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Q - 1 .Sec ___ of RBI Act,1934 gives sole power to RBI to issue currency notes

10
18
22
26

Q - 2 . Coupon rate refers to

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

Q - 3 .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 - 4 .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 - 5 .John & James are friends aged 14 & 15 respectively. They want to open a joint account in your bank. You will

Allow them to open a joint account to be operated jointly
Allow them to open a joint account with operating instructions Either or Survivor
Allow them to open a joint account with operating instructions Former or Survivor
Allow them to open a joint account with operating instructions Any one or Survivor

Q - 6 .FIMMDA s general principles an

Fixed Income Markets
Money Markets
Derivatives Markets
All of the above

Q - 7 .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 - 8 .In case of a Non Resident Indian which of the following is permitted?

A SB account in joint names in Candian dollars
A Fixed deposit account in Australian dollars
A NRNR account in Indian rupees
An EEFC account in Indian rupees

Q - 9 .Long Form Audit Report (LFAR) is prepared and submitted by

RBI inspectors
Internal inspectors
Statutory auditors
Concurrent auditors

Q - 10 . 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 - 11 . Registration of a society is required

To sue in it s own name as a separate legal entity.
To open a bank account.
To facilitate receipt of donations/grants from foreign countries.
None of the above.

Q - 12 .In bank s parlance credit risk in lending is

Default of the banker to maintain CRR
Default of the banker to maintain SLR
Default of the banker to release credit to the customer
Default of the customer to repay the loan

Q - 13 .Bank s Assets are classified in to standard assets, substandard assets doubtful assets and loss assets, based on the recommendat

Rangarajan
Narasimham
Ghosh
Tandon

Q - 14 .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 - 15 . 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 - 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
You can pay to the other deposit holders, dividing the balance proportionately, after taking RO permission

Q - 17 . 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 - 18 .Bancassurance is

An insurance scheme to insure bank deposits
An insurance scheme to insure bank advances
A composite financial service offering both bank and insurance products
A bank deposit scheme exclusively for employees of insurance companies

Q - 19 .Minimum Bank Rate is:

3%
4%
5%
None

Q - 20 .A stop payment instruction of a cheque can be issued by:

The payee
The endorsee
The drawer
The drawee

Q - 21 .FIMMDA stands for:

Foreign Exchange Markets and Derivative Markets
Fixed Income Markets Money Markets and Derivatives Markets
Fixed Income Markets and Derivatives Markets
None of the above

Q - 22 .Your bank receives a cheque in inward clearing which has not been signed by the account holder. Which one of the following reasons you will select to return the cheque?

Cheque is not signed by the payee
Refer to the drawer
Cheque is not signed by the drawee
Cheque is not signed by the endorsee

Q - 23 . 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 - 24 .Which one of the following is not barred by law of limitation?

Pledge
Hypothecation
Banker s lien
Guarantee

Q - 25 .Tele banking service is based on

Virtual Banking
Online Banking
Voice processing
Core Banking

Q - 26 . 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.

Q - 27 . The minimum period for which commercial papers can be issued is

12 months
1 month
3 months
CP can be issued for maturity from 7 days to 1 year

Q - 28 .The minimum percentage of Priority Sector advances to be maintained by foreign banks in India

40%
18%
32%
60%

Q - 29 .As per FIMMDA s guidelines, the Mid-Office is responsible for

Dealing activities
Risk Management
Reconciliation
Confirmation of deals

Q - 30 .Interest is calculated on actual/365 days basis in respect of the following products, except one :

Call Money
Notice Money
Term Money
GOI dated securities

Q - 31 .The term Credit Management covers

Capital adequacy norms
Risk management including Asset/Liability management
Credit appraisal decision and review of loans & advances
All of the above

Q - 32 . IT authorities have seized a deposit receipt from a customer. The deposit has matured. Now the deposit receipt is presented by IT authorities for payment along with over due interest

Overdue interest can be paid if the deposit is renewed for a further period of 15 days.
Overdue interest can be paid because the receipt is IT authorities.
The branch can pay interest after getting permission from R.O.
None of the above.

Q - 33 .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 - 34 .The right of set-off is:

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

Q - 35 .Mergers are of 4 types. 1) Vertical mergers 2) Conglomerate mergers 3) Concentric Merger What is the 4th type.

Practical mergers
Horizondal Mergers
Typical mergers
Foreign Merger

Q - 36 .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 - 37 .State which of the following is/are incorrect: i) A Certificate of Deposit (CD) is issued by a banker ii) In a garnishee order the banker on whom the order is issued is judgement debtors debtor iii) A book debt advance is secured by a mortgage iv) CAMEL model is used by RBI inspectors

i and ii
ii
ii and iv
iii

Q - 38 .The Capital Adequacy Ratio is :

6%
8%
9%
10%

Q - 39 .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 - 40 .Match the following: i)IRDA A) Insurance ii)Garnishee Order B) Judgement debtor iii)ATMs C)

i-D,ii-C,iii-A,iv-B
i-A,ii-B,iii-D iv-C
i-B,ii-A,iii-D,iv-C
i-D,ii-C,iii-B,iv-A

Q - 41 .Securitisation is a process of acquiring the loans classified as

Bookdebts
Performing debts
Bad debts
Non performing debts

Q - 42 . 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 - 43 . Section 171 of Indian Contract 1872, gives to a Banker an absolute right of general lien on all goods and securities received by the Banker. The Bankers Lien is __________

Set off
An Implied Pledge.
Mortgage
Hypothecation

Q - 44 .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 - 45 .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 - 46 .KYC means

Know Your Customer very well
Know Your existing Customer very well
Know Your prospective Customer very well
Satisfy yourselves about the customer s identity and activities

Q - 47 .Long Form Audit Report (LFAR) is prepared and submitted by

RBI inspectors
Internal inspectors
Statutory auditors
Concurrent auditors

Q - 48 .Sec 131 of NI Act,1881 extends protection to the

Paying Banker
Collecting Banker
Advising Banker
Issuing Banker

Q - 49 .Cash Budget is a statement of

Cash-Non cash funds
Cash receipt and Cash payments
Another name for cash flow
None

Q - 50 .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

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