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
