Bank Promotion Exam Practice Tests Set 15

Japan will promote ________, a theory which asserts that the advancement of women in the society is directly co-related with its growth rate.


Options are :

  • Womenomics
  • Womenpowerment
  • Women Empowerment
  • None of the above

Answer :Womenomics

An exporter has received repayment of certain bills he had sent for collection and now wants to retain the same in foreign currency:  


Options are :

  • he can open current account as EEFC account
  • he can open fixed deposit account as EEFC account
  • he can open saving bank account as EEFC account
  • he can open any of the above provided no interest is paid
  • he can open only a and c

Answer :he can open current account as EEFC account

Bank Promotion Exam Practice Tests Set 16

"Incoterms" refers to:


Options are :

  • standard contract terms in international trade laid down by the UNO
  • standard contract terms in international trade laid down by the European Economic Community
  • standard contract terms in international trade laid down by the International Chamber of Commerce
  • standard contract terms in international trade laid down by the Federation of Indian Chambers of Commerce and Industry

Answer :standard contract terms in international trade laid down by the International Chamber of Commerce

R' Returns which are required to be submitted to Reserve Bank of India pertain to:


Options are :

  • advance given to small-scale industries
  • foreign exchange transactions made by the authorized dealers
  • advance given to exporters
  • advance given to priority sectors

Answer :foreign exchange transactions made by the authorized dealers

Your branch maintains a current account of a partnership firm Sandhu & Company with Sandeep Sandhu and Kuldeep Sidhu as partners. Master Sandesh Sandhu (son of Mr. Sandeep Sandhu) is also admitted to the firm for benefits. In order to meet the financial requirements of the firm, Mr. Sandhu approaches the bank to sanction a demand loan against an FDR in the name of Master Sandesh u/g of Mr. Sandeep Sandhu:  


Options are :

  • the loan is needed by the firm, in which the minor is a partner, hence can be sanctioned
  • the loan is being raised by the father of the minor, due to which it can be sanctioned
  • the loan can be sanctioned by keeping the FDR as security
  • the loan can be sanctioned if the father declares that it is for the benefit of the minor
  • Loan cannot be sanctioned

Answer :Loan cannot be sanctioned

Bank Promotion Exam Practice Tests Set 17

A Pensioner (central government) has become a NRI and he requests to repatriate his pension every month. In this case


Options are :

  • Once he becomes NRI ,he is not eligible for pension
  • not eligible for repatriation as it a local receipt
  • repatriation is allowed
  • with the consent of RBI ,repatriation is allowed

Answer :repatriation is allowed

Which of the following is correct


Options are :

  • Bankers have right to combine one or more accounts of the same customer
  • A customer has no right to treat two accounts as one or combine them
  • Both
  • none of the above

Answer :Both

A & B are having a saving a/c with instruction former or survivor.  C is the nominee in this account  Now B has expired and the legal heirs If B object to the operation of the a/c by A  Now you will


Options are :

  • Allow A to operate the a/c
  • Stop operation in the a/c
  • Pay the balance to A & legal heir of B & close the account
  • Pay the balance jointly to A, legal heir of B and nominee

Answer :Allow A to operate the a/c

Bank Promotion Exam Practice Tests Set 18

Corporate Bank had granted a term loan of Rs.20 lac to M/s Kawal Society Limited which is not being repaid. The company is not signing the balance confirmation letter despite the fact that it has been sent three times. Bank sends a legal notice for repayment of the loan which shows balance of Rs.27 lac now. Company confronts bank's claim of Rs.27 lac by way of a letter stating that they have already paid Rs.5 lac due to which the amount should be Rs.15 lac only:  


Options are :

  • the letter will serve the purpose of acknowledgement letter and extend the limitation period for the entire amount
  • the letter could extend the limitation period if it were duly stamped
  • the letter is not an acknowledgement it is only a denial of bank's claim
  • any of the above
  • none of the above

Answer :the letter will serve the purpose of acknowledgement letter and extend the limitation period for the entire amount

What is the full form of GIRO?


Options are :

  • General Inter Bank Reversal Order
  • General Indian Bank Recurring Order
  • General Intra Bank Recurring Order
  • General Inter Bank Recurring order

Answer :General Inter Bank Recurring order

In a joint account which of the following is true


Options are :

  • Insanity of a joint a/c holder countermands any authority given as regards operation of a/c which should be stopped
  • The insolvency of a joint a/c holder puts an end to the mandate and the operation of the account will cease
  • In case of dispute amongst the a/c holders, the earlier operation instruction comes to an end and it will be considered joint operation by all
  • All the above

Answer :All the above

Bank Promotion Exam Practice Tests Set 19

Your branch has sanctioned working capital limit of Rs.9 lac to a partnership firm which submits stock report with stocks worth Rs.28 lac and sundry creditors of Rs.18 lac. The margin in the account is only 20% , the unit being an SSI unit. What is the maximum amount up to which the limit can be allowed to be availed by the party?


Options are :

  • Rs.6 lac
  • Rs.8 lac
  • Rs. 9 lac
  • Rs.4.60 lac
  • none of the above

Answer :Rs.8 lac

If a person does not have PAN at the time of opening a/c he can submit


Options are :

  • Form No.60
  • Form No.61 if he has got exclusively agriculture income
  • Form No, 60 or 61 as per the case, but with documentary evidence for proof of address

Answer :Form No, 60 or 61 as per the case, but with documentary evidence for proof of address

Which of the following are true regarding the GIRO Payments?


Options are :

  • A GIRO transfer is a payment instruction from one bank account to another bank account
  • GIRO is initiated by the payer instead of the payee
  • The transaction may involve the presence of 3 banks, collector bank, payer bank and payee bank
  • All the above

Answer :All the above

Bank Promotion Exam Practice Tests Set 2

Which of the following is not true regarding the Basic Savings Bank Deposit Account (BSBDA) ?


Options are :

  • It allows to bank with a zero minimum balance requirement
  • BSBDA guidelines are applicable to all commercial banks in India
  • The aim of introducing BSBDA is part of the effort of RBI for furthering financial inclusion objectives.
  • BSBDA is applicable only for weaker sections of the society

Answer :BSBDA is applicable only for weaker sections of the society

An overdraft account shows a debit balance of Rs.15000/-  the borrower expired and bank had received the death certificate  A cheque of Rs.10000/- was deposited and afterwards a debit of Rs.6000/- was allowed  Now the liability will be


Options are :

  • Rs. 11000
  • Rs. 6000
  • Rs. 5000
  • Rs. 9000

Answer :Rs. 5000

Working capital assessment under Projected Turnover Method is based on  


Options are :

  • Current assets
  • Working capital Gap
  • Projected Sales
  • Current liabilities

Answer :Projected Sales

Bank Promotion Exam Practice Tests Set 1

A person called Himmat Singh has been maintaining a saving bank account with your branch for the last 10 years where no nomination has been opted. Now he wants to make nomination in favour of his minor son.  


Options are :

  • Bank will accept the request for nomination
  • Bank will not accept the request for nomination in favour of minor since a long period has already passed when account was opened
  • Nomination in favour of minor can be allowed only when a person is also appointed who can receive the payment on behalf of minor if the account holder dies during his minority
  • Both (c) and (b) above
  • none of the above

Answer :Nomination in favour of minor can be allowed only when a person is also appointed who can receive the payment on behalf of minor if the account holder dies during his minority

Limitation period in case of lien 


Options are :

  • 3 years from date of document
  • 3 years from the latest debit balance
  • No limitation period
  • 10 years from document

Answer :No limitation period

Universal Bank has been maintaining a joint fixed deposit account in the name of Mr. Asha Singh and Mr. Manjeet Singh. After sudden death of the Mr. Asha Singh in a road accident, Mr. Manjeet Singh approaches the bank for payment of the fixed deposit before maturity, which the bank makes after obtaining an indemnity bond. The legal heirs dispute the payment and insist on 50% payment:  


Options are :

  • the claim of legal heirs is not tenable as after death of one of the joint holders, the balance becomes payable to the survivor
  • the bank has made the payment to the survivor negligently, as in case of death of one of the holders, the deposit receipt cannot be cancelled
  • the bank has acted negligently as the payment was required to be made to the legal heirs of the deceased holder and the survivor jointly
  • a and c
  • any of the above

Answer :the bank has acted negligently as the payment was required to be made to the legal heirs of the deceased holder and the survivor jointly

Bank Promotion Exam Practice Tests Set 10

A cheque is endorsed in blank followed by an endorsement in full.  


Options are :

  • It becomes
  • payable to bearer
  • payable to or to the order of the last named endorsee and requires his endorsement before payment
  • it is an irregular endorsement

Answer :payable to bearer

A cheque drawn in favour of the official liquidator was presented by him for payment over the counter


Options are :

  • it can be paid if otherwise in order
  • it can not be paid as it should be collected through his bank where he is having account
  • it can be paid if he gives a stamped receipt
  • it can be paid after confirmation of his appointment as liquidator

Answer :it can not be paid as it should be collected through his bank where he is having account

A business firm has been sanctioned working capital limits of Rs.6 lac at 25% margin by the bank and book debt limit of Rs.4 lac at 50% margin. What will be total margin requirement to avail the limit fully:  


Options are :

  • 4 lac
  • 5 lac
  • 6 lac
  • 6.5 lac
  • 8 lac

Answer :6 lac

Bank Promotion Exam Practice Tests Set 11

What is the maximum time available to a customer for lodging complaint to Ombudsman? 


Options are :

  • 1 month from date of complaint made to bank and no reply received
  • 1 month from date of complaint, reply received but customer not satisfied
  • 1 year from date of receipt of reply from the bank
  • 1 year from date of lodgment of complaint with the bank + 1 month, where reply has not been received
  • c or d

Answer :c or d

A is an un-discharged insolvent known to the bank.  He comes and presents a cheque issued in his name across the counter  You will-


Options are :

  • not pay cash
  • advise him to collect through his banker
  • insolvency does not bar him from receiving cash

Answer :not pay cash

The endorsement on the cheque is fictitious and the collecting banker failed to check it  the cheque is paid by the paying banker


Options are :

  • collecting banker is not protected
  • paying banker is protected
  • collecting banker & paying banker are protected
  • both are not protected

Answer :paying banker is protected

Bank Promotion Exam Practice Tests Set 12

For deduction of TDS on interest on Time Deposits the bank will give a certificate in


Options are :

  • Form 16AA
  • Form 16A
  • Form 12BA
  • Form 61A

Answer :Form 16A

A garnishee order for Rs.10000/- on the a/c of your customer is served on your branch.  On verification, you find the customer is having only cash credit account and if shows a credit balance had of Rs.11000/-  Now you will


Options are :

  • return the garnishee order stating that customer does not have deposit a/c
  • attach the cash credit a/c
  • Cash credit a/c cannot be attached unless the limit is cancelled

Answer :attach the cash credit a/c

An FD payable to either or survivor for Rs. 25000 is in the names of A and B. The receipt is lost and a duplicate is issued on the basis of indemnity. Later on A comes with original on date of maturity for payment.  


Options are :

  • The bank will pay to A because it is payable to either or survivor
  • The bank will not pay because a duplicate has been issued making the original as useless. Hence the consent of B is required
  • The court will be informed.
  • Any of the above at the discretion of the bank
  • None of the above

Answer :The bank will not pay because a duplicate has been issued making the original as useless. Hence the consent of B is required

Bank Promotion Exam Practice Tests Set 13

Ravi your customer of a saving bank account is approached by a person called Ram to give an introduction to enable him to open a saving bank account with your branch to which he agrees. Subsequently it is proved that Ravi gave introduction though he really did not know much about Ram. In such situation:  


Options are :

  • Bank can hold Ravi responsible as he carelessly gave the introduction
  • Bank cannot hold Ravi responsible as Ravi has not violated introduction rules
  • Bank can recover 50% of amount from Ravi
  • Any of the above
  • None of the above

Answer :Bank cannot hold Ravi responsible as Ravi has not violated introduction rules

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