1. The banker has a statutory obligation to.........
Correct : A. Honour customers' cheque
2. The banker has a lien on........
Correct : A. Bonds given for collection
3. Neither possession nor ownership is transferred in....
Correct : C. Hypothecation
4. A mortgage can neither sue for foreclosure nor for sale of the property in...............
Correct : B. Usufructuary mortgage
5. A banker's lien is...........
Correct : A. general lien
6. A pledge can be made in respect of....
Correct : A. Shares
7. A bank finances an agriculturist to buy a tractor. The loan is secured by:
Correct : A. Hypothecation of the tractor
8. Bank A grants an overdraft to ABC Ltd against book debts. This is secured by:
Correct : D. assignment
9. Mortgage is defined under
Correct : C. transfer of property act
10. The mortgager transfers the mortgaged property to the mortgagee on the condition that it will be
retransferred upon payment of mortgaged money. This is
Correct : B. English mortgage
11. In the case of a joint stock co the registration of a charge is not required with registrar of companies for
Correct : A. Pledge of moveable property
12. RAM a transporter has been granted a loan for purchase of a truck. You will create which of the
following charge.
Correct : D. hypothecation
13. Hypothecation is a mode of security provided in
Correct : D. SARFAESI Act 2002
14. Under Hypothecation charge
Correct : C. The ownership and possession are with borrower
15. Stamp duty on which of the following documents does not vary from state to state.
Correct : D. bills of exchange
16. Mortgage borrowers must pay 20 percent of the home’s purchase price at closing as a down payment.
Correct : B. False
17. As a fixed-rate mortgage nears maturity, the portion of the monthly mortgage payment that is applied
to principal _________ while the amount that is applied to interest ___________.
Correct : B. Increases; decreases
18. . _________ paid at closing can reduce the interest rate used to determine the monthly payments on a
mortgage.
Correct : A. Discount points
19. What type of mortgages are used to finance the acquisition of apartment complexes, townhouses, and
condominiums?
Correct : D. Multifamily dwelling mortgages
20. As part of a mortgage agreement, a financial institution places a lien on the property until the loan is
paid in full.
Correct : A. True
21. Benefits of securitization include all of the following EXCEPT:
Correct : C. Greater reserve requirements
22. FHA mortgages and VA mortgages are conventional mortgages.
Correct : B. False
23. When a financial institution sells a mortgage with recourse, the financial institution retains a credit risk
liability in the event the buyer returns the mortgage.
Correct : A. True
24. Where a person pledges goods in which he has only a limited interest, the pledge is:
Correct : C. Valid to the extent of that interest
25. What is pledge:
Correct : A. The bailment of goods as security for payment of a debt or performance of a promise
26. When banker received deposits from the customer, then the banker becomes -------------- of the
customer.
Correct : A. Debtor
27. If cheque is crossed an account payee, this is direction of, ------------- to---------------.
Correct : D. Drawer, collecting bank
28. In case of collection of cheques and bills, the relationship of the banker with the customer is that of
Correct : A. Bank as agent and customer trustee
29. In case collection of a bank draft the collecting banker is protected against conversion under _____
section of Negotiable Instruments Act 1881.
Correct : B. 131 A
30. A cheque has been deposited by a customer with his bank for collection. The bank allows overdraft
against the security thereof. The bank becomes
Correct : C. Holder for value
31. Who can file a criminal case against the drawer of a dishonored cheque?
Correct : C. Both of the above
32. The best answer for returning a cheque for want of funds in the account is.........
Correct : D. Not sufficient funds
33. Bankers undertake the duty of collection of cheques and bills because......
Correct : C. They want to do it as a service
34. A collecting banker is given protection only when he collects
Correct : A. A crossed cheque
35. Collecting a cheque payable to the firm to the private account of a partner without enquiry
constitutes.......
Correct : C. Negligence connected with immediate collection of a cheque
36. A Collecting banker is given the statutory protection only when he acts as...
Correct : D. An agent
37. To get protection under Sec 131 of NI Act collecting banker should collect the cheque
Correct : C. 1 or 2
38. The endorsement on the cheque is fictitious and the collecting banker failed to check it the cheque is
paid by the paying banker
Correct : B. paying banker is protected
39. In case of wrongful dishonour of a cheque by the banker
Correct : C. the remedy for holder is against drawer
40. When the cheque is dishonored, the collecting banker is not bound to give notice of the same to his
customer within a reasonable time.
Correct : B. False
41. The collecting banker is bound to show due care and carefulness in the collection of cheques presented
to him.
Correct : A. True
42. In case a collecting banker has realized the cheque, he should pay the interest to the customer as per
his (customer’s) direction.
Correct : A. True
43. Holder is an individual who has lawfully received possession of a Commercial Paper, such as a cheque
and who is entitled for payment on such instrument.
Correct : A. True
44. There is legal obligation for a banker to collect the bills of exchange for its customer.
Correct : B. False
45. Which one of the following is the ratio of the loan principal to the appraised value?
Correct : B. Loan-to-Value Ratio
46. What is the product of the share price and number of the company's outstanding ordinary shares?
Correct : A. Market Capitalization
47. Which one of the following pools money from various investors in order to purchase securities?
Correct : C. Mutual fund
48. Which one of the following is the rate at which the RBI lends money to commercial banks in the event
of any shortfall of funds?
Correct : D. Repo Rate
49. When financial institutions and banks undertake activities related to banking like investment, issue of
debit and credit card etc then it is known as _____________________.
Correct : B. Universal banking
50. Collateral securities can be _____?
Correct : D. All of the above
51. The Short-Term Crop Loan given to Farmers are generally for a period of _____?
Correct : D. 12 months
52. Which of the following is a borrowing facility/loan advance _____?
Correct : A. Term finance
53. Pledge of advance is made against ______?
Correct : B. Commodities
54. Which of the following are covered under pledge?
Correct : D. All the above
55. What is the minimum period of medium and long-term loans?
Correct : B. 18 months
56. The most risky charge from a banker’s point of view is ______?
Correct : B. Hypothecation
57. An equitable mortgage can be created in respect of _______?
Correct : B. Real estate
58. A charge where there is neither the transfer of ownership nor the possession is called ______?
Correct : A. Hypothecation
59. The liability of the mortgager is gradually reduced in the case of _______?
Correct : C. Usufructuary mortgage
60. These days Banks are offering Loans against Property? Under which business segment, this activity
may be categorized?
Correct : D. Portfolio Management services
61. What do we mean by “ECB” in financial terms?
Correct : D. External Commercial Borrowings
62. Which of the following is a document of the title to the goods?
Correct : C. Bill of lading
63. What is an impersonal Collateral security?
Correct : B. Collateral security given by third party.
64. Unstamped document cannot be rectified in case of………..
Correct : D. none of the above
65. Delay, unpredictability and cost are considered as three main enemies of efficient administration of
justice.
Correct : A. yes
66. The litigants are always interested in substantive justice and not procedural justice.
Correct : A. true
67. Indian ADR system is based on the Common law system
Correct : B. True
68. ADR techniques include arbitration, conciliation, mediation and negotiation.
Correct : C. none
69. Arbitration can be ad-hoc, contractual, institutional or statutory.
Correct : A. yes
70. In a contractual arbitration the jurisdiction of courts can be completely ousted under 1996 Act.
Correct : C. yes, it can be partially ousted
71. Conciliation is a private, informal process in which a neutral third person helps disputing parties to
reach an agreement.
Correct : A. True
72. Conciliator would independently investigate into the dispute and draft his report indicating the method of settlement of disputes.
Correct : A. True
73. Mediation can be termed as assisted negotiation.
Correct : C. yes and the mediator plays the role of a facilitator in attaining cooperation between the parties to the dispute
74. Bargaining is a common feature of the negotiation process.
Correct : D. All are true
75. Lok Adalats have been given the powers of a civil court under the Code Civil Procedure.
Correct : C. yes, but with limited jurisdiction
76. The award made by the Lok Adalat is deemed to be a decree of the civil court like arbitration Award.
Correct : B. Yes
77. Section 75 of the Arbitration and Conciliation Act 1996 specifically provides for the confidentiality of all matters relating to the proceedings.
Correct : B. true
78. “Court procedure is justice-oriented, whereas ADR’s merit also lies in the fact that the process is participatory and solution-oriented”.
Correct : A. Yes
79. In Shakuntla Sawhney v. Kaushalaya Sawhney,[(1979) 3 SCR 232]the Supreme Court has observed that “Finest hour of justice is the hour of compromise when parties after burying the hatchet, re-unite by a reasonable and just compromise” Whether this principle has been reflected in the ADR procedures mentioned in the Arbitration and Conciliation Act 1996?
Correct : A. Yes
80. Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act
popularly known as SARFAESI Act was enacted in which of the following year:
Correct : A. 21st Day of June 2002
81. . Reserve Bank has the power under __________ of the Securitisation Act to cancel the Certificate of
Registration issued by it to any ARC:
Correct : C. Section 4
82. The Three Stages of Money Laundering are:
Correct : C. Layering, Placement, Integration
83. Who shall be responsible for furnishing information on modification and satisfaction of security interest:
Correct : A. Asset Reconstruction Company or secured creditor
84. Before which for a can an asset reconstruction company file an application for enforcement of its
security interest:
Correct : A. Debt Recovery Tribunal
85. Which of the following is the usage of shell companies?
Correct : C. Both (i) and (ii)
86. What is the stamp duty to be paid in respect of any document executed by any banker financial
institution for issuing a debenture or bond?
Correct : C. It shall be exempted from stamp duty.
87. An Example of smurfing:
Correct : A. Wiring money to the foreign country
88. Which of the following is not a security interest:
Correct : C. A lien on any goods, money or security given by or under the Indian Contracts Act, 1872 or the Sale of Goods Act, 1930 or any other law for the time being in force
89. An actuary is expected to:
Correct : B. Make a reasonable forecast of the future liabilities of policies