CAIIB Mock Test I

MOCK TEST NO. 11. Global Bank is having a current account of M/s Ruchi Enterprises and a cheque of Rs.13500 ispresented through clearing, drawn in favour of Mr. Ramesh. Through an oversight the cheque isdishonoured wrongfully. When information about this dishonour is received by Mr. Ramesh, hesends a notice to the Global Bank for wrongful dishonour and claims damages. What would youdo with this notice?A. Bank should contact Mr. Ramesh for withdrawals of the notice for damages.B. Banks should contact the drawer and ask them to prevail upon the payee for withdrawal of thenotice. C. Bank can ignore this notice as the bank is not liable for such damages to the payee.D. Bank is liable to the drawer of the cheque and no one else.E. C and D above2. Corporate Bank had opened a saving bank account in the name of Mr. Subramanian andMurlidhar operated as `former or survivor’. The wife of Mr. Subramanian, who is nominee in theaccount comes to your branch and informs you that Mr. Subramanian has expired a month back.She also hands over the death certificate and requests for payment of the balance.A. the payment to the nominee will be made on proper identification as she is also having thedeath certificate.B. the payment will be made to the wife of deceased being legal heir of the former.C. the payment will not be made as with the death of the former, nomination has been cancelled.D. the payment will not be made as with the death of the former, survivor gets the authority tooperate the account and nominee comes in to picture only when none of the account holders is available E. any of the above 3. Bank Universal Limited receives a letter of credit of $ 20000 in favour of M/s Diamond ExportsPvt Ltd for exports to Germany. After verification of the genuineness of the credit, it is forwardedto the beneficiary through registered letter. Unfortunately, due to postal strike, by the time theletter of credit is delivered, its validity period expires. The exporter threatens legal action againstthe bank:A. bank is liable as bank has not handed over the credit in time to the beneficiaryB. postal department is liable for the loss and exporter has to take up the matter with the postal department C. bank is not liable as it does not assume any liability for the consequences arising out of delay intransit due to actions beyond its controlD. bank could persuade the opening bank to extend the validity date so that it is not put to lossE. any of the above4. Your branch has received a garnishee order in the name of your customer having saving bank account, with following transactions. Which among these is not subject matter of the garnishee order? A. an advice ready for despatch to another branch after debit to the account in payment of chequeB. an advice received for a cheque which was sent in collection, from another branch but notcredited to the account so farC. a cheque sent in clearing, the amount of which has been credited to the accountD. an amount of Rs.4000 relating to his wife’s account credited by mistake to the account of the customer E. all the above 5. Your branch opens a fixed deposit of Rs.50000 in the joint name of Mr. Anil Kumar and Mr. Suhail Kumar payable to either or survivor. They also nominate Miss Konica a minor daughter of Mr. Suhail Kumar with the provision that the payment can be claimed by Mrs. Suhail Kumar on behalf of the minor. Unfortunately, Mr. Suhail Kumar expired and subsequently Mr. Anil Kumar decides to change the nomination from Miss Konica to his own son. To this, Mrs. Suhail Kumar objects and asks your branch not to accept the instruction of Mr. Anil Kumar:A. bank has no option to ignore the request from Mr. Anil Kumar as, being survivor all rights relating to deposit are vested with him.B. bank can request Mr. Anil Kumar to decide the case in consultation with the existing nomineeC. bank has to accept the request from Mrs. Suhail Kumar, as she was the nominee coupled with interest D. bank will ask them to go to a court of law for decision and would implement the decision of the court E. B and C above6. Sh. Amrit Lal opens a term deposit account with Bank of Bengal and nominates his niece Ms Aruna Pande. Unfortunately, he expires in an accident but Ms Aruna Pande does not turn up despite a notice from the bank. Meantime, the legal heirs of Mr. Amrit Lal i.e. his two sons, visit the bank and request for making payment of the deposit. They also present a probate from court of law in which they are executors of the will of the deceased:A. the payment of the balance in the account will be made by the bank to Ms Aruna Pande onlyB. the payment of the balance would be made to the legal heirs in terms of probateC. the payment will be made in equal proportion to the legal heirs and the nomineeD. the bank will advise the legal heirs to bring specific order from the court in the light of nomination E. none of the above7. The liability of a minor coparcener in an HUF, for the acts of a Karta is:A. unlimitedB. nilC. to the extent of his share in the family propertyD. 50% of the loss as per his shareE. none of the above8. Mr. D Singh and Mr. K Singh are maintaining a current account in `former and survivor’ operations. Mr. K Singh (illiterate) issues a notice to the bank that the operations in the account should be stopped as there is some dispute between both of them. He also mentions that money in the account belongs to him but for operational convenience, the power to operate the account was given in favour of D Singh. What would you do with the cheque (signed by Mr. D Singh for Rs.670 favouring LIC of India) which has been presented through clearing, for payment from this account?A. the cheque is of small amount and shall be paid.B. the cheque is in favour of LIC of India and shall be paidC. cheque will be returned due to receipt of information about disputeD. cheque will be paid as K Singh’s instruction cannot be accepted so long as Mr. D Singh is aliveE. Any of the above9. An attachment order is received from Income Tax Officer for attaching funds lying in saving bank account of a person. In case, the bank fails to execute this order u/s 226 (3) of Income Tax Act: A. Branch Manager can be arrested.B. Branch Manager can be fined upto Rs. 5000 and sentenced upto one yearC. The banker shall be treated as a assessee in defaultD. Amount can be recovered from the bank, with penalty.E. C and D.10. Your branch is having a fixed deposit receipt of Rs.2 lac in the name of B, which is to mature after one year. B defaults in payment of loan. The right of setoff can be exercised for a loan against fixed deposit receipt:A. On maturityB. Even before maturityC. by giving 30 days notice, it can be exercisedD. any of the aboveE. None of the above.11. Your customer Mr. Veerapan issues a cheque payable to `self or order’, for Rs.55000. It is presented for payment by his peon Mr. Prakash. The cheque is endorsed by Mr. Veerapan in blank: A. cheque should not be paid as it is drawn in favour of selfB. cheque should not be paid as it is not drawn properlyC. cheque can be paid as it is properly drawn and endorsed in blank the payment of which can beobtained by the bearerD. cheques payable to self or order cannot be endorsed in blankE. none of the above12. The bank received garnishee order on saving bank account of Mr. Ram at 10.50 a.m., who deposits Rs. 5000 at 12.10 p.m. i.e. after service of the order:A. The order would apply to this amount also.B. The bank will refuse to accept the depositC. The order will not apply to this amountD. order will apply if court is informed about thisE. order will apply if court declares so.13. For the purpose of change in classification of an advances from standard to substandard category due to nonpayment of the loan, in case of crop based agriculture advances, which of the following is taken:A. two harvest seasonsB. two crop seasonsC. one crop seasonD. two crop seasons for short duration crop and one crop season for long duration cropE. two harvest seasons with maximum of one year.14. An exporter has received repayment of certain bills he had sent for collection and now wants to retain the same in foreign currency:A. he can open current account as EEFC accountB. he can open fixed deposit account as EEFC accountC. he can open saving bank account as EEFC accountD. he can open any of the above provided no interest is paidE. he can open only A and C15. Your branch maintains a current account of a partnership firm Sandhu & Company with Sandeep Sandhu and Kuldeep Sidhu as partners. Master Sandesh Sandhu (son of Mr. Sandeep Sandhu) is also admitted to the firm for benefits. In order to meet the financial requirements of the firm, Mr. Sandhu approaches the bank to sanction a demand loan against an FDR in the name of Master Sandesh u/g of Mr. Sandeep Sandhu:A. the loan is needed by the firm, in which the minor is a partner, hence can be sanctionedB. the loan is being raised by the father of the minor, due to which it can be sanctionedC. the loan can be sanctioned by keeping the FDR as securityD. the loan can be sanctioned if the father declares that it is for the benefit of the minor.E. Loan cannot be sanctioned16. Corporate Bank had granted a term loan of Rs.20 lac to M/s Kawal Society Limited which is not being repaid. The company is signing the balance confirmation letter despite the fact that it has been sent three times. Bank sends a legal notice for repayment of the loan which shows balance of Rs.27 lac now. Company confronts bank’s claim of Rs.27 lac by way of a letter stating that they have already paid Rs.5 lac due to which the amount should be Rs.15 lac only:A. the letter will serve the purpose of acknowledgement letter and extend the limitation period forthe entire amountB. the letter could extend the limitation period if it were duly stampedC. the letter is not an acknowledgement it is only a denial of bank’s claimD. any of the aboveE. none of the above17. Your branch has sanctioned working capital limit of Rs.9 lac to a partnership firm which submits stock report with stocks worth Rs.28 lac and sundry creditors of Rs.18 lac. The margin in the account is only 20% , the unit being an SSI unit. What is the maximum amount up to which the limit can be allowed to be availed by the party?A. Rs.6 lacB. Rs.8 lacC. Rs.9 lacD. Rs.4.60 lacE. none of the above18. Any old bank has to fulfill the following terms and conditions to be included in the second schedule of RBI Act 1934:A. It should be either a State Coop Bank or a Company defined under Indian Companies Act 1956 or an institution appointed by Central Govt. for undertaking banking operations.B. Jointly its paid up capital and reserves should not be less than 5 lac.C. It has to satisfy RBI that none of its functions are against depositor’s interest.D. All of the above.E. only C19. For small scale service business enterprises (SSSBE), the investment ceiling in fixed assets excluding land and building is:A. Rs.20 lacB. Rs.3 lacC. Rs.5 lacD. Rs.10 lacE. Rs.5 lac20. A person called Himmat Singh has been maintaining a saving bank account with your branch for the last 10 years where no nomination has been opted. Now he wants to make nomination in favour of his minor son.A. Bank will accept the request for nominationB. Bank will not accept the request for nomination in favour of minor since a long period hasalready passed when account was openedC. Nomination in favour of minor can be allowed only when a person is also appointed who canreceive the payment on behalf of minor if the account holder dies during his minorityD. Both (C) and (B) aboveE. none of the above21. Universal Bank has been maintaining a joint fixed deposit account in the name of Mr. Asha Singh and Mr. Manjeet Singh. After sudden death of the Mr. Asha Singh in a road accident, Mr. Manjeet Singh approaches the bank for payment of the fixed deposit before maturity, which the bank makes after obtaining an indemnity bond. The legal heirs dispute the payment and insist on 50% payment:A. the claim of legal heirs is not tenable as after death of one of the joint holders, the balancebecomes payable to the survivorB. the bank has made the payment to the survivor negligently, as in case of death of one of theholders, the deposit receipt cannot be cancelledC. the bank has acted negligently as the payment was required to be made to the legal heirs of thedeceased holder and the survivor jointlyD. a and cE. any of the above22. A business firm has been sanctioned working capital limits of Rs.6 lac at 25% margin by the bank and book debt limit of Rs.4 lac at 50% margin. What will be total margin requirement to avail the limit fully:A. 4 lacB. 5 lacC. 6 lacD. 6.5 lacE. 8 lac23. What is the maximum time available to a customer for lodging complaint to Ombudsman:A. 1 month from date of complaint made to bank and no reply receivedB. 1 month from date of complaint, reply received but customer not satisfiedC. 1 year from date of receipt of reply from the bankD. 1 year from date of lodgement of complaint with the bank + 1 month, where reply has not been received. E. (C) or (D)24. An FD payable to either or survivor for Rs. 25000 is in the names of A and B. The receipt is lost and a duplicate is issued on the basis of indemnity. Later on A comes with original on date of maturity for payment.A. The bank will pay to A because it is payable to either or survivorB. The bank will not pay because a duplicate has been issued making the original as useless. Hence the consent of B is requiredC. The court will be informed.D. any of the above at the discretion of the bank E. None of the above 25. Ravi your customer of a saving bank account is approached by a person called Ram to give an introduction to enable him to open a saving bank account with your branch to which he agrees. Subsequently it is proved that Ravi gave introduction though he really did not know much about Ram. In such situation:A. Bank can hold Ravi responsible as he carelessly gave the introductionB. Bank cannot hold Ravi responsible as Ravi has not violated introduction rulesC. Bank can recover 50% of amount from RaviD. any of the aboveE. None of the above26. Intt. in SF account is calculated on:A. Minimum balance during the monthB. Balance as on 30th of the monthC. Minimum balance between 10th and last day of the monthD. balance as on 10th and last day of the monthE. None of the above27. A gives a mandate in favour of B to operate his account and later on a power of attorney is executed by A in favour his wife. In the case:A. Mandate will would remain effective along with power of attorneyB. Mandate would become ineffective, if revoked specificallyC. Court intervention should be hadD. Only power of attorney will be operativeE. (A) and (B).28. In a public limited company, maximum and minimum no. of shareholders is:A. 50 and 10B. No limit and 7C. 100 and 2D. 1000 and 100E. any number at the discretion of the company29. A company is availing credit facilities from your branch. Which among these credit facilities does not require registration of charges u/s 125 of Companies Act 1956 for:A. Packing Credit for shipment of goodsB. Hypothecation of stocksC. Pledge of stockD. Term loan for machineryE. bills discounting30. For doorstep banking by banks, RBI has issued directives under which of the following Acts: A. RBI ActB. Negotiable Instrument ActC. Banking Regulation ActD. Shops and Establishment ActE. Industrial Disputes Act31. In a partnership firm, the no. of partners cannot go beyond 10 or 20 depending upon the nature of business. The provision regarding this maximum no. of partners is mentioned in:A. Indian Partnership ActB. Indian Contract ActC. Indian Companies ActD. Banking Regulation ActE. None of the above32. Ravi Kumar and Sons, an HUF, maintain a current account. The Karta of the HUF dies and leaves behind three family members i.e. his wife and two minor sons. How will you deal with the account?A. Bank will stop operations in the accountB. Account can be operated by minor son being male memberC. Account would be operated by widow being guardian of eldest male member to be called Karta D. account can be operated by any of the two sonsE. None of the above. 33. Which of the following documents in case of a company, is called Charter of the company:A. Resolution from Board of Directors or ShareholdersB. Memorandum of AssociationC. Articles of AssociationD. Certificate of IncorporationE. Certificate of Commencement of Business34. A bank receives a cheque for collection from its customer. Bank gives credit before collection of the cheque. It also allows the customer to withdraw the amount. In such case, the:A. Bank is holderB. Bank is holder for valueC. Bank becomes holder in due courseD. representative of the drawerE. None of the above35. Not negotiable crossing means:A. The collecting banker should confirm about the genuineness of holder before collection of his chequeB. The not negotiable cheque cannot be further negotiated.C. Collection of not negotiable cheque will not get protection under NI ActD. A transferee cannot get better title than a transferor and he also cannot transfer a better title than he possesses.E. any of the above36 A bill is payable to or to order of a nontrading firm. Endorsement can be made by:A. Any partner of the firmB. All the partnersC. Authorised partner through power of attorneyD. Any two partnersE. Any of the above37. The term `allonge’ refers to: A. A plain sheet appended to a negotiable instrument for the purpose of making endorsement thereonB. Conditional endorsement of a negotiable instrumentC. A plain sheet appended to a willD. enclosures to the balance sheet of the bankE. None of the above38. A customer of Delhi branch of the bank having Multicity cheque book under the centralized business solution (CBS) demands payment of a cheque at Lucknow branch of the bank and there is connectivity between these two branches:A. it is not a proper demandB. demand is in order. Lucknow branch should pay. Bank would get proper discharge.C. to demand money all bank branches are considered one unit whether the cheque is normal or multicity.D. demand is in order, but Lucknow branch cannot get valid discharge as contract is with Delhi branch.E. (B) and (C) 39. A cheque is presented for payment through clearing house but due to certain reasons, it is returned unpaid. The returning memo is enclosed to comply with:A. Negotiable Instruments ActB. RBI ActC. Banking Regulations ActD. It is a practiceE. RBI clearing House rules40. The provision for making the payment of amount mentioned in words in a cheque is described u/s...of NI Act:A. 18B. 19C. 20D. 21E. 11841. A bearer cheque is issued by one Mr. Ashok in favour of Aman, but he forgets to hand over the cheque to Aman. Aman however, picks up the cheque in his absence from his table. Whether the negotiation has taken place?A. No, endorsement is also neededB. No, delivery is also neededC. No, endorsement and delivery both requiredD. yes, the cheque is drawn in his favourE. None of the above42. An export client M/s Shanbeg Exports of your branch receives an export order for export of handicraft items to US under a letter of credit of $ 30000. It is stated that your bank can issue another credit in favour of local supplier/manufacturer from whom the exporter is to procure the material. Under which of the following categories, such letter of credit can be classified:A. red clause letter of creditB. green clause letter of creditC. stand by letter of creditD. transferable letter of creditE. back to back letter of credit 43. A bank can purchase NPA from another bank, if in the books of selling bank, the account was NPA for____:A. 2 yearsB. 3 yearsC. 4 yearsD. 5 yearsE. 7 years44. If NPA is purchased from X bank by Y Bank and Y bank wants to sell it to Z bank, what is the minimum period for which the account should remain with bank Y:A. 6 monthsB. 12 monthsC. 15 monthsD. 18 monthsE. 36 months45. What is the risk weightage for capital adequacy purpose, in case of credit card?A. 25% B. 50% C. 100%D. 125%E. 150%46. In case of SJSRY, what is the minimum no. of members of women group under DWCUA:A. 25B. 20C. 15D. 12E. 1047. Under the Nayak Committee recommendations, the quantum of working capital limits from the bank is minimum____ of the projected annual sales:A. 5%B. 15% C. 20%D. 25% E. 3%48. A bearer cheque of Rs. 3 lac has been presented by Mr. Sham Kumar, the payees of a cheque drawn on your branch. He being new to the bank has shown inability to give identification:A. in case of bearer cheque, no identification is needed irrespective of the amount of the chequeB. Identification is required to safe guard the interest of the bankC. Identification is essential for all instruments for getting protectionD. Identification would not be required if presented with pass bookE. none of the above49. Mr. Dharmvir has given a power of attorney to Mr. Ashok Kumar for operation of accounts and dealing with negotiable instruments drawn in favour of Mr. Dharmvir. What will be the correct endorsement by Mr. Ashok Kumar among the following?A. Dharmvir sd/ by Ashok KumarB. Ashok Kumar sd/ Ashok KumarC. For Dharmvir sd/ Dharmvir by Ashok KumarD. For Dharmvir sd/ by Ashok Kumar (attorney for Dharmvir)E. For Ashok Kumar sd/ by Ashok Kumar50. Mr. Jugraj Lal comes to open a saving bank account with your branch. He also has a cheque of Rs.500, which he would deposit in the account when account is opened. Which among the following can be accepted as first deposit in the account?A. cash onlyB. chequeC. bank draftD. bankers’ chequeE. any of the above51. What is the target (quota) for SC/ST and other backward classes under PMRY:A. 40%, 10%B. 30%, 20%C. 22.5%, 27%D. 27%, 22.5%E. 20%, 30%52. In case of a partnership firm, the managing partner execute the documents on behalf of firm. If you are branch auditor, what would you suggest to the branch staff?A. All the partners sign all documentsB. All partners sign in both the capacities i.e. jointly and severallyC. partners sign in their individual capacityD. Both the aboveE. None of the above53. For Term loan the period of limitation is three years from:A. Date of documentsB. Date of defaultC. Date of sanctionD. Due date of each instalmentE. Date of default of each instalment54. In case the debt is acknowledged after the expiry of limitation period, the limitation period will be:A. Extended by another three years from this dateB. Extended for another three years from date of expiryC. extended for 3 yearsD. Not be extendedE. None of the above55. In term loans, NPA is the account when:A. Principal has remained past due for 3 months wef March 31, 2004B. Interest, principal or other charges, remain unpaid for a period more than 90 days wef March 31, 2004C. Interest and principal have fallen due and paid after more than 90 daysD. any of the above whichever is earlierE: None of the above 56. What is the extent up to which the credit is allowed to women as part of the overall credit being extended by the banks:A. 3% of their priority sector creditB. 5% of their total creditC. 5% of their net bank creditD. 5% of their priority sector creditE. 5% of their incremental deposits57. In case of advances covered under ECGC or DICGC guarantee, the provision under provisioning guidelines is to be made for the outstanding balance:A. After reducing the amount of cover available from the outstanding balanceB. Without taking into account the above said coverC. reducing the amount if actually recoveredD. Any of the aboveE. None of the above58. In the group approach system of lending, the following norms have been prescribed by RBI relating to ceiling on exposure of banks:A. 15% of capital fund for individual borrowerB. 40% of capital fund for borrowing groupC. 5% for infrastructure projectsD. (A) and (B) aboveE. (A) to (C) above59. What is the %age of loan accounts that is to be routed through rural or semi urban branches in DRI advances:A. 2/3rdB. 50%C. 40% D. 1/3rd E. 30%60. What is the reservation for women in SGSY scheme:A. 60%B. 50%C. 40%D. 30%E. 25%61. There are certain financial instruments whose prices are derived from the price of the underlying currency or interest rate or stocks etc. These are known as:A. DerivativesB. SecuritisationC. LeasingD. FactoringE. Venture Capital Funding62. The concepts of Monetary Aggregates and Liquidity aggregates such as M1, M2, M3 and L1, L2 and L3 have been revised on the recommendations of which of the following committees:A. Narasimham CommitteeB. Rangarajan CommitteeC. Raja Chelliah CommitteeD. Y V Reddy CommitteeE. L C Gupta Committee63. A process, through which, a member owned organisation becomes a shareholderowned company, is called:A. DemutulisationB. DematerialisationC. factoringD. DerivativesE. Securitisation64. After the conversion of hypothecation into pledge the bank will have the same right as that of:A. PledgeeB. MortgageeC. PledgerD. hypothecateeE. Hypothecator65 On CRR the banks get interest ___ on ___:A. bank rate, entire balanceB. 3.5%, eligible balanceC. bank rate, eligible balanceD. 3.5%, entire balanceE. discretion of RBI.66. Charge created by a borrower in favour of a secured creditor on movable assets without possession, is known as per provisions of ___ Act:A. Lien, Indian Contract ActB. Assignment, SARFAESI ActC. Mortgage, Transfer of Property ActD. Hypothecation, Indian Contract ActE. None of the above67. What is the funding ratio for SGSY scheme within state and central govt.:A. 25:75B. 33:67C. 50:50D. 75:25E. 80:2068. Which two currencies have been included by RBI in its REER:A. Japanese Yen and Chinese YuanB. Chinese Yuan and Singapore DollarC. Singapore Dollar & Australian DollarD. Australian Dollar & Canadian DollarE. none of the above69. Which among the following is limited to 150% of threshold yield under the Rashtriya Krishi Bima Yojna?A. the amount of loan to be covered by the insurance policyB. the amount of premium on the insurance policyC. the amount of the insuranceD. the amount of claim under the insurance policyE. any of the above, whichever is higher70. What is the amount of claim which will be paid immediately by the Credit Guarantee Fund to a bank if the amount of loan in default is Rs.16 lac on the eligible date:A. Rs.16 lacB. Rs.12 lacC. Rs.9 lacD. Rs.3 lacE. none of the above71. The funding in the ratio of 75:25 is done by Central and State Govt. for which of the following Govt. sponsored schemes:A. PMRY SchemeB. SJSRY schemeC. DRI schemeD. SLRS schemeE. all the above72. Your branch proposes to sanction loan to a retail trader for the commodities which are not covered by the definition of essential commodities. What is the maximum amount of loan that could be sanctioned to the borrower:A. Rs.3 lacB. Rs. 5 lacC. Rs.10 lacD. Rs. 20 lacE. no ceiling73. A letter of credit is silent about the currency in which the insurance is to be obtained. In which of the following will it be obtained?A. Indian rupeesB. EuroC. US Dollar d PoundE. currency of the letter of credit74. Which of the following confers on the trustees, the power to obtain loan:A. Trust deedB. Trust deed writerC. BeneficiaryD. resolution from the trusteesE. Commissioner of Charity75. What is the amount of minimum paid up capital and capital adequacy ratio % for a new private bank:A. Rs.100 cr, 15%B. Rs.200 cr, 15%C. Rs.200 cr, 12%D. Rs.200 cr, 10%E. Rs.300 cr, 10%76. On which kind of the following deposits, the senior citizens can be allowed additional interest as per RBI directives?A. current depositsB. saving bank depositsC. term depositsD. (A) to (C) allE. (B) and (C) only77. How many review of the Annual Policy Statement (Credit Policy) are made by RBI and when:A. One, during OctoberB. two, during April and OctoberC. Three, during July / October / JanuaryD. Four, during April, July, Oct & JanE. none of the above78. The maximum level upto which SLR is maintainable is:A. 25%B. 30%C. 35%D. 40%E. 45%79. As per the loan delivery system recommended by Jilani Committee, the borrowers are required to split their fund based working capital limits or MPBF into:A. term loan and billsB. demand loan and cash creditC. working capital demand loan and cash creditD. cash credit and billsE. term loan and cash credit80. Prompt corrective action is initiated by RBI in respect of which of the following:A. when capital adequacy is below %B. when net NPAs are above 10%C. when return on assets falls below 0.25%D. (A) to (C) allE. (A) and (B)81. What is the level of net NPA of a bank when on satisfying other conditions, the bank can declare dividend:A. less than 9%B. less than 8%C. less than 7%D. less than 5%E. less than 4%82. A cheque with amount in words written as rupees five thousand is presented but the amount in figures is not stated. The payee insists on immediate payment:A. cheque can be paid after consulting the drawer onlyB. cheque can be paid after obtaining indemnity from the payee and the drawerC. cheque can be paid for amount in words u/s 18 of Negotiable Instrument ActD. cheque being Inchoate Instrument cannot be paid E. none of the above83. A bearer cheque has been drawn in favour of Mrs. Durani, who wants to negotiate it further. How she will endorse the cheque:A. Durani (Mrs.)B. Mrs. DuraniC. sd/ ( Mrs. Durani)D. Any of aboveE. none of the above84. Which among the following is the most appropriate crossing to consider it a `special crossing’?A. `Pay X through his bank’ within two transverse linesB. Payee’s account through his bank without transverse linesC. Name of the bank without transverse linesD. Name of the bank within transverse linesE. (C) and (D)85. Which among the following is provided u/s 22 of Negotiable Instrument Act in the context of a Bill of Exchange:A. drawee to be permitted 48 hours for acceptance of the billB. drawee can accept the bill by signing on the face of the billC. presentation of the bill should be at the business place of the draweeD. drawee can be allowed 3 days of grace for making paymentE. drawee can make the payment on next preceding business day if the payment falls due on a holiday86. A term loan is sanctioned for:A. Working capital purposesB. Investment in current assetsC. Investment in fixed assetsD. both for fixed assets and current assetsE. any of the above87. What is the maximum amount of donation that a profit making bank make during a year:A. 5% of its profits after taxB. 4% of its audits profitsC. 2% of the profits of the previous yearD. 1% of the profits of the previous yearE. maximum Rs.5 lacA borrowing firm submits to the Commercial Bank, the balance sheet with following particulars:Capital and Reserves 24 lacTerm loans 16 lacTrade Creditors 12 lacExpenses payable 8 lacBank cash credit 20 lacFixed assets 24 lacSecurity deposit for Electricity 4 lacPreliminary expenses 2 lacStocks 30lacBills receivable/book debts 14 lacCash and bank balances 6 lacNet profits 6 lacSales 120 lacOn the basis of above information, please work the following ratio? 88. Current ratio would be:A. 1.10:1B. 1.15:1C. 1.20:1D. 1.25:1E. 1.33:189. What will be the quick ratio:A. 0.85:1B. 0.75:1C. 0.50:1D. 0.40:1E. 0.30:190. The debt equity ratio would be:A. 2.1:1B. 1.76:1C. 1.34:1D. 1.10:1E. 0.73:191. Debtor’s velocity ratio would be:A. 1.4 monthsB. 1.6 monthsC. 1.8 monthsD. 2.0 monthsE. 2.2 months92. What will be stock turnover ratio:A. 3 timesB. 4 timesC. 5 timesD. 5.5 timesE. 6 times93. Under Uniform Practices for Documentary Credit, if quantity is not specified to be exceeded or reduced, it should not exceed the tolerance level of:A. 1%B. 2%C. 3%D. 5%E. 10% 94. In case interest rates rise during a year, the current market value of existing Govt. securities generally:A. remain constantB. increasesC. fallsD. moves up after falling initiallyE. none of the above95. Which of the following is not a term which is used in the context of Asset Liability Management?A. Maturity BucketsB. Capital FundC. Residual maturityD. Interest rate riskE. none of the above96. Which agency processes the loan applications under the scheme Swarn Jayanti Shehri Rozgar Yojna:A. DRDAB. Distt Industry CentreC. KVICD. Urban local bodyE. Reserve Bank97. Under which of the following categories, a contract of insurance is categorised?A. contract of agencyB. contract of guaranteeC. contract of indemnityD. contract of guarantee and indemnityE. an actionable claim98. Under the provisions of law, what is the maximum no. of companies, on the Board of Directors of which, an individual can become a Director:A. 5B. 10C. 15D. 20E. 2599. As per RBI directives, what amount a bank is expected to transfer to statutory reserve fund:A. 20% of profits before taxB. 25% of the profitsC. 20% of profits before declaration of dividendD. 25% of profits before declaration and dividend and taxE. 25% of profits before dividend declaration100. A cheque of Rs.15000 issued in favour of M/s Manish Kumar & Sons is deposited by the proprietor of the firm Mr. Manish Kumar in his personal saving bank account, which the collecting bank refuses to collect, to guard itself against conversion, while Manish Kumar insists on that:A. the stand taken by the bank is correct since the cheque belonging to the firm cannot be collected for the account of individualB. the stand taken by Manish Kumar is wrong as it is discretion of the bank to decide whether to collect or notC. stand taken by the bank is incorrect since in the case of proprietorship, the account of the firm and that of the individual are considered in the same name and same capacityD. cheque can be collected only if Manish Kumar provides an indemnityE. none of the aboveAnswers : Test No. 101 E02 D03 C04 C05 A06 A07 C08 D09 E10 A11 C12 C13 D14 A 15 E16 A17 B18 D19 D20 C21 C22 C23 E24 B25 B26 C27 E28 B 29 C30 C31 C32 C33 B34 B35 D36 B37 A38 B39 E40 A41 B42 E 43 A44 C45 D46 E47 C48 A49 D50 E51 C52 B53 D54 D55 B56 C 57 A58 D59 A60 C61 A62 D63 A64 A65 B66 E67 A68 B69 C70 C 71 B72 C73 E74 A75 E76 C77 C78 D79 C80 D81 C82 D83 E84 E 85 D86 C87 D88 D89 C90 E91 A92 B93 D94 C95 B96 D97 C98 C 99 E100 C