Bank PromotionsMock Test Bank Promotion Mock Test-07 By gyanedu15 - January 23, 2021 0 66 Facebook Twitter Pinterest WhatsApp Welcome to your Bank Promotion Mock Test-07 Your Name Your Email 03. Fair Practice Code for lenders is a set of codes which banks are required to follow while dealing with borrowers. This code has been on the insistence of Indian industry after notification of which of the followinga. SARFAESI Act 2002b. RDDB Act 1993c. Legal Services Authority Act 1987d. None of the above 01. As per fair Practice Code for lenders, bankers should be constructive with a view to taking care of any lender-related genuine difficulty that borrower may face, for loans up to Rs.____a. Rs.25000b. Rs.1 lacc. Rs.2 lacd. Rs.5 lac 10. As per fair Practice Code for lenders, if a bank receives request from borrower for transfer of his loan account to another bank, the bank is to convey its consent objection within ______ from date of receipt of requesta. 30 daysb. 21 daysc. 15 daysd. 10 days 04. The Banking Codes and Standards Board of India was constituted on the recommendations of a Committee under Chairmanship of Sh_____a. SS Taraporeb. Talwarc. Goiporiad. Narasimham 07. A bank has acquired an immovable property but it has not been able to dispose it of within 7 years. What remedy is available to the banka. It can seek Central Govt. permission which is available for 4 yearsb. It has to seek State Govt. permission where it is located which has powers to extend the period of seven years by 5 yearsc. It can seek RBI permission which has authority to extend it by 5 yearsd. It can seek RBI and Company law Board Permissione. Bank will have to pay penalty for contravention of Statutory directives 05. Regional rural banks re licenced for banking business undera. A special statuteb. Companies Actc. Cooperative Societies Actd. Banking regulation Act 09. To take care of temporary liquidity problems of central and state govt., what kind of loan is given by RBIa. Treasury billsb. Dated securitiesc. Short duration bondsd. Ways and means advancee. All the above 06. Section 7(1) of RBI Act concerns with which of the following aspectsa. RBI authority to regulate the banksb. NABARD authority to regulate RRBsc. Govt. authority to issued directions to RBId. RBI authority to issue directions to banks in Indiae. Constitution of Board of Directors of banks 02. If an Indian bank has place of business in one state only and has office in Mumbai or Kolkata, what is true regard to the amount of minimum capitala. Rs.5 lacb. Rs.5 lac + Rs.25000 for each place of business outside Mumbai or kolkatac. Total amount not exceeding Rs.10 lacd. B and ce. A to c 08. What is the amount of ceiling on payment of brokerage or commission or discount, or remuneration on sale of shares by a banking companya. 1% of the authorized capitalb. 2% of the issued capitalc. 2.5% of the paid value of the sharesd. 5% of the subscribed share capitale. There is no ceiling 04. What %age of directors in a bank should have specialized knowledgea. 10%b. 24%c. 40%d. 51%e. 75% 03. When a chairman of managing director is removed from his post, he ceases to be a director and cannot be appointed as director during the next ______yearsa. 2 yearsb. 3 yearsc. 4 yearsd. 5 yearse. 8 years 63. What is the requirement u/s 25 of b R Act, to be fulfilled by the banks in Indiaa. Banks are to maintain 75% of the demand and time liabilities as assets in Indiab. These assets would be there as on last Friday of each quarterc. If such Friday is holiday, the preceding working day would be deemed to the relevant dayd. Quarter for the above purpose is of 3 monthse. All the above 10. Which of the following is not a correct statement ?a. Only scheduled banks are to maintain cash reserve u/s 42 of RBI Actb. Non- scheduled banks are to maintain cash reserve u/s 18 or B R Actc. Additional cash reserve can be prescribed to be kept by Central Govt.d. Interest is required to paid by RBI on cash balances maintained with it u/s 24 of B R Acte. Banking companies are required to maintain reserve fund u/s 17 of B R Act 07. Where a bank is prohibited to accept the deposit despite prohibition for not accepting the depositing the deposits, what is the punishmenta. Fine to extent of 20% of the amount of deposit, so acceptedb. Fine to extent of 50% of the amount of deposit, so acceptedc. Fine to extent of 100% of the amount of deposit, so acceptedd. Fine to extent of 200% of the amount of deposit, so acceptede. Deposit has to be returned back 02. A banking company fails to produce books, accounts and documents which it is bound to furnish under the provisions of RBI Act, what is the penalty as per Banking Law Amendment Act 2012a. It can be fined up to Rs.200000b. It can be fined up to Rs.5000c. If offence continues additional fine could be Rs.50000d. A and ce. B and c 09. A cheque of Rs.10000 issued by Ram Chander, one of your account holders, in favour of Shivaji is stolen by one Radhey Shyam who forges Shivaji’s signatures and endorses it in favour of Ganeshi lal, who obtain the payment from the bank. In this situation what would be bank’s positiona. Bank will be liable for the forgeryb. Bank will be liable only if the drawer proves that the instrument is forgedc. Bank will not be liable if Ganeshi Lal agrees to refund the amountd. Bank will get protection available to it under Section 85(1) NI Act and will not be liable for the payment made 05. Your customer issues a cheque for Rs.10000 in discharge of his liability towards Mr. Shayam Prasad or order, who endorses the same in favour of Mr. Sita Ram In blank. This chequea. Cannot be endorsed further as the blank endorsement restricts further negotiationb. Can be negotiated by Mr. Sita Ram without endorsement by him and by the mere deliveryc. Can be negotiated further by Mr. Sita ram full endorsement by him followed be deliveryd. Can be endorsed by him in blank onlye. None of the above 01. A saving bank customer of Modern Bank issues a chaque of Rs.1500 in favour of M/s swastic Enterprises or order. The cheque is paid by the bank on presentation through clearing with endorsement from the payee as ‘Svastika Enterprises’. The endorsement is also confirmed by the collecting bank. The drawer claims that the payment has not been made in due course and claims refund of the amounta. This is a payment on the guarantee by the collecting bank due to which paying bank’s position is safeb. The cheque is of a small amount,. Hence the bank should refund the moneyc. If customer is valuable, the customer’s request should be acceptedd. Endorsement is irregular due to which the paying bank is not protected under the provisions of Section 85 of NI Acte. All the above 06. A is holder of a cheque who endorses sans recourse to B and B to c and C to D who endorses it to E. cheque is dishonoreda. E can claim from B,C and Db. E cannot claim from any onec. E can claim from alld. E can claim from Ae. A And c 71. What is true with regard the liability of a director of a company , in case of dishonor of cheque, issued by a companya. All the directors are liableb. Nominated directors also liablec. Directors responsible for conduct of the business of the company including managing directord. Only those directors who are responsible for accounts maintenance of the companye. All the above 72. A customer of your branch Sham, deposits a cheque, which he steals from another person named Sham. Your branch collects this cheque (on which te customer is having a defective title) without being aware about the defecta. Collecting bank is negligentb. Collecting bank will get protection if it has complied the requirement u/s 131.c. Collecting bank is responsible for conversiond. Collecting bank is negligent but will get protectione. None of the above 73. If the holder of a cheque removes the crossing in such a way so that the same is not easily detectable (with naked eye) and get the payment after presenting it at counter of the drawee bank will get protection u/s … of NI Acta. 89b. 118c. 131d. 87 74. What is the amount of bank draft that can be issued by banks in cash under KYC directives of RBIa. Rs.50000 or lessb. Rs.50000 or morec. Less than Rs.50000d. More than Rs.50000e. More than Rs.1 lac 75. What is the time period during which the record of transactions is to be kept by banks under KYC directivesa. 15 yearsb. 12 yearsc. 5 yearsd. 10 yearse. Time frame prescribed by Central Govt. 76. Popular Bank sanctioned a loan in the name of B, which he had not been repaying. The bank has come to know that B is having an FDR account with national Bank in the same city. At the time of maturity of the term deposit , letter is received by national Bank from Popular Bank to remit money to credit in the loan accounta. The amount would be remitted by the National Bank to Popular Bankb. If indemnity bond id executed by Popular Bank, the amount can be remittedc. If consent is given by the depositor and his nominee, the amount can be remittedd. The amount cannot be remitted, as right of set-off is not available to Popular Banke. None of the above 77. Mr. X is maintaining few accounts with Popular bank with its Trichur branch. The bank branch receives an attachment order. Which of the following accounts, will be attached by the ordera. Overdraft limit of rs.0.30 lac, in which there is nominal debit balanceb. Overdraft limit against shares of a company, where there is some unavailed balance availablec. Amount of term deposit of rs.1 lac minus the balance including interest in the overdraft li limit of Rs.0.50 lac against this Term Depositd. Overdraft limit of rs.0.40 lac against Gold ornamentse. All the above 78. The net asset value of a mutual fund investment is calculated as undera. (market value of the securities / no. of units on a particular day) – the scheme expensesb. Market value of the securities less the scheme expenses / no. of units on a particular dayc. Market value of the securities / no. of units on a particular dayd. Market value of the securities plus the scheme expenses / no. of units on a particular day 79. A cheque drawn by a customer is presented for payment after a Garnishee order has been served on the account, the cheque will be returned with the reasona. Account garnishedb. Account attached by the courtc. Operations on the account stopped by the courtd. Garnishee order received 80. A bank authorized by the issuing company to issue GDR against issue of foreign currency convertible bonds or ordinary shares for the issuing company, is calleda. Custodian bankb. Depositoryc. Overseas depository bankd. Mandated bank 81. Universal Bank has granted cash credit limit of rs.10 lac to M/s Kala traders, a partnership firm. The account is showing a debit balance of rs.9.50 lac when the notice is received about the insolvency of one of the partners, which among the following steps should be initiated by the bank to safeguard its interest?a. Account should be recalled and party be asked to adjust to adjust the accountb. Operations in the account to be stopped and balance confirmation letter to be obtained from all the partnersc. Operations in the account to be stopped and notice of demand to be issued on the remaining partnersd. Notice about the outstanding dues to be sent to the official assignee in whom the estate of the insolvent partner has been vestede. C and d above 82. A partnership firm of XY&Z has been adjudged insolvent and its loan account is showing a debit balance of Rs.3 lac. Its partner Y is having a saving bank account in which there is balance of Rs.1.50 laca. The balance in partner’s account cannot be utilised for payment of dues of an insolvent firmb. The balance in partner’s personal account cannot be utilised as that balance belongs to official assigneec. The balance in partner’s account can be utilised by exercising the right of set off sue to his joint and several liabilityd. The balance can be utilised before it is objected to by the partnere. Any of the above 83. The provisions in respect of removal on ceiling on borrowing powers of the Board of a public limited company or subsidiary of a public limited company, are given in Section … of the Companies Act 2013a. 125b. 293c. 180d. 134 e. 45(e)d. 134 e. 45(e) 84. A cheque issued by a director of a Limited Company is presented for payment after death of the director which the bank pays, But the company raises the claim on the plea that bank cannot pay such cheque after death of the directora. Bank cannot pay the cheque as the drawer expiredb. Bank can pay the cheque as the company is still a legally competent person to contract signed as agent of the companyc. Bank should contact the Co. because loss will be of the company is case of disputed. B and ce. None of the above 85. In case of deferred payment guarantee. Normally _____ advance payment is made by the buyer of machinery to the supplier of the machinery, which is treated as margin by the banka. 5% to 10%b. 5% to 30%c. 10% to 15%d. 20% to 30% 86. Current assets of a company are Rs.800 lac and other current liabilities Rs.80 lac.. if the amount of net working capital is Rs.170 lac what will be amount of excess borrowing, as per 2nd method of lendinga. Rs.120 lacb. Rs.80 lacc. Rs.50 lacd. Rs.30 lac 87. Your branch has sanctioned cash limit of Rs.12 lac to M/s United Pharmacy. As at the close of July 31, it has been carrying stocks worth Rs.9 lac, sundry creditors of Rs.3 lac and book debts of Rs.6 lac. Bank has prescribed a margin of 25% on stocks and 30% on book debts, what is the maximum amount that can be withdrawn in the cash credit limit?a. Rs.8.70 lacb. Rs.8.30 lacc. Rs.12 lacd. Rs.6.75 lace. Rs.7.25 lac 88. The no. of which component of Central Board of Directors of RBI, does not matcha. Governor-1b. Dy. Governors-6c. Directors-15d. None of the above 89. In the balance sheet of a bank, the off-balance sheet items are shown asa. Assetsb. Liabilityc. Asset or liability as per its natured. Notes to the balance sheet 90. To make the cost of credit costlier, which of the following is done by RBIa. Decrease in bank rateb. Increase in repo ratec. Increase in SLRd. All the above 91. Foreign banks are to deposit in SEDF with SIDBI, the shortfall in respect ofa. Export advances target of 12%b. Overall priority sector target of 40%c. Micro & small enterprises target of 7.5%d. A and be. A, b and c 92. The issue of and servicing of govt. debt, is management bya. Commercial Banksb. Public Sector Bankc. Reserve Bankd. Govt. itself 93. Which of the following statement is correct in the context of red herring prospectusa. The price is mentioned in this prospectusb. The no. of shares being offered is mentioned in this prospectusc. The amount of issue is mentioned in this prospectusd. Details or price, no of shares and amount of issue is not mentioned in this prospectus 94. What is the maximum extent up to which a single investor can hold shares in an Indian stock exchangea. 1%b. 2%c. 5%d. 10% 95. ______ is a tax levied on all transactions code on the stock exchange at rates prescribed by Central Govt. from time to timea. Transactions taxb. Stock exchange transactions taxc. Securities transaction taxd. Securities tax 96. Who approves the appointment of the Chief Executive officer (CEO) of a private banka. Reserve Bankb. Board of the Bank concerned bankc. If it is a listed bank, then SEBId. Central Govt. in all cases 97. Which of the following organizations maintain the shares of companies in dematerialization formata. SEBIb. Depositoriesc. Registrars to the issued. Mutual funds 98. Which of the following Act, is meant to regulate the Indian Banking Systema. Negotiable Instrument Act, Banking Regulation Act, Companies Actb. RBI Act, Banking Regulation Act, Companies Actc. Banking Regulation Act, Prevention of Money laundering Actd. RBI Act, Banking Regulation Act 99. A _______ is a type of transferable financial instrument which is traded at local stock exchange of a country but represents a security (usually, in the form of equity) which is issued by a foreign publicly listed companya. American Depository receiptb. Depository Receiptc. Global Depository Receiptd. Foreign Convertible Bonds 100. The Urban Cooperative Banks are regulated bya. RBIb. NABARDc. Registrar of Coop Societies of the State Govt.d. SEBI Time is Up!