Objective For Written Exam635962376786552734

FROM
SCALE I TO SCALE II
WITH BEST COMPLIMENTS FROM

HARSHAVARDHAN MADABHUSHI,
GENERAL SECRETARY, ABOA
ASSOCIATE BANKS OFFICERS ASSOCIATION

UNIT : STATE BANK OF HYDERABAD
ASSOCIATE BANKS OFFICERS ASSOCIATION

UNIT: STATE BANK OF HYDERABAD
Dear Comrade !
14/04/2016
We are indeed very happy to bring another addition of study material for the written examination
for officers aspiring for Scale II from Scale I. The study material is updated upto 14/04/2016. We
have taken all care to include all the latest modules and models which will be helpful for facing
the written examination.
We appreciate the commitment and efforts of Sri. V.V.N. Sastry, Chief Manager in collating the
information.
I wish you all the very best in all your endeavors.
Comradely yours,
HARSHAVARDHAN MADABHUSHI
GENERAL SECRETARY, ABOA
The customer of a bank is defined in which of the acts

a Banking Regulation Act
b Negotiable Instruments Act
c RBI Act
d Companies Act
e None of the above
While analyzing Balance Sheet, cash margin on L/Cs and B/Gs for Working
Capital are classified as
a Current Assets
b Non-Current Assets
c Fixed Assets
d Intangible Assets
e Miscellaneous Assets
Immovable property of a public trust can be mortgaged if a prior permission is

obtained from
a Author of trust
b State Government
c Properties of trust cannot be mortgaged as per Transfer of Property Act
d Charity Commissioner
e None of the above
Capital Work-in-progress is classified as

a Fixed Assets
b Non-Current Assets
c Intangible Assets
d Net Worth
e Current Assets
A Company has Current Assets of Rs. 100, Quick Assets of Rs. 30 and Current
Liabilities of Rs. 150. The Current Ratio is
a 1.5:1
b 0.67:1
c 0.87:1
d Impossible to work out from the given figures
e None of the above
In what way a charge on stock in process is created?

a Assignment
b Mortgage
c Hypothecation
d Pledge
e None of the above
Net Working Capital (NWC) is

a Long Term Sources - Long Term Uses
b Working Capital Gap - Other Current Liabilities
c Current Assets - Current Liabilities other than Bank Borrowings
d
e
Non-Current Assets - Current Liabilities

None of the above
Operating Cycle refers to

a Operations in a unit
b Raw Materials getting converted into WIP
c Realisation of Sundry Debtors
d The time taken from cash outlay to cash realization
e None of the above
Cash Accruals consist of

a PBT + Depreciation + Other non-cash write-offs + DTL
b PAT + Depreciation + Other non-cash write-offs
c Operating Profit + Depreciation + Other non-cash write-offs + DTL
d PAT + Depreciation + Other non-cash write-offs + DTL
e None of the above
10
This is a financial arrangement whereby financial institution in the exporter

country or any other country, extends a loan directly or indirectly to a foreign
importer to finance the purchase of goods and services from the exporting
country. What are we referring to here?
a Suppliers cedit
b Direct collection
c Buyers credit
d Letter of credit
e None of the above
11
A shift from straight line method of depreciation to written down value method
results in
a Increased profit for earlier and decreased profit for current year
b Decreased profit
c Loss
d Decreased profit for earlier year and Increased profit for current year
e None of the above
A higher current ratio coupled with low quick ratio is an indicator of
12
13
a
b
c
d
e
Overdue is mounting up
Heavy credit sales
Low stock levels
High Inventory
None of the above
Garnishee Order is issued by

a Income Tax Authorities
b Revenue Authorities
c Court
d Local Municipal Authorities
e None of the above
14
As per MSMED Act, 2006, a Micro Enterprise (Service) is a Unit

a With original investment in Plant & Machinery upto Rs. 10 lacs
b With original investment in Equipment upto Rs. 10 lacs
c With original investment in Plant & Machinery upto Rs. 25 lacs
d With original investment in Equipment upto Rs. 25 lacs
e With original investment in Plant & Machinery upto Rs.50 lacs
15
this is a financing arrangement under which an exporter extends credit to the

buyer in the importing country to finnce buyers purchases what is being referred
here?
a Buyers credit
b Direct credit
c Letter of credit
d Suppliers credit
e None of the above
16
As per Prudential Exposure Norms set by RBI, the maximum exposure that can
be assumed by any bank on a Single Borrower is ____% of its Capital Funds
a 15
b 20
c 40
d 50
e 33
17
A minor can be admitted as a partner of a firm

a Minor cannot be admitted as a partner.
b For the profits of the firm only.
c Both for profits as well as losses.
d Only with the permission of a competent court.
e None of the above
18
Investments in Associate Concerns should be classified as

a Current Assets
b Fixed Assets
c Non-Current Assets
d Intangible Assets
e Net worth
19
If a Company has Fixed Assets of Rs.10,000, Term Liabilities of Rs.5,000,

Current Assets of Rs.1,000 and Current Liabilities of Rs.500, Net Working
Capital is
a Rs.500
b
c
d
e
Rs.5,000
Rs.1,500
Rs.15,000
None of the above
20
Tangible Net Worth (TNW) is

a Net Worth - (Intangible Assets + Revaluation Reserve)
Net Worth - (Intangible Assets + Revaluation Reserve + Investment in
b
Associates)
c Net Worth - Accumulated Loss
d Capital Net Loss
e None of the above
21
Total Outside Liabilities (TOL) is

a Total Current Liabilities
b Total Term Liabilities
c Total Current Liabilities + Total Term Liabilities
d Total Current Liabilities + Total Term Liabilities - Equity Share Capital
e None of the above
22
Working Capital Gap refers to

a Current Liabilities - Current Assets
b Fixed Assets - Current Liabilities
c Total Current Assets - Current Liabilities other than Bank borrowings
d Current Assets - Current Liabilities
e None of the above
23
Cheque can be crossed by

a Drawer
b Payee
c Holder
d All the above
e None of the above
24
EPC is basically a WC finance and the assessment has to be made

a Exactly on the lines of assessment done for normal WC advances
b As per ECGC guidelines
c As per EXIM Bank guidelines
d As per RBI guidelines
e None of the above
25
"To determine the accuracy of cost estimates, suitability of the envisaged pattern
of financing and general soundness of the capital structure". We are referring to
_____, being part of Term Loan Appraisal
a Economic Viability
b Financial Feasibility
c Commercial Viability
d Technical Feasibility
e None of the above
26
__________ indicates the degree of viability of a project and influences in fixing

the repayment period and the quantum of annual instalments.
a Debt Service Coverage Ratio
b Cash Flow Analysis
c Funds Flow Analysis
d Break-Even Analysis
e Current Ratio
27
Every company shall have a Board of Directors consisting of individuals as

directors and shall have (a) a minimum number of three directors in the case of
a public company, two directors in the case of a private company, and one
director
in
the
case
of
a
One
Person
Company;
and
(b) a maximum of fifteen directors:. This is a stipulation of
a Indian Partnership Act, 1932
b Indian Contract Act, 1872
c Negotiable Instruments Act, 1881
d The Companies Act, 2013
e None of the above
28
A 'New Unit' under the New CRA System (CRA 2008) refers to
A newly incorporated Firm / Company for a period of 3 years after the start
a
of commercial production
A newly incorporated Firm/Company for a period of 3 years from the date of
b
incorporation
A newly incorporated Firm/Company for a period of 2 years after the start of
c
commercial production
d A Firm / Company for a period of 3 years from the time it came to the Bank
e None of the above
29
When the valuation of immovable properties are done with the assistance of
qualified valuers, their report should be cross-checked by the official concerned
by making ______ enquiries so as to ensure that only realistic ____ values are
accepted by us.
a Independent, Realisable
b Individual, Realisable
c Independent, Market
d Personal, Distress Sale
e None of the above
30
Term Loans which are irregular will be reviewed once in ___ months
a 3 months
b 6 months
c 9 months
d
e
12 months
18 months
31
The objective of Unit Inspection is to verify whether the stocks of the _____,
____ and ____ as described in the Stock Statement, subject to certain changes
as may have taken place from the date of Stock Statement to the date of
inspection, are physically available in the factory.
a Description, Quality and Value
b Quantity, Quality and Unit Price
c Description, Quantity and Value
d Quantity, Quality and Value
e None of the above
32
Ways and means advances mean

a Temporary advances to Govt by banks
b Temporary advances to Govt by RBI
c Advances of long term nature to Govt by RBI
d Advances to Govt by SIDBI
e None of the above
33
CGTMSE stands for

a Credit Guarantee Trust for Micro and Small Enterprises
b Credit Guarantee Fund Trust for Micro and Small Enterprises
c Credit Guarantee Trust for Medium and Small Enterprises
d Credit Guarantee Trust for Small and Medium Enterprises
e Central Guarantee Trust for Medium and Small Enterprises
34
As per RBI guidelines, banks are to extend Collateral free loans upto ____ to all
new units under MSE Sector (both Manufacturing & Service Enterprises as
defined in MSMED Act, 2006). However, in all eligible cases, we have to obtain
Credit Guarantee Cover from CGTMSE to protect the Banks interests
a Rs. 2 lacs
b Rs. 5 Lacs
c Rs. 10 lacs
d Rs. 20 lacs
e Rs. 25 lacs
35
Advances to ____ are not covered by the Credit Guarantee Cover from
CGTMSE
a Retail Traders
b Manufacturers
c Departmental Stores
d Transport Operators
e None of the above
36
A differentiating feature between ACC & KCC is ___arriving at limit.

a SOF
b Crops
c Contingent needs.
d Land Holding
e None of the above
37
XOS statement is submitted by banks to RBI, which relates to:

a Overdue export bills
b Overdue import bills
c Overdue export bills sent for collection
d Overdue pre-shipment loans
e None of the above
38
If Ram has a term deposit account with the bank which is subject to TDS
provisions and he does not provide PAN details, the rate of TDS shall be:
a 15% + 3% CESS
b 10% + 3% CESS
c 20% + 3% CESS
d 25% + 3% CESS
e 30% + 3% CESS
39
Which of the following relationship between banker and customer, is not stated
correctly:
a Bailee and Bailor in case of safe deposit of articles
b Lessee and Lessor in case of lockers
c Agent and Principal in case of collection of cheque
d Debtor and Creditor in case of deposits
e None of the above
40
The customer service in a bank branch has been disrupted for 2 hours, due to
failure of the central server. What type of risk it is:
a Settlement risk
b Operational risk
c Systemic risk
d Reputation risk
e Market Risk
41
Which of the following is true with respect to packing list

a It must contain the bill value of goods
It lists contents of each crate, parcel etc., showing packing materials used
b
and shipping marks placed on outside
c It is a document to title
d
e
42
43
It must specify whether the shipment is prepaid or shall be paid at

destination
All of these
Under Banking Ombudsman Scheme, the Banking Ombudsman can award

compensation to the customer for an amount upto:
a Rs.10 lakh
b Actual loss suffered by the customer.
c Actual loss or Rs.10 lakhs whichever is lower.
d Actual loss or Rs.10 lakhs whichever is higher.
e None of the above
An exporter wants to open an EEFC account to deposit the exchange earnings.
The account can be opened as a :
a Term deposit account
b Saving bank account
c Current account
d Any of the accounts
e None of the above
44
The transactions under mortgage are governed by which of the following Act:
a Indian Contract Act
b Transfer of Property Act
c Code for Mortgages
d Indian Registration Act
e None of the above
45
Fresh KYC documents are to be obtained in case of accounts transferred from

other branch.
a False
b True
46
Under AML/KYC/PML Act, 2002, FIU stands for

a Finance in USA.
b Finance Intelligence Unit
c Financial Intelligence Unit
d Foreign Intelligence Unit
e None of the above
47
Right to Information Act came into force with effect from

a 01.01.2005
b 12.09.2005
c 12.10.2005
d 12.09.2004
e None of the above
48
Calculate the Drawing Power in case of a cash credit account with sanctioned
limit of Rs. 72 lacs, value of stock Rs. 105 lacs, value of unpaid stock Rs 5 lacs
value of goods received by DA LC sanctioned by bank Rs.10 lacs and margin
stipulated is 25%
a Rs 81 lacs
b Rs. 72 lacs
c Rs. 90 lacs
d Rs. 64.80 lacs
e None of the above
49
Calculate the Drawing power in case of a cash credit account with sanctioned
limit of Rs 72 lacs, value of stocks Rs 85 lacs, value of unpaid stock Rs 5 lacs
and margin stipulated is 25%
a Rs. 72 lacs
b Rs. 63.50 lacs
c Rs. 54 lacs
d Rs. 60 lacs
e None of the above
50
Which of the following is correct regarding a special mention account

a It is to be classified as NPA Account
b Provision on SMA is the same as applicable to NPA Account
It is a part of standard asset and provisions will be made as applicable to
c
standard assets
d Interest in such account can not be debited
e It is irregular account and will be classified as semi NPA account
51
Payment in due to course is defined under Sec. ______ of NI Act

a 13
b 10
c 15
d 118
e 131 A
52
A second LC is opened by the nominated bank in favour of second beneficiary

based on original LC is called
a Delegated LC
b Transferred LC
c Extended LC
d Back to back letter of credit
e None of the above
53
Tangible Net Worth is arrived by deducting _________ from Net Worth.

a Intangible assets
b Current Assets
c Fixed Assets
d Tangible Assets
e None of the above
54
Your Branch has a Trust account. All the four Trustees want to authorize one of
them to sign on their behalf. How to deal ?
a Letter of authority must be signed by all
b Letter of authority should be consented by the Commissioner of Charity
Authority would be valid only when the cheques are drawn for achievement of
c
the objectives of the Trust
d If Trust Deed provides for such an authority, it can be accepted
e None of the above
55
RBI had constituted a committee under the chairmanship of _______________

to look into banking services rendered to retail and small customers, including
pensioners.
a N.Narasimhan
b Ghosh
c M.Damodaran
d Goswami
e None of the above
56
In the Capital Market, the term `Arbitrage is used with reference to which of the
following?
a Purchase of securities to cover the sale.
b Sale of securities to reduce the loss on purchase.
Simultaneous purchase and sale of securities to make profits from price
c
variation in different markets
d Booking forward contracts
e None of the above.
57
Money lent or borrowed for one day(overnight) in the inter bank market is called
a Inter-bank loans
b Inter-bank deposits
c Notice money
d Call money
e None of the above
58
Risk that is associated with failure of internal processes of a bank s organization:

a Settlement Risk
b Operational Risk
c Procedural Risk
d Credit Risk
e None of the above
59
All dormant and inoperative accounts to be classified under

a Low risk
b High risk
c Medium risk
d Zero risk
e None of the above
60
Counter Guarantee means a guarantee obtained

a By banks from ECGC for covering risk involved in export financing
By banks from customers on whose behalf the Banks issue guaranteesin
b
favor of third parties
c By banks from a third party while allowing advance to a customer
d By banks from DGFT for all exports
e None of the above
61
Exchange control authority in India is

a IBA
b FEDAI
c DGFT
d RBI
e None of the above
62
The simultaneous buying and selling of forex positions to square off the exposed
position is known as
a Hedging
b Bidding
c Option
d All of the above
e None of the above
63
Probate is
a Certified copy of Title deeds of a property
b Certified copy of Bill of Exchange
c Certified copy of a Will by a competent court
d Registered Power of Attorney
e None of the above
64
SARFAESI is not applicable on which of the following

a Housing Loans
b Demand is more than 20% of total outstanding.
c Agricultural lands
d Outstanding in the account is more than 1 Lac
e All of the above
65
The documentary evidence for import transactions is________________

a GR form
b PP form
c Softex
d Bill of entry
e None of the above
66
Term Loans are repayable out of

a Sales turnover
b Future earnings of the Unit
c Sale of Fixed Assets purchased out of Banks Term Loan
d Sale of Intangible Assets
e None of the above
67
Rabi Crops are harvested in_________

a October /November
b May
c February / March
d January
e None of the above
68
CGTMSE provides coverage for

a Fund Based Limits
b Non-Fund Based Limits
c Both (a) & (b)
d Loans sanctioned to Medium Enterprises also.
e None of the above
69
On scrutiny of a Balance Sheet of M/s XYZ Inc., you observe that the long term
uses of funds are more than long term sources. The position of the Balance
Sheet indicates:
a Negative Working Capital Gap.
b Negative Net Working Capital.
c Positive Net Working Capital.
d Positive Working Capital Gap.
e None of the above
70
Account Payee Crossing is recognized under

a Negotiable Instruments Act
b Banking Regulation Act
c Indian Contract Act
d Not recognized under Law. It is a Banking Practice.
e None of the above
71
Foreign Trade Policy is prepared by :

a Ministry of Finance
b Ministry of Commerce, Govt. of India.
c RBI
d Ministry of International Affairs
e None of the above
72
As per UCPDC, a Transferable LC may be transferred

a Only thrice
b Only twice
c Only once
d No limit on number of transfers
73
LCs are not transferable
A Standby letter of credit is more similar to

a Bank Guarantee
b Revocable letter of credit
c Letter of intent
d Unconfirmed letter of credit
e None of the above
Lactation period in respect of milch animals refers to
a The period during which the animal gives milk
b
The period between the date of conception and date of giving birth to
young one
Inter-calving period (Time gap between the two dates of giving birth to
young ones)
d
e
The age at which the animal starts giving milk.

None of the above
74
75
Acquisition of fixed assets is an example of:

a Revenue expenditure
b Capital expenditure
c Deferred revenue expenditure
d Deferred capital expenditure
e None of the above
76
Which of the following is a non-current asset

a Debtors
b Bills Receivable
c Prepaid Expenses
d Long-term trade investments
e None of the above
77
What is the legal capacity of nominee while taking payment on behalf of legal
heirs of deceased depositors?
a Trustee
b Executor
c Administrator
d Liquidator
e None of the above
78
A hypothecation charge will become a pledge, if there is voluntary transfer of:

a Ownership
b Possession
c Either [a] or [b]
d Both [a] & [b]
e None of these
79
By Inter-cropping, we mean:
a Growing more than one crop in the same season
b Growing number of crops together
c Growing short duration crops between rows of main crops
d Growing long duration crops
e None of the above
80
NRO Account is maintained in

A Foreign Currency
b Indian Rupees
c Any of the above as per the instructions of the account holder
d Savings Bank in Indian Rupees and TDR in Foreign Currency
e None of the above
81
For cash accruals, depreciation is added to net profit because depreciation is

a Capital expenditure
b Non-cash expenditure
c Recurring expenditure
d Non-recurring expenditure
e None of these
Mutilated note means _______________
a Imperfect note
82
A note of which a portion is missing or it is compr ised of more than two

pieces
Bleached note
d
e
Forged note
None of the above
83
Excess cash found in the Branch is credited to

a Suspense Account
b IBTS Account
c Sundry Deposit Account
d Charges Account
e None of the above
84
A cheque duly signed by the drawer has some blanks and the blanks are filled in
by the presenter in your presence, you will
a Pay the cheque
b Return the cheque
c Hand over him to the police
d Contact the drawer of the cheque
e None of the above
85
An Executor is a person
a Appointed by the Court to manage the properties of the deceased
b Named in the Will but refuses to manage the properties
c Named in the Will to manage the properties of the deceased.
d Spouse of the writer of the Will.
e None of the above
86
Conversion according to N.I. act means

a Transfer of the benefit of a negotiable instrument to holder in due course
Wrongful transfer of the benefit of a negotiable instrument to a person who
b
is not the true owner
c Changing the name of payee.
d Any of the above
e None of the above
87
The following is not a material alteration

a Changing of an order cheque into a bearer cheque
b Changing of a bearer cheque into an order cheque
c Cancellation of crossing.
d Changing the date of the cheque
e None of the above
88
When a person dies without leaving behind a will, a person appointed by court to
manage his estate is called :
a An executor
b An attorney
c An administrator
d A trustee
e None of the above
1. The Uniform Customs and Practice for Documentary Credits are drawn by
a RBI
89
90
b
c
FEDAI
International Chamber of Commerce
d
e
IBA
Govt. of India
In case of credit card related complaints the maximum compensation which can
be awarded is Rs. ___lacs
a One
b Five
c Ten
d No compensation for credit card related complaints
e None of these
91
Importer Exporter code number is allotted by

a RBI
b DGFT
c EXIM BANK
d ECGC
e None of the above
92
________ is very important in document for limitation purpose.

a Amount
b Executor
c Period
d Date
e None of the above
93
As per Right to Information Act 2005, the application seeking information by an

applicant should be disposed off within a period of
a 15 days
b 7 days
c 20 days
d 30 days
e None of the above
94
SBH MAXGAIN Housing Loan is available in the form of

a Term Loan
b Demand Loan
c Overdraft
d Cash Credit
e None of the above
95
While considering Export credit, it must be ensured that exporters name does
not appear under_______ of RBI and _____ of ECGC
a Specific approval list, Caution list
b Deferred list, waiting list
c Caution list, Specific approval list
d Primary list, supplementary list
e None of these
96
Which section of the Negotiable Instruments Act,1881 permits institution of

criminal proceedings against persons who have issued cheques that have
bounced
a Sec. 144
b Sec. 28
c Sec. 138
d Sec. 50
e None of the above
97
A contract of Insurance is a contract of

a Indemnity
b Pledge
c Guarantee
d Hypothecation
e None of the above
98
Which of the following statement is not correct

a Nomination can be made by illiterate depositor
b Nomination can be made on joint Accounts also
c One person should be nominated
d Two persons can be nominated in the Joint Accounts
e None of the above
99
The certificate to commence business is to be called for, for perusal and return
for opening of an account of:
a Public Limited Company
b Club
c Private Limited Company
d Association
e None of the above
Those transactions in which the goods supplied do not leave the country and the
payment for such supplies is received either in Indian rupees or in free
foreign exchange are called
100
a
b
c
d
e
Fictitious exports
Deemed exports
Intangible transactions
OTC transactions
None of the above
Notice Money refers to

101
102
a
b
c
d
e
Overnight placement of funds

Placement of funds beyond overnight but not exceeding 14 days
Funds placed after giving prior notice of placement
Funds placed in excess of 3 months but not exceeding one year
None of the above
In case the nominee predeceases the account holder, the nomination :a Stands cancelled
b The legal heirs of the nominee have the right to claim the amount
c Legal representation is required
d Operations in the account should be stopped immediately
e None of the above
103
What is the minimum and maximum amount for which Savings Bank Cheque can
be drawn
a Rs. 50 and no limit
b Rs. 5 and Rs. 2500
c Rs.50 and Rs. 5000/d Rs.100 and Rs.50,000/e None of the above
104
As per Nayak Committee recommendations working capital to be sanctioned by

a Bank should be computed on the basis of:a A minimum of 25% of estimated sales
b A minimum of 20% of projected annual turnover
c A maximum of 20% of projected annual turnover sales
d A maximum of 25% of actual turnover of previous year
e None of the above
105
The scale of finance for crop loans is fixed by ________

a Local Head Office
b Regional Office
c Lead Bank
d District Level Technical Committee
e None of the above
106
A customer approached you for a Demand draft to send it to the USA. Which
type of a forex transaction is it?
a purchase
b sale
c spot
d TOM
e None of the above
107
Self-Help Group should not consist more than____persons

a 10
b 20
c 30
d 15
e 35
108
GR form is used for

Declaring that money is remitted out of the country to pay for import of goods
a
and services
b Declaring that money earned through exports is coming into the country
c Both (a) and (b)
d Declaring that money is remitted for import of capital goods
e None of these
Hypothecation advances granted to partnership undertakings should be

registered with:
a The Registrar of Companies
109
The Registrar of Assurance
c
d
e
The Registrar of Firms

Such advances do not require any registration
None of the above
110
Service Area Approach is applicable for ________________ schemes.

a Deposits
b Term Loans
c Advances
d Government sponsored
e None of the above
111
Maximum cash that can be withdrawn from an ATM of SBH in a day is

a 15000
b 40000
c 10000
d 25000
e None of the above
112
A minor is eligible to open a savings bank account if he/she can maintain a

uniform signature and has completed
a 10 Years of age
b 12 Years of age
c 15 Years of age
d 16 Years of age
e None of the above
113
Under Education loan up to what amount security is not to be insisted?

a a) Rs.15.00 lac
b Rs.7.50 lac
c Rs.4.00 lac
d Rs.5.00 lac
e None of the above
114
When the network serves a small area of a building or group of building, it is

known as
a WAN
b LAN
c WWW
d MAN
e None of the above
115
What is the basic document to be obtained while opening a Trust Account?

a Trust Letter
b Trust Deed
c Trust Resolution
d Memorandum of Association
e None of the above
116
Inchoate Negotiable Instrument means:

a Post-dated cheque
b Pre-dated cheque
c Lost Instrument
d Incomplete Instrument
e None of the above
117
Hedging means
a Protecting against fluctuation, uncertainty, risk in forex markets
b Speculative buying/selling of foreign currency
c Credit Risk Assessment in respect of advances
d Market Risk Assessment in respect of advances
e None of the above
118
Under the MODS, for order of breaking deposits in the absence of any selective
mandate from depositors, the system of ____ will be observed.
a FIFO
b LIFO
c FILO
d LILO
e None of the above
119
BPR stands for

a Below Poverty Range
b Business Process Reengineering
c Bill Payment Register
d Business per Region
e None of the above
120
What is CRR?
a Cash Reserve Ratio
b Current Ratio Rate
c Review Report
d Credit Rating Record
e None of the above
121
The term Allonge refers to

a The sheets of paper used in writing a deed
b The stamps affixed on document
c A sheet of paper attached to mortgage deed for the Purpose of witness
A sheet of paper attached to a negotiable instrument for the purpose of

making endorsement thereof when there is no space in the instrument
e None of the above
Full form of SLR
a Statutory Liquidity Ratio
b State Level Recovery
c Sundry Leverage Ratio
d State Liquidity Reserve
e None of the above
d
122
123
What is USGAAP
a United States Generally Accepted Accounting Principles
b Union State Generous Agreement & Accounting Principles
c United State General Allies & Army Practices
d Union State Generous Accounts & Affairs and Practices
e None of the above
124
Stamp Duty on _________________ is same throughout the country.

a Hypothecation Agreement
b Mortgage Deed
c Pledge Agreement
d Demand Promissory Note
e None of the above
125
Through a Letter of Credit

a Importer is assured of the quality of goods he has ordered
b Exporter is assured of the Payment by complying to terms
c (a) and (b)
d Borrower can mobilize funds from capital market
e None of the above
126
Appellate authority under Banking Ombudsman Scheme is

a Governor of RBI
b Deputy Governer RBI
c Chairman of respective Bank
d High court
e None of the above
127
The simplified KYC procedure of the RBI is applicable to persons who intend to
keep balances not exceeding Rs._______ in their account & the total credits in
the account in year not exceeding Rs.________?
a Rs.50,000/- & Rs.1,00,000/b Rs.25,000/- & Rs.1,00,000
c Rs.25,000/- & Rs.50,000/d Rs.1,00,000/- & Rs.10,00,000/e None of the above
128
A Time Deposit falling due on 15/01/2004 (since declared as Holiday under NI

ACT, on account of Makara Sankramana) shall be paid on
a
b
c
d
e
129
130
131
14/01/2004
The next working day with interest for the accrued holiday period
The next working day without interest for the holiday
At the option of Depositor
None of the above
Who guarantees payment under a Letter of Credit?

a Reimbursing Bank.
b Advising Bank.
c Negotiating Bank.
d Confirming Bank.
e None of the above
Another banker requests for opinion on your customer
a It cannot be given
b Can be given in general terms without any responsibility
c Can be given with prior consent of customer
d Can be given with prior approval from RBI
e None of above
The sole depositor and the nominee die simultaneously. The balance in the
account is payable to
a Legal heirs of depositor
b Legal heirs of nominee
c Jointly to the legal heirs of depositor and nominee
d Government of India
e None of above
132
While collecting cheques / bills etc. for a customer the bank acts as
a An agent of the customer
b A trustee of the customer
c Pledger
d Debtor
e None of above
133
Cash Credit is a running account where in limit is sanctioned to the customer

against;
a Pledge of stocks
b Hypothecation of stocks
c Pledge or Hypothecation of stocks
d Equitable Mortgage of properties
e None of above
134
Who is primarily liable on a cheque?

a Drawee banker
b Drawer
c Payee
d Collecting banker
e None of above
135
Bankers can exercise general lien in respect of

a Land and buildings
b Machinery hypothecated to banks
c Goods and securities
d Balance in SB A/c of borrower
e None of above
136
Cheque dated 31st June is presented for payment on 30th June. The
cheque
a Should be paid
b Should be returned since it is an impossible date
c Should be returned since it is irregularly drawn
d Both (b) & (c)
e None of above
137
Funds flow statement means :

a A statement of the funds flowing into banking industry
b A statement showing aggregate deposits of a bank
c A statement of sources and application of funds in a unit
d A statement of cash in hand and at bank of a unit
e None of above
138
NOSTRO account means :

A foreign currency account maintained by a bank in India with its branch or
a
correspondent at a foreign centre
An account in Indian rupees maintained by a foreign bank with a bank in
b
India
c An account maintained by Indian citizen with a foreign bank
d Accounts maintained by Indian banks in Amsterdam
e None of above
FEDAI is:
139
140
a
b
c
d
e
An association of workmen employees of a foreign bank

Majority union of foreign exchange brokers
An association of authorized foreign exchange dealers in India
Foreign exchange development agency of India
None of above
A decrease in CRR and SLR will ______the liquidity in the banking system:
a Decrease
b Improve
c No Impact
d Decrease and improve simultaneously
e None of above
141
Scheduled banks refers to a Bank:

a Authorised by Central Government to transact Government business
b Registered with Ministry of Finance, Government of India
Which is included in the second schedule to the Reserve Bank of India Act
c
1934
d Incorporated as a co-operative society
e None of above
142
Which of the following statements is true:

a Holder in due course can sue in his own name
b Holder in due course can acquire a better title than that of the transferor
c Holder in due course can negotiate the instrument
d All of the above
e None of above
143
A minor is competent to endorse an instrument:

a Subject to approval of the guardian
b Without incurring any liability
c With the consent of all parties
d The statement is not true
e None of above
144
Stamp duty payable on a promissory note is governed by:

a Banking Regulation Act
b Reserve Bank of India Act
c Negotiable Instruments Act
d Indian Stamp Act
e None of above
145
____________ is not a fund based facility

a Cash Credit facility
b Term Loan facility
c Letter of Credit facility
d Bill finance facility
e None of above
146
Shortfall in achieving the targets in agricultural credit by public sector banks will
be offset through:
a By investing in RBI bonds
b By investing SIDBI bonds
c By investing in RIDF bonds of NABARD
d By investing in GOI bonds
e None of the above
147
A certificate that a unit is an SSI unit is given by:

a Chamber of Commerce
b District Industries Centre
c RBI
d Ministry of industry
None of above
148
Banks do not grant advance against security of:

a Physical shares
b Dematerialised shares
c Partly paid shares
d All of these
e None of above
149
Mr. Mahi has a gold loan of Rs.5 lacs. His wife repays the gold loan and requests
for release of the gold ornaments. Bank will:
a Release the gold ornaments
b Release the gold ornaments only to Mr. Mahi
c Release the gold ornaments only after getting a guarantee
d Release the gold ornaments jointly to Mr. Mahi & his wife.
e None of the above
150
While granting loan against FDR with E or S facility, signature is obtained

from:
a Person whose name appears first in the TDR
b Second person
c Either (a) and (b)
d Both (a) and (b)
e None of the above
151
The objective of the Banking Ombudsman Scheme are:

a To promote settlement through conciliation
b Prompt settlement of customers grievances
c Inexpensive settlement of grievances
d All of the above
e None of the above
152
The Central Registry was established under the provisions of SARFAESI Act
a To note the personal loans sanctioned by the Banks
b To note the car loans sanctioned by the Banks
c For registration of security interest on Equitable Mortgage
d To note the Educational loans sanctioned by Banks
e None of the above
153
Which is not a part of KYC policy?

a Customer Management
b Customer identification
c Risk Management
d Monitoring of transactions
e Customer acceptance
154
A contract of guarantee is a contract to perform the promise or discharge the

liability of a third person in case of his default. The person who gives the
guarantee is called
a The Creditor
b The Principal Debtor
c The Surety
d The Underwriter
e None of the above
155
By `Technical NPA, it means

a A loan account becoming NPA for non renewal.
b Non-recording the due date after re-phasing/restructuring of a loan account
c A loan account becoming NPA for not obtaining Stock statement
d All of the above.
e None of the above
156
CGTMSE was set up by

a Govt. of India
b R.B.I.
c Govt. of India & SIDBI
d SIDBI
e NABARD
157
What is the one time Guarantee Fee payable to the CGTMSE for credit limits
upto Rs.5 lakhs
a 0.50%
b 1.00%
c 1.50%
d 0.75%
e None of the above
158
Court issues Garnishee Order on

a Judgment Debtor
b Judgment Creditor
c Judgment Debtors Bank
d Judgment Creditors Bank
e None of the above
159
CRA is applicable in
a C&I, SSI and Agriculture segments
b C&I, SSI, Agriculture, Trade & Services
c C&I, SSI and SBF segments
d C&I and PER segments
e None of the above
160
Credit facility sanctioned for purchasing, processing and packing of goods meant
for export is known as
a Bridge finance
b Forfeiting
c Packing Credit
d Bid bond
e None of the above
161
Deposits under NRE/FCNB accounts are linked to:

a Base Rate
b LIBOR
c SIBOR
d MIBOR
e None of the above
162
Which of the following banks stimulates the agricultural and rural development
a HDFC Bank
b EXIM Bank
c RBI
d NABARD
e None of the above
163
Floating charge is applicable to

a Stocks
b Book Debts
c Both (a) & (b)
d Bills payable
e None of the above
164
IBA Fair Practices Code is applicable to

a Branches in India & abroad
b Branches in India only
c Branches in Urban areas only
d Branches in Urban & Metro areas only
e None of the above
165
If a bill is discounted by the branch, liability of the drawer is:

a Primary
b Primary upto acceptance by the drawee, thereafter it is secondary.
c Secondary
d Drawer is not liable
e None of the above
166
Payment of a cheque presented after business hours should be discouraged as:

a It involves payment of overtime to the members of the staff.
b Normal routine of the branch is put out of gear.
c Such a payment will not be a payment in due course.
d Such payment requires the prior approval of Controlling Authority.
e None of the above
167
The statutory definition of the term Banking is given in:

a The Reserve Bank of India Act, 1934.
b The Banking Regulation Act, 1949.
c The Negotiable Instruments Act, 1881.
d The Companies Act, 1956.
e None of the above
168
The word Limited is used in the case of joint stock companies to indicate:
a That the companys share capital is limited.
b There is a limit imposed on the maximum number of share holders.
That there is a limit on the number of shares which may be allotted to
c
anyone of the share holders.
d That the liability of the share holders is limited.
e None of the above
169
A cheque drawn Pay bearer or order is presented across the counter:

a Should be paid to the drawer only.
b It should be treated as a bearer cheque and paid.
c It should be treated as an order cheque.
d It should not be paid
170
A remits Rs.50,000/- to your branch for the credit of Bs account. Next day, he
writes to the bank that a dispute has arisen between him and B, and that the said
amount, instead of crediting to the account of B, should be paid back to him.
The bank is responsible only to its customer, B, for the amount which he
a has received on his behalf; A will be advised to take up the matter directly
with B.
The amount may be paid back provided B has not been advised of the
b
remittance.
The amount will be kept in Sundry Deposit Account till the dispute between
c
A and B is settled.
d Amount should be equally distributed to both A and B.
e None of the above
171
Under Personal Accident Insurance (PAIS), the KCC borrowers are covered upto
an amount of Rs.____ for death and permanent disability
a 25000
b 50000
c 100000
d 200000
172
A married woman can enter into a contract in

a The name of her husband only.
b In her own name.
c In the name of God
d She cannot enter into any contract
173
How many articles are there in UCPDC 600?

a 20
b 29
c 30
d 39
e None of these
174
A pardanashin woman is one:

a Who is married and a house wife.
Who is totally secluded from ordinary social intercourse and does not deal
b
with people otherwise than her own family members.
c Who always remains under veil.
d Who took divorce from her husband.
175
Claim against the company not acknowledged as debts is a

a Contingent liability
b Current liability
c Unsecured loan
d Secured loan
176
Preliminary expense is an example of

a Fixed assets
b Current assets
c Tangible assets
d Intangible assets
177
Basel Committee on Banking supervision works under:

a ADB
b IMF
c World Bank
d Bank for International Settlement
178
Olericulture is a kind of farming which relates to

a Edible oil production
b Growing vegetables
c Flower production
d Silk worms
179
the practice of controlling the establishment, growth, composition, health, and

quality of forests to meet diverse needs and values.
a horticulture
b silviculture
c forticulture
d Social forestry
e None of the above
180
By Net NPAs, we mean

A Gross NPAs
B Gross NPAs minus provisions and claims received, if any.
C NPAs other than Agricultural segment advances.
D NPAs other than Personal segment advances.
E None of the above.
181
Capital Adequacy Ratio measures Capital against

A Total deposits
B Total deposits and total advances
C Total assets
D Total Risk Weighted Assets
182
For purpose of creating Equitable Mortgage, notified centers are published by

A Deputy Collectors in the districts.
B State Government in their Gazette.
C Registrars office in the districts.
D District Registrar
183
Micro propagation of plants is generally referred to

A Tissue culture
B pisciculture
C
D
E
apiary
olericulture
None of the above.
184
Into how many categories are bank customers are subjected to as per KYC
guidelines.
A High Risk and Low Risk.
b Medium Risk and Low Risk.
c Very High Risk, High Risk and Low Risk.
d High Risk, Medium Risk and Low Risk.
185
Break even point denotes

a
where total revenues equal total expenses i.e., the point of zero profits.
b The unit is running at the maximum profit level.
c The point where the unit breaks down on account of financial constraints.
d The unit is incurring losses.
e None of the above
186
What for a Haircut is given in Credit Risk?

To convert non fund based / contingent liability to exposure for the purpose
a
of arriving at the exposure to a borrower while calculating RWA
To convert exposures to Risk Weighted Assets (RWA), so as to arrive at
b
the Capital Charge for that exposure.
To find out the value of Financial collaterals after a reduction, to be eligible
c to deduct from exposure for the purpose of arriving at the Net Adjusted
exposure to a borrower while calculating RWA
d All of the above
187
A cheque can be paid in cash even after business hours when it is presented by:
a Any person
b A person known to bank officials.
c The drawer.
d The payee.
188
A customer deposits a sealed box for safe keeping with the bank. Here the
relationship of the banker with the customer is:
a Bailee Bailor
b Licensor Licensee
c Lessor Lessee
d Trustee Beneficiary
189
A time barred debt can be revived by obtaining
a
b
c
d
e
A letter of undertaking to pay the time barred debt.

Time barred debt cannot be revived.
Revival letter
A back dated Revival letter.
None of the above.
190
Bankers `Right of set off can be immediately exercised in case of

a Lunacy of the borrower.
b Death of the borrower.
c Insolvency of the borrower.
d All of the above.
191
Body to prescribe minimum services levels for member banks is

a BCSBI
b RBI
c SEBI
d SBI
192
Documents of title to goods are transferable by

a Endorsement and delivery.
b Mere endorsement.
c Mere delivery.
d Assignment
193
Before we can accept a balance sheet as a reliable and authentic statement, we

would want to see that it
a Has been stamped by the tax authorities.
b Has been signed by the Directors and Auditors.
c Is attached to the previous years balance sheet.
d Is accompanied by sources and uses of funds statement.
194
Truncation of cheques means

The cheques in the paper form will be retained by the collecting banker and
a
he will submit only a computerized statement to the Clearing House.
Cheques will be scanned and the electronic image, instead of physical
b
cheque, will be transmitted in the clearing cycle.
c Entire clearing operations would be done only through computers.
d Debiting the drawers account through Internet banking.
195
A bank is under an obligation to return the paid cheques only to

a The Drawer.
b The Payee.
c The Endorsee.
d Any of these.
196
In the case of advance against life insurance policies, charge is created by way
of
a Hypothecation
b Assignment
c Pledge
d Mortgage
197
When more than one Bank are allowing credit facilities to one party in coordination with each other under a formal arrangement, the arrangement is
generally known as
a Consortium
b Syndication
c Multiple Banking
d Participation
198
The term `Co-Parceners relates to

a Hindu Undivided Family
b Parsis
c Joint ownership
d Partnership firms
e None of the above
199
While studying a balance sheet, it should be ensured that the stocks are valued
at
a Average sale price.
b Cost price, market price or controlled price, whichever is the lower
c Cost price or market price whichever is highest
d Cost price.
200
A hirer is allowed to operate the locker in the presence of

a No body should be present
b The custodian of lockers
c Any official of the bank
d An independent witness
201
The crossing in a crossed cheque can be cancelled by
a
b
c
d
e
Payee
Drawer
Drawee
Endorser
None of the above.
202
A cheque is payable on
a Happening of certain event.
b 24 hours after presentation
c Demand
d A fixed future date
203
Mere signature on the reverse of the instrument is called

a Conditional endorsement
b Stale instrument
c Null and void instrument
d Blank endorsement
204
What are the factors to be ascertained from the projected financial statements to
calculate working capital requirement of a borrowing unit, from those mentioned
below.
a Estimated consumption of raw materials, stores and spares.
b Estimated cost of production.
c Estimated cost of sales.
d All of the above.
205
A banker is liable for wrongful dishonour of cheque to the

a Drawer
b Payee
c Both drawer and payee
d The payee or the drawer who sues first
206
Dishonoured cheques should be returned to the customers within:

a
2 days
b 24 hours
c 3 days
d 5 days
207
In computer parlance, FTP means
a
b
c
d
e
File Transfer Protocol

File Translate Protocol
File Transit Period
File Typing Protocol
None of the above.
208
Monetary and Credit Policy is formulated by

a Ministry of Finance, Govt. of India
b Chambers of Commerce
c Ministry of Commerce, Govt. of India
d Reserve Bank of India
209
As per MSMED Act, 2006, a Micro Enterprise (Manufacturing) is a Unit

a With original investment in Plant & Machinery up to Rs. 10 lacs
b With original investment in Equipment up to Rs. 10 lacs
c With original investment in Plant & Machinery up to Rs. 25 lacs
d With original investment in Equipment up to Rs. 25 lacs
IFSC stands for
210
a
b
c
d
e
International financial service code

Indian financial system code
Indian Financial Service Code
Inter bank financial service code
None of the above.
211
BCSBI (Banking Codes and Standards Board of India) is a

a
Subsidiary of SBI
b
Subsidiary of RBI
c
Subsidiary of IBA
d
A Registered Society
e
None of the above.
212
If the date has not been filled in a cheque at the time of issue, who can affix it
before the cheque is presented for payment
a
Payee
b
Holder
c
Endorsee
d
All the above
e
None of the above.
213
A NOT NEGOTIABLE crossing on a cheque

a
Cannot be further negotiated
b
Indicates a restrictive endorsement
Indicates that the proceeds of cheque cannot be negotiated through a
c
bank
d
The transferee cannot get a better title than that of the transferor
None of the above.
214
A guarantee which extends to a series of Promises or Transactions is called

a
Indemnity
b
Financial guarantee
c
Bid-bond guarantee
d
Continuing Guarantee
e
None of the above.
215
The nature of charge created on the intangible securities like account

receivables is______________
a
Assignment
b
Mortgage
c
Lien
d
Hypothecation
e
None of the above.
216
Point of sale (POS) Transaction is

a
A real time gross settlement transaction
b
A transaction done by an INB account holder on internet
c
A Transaction done using a Debit Card at a merchant establishment
d
A Transaction done at ATM
e
None of the above.
217
PMLA refers to
a
Preventive measures in loans and advances
b
Prevention and monitoring of lapses in accounts
c
Prevention of Money Laundering Act 2002
d
Preventive measures and legal aspects in KYC norms
e
None of the above.
218
Banks can sell the mortgaged property without the intervention of the court under
a
SARFAESI Act 2002
b
Transfer of Property Act
c
Banking Regulation Act 1949
d
Negotiable Instruments Act 1881
e
None of the above.
219
For Term Loan, the DSCR (Gross) and DSCR (Net) should not be normally
below
a
2.00 & 1.75
b
1.75 & 1.50
c
3.00 & 2.00
d
1.75 & 2.00
e
None of the above.
220
CAC under BPR stands for?

a
Cash Authorization Cell
b
Currency Administration Cell
c
Cash Administration Centre
d
e
Currency Authorization Centre

None of the above.
221
Special Mention Accounts (SMAs) are a new asset category introduced between
a
Standard Asset and Sub-Standard Asset Accounts
b
Sub-Standard Asset and Doubtful Asset Accounts
c
Doubtful Asset and Loss Asset Accounts
d
Sub-Standard Asset and Loss Asset Accounts
e
None of the above.
222
Of the following advances which can be classified under priority sector?

a
All Housing Loans up to Rs. 10.00 lacs
b
c
d
e
None of the above.
223
Non face to face customers refers to

a
NRI customers who want to open account without visiting the branch
b
Pardanashin woman
c
VVIPs
d
Who operate their accounts with power of attorney
e
None of the above.
224
Last digit of the eleven digit account number of a customer in CBS is called
a
Unique digit
b
Check digit
c
Control digit
d
Limit digit
e
None of the above.
225
All inoperative accounts may be classified under

a
No risk
b
Low risk
c
Medium Risk
d
High risk
e
None of the above.
226
Under Bank's Financial Inclusion cash transactions on behalf of bank are carried
out by
a
Business Correspondents(BCs)
b
Business Facilitators(BFs)
c
Both (a) & (b)
d
Banks branches
e
None of these
227
Risks arising due to poor service of service provider are categorized as

a
Reputation risk
b
Operational risk
c
Counter Party risk
d
Goodwill risk
e
None of the above.
228
Contribution is a difference in sale and _____

a
Variable cost
b
Fixed Cost
c
Total Cost
d
Profit
e
None of these
229
SMA in the context of NPAs refers to

a
Special Mention Assets
b
Special Mention Accounts
c
Special Monitoring accounts
d
Special Monitoring Assets
e
None of the above.
230
Banking Ombudsman is appointed by

a
IBA
b
RBI
c
Supreme Court
d
Ministry of Finance, GOI
e
None of the above.
231
Bank can accept Term Deposit for a maximum period of ___ months.
a
100
b
240
c
60
d
120
e
None of the above.
232
Consumer protection act does not cover the deficiency in service for
a
ATM transactions
b
Issuance of drafts
c
Opening of accounts
d
Sanctioning of loans
e
None of the above.
233
How many Associate banks of SBI are listed in Stock Exchange

a
3
b
4
c
5
d
7
e
None of the above.
234
Under RTI Act the records by a Public Authority have to be preserved for a
period of___ years
a
3
b
7
c
10
d
20
e
None of the above.
235
Which one of the following is not applicable for future credits

a
Income Tax Order
b
Garnishee Order
c
Revenue Attachment Order
d
Both (a) & (c)
e
None of the above
236
If a cheque is returned for insufficiency of funds, then such act is punishable

under
a
CPC
b
Banking Regulation Act
c
Negotiable Instruments Act
d
Indian Penal code
e
None of the above.
237
*
For issuance of a CP the tangible net worth of the company, as per the latest
audited balance sheet, is not less than Rs ___ Cr
a
2
b
3
c
4
d
5
e
None of the above
238
A Garnishee Order has been received from a Court account of a Partnership

a
Will be applicable for Individual accounts of each of the partners
b
Will not affect Individual accounts of the partners
Is applicable to Individual accounts of the partners if a special order is
c
obtained from the court
d
Is not applicable to partnership accounts
e
None of the above.
239
Registration of Banks charge with the Registrar of Companies is not required in

case of Joint Stock Company against
a
b
c
d
e
Hypothecation of movable property

Pledge of movable property
Assignment of Book Debts
Mortgage of fixed assets
None of the above.
240
Due date for repayment of a crop loan is crop harvesting period, plus
a
4 months for marketing
b
c
d
e
None of the above.
241
Number of IRAC status codes for loan accounts in B@ncs24 are

a
8
b
6
c
4
d
9
e
None of the above.
242
GLIFF stands for

a
General Ledger Information File
b
General Ledger Internal accounts File
c
General Ledger Interface File
d
General Ledger Intermediate File
e
None of the above
243
Validity period of an Execution Petition is______ years.

a
13
b
12
c
10
d
3
e
None of the above.
244
Maximum Cap level upto which SLR can be stipulated by is RBI is

a
20%
b
25%
c
30%
d
40%
e
None of the above.
245
Hypothecation is defined in
a
Indian contract act
b
Transfer of property act
c
NI Act
d
SARFAESI Act
e
None of the above.
If a bill of exchange contains an endorsement Notice of dishonor waived by the

endorser, such an endorsement is called
246
a
b
c
d
e
Restrictive
San Frias
Facultative
Conditional
None of the above.
The right of lien under Section 171 of Contract act confers on the bank the right
to retain the goods
A) against debts due
247
a
b
c
d
e
B) Time barred debt C) Against contingent debt
A only
A & B only
B & C only
A & C only
None of the above.
Which of the following is an implied authority of a partner?

248
249
a
b
c
d
e
open a banking a/c on behalf of the firm in his own name

submit a dispute relating to the business to arbitration
acquire immovable property on behalf of the firm
Both (a) & (b)
None of the above.
Branch has to submit CTR in respect of _________

a
Cash transactions of Rs.10.00 lakh and above
b
Cash transactions above Rs.7.50 lakh
c
d
e
None of the above.
The right of a guarantor to step into the shoes of the creditor upon full payment
of debt is called as
250
251
a
b
c
d
e
Subrogation
Redemption
Foreclosure
Discharge
None of the above.
Issuance of bearer demand drafts is prohibited under

a
Banking Regulation Act
b
Reserve Bank of India Act
c
Negotiable Instruments Act
d
Both (b) & (c)
e
None of the above
252
What is the period of limitation in case of a mortgage from the date of final
decree?
a
3 years
b
12 years
c
13 years
d
30 years
e
None of the above.
253
The term IFSC stands for____________.

a
Indian Financial System Code
b
Internal Financial System Code
c
International Financial System Code
d
Intermediary Financial System Code
e
None of the above.
254
Liquid surplus refers to _________.

a
Excess of current assets over current liabilities
b
Excess of current liabilities over current assets
c
Excess of actual profit over the projected profit
d
Net Profit
e
None of the above.
255
Khata, Vyapar and Vistar are the terms associated with ____________.
a
Retail internet banking
b
Corporate internet banking
c
RTGS
d
NEFT
256
Undelivered PIN mailers for more than ____ should be effectively destroyed by
the branch
a
30 days
b
35 days
c
45 days
d
60 days
e
None of the above.
257
RBI notifies CRR under _________ Act.

a
Section 24 of Banking Regulation act
b
Section 24 of RBI act
c
Section 42 of RBI act
d
Section 42 of NI act
e
None of the above.
258
The rate at which RBI lends to banks under the Liquidity Adjustment Facility
(LAF) is called ____.
a
Repo Rate
b
Reverse Repo rate
c
d
e
Bank rate
Prime Lending Rate
None of the above.
259
National Agricultural Insurance scheme (NAIS) is implemented through

a
General Insurance Company of India (GIC)
b
Life Insurance Corporation of India (LIC)
c
Agriculture Insurance Company of India (AIC)
d
United India Insurance Co. Ltd
e
None of the above.
260
APEDA stands for

a
Agricultural Products Export Development Authority
b
Agricultural Producers Export Development Agency
c
Agricultural & Processed Food Products Export Development Authority
d
Agricultural Products Entrepreneurs Development Agency
e
None of the above
261
While making cash withdrawal from SBI ATM, Response code 000printed on
the transaction slip denotes ___
a
Successful transaction
b
Failed transaction
c
Fraudulent transaction
d
Hold on account
e
None of the above.
262
Insurance cover under KCC is extended upto the age of ___ years
a
60
b
65
c
70
d
75
e
None of the above.
263
_____ is/are not taken into account while calculating quick ratio
a
cash
b
stocks
c
Balance in Bank
d
Sundry Debtors
e
None of the above
264
BCSBI promoted by RBI stands for __________.

a
Banking Codes and Systems for Banks in India
b
Banking Codes and Systems Board of India
c
Banking Codes and Standards Board of India
d
Banking Codes for State Bank of India
e
None of the above
265
In the event of wrong/delayed reporting of currency chest figures, Bank has to

pay penalty @ ------
a
b
c
d
e
Saving Bank Interest rate

Bank Rate plus 2%
Applicable rate for time deposits
Bank Rate
None of the above.
266
The Negotiable Instruments Act allows 3 days of grace on

a
Cheques
b
Usance Bills of Exchange
c
Promissory Note
d
Demand Draft
e
None of the above.
267
The term negative lien means

a
A lien which does not confer on the bank a right of sale of asset
b
Where a borrower is restrained from creating further charge on his assets
c
Invocation of lien
d
Discharge of lien
e
None of the above.
268
Exports of Software is to be declared in

a
SDF
b
SOFTEX Form
c
BEF
d
GR form
e
None of the above.
269
Balance of Trade refers to

Net Difference in exchange rates of currency of the exporter and
a
importer
b
Net Difference between value of exports and imports of commodities
Net Difference between the cost of goods in exporting country to that of
c
importing country
d
Net Difference between Cost price and Selling price of commodity
e
None of the above.
270
The Price quoted under CIF contract includes

a
Customs duty, Insurance, Freight
b
Customs Duty, Insurance, Free on Board
c
Cost of goods, Insurance, Freight
d
Cost of Goods in Free on Board
e
None of the above.
271
Under this type of letter of credit the limit under the credit is renewed as and
when bills drawn under it are paid, to the extent of such bills
a
Transferable letter of Credit
b
Irrevocable letter of Credit
c
Revolving letter of Credit
d
Continuing letter of credit
272
e
None of the above.
GR form is an evidence of
a
Import of goods
b
Export of goods
c
Receipt of goods by shipper
d
Exports by parcel post
e
None of the above.
273
UCPDC Uniforms Customs and Practice for Documentary Credits is issued by

a
International Chamber of Commerce
b
EXIM Bank
c
RBI
d
IBA
e
None of the above.
274
Mr. A goes abroad for employment purpose who is your existing customer
having Savings Bank a/c, his account is to be converted to ___ A/C
a
NRE
b
FCNR
c
NRNR
d
NRO
e
None of the above.
275
Vostro Account is
a
Non- Resident maintaining a foreign currency account abroad
b
Resident Indian opening Foreign currency account abroad
c
Indian Bank open foreign currency account abroad
d
Foreign bank open Rupee account with Indian bank
e
None of the above.
276
When a customer authorizes a third party to operate on his banking account,

such a person is known as:
a
Trustee
b
Customers Attorney
c
Executor
d
Administrator
e
None of the above.
277
A customer lodged a complaint with ABC Bank for deficiency in service but did
not receive a reply. He should approach the Banking Ombudsman after ____ &
within _______ from the date of complaint.
a
One month and two years
b
15 working days & one month
c
One month and one year
d
One week and one month
e
None of the above.
278
IMPS is introduced by
a
b
c
d
e
279
National payment corporation of india

RBI
GOI
IBA
None of the above
Person returning from Abroad can surrender Forex in:

a 45 days
b 90 days
c 180 days
d 360 Days
280
Which of the following is a source of fund?

a
Increase in Fixed Assets
b
Increase in Liabilities
c
Increase in Current Assets
d
Increase in Intangible Assets
e
None of the above.
281
Banks are required to make calculation of CRR on the basis of :

a
Net demand and time liabilities
b
Demand and time liabilities
c
Long term deposits
d
All items of the liability side of the balance sheet
e
None of the above.
282
As per Govt of India guidelines, a special concession to agricultural borrowers

(for short term production loans) is to be provided by way of subvention of 2%.
This is available only if the amt of loan is ------lacs and interest charged on it is ----%
a
3 :10
b
3:8
c
3:7
d
3:9
e
None of the above.
283
284
TDS deduction on interest of term deposit is to be made by the bank if the

amount of such interest is :
a
Rs.10000 and above
b
Rs.1000
c
Rs.5000 and above
d
Up to Rs.10000
e
None of the above.
With the introduction of RTGS, what type of Risk has been eliminated
a
Credit and default
b
c
d
e
Market
Liquidity & interest rate
Settlement & systemic
None of the above.
285
A & B have opened FDR with bank and nominated their sons name. After some
time they came to bank and request to Branch manager to change name of FDR
to C & D in place of A & B :
Bank cant consider the request as one of the original holders name
a
must continue
b
Bank can accept the request if C and D agree to give indemnity
c
Bank can accept the request since the original parties are ready to do so
d
Bank can accept the request if it comes from all of them
e
None of the above.
286
Which of the following is not a part of Priority Sector:

a
Loans to Software industry
Loan sanctioned for godown construction in an urban area for storage of
b
agriculture produce
Loan sanctioned to a farmer for purchase of transport vehicle for
c
transportation of agriculture produce
Loan of Rs.18000 sanctioned to SC/ST under DRI scheme for house
d
construction
e
None of the above.
287
In case of a long duration crop loan, if the loan become overdue for payment, it
will be NPA after:
a
Two crop seasons
b
90 days
c
One crop season
d
Within two crop seasons
e
None of the above.
288
One of our valued NRI depositor wants to open a joint a/c with his father in India.
He can be allowed to open _____ A/c.
a
NRE
b
NRO
c
FCNR
d
Cant open such a/c
e
None of the above.
289
The banker is under an obligation to maintain secrecy. A banker will be justified

to disclose information if required to do so
a
Under law
b
With consent of customer
c
In nations interest
d
All above are true
e
None of the above.
290
In which types of following accounts, the nomination is not available:

a
FCNR account of an NRI
b
NRO joint account of NRI and resident
c
Trust a/c
d
Minors under-guardianship account
e
None of the above.
291
The ratio that is used by the bank for appraisal of TL proposal and fixation of
installment amount is called:
a
Debt equity ratio
b
Quick ratio
c
Net worth to total liabilities ratio
d
Debt service coverage ratio
e
None of the above.
292
X is 62 years old and is having three term deposit account with your branch with
total amount of Rs.2 lac. He wants exemption from TDS. The bank will obtain :
a
Form 60
b
Form 61
c
Form 15 H
d
Form 15 G
e
None of the above.
293
A/C payee crossing on a cheque is a direction of ____ to ___:

a
Instruction of drawer to paying bank to pay to payee only
b
Instruction of the payee collecting bank to credit to his account only
c
Instruction of the drawer to collecting bank to credit to payees a/c
d
Instruction of the payee to the paying bank
e
None of the above.
294
If a bill of lading is not presented for negotiation to the negotiating bank within
____, it will become stale :
a
Its validity period maximum 21 days from date of negotiation
Its validity period maximum 21 days from date of handing over the
b
goods to the shipping company
c
Its validity period maximum 21 days from date of shipment
d
Any of the above dates, whichever is earlier.
e
None of the above.
295
A bill of exchange is dated 18.02.2006. It is presented for acceptance on

February 19, 2006 and accepted on 20.02.2006. The bill is payable 3 months
after presentment. The due date will be :
a
19.05.2006
b
22.05.2006
c
20.05.2006
d
23.05.2006
e
None of the above.
296
Which of the following committees is related to Computerisation in Banks:

a
Narasimham Committee
b
Kelkar Committee
c
CS Murthy Committee
d
Saraf committee
e
None of the above.
297
The Pillar III of Basel-II relates to which of the following:

a
Risk management
b
Minimum Capital to be maintained by the bank
c
Market discipline
d
Supervisory Review
e
None of the above.
298
Debt service coverage ratio (DSCR) is calculated as :

a
(Net profit ) / interest on long term loans + instalment of long term loans
(Net profit + depreciation + interest on long term loans) / interest on long
b
term loans + instalment of long term loans
(Net profit + depreciation ) / interest on long term loans + instalment of
c
long term loans
(Net profit + interest on long term loans) / interest on long term loans +
d
instalment of long term loans
e
None of the above.
299
Upon finding a counterfeit currency note on the counter, the action of the bank
should be (which is most appropriate):
a
Impound the currency note under the witness of Branch Head
b
Impound the currency note under the witness of cashier
c
Impound the currency note under the witness of cashier and tenderer
Impound the currency note under witness of cashier and tenderer and
d
issue a receipt to tenderer even if he do not sign.
e
None of the above.
300
What is reflected when the debtors turnover ratio of unit increases:

a
Sales have increased and debtors have also increased
b
Sales have declined and debtors have increased
c
Recovery of book debts has shown improvement
d
Recovery of book debts has shown deterioration
e
None of the above.
301
Protection to ___ banker is available under section 131 of the Negotiable

Instrument Act.
a Paying
b Collecting
c Advising
d Confirming
302
Cost of _________ is excluded while classifying MSME units into Micro, Small or
Medium Enterprises.
a Land & Building
b Plant
c Machinery
d Equipment
303
Charge against National Savings Certificate is ___.

a Lien
b Assignment
c Hypothecation
d Pledge
304
R returns are submitted in respect of _______ transactions.

a Foreign exchange
b Currency chest
c Coin depot
d Inland remittances
305
Letter of Credit issuing bank is called as ______

a LC creating bank
b LC allowing bank
c LC opening bank
d Applicant bank
306
Claims on CGTMSE will carry a risk weight of ___% while that on ECGC will
carry a risk weight of ____%
a
20%, 0%
b 0%, 20%
c 50%, 00%
d 40%, 50%
307
Where a Garnishee Order and Income tax attachment order are received by a
bank simultaneously, the bank should first comply with
a Income tax attachment order
b Garnishee Order
c Discretion is left to bank
d The order which is having higher amount
308
A bank is justified in disclosing the details of a customers account under
a
b
c
d
e
Sec. 6 of Bankers book of evidence Act 1891

Sec. 36 of gift tax act 1958
Sec. 38 of wealth tax act 1957
(a) Or (b) or (c) above
None of the above.
309
Cheque bouncing case is dealt as per Section _____ of N.I. Act.

a 5
b 4
c 138
d 6
310
Particular lien is defined in

a Sec. 170 of Indian contract act
b Sec. 170 of Indian companies act
c Sec. 170 of Indian partnership act
d Sec. 170 of Indian stamp act
311
Paying Banker gets protection in case of forged endorsements under

a Sec 85(1) of NI act
b Sec 58 of BR act
c Sec 35-A of RBI Act
d Sec 38 of NI act
312
Notice period before possession is ___ days under SARFAESI Act.

a 60
b 45
c 30
d 15
313
314
______ ATMs are owned and managed by non banking entities to cut
transaction cost.
a Green label
b Red label
c White label
d Black label
Cash Budget method for assessment of working capital limit is used in case of
a Seasonal industries
b
c
d
e
Limits up to Rs.500000/Wholesalers
Kirana shops
None of the above.
315
MMID is
a Mobile money identification
b Mobile money identifier
c Mobile money identity
d Make Mobile Identification for debt
316
FIMMDA is
a Future Income Money Market and Derivatives Association of India
b Fixed Income Money Market and Development Association of India
c Fixed Income Money Market and Derivatives Association of India
d Fixed Investment Money Market and Derivatives Association of India
317
Income of ___ cannot be considered while arriving at Housing Loan eligibility.

a Friend
b Unmarried daughter
c Spouse
d Son
318
Loan to _______ cannot be classified as Priority Sector Advance.

a Retailer
b Business enterprise
c Transport operator
d Whole sale trader
319
Limitation period is extended by_________.

a Acknowledgement of debt by borrower
b Part payment by borrower
c Both (a ) & (b)
d Oral consent by borrower
320
Amount of wages paid to labour is shown in ______ account.

a Profit & Loss
b Balance Sheet
c Sales sheet
d Trading/Manufacturing
321
ASBA facility is for ____

a IPO
b Mutual Funds
c Insurance Policies
d Bank Deposits
322
BIAK in terms of IOI is

a Built-in authorization key
b Branch internal authorisation key
c Built-in authentication key
d Bank internal authentication key
323
Rearing earthworms is
a pomology
b olericulture
c pisciculture
d sericulture
e vermiculture
324
325
326
327
Saral is a sub-type of _______

a RINB
b Mobile Banking
c CINB
d ATM card
Packing credit is a form of _______ credit
a Post Shipment
b Pre-shipment
c Unsecured
d Term Loan
_________ is an example of Long Term source.
a Net Profit after tax
b Current Liability
c Cash
d Trade Creditors
_________________analysis is done to assess the capacity of a project to
absorb various shocks
a sensitivity
b Break even
c
d
e
Funds flow
Portfolio
None of the above.
328
Bank Guarantee is a _________ liability.

a Contingent
b Cash
c Term
d Current
329
Which amongst the following is a credit rating agency in India?

a Dun & Bradstreet
b CIBIL
c CARE
d IRDA
330
331
_______ account is suitable for financial inclusion.

a Power Pack
b No frill
c Power Gain
d Power Jyoti
Threshold limit for an individual is 25% of _______
a Turnover
b Annual income
c Savings
d Monthly Income
332
The Maximum balance that can be maintained in a Savings Bank Account

(other than in a Minors account) is Rs.
a 10.00 Lac
b No Limit
c 100.00 Lac
d 25.00 Lac
333
Document number SME-5 relates to _____.

a Arrangement Letter
b Hypothecation Agreement
c Guarantee Agreement
d Creation of equitable mortgage
334
For a foreign currency outward remittance transaction, __ rate will be applicable.
a
b
c
d
T.T. Buying
Currency
T.T. Selling
Travellers Cheques
335
________ deposit is maintained in foreign currency.

a NRE
b FCNR(B)
c NRO
d NRE Savings
336
Interest is not considered while calculating _______ ratio.

a Net DSCR
b Gross DSCR
c Actual DSCR
d Total DSCR
337
Information about other banks defaulter borrowers can be obtained from____

a Borrower
b Guarantor
c Detective Agency
d CIBIL
338
If an account is irregular for 30 days it will appear in ____ report.

a SMA 1
b SMA 2
c SMA 3
d Sub Standard Report
339
_____ blocks access of unauthorised programs to the computer system.

a Internet Explorer
b Web Browser
c Fire wall
d Network
340
Pari-Passu charge is created in case of __________ advances.

a Sole Banking
b Consortium
c NBFC
d Private bank
341
Mehsana is a breed of ____

a Cow
b Sheep
c Poultry Bird
d Buffalo
342
Norms for Income Recognition, Asset Classification and Provisioning were

implemented on the recommendations of _______ committee.
a Kalia
b Narsimhan
c Damodaran
d Goiporia
e None Of These
343
______ is a type of Post shipment Credit.

a Purchase of Bill
b Packing Credit
c Term Loan
d Bank guarantee
344
DSCR is a _____ ratio

a liquidity
b profitability
c activity
d solvency
345
Interest subvention scheme is applicable to Short Term crop Loan upto

Rs.________
a 100000/b 200000/c 300000/d 500000/e None of the above.
346
Gross working capital represents the total ____ required by the unit.
a Fixed Assets
b Current assets
c Current Liabilities
d Term Liabilities
347
Full form of FATF is ____

a Financial Action Task Force.
b Financial Action Task Fund
c
d
e
Finance Action Task Force

Financial Action Turnover Fund
None of the above.
348
A cash credit limit of Rs.500000/- is sanctioned. Margin on stock is 25%. As per

stock statement, value of stock is Rs.2000000/-. The drawing power will be
Rs._______
a 15,00,000/b 10,00,000/c 5,00,000/d 75,0000/e None of the above.
349
Risk categorization under KYC is done by

a branch
b Regional Office
c Zonal Office
d Head Office
350
The new cheque standards are referred as ____

a CTS 2011 standards
b CTS 2010 standards
c CTS 2009 Standards
d Cheque standards
351
Income tax refund order is valid for

a 3 months
b 2 months
c 1 month
d The month of issue
352
What is LGD in the context of Basel guidelines

a Loans given to defaulters
b Loan getting defaulted
c Loss given default
d Both (a) & (b)
353
For initiation of action under SARFAESI act, the balance outstanding including
unapplied interest should not be less than Rs._______
a 10,000/-
b
c
d
e
25,000/50,000/1,00,000/None of the above.
354
The Not Negotiable crossing is a direction to

a Paying Banker
b Agent
c Collecting Banker
d All of above
355
_____ is a proof of arrival of goods in India from foreign country.

a GR Form
b Bill Of Lading
c Bill of Entry
d Air way Bill
356
By definition currency appreciation occurs when

a Value of all currencies fall relative to gold
b Value of one currency rises relative to another currency
c Value of all currencies rise relative to gold
d Anyone of the above
357
Last digit of the deposit product code in CBS represent____

a Product
b Sub category
c Currency
d Market segment
358
Holder in due course is defined in

a Sec 9 of NI act
b Sec 9 of BR act
c Sec 9 of Indian Contract act act
d Sec 9 of Partnership act
359
Principles of sound lending are

a Safety and security
b
c
d
e
National policies and purpose of loan

The principles of diversification of risks
Profitability and liquidity
All the above
360
Bill of exchange is defined in section ____ of N.I. Act.

a 4
b 5
c 6
d 7
361
Clean Bill means_____

a Where document of title to goods is not enclosed
b Neatly typed
c Amount is in rounded rupees
d Bill under LC
362
A bill is drawn on 2nd July 2009, payable after 45 days after sight. The bill was
accepted on 10th July 2009. The due date is ____
a 15/08/2009
b 27/08/2009
c 16/08/2009
d 31/08/2009
363
_____ is an example of recovery through non legal remedy.

a Action as per section 138
b DRT
c Compromise
d Suit Filed
364
Document of title to goods are not required to be presented with _____ LC .

a Clean
b Documentary
c Inland
d Foreign
365
Issuance of bearer demand draft is prohibited by ____

a IBA Act
b RBI Act
c N.I. Act
d B.R. Act
366
Cash accrual = Net Profit +___

a Administrative expenses
b Selling Expenses
c Reserves
d Non cash expenditure.
367
Maximum Loan amount under Produce market Loan is Rs. ______ lakh.
a 10,00,000/b 20,00,000/c 25,00,000/d 50,00,000/e None of the above.
368
On Monday to working saturdays days the NEFT timings are _______

a 8.30 A.M. TO 6.30 P.M
b 9.00 A.M. TO 6.00 P.M
c 9.30 A.M. TO 6.30 P.M
d 7.00 A.M. TO 6.30 P.M.
369
Cases involving amounts upto Rs ____ lacs may be referred to Lok adalats
a 10
b 15
c 20
d 25
370
limitation period in case of Bankers right of general lien is

a Not barred by law of limitation
b 3 yrs from the date of lien
c 12 years from the date of lien
d 33 years from the cause of action
371
CRR is stipulated by RBI as per section ___ of RBI act.

a 42
b 43
c 44
d 45
372
Which of the following is not a type of mortgage?

a Usufructuary
b Anomalous
c Mortgage by Conditional sale
d
e
373
Traditional
None of the above.
When documents are executed abroad, they must be registered within

a 4 months after arrival in india
b 3 months after arrival in india
c 2 months after arrival in india
d 1 month after arrival in india
e None of These
374
P.M.E.G.P stands for

a Prime Ministers Employment Guarantee Programme
b Prime Ministers Earnings Guarantee Programme
c Prime Ministers Earnings Generation Programme
d Prime Ministers Employment Generation Programme
375
Banks maintain Currency Chests as an agent of __________

a RBI
b Government of India
c Finance ministry
d Currency Press
376
OLTAS means____
a On Line Tax Accounting System
b Online Trading Accounting System
c On Line Transaction Access System
d On Line Transfer Access System
377
All documents which are required to be registered should be presented at the

office of Registrar or Sub-Registrar within
a 1 month from the date of execution
b 2 months from the date of execution
c 3 months from the date of execution
d 4 months from the date of execution
378
The mortgage in which the mortgagee receives rents/profits accruing from the
property and appropriates the same towards interest or mortgage money is
a Usufructuary Mortgage
b English Mortgage
c Equitable mortgage
d Anomalous mortgage
379
PPF account is normally opened for a period of ____ months.

a 60
b 72
c 180
d 84
380
_______ is not a breed of cow.

a Jercy
b Gir
c Holstein
d Murrah
381
The date of settlement of Foreign Exchange transaction is referred to as

a Clearing date
b Swap date
c Value date
d Maturity date
382
Which of the following is not a foreign exchange exposure?

a Translation exposure
b Tax exposure
c Transaction exposure
d Balance sheet exposure
383
Which of the following is a current liability?

i] TL instalment due during the year. ii] borrowings from relatives repayable
immediately on closure of the business. iii] TL from bank iv] TL from private bank
a ii
b iii
c iv
d I
384
Maximum period of deposit under FCNR(B) is ____ year.

a 2
b 3
c 5
d 7
385
In case of hypothecation
a Possession and ownership is with the borrower.
b Possession and ownership is with the bank.
c Possession is with bank and ownership is with borrower.
d Possession is with borrower and ownership is with bank.
386
Current ratio of a unit is 4:1 and NWC is Rs.120000/-. The value of the current
assets is Rs. ________
a 1,00,000/b 1,60,000/c 2,00,000/d 2,50,000/e None of the above.
387
Long duration crop loan account will become NPA if it remains overdue for ___
crop season.
a 3
b 2
c 1
d 4
388
Mortgage is defined in section __ of ____________ act.

a 58, Transfer of Property
b 59, Transfer of Property
c 58 , Contract
d 59 , Contract
389
While fixing repayment of ATL ______ is taken into account.

a Break Even Point
b Current Ratio
c Debt Equity Ratio
d Net Incremental Income
390
____________ charge is created on standing crop.

a Set-off
b Lien
c Hypothecation
d Mortgage
391
Turnover method is used for _____

a Assessment of working capital limit
b Term Loan
c Bank Guarantee Limit
d Letter of Credit Limit
392
Claytons rule is applicable to

a Bank guarantees
b Termloans
c Demand loans
d Cash credit / overdraft a/cs
393
In case of an RD maturing for payment of Rs 1,50,000/- (Principal Rs. 1,20,000/and interest Rs 30,000/-) the TDS to be collected is Rs_______
a 3,000/b No tax is to be deducted
c 1,500/d 9,000/e None of the above.
394
Charge on stock in process is created by ____

a Hypothecation
b Lien
c Set-off
d Mortgage
395
What constitutes General Crossing?

a Two lines
b Two vertical lines
c Line across one end to other on the face of the cheque
Drawing of two parallel transverse (in cross direction) lines on the face of
d
the cheque
396
Limitation period for mortgage is ____

a 3 years
b 12 years from the date of mortgage.
c 12 years from the date of money becoming due.
d 10 years from the date of mortgage.
397
In case of under insurance of stock____ clause is applicable.

a General
b Average
c
d
e
Total
Miscellaneous
None of the above.
398
A numeric password received on a cell phone of a customer for authorisation of

online transaction is called as ____
a High security password
b Security Password
c SMS Password
d Mobile phone security password
399
Amount of loan against LIC policy is linked to ____

a Insured Amount
b Premium Amount
c Surrender value
d Face Value
400
Annual Sales turnover of a manufacturing unit is Rs.200 crore. As per NAYAK

committee recommendations, a limit of Rs. ___ lakh can be sanctioned to the
unit
a 50
b 30
c 100
d 40
401
Incentives to the exporters are allowed by _______

a DGFT
b RBI
c EEFC
d FEDAI
402
Banks code for customer service is __________

a Compulsory
b Mandatory
c Voluntary
d Optional
KEY TO THE OBJECTIVE QUESTIONS::

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SOME DESCRIPTIVE ANSWERS::

1
Letter of Pegging - is obtained from the lender of fund to Sub-ordinated debt

who declares that he will not withdraw the same during the currency of Bank loan
Factoring The Factor purchases the book debts / invoices of a company

and recovers from Debtors on due dates
Bridge Finance Is a short term loan with a tenor not exceeding 12 months
and are sanctioned to companies against expected equity flows/issues/Nonconvertible debentures/GDRs/foreign Direct investments
Channel Financing The finance provided to Authorised Dealers of OEM

(original equipment manufacturer)
External Commercial Borrowings The loans for a tenor of more than 3

years availed in Foreign Currency by Indian Corporates / firms from non
residential lenders.
Seed Capital A long term financial assistance extended by a financial institution

towards promoters contribution of Margin Money
Mezzanine Finance In case of the loan not repaid on time, the lender will be
having a right to convert the debt into equity.
Composite Loan It is having a feature of both term loan and cash credit. Once
the repayment fixed for term loan is repaid the account operates as a Cash credit.
Trust receipt The bank having taken the goods on Pledge delivers them to the
borrower on obtaining a letter of Trust who undertakes make payment to bank on
selling the goods.
10
Risk Assessment Model(RAM) Developed by CRISIL for calculating Credit

Risk while considering the Industry, Business, Management and Financial
risk parameters
11
Service Tax Negative list contains list of items exempted from Service Tax
12
G-Secs Bonds issued by Government of India / State Governments

representing the debt taken by Government from Public.
These securities are issued by The Public Debt issue department of RBI
They are also called as GILTS / gift-edged securities
13
Coupon rate - The rate of interest payable on G-Secs
14
Dated Securities G-Secs provide for payment of interest on specified dates
15
Contract Uberrimae Fidei Contract of utmost good faith
16
Insurable Interest - A person is said to have an insurable interest, when he is

liable to suffer pecuniary loss in case of any damage to the insured goods.
17
ESOP The facility provided by companies to their employees for purchasing their
own companys shares EMPLOYEE STOCK OPTION SCHEME limiting to
90% of purchase price of share or Rs: 20 lac whichever is lower.
18
Authorised Capital The maximum amount of capital, which the company is

legally authorized to raise.
19
Issued Capital It is that portion of Authorized Capital which is offered for

subscription (to public)
20
Subscribed Capital It is that portion of Issued Capital which is accepted /

agreed by shareholders to subscribe
21
Paid-up Capital It is the amount which actually paid by shareholders, out of the
amount subscribed by them.
22
Revaluation Reserve Fixed Assets are revalued at current market price and
new price appears on assets side. The increased is shown liability side under
Revaluation Reserve account.
23
Deferred Revenue Expenses Are incurred to have a long term impact on

business, are shown as assets and charged to P&L a/c spread over a period.
24
FIFO First in First out Method from latest purchases.
25
Negotiation of a bearer instrument is completed by mere delivery and of an order

cheque by endorsement and delivery
26
Floating Provisions The Banks board may lay down policiy for making
provision on the entire portfolio of advances or investments
27
CRGFT Credit risk guarantee fund trust for low income housing, set up under
indian Trust Act 1882.
28
Ante dated cheque A cheque bearing a date prior to the date of signing (or a
cheque bearing a date prior to the date of opening an account). It is valid and can
be paid during its validity period.
Earlier purchases are utilized first and stock is
29
Inchoate instrument It is a legally valid incomplete instrument. Eg: If Mr. X

presents a cheque which is not having date written on it, the Bank will refuse the
payment. But if he puts the date and presents, the same can now be paid.
30
Key employee policy - an insurance policy taken out by a business to

compensate that business for financial losses that would arise from the death or
extended incapacity of an important member of the business

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WITH BEST COMPLIMENTS FROM

ASSOCIATE BANKS OFFICERS ASSOCIATION

ASSOCIATE BANKS OFFICERS ASSOCIATION

The customer of a bank is defined in which of the acts

Immovable property of a public trust can be mortgaged if a prior permission is

Capital Work-in-progress is classified as

In what way a charge on stock in process is created?

Net Working Capital (NWC) is

Non-Current Assets - Current Liabilities

Operating Cycle refers to

Cash Accruals consist of

This is a financial arrangement whereby financial institution in the exporter

Garnishee Order is issued by

As per MSMED Act, 2006, a Micro Enterprise (Service) is a Unit

this is a financing arrangement under which an exporter extends credit to the

A minor can be admitted as a partner of a firm

Investments in Associate Concerns should be classified as

If a Company has Fixed Assets of Rs.10,000, Term Liabilities of Rs.5,000,

Tangible Net Worth (TNW) is

Total Outside Liabilities (TOL) is

Working Capital Gap refers to

Cheque can be crossed by

EPC is basically a WC finance and the assessment has to be made

__________ indicates the degree of viability of a project and influences in fixing

Every company shall have a Board of Directors consisting of individuals as

Ways and means advances mean

CGTMSE stands for

A differentiating feature between ACC & KCC is ___arriving at limit.

XOS statement is submitted by banks to RBI, which relates to:

Which of the following is true with respect to packing list

It must specify whether the shipment is prepaid or shall be paid at

Under Banking Ombudsman Scheme, the Banking Ombudsman can award

Fresh KYC documents are to be obtained in case of accounts transferred from

Under AML/KYC/PML Act, 2002, FIU stands for

Right to Information Act came into force with effect from

Which of the following is correct regarding a special mention account

Payment in due to course is defined under Sec. ______ of NI Act

A second LC is opened by the nominated bank in favour of second beneficiary

Tangible Net Worth is arrived by deducting _________ from Net Worth.

RBI had constituted a committee under the chairmanship of _______________

Risk that is associated with failure of internal processes of a bank s organization:

All dormant and inoperative accounts to be classified under

Counter Guarantee means a guarantee obtained

Exchange control authority in India is

SARFAESI is not applicable on which of the following

The documentary evidence for import transactions is________________

Term Loans are repayable out of

Rabi Crops are harvested in_________

CGTMSE provides coverage for

Account Payee Crossing is recognized under

Foreign Trade Policy is prepared by :

As per UCPDC, a Transferable LC may be transferred

LCs are not transferable

A Standby letter of credit is more similar to

The age at which the animal starts giving milk.

Acquisition of fixed assets is an example of:

Which of the following is a non-current asset

A hypothecation charge will become a pledge, if there is voluntary transfer of:

NRO Account is maintained in

For cash accruals, depreciation is added to net profit because depreciation is

A note of which a portion is missing or it is compr ised of more than two

Excess cash found in the Branch is credited to