1. Bank reconciliation statement is prepared with the help
of
of
(a) Bank pass book and cash column of cash book
(b) Bank pass book and bank column of cash book
(c) Bank pass book and petty cash book
(d) Bank pass only
(e) All of the above
2. EEFC account can be opened in the form of
(a) Current account, SB account and TDR
(b) Current account and SB account
(c) Current account only
(d) Current account and TDR
(e) None of these
3. Bank may prefer to invest in corporate bonds because
(a) A bond is more liquid asset
(b) A bond has an easy exit
(c) A bond can be sold at discount
(d) All of the above
(e) None of these
4. Which of following statements is/are true regarding a
Deferred Payment Guarantee (DPG)?
Deferred Payment Guarantee (DPG)?
(a) It is a type of guarantee where no cash payment is
involved.
involved.
(b) It is a type of guarantee which is given for the
purchase of immovable property.
purchase of immovable property.
(c) It is a type of guarantee where payment would have to be
made in instalments guaranteed.
made in instalments guaranteed.
(d) All of the above
(e) None of these
5. Truncation of cheques means
(a) The cheques in the paper form will be retained by the
collecting banker and he will submit only computerised image to the Clearing
House
collecting banker and he will submit only computerised image to the Clearing
House
(b) Cheques will be scanned and the electronic image, instead
of physical cheque, will be transmitted in the clearing cycle
of physical cheque, will be transmitted in the clearing cycle
(c) The entire clearing operations would be done only
through computers
through computers
(d) Debiting the drawer’s account through internet banking
(e) None of these
6. Not Negotiable’ crossing refers to
(a) The cheque cannot be negotiated
(b) The collecting bank should satisfy itself as to the
title of the holder before collecting the cheque
title of the holder before collecting the cheque
(c) The cheque cannot be collected as the protection under
Section 131 of the Negotiable Instruments Act, 1881 is not available in such
cases
Section 131 of the Negotiable Instruments Act, 1881 is not available in such
cases
(d) The transferee shall not have and shall not be capable
of giving a better title to the cheque than that of the transferor
of giving a better title to the cheque than that of the transferor
(e) None of these
7. The cheque in which the signature of the drawer of the
cheque is not genuine is called
cheque is not genuine is called
(a) Post-dated cheque
(b) Forged cheque
(e) Stale cheque
(d) All of the above
(e) None of these
8. Deposits under NRE/FCNR accounts are linked to:
(a) Base Rate
(b) SIBOR
(c) Bank Rate
(d) LIBOR
(e) MIBID
9. What stage of opening a bank account is the checking of
Politically Exposed Persons (PEP) carried out?
Politically Exposed Persons (PEP) carried out?
(a) At the first point of customer interaction
(b) At the Account Services Level
(c) At the Central Account Services Level
(d) One month after the account is opened
(e) At the time of the first transaction
10. India has different categories of commercial banks.
Which of the following is NOT one such category?
Which of the following is NOT one such category?
(a) Private Banks
(b) Commodity Banks
(c) Foreign Banks
(d) Co-operative Banks
(e) None of these
11. Bankers reduce lending risk by
(a) Ensuring that there will be no default on account of
lack of liquidity and lack of willingness to pay on the part of the borrower
lack of liquidity and lack of willingness to pay on the part of the borrower
(b) Ensuring that there will be no problem of liquidity with
the borrower
the borrower
(c) Obtaining adequate security
(d) All of the above
(e) None of these
12. Which among the following terms describe(s) ‘universal
banking’?
banking’?
(a) Branches of a bank in all geographical territories of
its country
its country
(b) A bank providing services in all geographical
territories of its country
territories of its country
(c) A bank providing combination of commercial banking and
investment banking
investment banking
(d) All of these
(e) None of these
13. Which of the following is/are the example(s) of product
diversification of bank?
diversification of bank?
(a) Credit card
(b) International credit card
(c) Debit card
(d) All of the above
(e) None of these
14. Which of the following categories of risk is/are taken
care of by RTGS?
care of by RTGS?
(a) Systemic Risk and Credit Risk
(b) Market Risk
(c) Settlement Risk and Systemic Risk
(d) Systemic Risk and Legal Risk
(e) None of these
15. If a Bank wants to introduce a new deposit scheme, the
same is now approved by
same is now approved by
(a) RBI
(b) Union Government
(c) The board of the bank
(d) Both (a) and (c)
(e) None of these
16. What is the full form of the term LIBOR as used in
financial banking sector?
financial banking sector?
(a) London Inter-Bank Offered Rate
(b) Liberal International Bank Official Ratio
(c) London India Bureau of Regulations
(d) Local India Bank Offered Rate
(e) None of these
17. Which of the following loan products are ‘teaser loans’
offered by banks?
offered by banks?
(a) Education loans
(b) Commercial loans
(c) Gold loans
(d) Retail trade loans
(e) Home loans
18. Non-Banking Financial Company (NBFC) does not have which
of the following functions?
of the following functions?
(a) Demand deposits
(b) Hiring and purchasing assets
(c) Equipment leasing
(d) Housing finance and investments in financial securities
(e) None of these
19. Which of the following sources are domestic funds raised
by companies?
by companies?
1. IPO
2. Open Market Operations
3. Commercial Papers
(a) Only 1 and 2
(b) Only 1
(c) Only 3
(d) Only 1 and 3
(e) All 1, 2 and 3
20. “Subprime Crisis” relates to
(a) Loans sanctioned to people who are not credit worthy
(b) Loans to weaker sections of the society
(c) Loans which are given in a recession
(d) Loans which are given without security
(e) Situation created by Wilful Defaulters
Important For: SBI Associates PO, SBI Associates Clerk, IBPS PO, IBPS Clerk, SBI Clerk, IBPS RRB, SBI PO, Other Bank PO and Clerk Exams
Note: Politically exposed persons are individuals who are or have been entrusted with prominent public functions in a foreign country, e.g., Heads of States or of Governments, senior politicians, senior government/judicial/military officers, senior executives of state-owned corporations, important political party officials, etc. Banks should gather sufficient information on any person/customer of this category intending to establish a relationship and check all the information available on the person in the public domain. Banks should verify the identify of the person and seek information about the sources of funds before accepting the PEP as a customer.
SOURCE: RBI
SOURCE: RBI
