Bank Promotion Exam Practice Tests Set 8

The maximum no. of members in a Joint Liability Group (LJG) is


Options are :

  • 4
  • 10
  • 20
  • 19

Answer :10

Risks arising due to poor service of service provider are categorized as 


Options are :

  • Reputation Risks
  • Operational Risks
  • Counterparty Risks

Answer :Reputation Risks

In case of debt equity ratio, debt is


Options are :

  • Short term debt
  • Long term debt
  • Total debt

Answer :Long term debt

Bank Promotion Exam Practice Tests Set 9

CMIE stands for_______________.


Options are :

  • Committee for Monitoring Indian Economy
  • Committee for Monitoring International Economy
  • Centre for Monitoring Indian Economy

Answer :Centre for Monitoring Indian Economy

Application for education loan can be rejected __________.


Options are :

  • by the branch itself
  • by the controlling office
  • by the branch with the concurrence of the next higher authority

Answer :by the branch with the concurrence of the next higher authority

The business of banking is defined in ________________.


Options are :

  • Section 5(b) of the Banking Regulation Act , 1949
  • Section 5(b) of the RBI Act , 1934
  • Section 35(b) of the RBI Act, 1934

Answer :Section 5(b) of the Banking Regulation Act , 1949

Bank Promotion Exam Practice Tests Set 1

Limitation period of a D.P. note is ______.


Options are :

  • 2 years 6 months
  • 2 years 9 months
  • 3 years

Answer :3 years

Loss is treated as _____ in the balance sheet.


Options are :

  • tangible asset
  • intangible asset
  • no treatment in the balance sheet

Answer :intangible asset

In case of an overdraft account, the relation between a banker & customer is _________.


Options are :

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

Answer :Creditor-Debtor

Bank Promotion Exam Practice Tests Set 10

In case of a partnership firm, counter guarantee is executed by _______.


Options are :

  • Managing Partners
  • All, except the dormant partners
  • All the partners

Answer :All the partners

Banking Codes and Standards Board of India (BCSBI) has its headquarters in _____.


Options are :

  • New Delhi
  • Kolkata
  • Mumbai

Answer :Mumbai

“Buy Now – Pay Now” is commonly used for ---


Options are :

  • Debit Cards
  • Vault Cards
  • Credit Cards

Answer :Debit Cards

Bank Promotion Exam Practice Tests Set 11

Sec ---- of  RBI Act,1934 gives sole power to RBI to issue currency notes


Options are :

  • 10
  • 18
  • 22

Answer :22

In commodity exchange, the participants who own or possess the asset in one form or the other are called


Options are :

  • Speculators
  • Hedgers
  • Arbitrageurs

Answer :Hedgers

“Once a Bearer is always a bearer” is applicable in respect of


Options are :

  • A bill of exchange payable after 90 days
  • A cheque
  • A demand promissory note

Answer :A cheque

Bank Promotion Exam Practice Tests Set 12

As per Money Laundering Act, Banks have to report all suspicious transactions & those transactions over ______________ to the Government. 


Options are :

  • Rs ten lacs
  • Rs twenty lacs
  • Rs fifty lacs

Answer :Rs ten lacs

Which one of the following is not barred by law of limitation?


Options are :

  • Banker’s lien
  • Hypothecation
  • Guarantee

Answer :Banker’s lien

All financial transactions records (reported for suspicious activities) are to be retained for at least_________


Options are :

  • 8 years after the transaction
  • 10 years after transaction
  • 12 years after transaction

Answer :10 years after transaction

Bank Promotion Exam Practice Tests Set 13

5 In case of long duration crops, KCC accounts will be classified as NPA if they remain overdue for _______from the due date


Options are :

  • 90 days
  • One cropping season
  • Two cropping season

Answer :One cropping season

The amount of interest subvention is to be calculated on the amount of the crop loan disbursed from the date of     disbursement/drawal up to the ______________.


Options are :

  • Actual repayment date
  • Due date of repayment
  • Date of Repayment or date beyond which the outstanding loan becomes overdue, whichever is earlier

Answer :Date of Repayment or date beyond which the outstanding loan becomes overdue, whichever is earlier

Crop loans are sanctioned for   


Options are :

  • Raising crops
  • Investment needs
  • Allied activities
  • All of these

Answer :Raising crops

Bank Promotion Exam Practice Tests Set 14

Kharif season starts from


Options are :

  • April to September
  • January to June
  • July to December
  • October to March

Answer :April to September

Rabi season starts from


Options are :

  • December to May
  • October to March
  • May to October
  • July to December

Answer :October to March

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

Bank Promotion Exam Practice Tests Set 15

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

KCC  facility for agriculture should be reviewed at


Options are :

  • After 3 years
  • Half yearly
  • Annually
  • Quarterly

Answer :Annually

What is the margin for advances against shares/IPO


Options are :

  • 25%
  • 50%
  • 10%
  • No margin

Answer :50%

Bank Promotion Exam Practice Tests Set 16

Which of the following persons can open NRO account


Options are :

  • A foreign tourist coming to India
  • non resident Indian
  • A NRI who has become a resident
  • A person holding a dual citizenship staying in India
  • 1 and 2
  • 1 to 4

Answer :1 and 2

Banks must report frauds to RBI within________ from the date of detection


Options are :

  • 3 weeks
  • 2 weeks
  • 4 weeks
  • Next day

Answer :3 weeks

What is the purpose of analysis of financial ratios?


Options are :

  • It is for a meaningful study of information in the financial statements
  • Ascertaining overall financial position of a business organization
  • Interpretation of key information in the financial statements.
  • All of the above.

Answer :All of the above.

Bank Promotion Exam Practice Tests Set 17

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