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 valueii) stamp duty is borne by the bankiii)issued as usance promissory note iv)TDS is not applicable

Identify the deposita) commercial paperb) certificate of depositc) flexi depositd) 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 bankingb) 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 asa)Trade cycleb)Cash cyclec)Operating cycle

d)Revolving cycle

ANSWER -c

QUESTION-8

Loan for fish rearing is covered under Prirority Sector as ----------- advances

a) Direct Agricultureb) Indirect Agriculturec) Self Employment Scheme d) Allied to indirect Agriculture

ANSWER -a

QUESTION-9

Your bank’s 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/Creditorb)Creditor/Debtorc )Bailor/Baileed)Bailee/Bailor

ANSWER-a

QUESTION-9

• The right of set-off is:• a) Customer’s Right• b) Customer’s Obligation• c) Banker’s Right• d) Banker’s 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) Banker’s 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-18In 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 institutionc. To acquire such loans for a transfer price,

with or without recoursed. 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-20Which of the following forms of business are permissible under BR Act 1949:

a) Borrowing b) Issuance of Letters of Creditc) Buying and selling of bulliond) All of the above

Answer - d