R4RIN – MCQs, Mock Tests | BANK Bank Mcq Question Set 9

According to the Socio Economic and Caste Census (SECC) which among the following states in India has highest per cent of Urban BPL households?

1. Bihar
2. Sikkim
3. Manipur
4. Jharkhand

✅ Correct Answer: 3

Payment of a cheque may be countermanded by the ___

1. Payee
2. Drawer
3. Drawee
4. True owner

✅ Correct Answer: 2

Union Government has decided to set up a Bank Board Bureau (BBB) to monitor key performance indicators of two dozen public sector banks (PSBs). BBB will start functioning from ___.

1. 31st December 2015
2. 1st January 2016
3. 31st March 2016
4. 1st April 2016

✅ Correct Answer: 4

A fixed deposit receipt is kept with the bank for its safety, is known as _____________

1. Locker
2. Safe custody
3. Safe deposit
4. Valid safe deposit

✅ Correct Answer: 2

Simply click a card launched by SBI special for ____.

1. Cash Transfer
2. Pay Utility Bills
3. Online Shopping
4. For Home Loans

✅ Correct Answer: 3

Banking Companies are prohibited under Sec 8 of banking Regulation Act to sell and purchase securities. Yet Banks are selling securities (of the customer) which are under pledge as permitted by:

1. SARFAESI Act
2. Indian Contract Act
3. Banking Regulation Act
4. Government Notification

✅ Correct Answer: 3

Hypothecation is:

1. A legal transaction whereby goods may be made available as security for a debt
2. Transfer of ownership by the borrower to the lender
3. Atransaction of conditional sale
4. None of the above

✅ Correct Answer: 1

Mortgage is a:

1. Facility on immovable property
2. Security on movable property for a loan
3. Security on immovable property for a loan
4. Security on loan sanctioned against fixed deposits

✅ Correct Answer: 3

What is the minimum amount to be invested under Sukanya Samriddhi Scheme?

1. Rs. 500
2. Rs. 1000
3. Rs. 1500
4. No ceiling

✅ Correct Answer: 2

The Main activity of the Financial Intelligence Unit India (FIUIND) is to control:

1. Terrorism
2. Tax Evasion
3. Money Laundering
4. Avoiding frauds in ATMs

✅ Correct Answer: 3

The SARFAESI Act 2002 empowers Banks / Financial Institutions to recover their non-performing assets (bad loans) without the intervention of the Court. In "SARFAESI" second "S" stands for ____.

1. Share�
2. Saving
3. Security�
4. Securitisation

✅ Correct Answer: 3

The main function of an Asset Management Company is to:

1. act on behalf of SEBI
2. hold the securities of various schemes
3. hold its property for the benefit of the unit holders
4. manage the funds by making investments in various types of securities

✅ Correct Answer: 4

The Banking Codes and Standards Board of India was registered on 18th February, 2006 under which of the following RBI Act?

1. Banking Regulation Act
2. Cooperative Societies Act
3. The Societies Registration Act, 1860
4. None of these

✅ Correct Answer: 3

As per the Banking Ombudsman Scheme, any person can file a complaint before the Banking Ombudsman, if the satisfied reply is not received from the bank within a period of ____.

1. one month
2. two months
3. three months
4. six months

✅ Correct Answer: 1

CIBIL as a credit bureau caters to:

1. Consumer segments
2. Commercial segments
3. Nationalized Banks only
4. Both commercial and consumer segments

✅ Correct Answer: 4

Infusion of liquidity, by RBI, is done through _____ from / to banks under a _____ transaction.

1. lending, repo
2. borrowing, repo
3. lending, reverse repo
4. borrowing, reverse repo

✅ Correct Answer: 1

�Some banks are financing big projects like construction of roads, bridges etc. Financing such projects means banks are helping exactly in:

1. Financial Inclusion
2. Project Management
3. Infrastructural Development
4. Developing core sector Industry

✅ Correct Answer: 3

A rate of exchange established between any two currencies on the basis of the respective quotation of each currency in terms of a third currency is known as:

1. Wash rate
2. Cross rate
3. Merchant rate
4. Composite rate

✅ Correct Answer: 2

Crossing denotes

1. that the cheque will be paid through clearing only
2. that the cheque cannot be transferred by the payee named therein
3. a direction to the paying bank to make payment of the cheque through a bank
4. that the cheque will not be paid across the counter but will be credited to the account of the holder

✅ Correct Answer: 3

Who is primarily liable on a cheque?

1. Payee
2. Drawer
3. Drawee banker
4. Collecting banker

✅ Correct Answer: 2

In the case of a demand draft

1. Drawer, drawee and payee are different
2. Drawer, drawee and payee are the same
3. Drawer and payee are the same but the drawee is different
4. Drawer and drawee are the same but he payee is different

✅ Correct Answer: 4

Demand draft is a

1. negotiable instrument
2. not negotiable instrument
3. not transferable instrument
4. quasi-negotiable instrument

✅ Correct Answer: 1

The Kisan Credit Card Scheme is being implemented by all -

1. Regional Rural Banks
2. Public Sector Commercial Banks
3. State Cooperative Banks/DCCBs/PACS nad Scheduled Primary Cooperative Banks
4. All of the above

✅ Correct Answer: 4

The following are main objectives of the SEBI :-

1. to regulate the security market
2. to protect interest of investors
3. to promote the development of security market
4. all of the above

✅ Correct Answer: 4

Capital market can be divided into:-

1. gilt edged market
2. industrial securities market
3. both (a) and (b)
4. personal securities market

✅ Correct Answer: 3

Which of the following is correct statement in respect of debit cards :-

1. This facility is not extended to cash credit/loan account holders
2. Debit card facility is provided to those having savings bank account/current account accounts of individuals, firms and cooperates
3. Both (a) and (b)
4. Debit card is issued to all the persons who visit the branch

✅ Correct Answer: 3

What are the facilities available to the customers through ATM :-

1. Cash deposit
2. Balance enquiry
3. Cash withdrawal subject to a predetermined limit per day
4. All of the above

✅ Correct Answer: 4

By crossing we mean :-

1. two horizontal lines on a cheque
2. one straight line across the cheque
3. two lines across the cheque making X
4. two transverse parallel lines on a cheque

✅ Correct Answer: 4

Section 9 of the Banking Regulation Act prohibits the banking Companies from holding any immovable property except for its own use for a period of not more property. The RBI may extend this period for

1. 1 year
2. 3 years
3. 5 years
4. 7 years

✅ Correct Answer: 3

Which of the following stock exchange is derecognized by SEBI on 19.11.2014 on the allegations of serious irregularities in its functioning?

1. Delhi Stock Exchange
2. Bombay Stock Exchange
3. Calcutta Stock Exchange
4. Bangalore Stock Exchange

✅ Correct Answer: 1

Which of the following is not a function of General Insurance?

1. Fire Insurance
2. Crop Insurance
3. Cattle Insurance
4. Medical Insurance

✅ Correct Answer: 4

Minimum cash reserves fixed by law constitute ___

1. A percentage of capital & reserves of the bank
2. A percentage of aggregate deposits of the bank
3. A percentage of aggregate loans and advances of the bank
4. All of the above

✅ Correct Answer: 2

Which of the following organizations/ agencies has sought an emergency fund of Rs.1000 crore from banks to tackle acute liquidity crisis, which is coming in the way to give loans to micro borrowers?

1. RBI
2. NABARD
3. Micro Finance Institutions
4. Regional Rural & Cooperative Banks

✅ Correct Answer: 3

PAN number is required for all transactions above -

1. Rs. 25,000
2. Rs. 1 lac
3. Rs. 2.5 lac
4. Rs. 4 lac

✅ Correct Answer: 2

�Which of the following types of ATMs eliminates the need for PIN entry and authenticated customer transactions by thumb impressions?

1. Off-site ATMs
2. On-site ATMs
3. Biometric ATMs
4. White Label ATMs

✅ Correct Answer: 3

Which agency is exclusively concerned with the credit needs of all types of agricultural and rural development?

1. NABARD
2. State Bank of India
3. Reserve Bank of India
4. Industrial Development Bank of India

✅ Correct Answer: 1

What is the name of technology given to the recently introduced computerised clearance of cheques:

1. MICR
2. Special clearning
3. Speedline System
4. Automatic clearance

✅ Correct Answer: 1

Ways and Means advances are provided by Reserve Bank of India only to:

1. State Government
2. Central Government
3. Both (a) and (b)
4. None of these

✅ Correct Answer: 3

Micro Credits are loans:

1. not exceeding Rs. 50,000 per borrower provided by banks
2. granted to distressed persons (other than farmers) to pre-pay their debt to non-institutional lenders against appropriate collateral or group security
3. both (a) and (b)
4. not exceeding Rs. 20,000 per borrower provided by banks

✅ Correct Answer: 3

Rural Infrastructure Development Fund (RIDF) is financed by:

1. NABARD
2. Reserve Bank of India
3. Ministry of Rural Development
4. Selected group of Public Sector Banks

✅ Correct Answer: 1

Which of the following is not included in CAMELS:

1. Liquidity and Systems
2. Employees Performance
3. Capital Adequacy and Asset Quality
4. Management and Earing Performance

✅ Correct Answer: 2

The term Merchant Banking denotes-

1. Telegraphic transfers effected by merchants
2. Catering to the needs of corporate customers raising finance
3. Services rendered by banks for merchants and traders capital requirements to merchants covered under DICGC Guarantee Scheme
4. All of the above

✅ Correct Answer: 2

RBI grants in-principle approval to Reliance Industries Limited to set up Payments Banks in the country. To which among the following RIL has partnered with for Payment Bank Licence?

1. SBI
2. LIC
3. Bajaj Capital
4. Apollo Munich

✅ Correct Answer: 1

National Electronic Funds Transfer (NEFT) is a nationwide payment system facilitating one-to-one funds transfer. What is the limit on the amount that could be transferred using NEFT?

1. Rs. 1 lakh
2. Rs. 2 lakh
3. Rs. 5 lakh
4. No limit

✅ Correct Answer: 4

What is the maximum value to be stored in a prepaid card?

1. Rs. 5,000
2. Rs. 10,000
3. Rs. 50,000
4. No limit

✅ Correct Answer: 3

Reserve Bank of India (RBI) has constituted a committee to prepare a 5 year action plan to spread the reach of financial services across country to unbanked population. The committee will be headed by

1. Urjit Patel
2. Anand Siha
3. Deepak Mohanty
4. KC Chakraborty

✅ Correct Answer: 3

Money lent for one day is called:

1. Term Money
2. Call money
3. Notice money
4. All of the above

✅ Correct Answer: 2

Treasury bills or T-bills, which are money market instruments, are short term debt instruments issued by ____.

1. IRDA
2. Government of India
3. Reserve Bank of India
4. Corporate & Financial Institutions

✅ Correct Answer: 2