Bank Promotion Exam Practice Tests Set 14

An a/c where regular/adhoc limits have not been reviewed/renewed within 180 days from the due date a/c will be treated as


Options are :

  • Irregular
  • Standard
  • NPA
  • Borderline NPA

Answer :Irregular

Bank Promotion Exam Practice Tests Set 15

A trading a/c can be considered for restructuring


Options are :

  • before commencement of commercial production
  • after commencement of commercial production
  • after commencement of commercial production and before classification as substandard
  • not eligible

Answer :not eligible

Corporate Bank had opened a saving bank account in the name of Mr. Subramanian and  Murlidhar operated as `former or survivor’. The wife of Mr. Subramanian, who is nominee in the account comes to your branch and informs you that Mr. Subramanian has expired a month back. She also hands over the death certificate and requests for payment of the balance.  


Options are :

  • the payment to the nominee will be made on proper identification as she is also having the death certificate
  • the payment will be made to the wife of deceased being legal heir of the former.
  • the payment will not be made as with the death of the former, nomination has been cancelled.
  • the payment will not be made as with the death of the former, survivor gets the authority to operate the account and nominee comes in to picture only when none of the account holders is available
  • any of the above

Answer :the payment will not be made as with the death of the former, survivor gets the authority to operate the account and nominee comes in to picture only when none of the account holders is available

Bitcoins are increasingly being accepted by legitimate businesses around the world. Which of the following regarding "Bitcoin" is correct? 


Options are :

  • Bitcoin is a virtual currency that is unregulated by any central bank or government, but still works for purchasing goods and services from retailers.
  • Bitcoin is a virtual currency that is regulated by central bank or government and works for purchasing goods and services from retailers willing to accept it.
  • Bitcoins is based on a centralized, peer-to-peer network, i.e., it has a central clearing house
  • Bitcoin is a virtual currency that is unregulated by any central bank or government, but still works for purchasing goods and services from retailers only if retailers are willing to accept it.

Answer :Bitcoin is a virtual currency that is unregulated by any central bank or government, but still works for purchasing goods and services from retailers only if retailers are willing to accept it.

Bank Promotion Exam Practice Tests Set 16

Sacrifice means 


Options are :

  • write off of ledger dues
  • write off legal charges
  • waiver of interest
  • all of above

Answer :all of above

Sh. Amrit Lal opens a term deposit account with Bank of Bengal and nominates his niece Ms Aruna Pande. Unfortunately, he expires in an accident but Ms Aruna Pande does not turn up despite a notice from the bank. Meantime, the legal heirs of Mr. Amrit Lal i.e. his two sons, visit the bank and request for making payment of the deposit. They also present a probate from court of law in which they are executors of the will of the deceased:  


Options are :

  • the payment of the balance in the account will be made by the bank to Ms Aruna Pande only
  • the payment of the balance would be made to the legal heirs in terms of probate
  • the payment will be made in equal proportion to the legal heirs and the nominee
  • the bank will advise the legal heirs to bring specific order from the court in the light of nomination
  • none of the above

Answer :the payment of the balance in the account will be made by the bank to Ms Aruna Pande only

when the principal debtor defaults in fulfilling his promise and the surety meets his liability to the creditor, the surety steps into the shoes of the creditor and acquires all the rights of the creditor against the principal debtor ,this known as 


Options are :

  • right of set off
  • right of subrogation
  • right of indemnifier
  • doctrine of indoor management

Answer :right of subrogation

Bank Promotion Exam Practice Tests Set 17

You have sanctioned a loan of Rs 50000/- to a Pensioner by taking a security of worth of RS 4500/-.The account has become substandard.The debit balance in the account is Rs 48000/-.The amount of provision will be


Options are :

  • 4800
  • 9600
  • 48000
  • 4500

Answer :9600

Your branch opens a fixed deposit of Rs.50000 in the joint name of Mr. Anil Kumar and Mr. Suhail Kumar payable to either or survivor. They also nominate Miss Konica a minor daughter of Mr. Suhail Kumar with the provision that the payment can be claimed by Mrs. Suhail Kumar on behalf of the minor. Unfortunately, Mr. Suhail Kumar expired and subsequently Mr. Anil Kumar decides to change the nomination from Miss Konica to his own son. To this, Mrs. Suhail Kumar objects and asks your branch not to accept the instruction of Mr. Anil Kumar:  


Options are :

  • bank has no option to ignore the request from Mr. Anil Kumar as, being survivor all rights relating to deposit are vested with him.
  • bank can request Mr. Anil Kumar to decide the case in consultation with the existing nominee
  • bank has to accept the request from Mrs. Suhail Kumar, as she was the nominee coupled with interest
  • bank will ask them to go to a court of law for decision and would implement the decision of the court
  • b and c above

Answer :bank has no option to ignore the request from Mr. Anil Kumar as, being survivor all rights relating to deposit are vested with him.

During the global financial crisis, central banks in advanced economies deployed a variety of measures. One among them is "quantitative easing (QE)". Which of the following features are correct regarding QE?


Options are :

  • Quantitative easing is adopted by the government by keeping the money supply in the economy constant
  • Quantitative easing is adopted by the government by increasing the money supply in the economy
  • Quantitative easing is adopted by the government by decreasing the money supply in the economy
  • The idea behind QE is to encourage savings by individuals and businesses

Answer :Quantitative easing is adopted by the government by increasing the money supply in the economy

Bank Promotion Exam Practice Tests Set 18

The agreement to buy and sell foreign exchange agreed upon and executed on the same day the transaction is known as


Options are :

  • Cash transaction
  • Spot transaction
  • Forward contract
  • Option

Answer :Cash transaction

Bank Promotion Exam Practice Tests Set 19

In foreign exchange operations ,normally day light position is ---------------------Overnight position


Options are :

  • less than
  • more than
  • equal to
  • twice

Answer :more than

Mr. D Singh and Mr. K Singh are maintaining a current account in `former and survivor’ operations. Mr. K Singh issues a notice to the bank that the operations in the account should be stopped as there is some dispute between both of them. He also mentions that money in the account belongs to him but for operational convenience, the power to operate the account was given in favour of D Singh. What would you do with the cheque (signed by Mr. D Singh for Rs.670 favouring LIC of India) which has been presented through clearing, for payment from this account?  


Options are :

  • the cheque is of small amount and shall be paid
  • the cheque is in favour of LIC of India and shall be paid
  • cheque will be returned due to receipt of information about dispute
  • cheque will be paid as K Singh’s instruction cannot be accepted so long as Mr. D Singh is alive
  • Any of the above

Answer :cheque will be paid as K Singh’s instruction cannot be accepted so long as Mr. D Singh is alive

Which of the following banking System is generally referred to involvement of financial intermediaries in aiding credit creation without regulatory oversight


Options are :

  • Tiered Banking
  • Shadow Banking
  • Multiple banking
  • Universal banking

Answer :Shadow Banking

Bank Promotion Exam Practice Tests Set 2

Authorised dealers in foreign exchange maintain accounts with correspondents/branch offices abroad.  Such accounts are known as:


Options are :

  • Nostro Accounts
  • Vostro Accounts
  • Loro Accounts
  • Adjustment accounts

Answer :Nostro Accounts

An airhostess employed by Air India often on duty on flights involving destinations like London, New York, Tokyo etc, she is entitled to open only:


Options are :

  • an ordinary non-resident account
  • a non-resident (external) account
  • only an account in Indian rupees like any other resident in India
  • is not entitled to maintain any account

Answer :only an account in Indian rupees like any other resident in India

Finance Ministry has asked Reserve Bank of India to allow common ATMs that will be owned and managed by non banking entities hoping to cut transaction cost for banks. Such ATMs are called


Options are :

  • White label ATM
  • Off Site ATM
  • On site ATM
  • Third party ATM

Answer :White label ATM

Bank Promotion Exam Practice Tests Set 20

An attachment order is received from Income Tax Officer for attaching funds lying in saving bank account of a person. In case, the bank fails to execute this order u/s 226 (3) of Income Tax Act:  


Options are :

  • Branch Manager can be arrested
  • Branch Manager can be fined upto Rs. 5000 and sentenced upto one year
  • The banker shall be treated as a assessee in default
  • Amount can be recovered from the bank, with penalty
  • c and d

Answer :c and d

What is core inflation


Options are :

  • It is the inflation rate of a particular basket of commodities
  • It is the sudden increase in prices of certain amount of food grains
  • It is caused by supply shocks in certain essential commodities
  • It is the sudden decrease in supply of all goods and services

Answer :It is the inflation rate of a particular basket of commodities

All letters of credit should clearly indicate whether they are revocable or irrevocable In the absence of such an indication:


Options are :

  • the letter of credit is to be treated as irrevocable
  • the letter of credit is to be treated as revocable
  • the letter of credit is to be treated as an ambiguous instrument and should be returned to the opening bank
  • the letter of credit may be treated as irrevocable if an expiry date is stipulated; otherwise it is revocable letter of credit

Answer :the letter of credit is to be treated as irrevocable

Bank Promotion Exam Practice Tests Set 1

Your branch is having a fixed deposit receipt of Rs.2 lac in the name of B, which is to mature after one year. B defaults in payment of loan. The right of set-off can be exercised for a loan against fixed deposit receipt:  


Options are :

  • On maturity
  • Even before maturity
  • by giving 30 days notice, it can be exercised
  • any of the above
  • None of the above.

Answer :On maturity

Which banking is a genre of financial services, that shuns the very idea of interest rates and is founded on the principles of profit sharing


Options are :

  • Islamic Banking
  • Land Development Banking
  • Consumer Banking
  • Exchange Banking

Answer :Islamic Banking

An “irrevocable”  letter of credit is one


Options are :

  • which cannot be revoked or amended under any circumstances
  • which can be revoked or amended at any time before the goods called for the shipped; but once the goods are shipped it can neither be revoked nor amended
  • which can be revoked or amended only if mutually agreed upon by all the parties concerned
  • which can be revoked only on the discretion of the beneficiary

Answer :which can be revoked or amended only if mutually agreed upon by all the parties concerned

Bank Promotion Exam Practice Tests Set 10

The “beneficiary” of a letter of credit is:


Options are :

  • the importer-buyer at whose request his bank establishes the letter of credit
  • the bank who ultimately negotiates the documents drawn there under and seeks reimbursement from the opening bank.
  • The exporter-seller in whose favour the letter of credit is established
  • the shipping company, insurance company, and all other institutions who benefit by the establishment of the letter of credit in question

Answer :The exporter-seller in whose favour the letter of credit is established

Your customer Mr. Veerapan issues a cheque payable to `self or order’, for Rs.55000. It is presented for payment by his peon Mr. Prakash. The cheque is endorsed by Mr. Veerapan in blank:  


Options are :

  • cheque should not be paid as it is drawn in favour of self
  • cheque should not be paid as it is not drawn properly
  • cheque can be paid as it is properly drawn and endorsed in blank the payment of which can be obtained by the bearer
  • cheques payable to self or order cannot be endorsed in blank

Answer :cheque can be paid as it is properly drawn and endorsed in blank the payment of which can be obtained by the bearer

Which one of the following is not the characteristics of Direct Bank?


Options are :

  • It is a bank without a branch network
  • It offers its services remotely
  • It uses online banking, telephone banking and provide access via ATM
  • It uses only online banking

Answer :It uses only online banking

Bank Promotion Exam Practice Tests Set 11

A revolving letter of credit means


Options are :

  • A credit where documents may be drawn and negotiated without any limit
  • A credit where no expiry date is stipulated
  • A credit where documents may be drawn upon a maximum amount indicated, and that amount becomes available for negotiation again as soon as the previous drawings is/are paid
  • A credit which is available to more than one beneficiary subject to the total amount not being exceeded

Answer :A credit where documents may be drawn upon a maximum amount indicated, and that amount becomes available for negotiation again as soon as the previous drawings is/are paid

The bank received garnishee order on saving bank account of Mr. Ram at 10.50 a.m., who deposits Rs. 5000 at 12.10 p.m. i.e. after service of the order:  


Options are :

  • The order would apply to this amount also
  • The bank will refuse to accept the deposit
  • The order will not apply to this amount
  • order will apply if court is informed about this
  • order will apply if court declares so

Answer :The order will not apply to this amount

For the purpose of change in classification of an advances from standard to sub-standard category due to non-payment of the loan, in case of crop based agriculture advances, which of the following is taken:  


Options are :

  • two harvest seasons
  • two crop seasons
  • one crop season
  • two crop seasons for short duration crop and one crop season for long duration crop
  • two harvest seasons with maximum of one year.

Answer :two crop seasons for short duration crop and one crop season for long duration crop

Bank Promotion Exam Practice Tests Set 12

A “Red Clause” letter of credit is one:


Options are :

  • which is issued in favour of beneficiaries in the Russia and other countries of the CIS Block
  • which provides for pre-shipment advances to be granted to the beneficiary to be recovered from the proceeds of drawings thereunder
  • where some important clauses are printed in red-ink
  • which can be cancelled without notice

Answer :which provides for pre-shipment advances to be granted to the beneficiary to be recovered from the proceeds of drawings thereunder

Comment / Suggestion Section
Point our Mistakes and Post Your Suggestions