Principles And Practices of Banking(100 MCQ) Set-04 – JAIIB

Welcome to your Principles and Practices of Banking (4) 100 MCQ

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1. When banks deal with large no. of individual customers for deposits as well as loans (liabilities and assets). This is called ______ banking
2. Which of the following statement is not correct in the context of acceptance of deposits from the public
3. Other than banks, the deposits can be accepted by non-bank entities. Which of the following does not match with regard to regulation authority for such deposits
4. In wholesale banking, banks normally do not deal with which of the following
5. RBI undertakes govt. business. Which among the following statements is not correct in this connection
6. There are various restrictions on banks on the issues relating to (a) shareholding (b) directorship (c) voting powers (which of these is correct) under provisions of _____ Act
7. The facility that enables Indian exporters to extend term credit to importers of eligible goods at the post- shipment stage is called
8. U/s 35-A of Banking Regulation Act, a banking company, before allowing transfer of shares is required to obtain RBI acknowledgment if such transfer results in holding more than _____ % of the paid up capital of the bank
9. Mr. Des Raj issues a cheque favouring Mr. Raj Kumar, who endorses it in blank and delivers to Mr. Tahir Hussian. Mr. Tahir makes another endorsement in favour to Mr. Ravi Kumar recover
10. Which of the following is correct in the context of holding of share capital in an RRB
11. The contract notes that ate issued by Foreign Institutional Investors (FIIs) to their clients (not registered with SEBI), investing in Indian stock market
12. Which among the following relationship of bank and customer is not properly matched
13. Find out the incorrect statement regarding term of office of directors of a bank
14. The deposits to be accepted by the banks can be (a) demand deposits (b) deposits payable after a fixed period (c) deposits of money or articles (d) these can be from any person who offers money for that purpose. Which of these is correct
15. Under provisions of which of the following relating to account of a customer can be disclosed (a) as per banking practices (b) as per provisions of the law (c) as per implied or express consent of the customer (d) disclosure in public interest
16. ________ market provides a platform for trading of existing securities and price discovery thereof
17. A bank has possession of certain securities of the customer. Which of the following relationships in the context, is not correct
18. Under which of the following circumstances, a bank needs to give notice to the customer, before exercising right of set off
19. Certain category of banks in India are incorporated under the provisions of Companies Act 1956 which mainly include
20. Mr. Ashok Kumar issues a power of attorney in favour of Mr. Amit Kumar in July 31, 2012 and dies on December 03, 2012. Your branch receives (on Dec 26, 2012) through clearing house, two cheques, one of which is signed by Mr. Ashok Kumar, on Dec 12, 2012. Which cheques will be paid
21. A bank can exercise its right of general lien u/s 171 if (a) the goods are received in normal course of business (b) in the capacity of a banker (c) whether as security for loan or for safe custody (d) the loan is due for recovery
22. RBI is managed by a Board which consists of (a) governor (b) 4 deputy governors (c) other directors (d) all nominated by the Central Govt. and RBI. Which of these is correct
23. X received a bearer cheque from Y for valuable consideration andf in good faith. Actually Y had stolen this cheque from Z. X would get title of
24. Red Herring Prospectus is issued by a ____ for ______
25. The rule in Clayton case becomes applicable in banking transactions in the following cases (a) when death of a customer takes place (b) when the partner retires (c) when the guarantor withdraws his guarantee (d) when the director of a company dies who has been operating the account
26. Out of the following, which does not match
27. When an unlisted company issues fresh security for the first time, it is called
28. Which of the following relationship between customer and bank matches
29. X is associated with the following account maintained in your branch. The branch receives an attachment order. The order will be applicable on
30. A payee’s account crossed cheque in favour of X is presented by bank B to the drawee Bank-A for payment. In which of the following forms, the payment can be made
31. An investment plan of a mutural fund which is available for subscription and repurchase on a continue basis, is called
32. The mutual fund scheme that provides growth and regular income, is called
33. When a cheque is issued on a particular date and a date prior to the date of writing of the cheque is put, it is called
34. Banks do not issue demand drafts payable to bearer on demand despite the fact that Ni Act section 5, permits issue of a bill of exchange payable to bearer or order
35. All entities or persons engaged in the marketing and selling of mutual funds products are required to pass a certification test and obtain a registration number from
36. If holder of a cheque wants to file complaint in a court u/s 138 NI Act and other related provisions of NI Act, he can do so
37. Indian insurance industry is run on globally acceptable standards and for that purpose IRDA carries following functions: (which one is not correct)
38. Which of the following is not a type insurance business
39. Which of the following is not a feature of a saving bank account
40. Mr. P, a student is working on part-time basis for a Charitable trust. The trust makes payment for the part- time work and also makes payment of some stipend to help him to complete his studies. The payments are made to him by way of two separate cheques
41. In respect of deceased person, the bank stops payment on receipt of notice about death. The balance is payable to (a) survivor if it is joint E/S or F/S account (b) survivor and legal heirs of deceased person if it is a jointly operated account (c) to executor if it is a non-testate account (d) to nominee if it is a nomination account of single individual
42. Lien is the right to ____ of the _____ until repayment of the loan as per provisions of Sec _____ of Indian Contract Act
43. In a joint deposit account, which of the following is correct
44. Which of the following actions can be considered an action of a partner that would bind other partners
45. Bank can be held liable for conversion, in which of the following circumstance
46. Your branch maintains a joint account of A and B. B is declared insolvent. In such case, the balance lying in the account will be paid to
47. In case of import factoring, the functions like evaluation of buyers, collection of money on time is the job of
48. Which of the following statements is not correct in the context of dealing with a company
49. Where a minor is admitted for benefit in a partnership firm and he attains majority and decides to join the firm as partner, his liability begins from
50. In international factoring, the no. of factors that are involved in the factoring process is
51. A customer has balance in his saving bank account. In which of the following cases, the bank’s right of set of can be used for recovery of a loan
52. You have a current account of XYZ Limited, a public company, account is operated by its managing director and one more director singly. You receive a notice of death of managing director and another notice that liquidation process has been initiated against the company. Two cheques signed by them (one each) are received for payment. What will be bank do
53. Administrator is the person appointed by _____ to operate the account of a ______ (customer):
54. In which of the following situation, bank shall issue a financial guarantee
55. Your branch receives a garnishee order in the name of your customer Mr. Trivedi, who has the following deposits accounts with your branch. Which of these can be attached under this garnishee order
56. Which of the following amount can be sent abroad by an NRI from his NRO account (a) interest credited by the bank (b) amount of dividend received (c) principal in the account
57. In which of the following accounts, the funds (the principal and interest) can be repatriated outside India
58. The minimum capital to be retained by banks in the form of capital adequacy ratio, prescribed by Basel Committee is
59. For which among the following types of loans, the interest rate falls under deregulated category (a) housing loans (b) ceiling rate on NRE deposit (c) term deposit above one year (d) saving bank rate
60. Under Basel 2, the capital is maintained for which of the following risk
61. On the request of its customer B, Commercial Bank’s branch, transferred the account to its another branch. A cheque was presented on the first (transferor) branch which it returned with the reason ‘refer to drawer’. Customer claimed damages from the bank
62. 1st Pillar in Basel 2 relates to
63. A bill of exchange is different from a cheque in the following context (a) cheque is payable on demand but BoE can be payable on demand or in future (b) a cheque is drawn on a specific bank and a bill of exchange can be drawn on a bank or some other person also (c) BoE can be endorsed and crossed but a cheque can not (d) when cheque is dishonoured, notice of dishonor need not be sent to drawer but in case of BoE it is required to make him liable
64. The word OSMOS in the context of supervision of banks, stands for
65. Which of the following does not fall in Tier II capital
66. A crossing is direction of the drawer to ______ Which among the following is not correct
67. A customer of a bank placed certain funds with the bank for purchase of certain securities. Bank started the purchase of securities as per instructions of the customer. But before the purchase of securities for the entire amount could be complete, the bank failed. The relationship of the customer in this case with the bank is that of
68. A cheque of Rs.5000 was issued by X at 3.40 p.m. in favour of Y, who being a very respected customer of the bank obtained the payment around 3.50 p.m. after the business hours. At 4.50 p.m. X comes and gives instructions to the bank to stop the payment
69. Foreign exchange risk is part of which of the following
70. A bank gets two cheques (Rs.500 and Rs.21000) presented by the payee and drawer respectively after the business hours closing at 3 p.m
71. Which of the following is not a feature of a factoring transactions (a) in factoring the receivables are purchased by a factor company (b) in the balance sheet of the seller firm, the factored receivables are an off- balance sheet item (c) factoring is another name for bills discounting (d) registration of charge is required to be registered in factoring like bikks discounting
72. What is the time period during which the record of transactions is to be kept by banks under KYC directives
73. Which of the following is not a benefit of strategic alliance
74. In case of dishonor of cheques, if the action is initiated against the drawer u/s 138 NI Act, the service of summons can be by way of (a) normal postal procedure (b) courier approved by the court (c) speed post (d) eMail
75. The maximum amount of education loan that can be classified as part of priority sector loan, can be
76. Access to the account by a customer in case of ATM is through PIN, which stands for
77. Banks are required to become members of how of Credit Information Company
78. Which of the following does not match with regard to protection to the bank
79. The data/ information provided by a credit information company to member banks is called
80. A holder of a cheque can recover the amount from the drawer u/s 138 of NI Act where (a) the cheque is issued for discharge of liability (b) the cheque is dishonoured for insufficiency of funds (c) the cheque is presented within its validity period irrespective of maximum period. Which of these conditions is correct
81. An MSE unit with projected turnover of Rs.30 lac approaches your branch for sanction of working capital limits. What will be the minimum amount o working capital & margin to be assessed for this firm
82. Banking Codes and Standards Board of India, has bee constituted on the recommendations of
83. A micro enterprises having sales of Rs.36 lac and Rs.50 lac for the last two years respectively has projected sales of Rs.60 lac and wants to have a bank limit enhanced from existing Rs.8 lac to Rs.11 lac. What amount of limit it can be sanctioned and what is the margin requirement
84. Code for bank’s commitment to customer is a minimum standard of service to individual customer. It does not cover which of the following areas
85. A document is executed outside India and it requires payment of stamp duty in India. The duty can be paid on this documents within
86. A computer network is used for which of the following
87. Those terminals that are attached to a server in a computer network system, are called
88. Which of the following payment system location does not match
89. Devices are connected to a single continuous cable, on a computer net work, in case of
90. which of the following is not an important features of local area network
91. Which of the following is not a feature of a core banking system
92. An account in the name of minor M is opened by his father as ‘M u/g of F’. Which of the following statements in this regard is not correct
93. In a smart card the security features are (a) multiple pins (b) retinal pattern verification (c) dynamic signature verification (d) vein recognition
94. an electronic purse may have _____ number of storage space
95. the term ‘audit trail’ stands for
96. Section 19 (2) of Indian Partnership Act deals with which of the following aspects
97. Popular bank offers various services such as (a) saving bank accounts (b) recurring deposit account (c) credit card (d) demand draft. Which of these services to one product line
98. Which of the following functions is not carried by a Modem
99. A bank offers a facility to its credit card holders to use the unavailed balance in the credit card line as a personal loan at a lower rate of interest, where the customer feel that bank is offering something extra. This strategy of the bank is called
100. In which of the following circumstances operation in a current account in the name a firm can be allowed

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