Bank Promotion Exam Practice Tests Set 13

Your current account Holder M/S Sangeeta trading company wants your branch issue a time deposit for Rs 100000/- favouring  airport Authorities of India for an earnest money in a bid. You will issue the Time deposit as


Options are :

  • M/S Sangeeta trading co A/C airport authorities of India
  • M/S Airport authorities of India a/c sangeeta trading co
  • Airport authorities of India
  • M/S Sangeeta trading co

Answer :M/S Sangeeta trading co A/C airport authorities of India

Bank Promotion Exam Practice Tests Set 14

In the above question for payment on maturity of deposit, you will require the discharge of


Options are :

  • both
  • only your account holder
  • Only Airport authorities of India
  • any one

Answer :only your account holder

Your customer has drawn a cheque favouring Mrs Sangeetha or Bearer.You find at the back of the cheque one blank endorsement by MRs Sageeta and follwed by a full endorsement as”pay to Mr RAM KUMAR    with signature of MR seetharam. Now the cheque is presented by Mr kalian singh which is otherwise in order.Now you will


Options are :

  • pay to MR kalian singh
  • You will pay only to Mr seetharam
  • you will pay to Mrs sangeetha only
  • Return the cheque as it is irregularly drawn

Answer :pay to MR kalian singh

CENVAT CREDIT is related to


Options are :

  • new credit scheme launched by our bank
  • new credit scheme launched by central government for farmers
  • service tax
  • new credit scheme of NABARD

Answer :service tax

Bank Promotion Exam Practice Tests Set 15

Guarantee issued to constituents is classified in Balance sheet as


Options are :

  • asset
  • reversed on closing day and hence balance will be Nil
  • contingent liability
  • liability

Answer :contingent liability

Documents executed in India are to be stamped


Options are :

  • before execution
  • at the time of execution
  • after the execution
  • 1& 2

Answer :1& 2

In an HUF, there is one male major member having two minor sons. After his death who will function on behalf of the Karta of HUF:  


Options are :

  • Eldest son
  • Youngest son
  • Natural guardian of the eldest son
  • guardian of the eldest appointed by court if there is no natural guardian
  • c and d

Answer :c and d

Bank Promotion Exam Practice Tests Set 16

A Hindu soldier gives an oral will while he is fighting on Indo-Pak border. Such wills are called:  


Options are :

  • oral will
  • invalid will
  • privileged will
  • unprivileged will
  • a and c

Answer :privileged will

While opening account of executors and trustees to estate of deceased person, bank should scrutinize 


Options are :

  • trust deed
  • probate
  • orders of charity commissioner
  • letter of administration

Answer :probate

In case of wrongful dishonour of a cheque by the  banker


Options are :

  • the holder can claim from drawee bank
  • the holder can claim from collecting bank
  • the remedy for holder is against drawer
  • holder can claim from drawee bank, collecting bank , drawer

Answer :the remedy for holder is against drawer

Bank Promotion Exam Practice Tests Set 17

Which of the following can endorse a negotiable instrument


Options are :

  • A minor
  • married women
  • an illiterate person
  • blind persons
  • all of them

Answer :all of them

Which of the following can not be partner in a partnership firm


Options are :

  • HUF
  • INDIVIDUAL
  • COMPANY
  • ANOTHER PARTNERSHIPFIRM
  • 1 & 4

Answer :1 & 4

Investment fluctuation reserve would be classified by a bank for the purpose of capital adequacy ratio under:  


Options are :

  • tier I capital fund
  • paid up capital
  • tier II capital fund
  • tier III capital fund e at the discretion of the bank

Answer :tier I capital fund

Bank Promotion Exam Practice Tests Set 18

A and B have a FDR with your branch. Now they jointly request you to replace their names by P and Q. You will


Options are :

  • NOT AGREE
  • AS it is signed by both you will agree
  • You will agree provided if P or Q is the nominee
  • Agree by taking the consent of P and Q

Answer :NOT AGREE

The minimum period for bank time deposit is 


Options are :

  • 15 days
  • 7 days
  • 30 days
  • 45 days

Answer :7 days

Banker need not produce the original books in the court. A certified copy will be acceptable as per


Options are :

  • NI act
  • BR act
  • Indian evidence act
  • RBI act

Answer :Indian evidence act

Bank Promotion Exam Practice Tests Set 19

Who can act as natural guardian in respect of a Hindu Minor:  


Options are :

  • father alone
  • mother along with father
  • father and after his death mother
  • grand-father e b and c

Answer :father and after his death mother

Which kind of crossing restricts transfer of bill of exchange


Options are :

  • general crossing
  • special crossing
  • not negotiable crossing
  • A/C payee crossing
  • none of these

Answer :none of these

A customer deposits a cheque and the collecting banker credits the amount of cheque before it is realized .Now  as per NI ACT the collecting banker is 


Options are :

  • holder for value
  • holder in due course
  • holder
  • trustee

Answer :holder in due course

Bank Promotion Exam Practice Tests Set 2

An order cheque is converted into bearer and a bearer cheque is converted in to order. Which is a material alteration


Options are :

  • both
  • none
  • order to bearer
  • bearer to order

Answer :order to bearer

X and Y maintain a current account with operational instruction E/S. X becomes insolvent. A cheque signed by Y is presented for payment .It will be in order 


Options are :

  • to pay the cheque
  • return the cheque
  • pay the cheque after confirming from X

Answer :return the cheque

X, y and z are having a current account with instructions A/S. Z and Y produce the death certificate of Mr X and insist for payment. you will pay


Options are :

  • to legal heir of x , y and z jointly
  • y and z jointly
  • split the amount and pay equally to legal heir of x ,y and z

Answer :y and z jointly

Bank Promotion Exam Practice Tests Set 1

The account holder X appoints Y as his attorney to operate the account. A cheque issued under the signature of x was counter-mandated by Y. Can the bank accept the instruction


Options are :

  • No
  • Yes
  • since x has already given power of attorney to y, he can not sign the cheque and hence the cheque is to be returned if presented

Answer :Yes

Mr P is having FDR maturing on 14-04-2015.Mr Q is his nominee.Mr p expired on 14-02-15.Mr Q claims the balance on 14-10-2015 by producing the death certificate of MR P. Now you will pay overdue interest for 6 months


Options are :

  • at savings rate prevailing on 14-04-2015
  • at time deposit rate for 6 months as on 14-04-2015
  • no overdue interest is payable as it is not renewed
  • Refer to Regional Office

Answer :at time deposit rate for 6 months as on 14-04-2015

In terms of sec 144 of NI act ,the mode of sending summons can be by


Options are :

  • speed post
  • authorized courier of court
  • personal messenger only
  • 1 & 2

Answer :1 & 2

Bank Promotion Exam Practice Tests Set 10

Which of the following will come under “ deficiency of service’ of bank as per consumer protection act


Options are :

  • failure to refund deposit amount on maturity
  • non refunding the money to purchaser on account of loss of travelers cheque
  • delay in crediting pension
  • not intimating the depositor when the cheque is misplaced accepted in clearing
  • all the above

Answer :all the above

Global Bank is having a current account of M/s Ruchi Enterprises and a cheque of Rs.13500 is presented through clearing, drawn in favour of Mr. Ramesh. Through an oversight the cheque is dishonoured wrongfully. When information about this dishonour is received by Mr. Ramesh, he sends a notice to the Global Bank for wrongful dishonour and claims damages. What would you do with this notice?  


Options are :

  • Bank should contact Mr. Ramesh for withdrawls of the notice for damages.
  • Banks should contact the drawer and ask them to prevail upon the payee for withdrawal of the notice
  • Bank can ignore this notice as the bank is not liable for such damages to the payee
  • Bank is liable to the drawer of the cheque and no one else
  • c and d above

Answer :c and d above

What is to be checked before allowing operation in a safe deposit locker


Options are :

  • signature and operational instructions
  • password
  • whether rent is due
  • all the above

Answer :all the above

Bank Promotion Exam Practice Tests Set 11

When does a Loan granted for long duration crop becomes NPA?


Options are :

  • If the installment of principal remains overdue for 2 crop seasons
  • If the interest remains overdue for 2 crop seasons
  • If the installment of principal or interest remains overdue for 2 harvest season or two half year whichever is earlier
  • If the installment of principal or interest remains overdue for 1 crop season

Answer :If the installment of principal or interest remains overdue for 1 crop season

A C/C account becomes NPA 


Options are :

  • when the account becomes out of order
  • if the account remains 90 days out of order
  • if the account is over due for more than 90 days
  • when the security is nil

Answer :when the security is nil

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