Quiznetik

Banking Services Management (BSM) | Set 1

1. Who regulates the money circulation in India?

Correct : B. reserve bank of india

2. Which of the following is not an organized sector in India?

Correct : D. chits and money lenders

3. Who will settle the grievances of customers of banks?

Correct : D. ombuds men

4. Who introduced the Banking Ombudsmen Scheme?

Correct : A. rbi

5. Which was the firth Bank corporated by the Indians? (1881)

Correct : C. avadh commercial bank(oudh)

6. When was Reserve Bank of India established?

Correct : C. 1935

7. When was Reserve Bank of India Nationalised?

Correct : C. 1949

8. When was Indian Banking Act come into force?

Correct : B. 1949

9. Imperial Banks were amalgamated and changed as _________

Correct : B. state bank of india

10. How many banks were first nationalised?

Correct : C. 14

11. When was the second phase of nationalisation done?

Correct : D. 15th april, 1980

12. Who will act as the banker to the Government of India?

Correct : B. reserve bank of india

13. Where is the Head Quarter of Reserve Bank of India?

Correct : A. mumbai

14. When was Lead Bank Scheme introduced?

Correct : C. 1969

15. The first development financial institution in India that has got merged with a bank is

Correct : B. icici

16. ……….prepared a framework through a consultative process to secure international convergence of supervisory regulations governing the capital adequacy of international banks.

Correct : A. basel committee on banking supervision

17. Gilt edged securities refer to

Correct : A. government securities

18. Indian Banks Association (IBA) has a common net working system for sharing the ATM facilities in Mumbai, which is known as

Correct : B. shared payment network system

19. World Bank stands for

Correct : C. ib

20. Where is the headquarters of SWIFT?

Correct : B. brussels

21. NABARD is a

Correct : D. none of the above

22. Which of the following statement is correct.

Correct : C. foreign exchange markets are dynamic a

23. Who is the Governor of RBI?

Correct : C. raghuram rajan

24. Section 14 of Banking Regulation Act, 1949

Correct : A. prohibits a banking company from creating a charge upon any unpaid capital of the company.

25. A Bank is under a statutory obligations to honour its customer's cheques vide

Correct : C. section 31 of the negotiable instruments act, 1881.

26. The Reserve Bank of India was originally constituted as a share holder's Bank with a share capital of --

Correct : D. rs. 5 crores

27. Infrastructure Development Finance Company was established in -

Correct : B. 1997

28. Nationalised Banks have been permitted to offer their equity shares to the public to the extent of 49% of their capital as per amendments made in 1994 in

Correct : B. banking companies (acquisition & transfer of undertakings) acts 1970/1980

29. EXIM Bank is owned by -

Correct : C. fully own

30. Contribution towards Rural Infrastructure Development Fund is made by

Correct : C. only those commercial banks who fail to achieve the stipulat

31. Credit rationing is a…………method of credit control.

Correct : B. qualitative credit control

32. The development programme began in our country with the launch of

Correct : A. community development programme

33. "Sans recourse" means ____.

Correct : D. without liability to me

34. When a drawer draws a cheque without keeping sufficient balance and if the cheque is bounced for insufficient funds. The drawer is punishable with imprisonment which may extend to and or a fine.

Correct : B. one year

35. The highest credit risk rating that can be awarded to any company by CRISIL is…..

Correct : B. aaa

36. Bankers, in general, are hesitant to finance HUF because .

Correct : C. the liability of the firm to the banker is susceptible to change with the birth of male chi

37. Factoring means .

Correct : C. purchasing and/or administering the receivables of a concern.

38. Under law of limitation , the liability of a guarantor is .

Correct : C. 3 years from the date when the dema

39. The first bank to be established in India was ________ ,

Correct : B. bank of hindustan

40. Which type of securities are held by Reserve Bank of India before issuance of currency notes ?

Correct : D. all of these

41. Quasi Negotiable Instrument is accepted like Negotiable Instrument because of

Correct : B. the customs and practice

42. Loan documents executed out of India must be presented for registration within……….of its arrival in India.

Correct : B. four months

43. Usance bills or promissory notes drawn out of India are required to be stamped by

Correct : A. first holder in india

44. Command Area Development Programme relates to __________

Correct : D. irrigation development

45. The minimum percentage of Priority Sector advances to be maintained by foreign banks in India is .

Correct : C. 32%

46. Margin money scheme of KVIC is applicable to the project of individuals and entrepreneurs ______________ .

Correct : A. where the total project cost does not exceed rs. 10 lakh

47. "Customer" is defined in -

Correct : D. nowhere it is defined

48. Prospectus is issued by a Private Limited Company when it issues

Correct : D. shares

49. A Public Limited Company should have minimum membership of -

Correct : C. 7

50. Introduction of rating methodology for banks was introduced by RBI on the lines of-

Correct : A. camel

51. In terms of the N.I. Act, finder of a lost cheque is :

Correct : D. holder in due course, in either case

52. The charge created on a security of National Savings Certificate is -

Correct : A. pledge

53. Internet is the cheapest of all banking channels and helps banks to gain substantially in terms of………….cost.

Correct : D. transaction

54. Drawing power in an account means

Correct : D. stock

55. Lien becomes time-barred three years after

Correct : D. lien has no limitation period

56. Negative lien means -

Correct : A. a declaration by a company not to encumber assets of the company without previous consent of banker

57. Letter of Probate means-

Correct : D. by the court containing the name of the person who has to administer the property of a deceased person

58. Non-registration of a firm will affect in the following manner-

Correct : C. no partner shall be in a position to institute a suit against any other partner of the firm

59. Working Capital Gap means-

Correct : D. total current assets minus current liabilities (other than bank

60. …………… constitute the largest source of funds for the banks

Correct : C. deposit

61. Banker's lien is a type of security.

Correct : C. impli

62. Section 85(1) of the Negotiable Instrument Act 1881 provides protection to the paying banker in respect of

Correct : A. forged endorsement

63. Collection of cheques for customer is a………….function of bank.

Correct : A. agency function

64. In periods of boom, which leads to economic instability, Reserve Bank resorts to

Correct : A. sale in the market of first class securities in its possession to reduce the supply of money as a measure of open market operations

65. Under Section 17 of the Banking Regulation Act 1949, every banking company incorporated in India is required to transfer each year to a reserve fund a sum equivalent to not less than

Correct : C. 25 per cent of profit before dividends;

66. After a customer has closed the account______

Correct : B. the banker is still bound by his duty of secrecy

67. ………….is a new scheme of deposit mobilization have been evolved by the Indian commercial banks.

Correct : C. insurance link

68. A mandate may continue to be operative even in the case of—

Correct : C. insolvency of the agent

69. ………….is a document issued by the bank acknowledge the receipt of a fixed sum of money on deposit.

Correct : C. fix

70. A bill should be presented for acceptance in case of insolvency of a drawee to

Correct : A. official receiver

71. An order instrument can be made payable to the bearer by making

Correct : C. general endorsement

72. The endorser will not liable to the holder on dishonor of a negotiable instrument if he makes

Correct : A. sans-recourse endorsement

73. Negotiation-back implies

Correct : A. return of the instrument back of he person who indorsed it earlier

74. Once a bearer instrument always a bearer instrument is true in case of

Correct : A. a cheque only

75. ……are treated as negotiable instrument by usage or custom of trade.

Correct : D. hundies

76. The relationship between a banker and its customer is basically that of

Correct : A. a debtor and a creditor

77. The banker's answer in case of dishonor of a cheque on a account of insufficiency of funds is generally

Correct : A. refer to drawer (rd)

78. The title of the endorsee will not be better than of the endorser in case a cheque is crossed containing the words

Correct : B. not negotiable

79. Travelers cheques are issue by

Correct : B. commercial banks

80. When a banker accepts the securities for safe custody, the relationship between a banker and a customer is that of

Correct : B. trustee and beneficiary

81. A right of appropriation first lies with the

Correct : A. debtor

82. The period of limitation in case of deposits with bankers from the date on which

Correct : C. date of dema

83. Pay order is issued by the banks for

Correct : A. local payments

84. Certificate of Deposit cannot be issued by

Correct : B. regional rural banks

85. The recurring deposit account combine the characteristics of ……….and fixed deposit account.

Correct : A. savings account

86. The drawee banker of a demand draft has received intimation of the loss of the draft from the purchaser. The banker should

Correct : B. exercise caution

87. …………..is always drawn on a specified banker.

Correct : D. cheque

88. A customer requests for issue of a bearer demand draft. The banker should

Correct : C. refuse to issue the draft

89. A and B have jointly hired a locker under "Either or Survivor" caluse. A dies. The bank should

Correct : A. permit b to operate the locker

90. Pay order is issued by the banks for

Correct : A. local payments

91. When a banker collects a cheque for which he has already given cash,his position is that of a…………

Correct : D. holder for value

92. Merchant banking includes

Correct : A. managing issue of shares

93. In case of ………….days of grace are allowed

Correct : B. bill of exchange

94. A minor can open and operate an account in his own name if he has atleast attained the age of

Correct : A. 12 years

95. .The person appointed to operate the account after his death by the deceased himself before his I death is called

Correct : B. administrator

96. A joint account can be opened by the banker on receipt of application signed by

Correct : B. all joint account holders

97. A minor cannot

Correct : A. accept a bill

98. .The interest and principle amount of a loan not repaid by a customer in a bank ,the bank consider such loan as……..

Correct : C. npa

99. Banks create money by

Correct : D. all or some of the above.

100. The Apex Co-operative Bank is known as

Correct : B. state co-operative bank