In the case of a banking company incorporated outside India balance-sheet and profit and loss account shall be signed by _________ of the company.

Director of the principal office

Owner agent of the principal office

Manager or agent of the principal office

The Reserve Bank of India is given the responsibility of regulating and supervising the _________ under Reserve Bank of India Act, 1934.

Non-Banking Financial Companies

As per the provisions of which act all financial institutions have to maintain a record for all form of transactions?

Credit Information (Companies Regulation Act, 2005)

Information Technology Act, 2000

Which of the following Act refers to the acquisition and transfer of the undertakings of certain banking companies?

Credit Information (Companies Regulation Act, 2005)

Banking Companies (acquisition and transfer of undertakings), 1970

Conciliation is a private, informal process in which a neutral third person helps disputing parties to reach an agreement.

true up to the extent that a neutral third person helps disputing parties to reach an agreement

Collecting a cheque payable to the firm to the private account of a partner without enquiry constitutes.......

Negligence under remote grounds

Negligence connected with immediate collection of a cheque

The endorsement on the cheque is fictitious and the collecting banker failed to check it the cheque is paid by the paying banker

collecting banker & paying banker are protected

collecting banker is not protected

collecting banker & paying banker are protected

What is the stamp duty to be paid in respect of any document executed by any banker financial institution for issuing a debenture or bond?

It depends from State to State.

One rupee for every Rs.100 or part thereof.

One rupee for every Rs.1000 or part thereof.

It shall be exempted from stamp duty.

It depends from State to State.

51 + Mcqs in Banking and Finance 3 in Bachelor of Commerce (B Com) Page 1 McqOptions

1.	In which year, the Banking Regulation Act was amended to include cooperative banks under its purview by adding the Section 56.
A.	1964
B.	1965
C.	1986
D.	1987
Answer» C. 1986

Discussion

2.	In the case of a banking company incorporated outside India balance-sheet and profit and loss account shall be signed by _________ of the company.
A.	Director of the principal office
B.	Owner agent of the principal office
C.	Manager or agent of the principal office
D.	Central Government
Answer» D. Central Government

Discussion

3.	The Reserve Bank of India is given the responsibility of regulating and supervising the _________ under Reserve Bank of India Act, 1934.
A.	Insurance Companies
B.	Transport Companies
C.	Banking Financial Companies
D.	Non-Banking Financial Companies
Answer» E.

Discussion

4.	Which section of Banking Regulation Act 1949 relates with the Power of Reserve Bank to issue directions in respect of stressed assets?
A.	Section 35AA
B.	Section 35AB
C.	Section 35B
D.	Section 35 BB
Answer» C. Section 35B

Discussion

5.	Regional rural bank means a regional rural bank established under section 3 of the Regional Rural Banks Act, __________.
A.	1974
B.	1975
C.	1976
D.	1977
Answer» D. 1977

Discussion

6.	In case of banking company incorporated outside India, aggregate value of its paid-up capital and reserve shall not be less than Rs. __________.
A.	5 Lakhs
B.	12 Lakhs
C.	15 Lakhs
D.	18 Lakhs
Answer» D. 18 Lakhs

Discussion

7.	Reserve Bank means the Reserve Bank of India constituted under section 3 of the Reserve Bank of India Act, _________.
A.	1934
B.	1935
C.	1945
D.	1946
Answer» B. 1935

Discussion

8.	In case of an Indian banking company, the sum of its paid-up capital and reserves if it has places of business in more than one State shall not be less than
A.	5 Lakhs
B.	12 Lakhs
C.	15 Lakhs
D.	18 Lakhs
Answer» B. 12 Lakhs

Discussion

9.	As per the provisions of which act all financial institutions have to maintain a record for all form of transactions?
A.	Companies Act, 1956
B.	Credit Information (Companies Regulation Act, 2005)
C.	Information Technology Act, 2000
D.	PMLA Act, 2002
Answer» E.

Discussion

10.	Which of the following Act refers to the acquisition and transfer of the undertakings of certain banking companies?
A.	Companies Act, 1956
B.	Credit Information (Companies Regulation Act, 2005)
C.	Banking Companies (acquisition and transfer of undertakings), 1970
D.	Banking Regulation Act, 1949
Answer» D. Banking Regulation Act, 1949

Discussion

11.	These days Banks are offering Loans against Property? Under which business segment, this activity may be categorized?
A.	Corporate Banking
B.	Personal Banking
C.	Merchant Banking
D.	Portfolio Management services
Answer» E.

Discussion

12.	Delay, unpredictability and cost are considered as three main enemies of efficient administration of justice.
A.	yes
B.	no
C.	cannot be said
D.	none
Answer» B. no

Discussion

13.	Conciliation is a private, informal process in which a neutral third person helps disputing parties to reach an agreement.
A.	True
B.	partially true
C.	true up to the extent that a neutral third person helps disputing parties to reach an agreement
D.	none
Answer» B. partially true

Discussion

14.	A cheque has been deposited by a customer with his bank for collection. The bank allows overdraft against the security thereof. The bank becomes
A.	Holder of the cheque
B.	Holder in due course
C.	Holder for value
D.	Drawer of the cheque
Answer» D. Drawer of the cheque

Discussion

15.	Collecting a cheque payable to the firm to the private account of a partner without enquiry constitutes.......
A.	gross negligence
B.	Negligence under remote grounds
C.	Negligence connected with immediate collection of a cheque
D.	Contributory Negligence
Answer» D. Contributory Negligence

Discussion

16.	In case collection of a bank draft the collecting banker is protected against conversion under _____ section of Negotiable Instruments Act 1881.
A.	131
B.	131 A
C.	85
D.	128
Answer» C. 85

Discussion

17.	The collecting banker is bound to show due care and carefulness in the collection of cheques presented to him.
A.	True
B.	False
C.	none
D.	none
Answer» B. False

Discussion

18.	The endorsement on the cheque is fictitious and the collecting banker failed to check it the cheque is paid by the paying banker
A.	collecting banker is not protected
B.	paying banker is protected
C.	collecting banker & paying banker are protected
D.	both are not protected
Answer» C. collecting banker & paying banker are protected

Discussion

19.	When the cheque is dishonored, the collecting banker is not bound to give notice of the same to his customer within a reasonable time.
A.	True
B.	False
C.	none
D.	none
Answer» C. none

Discussion

20.	In case a collecting banker has realized the cheque, he should pay the interest to the customer as per his (customer s) direction.
A.	True
B.	False
C.	none
D.	none
Answer» B. False

Discussion

21.	Holder is an individual who has lawfully received possession of a Commercial Paper, such as a cheque and who is entitled for payment on such instrument.
A.	True
B.	False
C.	none
D.	none
Answer» B. False

Discussion

22.	Which one of the following is the rate at which the RBI lends money to commercial banks in the event of any shortfall of funds?
A.	Benchmark Prime Lending Rate
B.	Annual Percentage Rate
C.	Bank Rate
D.	Repo Rate
Answer» E.

Discussion

23.	. Reserve Bank has the power under __________ of the Securitisation Act to cancel the Certificate of Registration issued by it to any ARC:
A.	Section 5
B.	Section 8
C.	Section 4
D.	Section 12
Answer» D. Section 12

Discussion

24.	RAM a transporter has been granted a loan for purchase of a truck. You will create which of the following charge.
A.	Assignment
B.	a mortgage
C.	pledge
D.	hypothecation
Answer» E.

Discussion

25.	The mortgager transfers the mortgaged property to the mortgagee on the condition that it will be retransferred upon payment of mortgaged money. This is
A.	Simple mortgage
B.	English mortgage
C.	Equitable mortgage
D.	mortgage by conditional sale
Answer» C. Equitable mortgage

Discussion

26.	In case of sufficiency of funds in the account of the drawer which can be properly used to pay the cheque, the banker must pay the cheque when required to do so.
A.	True
B.	False
C.	none
D.	none
Answer» B. False

Discussion

27.	The written instructions given by the customers to banker to perform the services like collection and payment of money is noted down in
A.	Written Instructions Book
B.	Standing Instructions Book
C.	Banking Instructions Book
D.	Services Instructions Book
Answer» C. Banking Instructions Book

Discussion

28.	Dishonour of Negotiable Instrument by Non Payment is covered under section in Negotiable Instrument Act 1882
A.	Section 90
B.	Section 91
C.	Section 92
D.	Section 93
Answer» D. Section 93

Discussion

29.	It is a ----------------- obligation of a banker to honour the cheques of the customer drawn against current
A.	Mutual
B.	Statutory
C.	Unstatutory
D.	All of the above
Answer» C. Unstatutory

Discussion

30.	Which of the following Committee recommended to form a new category of Bank Called Payment Banks?
A.	Gadgil Committee
B.	M L Dhantwala Committee
C.	Nachiket Mor Committee
D.	P J Nayak Committee
Answer» D. P J Nayak Committee

Discussion

31.	The best procedure for opening an account in the name of a minor X and the guardian Y would be under the style.............
A.	'X' Account
B.	'b'-Account- Minor
C.	'y' in trust for X
D.	'y' account
Answer» D. 'y' account

Discussion

32.	It is a ----------------- obligation of a banker to honour the cheques of the customer drawn against current account.
A.	Mutual
B.	Statutory
C.	Unstatutory
D.	All of the above
Answer» C. Unstatutory

Discussion

33.	The paying banker is protected under following SECTION for payment of cheque with forged signature of the drawer.
A.	Sec 89 of N.I act
B.	sec 85[1] of N.I act
C.	sec 131 of N.I act
D.	no protection is available
Answer» E.

Discussion

34.	Special damages refers to damages payable by a banker to his customer for the actual ------------- loss suffered by customer.
A.	Financial
B.	Special
C.	Unpecuniary
D.	Unfinancial
Answer» B. Special

Discussion

35.	Section 45 of the Negotiable instruments Act, has imposed upon the banker the obligation to honour customers cheques.
A.	True
B.	False
C.	none
D.	none
Answer» C. none

Discussion

36.	Before which for a can an asset reconstruction company file an application for enforcement of its security interest:
A.	Debt Recovery Tribunal
B.	High Court
C.	District Court
D.	National Company Law Tribunal
Answer» B. High Court

Discussion

37.	When banker received deposits from the customer, then the banker becomes -------------- of the customer.
A.	Debtor
B.	Creditor
C.	Bailee
D.	Trustee
Answer» D. Trustee

Discussion

38.	When customer's account overdrawn or when customer has taken loan from banker, then the customer.
A.	Creditor
B.	Agent
C.	Debtor
D.	Bailor
Answer» D. Bailor

Discussion

39.	The paying banker who makes cash payment of a cross cheque at the counter shall be liable for the loss of
A.	Drawer of the cheque
B.	True owner of the cheque
C.	Collecting banker
D.	the First endorser
Answer» C. Collecting banker

Discussion

40.	The bank can consider ------------------ lien as their protection against loss on loan or overdraft which was given to its customers.
A.	Special
B.	Particular
C.	General
D.	Lending
Answer» B. Particular

Discussion

41.	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.
A.	Attorney
B.	Executor
C.	Administrator
D.	Trustee
Answer» E.

Discussion

42.	What is the stamp duty to be paid in respect of any document executed by any banker financial institution for issuing a debenture or bond?
A.	One rupee for every Rs.100 or part thereof.
B.	One rupee for every Rs.1000 or part thereof.
C.	It shall be exempted from stamp duty.
D.	It depends from State to State.
Answer» D. It depends from State to State.

Discussion

43.	Which bank have given the instructions to the commercial banks regarding the immediate credit of outstation cheques?
A.	Reserve Bank of India
B.	Central Bank
C.	World Bank
D.	All of the above
Answer» B. Central Bank

Discussion

44.	As a fixed-rate mortgage nears maturity, the portion of the monthly mortgage payment that is applied to principal _________ while the amount that is applied to interest ___________.
A.	Decreases; increases
B.	Increases; decreases
C.	Does not change; decreases
D.	Increases; does not change
Answer» C. Does not change; decreases

Discussion

45.	Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act popularly known as SARFAESI Act was enacted in which of the following year:
A.	21st Day of June 2002
B.	30th Day of May 2002
C.	21st Day of July 2002
D.	21st Day of April 2002
Answer» B. 30th Day of May 2002

Discussion

46.	The rate of interest charged for the loan by the banker compared to overdraft and cash credit is generally.
A.	High
B.	Low
C.	Same
D.	Based on the amount
Answer» C. Same

Discussion

47.	As part of a mortgage agreement, a financial institution places a lien on the property until the loan is paid in full.
A.	True
B.	False
C.	none
D.	none
Answer» B. False

Discussion

48.	When financial institutions and banks undertake activities related to banking like investment, issue of debit and credit card etc then it is known as _____________________.
A.	Internet banking
B.	Universal banking
C.	Virtual Banking
D.	Wholesale banking
Answer» C. Virtual Banking

Discussion

49.	. _________ paid at closing can reduce the interest rate used to determine the monthly payments on a mortgage.
A.	Discount points
B.	Down payments
C.	Loan origination fees
D.	Amortization rates
Answer» B. Down payments

Discussion

50.	When a financial institution sells a mortgage with recourse, the financial institution retains a credit risk liability in the event the buyer returns the mortgage.
A.	True
B.	False
C.	none
D.	none
Answer» B. False

Discussion

Explore topic-wise MCQs in Bachelor of Commerce (B Com).

In which year, the Banking Regulation Act was amended to include cooperative banks under its purview by adding the Section 56.

In the case of a banking company incorporated outside India balance-sheet and profit and loss account shall be signed by _________ of the company.

The Reserve Bank of India is given the responsibility of regulating and supervising the _________ under Reserve Bank of India Act, 1934.

Which section of Banking Regulation Act 1949 relates with the Power of Reserve Bank to issue directions in respect of stressed assets?

Regional rural bank means a regional rural bank established under section 3 of the Regional Rural Banks Act, __________.

In case of banking company incorporated outside India, aggregate value of its paid-up capital and reserve shall not be less than Rs. __________.

Reserve Bank means the Reserve Bank of India constituted under section 3 of the Reserve Bank of India Act, _________.

In case of an Indian banking company, the sum of its paid-up capital and reserves if it has places of business in more than one State shall not be less than

As per the provisions of which act all financial institutions have to maintain a record for all form of transactions?

Which of the following Act refers to the acquisition and transfer of the undertakings of certain banking companies?

These days Banks are offering Loans against Property? Under which business segment, this activity may be categorized?

Delay, unpredictability and cost are considered as three main enemies of efficient administration of justice.

Conciliation is a private, informal process in which a neutral third person helps disputing parties to reach an agreement.

A cheque has been deposited by a customer with his bank for collection. The bank allows overdraft against the security thereof. The bank becomes

Collecting a cheque payable to the firm to the private account of a partner without enquiry constitutes.......

In case collection of a bank draft the collecting banker is protected against conversion under _____ section of Negotiable Instruments Act 1881.

The collecting banker is bound to show due care and carefulness in the collection of cheques presented to him.

The endorsement on the cheque is fictitious and the collecting banker failed to check it the cheque is paid by the paying banker

When the cheque is dishonored, the collecting banker is not bound to give notice of the same to his customer within a reasonable time.

In case a collecting banker has realized the cheque, he should pay the interest to the customer as per his (customer s) direction.

Holder is an individual who has lawfully received possession of a Commercial Paper, such as a cheque and who is entitled for payment on such instrument.

Which one of the following is the rate at which the RBI lends money to commercial banks in the event of any shortfall of funds?

. Reserve Bank has the power under __________ of the Securitisation Act to cancel the Certificate of Registration issued by it to any ARC:

RAM a transporter has been granted a loan for purchase of a truck. You will create which of the following charge.

The mortgager transfers the mortgaged property to the mortgagee on the condition that it will be retransferred upon payment of mortgaged money. This is

In case of sufficiency of funds in the account of the drawer which can be properly used to pay the cheque, the banker must pay the cheque when required to do so.

The written instructions given by the customers to banker to perform the services like collection and payment of money is noted down in

Dishonour of Negotiable Instrument by Non Payment is covered under section in Negotiable Instrument Act 1882

It is a ----------------- obligation of a banker to honour the cheques of the customer drawn against current

Which of the following Committee recommended to form a new category of Bank Called Payment Banks?

The best procedure for opening an account in the name of a minor X and the guardian Y would be under the style.............

It is a ----------------- obligation of a banker to honour the cheques of the customer drawn against current account.

The paying banker is protected under following SECTION for payment of cheque with forged signature of the drawer.

Special damages refers to damages payable by a banker to his customer for the actual ------------- loss suffered by customer.

Section 45 of the Negotiable instruments Act, has imposed upon the banker the obligation to honour customers cheques.

Before which for a can an asset reconstruction company file an application for enforcement of its security interest:

When banker received deposits from the customer, then the banker becomes -------------- of the customer.

When customer's account overdrawn or when customer has taken loan from banker, then the customer.

The paying banker who makes cash payment of a cross cheque at the counter shall be liable for the loss of

The bank can consider ------------------ lien as their protection against loss on loan or overdraft which was given to its customers.

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.

What is the stamp duty to be paid in respect of any document executed by any banker financial institution for issuing a debenture or bond?

Which bank have given the instructions to the commercial banks regarding the immediate credit of outstation cheques?

As a fixed-rate mortgage nears maturity, the portion of the monthly mortgage payment that is applied to principal _________ while the amount that is applied to interest ___________.

Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act popularly known as SARFAESI Act was enacted in which of the following year:

The rate of interest charged for the loan by the banker compared to overdraft and cash credit is generally.

As part of a mortgage agreement, a financial institution places a lien on the property until the loan is paid in full.

When financial institutions and banks undertake activities related to banking like investment, issue of debit and credit card etc then it is known as _____________________.

. _________ paid at closing can reduce the interest rate used to determine the monthly payments on a mortgage.

When a financial institution sells a mortgage with recourse, the financial institution retains a credit risk liability in the event the buyer returns the mortgage.

As a fixed-rate mortgage nears maturity, the portion of the monthly mortgage payment that is applied to principal _ while the amount that is applied to interest ___.