Banking Quiz – 78

1) Banks are required to preserve the old records. The rules regarding preservation are framed by Central Govt., as per provisions of which of the following Act?
a) Indian Evidence Act
b) Limitation Act
c) Banking Regulation Act
d) RBI Act
e) Negotiable Instrument Act 1881

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Answer c) Banking Regulation Act

2) Under Section 5(a) of the Banking Regulation Act 1949, approved securities denote
a) Securities approved by Indian Banks Association
b) Securities defined under section 20 of the Indian Trusts Act 1882
c) The securities approved by IDBI
d) None of these

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Answer b) Securities defined under section 20 of the Indian Trusts Act 1882

3) On the basis of powers drawn mainly in which of the following Acts, RBI regulates and controls the banks in India?
a) Banking Regulation Act and RBI Act
b) RBI Act and Companies Act
c) Banking Regulation Act and Companies Act
d) Banking Regulation Act, RBI Act and Negotiable Instruments Act
e) None of these

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Answer a) Banking Regulation Act and RBI Act

4) Banks can undertake the business of banking and ‘banking’ as a term has been defined under _____ 
a) Banking Regulation Act Section
b) Banking Regulation Act Section 17
c) RBI Act Section 2(2)
d) Negotiable Instruments Act Section 1
e) None of these

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Answer a) Banking Regulation Act Section

5) Banks have prohibited to staple bank notes by RBI by issuing strict directives for implementation. Under which of the following, these directives have been issued?
a) Section 35 A of Indian Currency Act
b) Section 35 A : Negotiable Instrument Act
c) Section 35 A of Banking Regulation Act
d) Section 35 of Reserve Bank of India Act
e) None of these

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Answer c) Section 35 A of Banking Regulation Act

6) All banking company are to prepare balance sheet and profit & loss account as on Mar 31 every year is prescribed in
a) Companies Act 1956
b) 2nd schedule of RBI Act 1934
c) Banking Regulations Act
d) None of the above

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Answer c) Banking Regulations Act

7) The annual return of unclaimed deposits u/s 26 of Banking Regulation Act should be submitted to RBI within the following days after close of the calendar year
a) 15 days
b) 23 days
c) 30 days
d) 45 days

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Answer c) 30 days

8) A cheque is defined u/s ____ of NI Act
a) 6
b) 13
c) 3
d) 10
e) 9

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Answer a) 6

9) Legal amount in a cheque stands for
a) amount in words
b) amount in figures
c) amount written as not over
d) amount in words in figures, whichever is higher

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Answer a) amount in words

10) On a cheque issued by a customer, the words bearer or order are not written. This cheque will be treated as
a) A bearer cheque
b) An order cheque
c) This is not a valid cheque
d) This is not a negotiable instrument now

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Answer b) An order cheque

11) BoP (Balance of Payment) refers to
a) Transaction in the flow of capital
b) Transactions relating to receipts and payment of invisibles
c) Transactions relating only to exports and imports
d) Systematic record of all its economic transaction with the rest of the world
e) None of the above

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Answer d) Systematic record of all its economic transaction with the rest of the world

12) How many RRBs are working in the economy?
a) 125
b) 196
c) 216
d) 84
e) 95

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Answer d) 84

13) Which of the following is a selective credit control method?
a) Bank rate
b) RBI directives
c) Cash reserve ratio
d) Open Market operations
e) None of these

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Answer b) RBI directives

14) Which pair is not correct?
a) EXIM Bank – Financing for export – import
b) RBI – banker`s bank
c) IDBI – Industrial finance
d) FCI – Financial assistance to commercial institutions
e) All are correct

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Answer d) FCI – Financial assistance to commercial institutions

15) Due to which of these reasons India had to export gold to bank England in 1991?
a) India returned U.K. gold
b) India returned gold taken as loan from U.K.
c) To meet foreign exchange crisis
d) For investment in British Companies
e) None of the above

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Answer c) To meet foreign exchange crisis

16) Which of the following deposits is not accepted by commercial banks?
a) Fixed deposit
b) Demand deposit
c) Saving deposit
d) Public account deposit
e) None of these

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Answer d) Public account deposit

17) Moral situation is
a) a term descriptive of corrupt practises of many banks
b) A term applied to banks that are conservative in their banking practises
c) Persuasion of banks to adhere to central bank desires
d) Denotes conduct or character that is bad and vice
e) Non of the above

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Answer c) Persuasion of banks to adhere to central bank desires

18) The first public sector bank in India which obtained license for Internet Banking from RBI is
a) Punjab National Bank
b) Oriental bank of commerce
c) Corporation bank
d) State bank of India
e) None of the above

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Answer a) Punjab National Bank

19) Open market operations mean sale or purchase in the open market of
a) Foreign exchange
b) Goods and services
c) Gold bullion
d) Government securities
e) None of the above

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Answer d) Government securities

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