1.

A public sector bank of is a body corporate created under special statute Marks: 2+ 1True False The Correct Answer is :

True

2. A banking company is registered under the Banking Regulation Act Marks: 2+ 1True False The Correct Answer is :

False

3. Cooperative banks are registered under the Cooperative Societies Act Marks: 2+ 1True False The Correct Answer is :

True

4. Subsidiaries banks are companies registered under the Companies Act Marks: 2+ 1True False The Correct Answer is : False 5. Accepting deposits for safe custody would fall within the definition of banking Marks: 2+ 1True False The Correct Answer is :

False Marks: 2+ 1-

6. Reserve Bank was constituted under _______ A. BR Act B. RBI Act C. Companies Act

The Correct Answer is :

B. RBI Act Marks: 2+ 1-

7. A Regional Rural Bank is ________________.

A. A body corporate created under a special statute B. A cooperative society The Correct Answer is : A. A body corporate created under a special statute 8. Banking companies are licensed by _______ . Marks: 2+ 1-

A. Reserve Bank B. Registrar of companies C. Company Law Board). The Correct Answer is : B. Registrar of companies

9. Business which a banking company may undertake other than banking is as stipulated by ______________ Marks: 2+ 1A. Reserve Bank B. BR Act C. RBI Act). The Correct Answer is :

B. BR Act

10. BR Act was enacted for _________ regulating acceptance of deposits from public). Marks: 2+ 1A. Regulating banking companies B. Creating Reserve Bank The Correct Answer is : A. Regulating banking companies 11. Central Government can give direction to the Reserve Bank. Marks: 2+ 1True False The Correct Answer is :

True

12. All business of banks are regulated only by the Reserve Bank. Marks: 2+ 1True False The Correct Answer is :

False Marks: 2+ 1-

13. Central Government is the primary regulator of banks. True False The Correct Answer is :

False

14. The State Government has no control over cooperative banks. Marks: 2+ 1True False The Correct Answer is :

False

15. On cancellation of licence of any bank, an appeal lies to Central Government. Marks: 2+ 1True False The Correct Answer is :

True

16. Cooperative bank operating in different states are regulated by _______ Marks: 2+ 1A.State Cooperative Societies Act B.Multi-Unit Cooperative Societies Act C.Banking Laws (application to Cooperative Societies Act) The Correct Answer is : B.Multi-Unit Cooperative Societies Act 17. Government can exempt a bank from provision of BR Act ______ Marks: 2+ 1A.On the recommendation of RBI

B.Whenever the government is satisfied C.If requested by a bank The Correct Answer is : A.On the recommendation of RBI 18. ________ exercises the central banking function in India, A.State Bank, Central Bank of India B.Reserve Bank of India The Correct Answer is : B.Reserve Bank of India 19. Company matters of a banking company are regulated by ______ Marks: 2+ 1A.Reserve Bank B.Authorities under Companies Act C.SEBI The Correct Answer is : B.Authorities under Companies Act 20. Trading in shares and securities by banks is subject to control by ______ Marks: 2+ 1A.Controller of Capital Issues B.SEBI C.Company Law Board The Correct Answer is : B.SEBI 21. Section 5(b) of ______ Act gives the definition of the term Banking Marks: 2+ 1A.Contract Act, B.Negotiable Instruments Act, C.Banking Regulation Act, D.Transfer of Property Act. The Correct Answer is : C.Banking Regulation Act, 22. Principle functions of the Bank are: Marks: 2+ 1Marks: 2+ 1-

A.Dispatch of statements, B.Adjustment of Interoffice Transactions,

C.Clearing D.Acceptance of deposits for Lending and investment. The Correct Answer is : D.Acceptance of deposits for Lending and investment. 23. In a deposit account the principal relation between Bank and Customer is bank ___________ and the Customer ________. Marks: 2+ 1A.Agent, Principal B.Lessor, Lessee C.Creditor-Debtor D.Debtor-Creditor E.Bailor-Bailee The Correct Answer is :

D.Debtor-Creditor

24. When a Bank lends money the relation between Bank and Customer is Bank _____________ and Customer ________. Marks: 2+ 1A.Agent, Principal B.Lessor, Lessee C.Creditor-Debtor D.Debtor-Creditor E.Bailor-Bailee The Correct Answer is :

C.Creditor-Debtor

25. In case of safe custody of articles relation between Bank and Customer is Bank ___________ and Customer _________. Marks: 2+ 1A.Agent, Principal B.Lessor, Lessee C.Creditor-Debtor D.Debtor-Creditor E.Bailor-Bailee The Correct Answer is :

E.Bailor-Bailee

26. In case of safe deposit licker the relation between Bank and Customer is Bank _______________ and Customer _________. Marks: 2+ 1A.Agent, Principal B.Lessor, Lessee

C.Creditor-Debtor D.Debtor-Creditor E.Bailor-Bailee The Correct Answer is :

B.Lessor, Lessee Marks: 2+ 1-

27. An individual can start a bank. True False The Correct Answer is :

False

28. A banking company should have the word Banking in its name Marks: 2+ 1True False The Correct Answer is :

True

29. A company engaged in manufacture of furniture can use the word Bank in its name. Marks: 2+ 1True False The Correct Answer is :

False

30. Ledger keeper is authorised to disclose the balance of the account of the customer to a stranger. Marks: 2+ 1True False The Correct Answer is :

False Marks: 2+ 1-

31. Line is a/an ________ of the creditor to retain possession. A.Obligation B.Right C.Interest D.Protection The Correct Answer is :

B.Right

32. Where as general lien gives right to retain goods, Bankers lien has _________ in case of default. Marks: 2+ 1A.right to create charge B.right to create mortgage C.right to sell. The Correct Answer is : C.right to sell. 33. General lien gives the creditor right to retain ________ which have come in his possession. Marks: 2+ 1A.all goods B.some goods C.specific goods The Correct Answer is :

A.all goods

34. Particular lien gives the creditor right to retain ________ in case the expenses incurred are not paid. Marks: 2+ 1A.all goods B.some goods C.specific goods The Correct Answer is :

C.specific goods Marks: 2+ 1-

35. Bankers lien is a/an _________. A.hypothecation B.mortgage C.implied pledge D.pledge The Correct Answer is :

C.implied pledge Marks: 2+

36. In case of __________ goods, Bankers lien is not applicable. 1A.owners goods B.stolen goods C.finished goods The Correct Answer is :

B.stolen goods

37. The right to _______ two accounts is known as set-off. A.Open B.Bankers right C.Combine The Correct Answer is :

Marks: 2+ 1-

C.Combine Marks: 2+ 1-

38. Right of set-off is not discretionary right with the bank. . True False The Correct Answer is :

False

39. With the death of a partner of a partner of a firm having a cash credit account the account of the firm can continued as thitherto. Marks: 2+ 1True False The Correct Answer is :

False

40. Transfer of funds from the partnership account to the credit of the account of a partner to set-off a debit balance, is in order. Marks: 2+ 1True False The Correct Answer is :

False Marks: 2+ 1-

41. The right of set-off is __________. A.Customers right B.Bankers right C.Bankers obligation D.Banks descrition. The Correct Answer is :

D.Banks descrition. Marks: 2+ 1-

42. Garnishee order is issued by _______. A.Police officer B.Revenue authority

C.Inforcement authority D.Court of Law The Correct Answer is : D.Court of Law 43. Attachment order is issued by __________. A.Drawer of a cheque B.Revenue authority C.Manager of bank The Correct Answer is : 44. Mandate is _________ . Marks: 2+ 1-

B.Revenue authority Marks: 2+ 1-

A.Signed letter to the Bank B.Order of the court of law C.Memorandum of understanding D.Unstamped letter to the Bank The Correct Answer is : D.Unstamped letter to the Bank 45. Power of attorney is _________. Marks: 2+ 1-

A.Signed letter to the Bank B.A promissory note C.Garnishee order D.Stamped documents. The Correct Answer is : D.Stamped documents. 46. Person to whom a power of attorney is given is called _________ and the person who gives the Power of attorney is called _________. Marks: 2+ 1A.Debtor-Creditor B.Bailor-Bailee C.Agent, Principal (donor, donee) The Correct Answer is : C.Agent, Principal (donor, donee) 47. A letter of mandate is generally issued for a short or temporary period. Marks: 2+ 1True False

The Correct Answer is :

True

48. Mandates are accepted from limited companies and cooperative societies. Marks: 2+ 1True False The Correct Answer is :

False

49. Special power of attorney gives extensive powers to the agent to perform many acts. . Marks: 2+ 1True False The Correct Answer is :

False Marks: 2+ 1-

50. Garnieshee order is issued by the revenue authorities. . True False The Correct Answer is :

False Marks: 2+ 1-

51. Attachment order is issued by the Court of Law. True False The Correct Answer is :

False

52. Promissory Notes, Bills of Exchange and cheque are together defined as____________ Marks: 2+ 1A.Negotiable instruments B.Transferred instruments C.Trust Receipts D.Documents of Title to goods. The Correct Answer is : A.Negotiable instruments 53. N.I.are easily ________ A.transferable Marks: 2+ 1-

B.gifted C.sold The Correct Answer is :

A.transferable Marks: 2+ 1-

54. a cheque is drawn on a __________ A.owner of ship B.an agent of a principal C.bank The Correct Answer is : C.bank 55. a cheque is payable on a _________ A.demand B.after certain days C.on a fixed future date. The Correct Answer is : A.demand

Marks: 2+ 1-

56. Two parallel transverse lines across the cheque is called _________ Marks: 2+ 1A.endorsement B.transfer C.assignment D.crossing The Correct Answer is :

D.crossing

57. Crossing is a direction to the ________ bank to pay the cheque to the payee through a bank. Marks: 2+ 1A.drawer B.payee C.paying D.collecting The Correct Answer is :

C.paying

58. When a cheque is drawn on a bank is called the __________. Marks: 2+ 1A.drawer

B.endorser C.acceptor D.drawee The Correct Answer is :

D.drawee

59. The crossing in a crossed cheque can be cancelled by ________. Marks: 2+ 1A.drawer B.endorser C.acceptor D.drawee The Correct Answer is :

A.drawer Marks: 2+ 1-

60. Acts done honestly is called acts done. A.without negligence B.rashly C.mollified D.in good faith The Correct Answer is :

D.in good faith

61. Mere signature of the payee on the reverse of the instrument is called ________ endorsement Marks: 2+ 1A.full B.blank C.conditional D.restrictive The Correct Answer is :

B.blank Marks: 2+ 1-

62. Sans recourse means _______.

A.I am not afraid B.Do not touch me C.ask the drawer D.without liability to me The Correct Answer is : D.without liability to me

63. A cheque is a Bill of Exchange. True False The Correct Answer is :

Marks: 2+ 1-

True Marks: 2+ 1-

64. Drawee of a cheque is not a banker. . True False The Correct Answer is :

False Marks: 2+ 1-

65. A promissory note can be crossed. True False The Correct Answer is :

False Marks: 2+ 1-

66. A cheque needs acceptance. True False The Correct Answer is :

False Marks: 2+ 1-

67. A holder-in-due accepts N.I. for consideration. True False The Correct Answer is :

True Marks: 2+ 1-

68. Crossing of a cheque can be done by the drawer only. True False The Correct Answer is :

False

69. Transferee of a negotiable instrument will not get a better title transferor. Marks: 2+ 1-

True False The Correct Answer is :

False

70. A cheque can be issued payable after 3 month from the date of its issuance. Marks: 2+ 1True False The Correct Answer is :

False

71. A banker on whom a cheque is drawn by customer is ___________. Marks: 2+ 1A.Collecting banker B.Paying banker C.Advising banker D.Confirming banking. The Correct Answer is : B.Paying banker 72. A banker who collects a cheque for and on behalf of his customer is __________. Marks: 2+ 1A.Collecting banker B.Paying banker C.Advising banker D.Confirming banking. The Correct Answer is : A.Collecting banker 73. Section 131 of N.I. Acts extends protection to the __________. Marks: 2+ 1A.Collecting banker B.Paying banker C.Advising banker D.Confirming banking. The Correct Answer is : A.Collecting banker 74. Section 85 of N.I. Acts extends protection to the __________. Marks: 2+ 1-

A.Collecting banker B.Paying banker C.Advising banker D.Confirming banking. The Correct Answer is : B.Paying banker 75. When a banker makes payment of a cheque after banking hour he will be held __________. Marks: 2+ 1A.liable B.reasonable C.acceptable The Correct Answer is :

A.liable

76. One of the condition to honour the cheque by the paying banker is that amount in words and figures should ____________. Marks: 2+ 1A.differ B.tally C.be clear The Correct Answer is :

B.tally

77. Where a customer by a letter has advised the bank directing the banker not to honour / pay a particular cheque such a letter is called _________. Marks: 2+ 1A.letter of authority B.letter of credit C.stop payment letter D.letter of continuity. The Correct Answer is :

C.stop payment letter

78. Where a customer has issued a cheque date of which is yet to come, such a cheque is called ____. Marks: 2+ 1A.stale cheque B.post-dated cheque C.crossed cheque D.stolen cheque

The Correct Answer is :

B.post-dated cheque

79. When a bank pays a cheque according to the apparent tenor, in good faith and without having reason to doubt the bonafide of the presendor, such payment is ___________. Marks: 2+ 1A.wrong payment B.late payment C.future payment D.payment in due course The Correct Answer is : D.payment in due course 80. To get the protection under S / 131, a collecting bank has to collect a ______for credit of is customer Marks: 2+ 1A.stolen cheque B.stale cheque C.postdated cheque D.crossed cheque The Correct Answer is :

D.crossed cheque

81. Payment of cheque must be made by the banker within banking hours. Marks: 2+ 1True False The Correct Answer is :

True Marks: 2+ 1-

82. Payment of a postdated cheque by a banker is in order. True False The Correct Answer is :

False Marks: 2+ 1-

83. A bearer cheque is always payable to bearer. True False The Correct Answer is :

True

84. Payment of a cheque at a branch other than the branch where it is payable, is in order. Marks: 2+ 1True False The Correct Answer is :

False Marks: 2+ 1-

85. Stopped payment cheques should be paid by the banker. True False The Correct Answer is :

False

86. If a cheque is stolen in transit and presented at the drawee bank by a holder in due course case and if the cheques is paid by the bank in due course in a case the drawee bank would be _______. Marks: 2+ 1A.be held liable B.would not be held liable C.would be found guilty The Correct Answer is : B.would not be held liable 87. where the signature of the drawer of a cheque is not genuine, such a cheque is called _________. Marks: 2+ 1A.post-dated cheque B.forged cheque C.clearing cheque D.stale cheque The Correct Answer is :

B.forged cheque Marks: 2+ 1-

88. a forged cheque is a valid cheque. True False The Correct Answer is :

False

89. true owner of a cheque will be entitled for payment even when the cheque has been lost and it has reached the hands of holder in due course. Marks: 2+ 1-

True False The Correct Answer is :

False

90. where a person has lost an article and if the article comes in procession of a bonafide purchaser, the bonafide purchaser will not be entitled to the article. Marks: 2+ 1True False The Correct Answer is :

True

91. Section 138 states that drawer of a cheque is liable to be punished if the cheque is bounced for ___________. Marks: 2+ 1A.not crossing B.alteration in figures C.being postdated D.insufficient fund The Correct Answer is :

D.insufficient fund

92. when a drawer draws a cheque without keeping sufficient balance and if the cheque is dishonoured for insufficient funds, the drawer is punishable with and imprisonment which may extend to ________ and or a fine. Marks: 2+ 1A.two months B.four month C.one year The Correct Answer is :

C.one year

93. Demand deposits are those which can be withdrawn __________. Marks: 2+ 1A.on demand B.at any future date C.after one year D.after 5 years The Correct Answer is :

A.on demand

94. Current deposits are not entitled to ________. A.Cheque book B.Statements C.Customer service D.interest. The Correct Answer is :

Marks: 2+ 1-

D.interest.

95. In savings deposits interest is paid on _______ balance in the a/c between 10th to last working day of the month Marks: 2+ 1A.maximum B.average C.minimum D.last balance The Correct Answer is :

C.minimum Marks: 2+ 1-

96. Introduction in all deposits accounts is _________ A.optional B.compulsory C.discretion of the bank The Correct Answer is : B.compulsory

97. A minor below age of 7 can open an account independently. 1True False The Correct Answer is :

Marks: 2+

False

98. When a customer dies contractual relationship between the bank and the customer is terminated. Marks: 2+ 1True False The Correct Answer is :

True

99. A Will need not be probated by a court. True False The Correct Answer is :

Marks: 2+ 1-

False

100. If a customer tenders a cheque for payment when he is drunk bank should not have witness at the time of signing and the payment. Marks: 2+ 1True False The Correct Answer is :

False

101. A partner has no implied authority to admit the liability in any suit client filed against the firm. Marks: 2+ 1True False The Correct Answer is :

True

102. Public limited company should have a minimum of at least ________ members. Marks: 2+ 1A.50 B.15 C.7 D.without limit. The Correct Answer is :

C.7

103. Government companies are companies where the government holds at least ________ % share of the company. Marks: 2+ 1A.80 B.50 C.75 D.51 The Correct Answer is :

D.51

104. Section ______ of the company Act details the borrowing limits of the company. Marks: 2+ 1A.85(A) B.31 C.293(1) D.5(b) The Correct Answer is :

C.293(1) Marks: 2+ 1-

105. The Trustees _________ delegate their powers. A.can B.can not The Correct Answer is :

B.can not Marks: 2+ 1-

106. Execution of a will is entrusted to __________ A.Administrator B.holding of power of attorney C.Executor D.holder in due close. The Correct Answer is : C.Executor

107. Administrator is a person appointed by __________ to look after the property under letter of Administrator. Marks: 2+ 1A.the government B.the Court C.the bank D.RBI The Correct Answer is :

B.the Court

108. __________ is a person appointed by the Court to wind up the company. Marks: 2+ 1A.Administrator B.Executor C.Registrar D.liqudator The Correct Answer is :

D.liqudator

109. the person appointed by the court to look after the property under letter of administrator is executor Marks: 2+ 1True False The Correct Answer is :

False

110. the person who is entrusted with the work of execution of the will is called executor. Marks: 2+ 1True False The Correct Answer is :

True Marks: 2+ 1-

111. Trustees cannot delegate their powers. True False The Correct Answer is :

True Marks: 2+ 1-

112. No loans should be granted to clubs and associations True False The Correct Answer is :

True

113. 293 (i)(d) of company Act stipulates the borrowing limit of a limited company. Marks: 2+ 1True False The Correct Answer is :

True

114. Memorandum of Association stipulates internal rules of a company Marks: 2+ 1True False The Correct Answer is :

False

115. Article of Association lays down objects of the company. True False The Correct Answer is :

Marks: 2+ 1-

True

116. NRNR & FCNR (B) accounts can be kept in the from of _________ deposits Marks: 2+ 1A.Term Deposits B.Current Deposits C.Saving Deposits D.Recurring Deposits The Correct Answer is :

A.Term Deposits

117. Accounts jointly with residents can be opened in the case of __________ accounts. Marks: 2+ 1A.FCNR (B) and NRE B.NRO and NRNR The Correct Answer is : B.NRO and NRNR 118. Accounts jointly with residents cannot be opened in the case of __________ accounts. Marks: 2+ 1A.FCNR (B) and NRE B.NRO and NRNR The Correct Answer is : A.FCNR (B) and NRE 119. The term Non-resident Indian means an individual being a citizen of India or a person of Indian origin outside India. Marks: 2+ 1True False The Correct Answer is :

True

120. FCNR (B) account can be kept in the Current, Saving and Recurring Deposits. Marks: 2+ 1-

True False The Correct Answer is :

False

121. Rate of interest payable on NRO, NRE and FCNR Deposits are left to the discretion of Banks. Marks: 2+ 1True False The Correct Answer is :

False

122. The banker should not ________ the account of his customer unless there is justifiable reason for the closure. Marks: 2+ 1A.close B.open C.transfer The Correct Answer is :

A.close

123. Passbook is a _______ of transactions between the customer and the bank. Marks: 2+ 1A.basis B.source C.record D.root The Correct Answer is :

C.record

124. When account is following is closed by the bank, proper________ should be given to the customer Marks: 2+ 1A.thanks letter B.guarantee C.notice D.demand The Correct Answer is :

C.notice Marks: 2+ 1-

125. Passbook is a copy of the customers account.

True False The Correct Answer is :

True

126. When a banker closes the account of the customer he is not required to send any notice. Marks: 2+ 1True False The Correct Answer is :

False

127. When a banker of a partnership account who has got an account with the bank, dies the bank should close the account. Marks: 2+ 1True False The Correct Answer is :

True

128. When banker receives intimation of death of the customer, account is allowed to continue. Marks: 2+ 1True False The Correct Answer is :

False

129. The present CRR and SLR requirements are ________ , respectively. Marks: 2+ 1A.20% and 40% B.3% and 25% C.5% and 30% The Correct Answer is :

B.3% and 25% Marks: 2+ 1-

130. Present minimum capital adequacy ratio is 9% of A.Total liabilities B.Total assets C.Total risk weighted assets The Correct Answer is : C.Total risk weighted assets

131. New Prudential Accounting Norms cover

Marks: 2+ 1-

A.interest rates B.Method of lending C.Deposits D.Capital adequacy, income recognition, Assets classification and Provisioning The Correct Answer is : D.Capital adequacy, income recognition, Assets classification and Provisioning 132. A borrowal account is designated as non performing asset when the interest and/or instalment remains unpaid for Marks: 2+ 1A.1 quarter B.2 quarters C.3 quarters D.4 quarters The Correct Answer is :

B.2 quarters

133. RBI ensures that banks operate within set norms by conducting _________ inspections and _________ monitoring. Marks: 2+ 1A.on-site, off-site B.field, commodity prices C.stock, stock market The Correct Answer is : A.on-site, off-site 134. On-site inspection is followed by A.supervisory letter B.renewal of licence C.fresh audit The Correct Answer is : Marks: 2+ 1-

A.supervisory letter Marks: 2+ 1-

135. Quarterly on-site visits are undertaken in respect of

A.all banks B.urban co-operative banks C.newly licensed banks during first year The Correct Answer is : C.newly licensed banks during first year

136. Frequency of First Tranche Returns is

Marks: 2+ 1-

A.monthly B.monthly / quarterly C.monthly / quarterly / half-yearly The Correct Answer is : C.monthly / quarterly / half-yearly 137. Second Tranche of OSMOS returns cover Marks: 2+ 1-

A.asset quality B.liquidity and interest rate exposures C.ownership pattern of deposits The Correct Answer is : B.liquidity and interest rate exposures 138. Under Section 37 of the Banking Regulation Act, a moratorium order can be issued by the High Court for a maximum total period of Marks: 2+ 1A.one month B.six month C.one year The Correct Answer is :

B.six month

139. When a banking company is placed under moratorium under Section 45 of B.R.Act, the RBI must prepare a scheme Marks: 2+ 1A.VRS for staff B.capital buy back C.reconstruction of the company or amalgamation with any other bank The Correct Answer is : C.reconstruction of the company or amalgamation with any other bank 140. An order for winding up a banking company can be issued by Marks: 2+ 1A.the High Court B.the RBI C.the Central Government The Correct Answer is : A.the High Court

141. Principal function of banks are :

Marks: 2+ 1-

A.accepting deposits B.lending and investing C.non fund business and remittance services D.all of above The Correct Answer is : D.all of above