailing preventive and corrective measures. One of the measures is introduction of new
asset category between 'standard' and 'substandard'. The new category is _:
a) Special Mention Assets category;
b) Special Mention Standard Assets category;
c) Special Mention Sub-Standard' Assets category
12) In an account of a Minor operated by guardian, after the death of guardian, the balance:
a) Cannot be paid to the Minor even though he has completed the age of 10 years.
b) Can be paid after obtaining Minor's signature.
c) Can be paid after a declaration from the guardian.
d) Can be paid if he is of 10 years of age as per RBI directives.
e) None of the above.
13) Noting and Protesting is not applicable to _:
a) Promissory Notes
b) Bills of Exchange
e) None of these
14) Import licence indicates:
a) Total amount upto which imports can be made.
c) Only FOB value of imports
c) Cheques
d) Foreign Bills
15) After the death of account holder bank is bound to inform the nominee:
a) If for 6 months nominee does not turn up in deposit account.
c) Possession of stocks
19) A safe custody account in the name of minor can be opened only in respect of
a) Govt securities
b) A term deposit receipt
c) Company shares
d) All the above (a) to (c)
e) None of these.
20) What is 'Foreclosure'?
a) On default by the mortgagor to repay the debt, the mortgagee has a right to get a
decree from the court that the mortgagor be debarred forever to redeem the property.
b) To recover the loan from the borrower
c) To enforce the mortgage through court of law.
d) To stop the borrower to sell the mortgaged properly.
21) When is the remission on stamp duty of bill available?
a)
When the bill represents genuine trade transaction.
b)When the Usance period of bill is not more than three months.
c)When the bill is routed through banking channel.
d) All the (a) to (c) above
e) None of these.
14
22) While opening accounts of Executors and Trustees to the estate of deceased person, bank
should scrutinize _:
a) Trust deed
b) Orders of charity Commissioner
c) Probate
d) All of these
e) None of these
23) Stamp Duty on which of the following documents does not vary from state to state?
a) Mortgage agreements
b) Hypothecation Agreements
c) Guarantee agreements
d) Bills of Exchange
e) None of these
24) Which among the following is not found 'In the Memorandum of Association of a Company?
a) Objects of the company
b) Authorised capital
c) Borrowing powers of Directors
d) Registered Office
25) Your Bank comes to know that the security hypothecated for an advance granted to a
borrower is being under disposal I sold by the customer. What is the most effective action bank
should take?
a) Get a stay order from the court;
b) Report the matter to the police.
c) Convert hypothecation into pledge and take possession.
d) Report the matter to Head Office.
e) None of these
26) Stamp duty on a Usance Promissory Note depends on:
a) Tenor and the amount
b) Only the amount
c) Only the tenor
d) All of the above
e) None of these
27) Limitation period is case of pledged goods is:
a) 3 years from the date of pledge.
b) 3 years from the date of documents.
c) 5 years from the date of pledge.
d) 5 years from the date of documents.
e) None of these
28) A Public Ltd. Co. applied for cash credit limit from United Bank of India, Kolkata, and
offered the immovable property situated at Mumbai by way of English mortgage. A Director of the
company told the bank that the company was having its registered office at Chennai. At what
place will the mortgage be registered?
a) Registration of mortgage with registrar of assurances should be done at the place where the
Registered office of the company is located.
b) Registration of mortgage with registrar of assurances should be done at the place where the branch
of the bank is located Le., from where the limits are to be sanctioned.
c) Registration of mortgage with registrar of assurances should be done at the place where the
property is located.
d) It is the discretion of the bank sanctioning the credit facilities to get the mortgage registered at
the place is convenient.
30) PNB has opened an Current account with Bank of America in New York in US $ for carrying
out its day to day operations. For Bank of America, this account is known as ?
a) Vostro Account
b) Lora Account
c) Nostro Account
d) Mirror account
e) Escrow Account
31) Documents of Title to goods are transferable by:
a) Endorsement and delivery
b) Delivery
d) None of these
c) Endorsement
15
32) Which of the following Business Group has taken over L&T's cement department Altra Tech
Samco Ltd.?
a) Aditya Birla Group
b) Tata Group
c) JK Group
d) BK Birla Group
e) None of these
33) India is the largest producing country of:
a) Soyabean
b) Milk
c) Green Vegetables
d) Fish
34) When companies release their public issues, the word 'underwriter' is mentioned. What does
the word 'underwriter' mean:
a) This is the name of the firm, which prepares draft for advertisements.
b) These are bankers of the companies, which sell application papers.
c) These are, the brokers/firms or Banks, which guarantee the selling of stocks.
d) These are the legal advisers of companies.
e) None of these
35) Which of the following foreign banks has been allowed to purchase UTI shares ?
a) Bank of America
b) BNP
c) Citibank
d) HSBC
e) Bank of Tokyo
36) The Union Cabinet approved the proposal to introduce a bill to establish in
independent, paving the way for the long-awaited pension reforms.
a) Pension Commission of India
b) Pension Fund of India
c)Pension Development Board
d)Pension Fund Regulatory and Development Authority
e) None of these
37) Last year, a bank was fined by RBI for certain violations. Out of the following which bank
was fined and for what type of violation?
a) ABN Amro, for F'EMA violation
b) ABN Amro, for KYC violation
c) Global Trust Bank for FEMA violation.
d) Giti Bank Group, for KYG violation
e) SBI, for violation at their USA branch concerning Money Laundering.
38) PNB has opened an current account with Bank of America in New York in US $ for carrying
out its day to day operations. For PNB, this account is known as?
a) Vostro Account
b) Loro Account
c) Nostro Account
d) Mirror account
e) Escrow Account
39) ISRO and Airport Authority of India are developing a new satellite-based navigation system,I
which will help enhance air safety while allowing more aircraft to operate in the Indian skies
simultaneously.
a) Varun
b) Gagan
c) Garud
d) Dolphin
e) None of these
40) Who among the following has been named as head of the three-member Investment
Commission, set up by the finance ministry to attract @ 150 billion of FDI?
a) Azim Premji
b) Mukesh Ambani
c) LN. Mittal
d) N. Narayanmurthy
b) Ratan Tata
41) Loss before charging depreciation is known as:
a) Cash Loss
b) Operating Loss
d) Accumulated Loss
e) None of these
42) Transfer of an interest in specific immovable property for the purpose of securing repayment
of money advanced by way of loan is known as:
a) Pledge
b) Hypothecation
c) Lien
d) Set-off
e) None
16
43) An 80 years lady is having an FDR for Rs 40,000/- In her name against which she has raised
75 % loan. Due to her old age, she approaches you with a request to add the name of her
daughter. How will you handle the request of the lady?
a) Request of the lady will be accepted and the name of her daughter will be added.
b) Request of the lady will be accepted and the name of her daughter will be added, if her daughter is
not a minor.
c) Request of the lady cannot be accepted till the loan is outstanding
d) Request of the lady can be accepted if her daughter is ready to give the guarantee for repayment of
the loan.
44) Minimum number of members in an SHG under PMRY group is
a)5
b)10
c)15
d) None of these
17
ANSWERS
Q
1
5
9
13
17
21
25
29
33
37
41
A
A
A
D
C
D
D
C
A
B
D
A
Q
2
6
10
14
18
22
26
30
34
38
42
A
E
A
C
B
C
C
A
A
C
C
E
Q
3
7
11
15
19
23
27
31
35
39
43
A
E
B
A
E
8
D
E
A
D
B
C
Q
4
8
12
16
20
24
28
32
36
40
44
A
E
B
A
E
A
C
C
A
D
D
B
18
MULTIPLE CHOICE 03
1) Matured, but not paid, tenn depositsare treated as:
a) Demand Liability
b) Time Liability
d) Contingent liability
e) None of the above
c) No Liability
5) The relationship between banker and customer in case of Safe Deposit Vault transaction is that
of:
a) Bailor Bailee
b) Agent Principal
c) Trustee - Beneficiary
d) lessor - lessee
e) Debtor Creditor
6) One of the Trustees of a Trust maintaining an account with our Bank is adjudged as insolvent.
A cheque signed by him was presented through clearing after you received the notice of
insolvency of the trustee. What will you do?
a) The cheque will be returned with the reason "trustee declared insolvent"
b) The cheque can be paid safely
c) The cheque would be returned with the reason "confirmation from the official assignee is available".
d) Cheque will be paid if the other solvent trustees give their consent
e) The matter will be referred to Head Office.
7) Loss before charging depreciation is known as:
a) Book Loss
b) Cash Loss
d) Accumulated Loss
e) None of these
8) Transfer of an Interest In specific immovable property for the purpose of securing repayment
of money advanced by way of loan is known as:
a) Pledge
b) Hypothecation
c) Lien
d) Set off
e) None of these
9) In a foreign exchange transaction, a right but not the obligation to buy or sell is called:
a) Prerogative
b) Call
c) Kerb
d) Option
e) None of these
10) For technological upgradation in banking system, which of the following committee has been set
up?
a) Tarapore Committee
b) Saraf Committee
c) Kohli Committee
d) Narasimham Committee
e) None of these
19
11) A usance bill is accepted by the attorney of the drawee. Subsequently, the drawee revokes
the power of attorney before the bill is due. What will you do in the case?
a) Drawee is justified in refusing payment of the bill.
b) It is deemed to be accepted by the drawee and he is liable
c) Recourse could be made only to the attorney
d) No action can be brought against the attorney and the drawee.
e) None of these
.
12) Which of the following credit exposure norm has been fixed to a single borrower (other than
infrastructure financing)?
a) 15 per cent of net worth of borrower
b) 15 per cent of net worth of the bank
c) 20 per cent of net worth of borrower
d) 20 per cent of net worth of the bank.
e) None of these
13) MIs Taxamati Rice Mill, Kamal, a partnership firm approaches your branch for sanction of CC
( Hyp) limit of Rs 60 lacs. The loan officer on scrutiny of the balance sheet observes that a
Joint Stock Co, is a partner in the firm. He approaches you seeking guidance in the matter as to
whether a limited Co can be a partner of a firm. You will guide him as follows:
a) The account can be opened as a limited company can be a partner of a partnership firm.
b) When a company is made a partner, it becomes association.
c) Account can be opened after having permission from Registrar of Companies.
d) Account should be opened after taking permission from Head Office.
e) None of the above.
14) As per RBI guidelines, there should be how many working directors in a public sector bank:
a) Four, Chairman, Managing Director and two Executive Director for large banks.
b) As per discretion of the bank
c) Bank has to refer to RBI and take prior approval.
d) Two, CMD and Executive Director
e) None of the above.
15) Mis Taxamati Rice Mill Pvt. Ltd., is having a satisfactory CC ( Hyp) limit for Rs 50 lacs from
your branch. You are informed by the company that one of the directors has died in an accident.
After two days, the counter clerk approaches you and seek your guidance as a cheque for Rs
50,000/- signed by the director about a month back has been received in the clearing. You
observe that the cheque is in favour of Income Tax Deptt. You will guide the counter clerk as
follows:
a) The cheque be passed only after obtaining the Board Resolution from the company.
b) Since the cheque is in favour of Income Tax authority, it is binding for the bank to pay the same.
C) The cheque can be paid, as the director signed it as an agent, before his death
d) The account of the company should De ruled-off, to avoid the application of Clayton case. As such
the cheque should be returned.
e) None of the above.
16) On receiving a notice of death of Karta, the credit balance of HUF current account will be:
a) The balance will be disposed of as a claim case under Hindu Succession Act.
b) The balance will be disposed off as per court order.
c) The senior-most co-parcener will be allowed to operate the account.
d) None of these.
17) M/s Rajwant Tubes, has been sanctioned a CC (Hyp) limit for Rs 50 lacs and Bank Guarantee
for Rs 10 lacs. The firm approaches you with the request to issue bank guarantee of Rs 10 lacs in
favour of Customs Ceptt., and submits the duly stamped application for opening of bank guarantee
and also counter guarantee signed by all the partners in individual capacity and also on behalf of
the firm. The counter guarantee is covered under which act:
a) Indemnity Bond under Stamp Act.
b) b) Indemnity Agreement as per State Stamp Act.
c) Undertaking to refund the money in case for making payment
d) Contract to refund the money in case bank has to make the payment.
e) None of the above.
20
18) M/s Impex Pvt Ltd, an exporter having a satisfactory current account approaches you and
seeks your guidance about an export order which he has received from USA for export of
garments. On scrutiny of the export order, you observe that there is a clause that Letter of
Credit will follow in due course. He enquires from you as to which type of LC is safest from the
point of view of exporter. You will guide him to ask for
a) Red-clause LC.
b) Transferable LC.
c) Irrevocable confirmed LC.
d) Revocable credit
e) Confirmed LC.
19) Mr Tej Pratap Singh, a sole- proprietor of M/s Impex Pvt. Ltd, an exporter having a
satisfactory current account approaches you and seeks your guidance about an export order, which
he is negotiating with an Importer from USA. He seeks guidance as to which type of LC he should
insist which will assure him that some pre-shipment advance is made available at the instance of
Importer:
a) Red clause LC.
b) Green clause LC.
c) Irrevocable confirmed LC.
d) Revocable credit
e) Back to Back LC.
20) Not-Negotiable crossing is a caution to:
a) Drawer
b) Drawee
c) Payee
d) Endorser
e) Endorsee
21) M/s Tunic International an SSI unit engaged In manufacture of pesticides approaches you
with the request to sanction Working Capital limit of Rs 20 lac. The borrower submits financial
statements for last three years and projected profitability statement for next five years. 14 per
the guidelines, you examine the projected turnover and compare the same with past performance.
What should be the amount of turnover of the firm so that you can sanction CC limit of Rs 50
lacs:
a) Rs. 150 lac
b) Rs. 200 lac
c) Rs. 250 lac
d) Rs. 300 lac e) Rs. 350 lac
22) Deposit accounts which have not been operated for more than 10 year are called a/cs:
a) In-operative account
b) Unclaimed deposits
c) Dormant accounts.
d) Ineffective accounts
e) None of the above
23) Return of unclaimed deposits is required to be submitted to RBI under which act:
a) Sec 26 of Banking Regulation Act.
b) Sec 26 of RBI Act.
c) Sec 26 of Indian Contract Act.
d) KYC norms.
24) On scrutiny of a balance-sheet of M/s Techno Inc, you observe that the long term uses of
funds are more than long term sources. The position of the balance sheet indicates:
a) Negative Net Working
b) Positive Net Working Capital
c) Negative Working Capital Gap
d) Positive Working Capital Gap.
e) a and c.
26) On scrutiny of a balance sheet of M/s Telenix Inc, you observe that the short term uses
of funds are more than short term sources. The position of the balance sheet indicates:
a) Negative Net Working
b) Positive Net Working Capital
c) Negative Working Capital Gap
d) Positive Working Capital Gap.
e) a and c.
26) Committee on Procedures and Performance Audit on Public Services (CPPAPS) is headed by:
a) Y. V. Reddy
b) A.S. Gaungli
c) S.S.Tarapore
d) Saraf Committee
d) V S Vyas
27) Mrs. Raj Rani, aged 80 years having an FDR for Rs 2 lac approaches you with the request
to add the name of his son so that he does not face any problem after her death. You observe
that she has raised a loan against the said FDR. How will you handle the request of the lady?:
a) The request will be accepted since the FDR is in her name.
b) The request cannot be accepted since it will alter the contract.
c) The lady will be advised that the request can be accepted on the adjustment of loan.
d) None of the above
21
28) Your branch has disbursed a term loan to Master Bobby to meet his education expenses,
which was guaranteed by his father. The loan account became irregular and despite repeated
reminders, Bobby or his father did not regularize the term loan account. The loan officer
approaches you for guidance regarding course of action, which the bank can undertake. Which
of the following action you will propose to safeguard banks Interest?
a) Loan can be recovered from Master Bobby as it was provided for meeting necessities of life. As
such bank should proceed against Bobby.
b) Loan can be recovered from his father as well as the guarantor as per the option of the bank
c) Loan cannot be recovered from the borrower or the guarantor, as the contract with the minor is
void ab-initio.
d) The bank should wait till the minor becomes major and thereafter proceed for recovery of loan
amount.
29) Which of the following is true in respect of subsidy under SJSRY?
a) The subsidy available is back ended.
b) The lock in period for subsidy is for two years.
c) No interest is paid on the subsidy amount and no interest would be charged on the loan amount
equivalent to the amount of subsidy.
d) None of the above.
e) All of the above.
30) Master Vipin, aged 15 years, has a term deposit of Rs. 10000 in your branch, which is to
mature after 3 years. He approaches you with a request to either allow loan against the deposit
or make the pre-mature payment of term deposit. How will you handle the request of Master
Vipln:
a) Loan can be allowed if it is needed for meeting necessities of life.
b) Pre-mature cancellation is allowed only on his becoming major.
c) The bank should allow loan as pre mature payment will reduce the deposit.
d) Loan will not be allowed as Master Vipin is a minor but premature cancellation
can be permitted.
e) Any of the above.
31)Mr. Somnath maintaining a satisfactory current account with you, Issues a cheque for
Rs. 10,000/- in favour of his supplier, Mr. Samsung, who endorses it in favour of Mr. Lever who
takes it for value. Mr. Lever deposits the cheque in his bank for collection. The Cheque is
presented in clearing at your branch but due to oversight, the cheque is wrongfully dishonoured.
Your branch receives a notice from Mr. Lever for wrongful dishonour and demands payment and
also claims damages. How will you handle the notice?
a) The bank will entertain payee's claim as it is a gross mistake.
b) The bank will tactfully handle the case and get the notice withdrawn.
c) In case of wrongful dishonour of a cheque, the drawee banker is liable for damages to the drawer
only. As such, Mr. Lever has no legal ground to serve the notice to the bank and demand the payment.
d) The bank will reply to the notice through its lawyer and decline to accept the claim.
22
Q
1
5
9
13
17
21
25
29
A
A
D
D
A
B
C
B
E
Q
2
6
10
14
18
22
26
30
A
C
B
B
D
C
B
C
D
ANSWERS
Q A Q
3 A 4
7 B 8
11 B 12
15 C 16
19 A 20
23 A 24
27 C 28
31 C
A
E
E
g
C
E
A
C
23
MULTIPLE CHOICE 04
1) A Certificate of Deposit matures on 2nd October, which is a holiday. It will be paid on:
a) CD is demand promissory note and as such it should be paid on 3rd October i.e. a day
succeeding the holiday
b) CD is usance promissory note and as such it should be paid on 1 at October i.e. a preceding business
day.
c) CD is demand promissory note and as such it should be paid on 1 at Oct. i.e. a preceding business day.
d) a or b of the above
2)
a)
b)
c)
d)
A fixed deposit receipt is maturing on Sunday. The payment will be made on:
On Saturday with payment of interest upto Sunday.
On Monday with payment of interest upto Sunday.
On Saturday with payment of interest upto Monday.
None of the above
24
12) A Garnishee Order for Rs. 10,000 and income tax attachment order for Rs. 15,000 are
received simultaneously in the branch in the account of Mr. Rohit who is having a clean OD limit of
Rs.1 lac with debit balance of Rs. 15,000. Which one of them will have preference?
a) Income Tax Attachment order will have preference as it is for recovery of statutory dual
b) Garnishee order will have preference
since it has been issued by the Court.
c) Amount will be shared proportationatly between Garnishee Order and Attachment Order.
d) None of the above
13) Mr. Clever is having a clean overdraft account for Rs. 25,000 with a debit balance of Rs.
20,000. Inspite of repeated reminders he refused to adjust the overdraft account. He is having
a safe deposit account also safe custody account. On which of the following bank cannot exercise
general lien.
a) Articles in safe deposit locker
b) Contents of the safe custody
c) All of the above
14) A loan account is due and inspite of repeated reminder the principle debtor refused to pay.
The guarantor was also served the notice and to avoid litigation, he adjusts the loan in full and
final. The right of the guarantor to step in the shoes of creditor upon full payment of debt is
called the right of :
a) Forfeiting
b) Redemption
c Foreclosure
d) Subrogation
15) The responsibility for verification I scrutiny of the documents submitted by the exporter
under LC for discrepancy is of:
a) Opening Bank
b) Advising Bank
c) Negotiating Bank
d) All of the above
16) Syndication of advances is the recommendations of:
a) Kanan Committee b) Shetty Committee c) Kalyan Sundram Committee
d) Ghosh Committee
17) The limitation period of the term deposit which has already matured is ___.
a) 3 years from the date of expiry
b) 3 years from the date of demand
c) No limitation period
d) a or b whichever is earlier
18) Special Purpose Vehicle (SPV) mechanism is suggested in the budget for development of:
a) Infrastructure
b) Money Market
c) Govt. Security Market
d) Gold Market
19) Repo transaction refers to:
a) Absorption of liquidity by RBI
b) Sale of security which is Held To Maturity (HTM)
c) Injection of liquidity by RBId) Sale of security which is Available for Sale.
20) Reverse Repo transaction refers to:
a) Injection of liquidity by RBI
b) Absorption of liquidity by RBI
c) Sale of security which is Held To Maturity (HTM)
d) Sale of security which is Available for Sale.
21) A type of derivative where the customer has options to exercise his option at any time during
the period covered by the contract is:
a) American Options b) European Options c) Hybrid Options
d) Vanilla Options
22) Soiled notes of small denomination kept in hand balance for identifying culprits in case of
looting of bank cash is known as:
a) Trap money
b) Bait money
c) Money Laundering
d) None of the above
23) In loan cases where repayment of the major or large part of a loan is stipulated in a single
payment following payment of smaller instalment is referred as:
a) Equated payment schedule
b) Balloon payment schedule
c) Bullet payment schedule
d) None of the above
25
24) Borrowings in which there is no amortization or where repayment of the principle occurs only
at maturity is called:
a) Equated payment schedule
b) Bullet payment schedule
c) Balloon payment schedule
d) None of the above
25) The rate of interest payable on a security is known as:
a) Call option rate
b) Put option rate
d) None of the above
c) Coupon rate
26
27
28
ANSWERS
Q
1
5
9
13
17
21
25
29
33
37
41
45
49
A
B
C
B
C
B
A
C
B
A
A
D
C
B
Q
2
6
10
14
18
22
16
30
34
38
42
46
50
A
B
B
C
D
A
B
B
C
D
B
B
A
A
Q
3
7
11
15
19
23
27
31
35
39
43
47
51
A
B
D
B
C
C
B
C
A
C
C
B
D
A
Q
4
8
12
16
20
24
28
32
36
40
44
48
52
A
C
A
D
D
B
B
A
B
B
A
F
C
D
29
Multiple choice 06
1) When is the Annual Policy 2005-06 (Credit Policy) issued usually?
a) In January every year.
b) Along with the budget every year.
c) In the month of April every year.
d) In the month of September every year.
2) When would be the mid-term review of the Annual Policy 2005-06 (Credit Policy) undertaken?
a) July every year.
b) October every year.
c) January every year.
d) July, Oct. and January
3) Which one of the following is not the objective of framing Annual Policy 200506 (Credit Policy)?
a) Inflation management.
b) Providing adequate liquidity to the market.
c) Keeping prices and lending rates stable.
d) None of the above.
4) What are the GDP growth projections for 2005-06 in the Annual Policy 2005-06?
a) 7 %
b) 6.5 %
c) 7.5 %
d) 5.6 %
5) What changes have been made in the Reverse Repo Rates in the Annual Policy 2005-06 (Credit
Policy)?
a) Increased from 5 % to 6 %
b) Increased from 4.75 % to 5 %
c) Increased from 5 % to 5.5 %
d) No Change.
6) What changes have been made in the Post Harvest Produce loan scheme under Priority Sector?
a) Limit raised from Rs 5 lakh to Rs 10lakh
b) Limit raised from Rs 3 lakh to Rs 5 lakh
c) Limit raised from Rs 2 lakh to Rs 3 lakh
d) Limit raised from Rs 1 lakh to Rs 2 lakh.
7) What is the objective of setting up a new body' Banking Codes and Standards Board of India'?
a) Complaints against Banks by the Corporate Customers are addressed immediately.
b) Complaints against the Banks by the Small depositors are addressed immediately.
c) Complaints against the Banks by the pensioners are addressed immediately.
e) To ensure that the Banks follow the policies laid down for the customers in letter and spirit.
8) What changes regarding forward contracts have been announced in the policy?
a) Cancellation and rebooking of forward contracts irrespective of the tenor and period has been
permitted to exporters.
b) Cancellation and rebooking of forward contracts irrespective of tenor or amount has been permitted
to importers.
c) Cancellation and rebooking of forward contracts upto $ 1 million and for one year has been permitted
to exporters.
d) Cancellation and rebooking of forward contracts for one year and upto $ 1 million has been
permitted to importers.
9) What is the permissible fresh limit for overseas investments allowed to the companies?
a) 100 % of the Net worth.
b) 200 % of the Net worth.
c) 300 % of the Net worth.
d) Unlimited.
30
10) What is the minimum maturity period of CDs as announced in the Annual Policy 2005-06
(Credit Policy)?
a) One Day
b) Seven days
b) Fourteen Days
d) Thirty Days.
11) What major change has been proposed in the call money market operations in the Annual Policy
2005-06 (Credit Policy) announcement?
a) Call money market is to be a purely inter-bank market from August 6, 2005.
b) Participation in the call money operations by the corporates has been permitted.
c) Call money market has to be made exclusively for corporates.
e) Banks are to be phased out of the call money market by April 2006.
12) What important change in respect of commodity hedging has been announced in the policy?
a) Banks permitted to approve proposals for commodity hedging in the international exchanges from
their corporate customers.
b) Hedging in commodities over global exchanges restricted.
c) Hedging in Gold and Bullion over international exchanges has been permitted.
d) Banks to keep away from hedging activities.
13) What are the new timings for interbank forex operations as per Annual Policy 2005-06 (Credit
Policy)?
a) Upto 2.00 p.m
b) Upto 3.00 p.m
c) Upto 4.00 p.m
d) Upto 5.00 p.m
14) What prominent change has been announced in the Annual Policy 2005-06 (Credit Policy) in
relation to Repo market?
a) Listed Companies have been permitted to participate in Repo auctions.
b) Urban Co-operative Banks have been permitted to participate in Repo auctions.
c) Both of these have been permitted to participate in Repo auctions.
d) Both of these are to be phased out of the Repo market.
15) In order to bring about a transparency in the prices of securities, RBI has proposed
introduction of an Electronic Trading Platform. Which of the following deals are to be covered
under the proposal?
a) Only Repo deals
b) Only Reverse Repo deals.
c) Repo and Reverse Repo deals
d) Repo. Reverse Repo and all other deals.
16) As a measure to cope with the govt. borrowing programme after 2006, which of the following
proposals has been announced by RBI?
a) Structure of PO business will be expanded and certain eligible banks would be permitted to undertake
this business.
b) Ban'ks will be phased out of the PO business portfolio.
c) NBFC will be phased out of the PO business portfolio.
d) NBFC will be brought in the PO business.
17) In order to make call money market, a purely inter-bank market, what steps have been
proposed?
a) NBFCs will be phased out of call/notice money market from Aug 6, 2005.
b) NBFCs except POs, will be phased out of call/notice money market from Aug 6, 2005.
c) POs will be phased out of the call/notice money market.
d) NBFCs and POs both, will be phased out of the call/notice market from Aug 6, 2005.
18) In order to bring more transparency in the deals, which of the following steps has been
proposed?
a) From April 30, 2005, all NOS members are required to report their term money deals on NOS
platform.
b) From April 30, 2006, all NOS members are required to report their term money deals on NOS
platform.
c) From Aug 6, 2005, all NOS members are required to report their term money deals on NOS platform.
d) From April 30, 2005, Banks are required to report their term money deals on NOS platform.
31
19) What is the benchmark for fixing prudential limits on exposure to call/notice money market for
SCBs ?
a) Such limits are to be linked with Tier I capital.
b) Such limits are to be linked with Tier II capital.
c) Such limits are to be linked with Tier I and Tier II capital.
d) Such limits are to be de-linked from capital.
20) Which of the following is one of the requirements to be eligible for declaring dividend by the
banks?
a) Banks should comply with the prevailing RBI guidelines regarding creating adequate provisions for
impairment of assets.
b) Banks should comply with the prevailing RBI guidelines regarding staff retirement benefits.
c) Banks should comply with the prevailing RBI guidelines regarding transfer of profits to statutory
reserves.
d) All the above
21) What new system has been proposed for call/ notice and term money deals?
a) Screen based negotiated quote driven system.
b) Voice based negotiated quote driven system.
c)Voice and Screen, combined, quote driven system.
d) None of these.
22) What is the objective of raising Reverse Repo rates?
a) To absorb excess liquidity from the market.
b) To enable the banks earn more interest on their funds deployed with the RBI.
c) To enable the banks earn more income on their funds deployed in the inter-bank market.
d) To enable the banks, earn more income on their funds deployed in the open market
23) Which of the following is correct about Foreign Trade Policy?
a) It is for a period of 5 years.
b) Besides the main policy, annual supplement is announced every year.
c) Board of Trade is headed by an eminent business person.
d) All the above.
24) What is the export target fixed for the year 2005-06 ?
a) $ 50 billion
b) $ 72 billion
c) $ 92 billion
d) $ 110 billion
25) To ensure the competitiveness of agricultural exports, what decisions have been taken in the
annual supplement to FTP?
a) It has been proposed to abolish cess on all agricultural and plantation exports.
b) Benefits under Vishesh Krishi Upaj Yojana have been extended to Poultry and Dairy exports.
c) Duty credit of 5 per cent of f.o.b value has been allowed.
d) All the above.
26) Which of the following proposals have been made for benefit of manufacturing sector in
respect of export obligations?
a) Balance export obligations has been waived to those exporters who have completed 75% of the
export obligation in half of the tenure.
b) Export obligation has been reduced to 6 times of the duty saved.
d) Obligation period has been extended.
e) All the above.
27) Which of the following facilities has been proposed for EOUs?
a) Procedures of units de-bonding from EOUs have been simplified.
b) EOUs would be allowed to transfer Capital Goods imported under EPCG scheme to other group
companies.
c) EOUs could claim income tax exemption within 12 months.
d) All the above.
32
28) Which one is the focus area of annual supplement to FTP 2004-09?
a) Enhancing competitiveness of the manufacturing sector.
b) Creating export oriented employment opportunities.
c) Facilitating imports for export oriented purposes.
d) All the above.
29) What is the objective of setting up a Inter State Trade Council?
a) To meet the target of doubling the exports by 2009.
b) To increase the involvement of states in exports with greater responsibility.
c) To coordinate inter state efforts for boosting exports.
d) All the above.
30) What was the growth rate of exports in 2004-05?
a) 12%
b) 16 %
c) 24%
31) Under FTP, what is the generating export related employment opportunities 2009?
a) 1,00,000
b) 3,00,000
c) 5,00,000
d) 1,00,00,000
32) In 'order to make agricultural exports more effective and competitive, which of the following
products have been covered under the Vishesh Krishi Upaj Yojana ?
a) Dairy products
b) Poultry products
c) Fishery products
d) Dairy and poultry products.
33) What are new export obligation for imports under EPCG scheme?
a) 6 times of duty saved
b) 8 times of duty saved
c) 5 times of duty saved
d) 4 times of duty saved.
34) For which of the following export sectors, setting up of a separate Export Promotion Council
has been proposed?
a) Marine Products
b) Forestry
c) Services
d) Leather
35) What is the enhanced entitlement for import of samples under Gems and Jewellery export
sector?
a) Rs One lakh
b) Rs Two lakh
c) Rs Three lakh
d) Rs Ten Lakh
36) What is the time for EOUs to claim IT exemption?
a) 6 months
b) 12 months
c) 24 months
d) 36 months
37) Of which of the following sectors, exporters have been permitted imports of capital goods
under EPCG scheme?
a) Marine
b) Fisheries
c) Retail
d) Dairy and Poultry
38) Which of the following benefits have been allowed under 'Served from India Scheme'?
a) Goods imported can be transferred within the group companies.
b) Goods imported can be sold out with prior permission of RBI.
c) Duty free import of goods has been permitted.
d) Except wine any other product can be imported duty free.
39) For which of the following sectors, Bank Guarantee threshold has been reduced?
a) Units situated in Agri Export Zones.
b) A category of manufacturer exporters.
c) Established Service providers.
d) 30% target for additional by March
d) All the above.
40) Which of the following statements is correct about recent changes in policy of declaring
dividends by the Banks?
a) It has been decided to grant general permission to banks to declare dividends with a cap of 40%
payout ratio subject to fulfilment of eligibility criteria.
b) The Banks can not declare dividends over 33.33%
c) The banks require a prior permission from RBI before declaring dividends.
d) The banks require a prior permission from Union Govt before declaring dividends.
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ANSWERS
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Multiple choice 07
1) Bank determines benchmark PLR (BPLR) after taking into consideration certain
factors. Which of the following are considered while fixing BPLR?
a) Actual cost of funds
b) Operating expenses
c) Minimum margin to cover regulatory requirements of provisioning / capital charge.
d) Profit margin.
e) All of the above
2) In a Letter of Credit backed mechanism, the Advising bank's responsibility is to:
a) Inform issuing bank as to whom to issue the letter of credit
b) Advise the buyer the dispatch of documents by the seller
c) Inform the beneficiary / seller about the letter of credit
d) None of the above
3) An account showing outstanding amount of Rs. 25,000/- as on 31-3-2004 has been
classified as doubtful more than 3 years as on 31-3-2004. The realizable value of
security is Rs. 20,000. What will be the provision as on 31-32007?
a) 15,000
b) 17,000
c) 20,000
d) 25,000
4) A notice to acting partner relating to affairs of the firm is treated as the notice to
the firm except in the case of :
a) Fraud committed by that partner b) Fraud consented by that partner
c) Fraud committed by the third person
d) Fraud committed by debtors of the firm' e) a and b above both
5) Net Present Value (NPV) Method of a project refers to :
a) It refers to a method of choosing a project out of several projects whereby they are ranked in
order to the rate of earnings or rate of return.
b) Sum total of the present value of all the cash flows associated with the project by recognizing
time value of money
c) It refers to time required for recouping the total expenditure of the project i.e. the number of
year at which cumulative forecast cash flow equals the initial investments
d) That rate of discount at which the present value of cash inflows is equal to the present value
of cash out flows over the life period of project
6) Stand-By LC may be opened for import of gold on loan basis. The tenor of LC should
be in line with the tenor of the gold loan and the usance period should not exceeds
days:
a)60
b) 90
c) 180
d) 240
7) Depreciation is computed on fixed assets every year. Under which method the
depreciation amount decreases.
a) Straight line method
b) Written Down value method
c) Revaluation method
d) Insurance policy method
8) As per guidelines, RBI has imposed restrictions on exposure to Capital Market, by
way of advances (both fund based and non-fund based) with the overall ceiling of 5%
of the total outstanding advances. Which bank has been allowed higher exposure in
the capital market?
a) ICICI Bank
b) HDFC Bank
c) IDBI
d) State Bank of India
9) For assessing the working capital requirement for units engaged in sugar, tea,
service sector and film production which method is used?
a) Annual projected turnover method
b) Maximum permissible bank finance method
c) Cash budget method
d) All of the above
10) Your bank has sanctioned a loan to a non-farmer for construction of Godown for
storage for agriculture produce in the urban place. The advance will be classified as :
a) Indirect finance to agriculture
b) Direct finance to agriculture
c) Direct finance to SSI
d) Indirect finance to SSI
e) None of the above
11) Ram Lal and Sham Lal are two partners in two different partnership firms namely
M/s Ram Lal and Sham Lal and the other being M/s Sham Lal and Ram La!. The
account of Ram Lal and Sham Lal is showing debit balance and the account of Sham
Lal and Ram Lal is showing credit balance. Can the bank exercise the right of set-off
in the above two firms:
a) Since the partners are the same, the accounts are in the same order and same capacity and
bank can exercise the right of set-off.
b) Since the firms are different, the accounts are not in same order and same capacity and as
such the bank cannot exercise the right of set-off
c) Since partnership firms are dealing In different products the account are not In same order
and same capacity and as such the bank cannot exercise the right of set-off
d) None of the above
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b)Contract of sale
d)None of the above
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34) When in Letter of Credit the confirming bank confirms the credit, it:
a) Does not take any liability
b) Undertakes to make timely delivery of the documents and bills to the buyer or his bank
c) Undertakesto negotiates the documents subject to the condition that the documents are as
per the terms and conditions of the LC
d) None of the above
35) For a healthy balance sheet:
a) Long-term sources of funds should be more than long-term uses
b) Long-term sources of funds should be less than long-term uses
c) Short-term sources of funds should be more than short-term uses
d) Long -term sources of funds should be exactly more than long-term uses
36) The difference between total current assets and other current liabilities (current
liabilities other than bank borrowings) in the parlance of Tandon Committee terms is
known as:
a) Net working capital`
b) Working Capital Gap
c) Gross working capital
d) None of the above
37) The objective(s) or which a company has been formed, is / are found (in terms of
Indian Company in _:
a) Articles of Association
b) Certificate of Incorporation
c) Certificate to commence business
d) None of the above
38) In case current ratio and acid-test ratio (quick ratio) of a firm are 1.5:1 and 0.8:1
respectively, it implies:
a) The level of inventory in the firm is high
b) The firm has a high concentration of debtors
c) The firm is suffering a loss
d) None of the above
39) The law relating to payment of cheques and protection to a banker is contained in
the:
a) Indian Contract Act
b) Indian Companies Act
c) Banking Regulation Act
d) None of the above
40) An account showing outstanding amount of Rs. 25,000/- as on 31-3-2004 has been
classified as doubtful more than 3 years as on 31-3-2004. The realizable value of
security is Rs. 20,000. What will be the provision as on 31-32006?
a) 15,000
b) 17,000
c) 20,000
d) 25,000
41) When the Board of a banking company is ordered to be reconstituted, directors
will be retired for the purpose of reconstitution:
a)By rotation
b) By lots
c)By majority
d) None of these
42) The payment of penalty under Section 24 of the Banking Regulation Act can be
enforced on an application made before the:
a) Reserve Bank of India
b) Government of India
c) Principal Civil Court
d) High Court
43) Risk Focused Internal Audit (RFIA) covers borrowal accounts with an exposure of
less than Rs.__ crore.
a) 1
b) 2
c) 5
d) 7
e) 9
44) Nominated agencies / approved bank can import gold on loan basis for lending
to exporters of jewellery. EOUs and units in SEZ who are in the gems and jewellery
sector can import gold on loan basis for manufacturing and export of jewellery on
their own account only for a maximum tenor of gold loan being fixed at _days:
a) 90
b) 180
c) 240
d) 360
45) As per NPA guidelines an agriculture advance will be classified as NPA, when it is
satisfied certain criteria. Which of the following parameter are considered for
classifying an agriculture advance as NPA?
a) A loan granted for short duration crops will be treated as NPA, if the instalment of principal
or interest
thereon remains overdue for two crops seasons.
b) A loan granted for long duration crops will be treated as NPA if the instalment of principal or
interest
thereon remains overdue for one crop season.
c) Long duration crops would be crop season longer than one year and crops, which are not
long duration,
would be treated as short duration crops.
d) a and b above
e) All of the above
46) Societies, Trusts desiring to take donation from abroad have to take prior
permission from:
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b) Ministry of Finance
d) RBI
Fraud
ANSWERS
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5
9
13
17
21
25
29
33
37
41
45
49
E
B
C
B
C
A
D
A
A
D
B
E
D
2
6
10
14
18
22
26
30
34
38
42
46
50
C
B
A
D
C
B
B
B
C
A
C
A
A
3
7
11
15
19
3
27
31
35
39
43
47
51
D
B
A
B
D
C
D
C
A
D
C
C
B
4
8
12
16
20
24
28
32
36
40
44
48
E
B
A
D
A
E
C
A
B
C
C
D
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The committee set up to study legal aspects of bank frauds: Dr. N.L. Mitra Committee.
Networking system required in an organisation having office in one building: Local Area
Networking (LAN)
Under Copra, district forum can entertain claims upto : Rs. 20 lacs.
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