Bank Promotion Exam Practice Tests Set 17

A bill is payable to or to order of a non-trading firm. Endorsement can be made by:  


Options are :

  • Any partner of the firm
  • All the partners
  • Authorised partner through power of attorney
  • Any two partners
  • any of the above

Answer :All the partners

The term `allonge’ refers to:  


Options are :

  • A plain sheet appended to a negotiable instrument for the purpose of making endorsement thereon.
  • Conditional endorsement of a negotiable instrument
  • A plain sheet appended to a will
  • Enclosures to the balance sheet of the bank
  • None of the above

Answer :A plain sheet appended to a negotiable instrument for the purpose of making endorsement thereon.

Bank Promotion Exam Practice Tests Set 18

Which of the following is not true in respect of Commercial Paper?


Options are :

  • It can be issued as a stand-alone facility
  • Minimum issue is Rs.5 lac
  • CPs can be underwritten
  • Tangible networth of the company should be at leat Rs.4 crores

Answer :CPs can be underwritten

A customer of Delhi branch of the bank having Multi-city cheque book under the centralized business solution (CBS) demands payment of a cheque at Lucknow branch of the bank and there is connectivity between these two branches:  


Options are :

  • it is not a proper demand
  • demand is in order. Lucknow branch should pay. Bank would get proper discharge
  • to demand money all bank branches are considered one unit whether the cheque is normal or multi-city
  • demand is in order, but Lucknow branch cannot get valid discharge as contract is with Delhi branch
  • b and c

Answer :demand is in order. Lucknow branch should pay. Bank would get proper discharge

In case of a time-barred debt, banker’s lien or set-off


Options are :

  • cannot be exercised without the permission of a court
  • cannot be exercised as the debt is not receivable
  • cannot be exercised without the borrower’s consent
  • can be exercised as the effect of limitation is to bar the legal remedy, and not extinguish the debt.

Answer : can be exercised as the effect of limitation is to bar the legal remedy, and not extinguish the debt.

Bank Promotion Exam Practice Tests Set 19

A bearer cheque is issued by one Mr. Ashok in favour of Aman, but he forgets to hand over the cheque to Aman. Aman however, picks up the cheque in his absence from his table. Whether the negotiation has taken place?  


Options are :

  • No, endorsement is also needed
  • No, delivery is also needed
  • No, endorsement and delivery both required
  • Yes, the cheque is drawn in his favour
  • None of the above

Answer :No, delivery is also needed

The minimum number of directors in a  Pvt Lt Co & Public Ltd Co is respectively


Options are :

  • 2&7
  • 3&7
  • 2&3
  • 3&7

Answer :2&3

An export client M/s Shanbeg Exports of your branch receives an export order for export of handicraft items to US under a letter of credit of $ 30000. It is stated that your bank can issue another credit in favour of local supplier/manufacturer from whom the exporter is to procure the material. Under which of the following categories, such letter of credit can be classified:


Options are :

  • red clause letter of credit
  • green clause letter of credit
  • stand by letter of credit
  • transferable letter of credit
  • back to back letter of credit

Answer :back to back letter of credit

Bank Promotion Exam Practice Tests Set 2

As per Mohammedan Law after the death of father of a minor child, the guardian will be


Options are :

  • Father’s brother
  • father’s father
  • executor appointed as per father’s will
  • mother

Answer :executor appointed as per father’s will

If NPA is purchased from X bank by Y Bank and Y bank wants to sell it to Z bank, what is the time period for which the account should remain with bank Y: 


Options are :

  • 6 months
  • 12 months
  • 15 months
  • 18 months
  • 36 months

Answer :15 months

The difference between a term loan and a deferred payment guarantee is 


Options are :

  • end use of funds
  • repayment
  • outlay of funds
  • no difference

Answer :outlay of funds

Bank Promotion Exam Practice Tests Set 20

A bearer cheque of Rs. 3 lac has been presented by Mr. Sham Kumar, the payees of a cheque drawn on your branch. He being new to the bank has shown inability to give identification:  


Options are :

  • In case of bearer cheque, no identification is needed irrespective of the amount of the cheque
  • Identification is required to safe guard the interest of the bank
  • Identification is essential for all instruments for getting protection
  • Identification would not be required if presented with pass book
  • None of the above

Answer :In case of bearer cheque, no identification is needed irrespective of the amount of the cheque

An illiterate account holder wants to make, his wife, as nominee. who is also illiterate. Can the bank accept


Options are :

  • Yes, if 2 witnesses are available
  • No, illiterate can not nominate
  • No, nominee can not be illiterate
  • No, atleast one should be literate
  • No, he should be advised to open joint account with E/S

Answer :Yes, if 2 witnesses are available

Mr Trouble is the nominee in the saving account of MR Wiseman. The account holder Mr Wiseman expired and the account shows a debit balance of Rs 5000/-.MR trouble is having his savings account with you and it is having a balance of Rs 6000/-. The bank


Options are :

  • Can recover Rs 5000/- from Mr Trouble
  • cannot recover from Mr Trouble
  • can do right of setoff with nominee’s saving account
  • can recover only RS 3000/- from MR Trouble

Answer :cannot recover from Mr Trouble

Bank Promotion Exam Practice Tests Set 1

Mr. Dharmvir has given a power of attorney to Mr. Ashok Kumar for operation of accounts and dealing with negotiable instruments drawn in favour of Mr. Dharmvir. What will be the correct endorsement by Mr. Ashok Kumar among the following:  


Options are :

  • Dharmvir sd/ by Ashok Kumar
  • Ashok Kumar sd/ Ashok Kumar
  • For Dharmvir sd/Dharmvir by Ashok Kumar
  • For Dharmvir sd/ by Ashok Kumar (attorney for Dharmvir)
  • For Ashok Kumar sd/ by Ashok Kumar

Answer :For Dharmvir sd/ by Ashok Kumar (attorney for Dharmvir)

Mr. Jugraj Lal comes to open a saving bank account with your branch. He also has a cheque of Rs.500, which he would deposit in the account when account is opened. Which among the following can be accepted as first deposit in the account?  


Options are :

  • cash only
  • cheque
  • bank draft
  • bankers’ cheque
  • any of the above

Answer :any of the above

Immediate credit should be accorded to eligible account holders for local cheques for maximum amount of rupees( it may vary from bank to bank .Hence check with your bank-in central bank as per latest policy)


Options are :

  • 15000
  • 10000
  • 7500
  • 5000

Answer :5000

Bank Promotion Exam Practice Tests Set 10

An open bearer cheque favouring  M/S OM ISPAT LTD FOR Rs 125000/-is presented for cash payment. 


Options are :

  • It can be paid after deduction of BCTT
  • it can be paid after establishing the identity of the company
  • it can be paid after confirming from drawer of cheque
  • It can not be paid in cash as it should be collected through their bankers

Answer :It can not be paid in cash as it should be collected through their bankers

Returns on overdue import bills are submitted ________.


Options are :

  • quarterly
  • monthly
  • half-yearly
  • fortnightly as on 15th and last working day of the month

Answer :fortnightly as on 15th and last working day of the month

Banks which qualify to pay dividends would be eligible to pay dividend without obtaining prior approval of RBI, provided the dividend payout ratio does not exceed ______%


Options are :

  • 20
  • 25
  • 33.33
  • 30

Answer :33.33

Bank Promotion Exam Practice Tests Set 11

If a sole trustee dies ,account will be managed by


Options are :

  • none
  • by Govt. of India
  • by state Govt
  • court appointed trustee

Answer :court appointed trustee

Bank Promotion Exam Practice Tests Set 12

A is having a FD with your branch and he has taken demand loan against it. Now he wants B’s name to be added to the receipt


Options are :

  • it can be added
  • it can not be added
  • only possible after adjustment of demand loan
  • name can not be added before maturity

Answer :only possible after adjustment of demand loan

As per RBI note exchange rules , soiled/mutilated  notes of Rs 10 and above can be exchanged for : 


Options are :

  • full value or no value
  • full value or half value
  • half value or no value
  • full value or half value or no value

Answer :full value or half value or no value

There is a joint account in the names of A and B to be operated upon by both of them jointly. On the death of A, the credit balance in the account is payable to


Options are :

  • B
  • B and Legal heirs of A Jointly
  • Either (a) or (b)
  • None of these

Answer :B and Legal heirs of A Jointly

Bank Promotion Exam Practice Tests Set 13

A cheque drawn in favour of x is crossed “not negotiable”. X endorses the cheque in favour of Y for valuable consideration. Y becomes 


Options are :

  • A holder in due course
  • only a holder
  • an assignee for the amount of cheque
  • the cheque can not be endorsed

Answer :only a holder

What are the objectives of scheme for financing under Contract Farming------- 


Options are :

  • To provide quality agriculture inputs, efficient extension service and arranging financial assistance for quality produce, avoiding middlemen, and to ensure assured repayment.
  • To enter into a contract with the borrower for providing finance without any security
  • Both a & b
  • None of the above

Answer :To provide quality agriculture inputs, efficient extension service and arranging financial assistance for quality produce, avoiding middlemen, and to ensure assured repayment.

As per Sec 3 of  The Majority Act, a  person below  how many  years of age is Minor  in case guardian has been appointed by court?


Options are :

  • 16
  • 18
  • 20
  • Depends upon court order

Answer :18

Bank Promotion Exam Practice Tests Set 14

Any contract with minor is void ab initio in terms of which of the following Act?


Options are :

  • Sec 34 Transfer of Property Act 1882
  • S 11 of Indian Contract Act 1872
  • Sec 26 Negotiable Instruments Act 1881
  • Sec 6 of The Majority Act

Answer :S 11 of Indian Contract Act 1872

A bill of exchange favouring A or order was endorsed by A on the reverse of the instrument as pay B or order and signed below that. Before it could be delivered to B, A passed away. Thereafter the legal heirs of A delivered the instrument to B. In this case 


Options are :

  • The negotiation is valid as both endorsement & delivery has taken place
  • It is invalid negotiation as the legal heir of A can not complete its negotiation by delivery
  • The importance is endorsement and not delivery and hence it is valid.
  • None of the above

Answer :It is invalid negotiation as the legal heir of A can not complete its negotiation by delivery

A bearer cheque with general crossing is paid across the counter to the bearer of the cheque. Later on it was found that the cheque was stolen. In this case the banker is 


Options are :

  • Liable to the original owner of the cheque
  • liable to the true owner of the cheque
  • will not be liable since it is a bearer cheque
  • none of the above

Answer :liable to the true owner of the cheque

Bank Promotion Exam Practice Tests Set 15

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