Sample Questions

1) Reserve Bank of Indias functions are classified into: a) Supervisory & Regulatory b) Promotional & Developmental c) Refinance Activities d) All of the above 2) Minimum Bank Rate is: a) 3% b) 4% c) 5% d) None 3) Sec ---- of RBI Act,1934 gives sole power to RBI to issue currency notes a) 10 b) 18 c) 22 d) 26 4) KYC means a) Know Your Customer very well b) Know Your existing Customer very well c) now Your prospective Customer very well d) atisfy yourselves about the customers identity and activities 5) In a Garnishee Order, the banker on whom garnishee order served is: a) Judgement Debtors Creditor b) Judgement Creditors Creditor c) Judgement Creditors Debtor d) Judgement Debtors Debtor 6) Sec 131 of NI Act,1881 extends protection to the a) Paying Banker b) Collecting Banker c) Advising Banker d) Issuing Banker 7) Hypothecation is applicable in the case of a) Movable goods b) Immovable property c) Book debts d) Corporate guarantee 8) A cheque is dated 12/05/05.the due date is: a) 12/08/05 b) 14/09/05 c) 12/11/05 d) None 9) Charge created on LIC Policy is: a) Hypothecation b) Pledge c) Assignment d) Mortgage 10) Your bank grants working capital finance to ABC & Co, a partnership firm, against hypothecation of inventory. The charge is to be registered with Registrar of Companies within a) 30 days from the date of advance b) 30 days from the date of hypothecation agreement

c) 30 days from the date of sanction of loan d) None 11) Which one of the following is not barred by law of limitation? a) Pledge b) Hypothecation c) Bankers lien d) Guarantee 12) The term Credit Management covers a) Capital adequacy norms b) Risk management including Asset/Liability management c) Credit appraisal decision and review of loans & advances d) All of the above 13) Banks Assets are classified in to standard assets, substandard assets doubtful assets and loss assets, based on the recommendations of ------------------- Committee a) Rangarajan b) Narasimham c) Ghosh d) Tandon 14) The time taken to convert cash into raw materials, semi finished goods, finished goods and into cash , is known as a) Trade cycle b) Cash cycle c) Operating cycle d) Revolving cycle 15) A company which pools money from investors and invests in stocks, bonds, shares is called a) A bank b) An insurance company c) Bancassurance d) Mutual Fund 16) Bancassurance is a) An insurance scheme to insure bank deposits b) An insurance scheme to insure bank advances c) A composite financial service offering both bank and insurance products d) A bank deposit scheme exclusively for employees of insurance companies 17) John & James are friends aged 14 & 15 respectively. They want to open a joint account in your bank. You will a) Allow them to open a joint account to be operated jointly b) Allow them to open a joint account with operating instructions Either or Survivor c) Allow them to open a joint account with operating instructions Former or Survivor d) Allow them to open a joint account with operating instructions Any one or Survivor 18) Mr.Atmaram as director of a Ltd company expired. Bank received a cheque signed by Mr.Atmaram as director of the Ltd company. The bank a) Can honour the cheque only after obtaining confirmation from other directors b) Can honour the cheque c) Cannot hounour the cheque d) The company should issue a stop payment instructions to the bank 19) Tele banking service is based on a) Virtual Banking b) Online Banking c) Voice processing d) Core Banking

20) In a securitisation deal, the role of a Special Purpose Vehicle (SPV) is a) To acquire large Non Performing Loans (NPA) b) To acquire such loans from a bank or financial institution c) To acquire such loans for a transfer price, with or without recourse d) To manage the acquired loans for the purpose of realization or holds them as investment till maturity 21)Securitisation is a process of acquiring the loans classified as a) Bookdebts b) Performing debts c) Bad debts d) Non performing debts 22)The minimum percentage of Priority Sector advances to be maintained by foreign banks in India a) 40% b) 18% c) 32% d) 60% 23) Loan for fish rearing is covered under Prirority Sector as ----------- advances a) Direct Agriculture b) Indirect Agriculture c) Self Employment Scheme d) Allied to Indirect Agriculture 24) Cash Budget is a statement of a) Cash-Non cash funds b) Cash receipts and cash payments c) Another name for cash flow c) None of the above 25) In banks parlance credit risk in lending is a) Default of the banker to maintain CRR b) Default of the banker to maintain SLR c) Deafualt of the banker to release credit to the customer c) Deafualt of the customer in repaying the loan 26) The apex institution which handles refinance for agriculture and rural development is called: a) RBI b) SIDBI c) NABARD d) SEBI 27) Long Form Audit Report (LFAR) is prepared and submitted by a) RBI Inspectors b) Internal Inspectors c) Statutory Auditors d) Concurrent Auditors 28) As per FIMMDAs guidelines, the Mid-Office is responsible for: a) Dealing activities b) Risk Management c) Reconciliation d) Confirmation of deals 29) Interest is calculated on actual/365 days basis in respect of the following products, except one: a) Call Money b) Notice Money c) Term Money

d) GOI dated securities 30) Which was the first Mutual Fund started in India: a) SBI Mutual Fund b) Kotak Pioneer Mutual Fund c) Indian Bank Mutual Fund d) None of the above 31) The regulator for Mutual Funds in India is: a) FIMMDA b) AMFI c) RBI d) SEBI 32) FIMMDAs general principles and procedures are applicable to: a) Fixed Income Markets b) Money Markets c) Derivatives Markets d) All of the above 33) Your banks customer XYZ Ltd, enjoys a CC limit of Rs.1,00,000.00. The CC acount show a credit balance of Rs.10,205. The relationship between your bank and XYZ Ltd is: a) Debtor/Creditor b) Creditor/Debtor c) Bailor/Bailee d) Bailee/Bailor 34) The right of set-off is: a) Customers Right b) Customers Obligation c) Bankers Right d) Bankers Discretion 35)Which of the following forms of business are permissible under BR Act: a) Borrowing b) Issuance of Letters of Credit c) Buying and selling of bullion d) All of the above 36) A Co-Operative Bank operating in different States are regulated by: a) State Co-Operative Societies Act b) Banking Regulation Act c) Multi Unit Co-Operative Societies Act d) Banking Laws (applicable to Co-Operative Societies) 37) In respect of Regional Rural Banks, the share holding pattern is: a) Central Government 50%,State Government 35%,Sponsoring Bank 15% b) Central Government 50%,State Government 15%,Sponsoring Bank 35% b) Central Government 15%,State Government 35%,Sponsoring Bank 50% b) Central Government 35%,State Government 50%,Sponsoring Bank 15% 38) Law of limitation is not applicable in respect of : a) Advance against pledge of shares b) CC granted against hypothecation of inventory c) Term loan secured by mortgage of Plant & Machinery d) Bank Term Deposit 39) A bank in India, wants to undertake capital market activities, it should: a) Obtain special license from AMFI b) Obtain special license from FIMMDA c) Both a and b

d) Register with SEBI 40) FIMMDA stands for: a) Foreign Exchange Markets and Derivative Markets b) Fixed Income Markets Money Markets and Derivatives Markets c) Fixed Income Markets and Derivatives Markets d) None of the above 41) The Capital Adequacy Ratio is : a) 6% b) 8% c) 9% d) 10% 42) Except one of the following others are known as Non Fund based facilities: a) Letters of Credit b) Bank Guarantees c) Co-acceptance of Bills d) Trust Receipt 43) FIMMDAs guidelines cover the following products, except one: a) Call Money b) Cross Currency Interest Rate swaps c) Commercial Paper d) Certificate of Deposit 44) Except one of the following others are part of Public Sector Banks: a) State Bank of Hyderabad b) Central Bank of India c) Regional Rural Bank, sponsored by a nationalized bank d) HDFC Bank 45) A banker is expected to honour the cheques within the specified banking hours as per Section of NI Act,1881 a) 22 b) 25 c) 31 d) 65 46) Which of the following is not the characteristics of the services? a) Intangibility b) Perishability c) Seperability d) Heterogeniety 47) Which of the following is not the process of Marketing Management? a) Analysis b) Planning c) Control d) None of these 48) Which of the following is not the characteristic associated with transactions between two or more parties? a) Agreed upon conditions b) Time of agreement c) A place of agreement d) None of these 49) Marketing concept is rested on four main pillars. Which of the following is not amongst four pillars? a) Target Market b) Customer needs

c) Segregated Marketing d) Profitability 50) Which of the following is not true about push strategy of promotion mix? a) Promotion efforts are directed at the channel member b) It is done through personal selling and trade promotion c) Promotion efforts are directed towards the final consumer d) None of these 51) A flaw in a program that causes it to produce incorrect or inappropriate results is called a. a) Byte b) Attribute c) Unit Problem d) Bug 52) MICR technology used for clearance of cheques by banks refers to a) Magnetic Ink Character Recognition b) Magnetic Intelligence Character Recognition c) Magnetic Information Cable Recognition d) Magnetic Insurance Cases Recognition 53) A collection of raw facts is called a) Output b) Information c) Bits d) Data 54) A leased line can transmit a) Only Data / Text b) Only Voice c) Only Video d) All the above 55) PIN in Smart Card is called a) Permanent Index Number b) Personal Identification Number c) Personal Index Number d) Permanent Identification Number 56) A Regional Rural Bank is a) a body corporate created under a special statute b) a co-operative society c) a company d) None of the above 57) The director of a banking company a) should not have beneficial interest in any other company b) should not have any interest in any other company c) should not have substantial interest in any other company d) should not hold directorship of any other company 58) Every banking company has to maintain certain amount of assets under Section 25 of the Banking Regulation Act... a) as at the last Friday of every fortnight b) as at the last Friday of every month c) as at the last Friday of every quarter d) as at the last Friday of every year 59) A banker is bound to honour a customer cheque and only thereafter exercise right of set off a) True b) False

c) Partly True d) Varies from bank to bank 60) How many parties are there to a contract of indemnity? a) 2 b) 3 c) 4 d) Can't say 61) In bank gaurantees the bank makes payment on a) being convinced that beneficiary has incurred losses b) being sued by the beneficiary c) merely on demand by the beneficiary d) on the gaurantee being invoked, after seeking concurrence of the debtor 62) The LC issuing bank is also called a) the importers bank or the opening bank b) the advising bank or the confirming bank c) the negotiating bank or the nominated bank d) the reimbursement bank 63) A letter of credit is opened on the request of a) issuing bank b) applicant c) beneficiary d) confirming bank 64) Which of the following is bailment of goods for purpose of securing a payment of debt or performance of promise? a) Hypothecation b) Assignment c) Mortgage d) Pledge 65) In a Hindu Undivided Family, the business of the family is managed by a) Karta b) Coparcener c) Manager d) Proprietor