Bank Promotion Exam Practice Tests Set 11

“Four eyes concept” means-


Options are :

  • opening and verifying account by one person two times
  • opening and verifying account by electronic device
  • opening and verifying account by two different persons
  • rejecting to open the account

Answer :opening and verifying account by two different persons

Bank Promotion Exam Practice Tests Set 12

The three pillars in achieving social transformation are 


Options are :

  • state government/the formal financial system/community base organization and NGOS
  • money lenders/credit societies/RRBS
  • primary cooperative societies/development coop banks /state coop banks
  • none of the above

Answer :state government/the formal financial system/community base organization and NGOS

A bill of exchange is drawn by M/s Kasturi Lal and Sons on M/s Shiva Traders in consideration of purchase  of goods, Mr. Shayam Kumar being its payee. Shayam Kumar endorsed the bill in favour of Mr. Shanti Prakash who had endorsed it in blank. It is stolen by Mr. Sudhir Phatke, an employee of Shanti Prakash and delivered to M/s Dyal Traders for value, but it is dishonoured on presentation for payment. From whom can M/s Dyal Traders recover the amount on the bill?  


Options are :

  • From Mr. Shanti Prakash
  • From M/s Shiva Traders
  • From M/s Kasturi Lal & Sons
  • From Shyam Kumar
  • From all the above

Answer :From all the above

You buy something at a place where price is low and simultaneously sell the same thing where price is high is known as


Options are :

  • hedging
  • speculating
  • Arbitraging
  • option

Answer :Arbitraging

Bank Promotion Exam Practice Tests Set 13

Credit Bank maintains a current account of M/s Chitam Enterprises in which the firm deposits a cheque of Rs.52000. On careful examination, the bank finds that the words `non-negotiable’ are written on lower part of the cheque without the parallel transverse lines. The concerned officer of the bank is not sure about whether to accept it for collection or not:  


Options are :

  • it is uncrossed instrument and two parallel transverse lines should be drawn
  • it is not a clear direction from the drawer due to which the cheque should not be accepted for collection
  • the words `not-negotiable’ can be written without parallel lines. But this will not be considered as crossing. It can be accepted for collection.
  • the transferability of the instrument has been affected due to these words, due to which the instrument should not be accepted.
  • none of the above

Answer :the words `not-negotiable’ can be written without parallel lines. But this will not be considered as crossing. It can be accepted for collection.

Your branch receives a dividend warrant of Rs.560 in favour of one Mrs. Rama Devi presented by State Bank in clearing. On the back side of the dividend warrant, it is stated that payee’s discharge is needed but the payee has not signed the same in giving discharge.  


Options are :

  • the dividend warrant will be returned unpaid as the requirement of discharge has not been met, which the drawer had imposed. Payment if made, will not be a payment in due course.
  • the dividend warrant will be returned as it has been presented by another bank which has not given its confirmation
  • the dividend warrant will be paid without discharge from the payee, as such discharge is not a legal requirement
  • the dividend warrant will be paid after confirmation from the collecting bank
  • none of the above

Answer :the dividend warrant will be returned unpaid as the requirement of discharge has not been met, which the drawer had imposed. Payment if made, will not be a payment in due course.

The white portion in the bank note is known as-


Options are :

  • security mark window
  • water mark window
  • blank window
  • space for writing window

Answer :water mark window

Bank Promotion Exam Practice Tests Set 14

Government expenditure/tax policy is referred as


Options are :

  • Fiscal policy
  • monetary policy
  • government policy
  • exchange rate policy

Answer :Fiscal policy

Which of the following is the measure of NARROW MONEY


Options are :

  • M0
  • M1
  • M3
  • M5

Answer :M5

Universal Bank is approached by Sameer, a 17 old boy with his PAN card and other necessary information for opening a current account. He is having substantial investments in shares and receives regular dividend. His father has recently expired and his father’s investment will also be transferred in his name in future:  


Options are :

  • the account cannot be opened as it exposes the bank to undue risk
  • the account cannot be opened as it is for share transactions
  • the current account can be opened by the minor as he can draw, negotiate and give valid discharge
  • the current account can be opened by Sameer alongwith his mother, if she is willing to do the same
  • none of the above

Answer :the current account can be opened by the minor as he can draw, negotiate and give valid discharge

Bank Promotion Exam Practice Tests Set 15

What is the no. of minimum and maximum shareholders in a public limited joint stock company:  


Options are :

  • minimum 2 maximum 7
  • minimum 3 maximum 50
  • minimum 4 maximum 50
  • minimum 7 maximum 50
  • minimum 7 maximum no ceiling

Answer :minimum 7 maximum no ceiling

Solvency margin is related to


Options are :

  • banking companies
  • Insurance companies
  • Financial companies
  • non financial companies

Answer :Insurance companies

Cash transaction report is sent to


Options are :

  • RBI
  • CBDT
  • CONTROLOING OFFICE
  • FIU-IND

Answer :FIU-IND

Bank Promotion Exam Practice Tests Set 16

Which of the following is a situation that can be termed as negative working capital?  


Options are :

  • when current assets are equal to current liabilities
  • when current assets are less than current liabilities
  • when current assets are more than current liabilities
  • when there are losses and current ratio is 1:1
  • when the current ratio is below the ideal ratio of 1.33:1

Answer :when current assets are less than current liabilities

As per recent guidelines, if a locker is not operated for more than--------- year in case of High Risk category customers, the bank can either advise him to operate or surrender the locker


Options are :

  • 3 years
  • 5 years
  • 1 year
  • discretion of banks

Answer :1 year

Risk arising from failure of computer system and loss of data is:  


Options are :

  • credit risk
  • system risk
  • liquidity risk
  • operational risk
  • computer risk

Answer :operational risk

Bank Promotion Exam Practice Tests Set 17

On which among the following, a garnishee order is not applicable?  


Options are :

  • funds in the account at the time of receipt of garnishee order
  • term deposit receipt which is yet to mature
  • recurring deposit the maturity of which will be 3 months after
  • a cheque realization advice that has not been credited to the account
  • amount deposited by the customer after receipt of the garnishee order

Answer :amount deposited by the customer after receipt of the garnishee order

Book building: 


Options are :

  • is used by stock exchanges for trading as it is more efficient than the traditional open outcry system.
  • is used by speculators to artificially increase share prices.
  • is used in the public issue process for efficient price and demand estimation for the issuer
  • is used by bookies in horse racing

Answer :is used in the public issue process for efficient price and demand estimation for the issuer

A will executed can be registered


Options are :

  • within 3 months of its creation
  • within 4 months of its creation
  • within 3 days of its creation
  • if desired( not compulsory) at any time after creation

Answer :if desired( not compulsory) at any time after creation

Bank Promotion Exam Practice Tests Set 18

Which of the following are compulsorily to be registered


Options are :

  • immovable property
  • gift of immovable property
  • will
  • power of attorney
  • all the above
  • 1and 2 only

Answer :1and 2 only

Which of the following is true in case of pipeline flows in the name of deceased depositor


Options are :

  • credits can be accepted
  • the survivor/nominee can authorize the bank to open an account ‘’estate of----- the deceased and credit the proceeds without allowing withdrawals
  • the survivor/nominee can authorize the bank to return the pipeline flow with reasons ‘a/c holder deceased ‘to to the remitter
  • 2 & 3

Answer :2 & 3

A mortgagor sells the property to the mortgagee under the condition that the sale would become absolute on fulfillment of specific conditions:  


Options are :

  • This mortgage by conditional sale
  • This is English mortgage
  • This is a sale cum mortgage transaction
  • This is a sale with promise to buy back
  • a and c

Answer :This mortgage by conditional sale

Bank Promotion Exam Practice Tests Set 19

Who can deposit the title deed with the bank for creating an equitable mortgage:  


Options are :

  • Owner
  • His authorised agent
  • a person directed by the court
  • a and b
  • a to c

Answer :a and b

Garnishee order will be applicable to accounts if the relation between the banker and customer is 


Options are :

  • Debtor and creditor
  • creditor and debtor
  • agent and principal
  • bailor and bailee

Answer :Debtor and creditor

A returning non-resident Indian wants to open an account with you but wants to be sure about what can be repatriated by him in case of need.  


Options are :

  • no repatriation allowed
  • only interest can be repatriated
  • only principal can be repatriated
  • principal and interest both can be repatriated
  • none of the above

Answer :principal and interest both can be repatriated

Bank Promotion Exam Practice Tests Set 2

A.B and C are having a saving account with operational instruction A/S.Now A & B come to the branch and gives in writing that the bank should not allow C to operate the account.You will


Options are :

  • make the operation of the account as ALL THREE JOINTLY
  • accept and will not allow C to operate
  • Advise A& B to bring a stay from court
  • instruction given at the time opening account will remain in force unless revoked jointly by all the account holders and hence the instruction will remain A/S

Answer :instruction given at the time opening account will remain in force unless revoked jointly by all the account holders and hence the instruction will remain A/S

Find the odd man


Options are :

  • paid up capital
  • statutory reserves
  • other free reserves
  • revaluation reserves

Answer :revaluation reserves

What is the relationship between a banker and payee of a demand draft


Options are :

  • debtor and creditor
  • trustee and Beneficiary
  • agent and principal
  • bailor and bailee

Answer :trustee and Beneficiary

Bank Promotion Exam Practice Tests Set 1

What is the relationship between a banker and payee of a demand draft


Options are :

  • debtor and creditor
  • trustee and Beneficiary
  • agent and principal
  • bailor and bailee

Answer :trustee and Beneficiary

The back office of a bank has failed to exercise a forward contract due to oversight. The risk suffered by bank is


Options are :

  • operation risk
  • market risk
  • settlement risk
  • counterparty risk

Answer :operation risk

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