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Q - 1 . In 1921 three Presidency Banks in India - The Bank of Bengal, The Bank of Bombay, and Bank of Madras were amalgamated into one Bank which is now called.

Reserve Bank of India
United Bank of India
State Bank of India.
UCO bank

Q - 2 .Which one of the following is not barred by law of limitation?

Pledge
Hypothecation
Banker s lien
Guarantee

Q - 3 .Which was the first Mutual Fund started in India:

SBI Mutual Fund
Kotak Pioneer Mutual Fund
Indian Bank Mutual Fund
None of the above

Q - 4 .State which of the following statement/s is/are correct? i) KYC norms is applicable only to deposit accounts ii) Either or survivor is applicable to all joint accounts iii) A cash credit facility is a fund based limit

i and ii
ii and iii
iii and iv
iv

Q - 5 .The time taken to convert cash into raw materials, semi finished goods, finished goods and into cash , is known as

Trade cycle
Cash cycle
Operating cycle
Revolving cycle

Q - 6 .Except one of the following others are part of Public Sector Banks:

State Bank of Hyderabad
Central Bank of India
Regional Rural Bank, sponsored by a nationalized bank
HDFC Bank

Q - 7 .Your bank grants a working capital finance to ABC & Co, a partnership firm, against hypothecation of inventory. The charge is to be registered with Registrar of Companies within

30 days from the date of advance
30 days from the date of hypothecation agreement
30 days from the date of sanction of loan
all of the above

Q - 8 . Combining of two existing Companies into a new Company in which the both the existing companies extinguish and anew Company is made or created is known as

Consolidation.
Merger
Strategic Alliance
Acquisition

Q - 9 .The minimum percentage of Priority Sector advances to be maintained by foreign banks in India

40%
18%
32%
60%

Q - 10 . A bill is drawn on 16th Feb, 2001 which is payable after 30 days. It will mature on

13.3.2001
15.3.2001
20.3.2001
None of these.

Q - 11 .FIMMDA s general principles an

Fixed Income Markets
Money Markets
Derivatives Markets
All of the above

Q - 12 .Mr.Atmaram as director of a Ltd company expired. Bank received a cheque signed by Mr.Atmaram as director of the Ltd company. The bank

Can honour the cheque only after obtaining confirmation from other directors
Can honour the cheque
Cannot hounour the cheque
The company should issue a stop payment instructions to the bank

Q - 13 .Once a Bearer is always a bearer is applicable in respect of

A bill of exchange payable after 90 days
A cheque
A demand promissory note
A certificate of deposit

Q - 14 .Charge created on LIC Policy is:

Hypothecation
Pledge
Assignment
Mortgage

Q - 15 .A Co-Operative Bank operating in different States are regulated by:

State Co-Operative Societies Act
Banking Regulation Act
Multi Unit Co-Operative Societies Act
Banking Laws (applicable to Co-Operative Societies)

Q - 16 . In one of the joint Savings Bank accounts, you as a Branch Manager received information that one of the depositors had been declared as Insolvent? The depositors other than the undischarged insolvent claim the balance lying in the SB account. Can you pay?

You can pay to the other deposit holders jointly
You can pay to the other deposit holders, dividing the balance proportionately
You can pay as per instruction jointly signed by the solvent depositors and the official receiver of the undischarged insolvent
You can pay to the other deposit holders, dividing the balance proportionately, after taking RO permission

Q - 17 .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:

Debtor/Creditor
Creditor/Debtor
Bailor/Bailee
Bailee/Bailor

Q - 18 . Coupon rate refers to

Bank rate
PLR
The annual interest rate specified on bonds
All the above.

Q - 19 .Obligation of a Banker to maintain secrecy is applicable to

Existing deposit accounts
Existing safe deposit accounts
Closed deposit accounts
a,b and c (existing/closed)

Q - 20 .RTGS stands for :

Real Time Settlement System
Real Time Gross Settlement System
Real Gross Settlement System
Real Gross Time Settlement System

Q - 21 .A bank in India, wants to undertake capital market activities, it should:

Obtain special license from AMFI
Obtain special license from FIMMDA
Both a and b
Register with SEBI

Q - 22 .Which one of the following is secured by a mortgage?

A cash credit against inventory
An overdraft against book debts
A term loan against land and building
An educational loan

Q - 23 .Sec 131 of NI Act,1881 extends protection to the

Paying Banker
Collecting Banker
Advising Banker
Issuing Banker

Q - 24 .Hypothecation is applicable in the case of

Movable goods
Immovable property
Book debts
Corporate guarantee

Q - 25 .In a securitisation deal, the role of a Special Purpose Vehicle (SPV) is

To acquire large Non Performing Loans (NPA)
To acquire such loans from a bank or financial institution
To acquire such loans for a transfer price, with or without recourse
To manage the acquired loans for the purpose of realization or holds them as investment till maturity

Q - 26 .A banker is expected to honour the cheques within the specified banking hours as per Section of NI Act,1881

22
25
31
65

Q - 27 .A customer has the flexibility to select the number of instalments and also vary his monthly instalment amounts subject to certain conditions. Identify the account

An EEFC account
A variable recurring deposit account
A flexi deposit account
A roaming current account

Q - 28 .At a Big shopping mall,Hari withdraws cash from ATM of Central Bank of India. Central Bank of India is a:

Paying Banker
Collecting Banker
Advising Banker
Correspondent Banker

Q - 29 .Which of the following forms of business are permissible under BR Act:

Borrowing
Issuance of Letters of Credit
Buying and selling of bullion
All of the above

Q - 30 .Sec ___ of RBI Act,1934 gives sole power to RBI to issue currency notes

10
18
22
26

Q - 31 . Mr.Rao wants to give mandate to his minor son

It cannot be accepted since the mandate is to be given in favour of a minor
It can be accepted as the minor can act as an agent
Mandate can be accepted to operate only credit transactions and no debit should be allowed
None of the above.

Q - 32 .An order cheque is endorsed as without recourse to me by the endorser. This endorsement is known as

Blank endorsement
Restrictive endorsement
Endorsement in full
Sans recourse endorsement

Q - 33 . Executors and administrators can delegate their powers to a third party to operate the account

By mandate
By power of attorney
By obtaining permission from RO.
None of the above

Q - 34 .In a Garnishee Order, the banker on whom garnishee order served is:

Judgement Debtor s Creditor
Judgement Creditor s Creditor
Judgement Creditor s Debtor
Judgement Debtor s Debtor

Q - 35 .An account holder draws a cheque on a :

Banker of the Payee
Banker of the Drawee
Banker of the Drawer
Banker of the Endorsee

Q - 36 .In respect of Regional Rural Banks, the share holding pattern is:

Central Government 50%,State Government 35%,Sponsoring Bank 15%
Central Government 50%,State Government 15%,Sponsoring Bank 35%
Central Government 15%,State Government 35%,Sponsoring Bank 50%
Central Government 35%,State Government 50%,Sponsoring Bank 15%

Q - 37 .FIMMDA s guidelines cover the following products, except one:

Call Money
Cross Currency Interest Rate swaps
Commercial Paper
Certificate of Deposit

Q - 38 . According to Section 130 of Transfer of Property Act the transfer of an actionable claim can be effected only by the execution of an instrument in writing signed by transferor or by his duly authorized agent This mode of transfer of an actionable claim is known as ________

Assignment
Lien
Mortgage
Hypothecation

Q - 39 .Mandate given by the illiterate account holder should be

Attested by manager who confirms and certifies thee same.
Attested by Notary public or Magistrate.
It is enough if we ask for a Mandate letter with LTI which has to be attested an authorised official.
We cannot accept a mandate from an illiterate customer at all.

Q - 40 . In one of the joint Savings Bank accounts, you as a Branch Manager received information that one of the depositors had been declared as Insolvent? The depositors other than the undischarged insolvent claim the balance lying in the SB account. Can you pay?

You can pay to the other deposit holders jointly
You can pay to the other deposit holders, dividing the balance proportionately
You can pay as per instruction jointly signed by the solvent depositors and the official receiver of the undischarged
You can pay to the other deposit holders, dividing the balance proportionately, after taking RO permission

Q - 41 . Mr. Subramanian who is an Ordinary SB account holder of your branch wants to nominate Mr. Alfred Clinton, an U.S. national, who is his friend. Is that allowed?

Yes it is freely permitted
Yes it is freely permitted, but at the time of settlement of claim and repatriation to the nominee, branch has to take RBI permission
Yes it is freely permitted, subject to Regional office approval
Yes it is freely permitted, subject to CO approval

Q - 42 .Law of limitation is not applicable in respect of :

Advance against pledge of shares
CC granted against hypothecation of inventory
Term loan secured by mortgage of Plant & Machinery
Bank Term Deposit

Q - 43 .The Capital Adequacy Ratio is :

6%
8%
9%
10%

Q - 44 . Nomination rules for deposit accounts have been introduced under the following rules of Banking Regulation Act,21-03-1900 05:00:00 AM

Sec. 45
Sec. 45ZA F
Sec. 45ZA B
None of the above

Q - 45 .A purchaser of a demand draft for Rs.500,000.00, lost the DD To obtain a duplicate draft he needs to furnish

A Power of Attorney
A letter
An Indemnity
Amandate

Q - 46 . A formal and mutually agreed commercial collaboration between Companies is known as

Merger
Amalgamation
Strategic Alliance
Subsidiary

Q - 47 . The combination of two or Companies into a single Company where one survives with it s name (or a combined new name )

Merger or Amalgamation
Diversification.
Combination.
All the above

Q - 48 .The right of set-off is:

Customer s Right
Customer s Obligation
Banker s Right
Banker s Discretion

Q - 49 .Securitisation is a process of acquiring the loans classified as

Bookdebts
Performing debts
Bad debts
Non performing debts

Q - 50 . A joint account is operated by A and B as both or survivor. A dies and a cheque signed by A and B are presented forpayment. The cheque

Can be paid.
Can be paid after getting confirmation from B.
Can be paid after getting the consent of the legal heirs of A.
None of the above.

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