Bank PromotionsMock Test Bank Promotion Mock Test-06 By gyanedu15 - January 20, 2021 2 86 Facebook Twitter Pinterest WhatsApp 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 lacb. Rs.1.33 lacc. Rs.1.50 lacd. Rs.1 lace. None of the above 2. Collateral security & margin in loan to agriculture exempted for loan: Rs.15000a. Up to Rs.10000b. Up to .100000e. Discretion of the bankc. Up to Rs.25000d. Up to Rs 3. Which of the following is the regulator and supervisor of depositories:a. IRDAb. RBIc. SEBId. PPFDA 4. What is the maximum extent of investment in plant & machinery for MSE ancillary units:a. Rs.250 lacb. Rs.300 lacc. Rs.500 lacd. Rs.750 lace. Rs.1000 lac 5. The primary dealers deal mainly with which of the following:a. Shares and debenturesb. Govt. securitiesc. Mutual fund unitsd. 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 accountb. 3 years from date of last debit of interest in the accountc. 3 years from date of documentsd. A to c, whichever is earliere. 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 moreb. Rs.25000 or morec. Rs.50000 or mored. More than Rs.25000e. More than Rs.50000 8. Which of the following expansion does match to the abbreviation:a. SSC- Special Credit Controlb. Ads- Authorized dealersc. OMO- Opposite market Operationd. All the above 9. Whenever RBI wants to reduce the liquidity in the banking system it can resort to which of the following:a. Repob. Reverse repoc. Reduction in the CRRd. 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 intelligenceb. Marketing technology systemc. Taking the required steps for effective marketing of their productsd. Marketing research systeme. All the above 11. Federal reserve Board is the regulator of banking system in:a. Indiab. Europec. United Statesd. 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 yearsb. 12 years from date of mortgage deedc. 3 years from date of mortgage deedd. None of the above 13. Lahiri Committee Recommendation relate to which of the following:a. Issue of units by Mutual Fundsb. Issue of Depository Receiptsc. Issue of Participation Certificates by Banksd. 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 receiptb. Stock exchanges of a country other than in which the listed company issued the depository receiptc. Stock exchanges of any country including in which the listed company issued the depository receiptd. 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 accountsb. He can execute a power of attorney in favour of a known person for operations in both the accountsc. He can give mandate or power of attorney for his personal accountd. 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 accounte. C and d 16. The process of segregation of ownership and trading rights of the members in a stock exchange is calleda. Mutualizationb. Demutualizationc. Rematerializationd. 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 sharesb. Cumulative preference sharesc. Participatory preference sharesd. 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 calleda. Coupon bondb. Convertible bondc. Preference bondd. 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 exchangea. initial public offeringb. Further public offeringc. Bonus issued. 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 calleda. Bonus issueb. Rights issuec. Private placementd. Qualified institutional placement 22. Which of the following is not correct in respect of targets within priority sectora. Weaker section target for Indian banks is 25% of priority sectorb. Micro enterprises credit target is 7.5% of ANBCc. Export credit is 12% of ANBC for Indian banksd. 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 issueb. Initial public issuec. Book building issued. Bonus issue 24. In which of the following types of fund, the investment is made exclusively in govt. securitiesa. Liquid fundsb. Gilt fundsc. Sector specific fundd. Index fund 25. In the ______, the subscription and repurchase is available on a continuous basisa. Growth fundb. Open ended fundc. Close ended fundd. Debt oriented fund 26. The legal set up of a mutual fund is in the form of aa. Joint stock companyb. Trustc. Partnership firmd. Limited liability partnership 27. When investment is made in other schemes of the same or different mutual funds, such fund is calleda. Index fundb. Gilt fundc. Fund of funds d. Mutual fundd. Mutual fund 28. Which of the following statement is correct regarding premium on life insurance policiesa. The premium rates for with profit policy are higher than the premium for without profit policyb. The premium rates for with profit policy are lower than the premium for without profit policyc. The premium rates for with profit policy are equal than the premium for without profit policyd. None of the statement is correct 29. Which of the statement is correct :a. To have tight control over insurance companies and ensure consumer protectionb. To promote market efficiency and to develop insurance marketc. To promote insurance market efficiency and ensure consumer protectiond. All the above 30. Which of the following transactions is backed by a letter of credit:a. Factoringb. Forfaitingc. Securitizationd. Leasing 03. Which of the following guarantees, is not a financial guaranteea. Bank guarantee for supply of goods on credit basisb. Bank guarantee in favour of customs authoritiesc. Bank guarantee in favour of tax authoritiesd. 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 followinga. Board of Directors of the bankb. Ombudsmanc. Reserve Bank of Indiad. Customer Service Committee of the Boarde. All the above 01. Which of the following can be taken as part of Off-balance sheet itemsa. Take out finance in the books of the taking over institutionb. Outstanding foreign exchange contractsc. Open position in goldd. 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 bea. Rs.40 lacb. Rs.60 lacc. Rs.20 lacd. Rs.100 lac 07. A letter of credit is defined in which of the following:a. Indian Contract Actb. Companies Actc. Payment and Settlement System Actd. None of these 08. The forfeiter is an intermediary betweena. Exporter’s bank and importerb. Importer’s bank and exporterc. Importer and exporterd. 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. Securitizationb. Factoringc. Forfaitingd. 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 calleda. Without recourse factoringb. With recourse factoringc. Advance factoringd. Back factoring 06. Credit risk does not take form of :a. Bank guaranteesb. Treasury operationsc. Cross border exposured. Equity price change 05. Credit risk emanates from a bank’s dealing witha. Individualsb. Corporatesc. Banksd. Any of the above 06. Market risk takes the form of which of the followinga. LC issued by a bankb. Foreign exchange ratesc. Error committed by a staff memberd. Any of the above 08. Under Basel -2, the supervisory review process is covered bya. Pillar-1b. Pillar-2c. Pillar-3d. None of these 01. The securitization transactions are covered under _____risk, in the Basel-2 frameworka. Credit riskb. Market riskc. Operational riskd. 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 capitala. Rs.90 crb. Rs.30 crc. Rs.12.50 crd. 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 crb. Rs.165 crc. Rs.135 crd. Rs.30 cr 03. Subordinated debt can be included in Tier-2 capital fund, only where it is with an original maturity ofa. Max 10 yearsb. Min 10 yearsc. Max 5 yearsd. 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 funda. Rs.100 crb. Rs.60 crc. Rs.20 crd. Nil 10. Which of the following is not part of operational risk under Basel-2 framework?a. Staff errorb. Failed systemc. Change in interest ratesd. 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 calleda. Allianceb. Mergerc. Acquisitiond. Consolidation Time is Up!