Ques 1.
The re-endorsement of unpaid bills of exchange in favour of the remitting bank or the accommodate to whom they are returned must be followed by the words:
(a) In case of need please refer to
(b) Without resource to us
(c) Payable at the State Bank of India
(d) None of the above
The purpose of providing depreciation on the bank's property is :
(a) To reduce the profit of the bank
(b) to make usual allowances for annual wear and tear
(c) to enable the bank to recover this amount from the Reserve Bank of India
(d) to Strengthen the financial position of the bank
Ques 3.
Bank Rate is :
(A) a rate of interest charged by the commercial banks from the borrowers for advances against Government Securities
(b) the lowest rate of interest charged by the commercial banks from the borrowers
(c) the rate at which the Reserve Bank of India would rediscount bills of exchange or other eligible commercial papers, or advance against eligible securities to the scheduled banks
(d) the rate at which commercial banks discount bill of exchange for their customers.
Ques 4.
In case of a Hindu Undivided Family, when Karta dies leaving overdraft account :
(a) old account is closed and a new account opened
(b) Fresh HUF letter is obtained
(c) all the co-praceners will operate on the account
(d) None of the above
Ques 5.
In the Balance Sheet of a bank, contingent liabilities are shown :
(a) on the liabilities side of the Balance Sheet
(b) By way of a deduction from the assets
(c) by way of a footnote
(d) in the Schedule on the assets side of Balance Sheet
Ques 6.
When a cheque with forged drawer's signature is paid by the bank , The paying banker:
(a) is protected if the cheque is paid in good faith and without negligence
(b) is protected if the forgery could not have been detected with the exercise of reasonable care and prudence
(c) is not entitled to debit the drawer's account with the amount of the cheque
(d) is liable to the drawer only if there has been no contributory negligence on the part of the draer
Ques 7.
In the matter of handling bills of exchange for collection,. the relationship between customer and the bank is :
(a) trustee and the beneficiary
(b) Principal and agent
(c) bailor and bailee
(d) None of the above
Ques 8.
Ques 8.
A Scheduled bank is one :
(A) which conforms to the requirement of schedule III of the Banking Regulation Act, 1949
(b) Which has been declared as a scheduled bank by the Government of India.
(c) which has deposits exceeding Rs . 10 Crore
(d) Which has its name added to the second scheduled of the Reserve Bank of India Act, 1934
Ques 9.
When a cheque duly signed by the drawer, with particulars written in a hand -writing different
from that of the drawer id presented for payment:
(a) the bank will refuse payment of the cheque as there is a distinct possibility of the cheque signed in blank having been stolen from the drawer and hence, the branch is put on enquiry.
(b) the bank will make the payment provided the cheque is otherwise in order
(c) the bank will make payment only to the authorised representative of the drawer
(d) None of the above
Ques 10.
Crossing denotes :
(a) that the cheque will not be paid acros the counter but will be credited to the account of the holder
(b) that the cheque will be paid through claering only
(c) that the cheque can not be transferred by the payee named therein
(d) it i a direction to the paying banker to make payment to the cheque through a bank
Ques 11.
"Not Negotiable' crossing refers to :
(a) the cheque can not be negotiated
(b) the collecting bank should satisfy itself as to the title of the holder before collecting the cheque
(c) The cheque can not be collected as the protection under Section 131 of the Negotiable Instruments Act, 1881 is not available in such cases
(d) The transferer shall not and shall not be capable of giving a better title to the cheque than that of the transferer.
Ques 12.
In case the advising bank is unable to establish the authenticity of Letter of credit it must:
(a) immediately inform the buyer
(b) Immediately infrom the seller
(c) immediately infrom the issuing bank
(d) none of the above
Que 13.
Examination of the document before making payments is the prime responsibilities of :
(a) seller bank in the seller's country
(b) Buyers bank in the seller's country
(c) negotiating bank
(d) None of the above
Ques 14.
Stand by Letter of Credit is a substitute of :
(a) Letter of Credit
(b) Guarantee
(c) Advise note
(d) None of these
Ques 15.
" e-stamping " denotes:
(a) replacement of the traditional system of affixing postal stamps in postal services
(b) doing away with the need of banks to brand stamps on negotiable instruments manually
(c) sending message through e-mail, where no stamping is necessary
(d) replacing stamp duty required for payment of registration of properties and documents
