Question 1

Which of the following are not methods of credit control&#10;A)bank rate&#10;B)rationing credit&#10;C)issue of notes&#10;D)direct action

Accepted Answer

Issue of notes is not a method of credit control; it refers to the process of issuing currency, which is primarily a function of the central bank related to money supply rather than a direct tool for controlling credit. Bank rate adjustments, credit rationing, and direct action are all methods used by central banks to influence the amount of credit in the economy.

Question 2

The banker will refuse payment against&#10;A)post dated cheque&#10;B)mutilated cheque&#10;C)insufficient fund in a/c&#10;D)all of these

Accepted Answer

The banker will refuse payment against a post-dated cheque because it is not yet valid until the date written on it, a mutilated cheque due to its physical condition making it questionable or unverifiable, and a cheque drawn against insufficient funds in the account because there are not enough funds to cover the amount of the cheque.

Question 3

The following is not a demand deposit&#10;A)fixed deposit&#10;B)annuity deposit&#10;C)fixed deposit due&#10;D)all of these

Accepted Answer

Fixed deposits are not demand deposits because they cannot be withdrawn on demand.

Question 4

A cheque bearing a back date from the date of issue is&#10;A)stale cheque&#10;B)post dated cheque&#10;C)marked cheque&#10;D)ante dated cheque

Accepted Answer

An ante-dated cheque is one that bears a date earlier than the date of its issue.

Question 5

Banker lien shall not exercise upon&#10;A)cheques for collection&#10;B)bills for collection&#10;C)call deposit&#10;D)safe custody deposits

Accepted Answer

Banker's lien cannot be exercised on safe custody deposits because these are items or documents kept with the bank for safekeeping, not for the purpose of creating a security interest or for any debt obligation.

Question 6

Key loans are usually allowed on&#10;A)buildings&#10;B)goods under safe custody&#10;C)goods in transit&#10;D)goods for sale

Accepted Answer

The answer of Key loans are usually allowed on&#10;A)buildings&#10;B)goods under...

Question 7

The country popular for unit banking is&#10;A)russia&#10;B)india&#10;C)america&#10;D)britain

Accepted Answer

America is known for its unit banking system, where banks operate independently without branches, offering services from a single location.

Question 8

Overdraft facility is allowed to reputed customers on&#10;A)sb account&#10;B)current account&#10;C)fixed deposit&#10;D)call deposit

Accepted Answer

Overdraft facility is typically allowed on current accounts for businesses or reputed customers, enabling them to withdraw more money than is available in their account, up to a certain limit. This facility is not commonly provided on savings accounts, fixed deposits, or call deposits, as these are intended for saving rather than frequent transactions or business operations.

Question 9

The authority controlling the clearing house scheme is&#10;A)rbi&#10;B)sbi&#10;C)sebi&#10;D)govt.

Accepted Answer

The Reserve Bank of India (RBI) controls the clearing house scheme, as it is the central banking institution of India responsible for regulating the country's monetary policy and overseeing its financial system, including clearing and settlement systems.

Question 10

Crossing of a cheque can be done by&#10;A)drawer only&#10;B)payee only&#10;C)any holder&#10;D)none of these

Accepted Answer

Crossing of a cheque can be done by any holder of the cheque, not just the drawer or payee. This is a security measure to ensure that the cheque is deposited directly into a bank account and not cashed out by just anyone.

Question 11

Cash Reserve Ratio of banks is insisted in RBI Act of 1934 under section&#10;A)15&#10;B)42&#10;C)32&#10;D)18

Accepted Answer

The answer of Cash Reserve Ratio of banks is insisted...

Question 12

In order to determine a cheque valid or not one has to examine..........&#10;A)actual date of issue&#10;B)date of receipt by payee&#10;C)date of endorsement&#10;D)date that cheque bears

Accepted Answer

The answer of In order to determine a cheque valid...

Question 13

RBI is an example of&#10;A)chartered company&#10;B)statutory company&#10;C)registered company&#10;D)unlimited company

Accepted Answer

The answer of RBI is an example of&#10;A)chartered company&#10;B)statutory company&#10;C)registered...

Question 14

A bank draft is drawn by&#10;A)customer&#10;B)bank&#10;C)trader&#10;D)any of the above

Accepted Answer

The answer of A bank draft is drawn by&#10;A)customer&#10;B)bank&#10;C)trader&#10;D)any of...

Question 15

Pledge means........&#10;A)advance against goods&#10;B)to draw over and above deposit&#10;C)bailment of goods as security&#10;D)mortgage of building

Accepted Answer

The answer of Pledge means........&#10;A)advance against goods&#10;B)to draw over and...

Question 16

One Rupee notes is issued by&#10;A)rbi&#10;B)sbi&#10;C)ministry of finance&#10;D)both rbi and govt.

Accepted Answer

The answer of One Rupee notes is issued by&#10;A)rbi&#10;B)sbi&#10;C)ministry of...

Question 17

A place where representatives of banks meet to settle cheques for collection&#10;A)bankers club&#10;B)acceptance bank&#10;C)clearing house&#10;D)discount house

Accepted Answer

The answer of A place where representatives of banks meet...

Question 18

Which of the following is subsidiary function of a bank&#10;A)accepting deposit&#10;B)granting credit&#10;C)safe custodial service&#10;D)banking services

Accepted Answer

The answer of Which of the following is subsidiary function...

Question 19

Ownership of IDBI is vested with&#10;A)rbi&#10;B)govt. of india&#10;C)sbi&#10;D)sidbi

Accepted Answer

The answer of Ownership of IDBI is vested with&#10;A)rbi&#10;B)govt. of...

Question 20

Credit card system was firstly developed in..........&#10;A)bank of england&#10;B)bank of america&#10;C)rbi&#10;D)bank of tokyo

Accepted Answer

The answer of Credit card system was firstly developed in..........&#10;A)bank...

Question 21

Call deposit is modified form of................&#10;A)fixed deposit&#10;B)demand draft&#10;C)term deposit&#10;D)sb deposit

Accepted Answer

The answer of Call deposit is modified form of................&#10;A)fixed deposit&#10;B)demand...

Question 22

The EXIM bank established in the year&#10;A)1982&#10;B)1992&#10;C)1998&#10;D)1975

Accepted Answer

The answer of The EXIM bank established in the year&#10;A)1982&#10;B)1992&#10;C)1998&#10;D)1975...

Question 23

NABARD was established in the year&#10;A)1986&#10;B)1982&#10;C)1990&#10;D)1964

Accepted Answer

The answer of NABARD was established in the year&#10;A)1986&#10;B)1982&#10;C)1990&#10;D)1964...

Question 24

Lead Bank scheme was introduced by RBI in the year&#10;A)1986&#10;B)1969&#10;C)1975&#10;D)1980

Accepted Answer

The answer of Lead Bank scheme was introduced by RBI...

Question 25

Rule of Claytons Case is related with&#10;A)fixed deposit&#10;B)appropriation of debt&#10;C)cash credit&#10;D)term loans

Accepted Answer

The answer of Rule of Claytons Case is related with&#10;A)fixed...

Deck 3: Banking and Financial Services