Your IIBF Sample Question Results Results Summary Elapsed Time: Timer Not Started Total Marks: 540

Obtained Marks: 0 Percentage: 0 Result : Failed 1. In deposits accounts the main relationship between bank and customer is: A.creditor bank, debtor customer B.debtor bank, creditor customer C.agent - principal D.servant - owner E.only a and b The Correct Answer is : B.debtor bank, creditor customer You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 2. When a bank lends money to the corporate person the relationship is: A.borrower and lender B.creditor debtor C.debtor - creditor D.customer and client The Correct Answer is : B.creditor debtor You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 3. Bailor bailee relationship is applicable in: Marks: 2+ 1-

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A.cash deposited with cashier by customer B.safe deposits locker C.demand draft issued by bank D.keeping articles in safe custody with bank E.none of above The Correct Answer is : D.keeping articles in safe custody with bank You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 4. what relationship is created when the bank collects a cheque in clearing. A.holder for value B.clearing member and principle. C.agent and principle D.collecting bank and holder E.none of above The Correct Answer is : D.collecting bank and holder You did not answer the question. Explanation : undefined

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Module : Module B Chapter : Chapter1 5. when any FDR is lost by a customer of a bank, what document is executed:

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A.guarantee bond B.government bond C.promissory bond D.indemnity bond E.none The Correct Answer is : D.indemnity bond You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 6. A credit voucher for Rs.44,444 favouring Tarun was wrongly posted to Varun Bose by the bank, the relationship established with Varun Bose is of: Marks: 2+ 1A.trustee and beneficiary B.debtor and guarantor C.creditor and indemnifier D.creditor and debtor E.none The Correct Answer is : D.creditor and debtor You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 7. Mr nanhe has a bank account and credited RS 20 lakh in it subsequently he has arrested on charges of fraud. the police informed the bank for not allowing withdrawals from his account. Two days later, bank receives a cheque of RS 15000 favoring Nehas creditor. What should the bank do Marks: 2+ 1A.not to pay cheque B.return cheque with memo stating A/c holder in jail C.honour the cheque D.get police orders for payment E.get court orders for payment The Correct Answer is : C.honour the cheque You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 8. Account holder X draws a cheque for Rs.5,000 favouring Rajesh (a minor aged 13 years) or dearer. Rajesh presents the cheque on counter duly signed on the back. What should the banker do with the Cheque of a minor? Marks: 2+ 1A.refuse, since no contractual capacity B.pay the cheque after inquiring with X C.pay to Rajesh without any responsibility of bank D.ask Rajesh to bring his parents ESection 26 N.I. Act 1881, does not allow minor to receive payment. The Correct Answer is : C.pay to Rajesh without any responsibility of bank You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 9. Cheque drawn for Rajkumar or order is stolen. The thief made endorsement as Rajkumar on the cheque in his favour. The cheque is presented in clearing and paid by bank. True owner later on sent legal notice to bank. What is the liability of the bank?

Marks: 2+ 1A.the paying bank will get protection under N.I. Act B.forgery does not give any rights to bank, hence liable C.under section 85, the paying bank is liable D.under section 131, the paying bank is liable. The Correct Answer is : A.the paying bank will get protection under N.I. Act You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 10. After close of business hours by 1.30 hrs, the account holder himself availed payment. At 4.15 p.m. (after close of 1.45 hrs) income tax attachment order is received by bank. What would be the liability of paying bank? Marks: 2+ 1A.payment is made in due course and as payment is debitable next day, bank is protected B.payment is not in due course since paid after reasonable time ( i. e. 1.30 hrs late for today) C.attachment order will be effective after banks right of lien over the late payment D.bank should approach the customer to get the order changed to next day. The Correct Answer is : B.payment is not in due course since paid after reasonable time ( i. e. 1.30 hrs late for today) You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 11. Ritesh issued a cheque at 3:30 p.m. (one hour after close of business hours of the bank) to Shubha approached to the bank and on request paid the money at 4:00 p.m. as late payment; Ritesh arrived to the bank and stopped payment of cheque issued to shubha at 4:30 p.m. on the same day. Who is liable for loss? Marks: 2+ 1A.(a) payment after Business Hours is not a payment in due Course hence bank is liable, Section 10 N.I. Act B.Payment even though after business hours but within banking hours is protected under Section 31 C.Payment late for today is protected under Section 85 D.Refused to accept stop payment instructions since late for today. The Correct Answer is : A.(a) payment after Business Hours is not a payment in due Course hence bank is liable, Section 10 N.I. Act You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 12. Section 131 of N.I. Acts gives protection for collection of Marks: 2+ 1A.Bills of Exchange B.Promissory Note C.Hundis D.Cheque E.All the above The Correct Answer is : D.Cheque You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 13. Rajkumar wants a demand draft striking the word Order and writing the word Bearer. Can bank help him ?

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A.Bearer Draft is unlawful under section 31 of RBI B.Bearer Draft can be issued like a cheque C.Signature of the payee should be attested on the back of draft by the issuing branch D.Attestation of the signature of the payee on a separate slip of paper by bank (without striking out the word Order on draft)

The Correct Answer is : D.Attestation of the signature of the payee on a separate slip of paper by bank (without striking out the word Order on draft) You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 14. A draft purchased is reported lost and the purchaser wants to stop the payment of the draft. Can the Bank do it? Marks: 2+ 1A.Bank cannot stop payment since it is a promissory note B.Bank can stop payment since covered under negotiable instrument. C.Bank can ask the purchaser to suffer for negligence and bank cannot help D.Bank would issue stop payment instructions only after two weeks from date of issue. The Correct Answer is : A.Bank cannot stop payment since it is a promissory note You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 15. Discuss the essential conditions for right of set off to the bank. Marks: 2+ 1A.Money transactions B.Both the accounts in the same name and rights C.implied agreement to keep the accounts distinct and separate. D.All of the above E.None of the above The Correct Answer is : D.All of the above You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 16. Objectives of KYC Marks: 2+ 1A.to ensure appropriate customer identification B.to monitor transactions of suspicious nature C.to ensure that he / she would not deceive the bank. D.if loan given it would not be a NPA E.only (a) & (b) The Correct Answer is : E.only (a) & (b) You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 17. Sources of credit informations Marks: 2+ 1A.informations on visit to business premises B.On interview with borrower and from documents submitted C.Informations on visit to business premises D.All of above E.Only (b) & (c) The Correct Answer is : D.All of above You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 18. What qualitative information are available from loan proposals?

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A.Personal history of achievements health and interpersonal relationship with family B.professional skills and qualifications, details of heirs and successors. C.Track record business reputation , behaviour patterns for managerial skill and bearing capacity D.All of above E.Only (c) The Correct Answer is : D.All of above You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 19. Quantitative informations available from loan proposal are: Marks: 2+ 1A.personal assets and liabilities of the borrower B.details of expenses / and resources for meeting the margin C.only (a) & (b) D.None of above The Correct Answer is : C.only (a) & (b) You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 20. Demand Deposits are those which can be withdrawn: Marks: 2+ 1A.On Request B.On Sanction by Manager C.On Demand D.On Persuasion The Correct Answer is : C.On Demand You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 21. Current accounts Deposits are not entitled to_________

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A.Cheque book above 100 to leaves B.Monthly Statements C.Cash Payment D.Interest E.All of the above The Correct Answer is : D.Interest You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 22. in saving account deposits interest is paid on ________ balance in the account between 10th to last day of month. 1A.Maximum B.Average C.Minimum D.Last Balance at the end of month The Correct Answer is : C.Minimum You did not answer the question. Explanation : undefined

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Module : Module B Chapter : Chapter1 23. Merchant bankers are:

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A.Financial Brokers B.Financial intermediaries C.Credit Appraisers D.Underwriters E.All of the above The Correct Answer is : B.Financial intermediaries You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 24. Merchant bankers activity relate to: Marks: 2+ 1A.Equity and equity related finance B.Debt and Debt related finance C.Fund Business D.Non-Fund business E.None of the above The Correct Answer is : A.Equity and equity related finance You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 25. Advantages of Lease Financing Marks: 2+ 1A.Alternative use of funds B.Arrangement for faster and cheaper credit C.Increased capacity to borrow Lessee D.Trading on Tax Shield E.All of above The Correct Answer is : E.All of above You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 26. Disadvantage of Leasing Marks: 2+ 1A.Deprivation of asset ownership B.Deprivation of asset in case of default C.Attachment on owner going insovent D.None of the above E.All of a to c The Correct Answer is : D.None of the above You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 27. Advantage of Factoring service to customers A.Responsibility of collecting sales dues B.Absolve of sales ledger administration C.Absolve from Bad debts

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D.Quicker payments by clients E.All of above The Correct Answer is : E.All of above You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 28. Limitation of Factoring Marks: 2+ 1A.Over trading B.Manipulation in invoices C.Not suitable to SMEs D.Companies with few Debtors E.All of the above The Correct Answer is : E.All of the above You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 29. Advantages of Factoring as a financial tool / facility

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A.Flexible finance through up-front payment B.Obtaining off-balance sheet finance C.Payment to suppliers more promptly for higher credit reputation D.All of the above E.None of the above The Correct Answer is : D.All of the above You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 30. Disadvantages to Credit Card holders Marks: 2+ 1A.Over Spending Debt Trap B.Frauds due to loss or theft of cards C.Forged signatures D.Forged Charge slips E.All of above The Correct Answer is : D.Forged Charge slips You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 31. Line is a/an _______ of the creditor to retain possession. A.right B.obligation C.instrument D.interest The Correct Answer is : A.right You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2

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32. Particular Lien gives the creditor right to retain ______ increase the expenses incurred are not last A.all goods B.ordered goods C.some goods / securities D.specific goods / securities The Correct Answer is : D.specific goods / securities You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 33. Bankers Lien is an / a _______ Marks: 2+ 1A.bailment of goods B.implied pledge C.agreement D.an stoppage The Correct Answer is : B.implied pledge You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 34. Bankers Lien is not applicable in case of ____________

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A.Safe Custody B.Securities left negligently C.All of above D.none The Correct Answer is : C.All of above You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 35. Right to combine two accounts by banks is called __________ A.Garnishee B.Lien C.Set-off D.Rating The Correct Answer is : C.Set-off You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 36. The right of set-off is __________

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A.Customers right B.Bankers right C.Banks discretion D.Payees right The Correct Answer is : C.Banks discretion You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2

37. Garnishee order is issued by __________ A.Police Officer B.Revenue Officer C.C.I.D. D.Courts of Law The Correct Answer is : D.Courts of Law You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 38. Attachment order is issued by __________

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A.Income Tax Officer B.Sales Tax Officer C.(i) and (ii) combined D.Public Debt Officer The Correct Answer is : C.(i) and (ii) combined You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 39. Mandate is a ________ agreement. Marks: 2+ 1A.Stamped B.Unstamped C.Memorandum D.Letter The Correct Answer is : B.Unstamped You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 40. Power of attorney can be _______. Marks: 2+ 1A.Universal B.Limited C.both (i) & (ii) D.Calculated The Correct Answer is : C.both (i) & (ii) You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 41. Person to whom a power of attorney is given is called ________ And who gives it is called _______ A.Debtor-Creditor B.Baior-Bailee C.Pawner-Pawnee D.Donor-Donee The Correct Answer is : D.Donor-Donee You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2

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42. Payment in due course means

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A.Payment on due date B.Payment in accordance with apparent tenor C.Payment in accordance with apparent signature and specimen D.Payment due to sufficient funds. The Correct Answer is : B.Payment in accordance with apparent tenor You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter3 43. Payment of cheques are governed by sections under N.I.Act Marks: 2+ 1A.Section 10/31/85/126 B.Section 15/16/17/131 C.Section 131/138/147/142 D.None of these E.All of (i) to (iv) The Correct Answer is : A.Section 10/31/85/126 You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter3 44. The liability of drawee of cheque is Marks: 2+ 1A.Sufficient funds B.Property applicable for payment C.Required to do so without default D.All of above E.None The Correct Answer is : D.All of above You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter3 45. Duties of paying banker of crossed cheques are

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A.Crossed cheques B.Collection on behalf of customers C.Payment in good faith and without negligence D.None of above The Correct Answer is : C.Payment in good faith and without negligence You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter3 46. Promissory Notes / Bill of Exchange and Cheque are defined as ___________ A.Trust Receipts B.Judicial documents C.Negotiable instruments D.documents of title to goods The Correct Answer is : C.Negotiable instruments You did not answer the question. Explanation : undefined

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Module : Module B Chapter : Chapter3 47. Cheque is payable on _______

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A.Demand B.Usance C.Fixed future date D.After Sight The Correct Answer is : A.Demand You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter3 48. Crossing is a direction to the _______ bank to pay the cheque to the payee through a bank. A.Drawer B.Payee C.Paying D.Passing E.Collecting The Correct Answer is : C.Paying You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter3 49. The crossing in a crossed cheque can be cancelled by _______ A.Drawer B.Drawee C.Endorser. D.Acceptor E.Bank The Correct Answer is : A.Drawer You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter3 50. Acts done honestly is called acts done ______

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A.Without negligence B.Rashly C.Mollified D.In good faith E.Honourly The Correct Answer is : D.In good faith You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter3 51. Mere signature of the payee on the reserve of the instrument is called ________ endorsement. A.Full B.Partia C.Conditional D.Restrictive E.Blank

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The Correct Answer is : E.Blank You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter3 52. Sans recourse means _________.

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A.Without fear B.Without physical touch C.Without liability to me D.Without liability to payee The Correct Answer is : C.Without liability to me You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter3 53. A bank on whom a cheque is drawn by the customer is _______ A.Collecting bank B.Paying bank C.Advising bank D.Issuing bank E.Confirming The Correct Answer is : C.Advising bank You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter3 54. Section 131 of N.I. Act extends protection to the ________

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A.Collecting bank B.Paying bank C.Drawee bank D.Negotiating bank The Correct Answer is : A.Collecting bank You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter3 55. Where a customer, by a letter has advised the bank directing the banker not to honour / pay particular cheque such letter is called ________ Marks: 2+ 1A.Letter of credit B.Stop-payment letter C.Mandate D.Garnishee letter E.Official letter The Correct Answer is : B.Stop-payment letter You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter3 56. Forged Cheque is __________ cheque. Marks: 2+ 1A.Valid

B.InValid C.Post-dated D.Stale cheque E.(v) Anti-dated The Correct Answer is : B.InValid You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter3 57. Introduction in opening accounts is

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A.Optional B.Compulsory C.Discretionary D.Waived from year 2003. The Correct Answer is : B.Compulsory You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter3 58. Minor with self-operation can open account if he / she is above

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A.6 year B.13 year C.15 year D.17 year The Correct Answer is : B.13 year You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter3 59. Public Ltd. Company should have minimum shareholders, before opening bank account:

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A.50 B.20 C.10 D.7 E.no limit The Correct Answer is : D.7 You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter3 60. Government companies are those companies where the government holds at least_________. A.51% B.26% C.100% D.No Requirement. The Correct Answer is : A.51% You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter3

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61. Delegation of power under Trust is _________.

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A.Possible B.Not possible C.Beneficiarys permission D.Charity commissioners permission The Correct Answer is : B.Not possible You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter3 62. Which document stipulates internal rules of company _________ ? A.Memorandum B.Resolution C.Articles D.Declaration E.Companies Act, 1956 The Correct Answer is : C.Articles You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter3 63. Minors account can be opened in the guardianship of __________.

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A.Mother and Father B.Mother or Father C.Grandmother D.Elder brother. The Correct Answer is : B.Mother or Father You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter3 64. Two or more minors desire to open bank a/c in your bank, whether they can open A.Either or Survivor B.Jointly C.Only two can join D.Cannot open The Correct Answer is : D.Cannot open You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter3 65. Who is considered natural guardians for minors ________? A.Mother and Father B.Stepmother and Father C.Stepfather and Stepmother D.All of above The Correct Answer is : A.Mother and Father You did not answer the question. Explanation : undefined

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Module : Module B Chapter : Chapter3 66. Who shall be nature guardian in case of married minor girl?

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A.Father B.Mother C.Father-in-law D.Mother-in-law E.Husband. The Correct Answer is : E.Husband. You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter3 67. Sanjay, a minor aged 11 years, desire to open banks Saving Account. His mother is illiterate and his father has become sanyasi. He has got both grand parents. Who will be his natural guardian? Marks: 2+ 1A.Father B.Mother C.Grandfather D.Guardian appointed by court E.Sanjay himself can oprate. The Correct Answer is : B.Mother You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter3 68. In a limited co. certificate of incorporation was obtained through memorandum which was signed by two persons for all the 7 signatories The signatures were forged. Will the bank accept memo as genuine for opening bank a/c? Marks: 2+ 1A.Yes B.No C.Yes because incorporation certificate is valid D.No because forged documents can not be accepted E.Bank will ask its H.O. The Correct Answer is : C.Yes because incorporation certificate is valid You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter3 69. There should be two persons to open a partnership account in a bank which is correct? A.X aged 25 years Y aged 17 Years B.X aged 25 years Y aged 21 years C.X aged 17 years and Y aged 16 years D.Ku. Shubha aged 30 years and Ku. Rachna aged 16 years ( daughter of Ku. Shubha) E.X aged 71 years Y aged 57 Years but lunatic The Correct Answer is : B.X aged 25 years Y aged 21 years You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter3 70. HUF account is to be opened in a bank where three major person are there Shivkumar-Father Mrs. Ramawati-Shivkumars Mother Sharat kumar-Son

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Who can become Karta of HUF?

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A.Shivkumar B.Sharat Kumar C.Mrs. Ramawati D.Both Shivkumar and Ramawati E.Both Shivkumar and Sharat Kumar The Correct Answer is : A.Shivkumar You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter3 71. One of the directors of a Ltd. Co. expired and cheques signed by him are presented for payments should the bank pay those cheques? Marks: 2+ 1A.Cannot pay B.Company on other directors confirmation C.Can pay as a routine D.Payments be stopped by co. The Correct Answer is : C.Can pay as a routine You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter3 72. X a partner in the firm XYZ Co. wants to open a bank account in the firms name. Does it require signatures of A.All partners B.Any one C.Managing partner only D.Sleeping partner not required The Correct Answer is : A.All partners You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter3 73. Securitisation is the process of acquisition of loans classified as A.Bad debts B.Performing debts C.Non-performing Debt D.Book debts The Correct Answer is : C.Non-performing Debt You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter4 74. Authorised officer means Marks: 2+ 1A.Chief manager in PSB B.Chief manager in NABARD C.Chief manager in a foreign bank D.Chief manager or equivalent in LIC The Correct Answer is : A.Chief manager in PSB You did not answer the question. Explanation : undefined

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Module : Module B Chapter : Chapter4 75. Bonds or debentures issued by Securitisation company should bear interest not less than

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A.Bank rate B.PLR C.1.5% over bank rate D.1.5% over saving rate The Correct Answer is : C.1.5% over bank rate You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter4 76. By which act, any security interest created in favour of secured creditor without intervention of courts A.Transfer of Property Act B.RDDB & FI Act, 1993 C.SRFA &ESI Act, 2002 D.Reserve Bank of India Act, 1934 The Correct Answer is : C.SRFA &ESI Act, 2002 You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter4 77. Secured creditor is liable for penalties for default under

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A.SRFA &ESI Act, 2002 B.Companies Act Section 142 C.Recovery of Debts Due Act, 1993 D.Negotiable Instrument act, 1881 The Correct Answer is : A.SRFA &ESI Act, 2002 You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter4 78. Recovery of loans and advances are possible under SREA &ESI Act, 2002 by A.Court B.DRT C.Summary trial by Banks or FISettlement D.Settlement The Correct Answer is : C.Summary trial by Banks or FISettlement You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter4 79. Securitisation is the process of Marks: 2+ 1A.Purchasing or acquiring B.Selling and administering C.Security documenting acquisitioning D.Providing security to NPA The Correct Answer is : A.Purchasing or acquiring You did not answer the question. Explanation : undefined

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Module : Module B Chapter : Chapter4 80. Qualified institutional buyer means

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A.Institution having paid up capital of Rs 10 crore B.Broker firm or company eligible to qualify C.Securitisation company D.Financial institution, bank insurance co. SFC The Correct Answer is : D.Financial institution, bank insurance co. SFC You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter4 81. Bancassurance is nothing but Marks: 2+ 1A.Assurance by the bank that it will not fail. B.Insurance of entire deposits at banks by insurance company. C.A packaged financial service offering both banking and insurance products to customers to meet both insurance and banking needs The Correct Answer is : C.A packaged financial service offering both banking and insurance products to customers to meet both insurance and banking needs You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter4 82. Advantage to banks under Bancassurance Marks: 2+ 1A.Increased return of fee income from assets B.Protection of personal life of borrowers to save loans from becoming NPA C.Marketing and processing capabilities are available extensively. D.Only (b) and (c) E.Only (a) and (c) The Correct Answer is : E.Only (a) and (c) You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter4 83. What are the challenges before banks under Bancassurance Marks: 2+ 1A.Extensive training to entire staff at a heavy cost. B.Development of IT system even in un-profitable C.Performance recognition and payment on incentives to employees for insurance business D.Motivate staff to sell insurance products. E.All of the above The Correct Answer is : E.All of the above You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter4 84. Describe problems and different nature in compensation to employees Marks: 2+ 1A.Cultural conflict and different nature in compensation to employees. B.Non achieving of targets and no convergence at branch level. C.Reluctance to one-stop service D.Possible source of conflict with existing customers E.All of the above

The Correct Answer is : E.All of the above You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter4 85. What you feel could be future of Bancassurance

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A.Bank and insurance have strong similarities with bright future B.Cost of providing services to would reduce, resulting cheap insurance products C.Wider range of services to client of banks D.Better consumer protection under Consumer Protection Act E.All of above The Correct Answer is : E.All of above You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter4 86. Mutual funds are Marks: 2+ 1A.Financial brokers B.Financial intermediaries C.Financial institutions for depositors D.Financial consultants The Correct Answer is : B.Financial intermediaries You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter4 87. Out of about 36 mutual funds in India, the major player is A.Birla mutual fund B.IDBI mutual fund C.Tata mutual funds D.Unit trust if India mutual fund The Correct Answer is : D.Unit trust if India mutual fund You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter4 88. Mutual funds offer advantage of Marks: 2+ 1A.Adequate protection from state agencies B.Easy liquidity of listed schemes C.Unlisted open-ended Schemes can be sold back D.All of (a) to (c) The Correct Answer is : D.All of (a) to (c) You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter4 89. Mutual funds are able to provide higher rate of return to the investors as A.Doing speculative business in share market B.Operating costs as percentage of net assets is very low, i.e. 1.26%

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C.All of above D.None of above The Correct Answer is : C.All of above You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter4 90. Which is the most profitable [in terms of net assets] mutual fund in India sponsored by banks A.ICICI + SBI + CANBANK B.BOI + HDFC +Kotak C.BOB + IDBI + Indbank +PNB D.All (a) to (c) The Correct Answer is : A.ICICI + SBI + CANBANK You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter4 91. In E-banking customers need not visit the bank, to meet cash requirements of self through A.Electronic funds transfer B.Tele-banking C.On-line banking D.Automatic Teller Machine E.None The Correct Answer is : D.Automatic Teller Machine You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter4 92. Tele-banking service function is available with bank computers, based on

Marks: 2+ 1-

Marks: 2+ 1-

Marks: 2+ 1-

A.Virtual B.Voice processing C.Brick and Mortar processing D.All of above E.None The Correct Answer is : B.Voice processing You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter4 93. In E-commerce the purchaser shift his / her purchasing from a physical store to A.Virtual store on Internet B.Virtual banking on Internet C.E-money D.Master Card E.B2B The Correct Answer is : A.Virtual store on Internet You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter4

Marks: 2+ 1-

94. what goods and services can be marketed through e-commerce? A.Real products B.Selling of information C.Advertising D.Entertainment E.All of above The Correct Answer is : A.Real products You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter4 95. Write benefits to consumers of E-commerce

Marks: 2+ 1-

Marks: 2+ 1-

A.Special tailored information B.Multimedia presentation C.Ability to place orders easily D.Rediffmail online services for payment E.All of above The Correct Answer is : E.All of above You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter4 96. Benefits of e-banking to consumers Marks: 2+ 1A.Anywhere banking B.Anytime banking C.Lowers the risk with cash D.Reduction in cost E.All of above The Correct Answer is : E.All of above You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter4 97. Home banking services means and includes

Marks: 2+ 1-

A.Cash transactions B.Non-cash transactions C.Both Cash and non-cash D.None The Correct Answer is : C.Both Cash and non-cash You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter4 98. The maximum loan that can be granted to a private retail trader dealing in non-essential commodities is A.1 lakh B.2 lakh C.3 lakh D.5 lakh The Correct Answer is : B.2 lakh You did not answer the question.

Marks: 2+ 1-

Explanation : undefined Module : Module B Chapter : Chapter5 99. Motor vehicle can be financed to the following professionals under Priority Sector

Marks: 2+ 1-

A.Architect B.Engineer C.Medical Practitioner D.none of these The Correct Answer is : C.Medical Practitioner You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter5 100. Mr. Suresh, a Photocopier, requests for a term loan of Rs 10.00 lakh for purchase of 3 photocopying machines costing Rs 12.00 lakh. He will meet loan WC requirements from his own resources.Manager can sanction the loan under Priority Sector: Marks: 2+ 1A.10 lakh B.12 lakh C.Cannot sanction D.Regional manager can sanction The Correct Answer is : C.Cannot sanction You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter5 101. Mr.Satish runs a travel agency. He dose not know driving. He approaches the bank for loan of Rs 7.00 lakh for purchase and furnishing of the van for travel and tour operator. Bank can Marks: 2+ 1A.Refuse the loan B.sanction C.Sanction if driving license is obtained D.refuse since loan is excessive The Correct Answer is : B.sanction You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter5 102. The maximum loan that can be granted under village and cottage industries is Rs A.50,000 B.65,000 C.25,000 D.no limit The Correct Answer is : A.50,000 You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter5 103. Net Working Capital / margin means A.Money invested by the borrower B.Bank loan

Marks: 2+ 1-

Marks: 2+ 1-

C.Subsidy from Government D.All the above The Correct Answer is : A.Money invested by the borrower You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter5 104. The minimum percentage of Priority Sector advances to be maintained by foreign banks in India A.40% B.32% C.15% D.no minimum limit The Correct Answer is : B.32% You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter5 105. Which of the following scheme is not covered under weaker section A.IRDP B.DRI C.PMRY D.consumption loan The Correct Answer is : C.PMRY You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter5 106. Loan for fish rearing is covered under priority sector as advance

Marks: 2+ 1-

Marks: 2+ 1-

Marks: 2+ 1-

A.Direct Agriculture B.Indirect agriculture C.Allied to indirect agriculture D.None The Correct Answer is : A.Direct Agriculture You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter5 107. Training of Rural Youth for Self-Employment [TRYSEM] relates to: A.Agricultural production B.Irrigation C.Small scale industry D.Self-employment in rural areas The Correct Answer is : D.Self-employment in rural areas You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter5 108. Minor irrigation schemes includes Marks: 2+ 1A.Dig-wells B.Tube/bore-wells

Marks: 2+ 1-

C.Lift irrigation pumps D.all of these The Correct Answer is : D.all of these You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter5 109. Tyre re-treading activity and coffee processing shall be treated as an industrial activity eligible under A.SSI B.SSSBE C.Tiny D.Service The Correct Answer is : A.SSI You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter5 110. The advanced not faulting under the priority sector is

Marks: 2+ 1-

Marks: 2+ 1-

A.SSI + Retail Trade + Small Business B.Professional / self-employed + Agriculture C.Wholesale Traders + Export + Education Loans to Business Management Institutes D.Funds provided by sponsoring bank to RRBs The Correct Answer is : D.Funds provided by sponsoring bank to RRBs You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter5 111. Indirect agriculture advance means Marks: 2+ 1A.Advances granted to agriculture for motor car to visit city B.Advances granted to profit motive institutions which help indirectly to agriculture or farming community C.Advance granted to commission agents D.Advances granted to Urban Electricity corpn. The Correct Answer is : B.Advances granted to profit motive institutions which help indirectly to agriculture or farming community You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter5 112. Cardinal principles of lending are Marks: 2+ 1A.Safety and liquidity B.Profitability and diversifications of risks C.Productive purpose and security D.Only (i) and (iii) E.All of (i) to (iii) The Correct Answer is : E.All of (i) to (iii) You did not answer the question. Explanation : undefined Module : Module B Chapter : undefined 113. Liquidity with a banker means Marks: 2+ 1-

A.Cash on Hand B.Cash and Bank balances C.Short term current assets to convert into cash D.farming community E.None The Correct Answer is : D.farming community You did not answer the question. Explanation : undefined Module : Module B Chapter : undefined 114. Customer profitability analysis means Marks: 2+ 1A.Exercise done by bank before to lending for a customer B.Exercise before opening a new branch C.Assets the profitability of customers business D.Only (i) and (iii) E.none The Correct Answer is : B.Exercise before opening a new branch You did not answer the question. Explanation : undefined Module : Module B Chapter : undefined 115. Banker can reduce risk in lending to a borrower Marks: 2+ 1A.by obtaining adequate security B.by ensuring that there will be no problem of liquidity with borrower C.by ensuring that there will be no the account of lack of liquidity and lack of willingness to pay on the part of the borrower The Correct Answer is : C.by ensuring that there will be no the account of lack of liquidity and lack of willingness to pay on the part of the borrower You did not answer the question. Explanation : undefined Module : Module B Chapter : undefined 116. In bankers parlance, credit risk in lending refers to Marks: 2+ 1A.default of repayment by a borrower B.default of a bankers in maintaining SLR C.default of a banker to release credit to a borrower D.none of above The Correct Answer is : A.default of repayment by a borrower You did not answer the question. Explanation : undefined Module : Module B Chapter : undefined 117. Net working capital means Marks: 2+ 1A.Current assets Current Liabilities B.Owned funds goodwill C.Use of assets + sources of funds D.None of above The Correct Answer is : A.Current assets Current Liabilities You did not answer the question. Explanation : undefined Module : Module B Chapter : undefined

118. Major Current assets are

Marks: 2+ 1-

A.Marketable investments and cash/receivable/inventories B.Inventories + cash + receivables C.Share in sister concern + unquoted shares + cash D.All of above The Correct Answer is : A.Marketable investments and cash/receivable/inventories You did not answer the question. Explanation : undefined Module : Module B Chapter : undefined 119. What are the sources of working capital Marks: 2+ 1A.Trade credits + Unsecured Loans + Deposits B.Bank borrowings + Advance Payments C.Net working capital D.All of above E.None The Correct Answer is : D.All of above You did not answer the question. Explanation : undefined Module : Module B Chapter : undefined 120. Working Capital means Marks: 2+ 1A.Requirements for day to day transactions B.Excess of current assets over current liabilities C.Fixed assets current assets D.None of above The Correct Answer is : A.Requirements for day to day transactions You did not answer the question. Explanation : undefined Module : Module B Chapter : undefined 121. Term loans mean Loans Marks: 2+ 1A.Payable after one year to 10 years B.repayment is done in installments C.Term loans are utilized for acquisition of fixed assets D.All of above E.Only (i) and (ii) The Correct Answer is : D.All of above You did not answer the question. Explanation : undefined Module : Module B Chapter : undefined 122. Working Capital needs are estimated by Marks: 2+ 1A.Operating Cycle method B.Projected Turnover method C.Cash Budget method D.Any of above E.None of above The Correct Answer is : D.Any of above You did not answer the question.

Explanation : undefined Module : Module B Chapter : undefined 123. Difference between Cash Budget and Cash Flow

Marks: 2+ 1-

A.Cash flow deals with cash and non-cash funds B.Cash Budget deals with Cash Transactions only C.Cash flow statement are for quarterly or half yearly while cash budget for short periods D.Cash budget is projection into future while cash flow statement is historical E.All of above The Correct Answer is : E.All of above You did not answer the question. Explanation : undefined Module : Module B Chapter : undefined 124. Advantages of Cash Budget could be Marks: 2+ 1A.Borrower plans in advance cash requirements B.Banker is able to spot to danger signal quickly and corrective measures could be taken C.Banker can plan his resources to meet credit demands D.All of above E.Any of the above The Correct Answer is : D.All of above You did not answer the question. Explanation : undefined Module : Module B Chapter : undefined 125. In there any exposure ceiling for banks in providing advances / loan to borrowers? Marks: 2+ 1A.15% of capital funds for single borrower and 40% in a borrowers group B.10% of capital funds for single borrower and 20% in a borrowers group C.25% of capital funds for single borrower and 50% in a borrowers group for infrastructural projects. D.No such ceiling The Correct Answer is : A.15% of capital funds for single borrower and 40% in a borrowers group You did not answer the question. Explanation : undefined Module : Module B Chapter : undefined 126. Credit decisions are affected by risks like Marks: 2+ 1A.Credit risk / Market risk / Operational risk B.Liquidity / interest rate / foreign exchange rate C.Commodity price / equity price risks D.None of above The Correct Answer is : A.Credit risk / Market risk / Operational risk You did not answer the question. Explanation : undefined Module : Module B Chapter : undefined 127. When a Loan will be NPA? Marks: 2+ 1A.interest and / or Loan instalments overdue for more than 90 days B.A/c is out of order for more than 90 days in case of overdraft / cash credit C.Bill remain overdue for more than 90 days in BP / BD

D.All of above E.Only (i) and (iii) The Correct Answer is : D.All of above You did not answer the question. Explanation : undefined Module : Module B Chapter : undefined 128. Charging of interest at monthly rests would / would not change overdue under NPA.

Marks: 2+ 1-

A.Would make overdue of 90 days form monthly interest debiting B.Would make overdue 90 days from previous Quarter ending C.Both of above D.None of above The Correct Answer is : B.Would make overdue 90 days from previous Quarter ending You did not answer the question. Explanation : undefined Module : Module B Chapter : undefined 129. Advances granted to units placed under rehabilitation package approved by BIFR / TLI are treated as

Marks: 2+ 1-

A.NPA B.Standard assets C.Additional credit facilities to such unit are to be treated as Non-NPA for two years approved by BIFR / TLI D.Additional credit facilities granted by banks under nursing programmed prepared by banks themselves The Correct Answer is : A.NPA You did not answer the question. Explanation : undefined Module : Module B Chapter : undefined 130. Working capital gap means Marks: 2+ 1A.Total current assets total current liabilities B.Total current assets Current Liabilities, other than bank borrowing C.Total assets total liabilities The Correct Answer is : B.Total current assets Current Liabilities, other than bank borrowing You did not answer the question. Explanation : undefined Module : Module B Chapter : undefined 131. Maximum permissible Bank Finance (MPBF) is arrived at by Marks: 2+ 1A.Deducting net working capital from working capital gap B.Deducting net working capital gap from total assets C.Deducting NWC from Total Current assets D.None of above The Correct Answer is : A.Deducting net working capital from working capital gap You did not answer the question. Explanation : undefined Module : Module B Chapter : undefined 132. Negative Lien means Marks: 2+ 1A.A declaration by a Co. not to encumber assets of the co. without previous consent of banker B.A Lien letter executed by the Co. authorising the bank to mark lien on it

C.A trust letter executed by a Co. D.A declaration that bank cannot provide cash to Co. if demanded The Correct Answer is : A.A declaration by a Co. not to encumber assets of the co. without previous consent of banker You did not answer the question. Explanation : undefined Module : Module B Chapter : undefined 133. Charge created on LIC policy is Marks: 2+ 1A.Lien B.Set-off C.Hypothecation D.Pledge E.Assignment The Correct Answer is : E.Assignment You did not answer the question. Explanation : undefined Module : Module B Chapter : undefined 134. Under Law of Limitation the liability of a guarantor is A.3 years date of document B.3 years from date of advance C.3 years from date of invocation D.12 years E.30 years The Correct Answer is : C.3 years from date of invocation You did not answer the question. Explanation : undefined Module : Module B Chapter : undefined 135. A guarantor is liable only when Marks: 2+ 1A.The principle debtor has defaulted to pay B.The creditor has exhausted his remedy against the principal debtor C.The guarantor is called upon to pay on default by the principal debtor D.After the expiry of limitation period of guarantee E.None of above The Correct Answer is : C.The guarantor is called upon to pay on default by the principal debtor You did not answer the question. Explanation : undefined Module : Module B Chapter : undefined

Marks: 2+ 1-