Question 1

A cheque is payable on-----------------&#10;A)Demand&#10;B)After certain date&#10;C)On a fixed future date&#10;D)None of these

Accepted Answer

A cheque is payable on demand, meaning it can be cashed or deposited immediately upon presentation to the bank.

Question 2

Two parallel transfers lines across the cheque is called --------------.&#10;A)Endorsement&#10;B)Transfer&#10;C)Assignment&#10;D)Crossing

Accepted Answer

Two parallel lines across a cheque indicate that it is a crossed cheque, which means it cannot be cashed directly at a bank counter but must be deposited into the payee's account.

Question 3

Crossing is a direction to the---------------bank to pay the cheque to the payee through a bank.&#10;A)Drawer&#10;B)Payee&#10;C)Paying&#10;D)collecting

Accepted Answer

Crossing a cheque means adding two parallel lines on the face of the cheque with or without additional words. This is a direction to the paying bank that the cheque should be deposited directly into a bank account and not cashed over the counter, ensuring an added layer of security.

Question 4

When a cheque is drawn on a bank, the banker is called the___________&#10;A)Drawer&#10;B)Endorser&#10;C)Acceptor&#10;D)Drawee

Accepted Answer

When a cheque is drawn on a bank, the banker is referred to as the drawee. This is because the drawee is the party upon whom the cheque is drawn and who is expected to pay the amount specified.

Question 5

The crossing ina crossed cheque can be cancelled by--------------------------&#10;A)Drawer&#10;B)Endorser&#10;C)Acceptor&#10;D)Drawee

Accepted Answer

The drawer of a cheque has the authority to cancel the crossing on a cheque, which essentially means they can convert a crossed cheque back into an open cheque by cancelling the crossing instructions initially made on the cheque.

Question 6

Acts done honestly is called the acts done&#10;A)Without negligence&#10;B)Rashly&#10;C)Mollified&#10;D)In good faith

Accepted Answer

Acts done honestly are referred to as acts done in good faith. "In good faith" means with sincere and honest intentions or beliefs, without intent to defraud or seek unfair advantage.

Question 7

Mere signature of the payee on the reverse of the instrument is called ___________endorsement&#10;A)Full&#10;B)Blank&#10;C)Conditional&#10;D)Restrictive

Accepted Answer

A blank endorsement on a financial instrument, such as a check, is simply the signature of the payee written on the back. This type of endorsement makes the instrument payable to the bearer and can be cashed or transferred by anyone who holds it.

Question 8

&#34; Sans resource&#34; means________________&#10;A)I am not afraid&#10;B)Do not touch me&#10;C)Ask the drawer&#10;D)Without liability to me

Accepted Answer

"Sans resource" is a term that means "without liability to me," indicating that the speaker or subject is not responsible or liable.

Question 9

Garnishee order is issued by__________&#10;A)Police officer&#10;B)Revenue Authority&#10;C)Enforcement Authority&#10;D)Court of law

Accepted Answer

A garnishee order is issued by a court of law. It is a legal order that allows a creditor to collect a debt from a debtor by seizing the funds directly from a third party (often the debtor's employer or bank).

Question 10

Mandate is-----------------&#10;A)Stamped agreement&#10;B)Order of the court of law&#10;C)Memorandum of understanding&#10;D)Stamped documents

Accepted Answer

The answer of Mandate is-----------------&#10;A)Stamped agreement&#10;B)Order of the court of...

Question 11

Reserve bank was constituted under&#10;A)BR act&#10;B)RBI act&#10;C)Companies act&#10;D)Income Tax act

Accepted Answer

The answer of Reserve bank was constituted under&#10;A)BR act&#10;B)RBI act&#10;C)Companies...

Question 12

Banking companies are licensed by _______________&#10;A)Reserve bank&#10;B)Registrar of Companies&#10;C)Company Law board&#10;D)None of these

Accepted Answer

The answer of Banking companies are licensed by _______________&#10;A)Reserve bank&#10;B)Registrar...

Question 13

E banking customers need not visit the bank , to meet cash requirement of self through&#10;A)Electronic funds transfer&#10;B)Tele Banking&#10;C)On- line banking&#10;D)ATM

Accepted Answer

The answer of E banking customers need not visit the...

Question 14

Tele-Banking services function is available with bank computers , based on&#10;A)Virtual banking&#10;B)Voice processing&#10;C)Brick and Mortar processing&#10;D)None of these

Accepted Answer

The answer of Tele-Banking services function is available with bank...

Question 15

Benefits of e-banking to consumer&#10;A)Anywhere banking&#10;B)Anytime banking&#10;C)Reduction in cost&#10;D)All of the above

Accepted Answer

The answer of Benefits of e-banking to consumer&#10;A)Anywhere banking&#10;B)Anytime banking&#10;C)Reduction...

Question 16

Banking regulation act was passed in &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.&#10;A)1959&#10;B)1969&#10;C)1949&#10;D)1939

Accepted Answer

The answer of Banking regulation act was passed in &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.&#10;A)1959&#10;B)1969&#10;C)1949&#10;D)1939...

Question 17

Which of the following limits the power of credit creation by commercial banks&#10;A)Fiscal policy&#10;B)Monetary policy&#10;C)Business pessimism&#10;D)None of these

Accepted Answer

The answer of Which of the following limits the power...

Question 18

The institution that provides long term loan to industries&#10;A)Industrial bank&#10;B)Commercial Bank&#10;C)Exchange bank&#10;D)Central bank

Accepted Answer

The answer of The institution that provides long term loan...

Question 19

The banks which are owned and controlled by government&#10;A)Government banks&#10;B)Public sector banks&#10;C)New generation banks&#10;D)None of these

Accepted Answer

The answer of The banks which are owned and controlled...

Question 20

How many banks were nationalized in 1969&#10;A)12&#10;B)14&#10;C)15&#10;D)13

Accepted Answer

The answer of How many banks were nationalized in 1969&#10;A)12&#10;B)14&#10;C)15&#10;D)13...

Question 21

HDFC bank is an example of &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#10;A)Private sector Indian bank&#10;B)Private sector foreign bank&#10;C)Public sector bank&#10;D)Nationalized bank

Accepted Answer

The answer of HDFC bank is an example of &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#10;A)Private...

Question 22

&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230; is the central bank of India&#10;A)RBI&#10;B)Imperial bank&#10;C)SBI&#10;D)None of these

Accepted Answer

The answer of &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230; is the central bank of India&#10;A)RBI&#10;B)Imperial...

Question 23

Accepting deposits and lending money is the &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.function of commercial banks&#10;A)Primary&#10;B)Secondary&#10;C)General utility&#10;D)Agency functions

Accepted Answer

The answer of Accepting deposits and lending money is the...

Question 24

CRR stands for &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.&#10;A)Current Reserve Ration&#10;B)Cash Reserve Ration&#10;C)Cumulative Reserve Ration&#10;D)None of these

Accepted Answer

The answer of CRR stands for &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.&#10;A)Current Reserve Ration&#10;B)Cash Reserve...

Question 25

EMI stands for &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#10;A)Equated Monthly Installment&#10;B)Earning Monthly Interest&#10;C)Equally Money Investment&#10;D)None of these

Accepted Answer

The answer of EMI stands for &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#10;A)Equated Monthly Installment&#10;B)Earning Monthly...

Deck 4: Banking Terminology and Functions