Q121: The safest form of crossing is___
- A. general crossing
- B. special crossing
- C. double crossing
- D. a/c payee crossing
Answer
Answer D. a/c payee crossing
Q122: Endorsement signifies that the___
- A. endorser has got a good title
- B. endorsers signature is genuine
- C. previous endorsements are genuine
- D. All of the above
Answer
Answer D. All of the above
Q123: 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. i & ii together
Answer
Answer D. i & ii together
Q124: Banking regulation act was passed in the year___
- A. 1934
- B. 1946
- C. 1949
- D. 1948
Answer
Answer C. 1949
Q125: A cheque with Not negotiable crossing___
- A. cannot be negotiated
- B. can be negotiated and the endorsee title is not affected in any case
- C. can be negotiated but the holder of the cheque will not have title better than that of the person from whom he took it
- D. is always deemed as crossed specially
Answer
Answer C. can be negotiated but the holder of the cheque will not have title better than that of the person from whom he took it
Q126: Expansion of ICICI
- A. Industrial Credit and Investment Corporation of India
- B. Industrial Credit and Investment Company of India
- C. Industrial Credit and Investment Co-operation of India
- D. Industrial Credit and Insurance Corporation Of India
Answer
Answer A. Industrial Credit and Investment Corporation of India
Q127: The consumer Credit Bureau covers credit availed by___
- A. individuals
- B. private and public limited companies
- C. proprietary concerns
- D. banks
Answer
Answer A. individuals
Q128: The relationship between a banker and a customer is___
- A. that of a debtor and creditor
- B. that of a creditor and a debtor
- C. primarily that of a debtor and a credit
- D. that of a debtor and agent
Answer
Answer C. primarily that of a debtor and a credit
Q129: For issuing a duplicate demand draft, the purchaser is required to submit?
- A. Guarantee of a third party
- B. Collateral security
- C. Indemnity bond
- D. Undertaking from the payee
Answer
Answer C. Indemnity bond
Q130: The relationship between the hirer of a locker and banker is that___
- A. principal and agent
- B. lessee and lessor
- C. debtor and creditor
- D. pledge and pledger
Answer
Answer C. debtor and creditor
Q131: A debit card holder makes payment for purchases___
- A. After 15 days
- B. After 20 days
- C. After a month
- D. Immediately through his account
Answer
Answer D. Immediately through his account
Q132: Credit information report contains___
- A. a recommendation
- B. a guarantee about repayment
- C. for taking credit decisions
- D. for underwriting the shares of the borrower company
Answer
Answer C. for taking credit decisions
Q133: REPO facility means___
- A. borrowing of money without security
- B. borrowing on the basis of guarantee
- C. borrowing against term loans
- D. borrowing against securities on repurchase basis
Answer
Answer D. borrowing against securities on repurchase basis
Q134: Aggregate capital market exposure for banks is prescribed as 40 per of___
- A. net worth
- B. aggregate time and demand liabilities
- C. total investments
- D. total assets of a banking company
Answer
Answer A. net worth
Q135: Expansion of SBI
- A. State Bank of India
- B. Securities Bank of India
- C. Stock Broking of India
- D. Society Bank of India
Answer
Answer A. State Bank of India
Q136: Who can cancel the crossing on a cheque?
- A. The payee
- B. The paying banker
- C. The endorser
- D. The drawer
Answer
Answer D. The drawer
Q137: Which is not possible for the payee of a cheque?
- A. To convert a bearer cheque into an order cheque
- B. To convert an open cheque in to a crossed cheque
- C. To convert general crossing into special crossing
- D. To make a specially crossed cheque into generally crossed cheque
Answer
Answer D. To make a specially crossed cheque into generally crossed cheque
Q138: 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
Answer
Answer D. the cheque bears more than two endorsements
Q139: The acceptor for honour___
- A. Does not bear any liability as he is not a party to the bill
- B. Bears the liability similar to the person for whose honour he accepts the bill
- C. Acts as a surety to the drawee
- D. Bears no liability
Answer
Answer B. Bears the liability similar to the person for whose honour he accepts the bill
Q140: The cause of dishonour of cheque much be___
- A. forget signature of drawer
- B. incomplete cheque
- C. insufficiency of funds in the account
- D. any material alteration
Answer
Answer C. insufficiency of funds in the account
Q141: The deposit with the bank for a fixed period which is specified at the time of making the deposit is called___
- A. saving deposit
- B. current deposit
- C. bank deposit
- D. fixed deposit
Answer
Answer D. fixed deposit
Q142: The minimum period for which a commercial bank can accept term deposit is __
- A. 7 days
- B. 15 days
- C. 30 days
- D. 60 days
Answer
Answer A. 7 days
Q143: Interest on fixed deposits is compounded___
- A. monthly
- B. quarterly
- C. half yearly
- D. yearly basis
Answer
Answer B. quarterly
Q144: A banker should not stop operation of the account if the customer___
- A. dies
- B. becomes insolvent
- C. changes his business premises
- D. becomes insane
Answer
Answer C. changes his business premises
Q145: Floating rate of interest is the rate which is___
- A. decided by the bank arbitrarily
- B. linked with another relevant rate
- C. fixed by the Indian bank’s association
- D. notified by the reserve bank of India
Answer
Answer B. linked with another relevant rate
Q146: MICR refers to___
- A. Magnetic Ink Character Recognition
- B. Magnetic Ink Company Recognition
- C. Magnetic Ink Cross Recognition
- D. Magnetic Ink Community Recognition
Answer
Answer A. Magnetic Ink Character Recognition
Q147: If the endorser signs his name only the endorsement is said to be___
- A. Endorsement in blank
- B. Endorsement in full
- C. Conditional endorsement
- D. restricted endorsement
Answer
Answer B. Endorsement in full
Q148: Expansion of SWIFT is___
- A. Society for worldwide interbank financial telecommunication
- B. Security for worldwide interbank financial telecommunication
- C. Secured for worldwide interbank financial telecommunication
- D. Safety for worldwide interbank financial telecommunication
Answer
Answer A. Society for worldwide interbank financial telecommunication
Q149: Discounting of bills of exchange is___
- A. clean advance
- B. secured advance
- C. neither clean advance nor secured advance
- D. unsecured advance
Answer
Answer C. neither clean advance nor secured advance
Q150: The right of set – off is nothing but a___
- A. right to sell
- B. right to retain
- C. right to combine
- D. right to appropriate
Answer
Answer C. right to combine
Q151: According to IBA the maximum period for which fixed deposits can be obtained is___
- A. no limit
- B. 5 years
- C. 7 years
- D. 10 years
Answer
Answer C. 7 years
Q152: A pledge can be made in respect of___
- A. building
- B. shares
- C. motor car
- D. book debts
Answer
Answer B. shares
Q153: A collecting banker is given the statutory protection only when he acts as___
- A. a holder
- B. an agent
- C. a holder for value
- D. a holder in due course
Answer
Answer D. a holder in due course
Q154: The law of limitation applies to a saving deposit account from the date of___
- A. opening it
- B. closing it
- C. demanding it
- D. operating it
Answer
Answer A. opening it
Q155: The most liquid asset is___
- A. gold
- B. bill of exchange
- C. government bonds
- D. cash
Answer
Answer D. cash
Q156: ___is a dead cheque
- A. Post-dated cheque
- B. Stale cheque
- C. Ante dated cheque
- D. Pre dated cheque
Answer
Answer B. Stale cheque
Q157: The best suited deposit for trading community is___
- A. Savings deposit
- B. Current deposit
- C. Fixed deposit
- D. RD
Answer
Answer B. Current deposit
Q158: Which is a private bank?
- A. SBI
- B. UTI
- C. IOB
- D. Indian bank
Answer
Answer B. UTI
Q159: RBI refers to___
- A. Reserve Bank of India
- B. Revenue Bank of India
- C. Rupee Bank of India
- D. Regional Bank of India
Answer
Answer A. Reserve Bank of India
Q160: Name the person to whom the amount of the cheque is payable?
- A. Drawer
- B. Payee
- C. Drawee
- D. Acceptor
Answer
Answer C. Drawee
