Bank Promotion Exam Practice Tests Set 7

The security norms for financing  diversifying crops under “CONTRACT FARMING” is… 


Options are :

  • Hypothecation of crops and collateral security
  • Hypothecation of crops and waiver of collateral security for limits up to Rs.1 lac.
  • Only group guarantee
  • None of the above.

Answer :Hypothecation of crops and waiver of collateral security for limits up to Rs.1 lac.

Loans / Overdrafts given to farmers against FD/KVP etc. should be classified as ……. 


Options are :

  • Direct finance to Agriculture
  • Indirect finance to Agriculture.
  • Finance to Allied Agricultural activities.
  • None of the above

Answer :Direct finance to Agriculture

Bank Promotion Exam Practice Tests Set 8

Which of the following is not a term which is used in the context of Asset Liability Management? 


Options are :

  • Maturity Buckets
  • Capital Fund
  • Residual maturity
  • Interest rate risk
  • None of the above

Answer :Capital Fund

Under which of the following categories, a contract of insurance is categorised?  


Options are :

  • contract of agency
  • contract of guarantee
  • contract of indemnity
  • contract of guarantee and indemnity
  • an actionable claim

Answer :contract of indemnity

A cheque of Rs.15000 issued in favour of M/s Manish Kumar & Sons is deposited by the proprietor of the firm Mr. Manish Kumar in his personal saving bank account,which the collecting bank refuses to collect, to guard itself against conversion, while Manish Kumar insists on that:  


Options are :

  • the stand taken by the bank is correct since the cheque belonging to the firm cannot be collected for the account of individual
  • the stand taken by Manish Kumar is wrong as it is discretion of the bank to decide whether to collect or not
  • stand taken by the bank is incorrect since in the case of proprietorship, the account of the firm and that of the individual are considered in the same name and same capacity
  • cheque can be collected only if Manish Kumar provides an indemnity
  • none of the above

Answer :stand taken by the bank is incorrect since in the case of proprietorship, the account of the firm and that of the individual are considered in the same name and same capacity

Bank Promotion Exam Practice Tests Set 1

A is the holder of Power of attorney of B who is a NRI.A approaches you to open a NRE account in the name of B.


Options are :

  • We can open since A olds the P.A of B
  • We can open If A is well known to the bank
  • We can not open as the account is to be opened by B only.
  • RBI permission is required

Answer :We can not open as the account is to be opened by B only.

A is the resident power of attorney holder of B. B is having a NRE account with your branch. NOW A can


Options are :

  • Repatriate and make payment of gifts from this account
  • repatriate only in the name of account holder if specified but cannot make payment of gifts
  • make payment of gifts but not repatriation
  • neither repatriate nor make payment of gifts

Answer :repatriate only in the name of account holder if specified but cannot make payment of gifts

Development loans to  all plantations, horticulture, forestry and wasteland have to be classified as ……. 


Options are :

  • Direct finance to Agriculture.
  • Indirect finance to Agriculture
  • Finance to Allied Agricultural activities.
  • None of the above.

Answer :Direct finance to Agriculture.

Bank Promotion Exam Practice Tests Set 10

A & B have an account with operating instructions former or Survivor.  No nomination is in the account.  Both of them die.  Money is payable to


Options are :

  • Legal heir of A
  • Legal heir of B
  • legal heir of A & B
  • None

Answer :legal heir of A & B

The advantage of contract farming 


Options are :

  • Quality inputs
  • Technical guidance
  • Buy back arrangement
  • All the above

Answer :All the above

The relationship between a banker and customer in case of a matured Time Deposit remaining unclaimed


Options are :

  • Debtor-Creditor
  • Trustee-Principal
  • Creditor-Debtor
  • Trustee-Beneficiary

Answer :Debtor-Creditor

Bank Promotion Exam Practice Tests Set 11

Mixed farming means 


Options are :

  • multiple cropping
  • availing of crop loan and gold loan
  • undertaking cultivation and allied activities
  • none of these

Answer :undertaking cultivation and allied activities

The Power of Attorney Holder has accepted the bill on behalf of the Principal,  Before the due date the principal revokes the power of Attorney Therefore 


Options are :

  • A can refuse to pay the bill
  • A cannot refuse to pay the bill
  • the bill is not said to have been accepted
  • none of the above

Answer :A cannot refuse to pay the bill

Which is not a material alteration


Options are :

  • Change in date
  • change in name of payee
  • change in amount
  • crossing of an open cheque
  • all the above

Answer :crossing of an open cheque

Bank Promotion Exam Practice Tests Set 12

A lady married to a foreigner of Indian origin is 


Options are :

  • PIO
  • Indian
  • PIO & Indian
  • none

Answer :PIO

In case of time barred debts, right of set off


Options are :

  • is not available
  • is available
  • is available only if borrower gives consent
  • available with the permission of court

Answer :is available

In a cheque you find neither bearer nor order.  You will treat this cheque as 


Options are :

  • bearer
  • order
  • not drawn properly
  • truncated cheque

Answer :order

Bank Promotion Exam Practice Tests Set 13

There are 4 partners in a current a/c with you and as per the mandate first 3 partners can operate the account singly.  The 4th partner gives a stop payment instruction to a cheque signed by partner One.  You will


Options are :

  • accept it
  • accept it provided the signatory confirms it
  • accept it if all partners confirm it
  • not to accept

Answer :accept it

Nomination is available in


Options are :

  • Individual A/c
  • Proprietorship concern
  • HUF
  • Partnership firm
  • 1 & 2

Answer :1 & 2

In case of a former or survivor (deposit account) nomination will be signed by


Options are :

  • Former only.
  • survivor only.
  • by both
  • nomination is not allowed

Answer :by both

Bank Promotion Exam Practice Tests Set 14

Why is “circuit breaker” used in share market?


Options are :

  • To retain foreign investors in market
  • To check the illegal method used by companies to promote sale of their shares.
  • To check heavy fluctuations in share market.
  • To check the excessive sale of any one share.

Answer :To check heavy fluctuations in share market.

Bank Promotion Exam Practice Tests Set 15

 Fiscal deficit in a budgetary exercise means


Options are :

  • Total income less Govt borrowing
  • Total payments less total receipts
  • Total payments less capital receipts
  • Total expenditure less total receipts excluding borrowing

Answer :Total expenditure less total receipts excluding borrowing

Can a card be issued in minor’s account?


Options are :

  • No
  • Yes a card may be issued to a minor if he/she is above 14 years of age. An add on card may be issued to the guardian
  • Card may be issued only to the guardian.
  • None of the above

Answer :Yes a card may be issued to a minor if he/she is above 14 years of age. An add on card may be issued to the guardian

Can an ATM card be issued against NRI’s account?


Options are :

  • No as per FEMA rules
  • An add-on card may be issued to a person residing in India mandated by the account holder.
  • Yes ATM card specially meant for NRIS may be issued.
  • None of the above.

Answer :An add-on card may be issued to a person residing in India mandated by the account holder.

Bank Promotion Exam Practice Tests Set 16

Nature of facility under Mortgage Loan for Trade & Service sector


Options are :

  • Cash Credit
  • Term Loan
  • Overdraft
  • Cash credit or Overdraft

Answer :Cash credit or Overdraft

Self Help Group is based upon the concept of


Options are :

  • Self Help
  • Credit
  • Self Help, Credit & Thrift
  • Women Empowerment

Answer :Self Help, Credit & Thrift

KCC Limit is assessed for a period of


Options are :

  • One season
  • Two seasons
  • Three seasons
  • One year

Answer :One year

Bank Promotion Exam Practice Tests Set 17

Loan given to farmer to buy a mechanized vehicle to carry his agriculture produce Is classified as 


Options are :

  • Direct finance to Agriculture
  • Indirect finance to Agriculture
  • Priority Vehicle Loan
  • Non-priority Vehicle Loan

Answer :Direct finance to Agriculture

The Marginal farmer is one who 


Options are :

  • Possesses no Agriculture land
  • Possesses Agriculture land up to 1.25 acres of irrigated or 2.5 acres of Non-Irrigated land
  • Who is living below poverty line
  • 50% is living below poverty line maximum 7500

Answer :Possesses Agriculture land up to 1.25 acres of irrigated or 2.5 acres of Non-Irrigated land

Olericulture is


Options are :

  • Cultivation of vegetables
  • Deep Sea Fishing
  • Plantation
  • Cloning

Answer :Cultivation of vegetables

Bank Promotion Exam Practice Tests Set 18

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