Bank Promotion Mock Test-06

Welcome to your Bank Promotion Mock Test-06

Your Name

Your Email

1. If a banker allows an advance by keeping 25% margin and the amount of loan is Rs.1 lac, the value of security would be:

a. Rs.1.25 lac

b. Rs.1.33 lac

c. Rs.1.50 lac

d. Rs.1 lac

e. None of the above

2. Collateral security & margin in loan to agriculture exempted for loan: Rs.15000

a. Up to Rs.10000

b. Up to .100000

e. Discretion of the bank

c. Up to Rs.25000

d. Up to Rs

3. Which of the following is the regulator and supervisor of depositories:

a. IRDA

b. RBI

c. SEBI

d. PPFDA

4. What is the maximum extent of investment in plant & machinery for MSE ancillary units:

a. Rs.250 lac

b. Rs.300 lac

c. Rs.500 lac

d. Rs.750 lac

e. Rs.1000 lac

5. The primary dealers deal mainly with which of the following:

a. Shares and debentures

b. Govt. securities

c. Mutual fund units

d. All the above

6. A firm has been allowed demand loan but it has not carried any operations in the account after disbursement of the full amount. What is the limitation period for this demand loan:

a. 3 years from date of last withdrawal in the account

b. 3 years from date of last debit of interest in the account

c. 3 years from date of documents

d. A to c, whichever is earlier

e. A to c, whichever is later

7. Inspection and processing fee in case of priority sector can be recovered if the amount of advance is:

a. Rs.10000 or more

b. Rs.25000 or more

c. Rs.50000 or more

d. More than Rs.25000

e. More than Rs.50000

8. Which of the following expansion does match to the abbreviation:

a. SSC- Special Credit Control

b. Ads- Authorized dealers

c. OMO- Opposite market Operation

d. All the above

9. Whenever RBI wants to reduce the liquidity in the banking system it can resort to which of the following:

a. Repo

b. Reverse repo

c. Reduction in the CRR

d. Reduction in the SLR

10. Deposits and advances of a bank branch have declined and the management of the bank wants to know the reasons for the same. This will fall under the purview of:

a. Market intelligence

b. Marketing technology system

c. Taking the required steps for effective marketing of their products

d. Marketing research system

e. All the above

11. Federal reserve Board is the regulator of banking system in:

a. India

b. Europe

c. United States

d. Britain

12. A loan secured by mortgage of immovable property is repayable on demand. The period of limitation in this case will be:

a. Three years

b. 12 years from date of mortgage deed

c. 3 years from date of mortgage deed

d. None of the above

13. Lahiri Committee Recommendation relate to which of the following:

a. Issue of units by Mutual Funds

b. Issue of Depository Receipts

c. Issue of Participation Certificates by Banks

d. Issue of Participatory notes by FIIs

14. Depository receipts are traded at:

a. Stock exchanges of the same country in which the listed company issued the depository receipt

b. Stock exchanges of a country other than in which the listed company issued the depository receipt

c. Stock exchanges of any country including in which the listed company issued the depository receipt

d. None of the above

15. Mr. Akash Khanna is having his personal saving account with United Bank’s Chandigarh branch. He is also the sole trustee of Khanna Charitable Trust and operates the account of the trust which of also maintained with the bank. In connection with an important personal work he proposes to proceed abroad for 6 months and seeks your guidance for smooth operations in the accounts:

a. He can give mandate in favour of some of his friend or relative for operations in the accounts

b. He can execute a power of attorney in favour of a known person for operations in both the accounts

c. He can give mandate or power of attorney for his personal account

d. He cannot delegate the powers to any one in case of trust account and could leave some cheque leaves property signed for use in case of trust account

e. C and d

16. The process of segregation of ownership and trading rights of the members in a stock exchange is called

a. Mutualization

b. Demutualization

c. Rematerialization

d. Dematerialization

17. What is the maximum extent up to which the foreign institutional investors can invest in the stock exchanges in India:

a. 24%

b. 26%

c. 49%

d. 74%

18. The _____ shares are the shares on which the dividend accumulates if it remains unpaid for a particular year:

a. Convertible preference shares

b. Cumulative preference shares

c. Participatory preference shares

d. Preferred shares

19. If a bond is issued with the provision that the investor has option to replace the bond with equity at a fixed price, it is called

a. Coupon bond

b. Convertible bond

c. Preference bond

d. Zero coupon bond

20. Which of the following paves the way for listing and trading of the issuer company’s securities. Whose securities are already not listed on the stock exchange

a. initial public offering

b. Further public offering

c. Bonus issue

d. Rights issue

21. When a company issues shares to a select group of investor which is neither a public issue nor a rights issue, it is called

a. Bonus issue

b. Rights issue

c. Private placement

d. Qualified institutional placement

22. Which of the following is not correct in respect of targets within priority sector

a. Weaker section target for Indian banks is 25% of priority sector

b. Micro enterprises credit target is 7.5% of ANBC

c. Export credit is 12% of ANBC for Indian banks

d. Agriculture credit target is 45% of priority sector credit for Indian banks

23. The concept of ‘discovered price’ is used, in the context of:

a. Rights issue

b. Initial public issue

c. Book building issue

d. Bonus issue

24. In which of the following types of fund, the investment is made exclusively in govt. securities

a. Liquid funds

b. Gilt funds

c. Sector specific fund

d. Index fund

25. In the ______, the subscription and repurchase is available on a continuous basis

a. Growth fund

b. Open ended fund

c. Close ended fund

d. Debt oriented fund

26. The legal set up of a mutual fund is in the form of a

a. Joint stock company

b. Trust

c. Partnership firm

d. Limited liability partnership

27. When investment is made in other schemes of the same or different mutual funds, such fund is called

a. Index fund

b. Gilt fund

c. Fund of funds d. Mutual fund

d. Mutual fund

28. Which of the following statement is correct regarding premium on life insurance policies

a. The premium rates for with profit policy are higher than the premium for without profit policy

b. The premium rates for with profit policy are lower than the premium for without profit policy

c. The premium rates for with profit policy are equal than the premium for without profit policy

d. None of the statement is correct

29. Which of the statement is correct :

a. To have tight control over insurance companies and ensure consumer protection

b. To promote market efficiency and to develop insurance market

c. To promote insurance market efficiency and ensure consumer protection

d. All the above

30. Which of the following transactions is backed by a letter of credit:

a. Factoring

b. Forfaiting

c. Securitization

d. Leasing

03. Which of the following guarantees, is not a financial guarantee

a. Bank guarantee for supply of goods on credit basis

b. Bank guarantee in favour of customs authorities

c. Bank guarantee in favour of tax authorities

d. None of the above

09. The cases of deceased depositors where the claims have been received and are pending beyond the stipulated period are required to be reported to which of the following

a. Board of Directors of the bank

b. Ombudsman

c. Reserve Bank of India

d. Customer Service Committee of the Board

e. All the above

01. Which of the following can be taken as part of Off-balance sheet items

a. Take out finance in the books of the taking over institution

b. Outstanding foreign exchange contracts

c. Open position in gold

d. All the above

02. Sales of an MSE unit for the previous year were Rs.200 lac. These are projected at Rws.300 lac for next year. As per Nayak Committee, the level of minimum bank working capital limits to be sanctioned would be

a. Rs.40 lac

b. Rs.60 lac

c. Rs.20 lac

d. Rs.100 lac

07. A letter of credit is defined in which of the following:

a. Indian Contract Act

b. Companies Act

c. Payment and Settlement System Act

d. None of these

08. The forfeiter is an intermediary between

a. Exporter’s bank and importer

b. Importer’s bank and exporter

c. Importer and exporter

d. Exporter & his bank and importer & his bank

04. The process of maintenance of account books, discounting of bills and collection of bills on due date is called by a person other than by the seller:

a. Securitization

b. Factoring

c. Forfaiting

d. Take out finance

10. In a factoring transaction, where the factor retains the right to recover the amount from seller, if payment is not recovered from the buyer of goods, is called

a. Without recourse factoring

b. With recourse factoring

c. Advance factoring

d. Back factoring

06. Credit risk does not take form of :

a. Bank guarantees

b. Treasury operations

c. Cross border exposure

d. Equity price change

05. Credit risk emanates from a bank’s dealing with

a. Individuals

b. Corporates

c. Banks

d. Any of the above

06. Market risk takes the form of which of the following

a. LC issued by a bank

b. Foreign exchange rates

c. Error committed by a staff member

d. Any of the above

08. Under Basel -2, the supervisory review process is covered by

a. Pillar-1

b. Pillar-2

c. Pillar-3

d. None of these

01. The securitization transactions are covered under _____risk, in the Basel-2 framework

a. Credit risk

b. Market risk

c. Operational risk

d. Liquidity risk

05. A bank has risk weighted assets of Rs.1000 cr and it has undisclosed reserves of Rs.30 cr. What is the maximum amount of such reserves that can be included Tier-2 capital

a. Rs.90 cr

b. Rs.30 cr

c. Rs.12.50 cr

d. Rs.7.50 cr

07. A bank has revaluation reserves of Rs.300 cr what amount can be included in the Tier 2 capital?

a. Rs.300 cr

b. Rs.165 cr

c. Rs.135 cr

d. Rs.30 cr

03. Subordinated debt can be included in Tier-2 capital fund, only where it is with an original maturity of

a. Max 10 years

b. Min 10 years

c. Max 5 years

d. Min 5 years

04. Bank – B has subordinated debt with remaining maturity of 17 months. These ne included in Tier-2 capital fund at ______discount?

a. 80%

b. 60%

c. 40%

d. 20%

02. Bank-A has subordinated debt of original maturity of 7 years and remaining maturity period of 8 months. If the value of such debts is Rs.100 cr, what amount will be taken in Tier-2 capital fund

a. Rs.100 cr

b. Rs.60 cr

c. Rs.20 cr

d. Nil

10. Which of the following is not part of operational risk under Basel-2 framework?

a. Staff error

b. Failed system

c. Change in interest rates

d. Break –down of internal controls

09. Bank A and Bank B have been combined into a single bank. Where bank A survived and Bank B lost its corporate identity. This is called

a. Alliance

b. Merger

c. Acquisition

d. Consolidation

PPB Mock Test-07

PPB Mock Test-06

Case Laws on Responsibility of Paying Bank (Legal Unit-06

Current Affairs for Bank Promotion

Public Sector Banks and Cooperative Banks ( Legal Unit-05)

2 COMMENTS

LEAVE A REPLY Cancel reply

Hot Topics

PPB Mock Test-07

PPB Mock Test-06

Case Laws on Responsibility of Paying Bank (Legal Unit-06

Related Articles

PPB Mock Test-07

PPB Mock Test-06

Case Laws on Responsibility of Paying Bank (Legal Unit-06

Quick Links

Must Read

PPB Mock Test-07

PPB Mock Test-06

Case Laws on Responsibility of Paying Bank (Legal Unit-06

Current Affairs for Bank Promotion

Popular Articles

PPB Mock Test-07

PPB Mock Test-06

Case Laws on Responsibility of Paying Bank (Legal Unit-06