BANKING

BANKING 

 

1.                        The primary relationship between a banker and customer starts from the time
B. when customer opens account
2. A typical commercial banks provide ____________.
C. short term loans
3. Which one of the following is the most important relationship between banker and customer?
A. Debtor and Creditor
4. When customer’s account overdrawn or when customer has taken loan from banker, then the customer
C. Debtor
5. When banker received deposits from the customer, then the banker becomes ————– of the customer
A. Debtor
6. Which of the following systems of banking contributes to banking monopoly?
D. branch banking
7. It is a —————– obligation of a banker to honour the cheques of the customer drawn against current account
B. Statutory
8. Foreign exchange banks specialized in providing _________.
D. foreign exchange
9. Dishonour of cheque by a banker without any justifiable reason is called ___________.
D. Wrongful dishonour of cheques
10. Special damages refers to damages payable by a banker to his customer for the actual ————- loss suffered by customer
A. Financial
11. ———- is the right of a person to retain the property of another person in his possession untill the debt from that owner of that property is repaid
A. Lien
12. The bank can consider —————— lien as their protection against loss on loan or overdraft which was given to its customers
A. Special
13. The idea behind the bankers right to set-off is to enable the banker to reduce the ————– amount due to him from a customer
B. Net
14. Which one of the following is material alteration?
A. Alteration of the date of the date
B. Alteration of amount
C. Alteration of crossing
15. The right of set-off customers account can be exercised only by a
C. Banker
16. Usually incidental charges are levied on _________ type of account holders.
C. Current Account
17. The ————– rule is followed in appropriation of accounts if neither debtor nor creditors does not makes any specific appropriation
D. Claytons
18. The word “Garnishee” is derived from a Latin word
A. Garnire
19. The meaning of the word “Garnishee” means
B. . to warn
20. MICR stands for
A. Magnetic Ink Character Recognition
21. In India, the law regulating the Negotiable instruments are
C. Negotiable Instruments Act 1881
22. Banks which accept deposits from the public and lend them mainly to commerce for short periods?
A. Commercial Bank
23. Which bank is otherwise called as Investment banks?
C. Industrial Bank
24. A company who accepts demand deposit is called __________
B. Banking company
25. Current Accounts are mainly opened by
D. Trading and industrial concern
26. Who controls credit in India?
B. Reserve Bank of India
27. Fixed Deposits is otherwise called as
B. Time deposits
28. In the which type of deposit, the high rate of interest is provided by the Bank?
C. Fixed Deposit Account
29. RBI was set up in the year _____
B. 1935
30. The rate of interest charged for the loan by the banker compared to overdraft and cash credit is generally
B. Low
31. Which type of account holder has the permission to overdraw the amount from his/her account?
B. Current account
32. Discounting of Bills of Exchange is an arrangement under which banks take a bill of exchange maturing with a short period of
C. 60 days or 90 days
33. The main aim of a banker for performing the subsidiary services is to earn a ———— of the customers.
D. Goodwill
34. The services rendered by a banker as an agent of his customers are called
B. Agency services
35. The written instructions given by the customers to banker to perform the services like collection and payment of money is noted down in
B. Standing Instructions Book
36. A ————– is a person who is entrusted with some property by the settler or the author of the trust for the benefit of another person called beneficiary
D. Trustee
37. An ————– is a person appointed by a testator to execute his will
A. Executor
38. Services rendered by a banker not only to his customers, but also to the general public are called as
C. General utility services
39. Which section of the negotiable instrument act 1881 defines promissory note?
D. Section 4
40. ———— is a system under which an individual bank carries on banking business with a network of branches spread all over the country.
B. Branch Banking
41. A cheque dated subsequent to the date of its issue is
A. Post dated cheque
42. A cheque date before the date of its issue is
D. Ante dated cheque
43. A drawer in the bill of exchange can also be a
B. Payee
44. The rate at which RBI discounts approved bills is _________.
D. Discount rate
45. The lien is defined in
A. the Sale of Goods Act
46. The apex institution in agricultural finance is
A. NABARD
47. Who is primarily liable on a promissory note?
B. Maker
48. How many parties are mainly involved in Promissory Note?
C. Two
49. In a bill of exchange, drawee is the person
B. on whom the bill is drawn
50. ———— is a dead cheque.
B. Stale cheque
51. Current Bank Rate is ___________.
D. 5.4
52. Discounting of bills of exchange is
C. Neither clean advance nor secured advance
53. Expand NEFT
A. National Electronic Fund Transfer
54. Which section of Negotiable Instruments Act 1881, defines endorsement
B. Section 15
55. —— is an endorsement in which the endorser merely signs his name on the back of the instrument without mentioning the name of the person to whom the instrument is endorsed
A. Blank Endorsement
56. Blank endorsement is otherwise called as
C. General Endorsement
57. What does the term “PIN” stands for?
C. Personal Identification Number
58. The ATM installed at bank premises is called as ——– ATM
D. mobile
59. KYC means
C. Know Your Customer
60. Current CRR is
B. 4%
61. RTGS means
D. Real Time Gross Settlement
62. In which system computers are based on the centralized processing concept?
A. Multi-user computer networking
63. Core banking is a __________ branch computerization model
B. Decentralized
64. Establishment of SBI precedes the establishment of __________.
A. Bank of Madras
B. Bank of Calcutta
C. Bank of Bambay
65. ATMs are primarily used for performing the __________ functions
C. Banking
66. Expand ‘ECS’
A. Electronic Clearing System
67. EFT is introduced by
B. RBI
68. ________ is a technology that allows you to access your bank account from a mobile device.
B. Mobile Banking
69. ____ is the result of combining technology and traditional bank services through websites that customers use to access their bank accounts
C. Internet Banking
70. A ______ is the market for short term bills which are generally of 3 months duration
A. Bill market
71. A Garnishee order is an order issued by_________.
C. Court
72. If the endorser signs his name only, the endorsement is said to be
D. Full Endorsement
73. The paying banker who makes cash payment of a cross cheque at the counter shall be liable for the loss of
B. True owner of the cheque
74. Who can cancel the crossing on a cheque?
D. Drawer
75. Negotiable instruments which are freely transferable form one party to another by mere delivery is known as _____________.
B. bearer documents
76. Drawing of two parallel transverse lines on the face of the cheque is called
B. General Crossing
77. Addition of the name of a banker across the face of a cheque is called as
B. Special crossing
78. Which of the following is a negotiable instrument by usage or custom?
D. Share warrant
79. The most important feature of a negotiable instrument is
A. Free transfer
B. Transfer free from defects
80. The safest form of crossing is
D. Account payee crossing
81. A Cheque which is not crossed is called
D. Bearer cheque
82. An order cheque can be converted into a bearer cheque by means of
C. Blank endorsement
83. Endorsement signifies that the
A. Endorser has a good title
B. Endroser’s signature is genuine
C. . Previous endorsements are genuine
84. In which year, Electronic Fund Transfer (EFT) was launched in India?
B. 1995
85. Maximum limit on the amount of individual transactions permitted for fund transfer per transaction is
C. Rs. 5 Lakhs
86. In which year, SWIFT was established?
C. May 1973
87. ——— allows worldwide financial institutions to exchange standardized messages relating to
international financial transaction
B. SWIFT
88. CRM stands for ____________.
B. Customer Relationship Management
89. When the banking operations are carried out through electronic means, it take the form of
A. E-banking
90. ——— credit refers to a series of electronic payment instructions that are generated to replace proper instruments.
B. Electronic Clearing Service
91. —– has been introduced for the purpose of networking of banks.
A. Generic Architecture
92. To facilitate the growth in government securities market and for smoother trading, RBI introduced a ——-which provides for screen based trading of government securities
B. Negotiated Dealing System
93. Banking transaction that takes placed in a virtual ambience on the website of a banking company is termed as
A. Internet Banking
94. All banks having operations in India and intending to offer Internet Banking services to the public must obtain an approval for the same from
C. Reserve Bank of India
95. Telephone Banking has found a high level of acceptability especially among ———– level of people
A. Professional
96. ——— are workstations that act as a nucleaus of the functioning of the telephone banking system operated through fully computer-integrated telephone system
D. Call centre
97. The ATM pin is ———- digit code number used for authenticiating and authroizing the use of the ATM facility by a customer
A. Four
98. ——- is a technique under which effective customer authorization takes place on the basis of the biological attributes of a bonafide person
D. Biometrics
99. What is the major function performed by the ATM’s worldwide
B. Cash withdrawal
100. —— ATMs are a boost to smaller banks who cannot afford opening the ATMs in many places as possible
D. Shared

101. A person who is named in ‘Will’ to administer the estate of the deceased after his death is called
B. The executor
102. A convenient way of making a purchase or paying for a service without holding cash is called as
A. Electronic Payment System
103. —- constitutes the foremost element of an electronic payment system
B. Customer
104. An electronic payment device that involves the use of networking services where by the e-customer issues digital cheques to e-merchant malls to settle transactions carried over the internet is known as
C. Digital cheques
105. Electronic cash is also called as
B. Digital money
106. A wallet-sized smart card, embedded with programmable chip which storeds e-money to be used in a virtual trading environment for making payment is called
C. Electronic purse
107. Use of personal computers at home for conducting their banking operation with their banks is called
D. Home Banking
108. ———-is popularly known as Plastic cards or Plastic money
C. Credit cards
109. Credit cards first emerged in 1920s
C. USA
110. Which of the first subsidiary bank of State Bank of India to do whole computerization of all its branches?
A. State Bank of Patiala
111. In which year, MICR system for cheque was implemented in India?
A. 1987
112. Which is the first bank to introduce Credit card in India?
D. Central Bank of India
113. Which is the first bank to launch Debit card in India?
B. Citi Bank
114. Which was the first Joint Stock Bank established by an Indian establishment?
C. Bank of Hindustan
115. Which is the first change in banking sector of India after independence?
B. Social control on Banks
116. When were the banks nationalized in our country?
C. On 19th July 1969 and 15th April 1980
117. What are the major change in banking sector of India after nationalization of Banks?
A. Expansion of bank branches
118. The following one is absolutely essential for a special crossing
D. Name of a banker
119. The reasonable period allowed in India for the presentation of a cheque is
B. 3 months
120. If cheque is crossed an account payee, this is direction of __________ to _______.
D. Drawer, collecting bank
121. Which of the following is not the form of E-banking?
B. Direct Deposit in Bank
122. What was the capital of RBI at the time of Its promotion?
B. 5 crores
123. Interest payable on savings bank accounts is?

B. De-regulated by RBI
124. The usual deposit accounts of banks are
D. Current accounts, savings bank accounts and term deposit accounts
125. Fixed deposits and recurring deposits are __________.
A. Repayable after an agreed period
126. Accounts are allowed to be operated by cheques in respect of __________.
B. Both Savings bank accounts and current accounts
127. Which of the following is correct statement?
A. No interest is paid on current deposit accounts
128. When a bank returns a cheque unpaid, it is called __________.
C. Dishonour of the cheque
129. Largest shareholder (in percentage shareholding) of a Nationalized bank is ?
C. Government of India
130. An institution whose principal business is accepting deposits and forwarding loans is called
C. . Bank
131. Which of the following term do not represent any part of Banking technology?
C. ITC
132. The normal activities of the bank do not include
D. Selling real estate properties
133. Which one of the following can be accepted as proof of address while opening of an account?
A. Voter ID
B. Driving Licence
C. Passport
134. Which electronic fund transfer system run on the basis of “Deferred Net Settlement”
A. NEFT
135. In both cases of RTGS and NEFT, the service charges are decided by
C. Banker
136. The bank which was not nationalized in 1969 ____________.
B. Oriental Bank of Commerce
137. Which of the following is not the name of the bank functioning in India?
C. Aegon Religare
138. RBI is known as lender of last resort because
C. It comes to help banks in times of crisis
139. Cheque is payable on
A. Demand
140. Board for Financial supervision was constituted in the year _________.
A. 1994
141. Electronic purse may have the following number of storage space
C. Several
142. The click and portal model facilitates are
B. Paperless banking
C. Virtual banking
143. Electronic payment system is a/an _____________.
C. Application
144. What are the major change in banking sector of India after nationalization of Banks?
A. Expansion of bank branches
145. Which one of the following instruments is not used in bank transaction?
D. PAN
146. Which committee has recommended the introduction of Smart card?
B. Saraf Committee
147. A _________ card is used to obtain cash, goods or services automatically debiting the payments to the cardholders bank account instantly up to the credit balance which exists in the customers bank account.
C. Debit
148. ———-are workstations that act as a nucleaus of the functioning of the telephone banking system operated through fully computer-integrated telephone system
D. Call centre
149. ——-is the most favoured technology for secure Internet banking service
C. Public Key Infrastructure
150. AVR technology is used in _________.
D. Telephone banking

UNIT-1

 

1. Which of the following are the function of the RBI?

(a) Banker’s Bank

(b) Controller of credit

(c) Custodian of Foreign Exchange Reserve                                                                                    

2. Who issues one rupee notes in India?

 (b) Ministry of Finance

3. When was RBI established?

(a) 1935 

4. Which of the following sentence is correct?

(a) RBI was nationalized on January 1, 1935.

 (c) RBI is the custodian of the foreign currency in India

(d) RBI has 4 Deputy Governors

5. If a farmer want to take loan to purchase a tractor; which type of bank he should contact?

(a) Commercial banks

6. Now who decides the monetary policy of India?

 (c) Monetary Policy Committee

7. Which of the following term is not related to banking sector?

 (b) Forex Reserve

8. Which of the following term is used in the Formation of Monetary Policy?

(a) Cash Reserve Ratio

(b) Repo Rate

(c) Bank Rate

9. Oudh Commercial Bank was founded in _______.
d) 1881

10. Which movement encouraged the formation of commercial banks?
a) Swadeshi movement

11. When did the banking crisis of 1913-1917 end?
b) 1949

12. In which year was the Banking Regulation Act passed?
a) 1949

13. Imperial Bank of India was nationalised in _______.
b) 1955

14. Which among the following is not a public sector bank?
b) City Union Bank

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

a) RBI

16. CRR refer s to …………..

a)    Cash Reserve Ratio 

17. NBFI s refers to ……….

b)   Non Banking Financial Institution

18. SLR refers to …………..

a)   Statutory Liquidity Ratio

19. IFSC stands for …………..

a.   Indian Financial System Code

20. RTGS stands for ……………

a) Real Time Gross Settlement 

21 SWIFT stands for ……………..

 C)  Society for Worldwide Interbank Financial Telecommunications 

22. Which of these is monetary policy tool?
 a) Discount Rate
  b) Open Market Operations
 d) Reserve Requirements

23. Which is the largest commercial bank of the country?
c) State Bank of India

24.When did the nationalisation of major banks happen?
   1969 

25. When did the National Housing Bank start its operations?

b) July, 1988

26. SARFAESI Act 2002 concern which of the following aspects:

a) Securitisation of Financial Assets

b) Reconstruction of Assets

d) Setting up of Central Registry

27.  In the process of securitisation the non-liquid financial assets (NPA) are converted into markable securities in the form of:

d) bonds

 28. What time period is to be given to the borrower as a notice before sale of the secured asset:

a. 30 days