McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce (B Com) .
Chapters
| 1. |
In which year was the Banking Regulation Act passed? |
| A. | 1949 |
| B. | 1955 |
| C. | 1959 |
| D. | 1969 |
| Answer» A. 1949 | |
| 2. |
On which rate bases, overnight money is needed by bank from RBI? |
| A. | MSF |
| B. | Repo rate |
| C. | Reverse repo |
| D. | Bank rate |
| Answer» A. MSF | |
| 3. |
____________________are excluded from the Banking Regulation Act 1949. |
| A. | Public and Private Sector Banks |
| B. | Primary Agricultural Credit Society and cooperative land mortgage banks |
| C. | SEBI |
| D. | Regional Rural Banks |
| Answer» B. Primary Agricultural Credit Society and cooperative land mortgage banks | |
| 4. |
In which year, the Banking Regulation Act was amended to include cooperative banks under its purview by adding the Section 56. |
| A. | 1964 |
| B. | 1965 |
| C. | 1986 |
| D. | 1987 |
| Answer» B. 1965 | |
| 5. |
The Reserve Bank of India is given the responsibility of regulating and supervising the _________ under Reserve Bank of India Act, 1934. |
| A. | Insurance Companies |
| B. | Transport Companies |
| C. | Banking Financial Companies |
| D. | Non-Banking Financial Companies |
| Answer» D. Non-Banking Financial Companies | |
| 6. |
In the case of a banking company incorporated outside India balance-sheet and profit and loss account shall be signed by _________ of the company. |
| A. | Director of the principal office |
| B. | Owner agent of the principal office |
| C. | Manager or agent of the principal office |
| D. | Central Government |
| Answer» C. Manager or agent of the principal office | |
| 7. |
Copies of balance-sheets and accounts to be sent to____________. |
| A. | RBI |
| B. | Government of India |
| C. | Registrar |
| D. | Auditor |
| Answer» C. Registrar | |
| 8. |
Who has the power to give directions to other Banking Companies? |
| A. | RBI |
| B. | Government of India |
| C. | Registrar |
| D. | Auditor |
| Answer» A. RBI | |
| 9. |
Which section of Banking Regulation Act 1949 relates with the Power of Reserve Bank to issue directions in respect of stressed assets? |
| A. | Section 35AA |
| B. | Section 35AB |
| C. | Section 35B |
| D. | Section 35 BB |
| Answer» B. Section 35AB | |
| 10. |
Change of name by a banking company only happens with the approval of __________? |
| A. | RBI |
| B. | Government of India |
| C. | Registrar |
| D. | Auditor |
| Answer» A. RBI | |
| 11. |
Form of Balance sheet of banking Companies includes Reserve & Surplus in |
| A. | Schedule 1 |
| B. | Schedule 2 |
| C. | Schedule 3 |
| D. | Schedule 4 |
| Answer» B. Schedule 2 | |
| 12. |
Form of Balance sheet of banking Companies includes Fixed assets in |
| A. | Schedule 8 |
| B. | Schedule 9 |
| C. | Schedule 10 |
| D. | Schedule 11 |
| Answer» C. Schedule 10 | |
| 13. |
Contigent Liabilities in case of banking Companies are included in_________. |
| A. | Schedule 9 |
| B. | Schedule 10 |
| C. | Schedule 11 |
| D. | Schedule 12 |
| Answer» D. Schedule 12 | |
| 14. |
Banking company means any company which transacts the business of ________. |
| A. | Banking only |
| B. | Banking & Insurance |
| C. | Banking & Foreign Exchange |
| D. | Banking & Manufacturing |
| Answer» A. Banking only | |
| 15. |
Managing agent includes |
| A. | Secretaries and Treasurers |
| B. | Where the managing agent is a company, and Director of such company, and any member thereof who holds substantial interest in such company |
| C. | Where the managing agent is a firm, any partner of such firm |
| D. | All of the above |
| Answer» D. All of the above | |
| 16. |
Regional rural bank means a regional rural bank established under section 3 of the Regional Rural Banks Act, __________. |
| A. | 1974 |
| B. | 1975 |
| C. | 1976 |
| D. | 1977 |
| Answer» C. 1976 | |
| 17. |
Reserve Bank means the Reserve Bank of India constituted under section 3 of the Reserve Bank of India Act, _________. |
| A. | 1934 |
| B. | 1935 |
| C. | 1945 |
| D. | 1946 |
| Answer» A. 1934 | |
| 18. |
In case of banking company incorporated outside India, aggregate value of its paid-up capital and reserve shall not be less than Rs. __________. |
| A. | 5 Lakhs |
| B. | 12 Lakhs |
| C. | 15 Lakhs |
| D. | 18 Lakhs |
| Answer» C. 15 Lakhs | |
| 19. |
In case of an Indian banking company, the sum of its paid-up capital and reserves if it has places of business in more than one State shall not be less than |
| A. | 5 Lakhs |
| B. | 12 Lakhs |
| C. | 15 Lakhs |
| D. | 18 Lakhs |
| Answer» A. 5 Lakhs | |
| 20. |
According to Sec. ______, a banking company is not permitted to pay directly or indirectly by way of commission, brokerage, discount or remuneration on issues of its shares in excess of 2½% of the paid-up value of such shares. |
| A. | 10 |
| B. | 11 |
| C. | 12 |
| D. | 13 |
| Answer» D. 13 | |
| 21. |
FATCA stands for |
| A. | Foreign Account Tax Compliance Act |
| B. | Foreign Account Trade Company Act |
| C. | Financial Account Tax Compliance Act |
| D. | Fiscal Account Tax Compliance Act |
| Answer» A. Foreign Account Tax Compliance Act | |
| 22. |
As per the provisions of which act all financial institutions have to maintain a record for all form of transactions? |
| A. | Companies Act, 1956 |
| B. | Credit Information (Companies Regulation Act, 2005) |
| C. | Information Technology Act, 2000 |
| D. | PMLA Act, 2002 |
| Answer» D. PMLA Act, 2002 | |
| 23. |
Which of the following Act refers to the acquisition and transfer of the undertakings of certain banking companies? |
| A. | Companies Act, 1956 |
| B. | Credit Information (Companies Regulation Act, 2005) |
| C. | Banking Companies (acquisition and transfer of undertakings), 1970 |
| D. | Banking Regulation Act, 1949 |
| Answer» C. Banking Companies (acquisition and transfer of undertakings), 1970 | |
| 24. |
Which of the following is the clearing agency for Government securities? |
| A. | GOI |
| B. | RBI |
| C. | CCIL |
| D. | SEBI |
| Answer» C. CCIL | |
| 25. |
Banks are required to maintain SLR under which act? |
| A. | Section 24 of the Banking Regulation Act |
| B. | Section 35 of the Negotiable Instrument Act, 1881 |
| C. | Section 24 of RBI Act |
| D. | Section 40 of Indian Contract Act, 1872 |
| Answer» A. Section 24 of the Banking Regulation Act | |
| 26. |
It is a ----------------- obligation of a banker to honour the cheques of the customer drawn against current |
| A. | Mutual |
| B. | Statutory |
| C. | Unstatutory |
| D. | All of the above |
| Answer» B. Statutory | |
| 27. |
In India, the law regulating the Negotiable instruments are |
| A. | Banking Regulation Act 1949 |
| B. | Reserve Bank of India Act 1934 |
| C. | Negotiable Instruments Act 1881 |
| D. | Companies Act 1956 |
| Answer» C. Negotiable Instruments Act 1881 | |
| 28. |
In Negotiable Instruments Act 1881, which section defines promissory note? |
| A. | Section 1 |
| B. | Section 2 |
| C. | Section 3 |
| D. | Section 4 |
| Answer» D. Section 4 | |
| 29. |
A drawer in the bill of exchange can also be a |
| A. | Paymaster |
| B. | Payee |
| C. | Banker |
| D. | Creditor |
| Answer» B. Payee | |
| 30. |
The rate at which RBI discounts approved bill of exchange is |
| A. | Bank rate |
| B. | Interest rate |
| C. | Exchange rate |
| D. | Discount rate |
| Answer» D. Discount rate | |
| 31. |
Who is primarily liable on a promissory note? |
| A. | Holder |
| B. | Maker |
| C. | Drawee |
| D. | Endorser |
| Answer» B. Maker | |
| 32. |
How many parties are mainly involved in Promissory Note? |
| A. | One |
| B. | Five |
| C. | Two |
| D. | Three |
| Answer» C. Two | |
| 33. |
In a bill of exchange, drawee is the person |
| A. | who draws the bill |
| B. | on whom the bill is drawn |
| C. | to whom the payment of the bill is to be made |
| D. | to whom the payment of the bill is not to be made |
| Answer» B. on whom the bill is drawn | |
| 34. |
------------ is a dead cheque |
| A. | Post dated cheque |
| B. | Stale cheque |
| C. | Ante dated cheque |
| D. | Pre dated cheque |
| Answer» B. Stale cheque | |
| 35. |
Name the person to whom the amount of the cheque is payable? |
| A. | Drawer |
| B. | Payee |
| C. | Drawee |
| D. | Acceptor |
| Answer» C. Drawee | |
| 36. |
Discounting of bills of exchange is |
| A. | Clean advance |
| B. | Secured advance |
| C. | Neither clean advance nor secured advance |
| D. | Unsecured advance |
| Answer» C. Neither clean advance nor secured advance | |
| 37. |
Expand NEFT |
| A. | National Electronic Fund Transfer |
| B. | Neutral Electronic Fund Transfer |
| C. | Nominal Electronic Fund Transfer |
| D. | Natural Electronic Fund Transfer |
| Answer» A. National Electronic Fund Transfer | |
| 38. |
A negotiable instrument drawn or make in India is called_______ instrument. |
| A. | Inland |
| B. | Foreign |
| C. | Time |
| D. | Clean |
| Answer» A. Inland | |
| 39. |
The following one is a negotiable instrument, negotiable by usage or custom |
| A. | Bill of Exchange |
| B. | Accommodation Bill |
| C. | Promissory Note |
| D. | Share warrant |
| Answer» D. Share warrant | |
| 40. |
The most important feature of a negotiable instrument is |
| A. | Free transfer |
| B. | Transfer free from defects |
| C. | Right to sue |
| D. | Both A & B |
| Answer» D. Both A & B | |
| 41. |
The following one is absolutely essential for a special crossing. |
| A. | Two parallel transverse lines |
| B. | Words "And company? |
| C. | Words "Not negotiable" |
| D. | Name of a banker |
| Answer» D. Name of a banker | |
| 42. |
Cheque is payable on |
| A. | Demand |
| B. | Usage |
| C. | Fixed future date |
| D. | After sight |
| Answer» A. Demand | |
| 43. |
The reasonable period allowed in India for the presentation of a cheque is |
| A. | 1 year |
| B. | 3 months |
| C. | 9 months |
| D. | depending upon custom |
| Answer» B. 3 months | |
| 44. |
Section 6 of the Negotiable Instruments Act defines ___. |
| A. | Cheque |
| B. | Bill of Exchange |
| C. | Promissory Notes |
| D. | Dishonour by non-payment |
| Answer» A. Cheque | |
| 45. |
If a Minor draw, indorse, deliver and negotiate Negotiable Instruments, it binds __ |
| A. | All the parties except minor |
| B. | All the parties including minor |
| C. | Minor Only |
| D. | Minor and Only Drawer |
| Answer» A. All the parties except minor | |
| 46. |
Dishonour of Negotiable Instrument by Non Payment is covered under section in Negotiable Instrument Act 1882… |
| A. | Section 90 |
| B. | Section 91 |
| C. | Section 92 |
| D. | Section 93 |
| Answer» C. Section 92 | |
| 47. |
Which of the following section in the Negotiable Instruments Act deals with the Bill of Exchange? |
| A. | Section 5 |
| B. | Section 6 |
| C. | Section 4 |
| D. | Section 13 |
| Answer» A. Section 5 | |
| 48. |
Which of the followings are not the Negotiable Instruments as defined by the Statute… |
| A. | Banker’s Note |
| B. | Promissory Note |
| C. | Bill of Exchange |
| D. | Cheques |
| Answer» A. Banker’s Note | |
| 49. |
Which of the following is/are true about the Negotiable Instruments Act, the Promissory Note is … A) Definition of Promissory Note is given in section 8 of the Negotiable Instrument Act B) Containing an unconditional undertaking C) To pay a certain sum of money only to a specific person or the bearer D) The seller is bound to accept the promissory note E) A document was written and signed by the payer/maker |
| A. | (A), (B) and (C) |
| B. | (B), (C) and (E) |
| C. | (B), (C), and |
| Answer» B. (B), (C) and (E) | |
| 50. |
The Negotiable Instruments (Amendment) Bill, 2017 inserted a provision allowing a court trying an offence related to cheque bouncing, to direct the drawer (person who writes the cheque) to pay interim compensation to the complainant. The interim compensation will not exceed ___% of the cheque amount? |
| A. | 15% |
| B. | 25% |
| C. | 30% |
| D. | 20% |
| Answer» D. 20% | |
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