Bank Promotion Exam Practice Tests Set 6

The correct endorsement of a cheque payable to Mrs. R.K.Malhotra is:


Options are :

  • R.K.Malhotra
  • Kekai Malhotra (wife of R.K.Malhotra)
  • Mrs. R.K.Malhotra
  • None of these

Answer :Kekai Malhotra (wife of R.K.Malhotra)

What is the maximum amount of donation that a profit making bank make during a year:  


Options are :

  • 5% of its profits after tax
  • 4% of its audits profits
  • 2% of the profits of the previous year
  • 1% of the profits of the previous year
  • maximum Rs.5 lac

Answer :1% of the profits of the previous year

Bank Promotion Exam Practice Tests Set 7

SOF Stands for _____  


Options are :

  • Scale of Financer
  • Scale to Financer
  • Scale of Finance
  • Scale to Finance

Answer :Scale of Finance

The interest rate is to be fixed on the basis of _________ limit sanctioned under various activities _______ of facilities.  


Options are :

  • Individual , irrespective
  • Aggregate , irrespective
  • Aggregate , respective
  • Individual , irrespective

Answer :Aggregate , irrespective

The _______ drawing power will be the limit for crop production to be sanctioned under KCC


Options are :

  • Non peak level
  • Seasonal level
  • Peak level
  • Non seasonal level

Answer :Peak level

Bank Promotion Exam Practice Tests Set 1

The KCC limits are normally valid for ___________ years.  


Options are :

  • 2
  • 1
  • 4
  • 3

Answer :3

The KCC limits are subjected to _______ review.  


Options are :

  • Quarterly
  • Bi annual
  • Half yearly
  • Annual

Answer :Annual

Spacing norms are waived for financing minor irrigation schemes in___________ .


Options are :

  • Dark area
  • Gray area
  • White area
  • none of these

Answer :none of these

Bank Promotion Exam Practice Tests Set 10

Daily transactions regarding the  implementation of Annual Credit Action Plan is reported to Lead Bank in 


Options are :

  • LBR 1
  • LBR 2
  • LBR 3
  • IRDP 1

Answer :LBR 2

Running cash credit facility for crop  cultivation is considered as part of ____________ account only for accounting purposes 


Options are :

  • Agri Term Loan
  • Demand Loan
  • Part of Cash Credit
  • ACC

Answer :ACC

Total interest debited should not ex ceed the principle amount in case of short term loans sanctioned to 


Options are :

  • High-tech Agri borrowers
  • SF/MF
  • DRI borrowers
  • None of the above

Answer :SF/MF

Bank Promotion Exam Practice Tests Set 11

Agricultural Term Loans are granted for: 


Options are :

  • Purchase of seeds, manures and fertilizers
  • Purchase of pesticides
  • Purchase of durable assets
  • All of these

Answer :Purchase of durable assets

Gestation period refers to: 


Options are :

  • Repayment period of a term loan
  • Period between disbursement of loan and closure of loan
  • Moratorium period of no-repayment
  • Time taken for sanction of loan

Answer :Moratorium period of no-repayment

The purpose of Inspection in Agriculture is 


Options are :

  • Service area oriented
  • Farm oriented
  • Village oriented
  • Farmer oriented

Answer :Farmer oriented

Bank Promotion Exam Practice Tests Set 12

One of the functions given here is not performed by Lead Bank 


Options are :

  • To survey credit needs
  • Develop Branch Banking
  • Provide infrastructure to all Bank Branches
  • Enable extension of credit facilities

Answer :Provide infrastructure to all Bank Branches

Agricultural labourer is one 


Options are :

  • Who owns less than 0.5 acre s, earns 50% of income from Agriculture
  • Who is landless and work in farms owned by others
  • Who earns 55% of income through farm labour
  • Who is not an industrial worker

Answer :Who owns less than 0.5 acre s, earns 50% of income from Agriculture

________________ is the committee which recommended simplification of loan application forms and documents for agricultural finance 


Options are :

  • Krishnaswamy Committee
  • Ghosh Committee
  • R.V. Gupta Committee
  • Oza Committee

Answer :R.V. Gupta Committee

Bank Promotion Exam Practice Tests Set 13

A is holder of a cheque who endorses sans recourse to B and B to C and C to D who endorses it to E.  Cheque is dishonoured. E can claim from: 


Options are :

  • B,C and D
  • E cannot claim from any one
  • E can claim from all
  • E can claim from A

Answer :B,C and D

The following cannot delegate his powers to a third party:


Options are :

  • Truste
  • Power of Attorney holder
  • Executor
  • Administrator
  • All of these

Answer :All of these

A non resident Indian (NRI) can be defined as:


Options are :

  • Any person going abroad for any purpose
  • Indian nationals going abroad for medical treatment
  • Indian nationals going abroad for higher studies
  • Indian national going abroad for employment, business or for any other purpose with indefinite stay or persons of Indian origin settled abroad
  • both 4 and 3

Answer :both 4 and 3

Bank Promotion Exam Practice Tests Set 14

Under Agricultural Segment, the collateral security / third party guarantee is waived upto a limit of ____________ in respect of crop loans 


Options are :

  • Rs.10000
  • Rs.15000
  • Rs.50000
  • Rs.25000

Answer :Rs.50000

For the purpose of arriving at lo an to savings ratio under SHG, savings means 


Options are :

  • Balance in the savings bank account maintained by the group
  • Balance in the savings bank acco unt, cash on hand and loan amount outstanding with the group members
  • Amount deposited in fixed deposit account as security to the proposed loan
  • Balance in savings bank account and cash on hand

Answer :Balance in the savings bank acco unt, cash on hand and loan amount outstanding with the group members

The term  “Authorized Dealer” means


Options are :

  • The branches of a bank which are authorized by RBI to transact FOREX business
  • The banks which are authorized to deal in Foreign Exchange by RBI
  • The branches of a bank which are authorized to open NRI accounts
  • None of the above

Answer :The banks which are authorized to deal in Foreign Exchange by RBI

Bank Promotion Exam Practice Tests Set 15

While financing SELF HELP GROU PS, the group should be in active existence for at least 


Options are :

  • 1 month
  • 6 months
  • 1 year
  • 5 months

Answer :6 months

Current ratio would be:     


Options are :

  • 1.10:1
  • 1.15:1
  • 1.20:1
  • 1.25:1
  • 1.33:1

Answer :1.25:1

What will be the quick ratio:  


Options are :

  • 0.85:1
  • 0.75:1
  • 0.50:1
  • 0.40:1
  • 0.30:1

Answer :0.50:1

Bank Promotion Exam Practice Tests Set 16

The debt equity ratio would be: 


Options are :

  • 2.1:1
  • 1.76:1
  • 1.34:1
  • 1.10:1
  • 0.73:1

Answer :0.73:1

Debtor’s velocity ratio would be:  


Options are :

  • 1.4 months
  • 1.6 months
  • 1.8 months
  • 2.0 months
  • 2.2 months

Answer :1.4 months

What will be stock turnover ratio:  


Options are :

  • 3 times
  • 4 times
  • 5 times
  • 5.5 times
  • 6 times

Answer :4 times

Bank Promotion Exam Practice Tests Set 17

In case interest rates rise during a year, the current market value of existing Govt. securities generally:  


Options are :

  • remain constant
  • increases
  • falls
  • moves up after falling initially
  • none of the above

Answer :falls

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