JAIIB-Principles & Practice of Banking-Mock Test-1 · c) c) JAIIB-Principles & Practice of...

JAIIB-Principles & Practice of Banking-Mock Test-1

Institution of Banking & Finance (IBF-VIJAYAWADA)

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www.ccevijayawada.com

1) Which of the following is a measure of the Risk Management in Banks ?

a) SLR

b) CRR

c) CAR

d) ALL

.

2) Financial institutions which provide long-term funds for industry and agriculture are known as

a) All India Development Financial Institues(AIFIs)

b) NBFCs

c) MFCs

d) None of the Above

.

3) The Board of Financial Supervision (BFS) was set up in 1994 to oversee the Indian Financial System,

comprising not only commercial banks, state cooperative banks, but also the All India Financial

Institutions (AIFIs) and ................

a) Nidhi Companies

b) Non-Banking Finance Companies (NBFCs)

c) Chit Funds

d) Mutual Funds

.

4) The Board of Financial Supervision (BFS) BFS has a full time vice-chairman and six other members,

apart from the ...............................as its chairman

a) Finance Minister

b) RBI Governor

c) Prime Minister

d) Dy,Governor of RBI

.

5) The RBI controls the cost of bank credit through which of the following Policy Rate?

a) Bank Rate

b) Base Rate

c) PLR rate

d) Repo Rate

.

6) 1.The RBI issues monetary policy for the country

2.The Ministry of Finance issues fiscal policy

3.The Ministry of Commerce issues the EXIM policy

a) 1 and 2 are correct

b) 2 and 3 are correct

c) 1 and 3 are correct

d) All are correct

.



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7) RBI uses its monetary policy for controlling inflationary or deflationary situations in the economy by

using one or more of the monetary control tools.Which of the following are one among such tools used

by RBI?

a) Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR)

b) Bank Rate

c) Open Market Operations (OMOs)

d) All the above

.

8) With a view to increase or decrease the liquidity in the banking system and thereby affect the loanable

funds with banks,RBI initiates sale or purchase of government securities in open market and this method

is called

a) Repo

b) Reverse Repo

c) G-secs or government securities Auction Market

d) Open Market Operations (OMOs)

.

9) The RBI issues directives, under Sections 21 and 35A of the Banking Regulation Act, stipulating certain

restrictions on bank advances against specified sensitive commodities such as Pulses, other food grains

etc.This method of credit control is a kind of

a) Selective Credit Control (SCC)

b) Inflation Control

c) Liquidity Adjustment Fecility(LAF)

d) Quantitaive credit Control

.

10) In the wake of liberalisation policy of 1991, most of credit contol tools have since been discontinued

and are no longer used by RBI,Which are they?

a) Credit Rationing/Allocation and Credit Planning

b) Inventory and Credit Norms

c) Credit Authorisation

d) All of the Above

.

11) Which of the following regulatory restrictions on lending by banks in terms of RBI directives or the

Banking Regulation Act, 1949 (BRA) are correct?

a) No advance or loan can be granted against the security of the bank's own shares or partly paid shares

of a company

b) No bank can hold shares in a company As pledgee or mortgagee in excess of the limit of 30 per cent

of the Paid-up capital of that company

c) No bank should grant loans against CDs/FDs issued by other banks/Money Market Mutual Funds

d) All the above are true

.



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12) The duty of maintaining the stability of the external value of the national Currency - Indian Rupee is

rested with which of the following Authority?

a) Directorate of Foreign Currency

b) Directorate of Commerce and Industry

c) Ministry of Finance

d) RBI

.

13) Which of the following refers to the cash that all banks (scheduled and non-scheduled) are required to

maintain with RBI as a certain percentage of their demand and time liabilities (DTL)?

a) SLR

b) CRR

c) Base Rate

d) Marginal Standing Fecility(MSF)

.

14) If there is a cut in the CRR prescribed by RBI,then which of the following monetary results would

ensue?

a) It enhances loanable funds with banks and reduces their dependence on the call and term money

market

b) This will bring down the call rates

c) It enhances the liquidity with Banks

d) All of the above are correct

.

15) Which of the following is the supplementary liquid reserve requirements of banks, in addition to CRR?

a) CAR

b) CRAR

c) SLR

d) Marginal Ratio

.

16) Which rate is the standard rate at which RBI is prepared to buy or rediscount bills of exchange or other

eligible commercial paper from banks?

a) Base Rte

b) Repo Rate

c) Marginal Standing Fecilty(MSF)

d) Bank Rate or Rediscounting Rate

.

17) An efficient and effective Payment and Settlement System is a necessary condition for a well running

Financial System.Under which of the following legislation does RBI control PS system in India?

a) RBI Act 1934

b) BR Act 1949

c) PSS Act 2007

d) Negotiable Instruments Act 1881

.



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18) The Central Bank provides liquidity support to banks on a temporary basis through the facility of

repurchase of securities to banks to meet their short-term liquidity requirements.This is called

a) REPO

b) Reverse REPO

c) CRR

d) SLR

.

19) Whom among the following undertake a number of activities for corporate companies such as

undertaking the issue of stocks, fund raising,providing advisory services and counsel on mergers and

acquisitions?

a) Banks

b) Management Consultants

c) Merchant Bankers

d) Specialist Advisory Banks

.

20) FIIs are foreign-based funds authorised by

a) RBI

b) M/O Finance

c) Foreign Investments Promotion Board (FIPB)

d) Securities and Exchange Board of India(SEBI)

.

21) Whom among the following hold securities or shares in 'demat' form ( hold in electronic form as

opposed to physical form)?

a) Depositories

b) Depository Participants(DPs)

c) Priamary Dealers(PDs)

d) All the above

.

22) Which of the following is a 'collective Investment' that pools money from investors and invests in

Stocks, Debt and other Securities?

a) Community Fixed Deposits

b) Stocks

c) Collective Investment Plans

d) Mutual Funds

.

23) IRDAI is the Regulator for all types of Insurance business,general,life assurance except

a) Medical Insurance

b) Agriculture Insurance

c) Fire and safety Insurance

d) Deposit Insurance

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24) Who has has direct supervision over depositories and mutual funds?

a) RBI

b) SEBI

c) IRDAI

d) Central Governmnet

.

25) Issue and servicing of government debt is managed by

a) Commercial banks

b) SEBI

c) RBI

d) All the above

.

26) Who provide clearing house facilities for netting of payments and securities delivery to securities and

shares?

a) Primary dealers

b) SEBI

c) Registrars

d) Stock exchanges

.

27) The structure that mobilises the capital from various surplus sectors of the economy and allocate and

distribute the same to the various needy sectors is called

a) Economy of the country

b) Financial system

c) Banking System

d) Debt market

.

28) The transformation of 'Savings' into 'Investments and Consumption' is facilitated by the active role

played by

a) Capital market

b) Banks only

c) Mutual funds

d) Entire Financial System

.

29) Retail banking sector is characterised by which of the following basic features?

1. Multiple products (deposits, credit cards, insurance, investments and securities).

2. Multiple channels of distribution (call centre, branch, Internet and kiosk); and

3. Multiple customer groups (consumer, small business, and corporate).

a) 1 and 2

b) 2 and 3

c) 1 and 3

d) All

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30) Within the retail Banking segment, which type of Loan products have the least gross asset impairment?

a) Home Loans

b) Personal loans

c) Crop loans

d) Educational Loans

.

31) Which of the following Agencyprepares comprehensive credit information by collecting, collating and

disseminating credit information pertaining to both commercial and consumer borrowers?

a) ICRA

b) Fitch

c) CRAI

d) CIBIL

.

32) doing banking business with industrial and business entities - mostly corporates and trading houses,

including multinationals, domestic business houses and prime public sector companies is called by the

name of.......

a) Corporate Banking

b) Social Rsponsibility Banking

c) Industrial Banking

d) Whole Sale Banking

.

33) Which product offerings are suitably structured taking into account a client's risk profile and specific

needs/

a) Retail Banking Products

b) Wholesale Banking Products

c) Industrial Banking Products

d) None

.

34) If a Bank has products to suit other banks requirements in areas like Clearing sub-membership,

DD/cheques payable at par, RTGS - Sub-membership, Cheque Collection, Funds Transfer, ATM tie-

ups, etc.Such services can be categoriesd as

a) Interbanking Services

b) Wholesale Banking Services

c) Social Banking Services

d) Real Time Settlement Services

.

35) Banks provide preshipment finance in the form of.........

a) Export Packing Credit (EPC)

b) Export Bill Negotiation

c) Letter of Credit (LC),

d) Preshipment finance

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36) Banks negotiate export bills drawn under Letter of Credit (LC), if the documents are found to be strictly

in terms with the LC conditions and payment of the bills to the exporter is made even before the bills are

realised from the importers.Such a service is known as

a) Export Bill Negotiation

b) Export Bill Collection Scheme

c) Letter of Credit (LC) realisation Scheme

d) None of the Above

.

37) Banks also issue Guarantees in foreign currency on behalf of exporters for approved purposes as defined

under FEMA, subject to availability of credit limits or against 100 per cent cash margin.This is called

a) Export Bill Guarantee

b) Letter of Credit (LC),

c) Letter of Indent (LI),

d) All the above are synonyms

.

38) 'EEFC' Account stands for

a) Exchange Earners Fully Convertible Account

b) Exchange Earners Foreign Currency Account

c) Earners Exchanged Foreign Currency Account

d) Earners Exchanged Fully Convertible Account

.

39) Which of the follwing refers to a 'Super Financial Hub' or 'Super Financial Market' for marketing of all

the financial products under one roof ?

a) Wholesale Banking

b) Universal Banking

c) Super Financial Banking

d) Global Banking

.

40) The merger of ICICI with ICICI Bank and the merger of IDBI with IDBI Bank can be referred as finest

examples of Progress of which type of Banking system in India?

a) Universal Banking

b) Mega Banking

c) Cluster Banking

d) Syndicate Banking

.

41) With prior approval of RBI, most of the banks in India sell imported Gold Coins of 999.9 purity.This

type of Gold coins are termed as

a) Investment grade pure gold

b) Goldmen sachs Grade

c) Hallmark Grade

d) Government Grade

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42) Atype of negotiable (transferable) financial instrument that is traded on a local stock exchange of a

country but represents a security, usually in the form of equity that is issued by a foreign publicly listed

company is known as........

a) Depository Receipt (DR)

b) Indian Depository Receipt (IDR)

c) Depository Receipt Order (DRo)

d) Foreign Depository Receipt (FDR)

.

43) Global Depository Receipts (GDRs),American Depository Receipts (ADRs),European Depository

Receipts (EDRs),Indian Depository Receipts (IDRs) are

a) Types of negotiable (transferable) financial instrument that are traded on a local stock exchange of a

country but represents a security, usually in the form of equity that is issued by a foreign publicly

listed company

b) These allows investors to hold shares in equity of other countries


d) None are correct

.

44) In Deposit Receipt Mechanism,the bank abroad which issues Depository Receipts(DRs) is known as

a) Custodian Bank

b) Depository Bank

c) Advising Bank

d) Referral Bank

.

45) Foreigners or non-residents (i.e. people living outside India other than Non-Resident Indians and

Persons of Indian Origin) are not allowed to invest directly in the Indian stock market.Through which of

the following mechanism are they allowed to invest in India?

a) ADRs

b) GDRs

c) Participatory Notes 9PNs)

d) All the Above

.

46) According to SEBI, 'A Foreign Institutional Investor or sub-account may issue, deal in or hold, offshore

derivative instruments such as Participatory Notes, Equity Linked Notes or any other similar

instruments, but are subject to

a) "Know Your Customert" requirement

b) "Know Your Client" requirement

c) "Know Your Company" requirement

d) "Know Your Customs" requirement

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47) On recommendation of which Committee , in 2004, SEBI passed a regulation that derivative

instruments like Participatory Notes against underlying Indian securities can be issued only to regulated

entities and further transfers, if any, can also be to other regulated entities only?

a) Lakadawala Committee

b) Lalith Sen Committee

c) Lahiri Committee

d) Lohiri Committee

.

48) Which of the following is/are true about Capital Markets?

1. Capital market is a market for long-term debt and equity shares

2. In this market, capital funds comprising both equity and debt are issued and traded

3. It includes private placement sources of debt and equity as well as organised markets like stock

exchanges and Mutual Funds

a) 1 and 2 are correct

b) 1 and 3 are correct


d) All are correct

.

49) Secondary market could be either an auction or a dealer market. What segment of secondary market can

be called as an example of Dealer Market ?

a) Staock Exchanges

b) Over the Counter (OTC) Exchange

c) Share Broking Firm

d) All of the Above

.

50) How much percentage beyond which no single investor either directly or indirectly, can hold shares in

an Indian stock exchange/

a) 49%

b) 20%

c) 10%

d) 5%

.

51) Foreign institutional investors(FIIs) can now invest up to .................... percent in stock exchanges in

India

a) 49

b) 51

c) 25

d) 100

.



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52) The issue of new securities to the existing shareholders is

a) Preferential Shares Issue

b) Rights Issue

c) Debentures Issue

d) Preferential Stock Issue

.

53) Government Securities (G-Secs) are sovereign coupon-bearing instruments which are issued by the

Reserve Bank of India on behalf of the Government of India.The term sovereign means..........

a) Coupon Rate for these instruments is High

b) These are issued for government borrowing only

c) These are issued by sovereign Countries only

d) These are credit risk free instruments

.

54) Debentures are bonds issued by a company bearing a fixed rate of interest and are issued to rise loans

from public.Debentures are normally secured/charged against................of Comapny

a) Networth

b) Profits

c) Assets

d) Capital

.

55) A bond issued at a discount and repaid at a face value is called

a) Convertible Bond

b) Discounted Bond

c) Zero Coupon Bond

d) Zero annuity Bond

.

56) . Presently, the trades pertaining to the rolling settlement across stock Exchanges are settled on a

a) T+1 day basis

b) T+2 day basis

c) T+3 day basis

d) On the spot

.

57) A prospectuswhich does not have details of either price of number of shares being offered or the amount

of issue is .......

a) Draft Offer Document

b) Prospectus

c) Red Herring Prospectus (RHP)

d) Draft Offer Prospectus

.



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58) The ownership, management and trading functions of a stock exchange are clearly segregated in respect

of

a) Demutualised exchange

b) Corporatised exchange

c) Any stock exchange

d) ) None

.

59) Since Independence,On most occasions, high inflation in India was due to

a) Food Shortage

b) Oil Shortage and high import of Oil

c) 1 and 2

d) Failure of Monsoons

.

60) the annualized percentage change in a general price index over time is konown as

a) Inflation Rate

b) Boom

c) Recession Rate

d) Deflation Rate

.

61) Which Index reflects the change in the level of prices of a basket of goods as a whole?

a) Wholesale Price Index (WPI)

b) Consumer Price Index (CPI)

c) Food Inflation Index

d) GDP Deflator

.

62) Money Supply refers to

a) The amount of money in banks

b) The amount of money with the people

c) The amount of money in circulation in an economy

d) None of the above

.

63) RBI checks inflation by

a) Increasing bank rate

b) Increasing CRR

c) Both

d) None

.

64) Which of the following is near money?

a) Bill of exchange

b) Saving bonds

c) Gilt edged securities

d) All the three

.



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65) Which section of Foreign Exchange Management Act (FEMA), 1999,defines the term'foreign

exchange'?

a) Section 1

b) Section 2

c) Section3

d) Section 4

.

66) Simultaneous buying and selling of a commodity/Currencies in two or more markets to take advantage

of temporary differences in prices is known as............

a) Hawala

b) Murath

c) Arbitrage

d) Spot Fix

.

67) Scheduled bank refers to a bank

a) authorised by Central government to transact government business

b) registered with Ministry of Finance, Govt of India

c) which is included in the second schedule to the Reserve Bank of India Act, 1934

d) incorporated as a cooperative society

.

68) Treasury Bill means

a) a bill drawn on a treasury

b) an instrument issued by RBI on behalf of Central Government for short-term borrowing

c) a bill drawn by any authority by sitting in treasury office

d) a bill drawn by Member of Parliament

.

69) A commercial paper refers to

a) an unsecured money market instrument issued by a high networth company in the form of

promissory note

b) a paper issued by commercial organisations

c) a secured money market instrument

d) a letter issued by scheduled commercial banks for seeking refinance from NABARD

.

70) KYC guidelines have been revised by Reserve Bank of India on the basis of recommendations made by

a) Rangarajan Committee

b) Narasimham Committee

c) Gupta Committee

d) Financial Action Task Force (FATF) on Anti Money Laundering (AML) standards and on

Combating Financing of Terrorism (CFT)

.



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71) An open ended fund means

a) The fund exists for perpetuity. There is no ceiling on the amount to be collected or raised

b) Investors are assured of dividends capital appreciation and safety of their investments

c) A repurchase facility close to net asset value (NAV) makes it better than close ended fund

d) All of these

.

72) While making a payment in cash to a blind person

a) payment should be witnessed

b) witness should be other than passing official

c) witness is required from another customer

d) 1 and 2

.

73) Fixed deposit receipt is

1.non-transferable

2.Non-negotiable

3.Quasi-negotiable

4.Non collaterable

a) 1,2,are correct

b) 1,3 are correct

c) 1,4 are correct

d) All are correct

.

74) What does a higher Reverse Repo Rate mean?

a) Incentive to banks to park money with RBI

b) Disincentive to park money with RBI

c) Borrowing costs will go up

d) Borrowing costs will get reduced

.

75) how can cheque truncation be done?

a) Using only MICR data

b) Using only image processing

c) Both

d) None

.

76) microfiche is

a) An anti virus software

b) A data base system

c) A decision support system

d) A data storage or back up media

.



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77) Which of the following is not a banking related network?

a) Banknet

b) INFINET

c) National Financial Switch(NFS)

d) ARPANET

.

78) VSNL's GIAS Network is

a) Special network to provide high speed broadband to banks

b) A network for all banks and finacial institutions

c) Main Internet access node for India

d) None

.

79) Which of the following is a a message transmission system for financial messages between banks

globally?

a) INFINET

b) SWIFT

c) INET

d) IFSC

.

80) Clearing House Inter-bank Payment System (CHIPS) is a Inter-bank Payment System based at

a) Hongkong

b) London UK

c) New York USA

d) Europe

.

81) which of the following is an electronic payment environment where Payment instructions processed on

a 'continuous'basis and transactions are settled without' being waited for'?

a) NEFT

b) SWIFT

c) RTGS

d) All

.

82) In which of the following payment system,the message is passed on by the participant and clearing

system interface (PI) to inter-bank funds transfer processor (IFTP),?

a) RTGS

b) SWIFT

c) BANKNET

d) CASH TREE

.



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83) Which Committee has recommended that the Reserve Bank of India should establish a data warehouse

on banking and finance for the data collection and warehousing?

a) 1st Ranga Rajan Committee

b) 2nd Ranga Rajan Committee

c) Iyer Committee

d) Vasudevan Committee

.

84) In internet parlance,'SPAM' means

a) Deleted files from a database

b) A virus

c) Unsolicited email recievd from unknown sources

d) An internet protocol

.

85) Data mining techniques can be applied in

a) Predicting future trends based on information available

b) Credit risk analysis

c) Analysing demographic information about customers

d) All of the above

.

86) Multiplexer is used to

a) store and forward data to a large number of terminals over a single communication channel

b) send more than one signal simultaneously over a single communication channel

c) intercept and handle communication activities for the host computer

d) all of above

.

87) The universal set of standards for Electronic Dat Interchange(EDI ) is known as

a) EDI

b) BIS

c) EDIFACT

d) ISO

.

88) which of the following terms refer to the group of person(s) directly or indirectly involved in

establishing and running the computerised systems?

a) Groupware

b) Peopleware

c) HRware

d) HARD SOFTWARE

.



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89) Marketing channel refers to

a) a physical channel for movement of goods from the seller to the buyer

b) a set of firms who handle the physical movement of goods from one point to another

c) different departments of the producer firm which are associated in ensuring delivery of goods to the

buyer

d) a set of independent organisations involved in the process of distributing a product or service

.

90) Promotion is an exercise of maintaining contact with the consumer at different levels so as to

a) Enhance customer relationship

b) Lure the customer in to buying the products

c) Prevent customer from being critical of the firm

d) None of the above

.

91) In a bank branch, the "Direct Selling Agent/Direct Marketing Agent" (DS A/DMA) is

a) Branch manager, officer/managers

b) The front line people

c) Substaff

d) All staff involved in offering services

.

92) A temporary location to store or group information in hardware or software is

a) Tempory

b) Temporal memory

c) Buffer

d) All

.

93) A device that serves as a bridge between your digital computer and some form of analogue line used to

transmit data, such as a phone line.

a) RUITER

b) MODEM

c) DUPLEXER

d) ETHERNET

.

94) A loan granted for short duration crops is treated as NPA, if the instalment of principal or interest

thereon remains overdue for

a) One crop seasons

b) Two crop seasons

c) Three crop seasons

d) Four crop seasons

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95) When will a loan be NPA?

1. Interest and/or loan instalments overdue for more than 90 days

2. A/c is out of order for more than 90 days in case of overdraft/cash credit

3. Bill remains overdue for more than 90 days in Bills Discounting

a) Only 1 is correct

b) Only 2 is correct

c) Only 3 is correct

d) All are correct

.

96) The scope of activities undertaken by the business correspondents will not include

a) disbursal of small value credit

b) recovery of principal/collection of interest

c) collection of small value deposits

d) payment of money on demand drafts not exceeding Rs. 1,000

.

97) As per Section 31 of the N.I. Act, the drawee bank is under a liability to honour a cheque drawn on its

account that is having a sufficient balance.Under which of the following circumstances, a bank can

decline payment,despite customer is having sufficient balance?

1. When drawer is dead and its intimation received

2. When the funds are set off by the bank

3. When the funds are earmarked for specific purposes such as freezing amount for ASBA account

4.When drawer was penalised by bank

a) 1,2,3,4 are correct

b) 1,2,3,are correct

c) 1,2, are correct

d) 1 only correct

.

98) If a cheque contains the instructions reading 'Pay to Smt. Rameshwari Devi or order without recourse to

me.; then it is

a) Restrictive endorsement

b) Conditional endorsement

c) Facultative endorsement

d) Sans Recourse endorsement

.

99) In case of forgery of endorsement

a) Only paying banker gets the protection

b) Only Collecting banker gets the protection

c) Both gets the protection

d) Drawer gets the protection

.



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100) As per the N.I. Act, negotiable instrument means

a) cheques

b) bills of exchange

c) promissory notes

d) All the three

.

101) One of the following crossings is not provided for, in the N.I. Act

a) Account payee crossing

b) Not negotiable crossing

c) General crossing

d) Special crossing

.

102) Section 131 of N.I. Act extends protection to the

a) Collecting bank

b) Paying bank

c) Drawee bank

d) Negotiating bank

.

103) Where a customer, by a letter has advised the bank directing the banker not to honour/pay a particular

cheque such letter is called---------

a) Letter of Advise

b) Mandate

c) Stop payment letter

d) Garnishee letter

.

104) Which of the following is not true about minor Accounts?

a) Usually, the account should be operated by the guardian on behalf of the minor

b) a minor may draw, endorse, deliver and negotiate a negotiable instrument and as such, a minor can

draw a cheque provided he is an age of 13 years or more

c) The father or mother is the natural guardian and in other cases stepmother or stepfather is

natural guardian

d) No joint account can be opened by two minors

.

105) Delegation of powers under a trust is

a) Possible

b) Not possible

c) Possible with Beneficiary's permission

d) Possible with Charity commissioner's permission

.



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106) One of the directors of a Ltd. Company expired and cheques signed by him are presented for payments

should the bank pay those cheques?

a) Cannot pay

b) on other directors confirmation

c) Can pay as a routine

d) Payments be stopped by Company

.

107) A payorder is also known as

a) DEMAND DRAFTS

b) BANKERS' CHEQUE

c) PAYERS' CHEQUE

d) None

.

108) A basket of investments or securities is called as

a) Stock

b) Basket stock

c) Basket Share Holding

d) Portfolio

.

109) A customer is entitled to issuance of a duplicate DD in place of the lost one, provided

a) He gives due intimation to the issuing branch

b) Payment of DD not already made by the drawee branch

c) Execution of an indemnity signed by both the payee and the purchaser of the DD

d) Payment of a fee as applicable for issue of such duplicate DD

.

110) Is there any exposure ceiling for banks in providing advances/loans to borrowers?

a) 15 per cent of capital funds for single borrower and 40 per cent in a borrower's group.

b) 10 per cent of capital funds for single borrower and 20 per cent in a borrower's group.

c) 25 per cent of capital funds for single borrower and 50 per cent in a borrower's group for

infrastructural projects.

d) no such ceiling

.

111) Credit decisions are affected by risks like

a) Credit risk/market risk/operational risk

b) Liquidity/ interest rate/ foreign exchange rate

c) Commodity price/equity price risks

d) All

.



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112) Waht is percentage of total Agricultural Advances in Pririty sector Loans(PSL)?

a) Twenty per cent of ANBC or credit equivalent amount of off balance sheet exposure, whichever is

higher

b) Eighteen per cent of ANBC or credit equivalent amount of off balance sheet exposure, whichever

is higher

c) Nineteen per cent of ANBC or credit equivalent amount of off balance sheet exposure, whichever is

higher

d) Fifteen per cent of ANBC or credit equivalent amount of off balance sheet exposure, whichever is

higher

.

113) How much per cent of the total advances granted under Differential Rate of Interest Scheme

(DRI)scheme , should go to scheduled caste/scheduled tribes?

a) 20 per cent

b) 30 per cent

c) 40 per cent

d) 50 per cent

.

114) One of the following statements is not true with respect to credit cards

a) The card issuing banks would not be responsible for fulfillment of KYC requirements, where

agents solicit business.

b) While issuing cards, the terms and conditions for issue and usage of a credit card should be

mentioned in clear and simple language

c) Card issuers should quote annualized percentage rates (APR) on card products

d) The card issuing bank/NBFC should not unilaterally upgrade credit cards and enhance credit limits.

Prior consent of the borrower should invariably be taken whenever there are any change(s) in terms

and conditions.

.

115) As per the Stamp Duty Act, a document executed in India shall be stamped

a) Only before execution

b) At any time, but before filing suit

c) Only before execution

d) Before or at the time of execution

.

116) One of the following statements is not true in the right of set-off

a) Set-off means partial or total merging of a claim of one person against another in a counter claim of

the latter against the former

b) Both debts must be for certain sum

c) A debt accruing due cannot be set-off

d) A banker can set-off the credit balance in the guarantor's account before the liability of the

guarantor to the bank is determined.

.



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117) Examples of documents of title to goods are

a) Bill of lading

b) Dock warrant, warehouse-keepers certificate

c) Railway receipts

d) All

.

118) The nature of charge created while advancing against LIC policies is

a) Assignment

b) Lien

c) Pledge

d) Set-off

.

119) Documents of title to goods has been defined in

a) Indian Contract Act

b) Negotiable Instruments Act

c) Transfer of Property Act

d) Sale of Goods Act

.

120) Loans against the security of shares, debentures and PSU bonds to individuals should not exceed the

limit of per individual borrower, if the securities are held in the DEMAT form

a) Rs. 10 lakh

b) Rs. 15 lakh

c) Rs. 20 lakh

d) Rs. 50 lakh

.

121)

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