MCQ on on Banking Operations

UNIT-III

 

 

1. Which bank is known as banker’s bank?

 a. RBI

 b. SBI

c. PNB

 d .NABARD

 

 2. A banking system where business is carried on by a bank through a network of branches spread throughout the country is known as ………

 a. Unit banking

 b. Branch banking

c .chain banking

d. group banking

 

3. ………… refers to a system of banking in which two or more independent banks are brought under the control of a holding company

a. Group banking

b. chain banking

 c. deposit banking

 d. investment banking

 

 4. …………. Banking is a system where banks combine both the deposit banking and invest banking functions

a. Chain banking

 b . deposit banking

c. investment banking

d. mixed banking

 

5. India‘s first women ‘ s bank The Bharatiya Mahila Bank was inaugurated in which city ?

 a. Mumabi

 b. Delhi

 c. Kolkata

d. Chennai

 

6. Current deposit is also known as ……….

 a. Savings deposit

 b. demand deposit

c. time deposit.

d. recurring deposit

 

7. Which deposits are repayable after the expiry of the fixed period ?

a. demand deposit

b. time deposit

 c . savings deposit

 d. recurring deposit

 

8. …………… is a credit facility granted by commercial banks to current account holders

a. Cash credit

 b. overdraft

 c. discounting of bills of exchange

d. demand loans

 

9. The process of …………. begins with banks lending money out of primary deposit.

a. credit creation

 b. cash credit

c. debit creation

 d. over draft

 

10. CRR refer s to …………..

a. Cash Reserve Ratio

 b. Credit Reserve Ratio

c. Common Reserve Ratio

 d. None of these

 

11. NBFI s refers to ……….

 a. Non Banking Financial Industries

 b .Non Banking Financial Institution

 c .Net Banking Financial Industries

d. Net Banking Financial Institutions

 

12. DIGC refers to …………..

 a .Deposit Industrial Guarantee Corporation

b . Development Insurance Guarantee Corporation

 c. Development Industrial Guarantee Corporation

 d. Deposit Insurance Guarantee Corporation

 

 13. SLR refers to …………..

A .Statutory Liquidity Ratio

B. Stability Liquidity Ratio

C. Safety Liquidity Ratio

 d.None of these

 

14. EFT stands for……..

a Electronic Fund Transmission

b. Electronic Fund Transfer

c .Electronic Feature Transfer

d. None of these

 

15. Which bank was introduced first ATM machine in India?

 a. RBI

b. HSBC

c. PNB

d. ICICI bank

 

 16. CDM refers to ………….

 a. Cash Deposit Machine

b. Credit Development Method

c. Cash Development Method

d. Cash Development Machine

 

17. ECS refers to ……………

 a. Easy Cash Service

 b. Electronic Clearing Service

c. Electronic cash service

 d. Easy Clearing Service

 

18. NEFT refers to…………...

a. National Economic Fund Transfer

 b. National Economic Fund Transfer

c. National Electronic Fee Transfe

 d. none of these

 

19. IFSC stands for …………..

 a. Indian Financial System Code

 b .International Financial System Code

 c .Indian Fund Service Code

d .None of these

 

 20. RTGS stands for ……………

 a. Real Time Gross Settlement

 b. Real Term Gross Settlement

c. Real Time Goal Settlement

d .Real Term Goal Settlement

 

21.SWIFT stands for ……………..

a .Society for Worldwide Internet Financial Telecommunications

 b. Solution for Worldwide Interbank Financial Telecommunications

C.Society for Worldwide Internet Financial Telecommunications

d.Solution for Worldwide Interbank Financial Telecommunications

 

 22.CBS stands for ……..

 a. Code Banking Solutions

b. Core Banking Solutions

c. common Banking Solutions

d. Credit Banking Solutions

 

 23.CTS refers to ………..

 a. Cheque Truncation System

b .Cheque Transaction System

 c .Cheque Truncation Solution

d.Cheque Transaction Solution

 

24.Credit Information Bureau India Limited is India’s first credit rating agency which was incorporated in the year……

a. 1988

b.2000

 c.2005

d 1995

 

25.KYC refers to………….

 a. Know Your Customer

b. Know Your Credit

 c. Know Your City

d .Know Your Company

 

26.Delivery of financial services at affordable costs to the disadvantaged Low income segments of the society known as………..

 a. Credit creation

 b. financial exclusion

 c. Financial Inclusion

 D .consumer credit

 

27. RBI ACT was comes in to existence……

 a.1934

 b. 1935

c.1948

d.1945

 

28. Banking Regulation Act was comes into existence………

 a.1949

 b. 1934

 c. 1956

d .1949

 

 29. A cheque bears a date earlier than the date on which it is presented to the bank it is called ………………

a. post-dated cheque

 b.ante- dated cheque

c. outstation cheque

d.local cheque

 

30. A cheque bears a date which is yet to come it is called as …………

 a.post dated cheque

b. ante –dated cheque

 c .crossed cheque

d .self cheque

 

31. If a cheque presented for payment after three months from the date of the cheque is known as …………

a. self cheque

 b. mutilated cheque

c. local cheque

d .stale cheque

 

32. If a cheque is torn into two or more pieces and presented for payment it Is called ……………

 a mutilated cheque

b.stale cheque

c.local cheque

d. selfcheque

 

33. Cancellation of cheque is known as ……………

a. crossing

 b. opening of crossing

c .double crossing

 d .general crossing

 

34.MICR refers to………………..

 A .Magnetic Ink Character Recognition

b. Magnetic Information Character Recognition

 c. Magnetic Ink Code Recognition

 d .Magnetic Icon Character recognition

 

35.When a deposit of money is received by the banker , the banker becomes the …………?

 A .creditor

 b. debtor

c. receiver

d. customer

 

36.When a deposit of money is received by the banker , the customer becomes the …………..?

A .debtor

 b. creditor

 c. customer

 d. lender

 

37.The primary relationship between banker and customer is …………….

a. Giver and receiver

b. debtor and creditor

c .insurer

d .insured

 

38. A ……….. is a person to whom the management of a particular property is entrusted for the exclusive benefit of a third party

 a .customer

 b .beneficiary

 c . trustee

 d. agent

 

 39. Bankers Book Evidence Act was comes into existence ----

 a. 1881

 b. 1891

 c. 1890

d.1892

 

 40 . ………… is the right of a creditor to retain possession of the property belonging to the debtor until certain demands of the person in possession are satisfied.

 a. Lien

 b. Returning

c Surrender

 d. None of these

 

41. FDR stands for …………..

A .Fixed Delivery Receipt

 b .Fixed Deposit Receipt

 c .Final Deposit Receipt

 D .Final Delivery Receipt

 

42. In which year Negotiable Instrument Act was passed ………?

a.1981

 b.1956

c.1881

d.1984

 

 43. …………… is a person who draws or makes a cheque

A . Drawee

b. Drawer

c. Payer

 d. payee

 44. In the case of a cheque the drawee will always be a specified ………… with whom the drawer keeps an account.

a. person

 b . partner

 c .customer

d. banker

 45………… is a person to whom the amount of a cheque is payable

 A .Drawer

b . Drawee

c.Payee

 d. Customer

 

46.Which one of them are correct in the case of parties involved in a cheque ?

 a. Debtor and Creditor

 b. Banker and customer

c. Drawer , Drawee and Payee

d. Drawer and Payee

 

 47.When a cheque is specially crossed to more than one banker it is called ………..

a. General Crossing

b . Special Crossing

c. Not negotiable crossing

 d. Double Crossing

 

 48………….. means signing a person’s name on the back of the negotiable instrument.

 a. Crossing

b. endorsement

c. special crossing

 d. general crossing

 

 49. Endorsement facilitates that……………..

a. selling

b. transferability

 c .buying

d .None of these

 

 50. The person who endorses the instrument is called ………….

 a. drawer

 b. drawee

c. endorser

d.endorsee

 

 51.The person to whom the endorsement is made is called ……………

a. endorser

 b .endorsee

c. drawer

 d. drawee

 

52 .Sometimes further endorsement can be made on a separate slip of paper attached to the instrument such a paper called ………

a. document

 b. stamp

 c .allonge

 d. notice

 

53.When an endorser merely signs his name on the back of the instrument without specifying the name of the person to whom the instrument is endorsed is called …………?

a. blank endorsement

 b. full endorsement

c. conditional endorsement

d. facultative endorsement

 

54.When an endorser not only signs his name on the back of the instrument but also specifies the name of the person to whom the instrument is endorsed is called ……….?

 a. blank endorsement

b. conditional endorsement

c . full endorsement

d. partial endorsement

 

55. ……………….. is an endorsement in which some of the rights of the endorser are waived

. a. restrictive endorsement

b. special endorsement

 c. facultative endorsement

d. qualified endorsement

56…………………. Is an endorsement which limits the liability of the endorser

 a. Sans recourse endorsement

 b. san frais endorsement

c. partial endorsement

d. per pro endorsement

 

57. In san frais endorsement the word san frais means that…………….

a. without name

 b. without expense

 c without money

 d. without consent

58…………… endorsement is an endorsement made by an authorized person on behalf of another

a .partial endorsement

 b. restrictive endorsement

c. per pro endorsement

 d .sans recourse endorsement

 

59………….. is a copy of customer’s account in the bank’s ledger.

a .cash book

b pass book

 c. cheque book

 d. pay in slip

 

 60. PMJDY stands for ………

a. Pradhan Mantri Jan-Dhan Yojana

b .Prime Minister Jan Dhan Yojana

c.Pradhan Mantri Jeevan Dhan Yojana

 d. None of these

 

61. In which types of banking system several banks joins hands with each other for meeting the credit requirements of the large borrower ?

a. group banking

 b. consortium banking

c.net banking

d. none of these

 

 

 

 

 

 

62.Th e practice of conducting banking transactions from home rather than at bank branches by means of electronic telecommunication known as------

a .branch banking

b. group banking

c. chain banking

d. home banking

 

 

 

Answer key 1.(a) 2(b) 3(a) 4(d) 5(a) 6(b) 7(b) 8(b) 9(a) 10(a) 11(b) 12 (d) 13 (a) 14(b) 15(b) 16(a) 17(b) 18(d) 19(a) 20(a) 21(d) 22(b) 23(a) 24(b) 25 (a) 26(c) 27(a) 28 (a) 29(b) 30(a) 31(d) 32(a) 33(b) 34(a) 35(b) 36(b) 37(b) 38(c) 39(b) 40(a) 41(b) 42(c) 43(b) 44(d) 45(c) 46(c) 47(d) 48(b) 49(b) 50(c) 51(b) 52(c) 53(a) 54(c) 55(c) 56(a) 57(b) 58(c) 59(b) 60(a) 61(b) 62(d)