The banker has a statutory obligation to.........

Maintain secrecy of his customers' accounts

What is the stamp duty to be paid in respect of any document executed by any banker financialinstitution 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.

What is an impersonal Collateral security?

Guarantee provided for securing the death.

Security in the shape of intangible.

Collateral security given by third party.

Guarantee provided for securing the death.

Collateral security given by the borrower but in the shape of goodwill and trademark.

Which one of the following is the ratio of the loan principal to the appraised value?

Combined Loan To Value: (CLTV) ratio

Who shall be responsible for furnishing information on modification and satisfaction of security interest:

Asset Reconstruction Company or secured creditor

Only the asset reconstruction company

What do we mean by “ECB” in financial terms?

Essential Commercial Borrowings

Section 75 of the Arbitration and Conciliation Act 1996 specifically provides for the confidentiality of all matters relating to the proceedings.

Parties can inspect the records like court proceeding

In case of collection of cheques and bills, the relationship of the banker with the customer is that of

Bank as trustee and customer debtor

Bank as agent and customer trustee

Bank as trustee and customer debtor

Banker as debtor and customer bailee

Banker as bailor and customer bailee

A banker should not refuse payment of a cheque if ________.

The cheque is a post dated cheque.

The cheque is drawn on another branch of the same bank.

The cheque contains an apparent material alteration which is not properly authenticated by the drawer.

the cheque bears more than two endorsements

If a Minor draw, indorse, deliver and negotiate Negotiable Instruments, it binds __

All the parties including minor

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?

No the above principle has nothing to do with Arbitration and Conciliation Act 199

The above principle has been formulated for CPC and not for Arbitration and Conciliation Act 1996

To constitute a person as a customer.......

There must be a single transactions of any nature

There must be frequency of transactions

There must be a dealing of a banking nature

There must be some sort of an account

There must be a single transactions of any nature

Which of the following is the usage of shell companies?

To create the appearance of legitimate transaction through false invoice and financial statements.

To take loan against securities acquired from black money and paying tax on profit.

Managing agent includes

Where the managing agent is a company, and Director of such company, and any member thereof who holds substantial interest in such company

Where the managing agent is a firm, any partner of such firm

815 + Mcqs in Finance in Current Affairs Page 4 McqOptions

151.	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

Discussion

152.	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

Discussion

153.	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

Discussion

154.	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

Discussion

155.	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.

Discussion

156.	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

Discussion

157.	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

Discussion

158.	. 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

Discussion

159.	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.

Discussion

160.	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.

Discussion

161.	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.

Discussion

162.	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

Discussion

163.	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

Discussion

164.	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

Discussion

165.	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

Discussion

166.	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.

Discussion

167.	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.

Discussion

168.	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

Discussion

169.	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

Discussion

170.	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.

Discussion

171.	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

Discussion

172.	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

173.	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.

Discussion

174.	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

Discussion

175.	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

Discussion

176.	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

Discussion

177.	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.

Discussion

178.	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.

Discussion

179.	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

Discussion

180.	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

Discussion

181.	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.

Discussion

182.	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

Discussion

183.	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.

Discussion

184.	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

Discussion

185.	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

Discussion

186.	. _________ 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

Discussion

187.	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

Discussion

188.	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

Discussion

189.	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

Discussion

190.	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

Discussion

191.	------------ is a dead cheque
A.	Post dated cheque
B.	Stale cheque
C.	Ante dated cheque
D.	Pre dated cheque
Answer» C. Ante dated cheque

Discussion

192.	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

Discussion

193.	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

Discussion

194.	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

Discussion

195.	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.

Discussion

196.	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

197.	A drawer in the bill of exchange can also be a
A.	Paymaster
B.	Payee
C.	Banker
D.	Creditor
Answer» C. Banker

Discussion

198.	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

Discussion

199.	---------- 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

Discussion

200.	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

Discussion

Explore topic-wise MCQs in Current Affairs.

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

Not negotiable crossing is a warning to the...........

The banker has a statutory obligation to.........

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

Under what section of the Banking Regulation Act, 1949 the payments banks are licensed?

The document which can be used only for making local payment is........

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

What is an impersonal Collateral security?

The rate at which RBI discounts approved bill of exchange is

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

Which of the following section in the Negotiable Instruments Act deals with the Bill of Exchange?

Which one of the following is the ratio of the loan principal to the appraised value?

Which one of the following pools money from various investors in order to purchase securities?

Which of the following is a document of the title to the goods?

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

Which banker gets protection under section 85 of Negotiable Instrument Act, 1881?

Banking company means any company which transacts the business of ________.

What is the product of the share price and number of the company's outstanding ordinary shares?

A Collecting banker is given the statutory protection only when he acts as...

Who shall be responsible for furnishing information on modification and satisfaction of security interest:

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

What do we mean by “ECB” in financial terms?

Section 75 of the Arbitration and Conciliation Act 1996 specifically provides for the confidentiality of all matters relating to the proceedings.

The reasonable period allowed in India for the presentation of a cheque is

In case of collection of cheques and bills, the relationship of the banker with the customer is that of

The best answer for returning a cheque for want of funds in the account is.........

A banker should not refuse payment of a cheque if ________.

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

Benefits of securitization include all of the following EXCEPT:

If a Minor draw, indorse, deliver and negotiate Negotiable Instruments, it binds __

In executing the standing instructions, there exists a relationship of......

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

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

To constitute a person as a customer.......

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 ___________.

Which of the followings are not the Negotiable Instruments as defined by the Statute…

To get protection under Sec 131 of NI Act collecting banker should collect the cheque

------------ is a dead cheque

Which of the following is the usage of shell companies?

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

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

Managing agent includes

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

A drawer in the bill of exchange can also be a

Who has the power to give directions to other Banking Companies?

---------- 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.

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.

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 ___.