Bank Promotion Exam Practice Tests Set 1

A Hindu undivided family is governed by


Options are :

  • Indian Partnership Act, 1932
  • Indian Contract Act, 1872
  • Hindu Undivided Family Act, 1883
  • None of these

Answer :None of these

Bank Promotion Exam Practice Tests Set 10

A Company has been sanctioned overdraft limit of Rs. 1, 50,000/- against pledge of shares. In this case


Options are :

  • The charge must be register with the Registrar of Companies
  • The charge must be registered with the Controller of Capital issues
  • Registration of charge is not necessary.
  • The charge must be registered with the Registrar of Companies if the advance exceed 30% of the paid up share capital and free reserve of the borrowing company

Answer :Registration of charge is not necessary.

Simple Mortgage is one which 


Options are :

  • Undertakes a personal obligation to pay the mortgage debt and passing the right of sale of said property through Court
  • Means that no property is mortgaged
  • A simple letter from the mortgagor that he will pay the debt
  • Where in the possession of the property is transferred to the creditor. the debt hrough Court

Answer :Undertakes a personal obligation to pay the mortgage debt and passing the right of sale of said property through Court

In case a borrower signs with the left hand 


Options are :

  • A separate note stating the documents signed with left hand is kept with the documents.
  • Borrower is required to put his thumb impression also
  • It does not make any difference to validity of documents
  • None of these

Answer :A separate note stating the documents signed with left hand is kept with the documents.

Bank Promotion Exam Practice Tests Set 11

In case of bank documents which category of stamps are affixed 


Options are :

  • Judicial
  • Non Judicial
  • Judicial or non-judicial depending upon the nature of documents
  • Only embossed stamps
  • a, b & c

Answer :Non Judicial

An Export Bill for US $ 10,000 drawn under UC is negotiated by your bank and is submitted to the LC issuing bank for reimbursement. You are informed that the documents negotiated by your branch are forged. What is the liability of the negotiating bank


Options are :

  • The negotiating bank is liable as the documents are forged
  • Negotiating bank is not liable as bank is not liable for genuineness of the documents
  • The matter will be referred to International Chamber of Commerce.
  • None of the above

Answer :Negotiating bank is not liable as bank is not liable for genuineness of the documents

Which are the following documents you will call for disposing of the balances of deceased customer dying without will or nomination


Options are :

  • Certificate of controller of estate duty
  • Succession certificate
  • Letter of administration
  • Heirership certificate
  • Certificate from notary public

Answer :Letter of administration

Bank Promotion Exam Practice Tests Set 12

Clean Bill of Lading is


Options are :

  • Which bears no super imposed clause or notation which expressly declares defective condition of the goods and or packaging
  • Which cleanly contains the name of the consignees
  • Where the carrying charges are paid by the consignor and as such it is clean in respect of realising carrying cost from the consignee
  • None of these

Answer :Which bears no super imposed clause or notation which expressly declares defective condition of the goods and or packaging

The exchange rate to be applied for effecting remittance of an import bill is span>


Options are :

  • TT selling rate
  • Bill buying rate
  • Bill selling rate or Forward sale contract rate if already booked
  • Currency selling rate

Answer :Bill selling rate or Forward sale contract rate if already booked

Mr. A is the Guarantor to the loan sanctioned to Mr.B.  He wants to know the position of borrower’s account.  Bank should


Options are :

  • provide him with all the required information
  • refuse to provide with any information
  • indicate to the guarantor the extent of his liability only
  • none of the above

Answer :provide him with all the required information

Bank Promotion Exam Practice Tests Set 13

The right of guarantor to sept into the shoes of the creditor upon full payment of debt is called the right of


Options are :

  • Redemption
  • foreclosure
  • subrogation
  • appropriation

Answer :subrogation

Which one of the following is not considered as document of title to goods


Options are :

  • Bill of Lading
  • Railway Receipt
  • Lorry Receipt
  • None

Answer :None

Mr. A has availed a loan of Rs.5,000/- in 1991.  As he was not repaying the loan and absconding, the bank has written off the debt during 1996.  Recently, he has opened a savings account with you and the balance in the account is Rs.15,000/- on date.  One of your retired staff member has recognized him as a defaulter and informs you the same. Can you exercise you right of set-off


Options are :

  • A banker’s right of set-off is not available since the debt was written off and time barred
  • After obtaining due permission from the competent court, the bank can appropriate the amount
  • Bank can appropriate if the debt as well as deposit are in the same name, capacity and rights
  • obtain consent from the depositor and confirmation from controlling authority

Answer :Bank can appropriate if the debt as well as deposit are in the same name, capacity and rights

Bank Promotion Exam Practice Tests Set 14

Strong Room Fitness certificate will be issued by


Options are :

  • Bank’s civil Engineer
  • PWD Engineer
  • Any local architect, who is on the panel of the Bank
  • None

Answer :Bank’s civil Engineer

The limitation period for enforcement of a demand promissory note is


Options are :

  • three years from date of DP note a demand promissory note is
  • three years from the date of claim
  • three years from the date of first debit nd promissory note is
  • none

Answer :three years from the date of first debit nd promissory note is

Without consent of the legal heirs, a muslim can not dispose off by will, more than


Options are :

  • ¼ of his property
  • 1/3 of his property
  • ½ of his property
  • none

Answer :1/3 of his property

Bank Promotion Exam Practice Tests Set 15

A married woman can act as an executor or administrator


Options are :

  • with the help of her husband
  • with the consent of her husband
  • without the help of her husband
  • None

Answer :without the help of her husband

If one of the legal heirs does not attend personally to take delivery of assets of the deceased from the bank, he can execute


Options are :

  • Letter of Indemnity
  • Letter of authority
  • Letter of disclaimer
  • None

Answer :Letter of disclaimer

As per Sec.293 (1) of Indian Companies Act, a Company can raise loan upto an extent of


Options are :

  • its authorized capital
  • its paid up capital
  • Paid up capital + free reserves
  • None

Answer :Paid up capital + free reserves

Bank Promotion Exam Practice Tests Set 16

You have sanctioned a loan against pledge of stocks.  There are other creditors also who are claiming their rights over pledge


Options are :

  • The property shall be liable to their dues also
  • Bank’s right is priority
  • the charge will become paripassu
  • None

Answer :Bank’s right is priority

Partnership deed empowered any partner to mortgage the property.  However, Bank obtained mortgage deed signed by all the partners.


Options are :

  • because one partner will not have authority though it is specified in the deed
  • It is required under Partnership Act
  • It is required under Transfer of Property Act
  • None

Answer :because one partner will not have authority though it is specified in the deed

The unit is completing more time to complete one operating cycle. It means


Options are :

  • the unit requires working capital
  • working capital needs are low
  • working capital needs are high
  • None

Answer :working capital needs are high

Bank Promotion Exam Practice Tests Set 17

To be classified as a Sick Industrial Company, the company should be in existence for at least  


Options are :

  • 5 Years
  • 7 Years
  • 10 Years
  • None

Answer :7 Years

A guarantee issued by a bank assuring payment of instalments and interest on future due dates is known as:


Options are :

  • Financial
  • Deferred Payment
  • Performance
  • None

Answer :Deferred Payment

The best option of charge to finance a car for personal use by a doctor, by a bank would be


Options are :

  • Pledge
  • Mortgage
  • Hypothecation
  • None

Answer :Hypothecation

Bank Promotion Exam Practice Tests Set 18

The object for which a company has been formed is found in 


Options are :

  • Articles of Association
  • certificate of Incorporation
  • certificate of commencement of business
  • None

Answer :None

In a L/C backed mechanism, the advising bank’s responsibility is


Options are :

  • inform issuing bank as to whom to issue the L/C
  • Advise the buyer the dispatch of the documents by the seller
  • Inform beneficiary about the L/C
  • None

Answer :Inform beneficiary about the L/C

A Stale Bill of Lading is one


Options are :

  • Which is presented to the Bankers after 21 days from the date of shipment
  • Which is presented to the bankers after 15 days from the date of shipment
  • Which is presented to the Bankers after 20 days from the date of shipment
  • Which is a stolen Bill

Answer :Which is presented to the Bankers after 21 days from the date of shipment

Bank Promotion Exam Practice Tests Set 19

A Public Ltd. Co. applied for cash credit limit from United Bank of India, Kolkata. A Director of the company told the bank that the compa"y was having immovable property situated at Mumbai am! its registered office was at Chennai. Where will the charge with ROC be got registered?­


Options are :

  • Registration of mortgage charge should be with the Registrar of the Companies in whose jurisdiction the properties are situated
  • Registration of mortgage charge should be with the Registrar of the Companies where the head office of the bank is located
  • Registration of mortgage charge should be with the Registrar of the Companies at the place of the branch from where the limit is being sanctioned
  • Registration of mortgage charge should be with the Registrar of the Companies at the place where the company is having its registered office.

Answer :Registration of mortgage charge should be with the Registrar of the Companies at the place where the company is having its registered office.

To prevent slippage of accounts in NPA category, RBI has designed broad framework detailing preventive and corrective measures. One of the measures is introduction of new asset category between 'standard' and 'sub¬standard'. The new category is 


Options are :

  • Special Mention Assets category
  • Special Mention Standard Assets category
  • Special Mention Sub-Standard' Assets category

Answer :Special Mention Assets category

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