Banking Quiz – 52

BANKING QUIZ

1. When an endorser waives presentment and notice of dishonour, he increases his liability. His endorsement is
a) Facultative endorsement
b) Qualified endorsement
c) Alternative endorsement
d) Restrictive endorsement
e) None of the above

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Answer b) Qualified endorsement

2. Which of the following cooperative bank is considered as the first cooperative bank in India?
a) Greater Bombay Cooperative Bank Limited
b) Abhyudaya Cooperative Bank Limited
c) Ahmedabad Mercantile Cooperative Bank Limited
d) Amanath Cooperative Bank Limited
e) Anyonya Cooperative Bank

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Answer e) Anyonya Cooperative Bank

3. According to the risk diversification principle of bank lending, diversification should be in terms of
a) customer base
b) geographic location
c) nature of business
d) All of these
e) None of these

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Answer d) All of these

4. Axis bank is a
a) Public Sector Bank
b) Private Sector Bank
c) Cooperative Bank
d) Foreign Bank
e) Gramin Bank

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Answer b) Private Sector Bank

5. Savings account with zero balance can be opened for
a) person of high net worth
b) employees of IT companies
c) weaker sections of society
d) women customers
e) None of these

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Answer c) weaker sections of society

6. In 1991, the SLR was as high as
a) 25%
b) 30%
c) 38.5%
d) 39.5%
e) 40%

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Answer c) 38.5%

7. Rupee coins are the legal tender in India under the provisions of
a) Reserve Bank of India Act 1934
b) Negotiable Instruments Act 1881
c) Banking Regulation Act 1949
d) Indian Coinage Act 1906
e) None of the above

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Answer d) Indian Coinage Act 1906

8. In an economy’s Balance of Payments account
a) the capital and current accounts must add to one
b) the current account is always greater than the capital account
c) both the balance on current account and the balance on capital account are zero
d) the capital plus current account balances must equal zero
e) capital outflows must equal capital inflows

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Answer d) the capital plus current account balances must equal zero

9. Which one of the following percentages is the share of the Indian export in the international TRADE?
a) less than 1%
b) more than 1%, but less than 3%
c) more than 3%, but less than 5%
d) more than 5%, but less than 7%
e) more than 8%

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Answer c) more than 3%, but less than 5%

10. On the balance of payments statement, merchandise imports are classified in the
a) current account
b) capital account
c) unilateral transfer account
d) official settlements account
e) None of the above

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Answer a) current account

11. Which of the following was the first mutual FUND listed on the newly launched mutual FUND platform on National Stock Exchange (NSE)?
a) UTI Mutual Fund
b) SBI Mutual Fund
c) LIC Mutual Fund
d) Bank of Baroda Mutual Fund
e) None of the Above

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Answer a) UTI Mutual Fund

12. The RBI stipulates a healthy mix of CASA in the business figures of banks. What does it denote?
a) Customer Analysis and Savings Pattern
b) Cost Appreciation and Selling Analysis
c) Current Account and Savings Account
d) Credit and Savings Aggregate
e) None of the above

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Answer c) Current Account and Savings Account

13. Which of the following is true about cooperative banks?
a) They are established under the Cooperative Societies Act
b) They are profit as their main motive
c) They all nare scheduled banks
d) They all of the above
e) None of the above

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Answer a) They are established under the Cooperative Societies Act

14. Which of the following acts govern the RBI functions?
a) RBI Act 1934
b) Banking Regulation Act 1949
c) Companies Act 1956
d) Foreign Exchange Regulation Act 1973
e) Foreign Exchange Management Act 1999

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Answer a) RBI Act 1934

15. Quantitative instrument of the RBI can be
a) Bank Rate Policy
b) Cash Reserve Ratio
c) Statutory Liquidity Ratio
d) All of these
e) None of these

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Answer d) All of these

16. Which of the following types of accounts are known as ‘Demat Accounts’?
a) Accounts which are zero balance accounts
b) Accounts which are opened to facilitate repayment of a loan taken from the bank. No other business can be conducted from there.
c) Accounts in which shares of various companies are traded in electronic form.
d) Accounts which are operated through internet banking facility.
e) None of the above

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Answer c) Accounts in which shares of various companies are TRADED in electronic form.

17. A bank normally does not have to deal with an issue related to
a) Payments and Settlements System
b) Contractual rights of creditors
c) intellectual property rights
d) cases of insolvency
e) None of the above

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Answer c) intellectual property rights

18. Your bank’s customer XYZ enjoys a CC limit of Rs.100000. The CC account shows a credit balance of Rs.10205. The relationship between your bank and XYZ Limited is
a) debtor/creditor
b) creditor/debtor
c) bailor/bailee
d) bailee/bailor
e) None of these

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Answer a) debtor/creditor

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