Bank Promotion Exam Practice Tests Set 19

What are the disadvantages of not registering a partnership firm?


Options are :

  • Creditors of firm cannot sue an unregistered firm
  • An unregistered firm cannot sue its debtors & partners
  • Both a & b
  • None of these

Answer :An unregistered firm cannot sue its debtors & partners

Which of the following statement is not true?


Options are :

  • Minor cannot become a partner in a Firm but he can be admitted to the benefits of the partnership with the consent of all partners
  • Minor is not liable personally for any debts of the Firm nor his private property can be made liable
  • Minor’s share in the Firm is liable for all acts of the Firm
  • Within one month of attaining majority, Minor should by way of public notice, elect to become or not to become a partner in the Firm

Answer :Within one month of attaining majority, Minor should by way of public notice, elect to become or not to become a partner in the Firm

In a bill the name of the “drawee in case of need” is mentioned. When it was presented to the drawee it was dishonoured. Now the bill is said to be dishonoured


Options are :

  • Since it was dishonoured by the drawee
  • only after it is presented to the drawee in case of need and dishonoured by him
  • It is not compulsory to present it to drawee in case of need
  • none of the above

Answer :only after it is presented to the drawee in case of need and dishonoured by him

Bank Promotion Exam Practice Tests Set 2

A cheque payable to Ratan singh is endorsed by him in blank and delivered Lakhan singh. Mr. Lakhan singh adds the following above the blank endorsement made by Ratan singh “ pay Magan singh or order” and handed over the cheque to Mr. Magan singh. Which of the following is correct


Options are :

  • The cheque is rendered invalid as there is a material alteration
  • Mr lakhan singh is only liable if the cheque is dishonored
  • Mr Ratan singh is only liable if the cheque is dishonored
  • The cheque is valid and Mr Lakhan singh incurs no liability as an endorser

Answer :The cheque is valid and Mr Lakhan singh incurs no liability as an endorser

Satish  is having a saving account and he is also attorney of saving account holder B. You receive the notice of death of Mr. Satish. Two cheques signed by Satish  one in his saving account and the other one in the account of  B are presented in clearing. You will


Options are :

  • return both the cheques
  • pass both the cheques
  • pass the cheque of account B and return the cheque of Satish account
  • pass the cheque of Satish account and return the cheque of account B

Answer :pass the cheque of account B and return the cheque of Satish account

While opening an account of a  Partnership firm, Partnership letter (COS 37) is obtained in addition to Partnership deed. Partnership letter should be signed by


Options are :

  • All Partners authorised to operate the account
  • All Major Partners
  • All Partners including Minors admitted to the Profit of the Firm
  • All Partners excluding Minors admitted to the Profit of the Firm

Answer :All Partners authorised to operate the account

Bank Promotion Exam Practice Tests Set 1

Which of the following is not an implied power of a partner in a partnership firm?


Options are :

  • To sell/pledge movable goods on account of partnership
  • To borrow money, contract debts etc for the business of the partnership
  • To draw, make or accept negotiable instruments
  • To mortgage partnership immovable property

Answer :To mortgage partnership immovable property

Balance sheet discloses______. 


Options are :

  • Cash position of the business
  • Financial position of the business
  • Profit earning capacity of the business
  • Income position of business

Answer :Financial position of the business

Debt Service coverage ratio indicates -


Options are :

  • Excess current assets over current liabilities
  • No. of time fixed assets cover borrowed funds
  • No. of times surplus covers interest & investments of TL
  • Effective utilization of Assets

Answer :No. of times surplus covers interest & investments of TL

Bank Promotion Exam Practice Tests Set 10

A partnership firm is dissolved compulsorily in which of the following circumstances?


Options are :

  • When all the partners are declared insolvent
  • When the business of the firm becomes unlawful
  • When a competent court passes an order for the dissolution of the firm
  • All these cases

Answer :All these cases

A taxi is financed by bank and it is hypothecated to bank. The taxi met with an accident and the passengers were injured. Compensation can be


Options are :

  • claimed from the bank
  • can not be claimed from bank
  • claimed equally from Bank & Owner
  • Bank should pay the compensation and recover from the owner

Answer :can not be claimed from bank

Mortgage is defined under 


Options are :

  • contract act
  • sale of goods act
  • transfer of property act
  • none of the above

Answer :transfer of property act

Bank Promotion Exam Practice Tests Set 11

Which of the following is not required in case of a private limited company?


Options are :

  • Memorandum of Association
  • Articles of association
  • Certificate to commence business
  • Certificate of incorporation

Answer :Certificate to commence business

Which among the following is not mentioned in the Memorandum of Association of a company?


Options are :

  • Objects of the company
  • Authorized capital
  • Powers of directors in conducting general affairs of the company
  • Registered office

Answer :Powers of directors in conducting general affairs of the company

Acid Test Ratio establishes relationship between _____. 


Options are :

  • Cash in hand and at bank to term liabilities
  • Book debts to current liabilities
  • Quick assets to Current liabilities
  • None of these

Answer :Quick assets to Current liabilities

Bank Promotion Exam Practice Tests Set 12

Trade discount is given on ____. 


Options are :

  • Purchasing of goods
  • Selling of the goods
  • On returning the goods sold
  • None of these

Answer :Purchasing of goods

The mortgager transfers the mortgaged property to the mortgagee on the condition that it will be retransferred upon payment of mortgaged money. This is


Options are :

  • Simple mortgage
  • English mortgage
  • equitable mortgage
  • mortgage by conditional sale

Answer :English mortgage

Loan against LIC policies are given based on


Options are :

  • surrender value
  • paid up value
  • Insured value
  • market value

Answer :surrender value

Bank Promotion Exam Practice Tests Set 13

Loan against  FDR can be granted provided it is issued by


Options are :

  • by the same branch only
  • by the same bank only
  • any nationalized bank
  • any commercial bank

Answer :by the same bank only

Goodwill depends upon ____. 


Options are :

  • Peculiar advantage of the site of the business
  • The population at the place of its business
  • Goods wishes of the customers
  • Good wishes of the partners

Answer :Peculiar advantage of the site of the business

Net worth of a company is Rs.150 lakh. Patents are 20 lakhs, Goodwill is Rs.10 lakh, Preliminary expenses is Rs.5 lakh. What is the TNW of the co. 


Options are :

  • Rs.150 lakh
  • Rs.130 lakh
  • Rs.125 lakh
  • Rs.115 lakh

Answer :Rs.115 lakh

Bank Promotion Exam Practice Tests Set 14

Negative working capital means--- 


Options are :

  • CA in excess of CL
  • CL in excess of CA
  • Long term sources > Short term sources
  • Short term sources > Long term sources

Answer :CL in excess of CA

Current Ratio is 1.2:1 and amount of Current Liability is Rs.10 lakh. Total balance sheet is Rs.22 lakh. What is the amount of fixed assets ( Assuming that there are no Miscellaneous and Intangible Assets? 


Options are :

  • Rs.12 lakh
  • Rs.8 lakh
  • Rs.10 lakh
  • None of these

Answer :Rs.10 lakh

Current ratio is 2.50:1. Current liability is Rs.36000. Find the NWC. 


Options are :

  • Rs.2.14 lakh
  • Rs.2-00 lakh
  • Rs.0.90 lakh
  • Rs.0.54 lakh

Answer :Rs.0.54 lakh

Bank Promotion Exam Practice Tests Set 15

Total assets of a company are Rs.200 lakh. Current Liability is Rs.56 lakh. Debt Equity ratio is 2:1. What is the equity of the company? 


Options are :

  • Rs.144 lakh
  • Rs.98 lakh
  • Rs.96 lakh
  • None of these

Answer :Rs.98 lakh

The term "Blue chip " means


Options are :

  • govt. securities printed in blue and are readily encashable with RBI
  • preference shares of joint stock companies
  • shares of progressive, soundly run public limited companies with excellent dividend record
  • shares initially allotted to promoter directors

Answer :shares of progressive, soundly run public limited companies with excellent dividend record

Vault Register is held in the ______ custody of ________ and kept ________ the strong room  


Options are :

  • Single Custody of Cash Officer and Kept Outside Strong Room
  • Single Custody of Accountant and Kept Inside Strong Room
  • Joint Custody of Cash Officer & Accountant and Kept Outside Strong Room
  • Joint Custody of Cash Officer & Accountant and Kept Inside Strong Room

Answer :Joint Custody of Cash Officer & Accountant and Kept Inside Strong Room

Bank Promotion Exam Practice Tests Set 16

Which of the following is true in case counterfeit banknotes are found in remittances from currency chests? 


Options are :

  • Entire amount equal to the value of counterfeit banknotes will be debited to the bank’s current account
  • Penal interest @ Bank rate + 2% will be levied on the amount of counterfeit banknotes from the date of previous remittances to RBI
  • FIRs will be lodged with the police in all cases of detection of counterfeit banknotes in chest remittances
  • All are true

Answer :All are true

Which one of the following is not true for Guarantee Bond System? 


Options are :

  • Remittance can be accepted from all Scheduled Banks & Co operative Banks
  • Only currency notes upto denomination of Rs 100/- can be accepted
  • Rs 2/- per section as fee is payable
  • Accepted Remittance is entered in Unexamined Remittances Register
  • All are true

Answer :All are true

Counterfeit banknotes can be impounded by   


Options are :

  • All branches of public sector, private sector & foreign banks
  • All branches of co-operative banks & regional rural banks
  • All treasuries and Sub-treasuries
  • All RBI Issue Offices
  • All of these

Answer :All of these

Bank Promotion Exam Practice Tests Set 17

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