Banking Awareness Question

These Question are Taken from the Book of Banking By "N.T.Somasheker"

SET- I

1. A banker should not grant loans and advances against                             (c)

(a) Unquoted shares (b) Partly paid-up shares

(c) Its own shares (d) Third party’s shares

2. In the case of a life policy, the banker should see                                        (d)

(a) The existence of insurable interest

(b) The surrender value

(c) The admission of age

(d) All of the above

3. The most risky document of title to goods from the banker’s point of

view is                                                                                                                                  (c)

(a) Delivery order (b) Bill of lading

(c) Warehouse keeper’s certificate (d) Railway receipt

4. A legal title over shares is created                                                                       (d)

(a) By simply depositing the shares

(b) By depositing the shares along with a blank transfer

(c) By depositing shares along with a memorandum

(d) By executing a transfer deed

5. The rules framed in the Clayton’s case have been incorporated in       (c)

(a) The Banking Regulation Act

(b) The Reserve Bank of India Act

(c) The Indian Contract Act

(d) The Negotiable Instruments Act

6. The limitation period in case of a bank deposit begins from                   (b)

(a) The date on which deposit was made

(b) The date on which the demand for payment was made

 (c) The date on which first withdrawal is made

(d) None of the above

7. When a debtor owes several debts to a banker and makes a payment, the

right of appropriation lies with                                                                                (b)

(a) The banker              (b) The debtor

(c) The court                 (d) None of the above

8. A Garnishee order is served on A and B jointly. They maintain a joint account as well as individuals accounts with the bank. The order shall attach                                                                                                                                    (c)

(a) Only the joint account of A and B

(b) Only the individual accounts of A and B

(c) The joint as well as individual accounts of A and B

(d) None of the above

9. In terms of Section 31 of the Reserve Bank of India Act, 1934 a demand draft payable to bearer may be issued only by                                                             (c)

(a) Nationalised Banks          (b) Scheduled Commercial Banks

(c) Reserve Bank of India     (d) Foreign Banks

10. The payment of a lost demand draft is made to the                                   (a)

(a) Purchaser       (b) Payee

(c) Nominee         (d) None of the above

11. In case of original demand draft is presented after the duplicate has already been paid, the bank will                                                                                 (a)

(a) Pay the original demand draft as well and recover the amount from the purchaser on the strength of the indemnity bond

(b) Return with remarks “Draft reported lost, duplicate already paid will pay on collecting bank’s guarantee. In case the original draft is again presented, it should be honoured.”

(c) Return with the remarks payment stopped by the payee

(d) None of the above

12. Unsigned demand draft is presented for payment, the drawee branch will                                                                                                                                               (b)

(a) Honour it

(b) Dishonour it since it does not have a mandate of the drawer bank to pay it.

(c) Honour it after seeking confirmation from the collecting bank

(d) Honour it if it is for small amount

13. Traveller’s cheques are valid for                                                                            (d)

(a) Three months    (b) Six months

(c) One year              (d) No limit-are valid till encashed

14. Do the banks issue traveller’s cheques to non-customers also?               (a)

(a) Yes

(b) No

(c) No - only people of repute

(d) No - only to people having annual income above Rs. 60,000

15. Are the traveller’s cheques subject to stamp duty in India?                      (b)

(a) Yes

(b) No

(c) Yes, all traveller’s cheques above the value of Rs. 1,000

(d) Yes, all the traveller’s cheques above the value of Rs. 5,000

16. Minimum balance required to be maintained for cheque book facility (d)

(a) Rs. 100                 (b) Rs. 200

(c) Rs. 500                 (d) Rs. 1000

17. The committee on Banking Sector Reforms under the chairmanship of Sri. M. Narasimham was appointed in                                                                                (c)

(a) 1991                      (b) 1995

(c) 1998                      (d) 1999

18. The Government of India passed the “Recovery of Debts due to Banks and Financial Institutions Act” in                                                                                        (a)

(a) 1993                      (b) 1992

(c) 1994                      (d) 1990

19. Where the Apellate Tribunal for recovery of debts due to banks and financial institutions is set up?                                                                                     (c)

(a) Chennai               (b) Bangalore

(c) Mumbai               (d) Kolkata

20. Documentations is                                                                                                       (a)

(a) Proper execution of documents         (b) Stamping of document   

(c) Cancellation of stamps                         (d) None of the above