bank exam prepare

•  Gilt edged securities refers to  :     
Ans.  Govt. Securities.

•  Increasing CRR by RBI leads to  :     
Ans.  Squeeze in liquidity.

•  Market Captialisation means-
Ans.  Number of shares issued by a company multiplied by current market price of the share.

•  Unqualified Report means  :     
Ans.  an Audit Report contains no "Clauses".


•  "Dividend Stripping" means__
Ans.  Purchase or Sale of shares by the individuals or company prior or subsequent to declaration of dividends.

•  Higher Foreign Exchange Reserves are associated with the risk of :     
Ans.  Fluctuation in exchange rates.

•  Collateralised Borrowing and Lending Obligation (CBLO) is a: 
Ans.  Money Market Instrument. .

•  Overhead expenses for Banking Sector compared to Manufacturing Sector is  :     
Ans.  Low.

•  Islamic Banking means  :     
Ans.  banking according to the Principles of Shariat

•  G8 Countries consist mainly of: 
Ans.  Developed nations.

•  Which State took the initiatives for consolidation of Co-operative banks  :     
Ans.  Maharashtra

•  Expand VAT :     
Ans.  Value Added Tax

•  Minimum period for which a Commercial Paper can be issued is :     
Ans.  7 days

•  Monetary Museum of India established by RBI is located at :     
Ans.  Mumbai

•  Yes Bank has been promoted by  :     
Ans.  Mr. Rana Kapoor

•  The country which has banned sale of Tobacco is :     
Ans.  Bhutan

•  Expand SACP :     
Ans.  Special Agriculture Credit Plan .

•  Dr. Montek Singh Ahluwalia at present is :     
Ans.  Deputy Chairman of the Planning Commission

•  Expand OSU :     
Ans.  Off Shore Unit

•  Maximum Forex permissible to a Resident Indian going abroad as tourist :     
Ans.  US $ 10,000 per financial year.

•  Banks are required to preserve records as per provisions of  :     
Ans.  Sec 45Y, Banking Regulations Act

•  KYC norms were implemented to :     
Ans.  Prevent Money Laundering.

•  A unique example of Co-op bank converting to a private commercial bank :     
Ans.  Development Credit Bank

•  Licence for starting a new Commercial bank is given by :     
Ans.  RBI

•  RBI rediscounts bills of the banks at  :     
Ans.  Bank Rate

•  Which charge does not require registration in case of limited companies :     
Ans.  Pledge

•  Irrevocable LC denotes that :     
Ans.  Terms and condition of LC cannot be changed without
consent of beneficiary.

•  Worla Elders days IS on  :     
Ans.  1st October.

•  Chairperson of Committee on Corporate Governance in Banks :     
Ans.  A.S. Ganguly

•  Committee associated with funding of Tea industry  :     
Ans.  Madhukar Committee.
Which committee is associated with Rural Credit System  :     
Ans.  V S Vyas Committee

•  Montreal Protocol relates to  :     
Ans.  Protection of Ozone Layer

•  Import Licence are issued for  :     
Ans.  CIF value

•  The cases referred to Lok Adalats formed by DRT is for  :     
Ans.  above Rs. 20 lac.

•  NK Singh Committee is associated  :     
Ans.  Foreign direct investment (FDI)

•  NIXI  :     
Ans.  Telecom Regulatory Authority of India (TRAI) has recommended the
establishment of Internet exchanges  :     
Ans.  Nationallntemet Exchange of India

•  According Multi Commodity Exchange, _ is the largest Potential Market in the Futures Trading of Carbon Credits in India :     
Ans.  Gujarat

•  __ has become the First Public Sector Bank to raise Equity Capital through Qualified Institutional Placement (QIP) :     
Ans.  Bank of India

•  According to the Global Information Technology Report 2007-08, __ is the Most Networked Economy in the World :     
Ans.  Denmark

•  Supreme Court upheld the Law enacted by the Union Government providing _ quota for other backward classes in Central educational institution such as IIT/ IIM from Academic year 2008-09 :     
Ans.  27%.

•  Postal Index Number (PIN) will be changed from :     
Ans.  6 to 8 digits, to ensure speedier delivery of post.

•  ____ is ranked as the World's Most Powerful Brand for the second straight year :     
Ans.  Google

•  The US has placed India and 8 other countries on its 'Priority Watch List' for this year for falling to protect __  :     
Ans.  The Copyrights, Patents and Trade Marks of American Producers from Piracy .

•  In a bid to enhance the insurance cover for exporters, the Govt. has decided to pump in Rs. 100 Crore in _ by way of increasing its Equity :     
Ans.  ECGC.

•  Per Capita Income of Indian is estimated at _ at current prices for 2007-08 as against Rs 16,668 In 2000-01 :     
Ans.  Rs. 33,299.

•  _ has the Largest Petroleum Reserves (almost 1I4th of the World's proven total petroleum reserves) in the World :     
Ans.  Saudi Arabia.

•  China is getting the better of India in Carbon Credits Trading. While the biggest projects in China produces an estimated 11 million Certified Emission Reduction a year, Biggest Prolect in India produces only _ :     
Ans.  4 million a year.

•  Loss making banks can make donations totaling Rs _ lakhs only in a financial year  :     
Ans.  Rs.5lac

•  Is Wheat a commercial crop  :     
Ans.  No

•  Largest trading partner country of India  :     
Ans.  USA

•  Maximum cotton yielding country  :     
Ans.  India

•  Maximum coffee yield  :     
Ans.  Brazil

•  Raksha Kawach  :     
Ans.  Railway Security

•  Dronacharya award relates to  :     
Ans.  Award to Sports Coach

•  Which among the currencies is the costliest in term of Indian Rupee :     
Ans.  Pound Sterling

•  The revised definition of sick SSI unit has been given by  :     
Ans.  Kohli Committee

•  Which unit of valuation is known as 'Paper Gold'  :     
Ans.  SDR.

•  Emission standard given by  :     
Ans.  Mashelkar Panel.

•  Currency of Greece :     
Ans.  Euro

•  Dialysis is related to :     
Ans.  Kidney patients

•  Cholesterol is related to :     
Ans.  Heart problems.

•  10th Dec. is observed as :     
Ans.  Human Rights Day.

•  Which RBI Committee is studying Lenders liability :     
Ans.  Dr. N. L. Mitra.

•  Which of the following is the computer language :     
Ans.  COBOL.

•  Which gas is emitted by motor vehicle :     
Ans.  Carbon mono oxide.

•  Name of Special animal protection group :     
Ans.  PETA (People for Ethical Treatment of Animals).

•  Handloom' is considered as second largest economic activity after :     
Ans.  Agriculture in India.

•  Documents under LC should be dealt with by the negotiating I issuing bank within a time period of not exceeding _ banking days excluding the date of receipt of documents  :     
Ans.  5 banking days

•  If the due date of CDs falls on a holiday it should be paid on  :     
Ans.  preceding working day.

•  ____ refers to purchase of book debts I receivables without recourse to the sellers :     
Ans.  Factoring

•  Maximum housing loans which would be treated as priority sector advance is :     
Ans.  Rs. 20 lacs.

•  Green back currency refers to :     
Ans.  US$.

•  Public holidays are excluded for determining time for presentation or acceptance for payment under :     
Ans.  Section 105 of Negotiable Instruments Act 1881.

•  Sec. 45Z of Banking Regulation Act 1949 deals with :     
Ans.  Return of paid instruments to account holders.

•  Can Bank exercise right of Set-off in respect of contingent liabilities :     
Ans.  No

•  US $ rate is increased from Rs. 401- to Rs. 43/- It will benefit the :     
Ans.  Exporters and will lead to increase in exports.

•  Bearer demand draft cannot be issued as per under Section __ RBI Act :     
Ans.  Sec 31 of RBI Act

•  If a Sole Trustee dies, the Trust will be managed by  :     
Ans.  Court appointed Trustee

•  Section 22 of the NI Act provides for a grace period 3 days to be added for arriving at the due date for a :     
Ans.  Usance bill.

•  Equitable Mortgage was created by deposit of title deeds on 1.6.2008. Subsequently Registered Mortgage was executed on 2.6.2008 on same property. Which Mortgage will have priority :     
Ans.  Equitable Mortgage

•  Mulberry loan is related to :     
Ans.  Sericulture.

•  Pre-paid expenses in the shape of insurance premium are classified in the Balance Sheet as :     
Ans.  Current asset

•  The Borrowing of the Board of Directors of the Public Ltd Company should not exceed :     
Ans.  Paid•up capital and free reserves.

•  Working Capital assessment for SSI units sanctioned Working Capital limit upto Rs 5 crore is as per  :     
Ans.  Nayak committee.

•  State-sponsored Corporation granted loan for on-lending to Weaker Section is covered by the bank under :     
Ans.  Indirect advance to agriculture.

•  Hypothecation has been defined in :     
Ans.  Section 2 (n) of SARFAESI Act.

•  In a cheque drawn by the drawer, the name of payee is written in English and the other parts, in vernacular language :     
Ans.  The cheque will be paid if otherwise in order.

•  Guarantor stepping into the shoes of creditor on discharging the liability of the principal borrower :     
Ans.  Right of Subrogation.

•  In Sec 148 of Indian Contract Act, Bailment refers to :     
Ans.  Delivery of goods from one person to another person for some purpose and when the purpose will be over, goods will be returned or disposed-off as per the direction of the deliverer, i.e. bailor.

•  Know Your Customer (KYC) guidelines :     
Ans.  Prevent banks from being used unwittingly used by criminal elements for transfer of illegal funds/ money laundering activities.

•  Preferential payment to depositors in respect of winding up of a Banking Company is provided :     
Ans.  under section 43 A of Banking Regulation Act 1949.

•  If Operating Cycle is longer :     
Ans.  This implies that higher amount of working capital will be required.

•  Clayton's Rule applies to :     
Ans.  appropriation of payments.

•  Vostro account means  :     
Ans.  Foreign Bank's A/c with us.

•  RFC ale can be opened by :     
Ans.  home returned NRls.

•  Guarantees covering series of transactions  :     
Ans.  Continuing Guarantees.

•  Buyer takes possesSion of goods and enjoys as Sole Owner of goods although price of goods not fully paid  :     
Ans.  Hire Purchase.

•  As per Sec. 26 NI Act, Minor may draw, endorse, deliver, Negotiable Instrument so as to bind all parties except himself  :     
Ans.  True.

•  Mr. A, a current A/c holder executed a power of attorney in favour of Mr. B to operate Current Deposit A/c. Mr. A's death notice is served on the Banker. A cheque duly signed by Mr. B. is received for payment the Bank has to :     
Ans.  Dishonour the Cheque.

•  Contract of Insurance is an  :     
Ans.  indemnity contract.

•  Bailment is in  :     
Ans.  Indian Contract Act Sec. 148.

•  Cheque may be crossed by drawer, holder, banker  :     
Ans.  All (Sec. 125)

•  Mortgage by Deposit of title of deeds is  :     
Ans.  Equitable Mortgage• (Transfer of Property Act, Sec. 58F).

•  Mortgage is defined  :     
Ans.  Transfer of Property Act Sec. 58(F)

•  Minor can be appointed as an Agent  :     
Ans.  Principal is responsibIe (Sec. 184 of Contract Act).

•  A/c Payee crossing is not recognised by an act :     
Ans.  Outcome of custom and usuage.

•  Cheque validfiy period has now statutory sanction as per :     
Ans.  Sec; 138 of NI Act

•  Writing name of bank on face of Cheque with or without two parallel lines
Ans.  Special Crossing. .

•  A/C payee crossing is direction to :     
Ans.  Collecting banker.

•  Garnishee Order applies to :     
Ans.  Credit Balance in CC

•  Unclaimed Deposit• 10 years and above  :     
Ans.  RBI (Sec. 26 of Banking Regulation Act)

•  Material alteration :     
Ans.  Requires drawers authentication.

•  Possession & ownership with borrower  :     
Ans.  Hypothecation

•  Safe Custody is covered under which act  :     
Ans.  Indian Contract Act

•  Safe Deposit Locker relationship with banker is  :     
Ans.  Lessor• Lessee.

•  Debt Equity Ratio  :     
Ans.  Type of Solvency Ratio

•  Break even paint means  :     
Ans.  No profit no loss.

•  Target of agriculture finance  :     
Ans.  18% of ANBC or Credit balance of off Balance sheet items, whichever is higher.

•  Current ratio = Current Assets + Current Liabilities.

•  Under RTI Act, the person seeking information should have qualifying eligibility of :     
Ans.  Indian Citizenship .

•  Minimum and maximum maturity period of a Commercial Paper :     
Ans.  7 days and 1 year.

•  New name of the Ministry of NRI Affairs  :     
Ans.  Ministry of Overseas Indian Affairs.

•  Most popular bench mark rate for Indian money market for one day call rates is :     
Ans.  MIBOR

•  What is the Cash Reserve Ratio that the Overseas Banking units have to maintain while opening the branch in SEZs :     
Ans.  No requirement

•  The country that revalued its currency Yuan against the US dollar is :     
Ans.  China

•  What is the maximum amount for which the CGTMSE guarantee cover• is available :     
Ans.  Fund & Non Fund based Rs. 1 cr.

•  Who has formulated the 'Swaran Jayanti Gram Swarozgar Yojana :     
Ans.  Ministry of Rural Development

•  Which bank has started 'Abhay' credit counselling centres in association with NGO :     
Ans.  Bank of India.

•  Concept of Priority Sector came in the year __  :     
Ans.  1972

•  What is the minimum and maximum number of persons that can form JLG for tenant farmers :     
Ans.  4 to 10 .

•  What is the name of in-built device in a computer where data is stored :     
Ans.  Hard Disc
bank exam prepare bank exam prepare Reviewed by pavan nadagundla on May 28, 2012 Rating: 5
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