McqMate
| 1. |
Who regulates the money circulation in India? |
| A. | state bank of india |
| B. | reserve bank of india |
| C. | naba |
| D. | (d) commercial banks |
| Answer» B. reserve bank of india | |
| 2. |
Which of the following is not an organized sector in India? |
| A. | nationalised banks |
| B. | regional rural banks |
| C. | cooperative banks |
| D. | chits and money lenders |
| Answer» D. chits and money lenders | |
| 3. |
Who will settle the grievances of customers of banks? |
| A. | reserve bank of india |
| B. | state bank of india |
| C. | local courts |
| D. | ombuds men |
| Answer» D. ombuds men | |
| 4. |
Who introduced the Banking Ombudsmen Scheme? |
| A. | rbi |
| B. | sbi |
| C. | ministry of finance |
| D. | nabard |
| Answer» A. rbi | |
| 5. |
Which was the firth Bank corporated by the Indians? (1881) |
| A. | imperial bank of india |
| B. | state bank of india |
| C. | avadh commercial bank(oudh) |
| D. | reserve bank of india |
| Answer» C. avadh commercial bank(oudh) | |
| 6. |
When was Reserve Bank of India established? |
| A. | 1920 |
| B. | 1925 |
| C. | 1935 |
| D. | 1948 |
| Answer» C. 1935 | |
| 7. |
When was Reserve Bank of India Nationalised? |
| A. | 1947 |
| B. | 1948 |
| C. | 1949 |
| D. | 1950 |
| Answer» C. 1949 | |
| 8. |
When was Indian Banking Act come into force? |
| A. | 1948 |
| B. | 1949 |
| C. | 1950 |
| D. | 1951 |
| Answer» B. 1949 | |
| 9. |
Imperial Banks were amalgamated and changed as _________ |
| A. | reserve bank of india |
| B. | state bank of india |
| C. | subsidiary banks |
| D. | union bank of india |
| Answer» B. state bank of india | |
| 10. |
How many banks were first nationalised? |
| A. | 10 |
| B. | 12 |
| C. | 14 |
| D. | 16 |
| Answer» C. 14 | |
| 11. |
When was the second phase of nationalisation done? |
| A. | 9th july 1969 |
| B. | 10th july 1968 |
| C. | 16th august 1985 |
| D. | 15th april, 1980 |
| Answer» D. 15th april, 1980 | |
| 12. |
Who will act as the banker to the Government of India? |
| A. | state bank of india |
| B. | reserve bank of india |
| C. | naba |
| D. | (d) nationalised banks |
| Answer» B. reserve bank of india | |
| 13. |
Where is the Head Quarter of Reserve Bank of India? |
| A. | mumbai |
| B. | delhi |
| C. | kolkotta |
| D. | ahmedabad |
| Answer» A. mumbai | |
| 14. |
When was Lead Bank Scheme introduced? |
| A. | 1967 |
| B. | 1968 |
| C. | 1969 |
| D. | 1974 |
| Answer» C. 1969 | |
| 15. |
The first development financial institution in India that has got merged with a bank is |
| A. | idbi |
| B. | icici |
| C. | idfc |
| D. | uti |
| Answer» B. icici | |
| 16. |
……….prepared a framework through a consultative process to secure international convergence of supervisory regulations governing the capital adequacy of international banks. |
| A. | basel committee on banking supervision |
| B. | banking committee on banking supervision |
| C. | basel company on banking supervision |
| D. | banking company on banking supervision |
| Answer» A. basel committee on banking supervision | |
| 17. |
Gilt edged securities refer to |
| A. | government securities |
| B. | securities issued by municipal corporations |
| C. | securities issu |
| D. | by first class companies |
| Answer» A. government securities | |
| 18. |
Indian Banks Association (IBA) has a common net working system for sharing the ATM facilities in Mumbai, which is known as |
| A. | atm network |
| B. | shared payment network system |
| C. | cash network |
| D. | none of these |
| Answer» B. shared payment network system | |
| 19. |
World Bank stands for |
| A. | nabard |
| B. | gatt |
| C. | ib |
| D. | bank of england |
| Answer» C. ib | |
| 20. |
Where is the headquarters of SWIFT? |
| A. | hong kong |
| B. | brussels |
| C. | london |
| D. | mumbai |
| Answer» B. brussels | |
| 21. |
NABARD is a |
| A. | department of rbi |
| B. | wholly owned subsidiary of rbi |
| C. | subsidiary of sbi |
| D. | none of the above |
| Answer» D. none of the above | |
| 22. |
Which of the following statement is correct. |
| A. | foreign exchange markets are localized markets |
| B. | foreign exchange markets operate within a country’s time zone. |
| C. | foreign exchange markets are dynamic a |
| D. | round the clock markets |
| Answer» C. foreign exchange markets are dynamic a | |
| 23. |
Who is the Governor of RBI? |
| A. | bimal jalan |
| B. | y v reddy |
| C. | raghuram rajan |
| D. | ranga reddy |
| Answer» C. raghuram rajan | |
| 24. |
Section 14 of Banking Regulation Act, 1949 |
| A. | prohibits a banking company from creating a charge upon any unpaid capital of the company. |
| B. | contains a system of licensing of banks by the r.b.i. |
| C. | provides that the subscrib |
| D. | capital of a banking company should not be less than one-half of its authorized capital. |
| Answer» A. prohibits a banking company from creating a charge upon any unpaid capital of the company. | |
| 25. |
A Bank is under a statutory obligations to honour its customer's cheques vide |
| A. | section 10 of the banking regulation act, 1949. |
| B. | section 3 of the r.b.i. act, 1934. |
| C. | section 31 of the negotiable instruments act, 1881. |
| D. | none of these |
| Answer» C. section 31 of the negotiable instruments act, 1881. | |
| 26. |
The Reserve Bank of India was originally constituted as a share holder's Bank with a share capital of -- |
| A. | rs. 50 lakh |
| B. | rs. 100 lakh |
| C. | rs. 10 crores |
| D. | rs. 5 crores |
| Answer» D. rs. 5 crores | |
| 27. |
Infrastructure Development Finance Company was established in - |
| A. | 1961 |
| B. | 1997 |
| C. | 1994 |
| D. | 1991 |
| Answer» B. 1997 | |
| 28. |
Nationalised Banks have been permitted to offer their equity shares to the public to the extent of 49% of their capital as per amendments made in 1994 in |
| A. | banking regulation act, 1949 |
| B. | banking companies (acquisition & transfer of undertakings) acts 1970/1980 |
| C. | both in (i) a |
| D. | (ii) |
| Answer» B. banking companies (acquisition & transfer of undertakings) acts 1970/1980 | |
| 29. |
EXIM Bank is owned by - |
| A. | govt, of india and rbi jointly |
| B. | rbi and select commercial banks jointly |
| C. | fully own |
| D. | by govt, of india |
| Answer» C. fully own | |
| 30. |
Contribution towards Rural Infrastructure Development Fund is made by |
| A. | nabard and commercial banks jointly |
| B. | state govts. and govt, of india |
| C. | only those commercial banks who fail to achieve the stipulat |
| D. | benchmark of agricultural advances and / or priority sector advances |
| Answer» C. only those commercial banks who fail to achieve the stipulat | |
| 31. |
Credit rationing is a…………method of credit control. |
| A. | quantitative credit control |
| B. | qualitative credit control |
| C. | direct credit control |
| D. | continuous credit control |
| Answer» B. qualitative credit control | |
| 32. |
The development programme began in our country with the launch of |
| A. | community development programme |
| B. | integrated rural development programme |
| C. | small farmers development agency |
| D. | intensive agriculture area programme |
| Answer» A. community development programme | |
| 33. |
"Sans recourse" means ____. |
| A. | i am not afraid |
| B. | do not touch me |
| C. | ask the drawer |
| D. | without liability to me |
| Answer» D. without liability to me | |
| 34. |
When a drawer draws a cheque without keeping sufficient balance and if the cheque is bounced for insufficient funds. The drawer is punishable with imprisonment which may extend to and or a fine. |
| A. | two months |
| B. | one year |
| C. | four months |
| D. | six months |
| Answer» B. one year | |
| 35. |
The highest credit risk rating that can be awarded to any company by CRISIL is….. |
| A. | ++a |
| B. | aaa |
| C. | +aa |
| D. | none of the above |
| Answer» B. aaa | |
| 36. |
Bankers, in general, are hesitant to finance HUF because . |
| A. | the firms ceases to exist when the karta is dead. |
| B. | the firm ceases to exist with the death of any of the male coparcener. |
| C. | the liability of the firm to the banker is susceptible to change with the birth of male chi |
| D. | or with the death of a male coparcener in the huf. |
| Answer» C. the liability of the firm to the banker is susceptible to change with the birth of male chi | |
| 37. |
Factoring means . |
| A. | financing against bills receivables. |
| B. | financing invoices without recourse only. |
| C. | purchasing and/or administering the receivables of a concern. |
| D. | collecting the receivables and remitting to the seller. |
| Answer» C. purchasing and/or administering the receivables of a concern. | |
| 38. |
Under law of limitation , the liability of a guarantor is . |
| A. | 3 years form the date of document. |
| B. | 3 years from the date of default of the advance. |
| C. | 3 years from the date when the dema |
| D. | is made on guarantor. |
| Answer» C. 3 years from the date when the dema | |
| 39. |
The first bank to be established in India was ________ , |
| A. | bank of bengal |
| B. | bank of hindustan |
| C. | allahab |
| D. | bank |
| Answer» B. bank of hindustan | |
| 40. |
Which type of securities are held by Reserve Bank of India before issuance of currency notes ? |
| A. | gold coins and bullion |
| B. | foreign securities |
| C. | government of india's securities |
| D. | all of these |
| Answer» D. all of these | |
| 41. |
Quasi Negotiable Instrument is accepted like Negotiable Instrument because of |
| A. | the force of law |
| B. | the customs and practice |
| C. | their character of negotiability |
| D. | none of these |
| Answer» B. the customs and practice | |
| 42. |
Loan documents executed out of India must be presented for registration within……….of its arrival in India. |
| A. | three months |
| B. | four months |
| C. | six months |
| D. | twelve months |
| Answer» B. four months | |
| 43. |
Usance bills or promissory notes drawn out of India are required to be stamped by |
| A. | first holder in india |
| B. | any holder |
| C. | any party |
| D. | none of the above |
| Answer» A. first holder in india | |
| 44. |
Command Area Development Programme relates to __________ |
| A. | desert development |
| B. | hill area development |
| C. | livestock development |
| D. | irrigation development |
| Answer» D. irrigation development | |
| 45. |
The minimum percentage of Priority Sector advances to be maintained by foreign banks in India is . |
| A. | 40% |
| B. | 22% |
| C. | 32% |
| D. | 18% |
| Answer» C. 32% | |
| 46. |
Margin money scheme of KVIC is applicable to the project of individuals and entrepreneurs ______________ . |
| A. | where the total project cost does not exceed rs. 10 lakh |
| B. | where the total project cost does not exceed rs. 25 lakh |
| C. | where the total project cost does not exce |
| D. | rs. 5 lakh |
| Answer» A. where the total project cost does not exceed rs. 10 lakh | |
| 47. |
"Customer" is defined in - |
| A. | banking regulation act |
| B. | n.i. act |
| C. | r.b.i. act |
| D. | nowhere it is defined |
| Answer» D. nowhere it is defined | |
| 48. |
Prospectus is issued by a Private Limited Company when it issues |
| A. | debentures |
| B. | shares |
| C. | both debentures a |
| D. | shares |
| Answer» D. shares | |
| 49. |
A Public Limited Company should have minimum membership of - |
| A. | 50 |
| B. | 15 |
| C. | 7 |
| D. | no limit |
| Answer» C. 7 | |
| 50. |
Introduction of rating methodology for banks was introduced by RBI on the lines of- |
| A. | camel |
| B. | ir |
| C. | cma |
| D. | none of these |
| Answer» A. camel | |
| 51. |
In terms of the N.I. Act, finder of a lost cheque is : |
| A. | a holder but not holder in due course, if payable to order |
| B. | a holder in due course, if payable to bearer |
| C. | both holder a |
| D. | holder in due course, in either case |
| Answer» D. holder in due course, in either case | |
| 52. |
The charge created on a security of National Savings Certificate is - |
| A. | pledge |
| B. | hypothecation |
| C. | assignment |
| D. | .mortgage |
| Answer» A. pledge | |
| 53. |
Internet is the cheapest of all banking channels and helps banks to gain substantially in terms of………….cost. |
| A. | auditing |
| B. | deposit |
| C. | investment |
| D. | transaction |
| Answer» D. transaction | |
| 54. |
Drawing power in an account means |
| A. | limit sanctioned |
| B. | value of security |
| C. | value of security minus unpa |
| D. | stock |
| Answer» D. stock | |
| 55. |
Lien becomes time-barred three years after |
| A. | the date of loan |
| B. | date of delivery o the relative goods |
| C. | due date of loan |
| D. | lien has no limitation period |
| Answer» D. lien has no limitation period | |
| 56. |
Negative lien means - |
| A. | a declaration by a company not to encumber assets of the company without previous consent of banker |
| B. | deposit of title deeds with the bank with an oral declaration to mark bank's lien |
| C. | a lien letter execut |
| D. | by the company authorising the bank to mark lien on its fixed deposit receipt |
| Answer» A. a declaration by a company not to encumber assets of the company without previous consent of banker | |
| 57. |
Letter of Probate means- |
| A. | a letter attached with a will containing signatures of the witnesses |
| B. | confirmation of succession certificate |
| C. | a certificate issu |
| D. | by the court containing the name of the person who has to administer the property of a deceased person |
| Answer» D. by the court containing the name of the person who has to administer the property of a deceased person | |
| 58. |
Non-registration of a firm will affect in the following manner- |
| A. | on dissolution of the firm, remaining partners will have to approach to the court for settlement of their dues. |
| B. | bank will not allow an unregistered firm to open an account. |
| C. | no partner shall be in a position to institute a suit against any other partner of the firm |
| D. | none of these |
| Answer» C. no partner shall be in a position to institute a suit against any other partner of the firm | |
| 59. |
Working Capital Gap means- |
| A. | total current assets minus total current liabilities |
| B. | total assets minus intangible assets |
| C. | total liabilities minus terms liabilities. |
| D. | total current assets minus current liabilities (other than bank |
| Answer» D. total current assets minus current liabilities (other than bank | |
| 60. |
…………… constitute the largest source of funds for the banks |
| A. | cash |
| B. | loan |
| C. | deposit |
| D. | agency service |
| Answer» C. deposit | |
| 61. |
Banker's lien is a type of security. |
| A. | hypothecated |
| B. | mortgaged |
| C. | impli |
| D. | pledge |
| Answer» C. impli | |
| 62. |
Section 85(1) of the Negotiable Instrument Act 1881 provides protection to the paying banker in respect of |
| A. | forged endorsement |
| B. | material alterations on the face of the cheque |
| C. | forgery of drawer's signature |
| D. | all of these |
| Answer» A. forged endorsement | |
| 63. |
Collection of cheques for customer is a………….function of bank. |
| A. | agency function |
| B. | trustee function |
| C. | plann |
| D. | function |
| Answer» A. agency function | |
| 64. |
In periods of boom, which leads to economic instability, Reserve Bank resorts to |
| A. | sale in the market of first class securities in its possession to reduce the supply of money as a measure of open market operations |
| B. | buying of approved securities in the market as a measure of pen market operations |
| C. | hike in the bank rate as a measure of open market operations |
| D. | none of these |
| Answer» A. sale in the market of first class securities in its possession to reduce the supply of money as a measure of open market operations | |
| 65. |
Under Section 17 of the Banking Regulation Act 1949, every banking company incorporated in India is required to transfer each year to a reserve fund a sum equivalent to not less than |
| A. | 10 per cent of profit before dividends; |
| B. | 20 per cent of profit after interest tax and dividend; |
| C. | 25 per cent of profit before dividends; |
| D. | 5 per cent of gross profit |
| Answer» C. 25 per cent of profit before dividends; | |
| 66. |
After a customer has closed the account______ |
| A. | the banker is no more liable to observe secrecy of his account because the contractual relationship comes to an end |
| B. | the banker is still bound by his duty of secrecy |
| C. | the banker's duty of secrecy comes to an e |
| D. | in terms of the provisions of the negotiable instrument act, 1881 |
| Answer» B. the banker is still bound by his duty of secrecy | |
| 67. |
………….is a new scheme of deposit mobilization have been evolved by the Indian commercial banks. |
| A. | current deposit |
| B. | saving deposit |
| C. | insurance link |
| D. | deposit |
| Answer» C. insurance link | |
| 68. |
A mandate may continue to be operative even in the case of— |
| A. | death of the agent |
| B. | lunacy of the agent |
| C. | insolvency of the agent |
| D. | none of these |
| Answer» C. insolvency of the agent | |
| 69. |
………….is a document issued by the bank acknowledge the receipt of a fixed sum of money on deposit. |
| A. | collection receipt |
| B. | withdrawal receipt |
| C. | fix |
| D. | deposit receipt |
| Answer» C. fix | |
| 70. |
A bill should be presented for acceptance in case of insolvency of a drawee to |
| A. | official receiver |
| B. | drawee in case of need |
| C. | acceptor for honour |
| D. | none of the above |
| Answer» A. official receiver | |
| 71. |
An order instrument can be made payable to the bearer by making |
| A. | conditional endorsement |
| B. | full endorsement |
| C. | general endorsement |
| D. | none of the above |
| Answer» C. general endorsement | |
| 72. |
The endorser will not liable to the holder on dishonor of a negotiable instrument if he makes |
| A. | sans-recourse endorsement |
| B. | facultative endorsement |
| C. | sans-frais endorsement |
| D. | none of the above |
| Answer» A. sans-recourse endorsement | |
| 73. |
Negotiation-back implies |
| A. | return of the instrument back of he person who indorsed it earlier |
| B. | the endorser does not want the instrument to be indorsed back to him |
| C. | the endorser does not want the endorsee to incur any expenses on endorser’s account |
| D. | none of the above |
| Answer» A. return of the instrument back of he person who indorsed it earlier | |
| 74. |
Once a bearer instrument always a bearer instrument is true in case of |
| A. | a cheque only |
| B. | a bill of exchange only |
| C. | all negotiable instruments |
| D. | none of the above |
| Answer» A. a cheque only | |
| 75. |
……are treated as negotiable instrument by usage or custom of trade. |
| A. | bill of exchange |
| B. | promissory note |
| C. | cash |
| D. | hundies |
| Answer» D. hundies | |
| 76. |
The relationship between a banker and its customer is basically that of |
| A. | a debtor and a creditor |
| B. | a trustee and the beneficiary |
| C. | a principal a |
| D. | an agent |
| Answer» A. a debtor and a creditor | |
| 77. |
The banker's answer in case of dishonor of a cheque on a account of insufficiency of funds is generally |
| A. | refer to drawer (rd) |
| B. | no funds (nf) |
| C. | not arrang |
| D. | for (naf) |
| Answer» A. refer to drawer (rd) | |
| 78. |
The title of the endorsee will not be better than of the endorser in case a cheque is crossed containing the words |
| A. | & co |
| B. | not negotiable |
| C. | account payee |
| D. | none of the above |
| Answer» B. not negotiable | |
| 79. |
Travelers cheques are issue by |
| A. | travel agencies |
| B. | commercial banks |
| C. | tourist department of government of india |
| D. | none of the above |
| Answer» B. commercial banks | |
| 80. |
When a banker accepts the securities for safe custody, the relationship between a banker and a customer is that of |
| A. | a debtor and a creditor |
| B. | trustee and beneficiary |
| C. | principal a |
| D. | agent |
| Answer» B. trustee and beneficiary | |
| 81. |
A right of appropriation first lies with the |
| A. | debtor |
| B. | creditor |
| C. | court |
| D. | none of the above |
| Answer» A. debtor | |
| 82. |
The period of limitation in case of deposits with bankers from the date on which |
| A. | deposit was made |
| B. | deposit matures |
| C. | date of dema |
| D. | for payment by the customer |
| Answer» C. date of dema | |
| 83. |
Pay order is issued by the banks for |
| A. | local payments |
| B. | inter-state payments |
| C. | foreign payments |
| D. | none of the above |
| Answer» A. local payments | |
| 84. |
Certificate of Deposit cannot be issued by |
| A. | scheduled commercial banks |
| B. | regional rural banks |
| C. | all india financial institution |
| D. | none of the above |
| Answer» B. regional rural banks | |
| 85. |
The recurring deposit account combine the characteristics of ……….and fixed deposit account. |
| A. | savings account |
| B. | current account |
| C. | loan account |
| D. | none of the above |
| Answer» A. savings account | |
| 86. |
The drawee banker of a demand draft has received intimation of the loss of the draft from the purchaser. The banker should |
| A. | stop the payment |
| B. | exercise caution |
| C. | refuse to accept the notice a |
| D. | d. issue a duplicate draft |
| Answer» B. exercise caution | |
| 87. |
…………..is always drawn on a specified banker. |
| A. | bill of exchange |
| B. | promissory note |
| C. | investment receipt. |
| D. | cheque |
| Answer» D. cheque | |
| 88. |
A customer requests for issue of a bearer demand draft. The banker should |
| A. | strike off the word 'order' and should put the word 'bearer' on the draft |
| B. | request the customer to go to the head office |
| C. | refuse to issue the draft |
| D. | none of the above |
| Answer» C. refuse to issue the draft | |
| 89. |
A and B have jointly hired a locker under "Either or Survivor" caluse. A dies. The bank should |
| A. | permit b to operate the locker |
| B. | seal the locker and open it only in the presence of b and a is legal representative |
| C. | permit operation by b a |
| D. | legal representative of a jointly |
| Answer» A. permit b to operate the locker | |
| 90. |
Pay order is issued by the banks for |
| A. | local payments |
| B. | inter state payments |
| C. | foreign payments |
| D. | none of the above |
| Answer» A. local payments | |
| 91. |
When a banker collects a cheque for which he has already given cash,his position is that of a………… |
| A. | collecting bank |
| B. | dealer |
| C. | agent |
| D. | holder for value |
| Answer» D. holder for value | |
| 92. |
Merchant banking includes |
| A. | managing issue of shares |
| B. | opening branches in mandis or bazaars |
| C. | financing intermediary businessmen |
| D. | none of the above |
| Answer» A. managing issue of shares | |
| 93. |
In case of ………….days of grace are allowed |
| A. | withdrawal receipt |
| B. | bill of exchange |
| C. | cheque |
| D. | money order |
| Answer» B. bill of exchange | |
| 94. |
A minor can open and operate an account in his own name if he has atleast attained the age of |
| A. | 12 years |
| B. | 16 years |
| C. | 15 years |
| D. | none of the above |
| Answer» A. 12 years | |
| 95. |
.The person appointed to operate the account after his death by the deceased himself before his I death is called |
| A. | executor |
| B. | administrator |
| C. | attorney |
| D. | none of the above |
| Answer» B. administrator | |
| 96. |
A joint account can be opened by the banker on receipt of application signed by |
| A. | majority of the joint account holders |
| B. | all joint account holders |
| C. | any joint account holder |
| D. | none of the above |
| Answer» B. all joint account holders | |
| 97. |
A minor cannot |
| A. | accept a bill |
| B. | draw a bill |
| C. | endorse a cheque |
| D. | none of the above |
| Answer» A. accept a bill | |
| 98. |
.The interest and principle amount of a loan not repaid by a customer in a bank ,the bank consider such loan as…….. |
| A. | rd |
| B. | fd |
| C. | npa |
| D. | tod |
| Answer» C. npa | |
| 99. |
Banks create money by |
| A. | liberal credit |
| B. | differential instrument |
| C. | accepting deposit |
| D. | all or some of the above. |
| Answer» D. all or some of the above. | |
| 100. |
The Apex Co-operative Bank is known as |
| A. | central co-operative bank |
| B. | state co-operative bank |
| C. | rrb |
| D. | nabrd |
| Answer» B. state co-operative bank | |
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