Bank Promotion Exam Practice Tests Set 4

 ‘Dear Money’ means 


Options are :

  • Low rate of interest
  • High rate of interest
  • Depression
  • Inflation

Answer :Low rate of interest

Bank Promotion Exam Practice Tests Set 5

 ‘Legal Tender Money’ refers to


Options are :

  • Cheques
  • Drafts
  • Bill of exchange
  • Currency notes

Answer :Currency notes

Who cannot be a nominee in any deposit account?


Options are :

  • Male minor
  • Female Minor
  • Blind
  • All of these
  • None of the above

Answer :None of the above

 Which of the following can endorse a negotiable instrument?


Options are :

  • A minor
  • Married woman
  • All illiterate person
  • Blind persons
  • All the above

Answer :All the above

Bank Promotion Exam Practice Tests Set 1

For adjusting an overdraft account in a proprietary account, the bank can adjust the amount from the saving bank account of the proprietor as per:


Options are :

  • Set-off
  • Garnishee Order
  • Appropriation
  • Lien

Answer :Set-off

‘Not-negotiable’ crossing is a caution to 


Options are :

  • Drawer
  • Drawee
  • Payee
  • Endorsee

Answer :Endorsee

The creation of charge with ROC has to be registered within 


Options are :

  • 30 days
  • 45 days
  • 60 days
  • 90 days

Answer :30 days

Bank Promotion Exam Practice Tests Set 10

Partnership firm is registered with


Options are :

  • Registrar of Companies
  • Registrar of firms
  • Not registered

Answer :Registrar of firms

Which of the following is not correct?


Options are :

  • An individual may open a PPF account in his own name.
  • PPF account may be opened on behalf of HUF
  • PPF account may be opened on behalf of minor
  • PPF account may be opened by a NRI

Answer :PPF account may be opened by a NRI

Legal position of banker vis-à-vis customer in case of Term Deposit is


Options are :

  • Creditor
  • Debtor
  • Agent
  • Licensor

Answer :Debtor

Bank Promotion Exam Practice Tests Set 11

As per RBI guidelines, there should ____ number of working directors in a public sector bank


Options are :

  • four – Chairman, MD and 2 Eds
  • As per the discretion of the bank concerned
  • Two – CMD and ED
  • Bank has to refer to RBI and take prior approval

Answer :Two – CMD and ED

Bank Promotion Exam Practice Tests Set 12

RECEIPT –where any money or any bill of exchange ,cheque or promissory note is acknowledge to have been received will attract stamp duty if the amount exceeds


Options are :

  • Rs 500
  • Rs 5000
  • Rs 100
  • Rs 10000

Answer :Rs 5000

P & Q are having locker with operational instructions E/S. P reports loss of key. Q comes to operate with key . NOW you will


Options are :

  • Allow Q to operate
  • Allow only joint operation
  • advise Q to surrender the locker
  • obtain a letter from Q that key is found then allow him to operate

Answer :Allow only joint operation

In case of a partnership firm, the managing partner executes the documents on behalf of firm. If you are branch auditor, what would you suggest to the branch staff?  


Options are :

  • All the partners sign all documents
  • All partners sign in both the capacities i.e. jointly and severally
  • partners sign in their individual capacity
  • Both the above
  • None of the above

Answer :All partners sign in both the capacities i.e. jointly and severally

Bank Promotion Exam Practice Tests Set 13

On liquidation of a bank, DICGC is liable to pay each depositor through the liquidator, the amount of his deposit up to Rs._____ within ___ months from the date of receipt of claim list from the depositor.


Options are :

  • 1 lac, 1 month
  • 1 lac, 2 month
  • 1 lac, 3 month
  • 2 lac, 6 month

Answer :1 lac, 2 month

A power of attorney holder of a locker holder approaches for surrender of locker. As per PoA, he has powers to operate the locker. 


Options are :

  • POA can not surrender
  • POA can surrender
  • POA can surrender if locker holder is alive
  • POA can surrender if he is well known in the locality

Answer :POA can not surrender

Credit facilities upto Rs._____ lacs granted for distribution of inputs for activities allied to agriculture such as cattle feed, poultry feed, etc. are eligible to be reckoned as indirect finance to agriculture under the priority sector.


Options are :

  • 15
  • 20
  • 25
  • 40

Answer :40

Bank Promotion Exam Practice Tests Set 14

For Term loan the period of limitation is three years from:  


Options are :

  • Date of documents
  • Date of default
  • Date of sanction
  • Due date of each instalment
  • date of default of each instalment

Answer :Due date of each instalment

In case the debt is acknowledged after the expiry of limitation period, the limitation period will be:  


Options are :

  • Extended by another three years from this date
  • Extended for another three years from date of expiry
  • Extended for 3 years
  • Not extended
  • None of the above

Answer :Not extended

Mr. X and Y are having a joint savings account (operation jointly) in which they have nominated Mr. A. On death of Mr. X, Mr A approaches the bank for payment 


Options are :

  • Being nominee, payment would be made to A
  • payment would be made to Y and legal heirs of X
  • payment will be made to Y
  • Y will alone operate the account and nominee can not step in

Answer :payment would be made to Y and legal heirs of X

Bank Promotion Exam Practice Tests Set 15

Banks shall absorb ‘Annual Service Fee’ (ASF) in excess of 0.25% in respect of all  borrowal units under the following categories: 


Options are :

  • All loans upto Rs2lac
  • All women entrepreneurs
  • All eligible borrowers located in NER including Sikkim and Jammu & Kashmir
  • All the above

Answer :All the above

There are certain financial instruments whose prices are derived from the price of the underlying currency or interest rate or stocks etc. These are known as:  


Options are :

  • Derivatives
  • Securitisation
  • Leasing
  • Factoring
  • Venture Capital Funding

Answer :Derivatives

Mr. Sharma has given irrevocable power of attorney to Mr. Verma to operate his current account for one year. After 3 months, he gives notice to the bank that Mr. Verma's authority stands withdrawn. On the contrary, Mr. Verma's plea is that since he has been appointed as agent for one year, he has every right to operate the account. What will be the position of the bank now?


Options are :

  • MR Sharma can not revoke it before 1 year
  • bank has to accept and should not allow MR Verma to operate any further
  • MR Sharma can not revoke because it is irrecovable
  • The account will be operated jointly by both for remaining 9 months because of dispute

Answer :bank has to accept and should not allow MR Verma to operate any further

Bank Promotion Exam Practice Tests Set 16

The concepts of Monetary Aggregates and Liquidity aggregates such as M1, M2, M3 and L1, L2 and L3 have been revised on the recommendations of which of the following  committees:  


Options are :

  • Narasimham Committee
  • Rangarajan Committee
  • Raja Chelliah Committee
  • Y V Reddy Committee
  • L C Gupta Committee

Answer :Y V Reddy Committee

If a document executed in one state has to be admitted in evidence in another State, where stamp duty is higher, it is required to be additionally stamped within ____ months from its arrival in the latter State.


Options are :

  • 3
  • 1
  • 2
  • 6

Answer :3

LOK ADALAT has been setup under the provisions of


Options are :

  • RBI ACT
  • SARFAESI ACT
  • LEGAL SERVICES AUTHORITY ACT
  • BR ACT

Answer :LEGAL SERVICES AUTHORITY ACT

Bank Promotion Exam Practice Tests Set 17

A process, through which, a member owned organisation becomes a shareholder-owned Company, is called


Options are :

  • Demutulisation
  • Dematerialisation
  • Factoring
  • Derivatives
  • Securitisation

Answer :Demutulisation

After the conversion of hypothecation into pledge the bank will have the same right as that of:  


Options are :

  • Pledgee
  • Mortgagee
  • Pledger
  • hypothecatee
  • Hypothecator

Answer :Pledgee

Charge created by a borrower in favour of a secured creditor on movable assets without possession, is known as per provisions of ___ Act:  


Options are :

  • Lien, Indian Contract Act
  • Assignment, SARFAESI Act
  • Mortgage, Transfer of Property Act
  • Hypothecation, Indian Contract Act
  • None of the above

Answer :None of the above

Bank Promotion Exam Practice Tests Set 18

As per asset classification which of the following is correct


Options are :

  • if the individual account of proprietor is NPA ,then automatically the account in the name of proprietor is NPA
  • If the partnership account is NPA, then personal accounts of partners will be NPA
  • If the personal account of one partner/partners is NPA, the partnership account need not automatically treated as NPA
  • all the above

Answer :all the above

Comment / Suggestion Section
Point our Mistakes and Post Your Suggestions