Bank Promotion Exam Practice Tests Set 16

The relationship between RBI and bank maintaining currency chest is


Options are :

  • Bailor-bailee
  • principal- trustee
  • trustee and beneficiary
  • lessor- lessee

Answer :principal- trustee

Interest in SB account is calculated on:  


Options are :

  • Minimum balance during the month
  • Balance as on 30th of the month
  • Minimum balance between 10th and last day of the month
  • balance as on 10th and last day of the month
  • On daily balance basis

Answer :On daily balance basis

Bank Promotion Exam Practice Tests Set 17

A gives a mandate in favour of B to operate his account and later on a power of attorney is executed by A in favour his wife. In the case:  


Options are :

  • Mandate would remain effective along with power of attorney
  • Mandate would become ineffective, if revoked specifically
  • Court intervention should be had
  • Only power of attorney will be operative
  • a and b

Answer :a and b

In case of term deposit, the period of limitation starts from


Options are :

  • date of deposit
  • date of maturity
  • date of demand by depositor
  • no limitation period

Answer :date of demand by depositor

As per which of the following Acts, a person is considered legally dead if he is missing for more than 7 years?


Options are :

  • Evidence Act
  • Contract Act
  • Companies Act
  • Registration Act

Answer :Evidence Act

Bank Promotion Exam Practice Tests Set 18

Summons to produce paid instruments or other documents by Police Officer is issued under Section ____ of _____________.


Options are :

  • 45(2) of Banking Regulation Act
  • 420 of Indian Penal Code
  • 91 of Criminal Procedure Code
  • 10 of N.I.Act

Answer :91 of Criminal Procedure Code

RBI has developed a short term liquidity forecasting model for liquidity assessment to :


Options are :

  • enable liquidation of all non-performing assets
  • evaluate the short term interaction of financial markets and monetary policy measures
  • assess all long term assets and make provisions based on different maturity periods
  • none of the above

Answer :evaluate the short term interaction of financial markets and monetary policy measures

Banks may extend credit facilities to infrastructure projects by way of ____


Options are :

  • Working capital finance
  • Term loan / project loan
  • Subscription to bonds /debentures / shares
  • All the above

Answer :All the above

Bank Promotion Exam Practice Tests Set 19

A company is availing credit facilities from your branch. Which among these credit  facilities does not require registration of charges u/s 125 of Companies Act 1956 for :  


Options are :

  • Packing Credit for shipment of goods
  • Hypothecation of stocks
  • Pledge of stock
  • Term loan for machinery
  • bills discounting

Answer :Pledge of stock

MR A has borrowed Rs 20000/- and MR B is the guarantor. The account has become doubtful MR B has got a current account in which the credit balance is RS 18000/-. Can the bank exercise the right of set off with B’s current account?


Options are :

  • No
  • Yes
  • yes only after the demand is made on the guarantor
  • only 50%amount can be setoff

Answer :yes only after the demand is made on the guarantor

In CAMELS rating, L stands for _____


Options are :

  • Leverage
  • Loan Portfolio
  • Legal compliances
  • Liquidity

Answer :Liquidity

Bank Promotion Exam Practice Tests Set 2

In a partnership firm, the no. of partners cannot go beyond 10 or 20 depending upon the nature of business. The provision regarding this maximum no. of partners is mentioned in: 


Options are :

  • Indian Partnership Act
  • Indian Contract Act
  • Indian Companies Act
  • Banking Regulation Act
  • None of the above.

Answer :Indian Companies Act

A power of attorney executed abroad needs


Options are :

  • to be stamped at the time of execution or before execution
  • to be stamped within 3 months of its receipt in India.
  • need not be stamped
  • to be stamped at the time filing suit

Answer :to be stamped within 3 months of its receipt in India.

RBI has decided to restrict banks’ exposure to the capital market in all forms to ____% , which includes direct investments by banks in equity shares, convertible debentures and unit-oriented mutual funds. It will also include advances against shares and debentures and guarantees issued on behalf of brokers.


Options are :

  • 2
  • 3
  • 5
  • 10

Answer :5

Bank Promotion Exam Practice Tests Set 1

Ravi Kumar and Sons, an HUF, maintain a current account. The Karta of the HUF dies and leaves behind three family members i.e. his wife and two minor sons. How will you deal with the account:  


Options are :

  • Bank will stop operations in the account
  • Account can be operated by minor son being male member
  • Account would be operated by widow being guardian of eldest male member to be called Karta
  • account can be operated by any of the two sons
  • None of the above

Answer :Account would be operated by widow being guardian of eldest male member to be called Karta

Banks are required to classify the entire investment portfolio including SLR and non-SLR securities under three categories : “held to maturity”, ‘available for sale” and “held for trading”. The investments in the “held to maturity” category should not exceed ______% of the total investments.


Options are :

  • 10
  • 15
  • 20
  • 25

Answer :25

A and B are having a joint account with operational instructions E/S. A & B appoint C as their attorney. Cheque signed by C is presented for payment, which is in order. You already received the information about death of MR A. Now the cheque in question will be


Options are :

  • passed
  • returned
  • passed if date of cheque is prior to date of demise of MR A
  • passed if date of cheque is prior to receipt of notice of death of MR A

Answer :returned

Bank Promotion Exam Practice Tests Set 10

A Minor can 


Options are :

  • Appoint a nominee
  • appoint an attorney
  • draw a cheque
  • do none of the above
  • do all the above

Answer :draw a cheque

Which of the following documents in case of a company is called Charter of the company? 


Options are :

  • Resolution from Board of Directors or Shareholders
  • Memorandum of Association
  • Articles of Association
  • Certificate of Incorporation
  • Certificate of Commencement of Business

Answer :Memorandum of Association

The gilt edged market in India refers to the market for 


Options are :

  • long term private securities
  • corporate securities
  • government securities
  • bonds and debentures

Answer :government securities

Bank Promotion Exam Practice Tests Set 11

The Trust deed is silent about operation of bank account. There are 3 trustees. In this case the bank 


Options are :

  • cannot open the account
  • allow joint operation by all trustees
  • allow any two jointly
  • court instructions to be obtained

Answer :allow joint operation by all trustees

Probate is linked to


Options are :

  • will
  • succession certificate
  • nominee
  • legal heir

Answer :will

While calculating Capital Adequacy Ratio, banks will have to ensure that 


Options are :

  • Tier II capital does not exceed Tier I capital
  • subordinated debt instruments are limited to 50% of Tier I capital
  • Revaluation Reserve is taken at a discount of 55%
  • All the above

Answer :All the above

Bank Promotion Exam Practice Tests Set 12

The risk weightage on loans against residential property has been reduced from 100% to _____%


Options are :

  • 75
  • 50
  • 66.66
  • 75

Answer :50

A bank receives a cheque for collection from its customer. Bank gives credit before collection of the cheque. It also allows the customer to withdraw the amount. In such case, the:  


Options are :

  • Bank is holder
  • Bank is holder for value
  • Bank becomes holder in due course
  • representative of the drawer
  • None of the above

Answer :Bank is holder for value

An Executor is appointed by 


Options are :

  • court
  • Testator
  • legal heirs
  • nominee

Answer :Testator

Bank Promotion Exam Practice Tests Set 13

Secretary & president operate a registered club’s current account jointly. You already received the intimation about the death of the secretary. A cheque is presented in clearing signed by both the secretary & president, which is otherwise in order.


Options are :

  • the cheque will be passed
  • it depends on the date of cheque
  • the cheque will be returned
  • pass only after confirming from president

Answer :the cheque will be passed

A partnership firm 


Options are :

  • must be registered
  • need not be registered
  • can be registered even after formation
  • both 2& 3

Answer :both 2& 3

Two private limited companies having respectively share holders 10 & 20 join together to form a partnership


Options are :

  • The formation is illegal as total members exceed 20
  • limited co can not be a partner
  • It is valid as per law
  • valid only if at least one individual joins as partner

Answer :It is valid as per law

Bank Promotion Exam Practice Tests Set 14

Not negotiable crossing means:  


Options are :

  • The collecting banker should confirm about the genuineness of holder before collection of his cheque
  • The not negotiable cheque cannot be further negotiated
  • Collection of not negotiable cheque will not get protection under NI Act
  • A transferee cannot get better title than a transferor and he also cannot transfer a better title than he possesses.
  • Any of the above

Answer :A transferee cannot get better title than a transferor and he also cannot transfer a better title than he possesses.

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