Banking and Finance 3 MCQs : This section focuses on the "Banking and Finance 3". These Multiple Choice Questions (MCQs) should be practiced to improve the Banking and Finance 3 skills required for various interviews (campus interview, walk-in interview, company interview), placement, entrance exam and other competitive examinations.
Question 1
____________ is a dead cheque
A. Post dated cheque
B. Stale cheque
C. Ante dated cheque
D. Pre dated cheque
Question 2
_________ is the right of a person to retain the property of another person in his possession untill thedebt from that owner of that property is repaid.
A. Lien
B. Retainment
C. Retrenchment
D. Libel
Question 3
_________ paid at closing can reduce the interest rate used to determine the monthly payments on amortgage.
A. Discount points
B. Down payments
C. Loan origination fees
D. Amortization rates
Question 4
Reserve Bank has the power under __________ of the Securitisation Act to cancel the Certificate ofRegistration issued by it to any ARC:
A. Section 5
B. Section 8
C. Section 4
D. Section 12
Question 5
“Court procedure is justice-oriented, whereas ADR’s merit also lies in the fact that the process is participatory and solution-oriented”.
A. Yes
B. No
C. There exist doubt on the given proposition
D. none
Question 6
A ______________ is a person who is entrusted with some property by the settler or the author of the trustfor the benefit of another person called beneficiary.
A. Attorney
B. Executor
C. Administrator
D. Trustee
Question 7
A bank finances an agriculturist to buy a tractorThe loan is secured by:
A. Hypothecation of the tractor
B. Mortgage of the tractor
C. Pledge of the tractor
D. Assignment of the tractor
Question 8
A banker should not refuse payment of a cheque if ________.
A. The cheque is a post dated cheque.
B. The cheque is drawn on another branch of the same bank.
C. The cheque contains an apparent material alteration which is not properly authenticated by the drawer.
D. the cheque bears more than two endorsements
Question 9
A banker's lien is__________.
A. general lien
B. particular lien
C. Negative lien
D. none
Question 10
A charge where there is neither the transfer of ownership nor the possession is called ______?
A. Hypothecation
B. Lien
C. Pledge
D. Mortgage
Question 11
A cheque dated subsequent to the date of its issue is
A. Post dated cheque
B. Blank cheque
C. Crossed cheque
D. Account payee cheque
Question 12
A cheque has been deposited by a customer with his bank for collectionThe bank allows overdraftagainst the security thereofThe bank becomes
A. Holder of the cheque
B. Holder in due course
C. Holder for value
D. Drawer of the cheque
Question 13
A collecting banker is given protection only when he collects
A. A crossed cheque
B. An order cheque
C. An Bearer Cheque
D. An mutilated cheque
Question 14
A Collecting banker is given the statutory protection only when he acts as__.
A. A banker
B. A holder for value
C. A holder in due course
D. An agent
Question 15
A drawer in the bill of exchange can also be a
A. Paymaster
B. Payee
C. Banker
D. Creditor
Question 16
A mortgage can neither sue for foreclosure nor for sale of the property in______________.
A. English mortgage
B. Usufructuary mortgage
C. Mortgage by conditional sale
D. none
Question 17
A negotiable instrument drawn or make in India is called_______ instrument.
A. Inland
B. Foreign
C. Time
D. Clean
Question 18
A pledge can be made in respect of____
A. Shares
B. Building
C. Book debts
D. none
Question 19
According to Sec______, a banking company is not permitted to pay directly or indirectly by way of commission, brokerage, discount or remuneration on issues of its shares in excess of 2½% of the paid-up value of such shares.
A. 10
B. 11
C. 12
D. 13
Question 20
ADR techniques include arbitration, conciliation, mediation and negotiation.
A. yes
B. no
C. none
D. none
Question 21
____________________are excluded from the Banking Regulation Act 1949.
A. Public and Private Sector Banks
B. Primary Agricultural Credit Society and cooperative land mortgage banks
C. SEBI
D. Regional Rural Banks
Question 22
An actuary is expected to:
A. Make an exact forecast of the future liabilities of policies
B. Make a reasonable forecast of the future liabilities of policies
C. Calculate the premium required to cover a risk on a long-term basis
D. Find the probability of an insured event to happen in non-life policies
Question 23
An Example of smurfing:
A. Wiring money to the foreign country
B. A drug dealer asking a stranger to buy a money order with drug money.
C. A broker buying pesos with US Dollars
D. None of the above.
Question 24
An equitable mortgage can be created in respect of _______?
A. Government securities
B. Real estate
C. Wheat in a godown
D. Life Policies
Question 25
Arbitration can be ad-hoc, contractual, institutional or statutory.
A. yes
B. no
C. none
D. none
Question 26
As a fixed-rate mortgage nears maturity, the portion of the monthly mortgage payment that is appliedto principal _________ while the amount that is applied to interest ___________
A. Decreases; increases
B. Increases; decreases
C. Does not change; decreases
D. Increases; does not change
Question 27
As part of a mortgage agreement, a financial institution places a lien on the property until the loan ispaid in full.
A. TRUE
B. FALSE
C. none
D. none
Question 28
As per the provisions of which act all financial institutions have to maintain a record for all form oftransactions?
A. Companies Act, 1956
B. Credit Information (Companies Regulation Act, 2005)
C. Information Technology Act, 2000
D. PMLA Act, 2002
Question 29
Bank A grants an overdraft to ABC Ltd against book debts. This is secured by:
A. hypothecation
B. pledge
C. mortgage
D. assignment
Question 30
Banking company means any company which transacts the business of ________.
A. Banking only
B. Banking & Insurance
C. Banking & Foreign Exchange
D. Banking & Manufacturing
Question 31
Banks are required to maintain SLR under which act?
A. Section 24 of the Banking Regulation Act
B. Section 35 of the Negotiable Instrument Act, 1881
C. Section 24 of RBI Act
D. Section 40 of Indian Contract Act, 1872
Question 32
Bankers undertake the duty of collection of cheques and bills because______
A. Sec.131 of the NI Act compels them to do so
B. Sec.85 of the NI Act compels them to do so
C. They want to do it as a service
D. Collection is a must for a crossed cheque
Question 33
Bargaining is a common feature of the negotiation process.
A. The negotiation process provides the parties an opportunity to exchange ideas, identify the irritant points of differences, find a solution, and get commitment from each other to reach an agreement.
B. Even if a third party negotiator is involved in the process of negotiation, his role would be limited to inducing the parties to the process of negotiation.
C. Mediators would have higher level of involvement in the settlement of disputes when compared to that of negotiators.
D. All are true
Question 34
Before which for a can an asset reconstruction company file an application for enforcement of itssecurity interest:
A. Debt Recovery Tribunal
B. High Court
C. District Court
D. National Company Law Tribunal
Question 35
Benefits of securitization include all of the following EXCEPT:
A. Reduced credit risk
B. Generation of income
C. Greater reserve requirements
D. Increased liquidity
Question 36
Change of name by a banking company only happens with the approval of __________?
A. RBI
B. Government of India
C. Registrar
D. Auditor
Question 37
Cheque is payable on
A. Demand
B. Usage
C. Fixed future date
D. After sight
Question 38
Collateral securities can be _____?
A. Tangible
B. Intangible in the shape of personal guarantee of a third party
C. security given to get credit facilities/loan
D. All of the above
Question 39
Collecting a cheque payable to the firm to the private account of a partner without enquiryconstitutes______.
A. gross negligence
B. Negligence under remote grounds
C. Negligence connected with immediate collection of a cheque
D. Contributory Negligence
Question 40
Conciliation is a private, informal process in which a neutral third person helps disputing parties toreach an agreement.
A. TRUE
B. partially true
C. true up to the extent that a neutral third person helps disputing parties to reach an agreement
D. none
Question 41
Conciliator would independently investigate into the dispute and draft his report indicating the method of settlement of disputes.
A. TRUE
B. FALSE
C. none
D. none
Question 42
Contigent Liabilities in case of banking Companies are included in_________.
A. Schedule 9
B. Schedule 10
C. Schedule 11
D. Schedule 12
Question 43
Delay, unpredictability and cost are considered as three main enemies of efficient administration ofjustice.
A. yes
B. no
C. cannot be said
D. none
Question 44
Discounting of bills of exchange is
A. Clean advance
B. Secured advance
C. Neither clean advance nor secured advance
D. Unsecured advance
Question 45
Dishonour of cheque by a banker without any justifiable reason is called
A. Valid dishonour of cheques
B. Unmindful dishonour of cheques
C. Negligence dishonour of cheques
D. Wrongful dishonour of cheques
Question 46
Dishonour of Negotiable Instrument by Non Payment is covered under section in NegotiableInstrument Act 1882___
A. Section 90
B. Section 91
C. Section 92
D. Section 93
Question 47
Expand NEFT
A. National Electronic Fund Transfer
B. Neutral Electronic Fund Transfer
C. Nominal Electronic Fund Transfer
D. Natural Electronic Fund Transfer
Question 48
FATCA stands for
A. Foreign Account Tax Compliance Act
B. Foreign Account Trade Company Act
C. Financial Account Tax Compliance Act
D. Fiscal Account Tax Compliance Act
Question 49
FHA mortgages and VA mortgages are conventional mortgages.
A. TRUE
B. FALSE
C. none
D. none
Question 50
Form of Balance sheet of banking Companies includes Fixed assets in
A. Schedule 8
B. Schedule 9
C. Schedule 10
D. Schedule 11
Question 51
Form of Balance sheet of banking Companies includes Reserve & Surplus in
A. Schedule 1
B. Schedule 2
C. Schedule 3
D. Schedule 4
Question 52
Holder is an individual who has lawfully received possession of a Commercial Paper, such as a chequeand who is entitled for payment on such instrument.
A. TRUE
B. FALSE
C. none
D. none
Question 53
How many branches of Payment banks must be in the unbanked rural area?
A. 25%
B. 50%
C. 35%
D. 75%
Question 54
How many parties are mainly involved in Promissory Note?
A. One
B. Five
C. Two
D. Three
Question 55
How many Payment banks were approved by RBI in 2015?
A. 7
B. 11
C. 41
D. 9
Question 56
Hypothecation is a mode of security provided in
A. Indian contract act 1872
B. transfer of property act 1882
C. banking regulation act 1949
D. SARFAESI Act 2002
Question 57
If a Minor draw, indorse, deliver and negotiate Negotiable Instruments, it binds __
A. All the parties except minor
B. All the parties including minor
C. Minor Only
D. Minor and Only Drawer
Question 58
If cheque is crossed an account payee, this is direction of, ____________ to_______________
A. Payee, paying banker
B. Payee, collecting bank
C. Drawer, paying bank
D. Drawer, collecting bank
Question 59
If the holder of a bill of exchange allows the drawee more than ___ hours, exclusive of public holidays, to consider whether he will accept the same, all previous parties not consenting to such allowance are thereby discharged from liability to such holder.
A. 24
B. 12
C. 36
D. 48
Question 60
In a bill of exchange, drawee is the person
A. who draws the bill
B. on whom the bill is drawn
C. to whom the payment of the bill is to be made
D. to whom the payment of the bill is not to be made
Question 61
In a contractual arbitration the jurisdiction of courts can be completely ousted under 1996 Act.
A. No
B. yes, statutory provisions can be ousted
C. yes, it can be partially ousted
D. Yes it can be ousted, but for enforcing the award interference of court is needed
Question 62
In case a collecting banker has realized the cheque, he should pay the interest to the customer as perhis (customer’s) direction.
A. TRUE
B. FALSE
C. none
D. none
Question 63
In case collection of a bank draft the collecting banker is protected against conversion under _____section of Negotiable Instruments Act 1881.
A. 131
B. 131 A
C. 85
D. 128
Question 64
In case of an Indian banking company, the sum of its paid-up capital and reserves if it has places ofbusiness in more than one State shall not be less than
A. 5 Lakhs
B. 12 Lakhs
C. 15 Lakhs
D. 18 Lakhs
Question 65
In case of banking company incorporated outside India, aggregate value of its paid-up capital andreserve shall not be less than Rs__________
A. 5 Lakhs
B. 12 Lakhs
C. 15 Lakhs
D. 18 Lakhs
Question 66
In case of collection of cheques and bills, the relationship of the banker with the customer is that of
A. Bank as agent and customer trustee
B. Bank as trustee and customer debtor
C. Banker as debtor and customer bailee
D. Banker as bailor and customer bailee
Question 67
In case of sufficiency of funds in the account of the drawer which can be properly used to pay thecheque, the banker must pay the cheque when required to do so.
A. TRUE
B. FALSE
C. none
D. none
Question 68
In case of wrongful dishonour of a cheque by the banker
A. the holder can claim from drawee bank
B. the holder can claim from collecting bank
C. the remedy for holder is against drawer
D. holder can claim from drawee bank, collecting bank, drawer
Question 69
In executing the standing instructions, there exists a relationship of______
A. debtor and creditor
B. Trustee and Beneficiary
C. Bailee and Bailor
D. Agent and Principal
Question 70
Copies of balance-sheets and accounts to be sent to____________.
A. RBI
B. Government of India
C. Registrar
D. Auditor
Question 71
In Negotiable Instruments Act 1881, which section defines promissory note?
A. Section 1
B. Section 2
C. Section 3
D. Section 4
Question 72
In Shakuntla Sawhney v. Kaushalaya Sawhney,[(1979) 3 SCR 232]the Supreme Court has observed that “Finest hour of justice is the hour of compromise when parties after burying the hatchet, re-unite by a reasonable and just compromise” Whether this principle has been reflected in the ADR procedures mentioned in the Arbitration and Conciliation Act 1996?
A. Yes
B. No the above principle has nothing to do with Arbitration and Conciliation Act 199
C. The above principle has been formulated for CPC and not for Arbitration and Conciliation Act 1996
D. none
Question 73
In the case of a banking company incorporated outside India balance-sheet and profit and lossaccount shall be signed by _________ of the company.
A. Director of the principal office
B. Owner agent of the principal office
C. Manager or agent of the principal office
D. Central Government
Question 74
In the case of a joint stock co the registration of a charge is not required with registrar of companies for
A. Pledge of moveable property
B. hypothecation of moveable property
C. assignment of book debts
D. mortgage of fixed assets
Question 75
In which year, the Banking Regulation Act was amended to include cooperative banks under itspurview by adding the Section 56.
A. 1964
B. 1965
C. 1986
D. 1987
Question 76
Indian ADR system is based on the Common law system
A. FALSE
B. TRUE
C. none
D. none
Question 77
It is a _________________ obligation of a banker to honour the cheques of the customer drawn againstcurrent
A. Mutual
B. Statutory
C. Unstatutory
D. All of the above
Question 78
It is a _________________ obligation of a banker to honour the cheques of the customer drawn againstcurrent account.
A. Mutual
B. Statutory
C. Unstatutory
D. All of the above
Question 79
Lok Adalats have been given the powers of a civil court under the Code Civil Procedure.
A. Yes
B. No
C. yes, but with limited jurisdiction
D. none
Question 80
Managing agent includes
A. Secretaries and Treasurers
B. Where the managing agent is a company, and Director of such company, and any member thereof who holds substantial interest in such company
C. Where the managing agent is a firm, any partner of such firm
D. All of the above
Question 81
Mediation can be termed as assisted negotiation.
A. No
B. Yes
C. yes and the mediator plays the role of a facilitator in attaining cooperation between the parties to the dispute
D. none
Question 82
Mortgage borrowers must pay 20 percent of the home’s purchase price at closing as a down payment.
A. TRUE
B. FALSE
C. none
D. none
Question 83
Mortgage is defined under
A. contract act
B. sale of goods act
C. transfer of property act
D. none of the above
Question 84
Name the person to whom the amount of the cheque is payable?
A. Drawer
B. Payee
C. Drawee
D. Acceptor
Question 85
Name the person to whom the amount of the cheque is payable?
A. Drawer.
B. Payee.
C. Drawee.
D. Acceptor
Question 86
Neither possession nor ownership is transferred in____
A. Pledge
B. mortgage
C. Hypothecation
D. none
Question 87
Not negotiable crossing is a warning to the__________.
A. Paying banker
B. Collecting banker
C. Holder
D. (a) and (b) together
Question 88
On which rate bases, overnight money is needed by bank from RBI?
A. MSF
B. Repo rate
C. Reverse repo
D. Bank rate
Question 89
Pledge of advance is made against ______?
A. Gold
B. Commodities
C. Coins and notes
D. All the above
Question 90
Protection to the Paying Bank in case of alteration in a cheque is available under.
A. Sec 85 of NI act
B. Sec 89 of NI act
C. Sec 90 of NI act
D. Sec 98 of NI act
Question 91
RAM a transporter has been granted a loan for purchase of a truck. You will create which of thefollowing charge.
A. Assignment
B. a mortgage
C. pledge
D. hypothecation
Question 92
Regional rural bank means a regional rural bank established under section 3 of the Regional RuralBanks Act, __________
A. 1974
B. 1975
C. 1976
D. 1977
Question 93
Reserve Bank means the Reserve Bank of India constituted under section 3 of the Reserve Bank of India Act,_________
A. 1934
B. 1935
C. 1945
D. 1946
Question 94
Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Actpopularly known as SARFAESI Act was enacted in which of the following year:
A. 21st Day of June 2002
B. 30th Day of May 2002
C. 21st Day of July 2002
D. 21st Day of April 2002
Question 95
Section 45 of the Negotiable instruments Act, has imposed upon the banker the obligation to honourcustomers cheques.
A. TRUE
B. FALSE
C. none
D. none
Question 96
Section 6 of the Negotiable Instruments Act defines ___.
A. Cheque
B. Bill of Exchange
C. Promissory Notes
D. Dishonour by non-payment
Question 97
Section 75 of the Arbitration and Conciliation Act 1996 specifically provides for the confidentiality of all matters relating to the proceedings.
A. FALSE
B. TRUE
C. Parties can inspect the records like court proceeding
D. none
Question 98
Services rendered by a banker not only to his customers, but also to the general public are called as
A. Principal services
B. Agency services
C. General utility services
D. Social services
Question 99
Special damages refers to damages payable by a banker to his customer for the actual ____________ losssuffered by customer.
A. Financial
B. Special
C. Unpecuniary
D. Unfinancial
Question 100
Stamp duty on which of the following documents does not vary from state to state.
A. Mortgage of agreements
B. hypothecation agreements
C. guarantees
D. bills of exchange
Question 101
The award made by the Lok Adalat is deemed to be a decree of the civil court like arbitration Award.
A. No
B. Yes
C. none
D. none
Question 102
The bank can consider __________________ lien as their protection against loss on loan or overdraft whichwas given to its customers.
A. Special
B. Particular
C. General
D. Lending
Question 103
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
Question 104
The banker has a statutory obligation to________.
A. Honour customers' cheque
B. Exercise lien
C. Maintain secrecy of his customers' accounts
D. Honour customers' bill
Question 105
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
Question 106
The best procedure for opening an account in the name of a minor X and the guardian Y would beunder the style____________.
A. X' Account
B. b'-Account- Minor
C. y' in trust for X
D. y' account
Question 107
The collecting banker is bound to show due care and carefulness in the collection of cheques presentedto him.
A. TRUE
B. FALSE
C. none
D. none
Question 108
The endorsement on the cheque is fictitious and the collecting banker failed to check it the cheque ispaid by the paying banker
A. collecting banker is not protected
B. paying banker is protected
C. collecting banker & paying banker are protected
D. both are not protected
Question 109
The document which can be used only for making local payment is________
A. A cheque
B. A bill of exchange
C. A banker's cheque
D. A draft
Question 110
The following one is a negotiable instrument, negotiable by usage or custom
A. Bill of Exchange
B. Accommodation Bill
C. Promissory Note
D. Share warrant
Question 111
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
Question 112
The litigants are always interested in substantive justice and not procedural justice.
A. TRUE
B. FALSE
C. none
D. none
Question 113
The mortgager transfers the mortgaged property to the mortgagee on the condition that it will beretransferred upon payment of mortgaged money. This is
A. Simple mortgage
B. English mortgage
C. Equitable mortgage
D. mortgage by conditional sale
Question 114
The most important feature of a negotiable instrument is
A. Free transfer
B. Transfer free from defects
C. Right to sue
D. Both A & B
Question 115
The most risky charge from a banker’s point of view is ______?
A. Pledge
B. Hypothecation
C. Mortgage
D. Lien
Question 116
The most undesirable customer is______.
A. A minor
B. A married Woman
C. An unregistered firm
D. An undischarged bankrupt
Question 117
The Negotiable Instruments (Amendment) Bill, 2017 inserted a provision allowing a court trying an offence related to cheque bouncing, to direct the drawer (person who writes the cheque) to pay interim compensation to the complainantThe interim compensation will not exceed ___% of the cheque amount?
A. 15%
B. 25%
C. 30%
D. 20%
Question 118
The paying banker can get protection for a materially altered cheque provided __.
A. The alteration is not apparent.
B. He makes payment in due course.
C. The alteration is immaterial.
D. Both A and B
Question 119
The paying banker is expected to pay the cheque to the genuine payee as per the direction of the drawer.
A. TRUE
B. FALSE
C. none
D. none
Question 120
The paying banker is protected under following SECTION for payment of cheque with forged signatureof the drawer.
A. Sec 89 of N.I act
B. sec 85[1] of N.I act
C. sec 131 of N.I act
D. no protection is available
Question 121
The paying banker should pay the cheque when there is restriction imposed on the payment by the drawer or by the law.
A. TRUE
B. FALSE
C. none
D. none
Question 122
The paying banker who makes cash payment of a cross cheque at the counter shall be liable for the lossof
A. Drawer of the cheque
B. True owner of the cheque
C. Collecting banker
D. the First endorser
Question 123
The payment should be made when the cheques are presented for payment within a reasonable time after being drawn and during banking hours.
A. TRUE
B. FALSE
C. none
D. none
Question 124
In India, the law regulating the Negotiable instruments are
A. Banking Regulation Act 1949
B. Reserve Bank of India Act 1934
C. Negotiable Instruments Act 1881
D. Companies Act 1956
Question 125
The primary relationship between a banker and customer starts from the time.
A. when customer visits that bank
B. when customer opens account
C. when customer visits that bank to made queries
D. All of the above
Question 126
The primary relationship between banker and customer is a __________________ relationship.
A. Mutual
B. Contractual
C. Personal
D. None of the above
Question 127
The rate at which RBI discounts approved bill of exchange is
A. Bank rate
B. Interest rate
C. Exchange rate
D. Discount rate
Question 128
The rate of interest charged for the loan by the banker compared to overdraft and cash credit isgenerally.
A. High
B. Low
C. Same
D. Based on the amount
Question 129
The reasonable period allowed in India for the presentation of a cheque is
A. 1 year
B. 3 months
C. 9 months
D. depending upon custom
Question 130
The relationship between a banker and customer is____________
A. That of a debtor and creditor
B. That of a creditor and debtor
C. Primarily that of a debtor and a creditor
D. (a) and (b) together
Question 131
The Reserve Bank of India is given the responsibility of regulating and supervising the _________under Reserve Bank of India Act, 1934.
A. Insurance Companies
B. Transport Companies
C. Banking Financial Companies
D. Non-Banking Financial Companies
Question 132
The right of set-off customers account can be exercised only by a_____
A. Creditors
B. Debtors
C. Banker
D. Customer
Question 133
The services rendered by a banker as an agent of his customers are called
A. Principal services
B. Agency services
C. General utility services
D. Social services
Question 134
The Short-Term Crop Loan given to Farmers are generally for a period of _____?
A. 3 months
B. 6 months
C. 9 months
D. 12 months
Question 135
The written instructions given by the customers to banker to perform the services like collection and payment of money is noted down in
A. Written Instructions Book
B. Standing Instructions Book
C. Banking Instructions Book
D. Services Instructions Book
Question 136
The written instructions given by the customers to banker to perform the services like collection andpayment of money is noted down in
A. Written Instructions Book
B. Standing Instructions Book
C. Banking Instructions Book
D. Services Instructions Book
Question 137
There is legal obligation for a banker to collect the bills of exchange for its customer.
A. TRUE
B. FALSE
C. none
D. none
Question 138
These days Banks are offering Loans against Property? Under which business segment, this activitymay be categorized?
A. Corporate Banking
B. Personal Banking
C. Merchant Banking
D. Portfolio Management services
Question 139
To constitute a person as a customer______.
A. There must be frequency of transactions
B. There must be a dealing of a banking nature
C. There must be some sort of an account
D. There must be a single transactions of any nature
Question 140
To get protection under Sec 131 of NI Act collecting banker should collect the cheque
A. crossed generally
B. crossed specially
C. 1 or 2
D. crossed a/c payee
Question 141
To get statutory protection, paying banker must make:
A. Payment to a holder
B. Payment to a holder in due course
C. Payment in due course
D. Payment to a drawee in case of need
Question 142
Under Hypothecation charge
A. The ownership and possession of goods are with Bank
B. The ownership is with borrower but possession is with Bank
C. The ownership and possession are with borrower
D. The ownership is with Bank but possession with borrower
Question 143
Under what section of the Banking Regulation Act, 1949 the payments banks are licensed?
A. 22
B. 2
C. 19
D. 11
Question 144
Unstamped document cannot be rectified in case of___________
A. Mortgage deed
B. Sale deed
C. partition deed
D. none of the above
Question 145
The liability of the mortgager is gradually reduced in the case of _______?
A. Equitable mortgage
B. Legal mortgage
C. Usufructuary mortgage
D. Conditional mortgage
Question 146
What do we mean by “ECB” in financial terms?
A. Essential Commercial Borrowings
B. Essential Credit & Borrowings
C. External Credit & Business
D. External Commercial Borrowings
Question 147
What happens if a crossed cheque is presented for payment?
A. It can be paid only through a banker
B. It cannot be paid at all
C. It can be paid across the counter in another bank
D. None of the above
Question 148
What is an impersonal Collateral security?
A. Security in the shape of intangible.
B. Collateral security given by third party.
C. Guarantee provided for securing the death.
D. Collateral security given by the borrower but in the shape of goodwill and trademark.
Question 149
What is pledge:
A. The bailment of goods as security for payment of a debt or performance of a promise
B. The delivery of goods by one person to another for some purpose, upon a contract that they shall, when the purpose is accomplished, be returned or otherwise disposed of according to the direction of the person delivering them
C. A contract by which one party promises to save the other from loss caused to him by the contract of the promisor himself, or by the conduct of any other person
D. A contract to do or not to do something, if some event, collateral to such contract, does or does not happen
Question 150
What is the minimum period of medium and long-term loans?
A. 12 months
B. 18 months
C. 24 months
D. 36 months
Question 151
What is the product of the share price and number of the company's outstanding ordinary shares?
A. Market Capitalization
B. Market Price
C. Market Trend
D. Treasury Stock
Question 152
What is the stamp duty to be paid in respect of any document executed by any banker financialinstitution for issuing a debenture or bond?
A. One rupee for every Rs.100 or part thereof.
B. One rupee for every Rs.1000 or part thereof.
C. It shall be exempted from stamp duty.
D. It depends from State to State.
Question 153
What type of mortgages are used to finance the acquisition of apartment complexes, townhouses, andcondominiums?
A. Commercial mortgages
B. Single family mortgages
C. Farm mortgages
D. Multifamily dwelling mortgages
Question 154
When a financial institution sells a mortgage with recourse, the financial institution retains a credit riskliability in the event the buyer returns the mortgage.
A. TRUE
B. FALSE
C. none
D. none
Question 155
When banker received deposits from the customer, then the banker becomes ______________ of thecustomer.
A. Debtor
B. Creditor
C. Bailee
D. Trustee
Question 156
When customer's account overdrawn or when customer has taken loan from banker, then thecustomer.
A. Creditor
B. Agent
C. Debtor
D. Bailor
Question 157
When financial institutions and banks undertake activities related to banking like investment, issue ofdebit and credit card etc then it is known as _____________________
A. Internet banking
B. Universal banking
C. Virtual Banking
D. Wholesale banking
Question 158
When the cheque is dishonored, the collecting banker is not bound to give notice of the same to hiscustomer within a reasonable time.
A. TRUE
B. FALSE
C. none
D. none
Question 159
Where a person pledges goods in which he has only a limited interest, the pledge is:
A. Invalid to the extent of that interest
B. Entire contract is invalid
C. Valid to the extent of that interest
D. Entire contract is valid
Question 160
Which bank have given the instructions to the commercial banks regarding the immediate credit ofoutstation cheques?
A. Reserve Bank of India
B. Central Bank
C. World Bank
D. All of the above
Question 161
Which banker gets protection under section 85 of Negotiable Instrument Act, 1881?
A. Collecting banker.
B. Paying banker.
C. Issuing banker.
D. Both a and b.
Question 162
Which is India's first Payment bank?
A. PayTM Payments Bank
B. JIO Payment Banks
C. Airtel Payments Banks
D. Fino Payments Bank
Question 163
Which of the following Act refers to the acquisition and transfer of the undertakings of certainbanking companies?
A. Companies Act, 1956
B. Credit Information (Companies Regulation Act, 2005)
C. Banking Companies (acquisition and transfer of undertakings), 1970
D. Banking Regulation Act, 1949
Question 164
Which of the following activities cannot be undertaken by a Payments Bank?
A. Accept deposits
B. Payment of Utility Bills
C. Lending Money
D. None of the above
Question 165
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
Question 166
Which of the following Committee recommended to form a new category of Bank Called PaymentBanks?
A. Gadgil Committee
B. M L Dhantwala Committee
C. Nachiket Mor Committee
D. P J Nayak Committee
Question 167
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
Question 168
Which of the following is a document of the title to the goods?
A. Bill of entry
B. Letter of credit
C. Bill of lading
D. Certificate of origin
Question 169
Which of the following is not a security interest:
A. Any mortgage, charge, hypothecation, assignment or any right, title or interest of any kind, on tangible asset, retained by the secured creditor as an owner of the property, given on hire or financial lease or conditional sale or under any other contract.
B. Such right, title or interest in any intangible asset or assignment or license of such intangible asset which secures the obligation to pay any unpaid portion of the purchase price of the intangible asset or the obligation incurred or any credit provided to enable the borrower to acquire the intangible asset or license of intangible asset
C. A lien on any goods, money or security given by or under the Indian Contracts Act, 1872 or the Sale of Goods Act, 1930 or any other law for the time being in force
D. Lien of goods, pledge of movables, security interest of less than Rs. One Lakh
Question 170
Which of the following is the clearing agency for Government securities?
A. GOI
B. RBI
C. CCIL
D. SEBI
Question 171
Which of the following is the usage of shell companies?
A. To create the appearance of legitimate transaction through false invoice and financial statements.
B. To take loan against securities acquired from black money and paying tax on profit.
C. Both (i) and (ii)
D. None of the above
Question 172
Which of the following is/are false about Dishonour of Cheque? A) Section 138 defines Dishonour of cheque for insufficiency, etc., of funds in the account. B) Such cheque has been presented to the bank within a period of twelve months from the date on which it is drawn or within the period of its validity, whichever is earlier C) Imprisonment for such offence may be extended for period of five year D) Section 138 apply unless – the drawer of such cheque fails to make the payment of the said amount of money to the payee or, as the case may be, to the holder in due course of the cheque, within fifteen days of the receipt of the said notice.
A. (A) and (D)
B. (B) and (C)
C. (B),(C) and
Question 173
Which of the following is/are true about bill of exchange? A) A bill of exchange requires in its inception two parties. B) A bill of exchange or “draft” is a written order by the drawer to the drawee to pay money to the payee. C) Bills of exchange are used primarily in international trade, and are written orders by one person to his bank to pay the bearer a specific sum on a specific date. D) Definition of ‘Bill of Exchange’ is mentioned in Section 6 of the Negotiable Instrument Act.
A. (A) and (D)
B. (A), (B) and (D)
C. (B) and (C)
D. (C) and (D)
Question 174
Which of the following is/are true about the Negotiable Instruments Act, the Promissory Note is ___ A) Definition of Promissory Note is given in section 8 of the Negotiable Instrument Act B) Containing an unconditional undertaking C) To pay a certain sum of money only to a specific person or the bearer D) The seller is bound to accept the promissory note E) A document was written and signed by the payer/maker
A. (A), (B) and (C)
B. (B), (C) and (E)
C. (B), (C), and
Question 175
Which of the following permit cheque operation?
A. Savings bank accounts and fixed deposit accounts
B. Current accounts and fixed deposit accounts
C. Savings bank accounts and cash accounts
D. Savings bank accounts and current accounts
Question 176
Which of the following section in the Negotiable Instruments Act deals with the Bill of Exchange?
A. Section 5
B. Section 6
C. Section 4
D. Section 13
Question 177
Which of the followings are not the Negotiable Instruments as defined by the Statute___
A. Banker’s Note
B. Promissory Note
C. Bill of Exchange
D. Cheques
Question 178
Which one of the following is the most important relationship between banker and customer.
A. Debtor and Creditor
B. Bailee and Bailor
C. Agency and Principal
D. Trustee and Beneficiary
Question 179
Which one of the following is the rate at which the RBI lends money to commercial banks in the eventof any shortfall of funds?
A. Benchmark Prime Lending Rate
B. Annual Percentage Rate
C. Bank Rate
D. Repo Rate
Question 180
Which one of the following is the ratio of the loan principal to the appraised value?
A. Combined Loan To Value: (CLTV) ratio
B. Loan-to-Value Ratio
C. Mortgage Loan
D. Statutory Liquidity Ratio
Question 181
Which one of the following pools money from various investors in order to purchase securities?
A. Fund derivative
B. Money fund
C. Mutual fund
D. Pension fund
Question 182
Which section of Banking Regulation Act 1949 relates with the Power of Reserve Bank to issuedirections in respect of stressed assets?
A. Section 35AA
B. Section 35AB
C. Section 35B
D. Section 35 BB
Question 183
The Three Stages of Money Laundering are:
A. Layering, Placement, Refining
B. Placement, Refining, Integration
C. Layering, Placement, Integration
D. Layering, Refining, Integration
Question 184
Who can file a criminal case against the drawer of a dishonored cheque?
A. The payee
B. The holder in due course
C. Both of the above
D. The paying banker
Question 185
Who has the power to give directions to other Banking Companies?
A. RBI
B. Government of India
C. Registrar
D. Auditor
Question 186
Who is primarily liable on a promissory note?
A. Holder
B. Maker
C. Drawee
D. Endorser
Question 187
Who shall be responsible for furnishing information on modification and satisfaction of security interest:
A. Asset Reconstruction Company or secured creditor
B. Only secured creditor
C. Only the asset reconstruction company
D. Borrower or secured creditor