MCQOPTIONS
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MCQOPTIONS
This section includes 657 Mcqs, each offering curated multiple-choice questions to sharpen your Testing Subject knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Which bank have given the instructions to the commercial banks regarding the immediate credit ofoutstation cheques? |
| A. | Reserve Bank of India |
| B. | Central Bank |
| C. | World Bank |
| D. | All of the above |
| Answer» B. Central Bank | |
| 2. |
Not negotiable crossing is a warning to the........... |
| A. | Paying banker |
| B. | Collecting banker |
| C. | Holder |
| D. | (a) and (b) together |
| Answer» D. (a) and (b) together | |
| 3. |
The banker has a statutory obligation to......... |
| A. | Honour customers' cheque |
| B. | Exercise lien |
| C. | Maintain secrecy of his customers' accounts |
| D. | Honour customers' bill |
| Answer» B. Exercise lien | |
| 4. |
Which of the following is/are false about Dishonour of Cheque? A) Section 138 defines Dishonour of cheque for insufficiency, etc., of funds in the account. B) Such cheque has been presented to the bank within a period of twelve months from the date on which it is drawn or within the period of its validity, whichever is earlier C) Imprisonment for such offence may be extended for period of five year D) Section 138 apply unless – the drawer of such cheque fails to make the payment of the said amount of money to the payee or, as the case may be, to the holder in due course of the cheque, within fifteen days of the receipt of the said notice. |
| A. | (A) and (D) |
| B. | (B) and (C) |
| C. | (B),(C) and |
| Answer» C. (B),(C) and | |
| 5. |
What is the stamp duty to be paid in respect of any document executed by any banker financialinstitution 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. | |
| 6. |
Under what section of the Banking Regulation Act, 1949 the payments banks are licensed? |
| A. | 22 |
| B. | 2 |
| C. | 19 |
| D. | 11 |
| Answer» B. 2 | |
| 7. |
The document which can be used only for making local payment is........ |
| A. | A cheque |
| B. | A bill of exchange |
| C. | A banker's cheque |
| D. | A draft |
| Answer» D. A draft | |
| 8. |
. Reserve Bank has the power under __________ of the Securitisation Act to cancel the Certificate ofRegistration issued by it to any ARC: |
| A. | Section 5 |
| B. | Section 8 |
| C. | Section 4 |
| D. | Section 12 |
| Answer» D. Section 12 | |
| 9. |
What is an impersonal Collateral security? |
| A. | Security in the shape of intangible. |
| B. | Collateral security given by third party. |
| C. | Guarantee provided for securing the death. |
| D. | Collateral security given by the borrower but in the shape of goodwill and trademark. |
| Answer» C. Guarantee provided for securing the death. | |
| 10. |
The rate at which RBI discounts approved bill of exchange is |
| A. | Bank rate |
| B. | Interest rate |
| C. | Exchange rate |
| D. | Discount rate |
| Answer» E. | |
| 11. |
The paying banker is protected under following SECTION for payment of cheque with forged signatureof 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. | |
| 12. |
Which of the following section in the Negotiable Instruments Act deals with the Bill of Exchange? |
| A. | Section 5 |
| B. | Section 6 |
| C. | Section 4 |
| D. | Section 13 |
| Answer» B. Section 6 | |
| 13. |
Which one of the following is the ratio of the loan principal to the appraised value? |
| A. | Combined Loan To Value: (CLTV) ratio |
| B. | Loan-to-Value Ratio |
| C. | Mortgage Loan |
| D. | Statutory Liquidity Ratio |
| Answer» C. Mortgage Loan | |
| 14. |
Which one of the following pools money from various investors in order to purchase securities? |
| A. | Fund derivative |
| B. | Money fund |
| C. | Mutual fund |
| D. | Pension fund |
| Answer» D. Pension fund | |
| 15. |
Which of the following is a document of the title to the goods? |
| A. | Bill of entry |
| B. | Letter of credit |
| C. | Bill of lading |
| D. | Certificate of origin |
| Answer» D. Certificate of origin | |
| 16. |
These days Banks are offering Loans against Property? Under which business segment, this activitymay be categorized? |
| A. | Corporate Banking |
| B. | Personal Banking |
| C. | Merchant Banking |
| D. | Portfolio Management services |
| Answer» E. | |
| 17. |
Which banker gets protection under section 85 of Negotiable Instrument Act, 1881? |
| A. | Collecting banker. |
| B. | Paying banker. |
| C. | Issuing banker. |
| D. | Both a and b. |
| Answer» C. Issuing banker. | |
| 18. |
Banking company means any company which transacts the business of ________. |
| A. | Banking only |
| B. | Banking & Insurance |
| C. | Banking & Foreign Exchange |
| D. | Banking & Manufacturing |
| Answer» B. Banking & Insurance | |
| 19. |
What is the product of the share price and number of the company's outstanding ordinary shares? |
| A. | Market Capitalization |
| B. | Market Price |
| C. | Market Trend |
| D. | Treasury Stock |
| Answer» B. Market Price | |
| 20. |
A Collecting banker is given the statutory protection only when he acts as... |
| A. | A banker |
| B. | A holder for value |
| C. | A holder in due course |
| D. | An agent |
| Answer» E. | |
| 21. |
Who shall be responsible for furnishing information on modification and satisfaction of security interest: |
| A. | Asset Reconstruction Company or secured creditor |
| B. | Only secured creditor |
| C. | Only the asset reconstruction company |
| D. | Borrower or secured creditor |
| Answer» B. Only secured creditor | |
| 22. |
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 | |
| 23. |
What do we mean by “ECB” in financial terms? |
| A. | Essential Commercial Borrowings |
| B. | Essential Credit & Borrowings |
| C. | External Credit & Business |
| D. | External Commercial Borrowings |
| Answer» E. | |
| 24. |
Section 75 of the Arbitration and Conciliation Act 1996 specifically provides for the confidentiality of all matters relating to the proceedings. |
| A. | False |
| B. | true |
| C. | Parties can inspect the records like court proceeding |
| D. | none |
| Answer» C. Parties can inspect the records like court proceeding | |
| 25. |
The reasonable period allowed in India for the presentation of a cheque is |
| A. | 1 year |
| B. | 3 months |
| C. | 9 months |
| D. | depending upon custom |
| Answer» C. 9 months | |
| 26. |
In case of collection of cheques and bills, the relationship of the banker with the customer is that of |
| A. | Bank as agent and customer trustee |
| B. | Bank as trustee and customer debtor |
| C. | Banker as debtor and customer bailee |
| D. | Banker as bailor and customer bailee |
| Answer» B. Bank as trustee and customer debtor | |
| 27. |
The best answer for returning a cheque for want of funds in the account is......... |
| A. | Refer to drawer |
| B. | Not provided for |
| C. | Exceeds arrangement |
| D. | Not sufficient funds |
| Answer» E. | |
| 28. |
A banker should not refuse payment of a cheque if ________. |
| A. | The cheque is a post dated cheque. |
| B. | The cheque is drawn on another branch of the same bank. |
| C. | The cheque contains an apparent material alteration which is not properly authenticated by the drawer. |
| D. | the cheque bears more than two endorsements |
| Answer» E. | |
| 29. |
When the cheque is dishonored, the collecting banker is not bound to give notice of the same to hiscustomer within a reasonable time. |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» C. none | |
| 30. |
Benefits of securitization include all of the following EXCEPT: |
| A. | Reduced credit risk |
| B. | Generation of income |
| C. | Greater reserve requirements |
| D. | Increased liquidity |
| Answer» D. Increased liquidity | |
| 31. |
The Negotiable Instruments (Amendment) Bill, 2017 inserted a provision allowing a court trying an offence related to cheque bouncing, to direct the drawer (person who writes the cheque) to pay interim compensation to the complainant. The interim compensation will not exceed ___% of the cheque amount? |
| A. | 15% |
| B. | 25% |
| C. | 30% |
| D. | 20% |
| Answer» E. | |
| 32. |
If a Minor draw, indorse, deliver and negotiate Negotiable Instruments, it binds __ |
| A. | All the parties except minor |
| B. | All the parties including minor |
| C. | Minor Only |
| D. | Minor and Only Drawer |
| Answer» B. All the parties including minor | |
| 33. |
In executing the standing instructions, there exists a relationship of...... |
| A. | debtor and creditor |
| B. | Trustee and Beneficiary |
| C. | Bailee and Bailor |
| D. | Agent and Principal |
| Answer» E. | |
| 34. |
In Shakuntla Sawhney v. Kaushalaya Sawhney,[(1979) 3 SCR 232]the Supreme Court has observed that “Finest hour of justice is the hour of compromise when parties after burying the hatchet, re-unite by a reasonable and just compromise” Whether this principle has been reflected in the ADR procedures mentioned in the Arbitration and Conciliation Act 1996? |
| A. | Yes |
| B. | No the above principle has nothing to do with Arbitration and Conciliation Act 199 |
| C. | The above principle has been formulated for CPC and not for Arbitration and Conciliation Act 1996 |
| D. | none |
| Answer» B. No the above principle has nothing to do with Arbitration and Conciliation Act 199 | |
| 35. |
In which year, the Banking Regulation Act was amended to include cooperative banks under itspurview by adding the Section 56. |
| A. | 1964 |
| B. | 1965 |
| C. | 1986 |
| D. | 1987 |
| Answer» C. 1986 | |
| 36. |
. _________ paid at closing can reduce the interest rate used to determine the monthly payments on amortgage. |
| A. | Discount points |
| B. | Down payments |
| C. | Loan origination fees |
| D. | Amortization rates |
| Answer» B. Down payments | |
| 37. |
To constitute a person as a customer....... |
| A. | There must be frequency of transactions |
| B. | There must be a dealing of a banking nature |
| C. | There must be some sort of an account |
| D. | There must be a single transactions of any nature |
| Answer» D. There must be a single transactions of any nature | |
| 38. |
As a fixed-rate mortgage nears maturity, the portion of the monthly mortgage payment that is appliedto 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 | |
| 39. |
Which of the followings are not the Negotiable Instruments as defined by the Statute… |
| A. | Banker’s Note |
| B. | Promissory Note |
| C. | Bill of Exchange |
| D. | Cheques |
| Answer» B. Promissory Note | |
| 40. |
To get protection under Sec 131 of NI Act collecting banker should collect the cheque |
| A. | crossed generally |
| B. | crossed specially |
| C. | 1 or 2 |
| D. | crossed a/c payee |
| Answer» D. crossed a/c payee | |
| 41. |
------------ is a dead cheque |
| A. | Post dated cheque |
| B. | Stale cheque |
| C. | Ante dated cheque |
| D. | Pre dated cheque |
| Answer» C. Ante dated cheque | |
| 42. |
Which of the following is the usage of shell companies? |
| A. | To create the appearance of legitimate transaction through false invoice and financial statements. |
| B. | To take loan against securities acquired from black money and paying tax on profit. |
| C. | Both (i) and (ii) |
| D. | None of the above |
| Answer» D. None of the above | |
| 43. |
The mortgager transfers the mortgaged property to the mortgagee on the condition that it will beretransferred 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 | |
| 44. |
Regional rural bank means a regional rural bank established under section 3 of the Regional RuralBanks Act, __________. |
| A. | 1974 |
| B. | 1975 |
| C. | 1976 |
| D. | 1977 |
| Answer» D. 1977 | |
| 45. |
Managing agent includes |
| A. | Secretaries and Treasurers |
| B. | Where the managing agent is a company, and Director of such company, and any member thereof who holds substantial interest in such company |
| C. | Where the managing agent is a firm, any partner of such firm |
| D. | All of the above |
| Answer» E. | |
| 46. |
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 | |
| 47. |
A drawer in the bill of exchange can also be a |
| A. | Paymaster |
| B. | Payee |
| C. | Banker |
| D. | Creditor |
| Answer» C. Banker | |
| 48. |
Who has the power to give directions to other Banking Companies? |
| A. | RBI |
| B. | Government of India |
| C. | Registrar |
| D. | Auditor |
| Answer» B. Government of India | |
| 49. |
---------- is the right of a person to retain the property of another person in his possession untill thedebt from that owner of that property is repaid. |
| A. | Lien |
| B. | Retainment |
| C. | Retrenchment |
| D. | Libel |
| Answer» B. Retainment | |
| 50. |
Holder is an individual who has lawfully received possession of a Commercial Paper, such as a chequeand who is entitled for payment on such instrument. |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» B. False | |