question_answer 1)
A working group on cheque transactions and E-cheques was constituted by the Reserve Bank of India under the chairmanship of Dr R B Barman and major recommendations of group include
A)
the physical cheque will be truncated within the presenting bank done
clear
B)
settlement will be generated on the basis of current MICR code line data done
clear
C)
electronic images, will be used for payment processing done
clear
D)
All of these done
clear
E)
None of these done
clear
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question_answer 2)
Which of the following is a primary function of banks?
A)
Collection and payment of cheques, rent, interest etc on behalf of their customers done
clear
B)
Buying, selling and keeping in safe custody, the securities on behalf of their customers done
clear
C)
Acting as trustee and executors of the property of their customers on their advice done
clear
D)
Remitting money from one place to the other through bank drafts or mailor telegraphic transfers done
clear
E)
Accepting deposits done
clear
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question_answer 3)
Section 131 of Negotiable Instrument Act, 1881 extends protection to the
A)
paying banker done
clear
B)
collecting banker done
clear
C)
advising banker done
clear
D)
issuing banker done
clear
E)
All of these done
clear
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question_answer 4)
Which of the following statements is incorrect about negotiable instruments?
A)
Pay A or Order done
clear
B)
Pay to Order to A done
clear
C)
Pay A and B done
clear
D)
Pay A only done
clear
E)
Pay Bearer done
clear
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question_answer 5)
Which of the following is not a negotiable instrument?
A)
Promissory note done
clear
B)
Bill of exchange done
clear
C)
Cheque done
clear
D)
Bank draft done
clear
E)
Share certificate done
clear
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question_answer 6)
Which of the following is not the essential requirement for the endorsement as per Negotiable Instrument Act, 1881?
A)
It should be on the instrument done
clear
B)
It should be made by the holder or the maker done
clear
C)
Signatures should be in ink and not by pencil or rubber stamp done
clear
D)
It should contain unconditional order done
clear
E)
The endorser should sign the endorsement in the same style and with the same spellings as written in the instrument done
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question_answer 7)
Under the Negotiable Instrument Act, 1881, an instrument which is incomplete in some respects, is called a/an
A)
foreign instrument done
clear
B)
inland instrument done
clear
C)
inchoate instrument done
clear
D)
ambiguous instrument done
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E)
fictitious instrument done
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question_answer 8)
All of the following are examples of Quasi negotiable instruments, under the Negotiable Instrument Act, 1881, except
A)
dividend warrants done
clear
B)
share warrants done
clear
C)
bearer debentures done
clear
D)
promissory note done
clear
E)
None of these done
clear
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question_answer 9)
Transfer of any instrument to another person by signing on its back or face or on a slip of paper attached to it is known as
A)
promissory note done
clear
B)
bill of lading done
clear
C)
bill of exchange done
clear
D)
endorsement done
clear
E)
None of these done
clear
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question_answer 10)
Which of the following statements is correct about promissory note?
A)
It need not be in writing done
clear
B)
An implied promise is enough to constitute a valid promissory note sanKing in inaia done
clear
C)
The promise to pay must be definite and unconditional done
clear
D)
The name of the payee need not be mentioned done
clear
E)
The payment can be in kind done
clear
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question_answer 11)
The banker is under an obligation to take utmost care in keeping secrecy of the details of the customer. However, the obligation of secrecy is not considered essential when
A)
a banker is required to give evidence in the court done
clear
B)
there is national emergency and disclosure is essential in the public interest done
clear
C)
there are clear proofs of reason to the state and when consent is given by the customer to provide information for the preparation of balance sheet done
clear
D)
All of the above done
clear
E)
None of the above done
clear
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question_answer 12)
Regional Rural Bank was promulgated in
A)
1975 done
clear
B)
1974 done
clear
C)
1970 done
clear
D)
1976 done
clear
E)
1973 done
clear
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question_answer 13)
The first regional rural bank was
A)
Prathama Grameen Bank done
clear
B)
Allahabad UP Gramin Bank done
clear
C)
Arunachal Pradesh Rural Bank done
clear
D)
Assam Gramin Vikash Bank done
clear
E)
None of these done
clear
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question_answer 14)
Which of the following is/are correct about Cooperative Banks?
A)
They are organised under the provisions of the Cooperative Credit Societies Act. done
clear
B)
The major beneficiary of the Cooperative Banking is the agricultural sector. done
clear
C)
The cooperative credit institutions are of agricultural and non-agricultural type. done
clear
D)
All of these done
clear
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question_answer 15)
The Banking Ombudsman Scheme was introduced under:
A)
Banking Regulation Act, 1935 done
clear
B)
Banking Regulation Act /1949 done
clear
C)
Banking Regulation Act, 1985 done
clear
D)
Banking Regulation Act, 1998 done
clear
E)
None of these done
clear
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question_answer 16)
Banking Ombudsman is appointed for
A)
handling and redressal of banks complaints against customers' behaviour done
clear
B)
handling and redressal of customers' complaints against deficiency in certain banking services done
clear
C)
providing decision on important banking operations like - CRR, SLR and MSF etc. done
clear
D)
All of the above done
clear
E)
None of these done
clear
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question_answer 17)
Name the body of 'eminent' professionals and officials, which will replace the Appointments Board for appointment of Whole-time Directors as well as non- Executive Chairman of Public Sector Banks.?
A)
NITI Aayog done
clear
B)
NIYATAM done
clear
C)
Bank Board Bureau done
clear
D)
Bureau of Banking Standards done
clear
E)
None of these done
clear
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question_answer 18)
CAMELS Rating is
A)
A credit rating by Credit Rating Agencies done
clear
B)
A credit information report by Credit Information Bureaus done
clear
C)
A supervisory rating for banks or financial institutions by financial market regulator done
clear
D)
All of the above done
clear
E)
None of these done
clear
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question_answer 19)
Which of the following focuses on the financial needs of the institutional clients and the industry?
A)
Universal banking done
clear
B)
Virtual Banking done
clear
C)
Internet banking done
clear
D)
Wholesale banking done
clear
E)
None of these done
clear
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question_answer 20)
The first Basel Concordat was concerned with
A)
The possibility that third world countries might renege on their debts done
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B)
The division of responsibilities among national supervisory authorities done
clear
C)
The capital adequacy of banks done
clear
D)
The off-balance-sheet activities of banks done
clear
E)
None of these done
clear
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question_answer 21)
Which of the following is/are to be followed by Commercial Banks for risk management?
A)
Basel II norms done
clear
B)
Basel III norms done
clear
C)
Basel I norms done
clear
D)
Solvency II norms done
clear
E)
None of these done
clear
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question_answer 22)
'Basel Committee on Banking Supervision' is also known as
A)
Bank for International Settlements Committee done
clear
B)
Banking Regulation Committee done
clear
C)
Financial Stability Board done
clear
D)
Global Financial System done
clear
E)
None of these done
clear
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question_answer 23)
Suppose that machinery used by Bank- Twenty for sorting and clearing checks breaks down. This is a manifestation of
A)
Credit risk done
clear
B)
Insolvency risk done
clear
C)
Liquidity risk done
clear
D)
Operational risk done
clear
E)
None of these done
clear
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question_answer 24)
Co-operative banks
A)
cannot create credit. done
clear
B)
are of 'unit banking' type. done
clear
C)
cannot mobilize deposits. done
clear
D)
both [b] and [c] done
clear
E)
None of these done
clear
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question_answer 25)
Which of the following is/are correct about Banking Codes and Standards Board of India?
A)
It was formed on the recommendation by the RBI. done
clear
B)
It was set up on February 18, 2006. done
clear
C)
It was registered as a society under the Societies Registration Act, 1860 in February 2006. done
clear
D)
All of the above done
clear
E)
None of these done
clear
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question_answer 26)
The liquidity risk informs about a firm's
A)
Ability to satisfy all future obligations done
clear
B)
Historical growth rates done
clear
C)
Profitability done
clear
D)
All of the above done
clear
E)
None of these done
clear
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question_answer 27)
What does liquidity mean?
A)
It means how cash is converted into gold. done
clear
B)
It means how cheaply and quickly an asset is converted into cash. done
clear
C)
It means how cash is converted into SDR (Special Drawing Rights). done
clear
D)
It means how uncertain the money market conditions are. done
clear
E)
None of these done
clear
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question_answer 28)
Who will settle the grievances of customers of banks?
A)
Reserve Bank of India done
clear
B)
State Bank of India done
clear
C)
Local Courts done
clear
D)
Ombuds Men done
clear
E)
Governor of RBI done
clear
F)
None of these done
clear
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question_answer 29)
Who introduced the Banking Ombudsmen Scheme?
A)
ARBI done
clear
B)
SBI done
clear
C)
Ministry of Finance done
clear
D)
NABARD done
clear
E)
None of these done
clear
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question_answer 30)
When was Ombuds Men Scheme first introduced?
A)
November 2006 done
clear
B)
October 1981 done
clear
C)
June 1995 done
clear
D)
January 1998 done
clear
E)
July 1996 done
clear
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question_answer 31)
One of the major challenges banking industry is facing these days is money laundering. Which of the following acts/ norms are launched by the banks to prevent money laundering in general?
A)
Know Your Customer Norms done
clear
B)
Banking Regulation Act done
clear
C)
Negotiable Instrument Act done
clear
D)
Narcotics and Psychotropic Substance Act done
clear
E)
None of these done
clear
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question_answer 32)
A bank is under a statutory obligations to honour its customer's cheques vide
A)
Section 10 of the Banking Regulation Act, 1949 done
clear
B)
Section 3 of the RBI Act, 1934 done
clear
C)
Section 31 of the Negotiable Instruments Act, 1881 done
clear
D)
All of the above done
clear
E)
None of these done
clear
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question_answer 33)
Whenever some people wish to enter into the business world, it is a must for them to approach a bank. What services do banks provide them in this regard?
I. Banks act as payment agents by operating current accounts, paying cheques and receiving payments for them. II. Maintaining account books for them for their day-to-day activities, so that they are not required to appoint account/finance personnel on a regular basis. III. Lending money by way of overdraft, instalment loan, credit or advance for business activities.
Select the correct answer using the codes given below:
A)
Only I done
clear
B)
Only II done
clear
C)
Only III done
clear
D)
I and III done
clear
E)
All of these done
clear
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question_answer 34)
Which of the following types of institutions operate in the call money market only as lender?
A)
Commercial banks done
clear
B)
Primary dealers done
clear
C)
Insurance companies done
clear
D)
SBI done
clear
E)
None of these done
clear
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question_answer 35)
The legal relationship between a bank and its customer is a kind of
I. debtor and creditor. II. principal and agent. III. pledger and pledgee. IV. mortgagor and mortgage.
Select the correct answer using the codes given below:
A)
I and III done
clear
B)
I, III and IV done
clear
C)
I, II, III and IV done
clear
D)
I and II done
clear
E)
I, II and III done
clear
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question_answer 36)
Many times, we hear about the 'Banking Ombudsman'. What is/are the major roles of same?
I. Banking Ombudsman is a quasi-judicial authority having powers to summon, the banks and the customers both in case of dispute. II. The Banking Ombudsman are appointed by the President of India and are retired judges of the High or Supreme Courts. III. The decisions/judgements given by the Banking Ombudsman cannot be taken to any court of justice as their decisions are last in case of bank related problems disputes.
Select the correct answer using the codes given below
A)
Only I done
clear
B)
Only II done
clear
C)
Only III done
clear
D)
All of these done
clear
E)
None of these done
clear
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question_answer 37)
Banking Ombudsman Scheme is applicable to the business of
A)
all scheduled commercial banks excluding RRBs done
clear
B)
all scheduled commercial banks including RRBs done
clear
C)
only public sector banks done
clear
D)
all banking companies done
clear
E)
all scheduled banks except private banks done
clear
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question_answer 38)
Money laundering normally involved
A)
placement of funds done
clear
B)
layering of funds done
clear
C)
integrating of fund done
clear
D)
All of the above done
clear
E)
None of these done
clear
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question_answer 39)
Banker-Customer relationship is often considered a fiduciary one. What is this relation based on?
A)
Contract done
clear
B)
Faith done
clear
C)
Commercial done
clear
D)
Agent and principal done
clear
E)
None of these done
clear
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question_answer 40)
A banker is expected to honour the cheques within the specified banking hours as per section of Negotiable Instrument Act, 1881.
A)
22 done
clear
B)
25 done
clear
C)
30 done
clear
D)
45 done
clear
E)
65 done
clear
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question_answer 41)
Which of the following is not a part of the scheduled banking structure in India?
A)
State co-operative banks done
clear
B)
Public sector banks done
clear
C)
Private sector banks done
clear
D)
Regional rural banks done
clear
E)
Moneylenders done
clear
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question_answer 42)
Which of the following statements is correct about soiled/mutilated note?
A)
All banks are authorised to accept soiled notes across their counters and pay the exchange value done
clear
B)
Banks are expected to offer this service even to non-customers done
clear
C)
All public sector bank branches and currency chest branches of private sector banks are authorised to adjudicate and pay value in respect of mutilated notes done
clear
D)
The RBI has also authorised all commercial bank branches to treat certain notes in 'two pieces' as soiled notes and pay exchange value done
clear
E)
All of the above done
clear
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question_answer 43)
Your bank's customer XYZ enjoys a CC limit of Rs. 100000. The CC account shows a credit balance of 10205. The relationship between your bank and XYZ limited is
A)
debtor/creditor done
clear
B)
creditor/debtor done
clear
C)
bailor/bailee done
clear
D)
bailee/bailor done
clear
E)
None of these done
clear
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question_answer 44)
In case, a depositor wishes to withdraw his fixed deposits prematurely, banks
A)
do not allow the same till maturity of the deposits done
clear
B)
charge a penalty for the same done
clear
C)
do not charge any penalty and allow the same done
clear
D)
All of the above done
clear
E)
None of these done
clear
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question_answer 45)
Which of the following is/are the rights of customer towards his banker?
A)
To receive a statement of his account from a banker done
clear
B)
To sue the bank for any lose and damages done
clear
C)
To sue the banker for not maintaining the secrecy of his account done
clear
D)
All of the above done
clear
E)
None of these done
clear
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question_answer 46)
Which one is true in respect of bank marketing?
A)
Bank marketing deal with providing services to satisfy customer's financial needs and wants. done
clear
B)
Bank marketing has to discover/ ascertain/anticipate the financial needs of the corporates. done
clear
C)
Bank marketing may be required to satisfy the corporates and institutions, other related needs and wants. done
clear
D)
Bank marketing means competitive element, efficiency and effectiveness in the process. done
clear
E)
None of these done
clear
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question_answer 47)
SWIFT is a network for banks to exchange information. What is the expanded form?
A)
Safe window for international transactions done
clear
B)
Secured worldwide international transactions done
clear
C)
Society for worldwide interbank financial telecommunications done
clear
D)
All of the above done
clear
E)
None of these done
clear
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question_answer 48)
Which of the following is the drawee bank in respect of a cheque?
A)
The payee's bank done
clear
B)
The bank which collects the cheque done
clear
C)
The bank on which the cheque is drawn done
clear
D)
The endorsee's bank done
clear
E)
None of these done
clear
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question_answer 49)
Who is a banking ombudsman?
A)
The chief vigilance officer of a bank done
clear
B)
The chairman of a bank done
clear
C)
An official in the Finance Ministry, Government of India done
clear
D)
An independent authority appointed by RBI to address customer complaints done
clear
E)
None of these done
clear
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question_answer 50)
The co-operative credit societies have a
A)
two-tier structure done
clear
B)
three-tier structure done
clear
C)
four-tier structure done
clear
D)
five-tier structure done
clear
E)
None of these done
clear
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