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
