Showing posts with label BANKING RELATED QUESTIONS. Show all posts
Showing posts with label BANKING RELATED QUESTIONS. Show all posts

Tuesday, January 10, 2017

IBPS PO Exam Syllabus

IBPS PO – SYLLABUS

1.       IBPS PO – ENGLISH LANGUAGE (40 marks, 40 questions)

Vocabulary:
Synonyms, Antonyms, Homonyms, Word Formation, Sentence CompletionComprehension:
Theme detection, Deriving Conclusion, Passage Completion Error Detection and Rearrangement: Passage Correction, Sentence Correction, SpellingGrammar:
 Active Passive Voice, Direct Indirect SpeechGeneral Usage:
 Idioms and Phrases


2.       IBPS PO – LOGICAL REASONING (50 marks, 50 questions) 
Verbal Reasoning: Analogy, Coding Decoding, Blood Relation, Sitting Arrangement, Series Completion, Syllogism, Decision Making, Statement ReasoningNon-verbal Reasoning: Series Completion, Analogy, and Classification


3.       IBPS PO – QUANTITATIVE APTITUDE (50 marks, 50 questions) 
Arithmetic:
Numbers, Simplification, Roots, Average, Surds & Indices, Percentage, Profit & Loss, Ratio & Proportion, Partnership, Chain Rule, Time & Work, Pipes & Cisterns, Time & Distance, Problems on Trains, Boats & Streams, Allegation, Simple Interest, Compound Interest, Stocks & Shares, Clocks, Logarithms, Mensuration, Volume & Surface Area, Permutation & combination, Probability, Heights & DistancesData Interpretation:
Tabulation, Bar Graphs, Line Graphs, Pie Charts


4.       IBPS PO – GENERAL/MARKETING/BANKING AWARENESS (40 marks, 40 questions) 
Questions in this component will be aimed at testing the candidate’s general awareness of the environments around him and its application to society. These questions will be such that they do not require a specific study of any discipline.
– Knowledge of current events
– Everyday observations and experience in the scientific aspect as may be expected of any educated person
– India and its neighbouring countries
– Sports, History, Culture, Geography, Economy, General Polity, Indian Constitution, Scientific Research Over 70% of the questions will be related to Economy, Banking and Finance.


5.       IBPS PO – COMPUTER AWARENESS (20 marks, 20 questions)
General Knowledge on Computer usage and application (basic hardware and software)
 



Wednesday, December 21, 2016

Government Exam Coaching Centre in Coimbatore



Shanmugam IAS Study circle is an independent private educational institution. It was established in the Year of 2006 with the noble cause of  training the civil service aspirants in a focus manner and preparing them for facing the lands highest examination.
we are steadfastly committed to quality guidance and holistic training to the IAS IPS IRS TNPSC GROUP I II& IV, VAO, BANKING, SI, POLICE, TET, TRB Railway and all competitive aspirants. view more..




Bank Exam Coaching Centre In Coimbatore

Shanmugam IAS Study circle is an independent private educational institution. It was established in the Year of 2006 with the noble cause of  training the civil service aspirants in a focus manner and preparing them for facing the lands highest examination.
we are steadfastly committed to quality guidance and holistic training to the IAS IPS IRS TNPSC GROUP I II& IV, VAO, BANKING, SI, POLICE, TET, TRB Railway and all competitive aspirants.

TNPSC Coaching Centre In Coimbatore


Shanmugam IAS Study circle is an independent private educational institution. It was established in the Year of 2006 with the noble cause of  training the civil service aspirants in a focus manner and preparing them for facing the lands highest examination.
we are steadfastly committed to quality guidance and holistic training to the IAS IPS IRS TNPSC GROUP I II& IV, VAO, BANKING, SI, POLICE, TET, TRB Railway and all competitive aspirants. View More....


Tuesday, January 29, 2013

FINANCIAL & BANKING AWARENESS QUESTIONS SET 7


1) At present number of public sector banks inIndia:
a) 26
b) 27
c) 28
d) 29
e) None of these

2) At present number of private sector banks inIndia:
a) 21
b) 22
c) 23
d) 24
e) None of these

3) Nationalisation of 14 major banks in…………………..
a) 1949
b) 1955
c) 1959
d) 1969
e) None of these

4) Nationalisation of six banks in…………………………..
a) ) 1949
b) 1955
c) 1959
d) 1969
e) 1980

5)The largest commercial bank in India:
a) SBI
b) ICICI Bank
c) PNB
d) HDFC Bank
e) None of these

6) The Second largest public sector commercial bank in India:
a) Punjab National Bank
b) Bank of Baroda
c) Bank of India
d) IDBI Bank
e) Corporation Bank

7) The Largest private sector commercial bank in India:
a) AXIS Bank
b) HDFC Bank
c) ICICI Bank
d) Federal Bank
e) None of these

8) The second largest private sector commercial bank in India:
a) IDBI Bank
b) AXIS Bank
c) HDFC Bank
d) ICICI Bank
e) None of these

9) The first Indian bank to open a branch outside India in London in 1946:
a) State Bank of India
b) Punjab National Bank
c) Bank of Baroda
d) Canara Bank
e) Bank of India

10) Latest Public Sector Bank inIndia:
a) SBI
b) ICICI Bank
c) HDFC Bank
d) IDBI Bank
e) None of these

11) Latest Private Sector Bank inIndia:
a) Federal Bank
b) South Indian Bank
c) YES Bank
d) Kotak Mahindra Bank
e) None of these

12) The Largest foreign bank operating inIndia:
a) Citi Bank
b) HSBC
c) Barclays Bank
d) ABN Amro Bank
e) Standard Chartered Bank

13) Which bank is the largest issuer of credit cards inIndia?
a) SBI
b) ICICI Bank
c) HDFC Bank
d) IDBI Bank
e) None of these

14) Who is the current MD & CEO of ICICI Bank?
a) Shyamala Gopinath
b) Shikha Sharma
c) Chanda Kochhar
d) Renu Challu
e) Sushma Nath

15) The Chairman of Indian Banks Association (IBA) (For 2011-12):
a) M.D.Mallya
b) Pratip Chaudhuri
c) D.Subbarao
d) Subir Gokarn
e) U.K.Sinha

16) The largest bank inChina:
a) Industrial and Commercial Bank of China Ltd. (ICBC)
b) Hongkong and Shanghai Banking Corporation(HSBC)
c) Deutsche Bank AG
d) BNP Paribas
e) DBS Bank

17) Bad loans in banking terminology are generally known as…………………
a) CBS
b) PLR
c) NPAs
d) CRR
e) None of these

18) In Financial Term NPA, P stands for………..
a) Potential
b) Peforming
c) Prodiction
d) Professional
e) None of these

19) Which of the following pairings is wrong?
 (Bank & Country)
a) Citi Bank : USA
b) ABN AMRO Bank : TheNetherlands
c) BNP Paribas :Russia
d) Hongkong and Shanghai Banking Corporation(HSBC) :United Kingdom
e) Deutsche Bank AG :Germany

20) Which of the following pairings is wrong?
(Bank & Country)
a) Barclays Bank : United Kingdom
b) J P Morgan Chase Bank :USA
c) Societe Generale :France
d) Standard Chartered Bank :South Africa
e) Sonali Bank :Bangladesh

21) The New Capital Adequacy Framework prescribed for the banks is commonly known as ………….
a)KYC norms
b)Credit Policy
c)Basel Accord
d)Fiscal Policy
e) None of these

22) The central bank of theUnited States:
a) Citi Group
b) Bank ofAmerica
c) JP Morgan Chase
d) Federal Reserve
e) Bank for International Settlements

23) Which of the following pairings is wrong? (Bank & Tagline)
a) State Bank ofIndia: With you all the way
b) Punjab National Bank : The name you can BANK upon!
c) Bank ofBaroda:India’s International Bank
d) Oriental Bank of Commerce : Where every individual committed
e) Bank of India : The World’s local bank

24) Axis Bank previously called as……….
a) IDBI Bank
b) HDFC Bank
c) YES Bank
d) ICICI Bank
e) UTI Bank

25) Which of the following is not a commercial bank?
a) IDBI Bank
b) HDFC Bank
c) ICICI Bank
d) EXIM Bank
e) AXIS Bank

26) Which of the following pairings is wrong?(Bank/Financial Institution & Establishment Year)
a) RBI : April 1, 1935
b) SBI : July 1, 1955
c) NABARD : July 12, 1982
d) NHB : July 9, 1988
e) SIDBI : April 1, 1990

27) The largest bank inPakistan:
a) State Bank of Pakistan
b) Habib Bank Limited
c) Sonali Bank
d) DBS Bank
e) None of these

28) Consider the following sentences:
A. Non Performing Asset (NPA) is an asset, including a leased asset, becomes non performing when it ceases to generate income for the bank.
B. Core banking is a general term used to describe the services provided by a group of networked bank
branches. The platform where communication technology and information technology are merged to suit core needs of banking is known as Core Banking Solutions.
C. Banking Ombudsman is an independent dispute resolution authority provided by RBI to deal with disputes that bank customers have with their respective banks.
D. Base Rate is the minimum rate of interest that a bank is allowed to charge from its customers. Unless mandated by the government, RBI rule stipulates that no bank can offer loans at a rate lower than base Rate to any of its customers.
E. NBFC or Non Banking Financial Companies is a company in India, which is registered under the Companies Act, 1956, and which provides banking services without meeting the legal definition of a bank.
Which of the statements given above is/are correct?
a) Only A & B
b) Only B & C
c) Only C & D
d) Only D & E
e) All are correct

29) Which of the following is the Apex level institution for housing?
a) EXIM Bank
b) NABARD
c) NHB
d) SIDBI
e) None of these

30) Which of the following is not a nationalized bank?
a) PNB
b) Indian Bank
c) Bank of India
d) Karnataka Bank
e) Canara Bank

31) Which of the following banks was merged with ICICI Bank in 2010?
a) Bank of Rajasthan
b) Bank of Maharashtra
c) Karnataka Bank
d) State Bank ofIndore
e) Global Trust Bank

32) Which of the following banks was merged with SBI in 2010?
a) State Bank of Travancore
b) State Bank of Mysore
c) State Bank of Indore
d) State Bank of Saurashtra
e) State Bank of Hyderabad

ANSWERS

1) a 2) b 3) d 4) e 5)a 6)a 7) c 8) c 9) e 10) d
11) c 12) e 13) b 14) c 15) a 16) a 17) c 18) b 19) c 20) d
21) c 22) d 23) e 24) e 25) d 26) e 27) b 28) e 29) c 30) d 31) a 32)c

Monday, January 28, 2013

BANK EXAM QUESTIONS


Fill up the blanks with suitable word/words

1. Banking Regulation Act was passed in .......... (1949)

2. Reserve Bank of India Act was passed in .......... (1934)

3. Reserve Bank of India was nationalised in .......... (1st January, 1949)

4. Industrial Finance Corporation of India was established in .......... (1948)

5. Industrial Development Bank of India was setup in .......... (July, 1964)

6. Industrial Credit and Investment Corporation of India was established in ..........(1955)

7. Export and Import Bank of India was set up in .......... (1982)

8. Exchange banks specialise in financing .......... (Foreign trade)

9. Current deposits are also called .......... (Demand deposits)

10. Loans which can be called back by the bank at a very short notice of one day to fourteen days are called .......... (Money at call)

11. The maturity period of term loans is more than .......... (One year)

12. Banks are called public conservators of .......... (Commercial virtues)

13. Unit banking system originated and grew in .......... (U.S.A.)

14. Banking system which is very popular and successful in India is .......... (Branch banking system)

15. 14 major commercial banks were nationalised in .......... (July, 1969)

16. A nine member committee on the financial reforms under the Chairmanship of Narasimham submitted its report on .......... (December 1991)

17. Lead Bank Scheme was introduced by the Reserve Bank towards the end of .......... (1969)

18. NABARD was set up on .......... (12th July, 1982)

19. Regional Rural Bank Act was passed in .......... (1976)

20. At present there are .......... regional rural banks in India. (196)

21. The Small Industries Development Bank of India was set up by the Government of India in .......... (April, 1990)

22. The market which deals in trade bills, promissory notes and government papers or bills, which are drawn for short-periods is called .......... (Money market)

23. A financial market in which short-term papers or bills are brought and sold is known as .......... (Bill market)

24. In order to protect the interests of investors and regulate the working of stock exchanges, the Government in 1988 set up the .......... (Stock Exchange Board of India)

25. The financial market for long-term funds is known as .......... (Capital market)

26. A banker is a .......... debtor. (Privileged)

27. A banker’s lien is always .......... lien. (General)

28. To claim a banking debt ..........in writing is necessary. (An express demand)

29. .......... is necessary to exercise a lien (No agreement)

30. The word customer signifies a relationship in which .......... is of no essence. (Duration)

31. For wilful dishonour of a cheque .......... damage is payable by the banker. (Vindictive)

32. Accepting a bill and making it payable at the bank is called .......... (Domiciliation of a B/E)

33. Honouring of a cheque is a .......... obligation. (Statutory)

34. The relationship between the banker and customer is primarily that of a .......... (Debtor and creditor)

35. The minimum period for which a fixed deposit can be accepted is .......... (45 days)

36. Money can be withdrawn any number of times in .......... (Current A/C)

37. ..........must be obtained from a responsible person before opening an account. (A letter of introduction)

38. If there are no withdrawals for a period of 12 months in a savings bank account, the account is said to be .......... (Dormant)

BANKING AWARENESS SET 6


1.Which of the following bodies tightened the norms for foreign exchange risk cover in India mentioning that only companies with a networth of Rs 200 crore can use derivatives to hedge against risk of volatility in currency rates?
a. IMF
b.Reserve Bank of India
c. SEBI
d.Union Ministry of Finance
Ans: b

2. Which body in India finally provided tax exemption on the 9.5 per cent interest income on PF deposits for 2010-11?
a.Reserve Bank of India
b. Income Tax Department
c.Employees’ Provident Fund Organisation
d.Corporate Affairs Ministry
Ans: b

3.(1) The report on Customer Service in Banks by a committee chaired by M. Damodaran, former Chairman of the Securities and Exchange Board of India (SEBI) that was released on 3 July 2011 recommended an increased deposit insurance cover of Rs.5 lakh so as to encourage individuals to keep all their deposits in banks.
(2) The panel also suggested blocking of lost ATM cards through SMS and immediate restoration of funds in case of non-dispensation of cash at an ATM within 5 working days.
Which of the above is not true?
a. Only 1
b. Only 2
c. Both 1 & 2
d. None of the above
Ans: b

4. The Reserve Bank of India (RBI) in a bid to tame inflationary pressure hiked the short-term indicative policy rate (repo rate) by 50 basis points on 26 July 2011. The repo rate currently stands at what percentage?
a. 7%
b. 7.5%
c. 8%
d. 8.5%
Ans: c

5. Which bank posted a 99 per cent drop in net profit at Rs 21 crore for the fourth quarter ended 31 March 2011 against Rs 1867 crore during the corresponding period in 2010?
a. Indian Overseas Bank
b. State Bank of India
c. Bank of India
d. United Bank of India
Ans: b

6. Who did global payments processing company MasterCard appoint as the General Manager, South Asia and Country President, India?
a. T. V. Seshadri
b. Vicky Bindra
c. Tunde Lemo
d. Ajay Banga
Ans: a

7. Government of India on 19 July 2011 appointed Usha Ananthasubramanian, former general manager of Bank of Baroda (BoB) as executive director of which public sector lender?
a. Central Bank of India
b. Punjab National Bank
c. United Bank of India
d. Gramin Bank
Ans: b

8. Name the public sector lender that selected Metlife as its partner for a proposed foray into the life insurance segment.
a. Syndicate Bank
b. Punjab National Bank
c. Corporation Bank
d. United Bank of India
Ans: b

9. Which bank signed a memorandum of understanding with Dewan Housing Finance Corporation (DHFL) under which DHFL will distribute home loans to Yes Bank's customers?
a. Canara Bank
b. ABN Amro bank
c. Yes Bank
d. HSBC
Ans: c

10. Which life insurance company in India launched a new non-linked health insurance plan, Jeevan Arogya?
a. HDFC Standard Life Insurance Co. Ltd
b. Life Insurance Corporation of India
c. IDBI Fortis Life Insurance Company Ltd.
d. SBI Life Insurance Co. Ltd
Ans: b

11. Which of the following public sector banks in November 2011 froze its lending to the power sector?
a. State Bank of India
b. Allahabad Bank
c. Punjab National Bank
d. United Bank of India
Ans: b

12. Which Indian bank on 10 May 2011 raised benchmark prime lending rate 75 basis points to 14% following raising of interest rates by RBI by basis points on 3 May 2011?
a. State Bank of India
b. Union Bank
c. Punjab National Bank
d. Bank of Baroda
Ans: a

13. The Reserve Bank of India on 26 April 2011 fined 19 banks, including the country's top private and foreign banks for violating its guidelines on derivatives. Which is the only public sector bank on the list of banks to be fined?
a. State bank of India
b. Punjab National Bank
c. Bank of India
d. Indian Bank
Ans: a

14. The Reserve Bank of India on 25 August 2011 released its Annual Report for 2010-11. Which of the following was not discussed in the Annual Report the Central Board of the RBI?
a. assessment of the macroeconomic performance during 2010-11
b. prospects for 2011-12
c. working and operations of the Reserve Bank and its financial accounts
d. role of regulatory bodies in controlling the financial markets
Ans: d

15. Reserve Bank of India (RBI) panel headed by headed by Usha Thorat, Director, Centre for Advanced Financial Research and Learning (CAFRAL) on 29 August 2011 came up with suggestion on non-banking finance company (NBFC). Which of the following related to this statement is not true?
1. The panel suggested the central bank to insist on a minimum asset size of more than Rs.25 crore for registering any new non-banking finance company (NBFC)
2. Transfer of shareholding, direct or indirect, of 25 per cent and above, change in control, merger or acquisition of any registered NBFC will require prior approval of the Reserve Bank.
3. Tier-I capital for capital to risk weighted assets ratio (CRAR) purposes would be specified at 12 per cent to be achieved in three years for all registered deposit-taking and non-deposit-taking NBFCs.
4. NBFCs would be subject to regulations similar to banks while lending to stock brokers and merchant banks and similar to stock brokers, as specified by the Securities and Exchange Board of India (SEBI)
a. 1 & 4
b. 2 & 4
c. Only 4
d. Only 1
Ans: d

16. Which Indian PSU bank in tune with its plans to expand its retail division in the UK entered the mortgage market in the country for the first time?
a. Punjab National Bank
b. Oriental Bank of Commerce
c. State bank of India
d. Indian Overseas Bank
Ans: c

17. Which of the following banks set up two loan processing centres for the small and medium enterprise (SME) segment on a pilot basis in Bangalore & in New Delhi in September 2011?
a. Corp Bank
b. United Bank of India
c. Syndicate Bank
d. Bank of Baroda
Ans: c

18. The government suspended M Ramadoss for alleged violations in issuing insurance cover to an airline during his stint as head of another state-run insurer. To which insurance group did he belong to?
a. New India Assurance
b. LIC
c. GIC
d. ICICI Insurance
Ans: a

19. Which of the following banks in early May 2011 entered into a tie-up with non-banking finance companies such as Future Capital, Bajaj Finance, and Reliance Capital to grow its retail portfolio?
a. Central Bank of India
b. State Bank of India
c. Bank of India
d. HDFC Bank
Ans: a

20. Which are the two Gujarat-based cooperative sector lenders on which Reserve bank of India imposed a financial penalty of Rs 1 lakh each for violation of various rules, including anti-money laundering guidelines?
1. Shree MahalaxmiMercantile Co-operative Bank
2. Rander People's Co-operative Bank
3. Abad District Co Op Bank
4. Ahd Mercantile Co-Op Bank Ltd
a. 1 & 2
b. 2 & 3
c. 1 & 4
d. 3 & 4
Ans: (a)

Sunday, January 27, 2013

BANK EXAM QUESTIONS SET 5


201. The six more banks which were nationalised had demand deposits and liabilities of
(a) Rs. 50 crores or above (b) Rs. 100 crores or above
(c) Rs. 150 crores or above (d) Rs. 200 crores or above
D

202. The Lead Bank Scheme was introduced in
(a) 1968 (b) 1969
(c) 1974 (d) 1976
B

203. The Lead Bank Scheme was introduced on the basis of recommendations of
(a) Reserve Bank
(b) NABARD
(c) Study group appointed by National Credit Council under the chairmanship of Prof. D.R. Gadgil
(d) None of the above
C

204. Under the Lead Bank Scheme all the districts in the country have been allocated amongst
(a) Land development banks
(b) District co-operative banks
(c) 22 public sector banks and three private sector banks
(d) None of the above
C

205. The main functions of Lead Banks are
(a) Surveying the resources and potential for banking development in its district
(b) Assisting the small units and small borrowers and other primary lending agencies
(c) Maintaining contacts and liasion with government and semigovernment agencies
(d) All the above
D

206. The Lead Bank in the district
(a) Does not have monopoly in the district
(b) Identifies the underbanked areas for opening its branches in the district
(c) Formulates the credit plans for all the banks in the district
(d) All the above
D

207. The Lead Bank Scheme was launched towards the end of 1969 for the following objectives
(a) Extension of institutional finance facilities to neglected areas
(b) Extension of credit to priority sector
(c) Integration of various elements of development, namely, infrastructure extension and credit
(d) All the above
D

208. The Service Area Approach is in force since
(a) 1975 (b) 1978
(c) 1985 (d) 1988
D

209. The Industrial Development Bank of India was set up in
(a) 1964 (b) 1969
(c) 1976 (d) 1981
A

210. Industrial Development Bank extends refinance for
(a) Small scale industrial units (b) Medium industrial units
(c) Both the above (d) None of the above
B

211. Small Industries Development Bank, set up by an Act of parliament commenced operating on
(a) January 1, 1990 (b) March 1, 1990
(c) April 1, 1990 (d) April 2, 1990
A

212. Small Industries Development Bank of India is wholly subsidiary of
(a) RBI (b) Exim Bank
(c) NABARD (d) IDBI
D

213. Small Industries Development Bank of India’s Single Window scheme means that a borrower is granted
(a) Both term loan for fixed assets and loan for working capital through the same agency, namely, SFCs or Commercial Banks
(b) Both term and working capital through SIDBI itself
(c) Both term loan and working capital through IDBI
(d) None of the above
A

214. National Equity Fund Scheme of SIDBI provides
(a) Equity type of support to small sector
(b) Rehabilitation of viable sick units in the SSI sector
(c) Both of the above
(d) None of the above
C

215. The Industrial Finance Corporation of India was set up in
(a) March 1948 (b) April 1948
(c) July 1948 (d) October 1948
C

216. IFCI extends financial assistance for
(a) Setting new projects
(b) Expansion of existing units
(c) Diversification, renovation and modernisation of existing unit
(d) All the above
D

217. The Industrial Finance Corporation of India provides loans to
(a) Industries in public sector only
(b) Industries set up for export promotion
(c) Joint-stock companies in the public or private or joint sector or co-operative sector
(d) None of the above
C

218. Industrial Credit and Investment Corporation of India was set up in
(a) 1948 (b) 1950
(c) 1951 (d) 1955
D

219. The large part of the equity capital is held by
(a) Public sector institutions such as banks, LIC
(b) World Bank
(c) Reserve Bank
(d) None of the above
A

220. ICICI provides financial assistance to
(a) Small-scale industries (b) Medium-scale industries
(c) Large-scale industries (d) All the above
D

221. ICICI provides assistance by way of
(a) Long and medium-term loans and equity participation
(b) Guaranteeing rupee and foreign currency loans raised from other sources
(c) Underwriting issues of shares and debentures
(d) All the above
D

222. The most significant feature of ICICI’s operations is
(a) The foreign currency loans sanctioned by it
(b) To channelise World Bank funds to industry in India and to build capital market in India
(c) The refinance facilities extended by it
(d) Both (a) and (b)
D

223. The State Financial Corporations have been set up under
(a) State Financial Corporation Act, 1951
(b) Reserve Bank of India Act
(c) Banking Regulation Act
(d) Companies Act, 1956
A

224. State Financial Corporation extend financial assistance to
(a) Proprietory and partnership firms
(b) Public and private limited companies and co-operative societies
(c) Hindu undivided family concerns
(d) All the above
D

225. The loans granted by SFC’s are refinanced by
(a) IDBI (b) SIDBI
(c) RBI (d) both (a) and (b)
D

226. NABARD provides refinance to
(a) Scheduled commercial banks (b) Co-operative banks
(c) Regional rural banks (d) All the above
D

227. NABARD provides refinance assistance for
(a) Promotion of agriculture
(b) Promotion of small scale industries
(c) Cottage and village industries
(d) All the above
D

228. The Export-Import Bank of India was set up in
(a) July 1969 (b) April 1970
(c) January 1982 (d) April 1982
C

229. Exim Bank also provides
(a) Refinance facilities
(b) Consultancy and technology services
(c) Services of finding foreign markets for exporters
(d) All the above
D

230. Exim Bank concentrates on
(a) Medium-term financing
(b) Short-term financing
(c) Short and medium-term financing
(d) Short and long-term financing
A

231. Exim Bank extends facility of
(a) Rediscounting of foreign bills of commercial banks
(b) Advisory services to the exporters
(c) Research and market surveys
(d) All the above
D

232. The Regional Rural Banks were set up in
(a) January 1, 1975 (b) March 11, 1975
(c) April 1, 1975 (d) October 2, 1975
D

233. Regional Rural Banks were set up vide
(a) Reserve Bank of India Act
(b) Regional Rural Banks Act, 1976
(c) NABARD Act
(d) None of the above
D

234. Regional Rural Banks carry on normal banking business as defined in
(a) Reserve Bank of India Act
(b) Banking Regulation Act, 1949
(c) Regional Rural Bank Act, 1976
(d) Companies Act, 1956
B

235. Regional Rural Banks are classified under
(a) Land Developments Banks (b) Co-operative Banks
(c) Commercial Banks (d) Public Sector Banks
D

236. The chairman of Regional Rural Bank is appointed by
(a) State Government
(b) Reserve Bank of India
(c) Central Government
(d) Sponsoring bank in consultation with NABARD
D

237. The issued capital of the Regional Rural Banks was to be subscribed as under
(a) Fifty per cent by Central Government
(b) Fifty per cent by State Government
(c) Thirty per cent by sponsoring bank
(d) All the above
D

238. Each Regional Rural Bank is managed by
(a) Board of Directors (b) Reserve Bank
(c) Sponsoring commercial bank (d) None of the above
A

239. Regional Rural Banks have been permitted to pay ½% additional interest on
(a) All deposits accounts except current deposits
(b) All deposits accounts including current deposits
(c) Savings accounts and time deposits of less than three years
(d) None of the above
C

240. Land mortgage banks are renamed since 1996-97 as
(a) Land Development Banks (b) Co-operative Central Banks
(c) NABARD (d) Lead Bank
A

241. Co-operative banks are
(a) Private sector banks (b) Public sector banks
(c) Joint-sector banks (d) None of the above
A

242. Certificate of Deposit can be issued by
(a) Reserve Bank, NABARD and Exim Bank only
(b) Commercial banks and term lending institutions
(c) Scheduled commercial banks excluding regional rural banks
(d) All the above
D

243. The minimum acceptable amount under the Scheme of Certificate of Deposit is
(a) Rs. 5 lakhs (b) Rs. 10 lakhs
(c) Rs. 20 lakhs (d) Rs. 25 lakhs
D

244. Banks are promised to grant loans against certificates of deposits
(a) Yes
(b) No
(c) Yes, only to NRI
(d) Yes, only up to 50% of the face value
B

245. Commercial paper may be issued for a period of
(a) 90 days (b) 91 to 180 days
(c) 181 days to one year (d) One year or two years
B

246. The commercial paper can be issued to raise deposits by
(a) Commercial banks (b) Reserve Bank of India
(c) IDBI (d) Every non-banking company
A

247. The aggregate amount of commercial paper issued by a bank should not exceed
(a) Rs. 25 crores
(b) 5% of its demand and the liabilities
(c) 75% of its fund based working capital limits
(d) 1% of its net worth
C

248. The Stock Exchange Board of India was set up by a Special Act in
(a) 1988 (b) 1989
(c) 1987 (d) 1990
A

249. Discount and Finance House of India Limited was set up by RBI in
(a) 1988 (b) 1989
(c) 1987 (d) 1990
A

250. Demand deposits mean
(a) Deposits withdrawable on demand by the depositor
(b) Current deposits
(c) Fixed deposits
(d) Short deposits
A

251. Time deposits means
(a) The deposits which are lent to bank for a fixed period
(b) Time deposits include over due fixed deposits
(c) Time deposits do not include recurring deposits as well
(d) Time deposits do not include deposits under Home Loan Account Scheme
A

252. Fixed deposits are for the bank
(a) Demand liability (b) Fixed asset
(c) Time liability (d) None of the above
C

253. Home Loan Account can be opened by any one in
(a) His own name (b) The name of the spouse
(c) The name of the minor (d) All the above
D

254. The minimum amount of contribution to open a Home Loan Account
(a) Rs. 5 (b) Rs. 10
(c) Rs. 20 (d) Rs. 30
D

255. The Negotiable Instruments Act deals with
(a) Cheques, demand drafts, banker’s cheques
(b) Promissory notes, bills of exchange and cheques
(c) Bills of exchange, cheques and demand drafts
(d) Cheques, demand drafts and saving bank withdrawal forms
B

256. Which of the following are considered negotiable instruments per custom?
(a) Railway receipts (b) Demand drafts
(c) None of the above (d) Both the above
D

257. The term “escrow” means
(a) Conditional delivery of an instrument
(b) An inchoate instrument
(c) Kite flying
(d) Window dressing
A

258. Hundies are
(a) Negotiable instruments by customs and usages
(b) Negotiable instruments by definition
(c) None of the above
(d) Both the above
A

259. A person can not be called a holder of an instrument if he has obtained the instrument
(a) By unlawful means
(b) For an illegal consideration
(c) By fraud, coercion, duress or fear
(d) All of these
D

260. The relationship between a banker and a customer is
(a) That of a debtor and a creditor
(b) That of a creditor and a debtor
(c) Primarily that of a debtor and a creditor
(d) (a) and (b) together
C

261. To constitute a person as a customer
(a) There must be a single transaction of any nature
(b) There must be some sort of an account
(c) There must be frequency of transactions
(d) There must be dealing of a banking nature
B

262. The banker has a lien on
(a) Bonds given for collection (b) Bonds given for safe custody
(c) Bonds left by mistake (d) (a) and (b) together
A

263. The banker has a statutory obligation to
(a) Honour customers cheques
(b) Exercise lien
(c) Maintain secrecy of his customer’s accounts
(d) Honour customer’s bills
A

264. In executing the standing instructions, there exists a relationship of
(a) Trustee and beneficiary (b) Debtor and creditor
(c) Bailee and bailor (d) Agent and principal
D

265. The most undesirable customer is
(a) A minor (b) A married woman
(c) An unregistered firm (d) An undischarged bankrupt
D

266. Contracts by lunatics in India
(a) Always valid (b) Always void
(c) Always voidable (d) At times voidable
C

267. The best procedure for opening an account in the name of a minor x and the guardian y would be under the style.
(a) “x” account (b) “x” account - minor
(c) “y” in trust for x (d) “y” account
C

268. The balance of joint account in the name of x, y and z should be paid on the death of x
(a) To the legal representative of x
(b) To y and z
(c) To y or z
(d) To the legal representatives of x, y and z
D

269. A customer’s letter of instructions, without any stamp, in connection with the operations of his account is known as
(a) Mandate (b) Probate
(c) Power of attorney (d) Authority letter
A

270. The most important feature of negotiable instrument is
(a) Free transfer (b) Transfer free from defects
(c) Right to issue (d) (a) and (b) together
D

271. The document drawn by a debtor on the creditor agreeing to pay a certain sum is called
(a) Promissory note (b) Cheque
(c) Bill of exchange (d) Draft
A

272. The following one is a negotiable instrument, negotiable by usage or custom
(a) Bill of exchange (b) Share warrant
(c) Accommodation bill (d) Promissory note
B

273. In the case of negotiable instrument, the following person generally gets a good title
(a) Finder of the lost instrument (b) Holder of a stolen instrument
(c) Holder-in-due course (d) Holder of a forged instrument
C

274. A cheque which is not crossed is called
(a) Open cheque (b) Bearer cheque
(c) Uncrossed cheque (d) Order cheque
A

275. The safest form of crossing is
(a) Account payee crossing (b) General crossing
(c) Special crossing (d) Double crossing
A

276. The following one is absolutely essential for a special crossing
(a) Two parallel transverse lines (b) Words “And company”
(c) Words “Not negotiable” (d) Name of a banker
D

277. Not negotiable crossing is a warning to the
(a) Paying banker (b) Collecting banker
(c) Holder (d) (a) and (b) together
C

278. A not negotiable crossing restricts what of the cheque
(a) Transferability
(b) Negotiability
(c) Neither transferability nor negotiability
(d) Both transferability and negotiability
B

279. An order cheque can be converted into a bearer cheque by means of
(a) Sans recourse endorsement (b) Special endorsement
(c) Blank endorsement (d) Sans frais endorsement
C

280. Endorsement signifies that the
(a) Endorser has got a good title
(b) Endorser’s signature is genuine
(c) Previous endorsements are genuine
(d) All the above
D

281. One of the following endorsements is not a valid one
(a) Conditional endorsement (b) Restrictive endorsement
(c) Partial endorsement (d) Facultative endorsement
C

282. Negotiability gives to the transferee what title of the transferor
(a) Better title (b) No title
(c) The same title (d) No better title
A

283. To get statutory protection, the paying banker must make
(a) Payment to a holder
(b) Payment in due course
(c) Payment to a holder in due course
(d) Payment to a drawee in case of need
C

284. The best answer for returning a cheque for want of funds in the account is
(a) Refer to drawer (b) Not provided for
(c) Exceeds arrangement (d) Not sufficient funds
D

285. When the amount stated in words and figures differs, the banker
(a) Can honour the amount in figures
(b) Can honour the amount in words
(c) Can honour the smaller amount
(d) Can dishonour it
B

286. When a Garnishee order is issued by the court attaching the account of a customer, the banker is called
(a) Garnishee (b) Garnishor
(c) Judgement creditor (d) Judgement debtor
A

287. A collecting banker is given protection only when he collects
(a) A crossed cheque (b) An order cheque
(c) A bearer cheque (d) A mutilated cheque
A

288. A collecting banker is given the statutory protection only when he acts as
(a) An agent (b) A holder
(c) A holder for value (d) A holder in due course
A

289. Collecting a cheque payable to the firm to the private account of a partner without enquiry constitutes
(a) Gross negligence
(b) Contributory negligence
(c) Negligence under remote grounds
(d) Negligence connected with immediate collection of a cheque
D

290. Bankers undertake the duty of collection of cheques and bills because
(a) Section 131 of the Negotiable Instruments Act compels them to do so
(b) Section 85 of the Negotiable Instruments Act compels them to do so
(c) Collection is a must for a crossed cheque
(d) They want to do it as a service
D

291. The most risky charge from a banker’s point of view is
(a) Pledge (b) Hypothecation
(c) Mortgage (d) Lien
B

292. The most convenient charge from an industrialist’s point of view is
(a) Equitable mortgage (b) Legal mortgage
(c) Hypothecation (d) Lien
C

293. An equitable mortgage can be created in respect of
(a) Government securities (b) Real estate
(c) Wheat in a godown (d) Life policies
B

294. A charge where there is neither the transfer of ownership nor the possession is called
(a) Hypothecation (b) Lien
(c) Pledge (d) Mortgage
A

295. The liability of the mortgager is gradually reduced in the case of
(a) Equitable mortgage (b) Legal mortgage
(c) Usufructuary mortgage (d) Conditional mortgage
C

296. Real estate is not popular as a security because of
(a) Difficulties in ascertaining the title
(b) Difficulties in its valuation
(c) The absence of ready market
(d) Long-term nature of the loan
A

BANK EXAM QUESTIONS SET 4


126. Margin of surrender value for the purpose of bank loan is retained to the extent of
(a) 5%
(b) 8%
(c) 10%
(d) 15%
ANS : C

127. Selective credit control covers
(a) Margin
(b) Interest
(c) Level of credit
(d) All the above
ANS : D

128. Under which provisions is Selective credit control governed?
(a) Section 49 of the Banking Regulation Act
(b) Section 3 of the Public Debt Act
(c) Section 21 of the RBI Act
(d) Section 131 of the Negotiable Instrument Act
ANS : C

129. Pledge of advance is made against
(a) Gold
(b) Commodities
(c) Coins and notes
(d) All the above
ANS : B

130. What rate of interest is charged on the advances made against Duty Draw Back Scheme?
(a) Same as of export advance
(b) Same as on working capital
(c) Same as of export refinance
(d) Nil
ANS : D

131. Contract of insurance is a contract of
(a) Agency
(b) Indemnity
(c) Bailment
(d) Guarantee
ANS : B

132. The insurance policy over the security is arranged for in the name of the
(a) Borrower and endorsed in favour of the bank
(b) Bank
(c) Borrower
(d) None of the above
ANS : A

133. Bank becomes pledge over the
(a) Supply bills
(b) Demand bills
(c) Import bills
(d) Export bills
ANS : C

134. Who registers the firm?
(a) Deputy Commissioner
(b) Bank
(c) Registrar of Firms
(d) Registrar of Companies
ANS : C

135. Which of the following are covered under pledge?
(a) Actual delivery of the goods
(b) Factory type pledge
(c) Constructive delivery of the goods
(d) All the above
ANS : D

136. Cash credit accounts are closed
(a) On the death of the agent
(b) On the death of the principal
(c) On the death of the Managing Director of the company
(d) None of the above
ANS : B

137. Industrial co-operatives covered under SSI can raise loan without ceiling. The loan will be refinanced by
(a) IDBI
(b) RBI
(c) NABARD
(d) DICGC
ANS : C

138. What is the minimum period of medium and long-term loans?
(a) 12 months
(b) 18 months
(c) 24 months
(d) 36 months
ANS : B

139. Which bank does not belong to State Bank Group?
(a) State Bank of Indore
(b) Banaras State Bank
(c) State Bank of Bikaner and Jaipur
(d) State Bank of Patiala
ANS : B

140. For which are the reserves maintained before issuing the following?
(a) One rupee notes
(b) One rupee coins
(c) All notes and coins
(d) RBI notes
ANS : D

141. At the time of first nationalisation which bank had the highest deposits?
(a) Punjab National Bank
(b) Canara Bank
(c) Central Bank of India
(d) Bank of India
ANS : C

142. New branch in rural and semi-urban area should cover an average population of over
(a) 13,000
(b) 17,000
(c) 20,000
(d) 25,000
ANS : A

143. The exchange rate is kept the same in all parts of the market by
(a) Speculation
(b) Interest arbitrage
(c) Exchange arbitrage
(d) Hedging
ANS : C

144. If all the banks in an economy are nationalised and converted into a monopoly bank, total deposit creation
(a) Will increase
(b) Will decrease
(c) Will neither increase nor decrease
(d) All the above
ANS : C

145. The purpose of international trade is
(a) Need for exports
(b) To encourage exports
(c) To promote international understanding
(d) To increase income of participation countries
ANS : D

146. The power of banks to create credit depends on
(a) Amount of cash with them and the safe ratio
(b) Safe ratio only
(c) Amount of cash with them only
(d) None of the above
ANS : A

147. The money the banker creates is
(a) His asset
(b) His liability
(c) Both his asset and liability
(d) None of the above
ANS : B

148. High rate of investment may
(a) Reduce the amount of credit creation
(b) Create better chances for the credit creation
(c) Not affect the amount of credit in any way
(d) Lead to any of the above-mentioned occurrences
ANS : B

149. The ‘monetary base for credit expansion’ consists of
(a) The total value of ‘high-powered money’
(b) The demand and time deposit liabilities
(c) The size of the deficit in the government’s budget
(d) All of these
ANS : A

150. A rise in the reserve ratio of banks
(a) Will lead to an increase in the money supply
(b) Will lead to a proportionate increase in the money
(c) Will lead to a decrease in the money supply
(d) None of these
ANS : C

151. The largest nationalised bank of India is
(a) Central Bank of India
(b) State Bank of India
(c) Bank of India
(d) Reserve Bank of India
ANS : B

152. Commercial banks influence money supply through
(a) Printing of one rupee notes
(b) Augmentation of savings and time deposits
(c) Provision of high denomination notes
(d) Creation of demand deposits
ANS : D

153. Which institution grants financial assistance exclusively to the private sector industries in our country?
(a) Unit Trust of India
(b) Life Insurance Corporation of India
(c) Industrial Credit and Investment Corporation of India
(d) Industrial Finance Corporation of India
ANS : C

154. Who grants subsidy?
(a) Government of India
(b) State Government
(c) RBI
(d) SBI
ANS : A

155. Minimum cash reserves fixed by law constitute
(a) A percentage of aggregate deposits of the bank
(b) A percentage of aggregate loans and advances of the bank
(c) A percentage of capital and reserves of the bank
(d) None of the above statements is correct
ANS : A

156. The difference between the correct market value and the loan value of a given security in banking terms, is known as
(a) The collateral value
(b) The security value differential
(c) The margin
(d) All the above
ANS : C

157. An increase in bank rate, other things being equal, will result into
(a) A decline in the cost of credit including greater and the demand for borrowing
(b) An increase in the cost of credit discouraging demand for credit
(c) No change in the cost of credit and the demand for borrowing
(d) Cost of credit has no relationship with demand for borrowing
ANS : B

158. Inward remittances by foreign steamship and airlines companies to finance their operating expenses in the country are shown under
(a) The credit side of the current account of balance of payment
(b) The debit side of the current account of balance of payment
(c) The credit side of the capital/account of balance of payment
(d) The debit side of the capital account of balance of payment.
ANS : A

159. How many copies of bank’s lien are sent to the company?
(a) One
(b) Two
(c) Three
(d) Four
ANS : B

160. Find out the correct statement
(a) ‘Selective credit controls are superfluous in general monetary management
(b) ‘Selective credit controls have inverse relationship with quantitative instruments of credit control
(c) ‘Selective credit controls are complimentary to quantitative instruments of credit control
(d) None of above statements is correct
ANS : C

161. Bank rate policy as a weapon of credit control has emerged from the Central Bank’s function as
(a) Bank of issue
(b) Lender of the last resort
(c) Banker’s bank
(d) All the above
ANS : B

162. Open market operations are mainly used as
(a) A fiscal device which assists Government borrowing
(b) A monetary measure to regulate quantity of money in circulation and the cash reserves of the commercial banks
(c) A measure to counteract extreme trends in business
(d) A measure to influence the balance of payments position
ANS : B

163. The variable reserve ratio has tremendous possibilities of effective credit control in
(a) Under-developed economies
(b) Developed economies
(c) Both developed and under-developed economies
(d) Neither developed nor under-developed economies
ANS : A

164. Discount rate on certificate of deposits is decided by
(a) RBI
(b) IBA
(c) SBI
(d) None of these
ANS : D

165. Sources to meet working capital are
(a) Net working capital or liquid surplus
(b) Sundry creditors and advance payment received
(c) Bank finance for working capital
(d) All the above jointly
ANS : D

166. What is Debt Equity Ratio?
(a) Ratio of long-term borrowing to tangible net worth
(b) Ratio of current assets to own tangible net worth
(c) Ratio of fixed assets to tangible net worth
(d) None of the above
ANS : A

167. Intangible assets are
(a) Preliminary expenses
(b) Patents, copyright, goodwill
(c) Losses which cannot be reduced from share capital
(d) All the above
ANS : D

168. What is Current Ratio?
(a) Ratio of total assets to total liabilities
(b) Earning capacity of unit
(c) Ratio of current assets to current liabilities
(d) None of the above
ANS : C

169. Current Ratio represents
(a) Ability of the unit to meet its current liabilities out of current assets
(b) Ability of easy profit
(c) Ability of the unit to pay instalments of term-loan
(d) None of the above
ANS : A

170. Liability-side of the balance-sheet comprises
(a) Capital and reserve
(b) Long-term liabilities
(c) Current liabilities
(d) All the above
ANS : D

171. The 15th day of a month is known as
(a) Customer’s Day
(b) Complaints Day
(c) Holiday
(d) None of the above
ANS : A

172. Inter-bank participation certificates are issued on the recommendations of which committee?
(a) Ghosh
(b) Vaghul
(c) Chakravarthy
(d) Narasimhan
ANS : B

173. A transferable letter of credit cannot be transferred more than
(a) Once
(b) Twice
(c) Three times
(d) Four times
ANS : A

174. If the word irrevocable or revocable is not indicated in a letter of credit, then the credit shall be deemed as
(a) Revolving credit
(b) Standby credit
(c) Revocable credit
(d) Irrevocable credit
ANS : C

175. Service charges on Foreign Letter of Credit are fixed by
(a) IBA
(b) FEDAI
(c) RBI
(d) IBRD
ANS : B

176. Exchange portion of Demand Bills purchased is credited to which account?
(a) Discount
(b) Commission
(c) Exchange
(d) Interest
ANS : D

177. Unclaimed pass-books lying with the bank may be cancelled and destroyed after how many years?
(a) 2
(b) 3
(c) 5
(d) 10
ANS : B

178. The Government has allowed certain remission on which of the following bills?
(a) Usance
(b) Demand
(c) Exchange
(d) All the above
ANS : A

179. Export Credit Packing Advances sanctioned to SSI exporters are covered under the credit guarantee scheme of
(a) DICGC
(b) ECGC
(c) DRI
(d) None of the above
ANS : B

180. Total investment in a company is
(a) Net fixed assets
(b) Shareholder’s funds plus term-liabilities
(c) The total assets of the company
(d) None of the above
ANS : B

181. The Deposit Insurance Credit Guarantee Scheme was formed on
(a) July 1, 1975
(b) January 1, 1952
(c) January 1, 1962
(d) January 1, 1991
ANS : C

182. At present (March 1998) the maximum bank’s deposit interest rate is
(a) 9%
(b) 10%
(c) 11%
(d) 12%
ANS : C

183. Banker’s cheque is valid from the issue date for
(a) 3 months
(b) 6 months
(c) 12 months
(d) 24 months
ANS : B

184. Remittance means
(a) Despatch of issuable notes
(b) Despatch of solid notes
(c) Despatch of coins
(d) All the above
ANS : D

185. For which of the following, minor is nor eligible for
(a) Making a will
(b) Taking a locker in his name
(c) Appointing nominee of a locker
(d) All the above
ANS : D

186. A branch can be kept opened for Government business on a public holiday on the orders of the
(a) Collector
(b) Branch Manager
(c) Governor of the RBI
(d) Prime Minister
ANS : A

187. Who pays commission to banks for conducting Government business?
(a) Government of India
(b) State Government
(c) RBI
(d) Central and State Governments
ANS : C

188. Which country has the lowest rate of interest on advances?
(a) India
(b) Switzerland
(c) Japan
(d) USA
ANS : B

189. Concept of Banking Secrecy was converted into law in
(a) 1924
(b) 1927
(c) 1930
(d) 1934
ANS : D

190. The shares must be transferred in favour of the bank if the advance exceeds
(a) 1 lakh
(b) 2 lakhs
(c) 3 lakhs
(d) 5 lakhs
ANS : C

191. Bank’s charge over boats is registered with
(a) RBI
(b) SBI
(c) Port authorities
(d) Government of India
ANS : C

192. In April 2000 India’s trade deficit (exports and imports) was $ billion
(a) 220.4
(b) 112.3
(c) 467.8
(d) 100.5
ANS : B

193. With regard to the export policy of the Government of India, find out the correct statement
(a) All commodities can be exported without licence
(b) Export licences are required for only a few items
(c) Export licences are required for all items
(d) All the above
ANS : C

194. We can open a savings bank account in the sole name of a minor if he completes age of
(a) 6 (b) 10
(c) 18 (d) 21
ANS : B

195. The Banking Regulations Act, 1949 was enacted to
(a) Nationalise the banks
(b) Open regional rural banks
(c) Consolidate and amend the laws relating to banking companies
(d) Inviting foreign banks
ANS : C

196. The Banking Regulation Act was implemented on
(a) September 6, 1949
(b) April 1, 1949
(c) March 16, 1949
(d) March 31, 1949
ANS : C

197. The fourteen banks were nationalised on
(a) July 19, 1969 (b) June 1, 1969
(c) June 16, 1969 (d) July 1, 1969
ANS : A

198. The banks were nationalised with the motive to
(a) Develop the country economically
(b) Give priority to neglected sectors and exports
(c) Extend finances to weak and backward areas
(d) All the above
ANS : D

199. The fourteen banks which were nationalised were having total deposits
(a) Rs. 10 crores or above
(b) Rs. 25 crores or above
(c) Rs. 50 crores or above
(d) Rs. 75 crores or above
ANS : C

200. The remaining six banks were nationalised on
(a) April 15, 1980
(b) April 5, 1980
(c) April 1, 1980
(d) none of the above
ANS : A

BANK EXAM QUESTIONS SET 3


76. Maximum period of a usance bill considered by bank is
(a) 6 months
(b) 9 months
(c) 12 months
(d) 24 months
ANS : A

77. Which of the bills has no grace period?
(a) Demand bill
(b) Clean bill
(c) Sight bill
(d) All the above
ANS : D

78. After acceptance, the primary liability on a Bill of Exchange is that of
(a) Payee
(b) Acceptor
(c) Drawee
(d) Endorsee
ANS : B

79. Which of the following are accommodation bills?
(a) House bills
(b) Bills representing trading transactions
(c) Bills accepted with consideration
(d) None of the above
ANS : A

80. Under the Sale of Goods Act, a warehouse-keeper’s certificate is a
(a) Contract of sale
(b) Contract of pledge
(c) Document of title to goods
(d) Contract of lease
ANS : C

81. The Government derives maximum revenue from
(a) Income tax
(b) Customs
(c) Sales tax
(d) Excise duty
ANS : D

82. Which of the following may be adjudged as insolvent?
(a) Minor
(b) Married woman
(c) Firm
(d) Lunatic
ANS : B

83. X and Y have joint account. A Garnishee order was served on X who does not have an individual account. Bank shall
(a) Attach the joint account
(b) Attach 50% of the joint account like attachment
(c) Not attach the joint account
(d) All the above
ANS : C

84. Non-registered firm cannot
(a) Sue its partners or debtors
(b) Be sued by its creditors
(c) Be sued by its own partners
(d) None of the above
ANS : A

85. Sets of Garnishee Order
(a) 3
(b) 5
(c) 4
(d) 2
ANS : D

86. Appropriation of accounts is provided in
(a) Negotiable Instruments
(b) Banking Regulation Act, 1949
(c) Indian Contract Act, 1872
(d) All the above
ANS : B

87. A cheque becomes stale after
(a) 2 months
(b) 3 months
(c) 6 months
(d) 12 months
ANS : C


88. Bank conducts Government business at its branches as an agent of
(a) RBI
(b) SBI
(c) Government of India
(d) None of the above
ANS : A

89. The validity period of a challan/bill passed by a Treasury Officer is for
(a) 7 days
(b) 10 days
(c) 14 days
(d) 20 days
ANS : B

90. A draft for Rs. 18,000 is issued in which series?
(a) OT
(b) TT
(c) OL
(d) OM
ANS : C

91. Minimum period for which a locker can be hired is
(a) 1 week
(b) 3 months
(c) 6 months
(d) 12 months
ANS : C

92. When a fixed deposit receipt is kept with the bank for its safety, it is known as
(a) Safe custody
(b) Safe deposit
(c) Locker
(d) Valid safe deposit
ANS : A

93. Rupee Traveller Cheques are for a period of
(a) 6 months
(b) 12 months
(c) 24 months
(d) Unlimited
ANS : D

94. India’s 7th Export Processing Zone is being set up at
(a) Mumbai
(b) Visakhapatnam
(c) Cochin
(d) Chennai
ANS : C

95. Gilt-edged securities are
(a) Shares of a private limited company
(b) First-class Government securities
(c) Shares of a company
(d) None of the above
ANS : B

96. Certificate of Deposits can be issued for a minimum period of
(a) 45 days
(b) 3 months
(c) 6 months
(d) 1 year
ANS : B

97. Telegraphic Transfer Receipt is a
(a) Bearer instrument
(b) Order instrument
(c) Non-negotiable
(d) Business letter
ANS : C

98. A gift cheque is
(a) A negotiable instrument
(b) An order instrument
(c) Simple receipt
(d) A quasi-negotiable instrument
ANS : C

99. If a payee of a mail transfer does not maintain account
(a) Banker’s cheque will be issued
(b) M. T. will be credited to Sundry Deposit Account
(c) Draft will be issued
(d) New account will be opened
ANS : A

100. Which of the following can delegate his power to a third person?
(a) Liquidator
(b) Executor
(c) Individual
(d) Partner
ANS : C

101. Overdue interest for all types of deposits can be paid in cash to
(a) Minor
(b) Guardian
(c) Depositor
(d) Legal heirs of a deceased depositor
ANS : D

102. Which of the following has been withdrawn?
(a) Credit Monitoring System
(b) Credit Authorisation Scheme
(c) Credit Monitoring Arrangement
(d) None of the above
ANS : B

103. An executor of deceased account is appointed under
(a) Trust
(b) Court
(c) Will
(d) Family tradition
ANS : C

104. Service area approach has been launched from
(a) January 1, 1990 (b) April 1, 1989
(c) April 1, 1992 (d) July 1, 1992
ANS : B

105. While granting an overdraft against the security of life insurance policy, the
advance value is computed on the basis of
(a) Total amount of the policy
(b) Paid-up value of the policy
(c) Surrender value of the policy
(d) None of the above
ANS : C

106. Book-debits of a company can be charged to the bank by way of
(a) Hypothecation
(b) Pledge
(c) Mortgage
(d) Lien
ANS : A

107. Which of the following has issued Master shares?
(a) RBI
(b) SBI
(c) UTI
(d) LIC
ANS : C

108. Which of the following schedules of Indian constitution deals with banking?
(a) 5th
(b) 6th
(c) 7th
(d) 8th
ANS :

109. Is there any limit for a currency transfer?
(a) 10 lakhs
(b) 25 lakhs
(c) No limit
(d) 1 crore
ANS : C

110. Currency notes deposited in the currency chest are the property of
(a) Respective bank
(b) RBI
(c) SBI
(d) Government of India
ANS : B

111. The minimum amount to effect a currency transfer is
(a) Rs. 500
(b) Rs. 2,000
(c) Rs. 1,000 withdrawal deposit Rs. 500
(d) Rs. 5,000 multiples of Rs. 1,000
ANS : C

112. Relationship between the RBI and the bank maintaining currency chest will be of
(a) Trustee and beneficiary
(b) Principal and agent
(c) Licensor and licensee
(d) Creditor and debitor
ANS : C

113. Indian currency means
(a) One-rupee notes and coins under Indian Coinage Act, 1906
(b) Notes only
(c) Coins only
(d) None of the above
ANS : A

114. Which of the following notes cannot be exchanged?
(a) Solid notes
(b) Mismatched notes
(c) Mutilated notes
(d) All the above
ANS : B

115. Daily operations on the currency chest are advised to
(a) RBI
(b) Concerned bank
(c) Main branch of the district
(d) Through link branch to RBI
ANS : D

116. Suprious coins detected at the counter are sent to
(a) Mint
(b) Government of India
(c) RBI
(d) IBRD
ANS : A

117. Signature on Re. 1 note is made by the Finance Secretary but on the other notes by
(a) Prime Minister
(b) President of India
(c) Governor of Reserve Bank of India
(d) Finance Minister
ANS : C

118. On a cheque instead of two parallel lines only bank’s name is written. It is a
(a) General crossing
(b) No crossing
(c) Payable to bearer
(d) Special crossing
ANS : D

119. A holder in due course of a cheque does not get protection from
(a) Irregularity of endorsement
(b) Without consideration
(c) Default in the title
(d) All the above
ANS : B

120. What is the minimum period of reinvestment deposits?
(a) 1 month
(b) 2 months
(c) 3 months
(d) 6 months
ANS : D

121. Which of the following is a borrowing facility/loan advance?
(a) Term finance
(b) Performance guarantee
(c) Bill received under letter of credit
(d) All the above
ANS : A

122. Fixed assets ratio means
(a) Fixed assets to paid-up capital
(b) Net fixed assets to long-term funds
(c) Net worth
(d) None of the above
ANS : B

123. A decline in the current ratio and liquidity ratio indicates
(a) Sound position
(b) Solvency
(c) Over trading
(d) Off shore
ANS : C

124. Marginal cost means
(a) Raw-material selling expenses and other variable expenses
(b) Prime cost
(c) Margin of sales
(d) None of the above
ANS : A

125. Assignment means transfer of
(a) Ownership only
(b) Possession only
(c) The policy-holder only
(d) A debit/right/property only
ANS : D

BANK EXAM QUESTIONS SET 2


26. When was SBI established ?
(a) April 1, 1935   (b) July 31, 1969
(c) May 5, 1955    (d) July 1, 1955
ANS : D

27. Presently, the number of the public sector banks in India is
(a) 8    (b) 20
(c) 28 (d) 14
ANS : C

28. The maximum number of partners in a non-banking partnership firm is
(a) 20    (b) 10
(c) 25    (d) 11
ANS : A

29. Which of the following banks are not commercial banks ?
(a) Foreign Banks     (b) State Co-operative Banks
(c) Private Banks      (d) Regional Rural Banks
ANS : B

30. Regional rural banks are managed by
(a) The Central Government    (b) The RBI
(c) The Board of Directors      (d) The State Government
ANS : C

31. Under which of the following methods of note-issue the RBI issues notes?
(a) Fixed Fiduciary System     (b) Maximum Fiduciary System
(c) Minimum Reserve System (d) Proportional Reserve System
ANS : C

32. Cash deposit ratio means
(a) The percentage of cash-in-hand-balance with the Central Bank to the aggregate deposits
(b) The percentage of total cash money received as deposits by banks
(c) All the above
(d) None of the above
ANS : A

33. Lead Bank Scheme was introduced in
(a) 1965    (b) 1969
(c) 1981    (d) 1992
ANS : B

34. A rise in the reserve ratio of banks
(a) Will lead to an increase in the money supply
(b) Will lead to a proportionate increase in the money supply
(c) Will lead to a decrease in the money supply
(d) None of these
ANS : C

35. Negotiable Instruments Act contains Sections as
(a) 137    (b) 142
(c) 138    (d) 141
ANS : B

36. Presently which bank is having the largest number of foreign branches?
(a) SBI        (b) Canara Bank
(c) Bank of Baroda     (d) Bank of India
ANS : C

37. A usance bill can be drawn for a minimum period of
(a) 1 day     (b) 2 days
(c) 3 days    (d) 4 days
ANS : A

38. Savings bank deposits are exempted from wealth tax up to
(a) 2 lakhs     (b) 5 lakhs
(c) 10 lakhs    (d) 20 lakhs
ANS : B

39. The amount of unclaimed banker’s cheques is credited to
(a) Respective LHO        (b) Respective Module
(c) Charges A/c (Misc)    (d) Commission A/c
ANS : D

40. SBI is having maximum number of foreign offices in
(a) U.S.A.               (b) U.K.
(c) West Germany   (d) Japan
ANS : B

41. How many export processing zones are in India?
(a) 5    (b) 6
(c) 7    (d) 8
ANS : B

42. FCNR accounts can be opened and maintained as
(a) Current Accounts            (b) Savings Bank Accounts
(c) Term Deposit Accounts   (d) Recurring Deposits
ANS : C

43. In the case of FCNR accounts the payment of interest is effected in
(a) Indian Rupee
(b) Only in Pound (£)
(c) Same currency in which deposit stands
(d) Yen
ANS : C

44. What comprises financial statement ?
(a) Profit and Loss Account    (b) Balance sheet
(c) Funds-flow-statement       (d) All the above
ANS : D

45. Profit and Loss Account represents
(a) Position of profit on a particular date
(b) Position of profit for a given period
(c) Position of loss for a given period
(d) B and C above
ANS : D

46. Balance sheet is
(a) Statement of assets and liabilities on a particular date
(b) Statement of profit and loss on a particular date
(c) Position of cash balance
(d) Statement of assets and liabilities for a particular year
ANS : A

47. Balance sheet analysis helps in
(a) Ratio analysis              (b) Trend
(c) Inter-firm comparison  (d) All the above
ANS : D

48. Banks are required to maintain SLR under
(a) Section 24 of the Banking Regulation Act
(b) Section 49 of the Banking Regulation Act
(c) Section 24 of RBI Act
(d) None of the above
ANS : A

49. CRR is required to maintain in the form of
(a) Approved Government Securities
(b) Cash with RBI
(c) Cash with bank
(d) All the above
ANS : B

50. Working capital requirement depends upon
(a) Level of activity     (b) Types of business carried
(c) All the above         (d) None of the above
ANS : C

51. For which of the following categories the payment can be stopped ?
(a) Gift cheque          (b) Cheque
(c) Bill of Exchange   (d) Promissory Notes
ANS : B

52. The introducer is liable to the bank under the
(a) Indian Penal Code   (b) RBI Act
(c) Contract Act            (d) NI Act
ANS : B

53. Cheque bearing ‘Non-negotiable’ crossing is endorsed to other person.
In this case the endorsee becomes
(a) Holder for value    (b) Holder in due course
(c) Holder only         (d) Endorsee only
ANS : A

54. Which of the following are legal tender?
(a) Drafts                 (b) Cheques
(c) Currency notes   (d) Government drafts
ANS : C

55. In which of the Acts specimen of the cheque, bill, promissory note is given?
(a) Negotiable Instruments Act (b) Banking Regulation Act
(c) Mercantile Law (d) None of the above
ANS : D

56. Which of the following negotiable instruments can be crossed to the banks?
(a) Cheques              (b) Drafts
(c) Bills of Exchange (d) All the above
ANS : C

57. Which of the following can be issued payable to bearer?
(a) Cheque               (b) Draft
(c) Bill of Exchange   (d) Demand Promissory Notes
ANS : A

58. Protection is available to the collecting bank for the following
(a) Bill of Exchange     (b) Promissory Note
(c) Usance Bills           (d) Cheque
ANS : D

59. Crossing denotes
(a) Cheque cannot be transferred by the payee.
(b) A direction to the paying bank to pay the Cheque through a bank.
(c) Cheque will be paid through clearing only.
(d) Not payable across the counter but will be credited to the account of the holder.
ANS : D

60. A ‘Non-negotiable’ crossing is a
(a) General crossing          (b) Special crossing
(c) Restricted crossing       (d) Non-transferable crossing
ANS : A

61. A minor is admitted to the partnership firm as
(a) Agent     (b) Partner
(c) Minor     (d) Beneficiary
ANS : D

62. Legal guardian of minor is
(a) Nominated by the court for legal decision
(b) Appointed by the court
(c) Natural guardian
(d) Executor-administrator appointed by the court
ANS : B

63. A shareholder has been defined by
(a) The Banking Regulation Act, 1949
(b) The Companies Act, 1956
(c) The Securities Contract Regulation Act, 1956
(d) Indian Contract Act
ANS : B

64. What is the maximum period for which a Public Limited Company can raise deposits from the public?
(a) 12 months     (b) 18 months
(c) 36 months     (d) 24 months
ANS : C

65. Group of companies/firms/associates is defined in
(a) Companies Act     (b) Sale of Goods Act
(c) Contract Act         (d) Partnership Act
ANS : A

66. Which of the following cheques if paid do not get statutory protection?
(a) Bearer cheques    (b) Open cheques
(c) Stolen cheques     (d) All the above
ANS : B

67. Period of limitation for deposits starts from
(a) Date of the cheque
(b) Date of presenting cheque on the counter
(c) Date of making deposits
(d) Date of refusal by the bank
ANS : B

68. Who supplies interest-charts for different maturities and for different rates of interest ?
(a) IBA                           (b) RBI
(c) Government of India   (d) IBRD
ANS : A

69. The minimum period under which a term deposit under Reinvestment Plan can be issued is
(a) 24 months    (b) 12 months
(c) 6 months      (d) 9 months
ANS : C

70. Rates of Interest on deposits are determined by
(a) IBA      (b) Ministry of Finance
(c) RBI      (d) Government of India
ANS : C

71. Interest on the savings bank accounts is compounded
(a) Monthly     (b) Yearly
(c) Quarterly   (d) Half-yearly
ANS : D

72. What is the limitation of the number of persons in a joint savings bank account?
(a) Two     (b) Four
(c) Five      (d) No limit
ANS : D

73. The minimum average balance required to be maintained in a current account to avoid payment of ‘ledger fee’ is
(a) Rs. 500 credit      (b) Rs. 1,500 credit
(c) Rs. 1,500 debit    (d) Rs. 2,000 credit
ANS : B

74. Current account becomes dormant when there are no withdrawals for the last
(a) 3 months (b) 6 months
(c) 12 months (d) 18 months
ANS : B

75. How do you consider Joint Hindu Family?
(a) Legal entity                (b) Association of persons
(c) Partnership concern    (d) All the above
ANS : A

Saturday, January 26, 2013

BANK EXAM QUESTIONS SET 1


1. A banker should not grant loans and advances against
(a) Unquoted shares   (b) Partly paid-up shares
(c) Its own shares      (d) Third party’s shares
ANS :C

2. In the case of a life policy, the banker should see
(a) The existence of insurable interest   (b) The surrender value
(c) The admission of age                      (d) All of the above
ANS :D

3. The most risky document of title to goods from the banker’s point of view is
(a) Delivery order                            (b) Bill of lading
(c) Warehouse keeper’s certificate (d) Railway receipt
ANS :C

4. A legal title over shares is created
(a) By simply depositing the shares               (b) By depositing the shares along with a blank transfer
(c) By depositing shares along with a memorandum          (d) By executing a transfer deed
ANS :D

5. The rules framed in the Clayton’s case have been incorporated in
(a) The Banking Regulation Act    (b) The Reserve Bank of India Act
(c) The Indian Contract Act          (d) The Negotiable Instruments Act
ANS :C

6. The limitation period in case of a bank deposit begins from
(a) The date on which deposit was made
(b) The date on which the demand for payment was made
(c) The date on which first withdrawal is made
(d) None of the above
ANS :B

7. When a debtor owes several debts to a banker and makes a payment, the right of appropriation lies with
(a) The banker       (b) The debtor
(c) The court          (d) None of the above
ANS :B

8. A Garnishee order is served on A and B jointly. They maintain a joint account as well as individuals accounts with the bank. The order shall attach
(a) Only the joint account of A and B                              (b) Only the individual accounts of A and B
(c) The joint as well as individual accounts of A and B     (d) None of the above
ANS :C

9. In terms of Section 31 of the Reserve Bank of India Act, 1934 a demand draft payable to bearer may be issued only by
(a) Nationalised Banks              (b) Scheduled Commercial Banks
(c) Reserve Bank of India           (d) Foreign Banks
ANS :C

10. The payment of a lost demand draft is made to the
(a) Purchaser               (b) Payee
(c) Nominee                (d) None of the above
ANS :A

11. In case of original demand draft is presented after the duplicate has already been paid, the bank will
(a) Pay the original demand draft as well and recover the amount from the purchaser on the strength of the indemnity bond
(b) Return with remarks “Draft reported lost, duplicate already paid will pay on collecting bank’s guarantee. In case the original draft is again presented, it should be honoured.”
(c) Return with the remarks payment stopped by the payee
(d) None of the above
ANS :A

12. Unsigned demand draft is presented for payment, the drawee branch will
(a) Honour it
(b) Dishonour it since it does not have a mandate of the drawer bank to pay it.
(c) Honour it after seeking confirmation from the collecting bank
(d) Honour it if it is for small amount
ANS :B

13. Traveller’s cheques are valid for
(a) Three months           (b) Six months
(c) One year                 (d) No limit-are valid till encashed
ANS :D

14. Do the banks issue traveller’s cheques to non-customers also?
(a) Yes                                         (b) No
(c) No - only people of repute     (d) No - only to people having annual income above Rs. 60,000
ANS :A

15. Are the traveller’s cheques subject to stamp duty in India?
(a) Yes                                (b) No
(c) Yes, all traveller’s cheques above the value of Rs. 1,000
(d) Yes, all the traveller’s cheques above the value of Rs. 5,000
ANS :B

16. Minimum balance required to be maintained for cheque book facility
(a) Rs. 100              (b) Rs. 200
(c) Rs. 500              (d) Rs. 1000
ANS :D

17. The committee on Banking Sector Reforms under the chairmanship of Sri. M. Narasimham was appointed in
(a) 1991             (b) 1995
(c) 1998             (d) 1999
ANS :C

18. The Government of India passed the “Recovery of Debts due to Banks and Financial Institutions Act” in
(a) 1993       (b) 1992
(c) 1994       (d) 1990
ANS :A

19. Where the Apellate Tribunal for recovery of debts due to banks and financial  institutions is set up?
(a) Chennai       (b) Bangalore
(c) Mumbai       (d) Kolkata
ANS :C

20. Documentations is
(a) Proper execution of documents       (b) Stamping of document
(c) Cancellation of stamps                    (d) None of the above
ANS :A

21. Collateral securities can be
(a) Tangible                       (b) Intangible in the shape of personal guarantee of a third party
(c) None of the above       (d) Both of the above
ANS :D

22. The Central Bank of India is
(a) The Reserve Bank of India             (b) The State Bank of India
(c) The Andhra Bank                          (d) Global Trust Bank
ANS :A


23. Stock exchange securities do not include
(a) Debentures of companies
(b) Small debentures issued by port trusts
(c) Government promissory notes
(d) Participation certificates
ANS :D

24. Under Section 19(i) a banking company can hold shares in a limited company to the extent of
(a) The paid-up capital and free reserve of that company
(b) The paid-up capital of the bank
(c) 30% of the paid-up capital of the company or 30% of its own paid-up capital and reserves which ever is higher
(d) 30% of the paid-up capital of the company or 30% of its own paid-up capital and reserves which ever is higher
ANS :C

25. The Definition of ‘Banking’ is given in
(a) Negotiable Instrument Act, 1881
(b) RBI Act, 1934
(c) The Banking Regulation Act, 1949
(d) Contract Act
ANS :C