MULTIPLE CHOICE QUESTIONS FOR BANK PROMOTION EXAMS (MCQ 1) 1. In case LC is received, within how many days one has to examine the export documents submitted under LC? a) 5 banking days b) 7 banking days c) 5 days d) 7 days 2. A deposit is treated as unclaimed after a period of …………… a) 5 years. b) 7 years. c) 10 years. d) 20 years. 3. Which banker gets protection under section 85 of Negotiable Instrument Act, 1881? a) Collecting banker. b) Paying banker. c) Issuing banker. d) Both a and b. 4. Any resident Indian May hold foreign currency notes/ coins to the extent of ……...... a) Up to USD 1000 including notes and coins or its equivalent. b) Up to USD 1000 notes and USD 1000 coins. c) Up to USD 2000 including notes and coins or its equivalent. d) Up to USD 2000 notes and coins up to any limit. 5. Margin in case of agriculture advance up to a limit of 100000 is …………… a) 5% b) Nil c) 10% d) 15% 6. Hypothecation is defined in ………….. a) SARFAESIA Act, 2002 b) Indian Contract Act , 1872 c) NI Act ,1881 d) RBI Act 7. Town official language implementation committee meet is conducted once in……… a) a month b) 3 months c) 6 months d) 12 months 8. Which of the following is negotiable instrument? a) promissory note b) return receipt c) fixed deposit d) airway bill 9. Who are the owners of a public limited company? a) Directors of the company b) Shareholders c) Government Of India d) None of the above 10. Which act defines safe custody? a) Indian Contract Act 1872 b) NI Act, 1881 c) Not defined in any act d) RBI Act 11. Preservation of records for how many years is mandatory under RTI act 2005? a) 15 years b) 20 years c) 5 years d) 10 years 12. For initiating recovery proceedings under SARFAESI Act, the minimum amount outstanding in the account should be rupee………….. a) 2.00 lakh b) 5.00 lakh c) 1.00 lakh d) 0.50 lakh 13. Term deposit of Rupees 20000 or more is not paid in cash under provisions of which act? a) Income Tax Act 1961 b) RBI Act c) Indian Contract Act , 1872 d) None of the above 14. What rate of interest is allowed by RBI on CRR balances maintained with it? a) 2.5% b) 2.75% c) 1.25% d) Nil 15. A contract of insurance is a contract of………. a) security b) guarantee c) indemnity d) none of the above 16. Unstamped document cannot be rectified in case of……….. a) Mortgage deed b) Sale deed c) partition deed d) none of the above 17. The minimum amount withdrawal by cheque from a savings account is rupees….. a) 2 b) 1 c) 5 d) 10 18. Provisions of SARFAESIA are applicable to which of the following? a) Pledge of goods b) Only mortgage properties. c) Securities that are not otherwise charged to the creditors. d) Security is charged to creditors and not in possession of the creditor. 19. What is an impersonal Collateral security? a) Security in the shape of intangible. b) Collateral security given by third party. c) Guarantee provided for securing the death. d) Collateral security given by the borrower but in the shape of goodwill and trademark 20. Which committee recommended turnover method for Small Scale Industry? a) Nayak Committee. b) Tandon Committee. c) Narsimhan Committee. d) Ghosh Committee. ANSWERS Ques.No 1. 2. 3. 4. 5. 6. 7. 8 9 10 Ans. a c b d b a c a b a Ques No 11 12 13 14 15 16 17 18 19 20 Ans. b c a d c d c d b a
