Bank Promotion Exam Practice Tests Set 10

Find the total current assets of a firm from the following given items –

 Stock of Raw materials – Rs20.00lac, Sundry Creditors- Rs10.00lac, Finished goods- Rs30.00lac, Advance payment of tax-Rs2.00lac, Outstanding in Cash Credit account-Rs5.00lac, Debtors- Rs4.00lac, Stock-in process- Rs1.00lac 


Options are :

  • Rs 67.00lac
  • Rs 37.00lac
  • Rs 57.00lac
  • Rs 60.00lac

Answer :Rs 57.00lac

As per section 45(ZA) of Banking Regulation Act 1949:  


Options are :

  • Nomination facility has been granted for bank deposits
  • Guidelines have been laid down for election of Chairmen and Managing Directors of the banks.
  • Guidelines have been given for providing working capital to big units
  • Nomination facility is available for locker accounts

Answer :Nomination facility has been granted for bank deposits

The rate of depreciation (in %) on afurniture/safe vaults/ lifts  b] vehicles c] air cond/cooler/typewriter and the methods are respectively


Options are :

  • 10,20,15 st line method
  • 20,10,15 straight line method
  • 15,20,10 written down value
  • 10,20,15 written down value method

Answer :10,20,15 written down value method

Bank Promotion Exam Practice Tests Set 11

Advances shown in our balance sheet represent after netting out


Options are :

  • provisions and floating provisions
  • URI
  • amount recovered from borrower held in sundry account
  • amount received from CGTSI and ECGC
  • all the above

Answer :all the above

Which of the following is a current liability for the purpose of classification to analyse a balance sheet-  


Options are :

  • debentures dues after 2 years
  • term loan with a moratorium of 3 years
  • general reserve created only 3 months earlier
  • provision for disputed income tax liability

Answer :provision for disputed income tax liability

For a loan to be raised in case of need, a person’s assigns his insurance policy in favour of the bank Such relationship of the customer with the bank, will be of a/an: 


Options are :

  • pledger and pledgee
  • beneficiary and trustee
  • lender and borrower
  • assignor and assignee
  • assignee and assignor

Answer :assignor and assignee

Bank Promotion Exam Practice Tests Set 12

In the case of standard assets, the provision debited to Profit & Loss account is


Options are :

  • netted to advances
  • shown as sch5 ‘other Liab& prov”
  • no provision is made to standard asset and hence the statement is wrong
  • 50% is netted to advances and remaining shown as “other liab& prov”

Answer :shown as sch5 ‘other Liab& prov”

Net NPA is equal to


Options are :

  • gross NPA– provisions + other credit balances
  • gross NPA less provisions
  • gross NPA less other credit balances
  • gross NPA less( provisions + uri+ other credit balances unadjusted)

Answer :gross NPA less( provisions + uri+ other credit balances unadjusted)

A garnishee order is applicable to  


Options are :

  • Demand deposits
  • Time deposits subject to maturity
  • Recurring Deposit
  • a to c
  • b and c

Answer :a to c

Bank Promotion Exam Practice Tests Set 13

Rajan raised a loan and Harish was his guarantor and loan has become due, for payment which Rajan fails to pay. Bank had to recall the loan due to this. Harish maintains a SF account. The Bank:  


Options are :

  • Cannot exercise right of set-off against Harish’s account.
  • In case loan is recalled from Harish, the right of set-off can be exercised
  • Intervention of the court required
  • loan recall is not a necessary condition
  • None of the above

Answer :In case loan is recalled from Harish, the right of set-off can be exercised

What kind of an asset is goodwill as per the Indian Accounting Standards ?  


Options are :

  • intangible asset
  • fictitious asset
  • current assets
  • fixed asset not an asset

Answer :fictitious asset

What kind of an asset is goodwill as per the Indian Accounting Standards ?  


Options are :

  • intangible asset
  • fictitious asset
  • current assets
  • fixed asset not an asset

Answer :fictitious asset

Bank Promotion Exam Practice Tests Set 14

A money market mutual fund is most likely to invest in


Options are :

  • corporate bonds
  • equity shares
  • govt securities with maturity less than 1 year
  • all the above

Answer :govt securities with maturity less than 1 year

In which of the following, a term deposit receipt can be classified?  


Options are :

  • not negotiable but transferable
  • transferable actionable claim
  • not transferable actionable claim
  • a demand liability

Answer :not transferable actionable claim

There is an FDR of A and B but A dies before its maturity. B also dies one week after his death. FD amount is payable to:  


Options are :

  • Legal heirs of A
  • Legal heirs of B
  • Legal heirs of A and B
  • Legal heirs of the person who died later

Answer :Legal heirs of A and B

Bank Promotion Exam Practice Tests Set 15

Analysis of balance sheet of a partnership firm shows that its total net worth is more than the total outside liabilities.  


Options are :

  • it can be termed as a desirable situation
  • it can be termed as an excellent and desirable situation
  • it reflects the conservatism on the part of the management
  • it reflects risk appetite of the management

Answer :it reflects the conservatism on the part of the management

The risk weight attached to the NPA assets purchased from another bank is


Options are :

  • 50%
  • 0%
  • 100%
  • 25%

Answer :100%

In doorstep banking banks are permitted to


Options are :

  • Deliver cash/draft at the doorstep of individual customer against cash received at the counter/ request received through any secured channel
  • Deliver cash/draft at the doorstep of corporate customer/govt dept/psus against cash received at the counter/ request received through any secured channel
  • Both 1 & 2
  • Deliver only Draft to both but not cash

Answer :Both 1 & 2

Bank Promotion Exam Practice Tests Set 16

For the purpose of creation of equitable mortgage, who notifies the places for deposit of title deeds:  


Options are :

  • Central Govt.
  • Local self Govt.
  • President of India
  • Governor of the State
  • State Govt.

Answer :State Govt.

When no interest is specified in the instrument ,the interest amount due there on will be ---- in terms of sec 80 of NI act


Options are :

  • 12%
  • 6%
  • 18%
  • 24%

Answer :18%

Section 31 of RBI Act permits only RBI and Central Govt. to issue/draw: 


Options are :

  • bills payable to bearer on demand
  • promissory notes payable to bearer on demand
  • cheques payable to bearer on demand
  • a & b above
  • a to c

Answer :a & b above

Bank Promotion Exam Practice Tests Set 17

Under Know Your Customer guidelines of RBI, for which period the records are required to be maintained:  


Options are :

  • 1 years
  • 2 years
  • 4 years
  • 5 years
  • 10 years

Answer :10 years

Dollar has shown increase in its value compared to Indian rupee. Which of the following would be true ?  


Options are :

  • Exports from India will go up
  • Imports into India will become costly
  • Trade with other nations will be reduced
  • b or c
  • None of the above

Answer :Imports into India will become costly

Educational loans granted to individuals for educational purposes up to Rs. ------- for studies in India and   Rs. ------- for studies abroad.will fall under priority sector


Options are :

  • 7.5 and 15
  • 7.5 and 20
  • 10 and 20
  • 10 and 15

Answer :10 and 20

Bank Promotion Exam Practice Tests Set 18

Which of the following is/are correct


Options are :

  • no loan can be given against our own bank shares
  • A staff member can take normally Privilege leave on 3 occasions
  • no loan can be given against FDR of other banks
  • all the above

Answer :all the above

Income received from Reverse Mortgage under IT act (Tick The correct ONE)


Options are :

  • will not be treated as income
  • will not be treated as transfer
  • The sum received will be exempted from income tax
  • all the above

Answer :all the above

As per UCP 600, all credits are


Options are :

  • Revocable
  • irrevocable
  • as mentioned in the LC
  • Clean

Answer :irrevocable

Bank Promotion Exam Practice Tests Set 19

If a DP goes bankrupt, what happens to the dematerialized holdings of investors with the DP? 


Options are :

  • The assets of the investor may be used for paying off the creditors of the DP.
  • The appointed "court receiver" has the discretion to dispose off the assets of the investor in the manner he deems fit.
  • Depository has the discretion to dispose off the assets of the investor in the manner it deems fit.
  • The investor can opt for dematerialization or open his account with another DP and transfer his holdings

Answer :The investor can opt for dematerialization or open his account with another DP and transfer his holdings

An attachment order of Rs.80000 on a partnership firm is received, whose current a/c shows a balance of Rs.8000. The individual accounts of the partners A, B and C are showing credit balance of Rs.40000, Rs.34000 and Rs.2500 respectively. To meet the payment stated in the order, how much amt will be payable from A’s account ?  


Options are :

  • Rs.32500
  • Rs.35500
  • Rs.37500
  • Rs.40000
  • Rs.39500

Answer :Rs.35500

M/s Rahim Khan and Company import certain goods and after payment of the documents to the bank, send the shipping documents to their clearing agents M/s Shoab Clearing Agents with the instruction that they may dispose of the goods and also stipulate the minimum rate for which these goods can be sold. The clearing agents sell the goods for a price little less than the stipulated price. M/s Rahim Khan and Company claim the return of the goods from the buyer:  


Options are :

  • since the clearing agents have sold the goods for a price lower than the stipulated one, the buyer will have to return the goods.
  • since the clearing agents have sold the goods at a lower price without seeking confirmation from the principals, the goods will have to be returned
  • the buyer cannot be forced to return the goods, since they do not have any notice of the condition stipulated by the principals
  • the buyer cannot be forced to return even if he had the information about the condition
  • none of the above

Answer :the buyer cannot be forced to return the goods, since they do not have any notice of the condition stipulated by the principals

Bank Promotion Exam Practice Tests Set 2

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