Bank Promotion Exam Practice Tests Set 18

Which of the following is not true in respect of Guardian to Minor?


Options are :

  • Guardian of Illegitimate minor child – Mother
  • Guardian of Hindu married minor girl – Girl’s Father-in-law, If Husband Minor
  • Testamentary Guardian becomes effective after death of father and mother
  • Natural Guardian varies from religion to religion

Answer :Guardian of Hindu married minor girl – Girl’s Father-in-law, If Husband Minor

Impact of volatility on short-term profit is measured by-


Options are :

  • Net interest margin
  • Net interest income
  • Economic equity ratio
  • None of the above

Answer :Net interest income

The ratio of shareholders funds to total assets of the company is called ( ) 


Options are :

  • Debt-equity ratio
  • Economic equity ratio
  • Liquidity ratio
  • None of the above

Answer :Economic equity ratio

Bank Promotion Exam Practice Tests Set 19

Which of the following is not true in respect of Married Woman?


Options are :

  • Married woman may extend guarantee on behalf of third parties
  • Married woman cannot be arrested or imprisoned for non-payment of judgement debt
  • A married woman dependent on husband cannot be adjudged as insolvent
  • Personal assets of a married woman are not liable for any loan availed by her

Answer :Personal assets of a married woman are not liable for any loan availed by her

Tangible net worth is calculated as-


Options are :

  • Capital + Reserves
  • Capital + Reserves – intangible assets
  • Capital + Fictitious assets + reserves-intangible assets
  • Capital + Reserves – (Fictitious Assets – Intangible assets)

Answer :Capital + Reserves – intangible assets

Which of the following is true in respect of opening of account in the  name of Pardanashin woman?


Options are :

  • Can be opened for literate and illiterate Pardanashin woman
  • Can’t be opened for either literate or illiterate Pardanashin woman
  • Can be opened for literate Pardanashin woman only
  • Can be opened illiterate Pardanashin woman only

Answer :Can be opened for literate Pardanashin woman only

Bank Promotion Exam Practice Tests Set 2

An endorser of a negotiable instrument may, by express words in the endorsement excludes his own liability there on. Such an endorsement is


Options are :

  • Facultative endorsement
  • endorsement “sans recourse”
  • partial endorsement
  • restrictive endorsement

Answer :endorsement “sans recourse”

Which one of the following will be treated as material alteration


Options are :

  • Converting an endorsement in blank to an endorsement in full
  • crossing of a open cheque by holder
  • conversion of a general crossing in to special crossing
  • conversion of “order in to “bearer”

Answer :conversion of “order in to “bearer”

Mr. X is maintaining a Savings Bank Account with your branch. His son reports that he has become insane. Which of the following action you will not take?


Options are :

  • Operation in the A/c will be stopped after exercising due diligence in verifying the fact
  • Balance in the A/c will be paid to the legal heirs of Mr X after obtaining affidavit & indemnity
  • His son will be advised to approach any court for appointment of Official Receiver
  • Balance in the A/c will be paid to the Receiver appointed by a court under Mental Health Act

Answer :Balance in the A/c will be paid to the legal heirs of Mr X after obtaining affidavit & indemnity

Bank Promotion Exam Practice Tests Set 1

Working capital Gap means 


Options are :

  • Excess of current assets over current liabilities
  • Excess of current assets over current liabilities other than bank borrowings
  • Excess of current assets over current liabilities including WCTL
  • None of the above

Answer :Excess of current assets over current liabilities other than bank borrowings

Balance sheet of a company indicated that its current Ratio is 1.5:1. Company’s net working capital is Rs.1 Cr. The current assets would amount to ___ crores 


Options are :

  • Rs.3
  • Rs.1.5
  • Rs.2.5
  • None

Answer :Rs.3

The bank which issues L/C is also termed as 


Options are :

  • Importers Bank or the Opening Bank
  • The advising Bank or the conferring bank
  • The negotiating Bank or the Nominated bank
  • The reimbursement bank

Answer :Importers Bank or the Opening Bank

Bank Promotion Exam Practice Tests Set 10

The paying banker is protected under following for payment of cheque with forged signature of the drawer.


Options are :

  • Sec 89 of N.I act
  • sec 85(1) of N.I act
  • sec 131 of N.I act
  • no protection is available

Answer :no protection is available

Which of the following is not true in respect of Insolvency?


Options are :

  • A person who cannot pay his debts of Rs 500/- or more may be declared as insolvent
  • Application for declaring a person insolvent can be made by his creditors only
  • An insolvent person cannot act as director of company
  • An insolvent can operate his PPF A/c and a Trust A/c as trustee

Answer :Application for declaring a person insolvent can be made by his creditors only

Which of the following is true in case a notice is received by your branch that an insolvency petition has been filed against or by a customer? 


Options are :

  • Operation in the account should be stopped only when the customer is adjudicated as insolvent
  • Operation in the account should be stopped from date of notice of insolvency petition itself
  • Operation in the account should be stopped only when the Official Receiver requests in writing
  • None of these

Answer :Operation in the account should be stopped from date of notice of insolvency petition itself

Bank Promotion Exam Practice Tests Set 11

Official liquidator is appointed by which of the following?


Options are :

  • Board of Directors of a Company going into liquidation
  • Company Law Board
  • Registrar of Companies
  • Court

Answer :Court

A and B have a joint account. A’s signature on the cheque is forged. Then ----- 


Options are :

  • There is no mandate. Bank cannot make payment
  • The bank can pay 50% if either or survivor
  • The banker can pay if there are funds in the account
  • None of the above

Answer :There is no mandate. Bank cannot make payment

Which of the following is true-


Options are :

  • Net profit is deducted from capital
  • Drawings are added to capital
  • Final accounts are prepared at the end of each accounting year
  • Purchase of machinery is shown in trading account on debit side

Answer :Final accounts are prepared at the end of each accounting year

Bank Promotion Exam Practice Tests Set 12

P of Kanpur draws a bill on Q of London payable at Mumbai The bill is a


Options are :

  • Inland bill
  • foreign bill
  • demand bill
  • none of the above

Answer :Inland bill

A cheque for RS 10000/- has been presented in clearing and the cheque has been debited to the respective account. You receive a stop payment instruction from the drawer before the returns are sent by the branch. In this situation You will 


Options are :

  • return the cheque after cancelling the debit entry
  • since account is already debited you can not accept stop payment instruction
  • It is up to the banker to decide
  • none of the above

Answer :return the cheque after cancelling the debit entry

A cheque drawn by a Power of Attorney holder is presented for payment. You come to known through reliable source that  PA holder has been declared insolvent. Which of the following action you will take?


Options are :

  • Return the cheque as agency is terminated
  • Pay the cheque as insolvency of agent does not terminate the agency
  • Pay the cheque after obtaining Principal’s confirmation
  • None of these

Answer :Pay the cheque as insolvency of agent does not terminate the agency

Bank Promotion Exam Practice Tests Set 13

A is having a current account and the minimum balance required is Rs5000/. The present balance is Rs 6000/-.A cheque is presented in clearing for Rs 6000/- Now


Options are :

  • You will return the cheque
  • You will pass the cheque
  • You will pass the cheque and close the account
  • None of the above

Answer :You will pass the cheque

Wages paid for installation of new machinery is_____ 


Options are :

  • Capital expenditure
  • Revenue expenditure
  • Deferred revenue expenditure
  • Discharge of liability

Answer :Capital expenditure

Expand ROCE 


Options are :

  • Return over Capital expenditure
  • Return over Capital Employed
  • Return on Capital Employed
  • None of the above

Answer :Return on Capital Employed

Bank Promotion Exam Practice Tests Set 14

Which of the following is not true in respect of Executors?


Options are :

  • Appointed by a testator through a will
  • Appointed by Court in absence of a will to act through Letter of Administration
  • Performs the duty of realizing and distributing the assets of a deceased
  • On death of one of the Executors his powers are vested in surviving executors

Answer :Appointed by Court in absence of a will to act through Letter of Administration

While opening an account in the name of a Joint Hindu Family a JHF letter is obtained. It will not be signed by


Options are :

  • Karta
  • Adult Coparceners
  • Minor Coparceners
  • All will sign

Answer :Minor Coparceners

Which of the following is not true in respect of Joint Hindu Family?


Options are :

  • It is governed by two schools of Hindu law – Dayabhaga & Mitakshara
  • Under Mitakshara, every son/daughter of a coparcener acquire a right in JHF by birth
  • Under Dayabhaga School he/she acquires the right in JHF only after father’s death
  • All members of the family are called coparceners including mother and daughter-in-law

Answer :All members of the family are called coparceners including mother and daughter-in-law

Bank Promotion Exam Practice Tests Set 15

Rent paid in advance is_____. 


Options are :

  • A Current Asset
  • A Fixed Asset
  • A Current Liability
  • An expenditure

Answer :A Current Asset

Where does net profit appear in the balance sheet 


Options are :

  • Liabilities side
  • Assets side
  • Contingent liability
  • Fund Flow

Answer :Liabilities side

Which of the following is a capital expenditure 


Options are :

  • Freight paid on machinery for bringing it to factory
  • Removal of stock from old works to new site
  • The overhauling expenses of machines
  • Legal expenses incurred in connection with raising of debenture loans

Answer :Freight paid on machinery for bringing it to factory

Bank Promotion Exam Practice Tests Set 16

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