MODEL QUESTIONS

MODULE -B

QUESTION -1
A bank accepts a deposit from a Corporate house. The features of the deposit are: i) accepted at a discounted value ii) stamp duty is borne by the bank iii)issued as usance promissory note iv)TDS is not applicable Identify the deposit a) commercial paper b) certificate of deposit c) flexi deposit d) caution deposit

ANSWER -b

QUESTION - 2 Banks cannot accept FCNR B deposits in ----a) Canadian dollar b) Singapore dollar c) US dollar d) Australian dollar

 Answer - b

QUESTION - 3 Tele banking is based on a) virtual banking b) online banking c) voice processing d) core banking

 Answer -c

QUESTION-4
A cheque is dated 12/03/09.the due date is: a) 12/06/09 b) 14/06/09 c) 12/09/09 d) None

ANSWER-d

QUESTION-5
Charge created on LIC Policy is: a) Hypothecation b) Pledge c) Assignment d) Mortgage

ANSWER -d

QUESTION-6
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

ANSWER -d

QUESTION-7
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

ANSWER -c

QUESTION-8
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

ANSWER -a

QUESTION-9
Your banks customer XYZ Ltd, enjoys a CC limit of Rs.1,00,000.00 The CC account shows a credit balance of Rs,10,205.00. The relationship between your bank and XYZ Ltd is: a)Debtor/Creditor b)Creditor/Debtor c )Bailor/Bailee d)Bailee/Bailor

ANSWER-a

QUESTION-9
The right of set-off is: a) Customers Right b) Customers Obligation c) Bankers Right d) Bankers Discretion

ANSWER -d

QUESTION -10
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

ANSWER -d

QUESTION-11
Which one of the following is not barred by law of limitation? a) Pledge b) Hypothecation c) Bankers lien d) Guarantee

ANSWER -c

QUESTION-12
Obligation of a Banker to maintain secrecy is applicable to a) Only in case of existing deposit accounts b) Only in respect existing loan accounts c) Only in case of closed accounts d) All types of deposit/loan accounts (existing/closed)

ANSWER-d

QUESTION-13
Bank A allows one of its clients to withdraw against clearing of a cheque. The banker is called as: a) Collecting and Paying banker b) Holder in due course c) Holder for value d) Reimbursement banker

ANSWER- c

QUESTION-14
Management of a Bank vests with a) Reserve Bank of India b) Asset Liability Committee (ALCO) c) Board of Directors d) None of the above

ANSWER-c

QUESTION-15
Ram issues a stop payment instructions to his banker to stop payment of a cheque for Rs,50,000.00. This is a) A request from Ram b) An intimation from Ram c) An advice from Ram d) A mandate from Ram

Answer - d

QUESTION-16
Which one of the Non Resident Deposit schemes is not permitted. FCNR a/cs NRNR a/cs NRE a/cs NRO a/cs

Answer-b

QUESTION-17
In a demand draft the word order is changed to bearer by the holder of the demand draft. It is called as: a)Endorsement b)Material alteration c)Crossing d)None of the above

ANSWER- b

QUESTION-18
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

Answer - d

QUESTION-19
The apex institution which handles refinance for agriculture and rural development is called: a) RBI b) SIDBI c) NABARD d) SEBI

Answer - c

QUESTION-20 Which of the following forms of business are permissible under BR Act 1949:
a) Borrowing b) Issuance of Letters of Credit c) Buying and selling of bullion d) All of the above

Answer - d