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
