Mock test
(SET 1) for Bank Promotion Exams
1. The Proprietor has separate existence from the business
is as per __________ concept:
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a) Business Entity
b) Objective Evidence
c) Conservatism
d) Consistency
e) None of these
2. Dual aspect concept means recording of _______ effects of
a transaction.
a) Material
b) Objective
c) Double
d) financial
e) None of these
3.Which of the following could be termed as conservative
concept or convention:
a) Accounting policies should be followed consistently year
after year.
b) All significant accounting practices and policies
followed in the preparation of accounts and financial statements should be
disclosed
c) While preparing financial statements, all future losses
are provided in the accounts but unrealized prospective profits are not
recognized as income till their realization.
d) All material events, policies used in the preparation of
financial statements must be disclosed.
e) None of the above
4.As per consistency concept:
a) a firm cannot change method of depreciation from straight
line method to written down value method
b) a firm cannot change method of depreciation from written
down value to straight line method
c) a firm cannot change inventory valuation from first in
last out to first in first out or vice versa
d) a change in method of depreciation / inventory valuation
is allowed but such a change should be stated clearly and its impact disclosed
in the financial statement
e) none of the above
5. EEFC Account can be opened by
a) Non-Resident Indian (NRI)
b) NRI who returned to India permanently
c) Any Resident with local source of income
d) Residents who have forex earnings
e) None
6. Failure of internal systems, processes and people lead to
a) Credit Risk
b) Market Risk
c) Liquidity Risk
d) Operational Risk
e) Technology Risk
7. As per IBA Model Education Loan Scheme, the minimum &
maximum age criteria for the borrower (student) is……
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a) 10 & 35 years
b) 18 & 35 years
c) 18 & 45 years
d) All majors
e) None
8. As per extant guidelines, advance against book debts
should not exceed ……. % of working capital limits.
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a) 10%
b) 50%
c) 25%
d) 100%
e) no such ceiling
9. PCFC advance generally allowed for a maximum period
of
a) 360 days
b) 270 days
c) 180 days
d) 90 days
e) no such limit
Previous Years Recalled Questions for Bank Promotion Exams (Set 5)
10. TDS deducted by bank, is to be remitted to Income Tax
authorities within…..
a) 15 days from the date of deduction
b) 7 days from the date of deduction
c) 15 days in the succeeding month
d) 10 days in the succeeding month
e) 7 days in the succeeding month
11. All the systems in Office building are inter-connected
is called as
a) Wide area network
b) Intra departmental network
c) Satellite link
d) Local area network
12. Companies look for Commercial Paper since they need
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a) Long Term Low Cost funds
b) Short Term High Cost funds
c) Long Term High Cost funds
d) Short Term Low Cost funds
e) None
13. Money Laundering refers to
A) Transfer of assets/cash form one account to another
B) Conversion of illegal money into legal through banking
channels
C) Conversion of cash into gold for hoarding
D) Conversion of assets into cash to avoid income tax
14. One of the important steps for opening NRI account is
A) Authentication /verification of signature of the NRI by a
bank abroad/by the Indian Embassy/Relationship Managers posted abroad
B) Authentication /verification of signature of the NRI by
the relative of NRI in India
C) Authentication /verification of signature of the NRI by
the friend of NRI who are staying abroad
D)Authentication /verification of signature of the NRI by a
local person known to the bank
15. While opening an account in the name of a company, the
most important document to be seen is
A) List of employees/directors of the company
B) List of promoters/shareholders of the company
C) Memorandum and
Articles of Association of the company
D) Instructions of the Registrar of Companies
16. In case of societies, the important document to be
verified is
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A) Copy of bye-Laws
B) Certificate given by ROC
C) Certificate given by the Local Authorities
D) No document is to be verified in case of societies, as
societies are exempted by Registrar
17. While opening an account for a partnership firm, the
vital documents to be produced by the firm is
A) Partners “MOU”
B) Partnership deed and Letter of Partnership
C) Registration certificate of partnership
D) Partners tax clearance documents
18. PAN (Permanent Account Number) is compulsory for Fixed
Deposits, Remittances like DDs/TTs/TCs etc
A) If the amount exceeds Rs.10000/-
B) If the amount exceeds Rs.50000/-
C) If the amount of Rs.50000/- and Above
D) No such limit is fixed by the Income tax authorities
19. The authority to which branches of commercial banks
should report suspected accounts is
A) Controlling office/Regional Office
B) Directly to FIU-IND
C) Directly to RBI
D) Directly to Finance Ministry/Policies
20. Branch should not open deposit/advances account of the
following organizations
A) Banned/terrorist organizations circulated by the local
authorities
B) Banned/terrorist organizations circulated by the Chamber
of Commerce
C) Banned/terrorist organizations circulated by the
Registrar of Companies
D) Banned/terrorist organizations circulated by the
statutory authority
Economic Terms in Brief for Bank Promotion Exams, JAIIB, CAIIB
21. Minimum punishment prescribed for the offence of Money
laundering Act is
A) 7 years
B) 9 years
C) 10 years
D) 12 years
22. Penalty to the banks for violating the Money Laundering
Act is
A) Up to Rs. 15 lacs for violating every single norm
B) Up to Rs. 25 lacs for violating every single norm
C) Up to Rs. 50 lacs for violating every single norm
D) Up to Rs.100 lacs for violating every single norm
23. Maximum retention period of the bank records that can be
produced to the directorate of Anti-Money laundering by the financial
institutions in case of suspicious transactions is
A) 5 years
B) 7 years
C) 10 years
D) 15 years
24. Dormant/Inoperative account means
A) No debits/credits in account for a certain period
B) Dead account without any operation for long
C) No debit entries, but certain credit entries (Interest)
for certain period
D) Fixed asset account of the bank
25. Following are the indicators of suspicious transactions
in a customer account
A) Deposit of high value third party cheques endorsed in
favor of the account holder frequently
B) Sudden increase in cash deposits without any valid reason
C) Receipt or payment of large sums of cash, which have no
obvious purpose
D) All the above
26. Role of front-line employees in respect of KYC
guidelines is
A) Identification of customers as per extant instructions
B) Service with smile while opening the customer accounts
C) Assist the customer in filling-up the account opening
forms
D) Provide efficient, prompt and courteous forms
27. Unusual activities in respect of a customer’s accounts
are
A) Opening of account at a place other than the place of
work
B) Frequent deposits of large sums of money bearing labels
of other banks into the account
C) Request for closure of newly opened accounts where high
value transactions are already routed through
D) All the above
28. Which of the following document/s can be accepted by
banks as a proof of Customer
Identification
A) Electricity Bill
B) Salary Slip
C) Income/Wealth tax assessment order
D) Election Identity card
29. Threshold limit is to be fixed for each account by the
bank
A) After 6 months from the date of opening account
B) After 12 months from the date of opening account
C) After 36 months from the date of opening account
D) At the time of opening the account itself
30. For business enterprises the threshold limit is to be
fixed based on the following formulae
A) One-month turnover subject to a maximum of Rs.10 lacs
B) Based on the working capital requirements of the firm
C) Based on the finance made by the bank
D) None of the above
31. Cash Monitoring Register is
A) To note down the receipts and payments of the branch
B) To note down the high value transactions of the customers
C) For internal and external audit purposes
D) For verification by the controllers of the branch
KYC (Know Your Customer) 30 MCQs on KYC Guidelines (Part 2) for Bank Promotion Exams
32. Monitoring suspicious transactions is the responsibility
of
A) Officer-in-charge of the respective accounts
B) Branch Manager
C) Controlling Authority
D) Customer
33. Difference between buying and selling rates in an
exchange rate or interest rate quotation is known as
(A)Strike price
(B) Spread
(C) Swap points
(D) Spot rate
34. The price which one subsidiary or one unit of business
charges from another for selling goods or providing services is
(A) Transfer price
(B) Strike price
(C) Spot price
(D) Forward rate
35. The bond that does not pay any interest and issued at a
price lower than its reimbursement value is called as
(A) Zero coupon bond
(B) Coupon bond
(C) Euro bond
(D) Domestic bond
36. International Development Association established in
(A) 1970
(B) 1962
(C) 1960
(D) 1958
37. International Finance Corporation established in
(A) 1956
(B) 1960
(C) 1966
(D) 1970
Part 2 : TYPES OF CHARGES, SECURITIES & DOCUMENTATION With Multiple Choice Questions and answers (MCQs) for Bank Promotion Exams
38. …………..means using short-term forward contracts to offset
“paper” gains and losses on the long-term assets and liabilities of foreign
subsidiaries.
(A) Hedging transaction exposure
(B) Hedging balance-sheet exposure
(C) Hedging economic exposure
(D) Hedging cost exposure
39. Which exchange rate theory focuses on the inflation –
exchange rate relationship?
(A) Interest rate parity
(B) International Fisher Effect
(C) Purchasing power parity
(D) Traditional Model
40. The exchange rate prevailing at a financial reporting
date
(A) Closing exchange rate
(B) Opening exchange rate
(C) Fixed exchange rate
(D) Fluctuating exchange rate
Answers:
|
Ques. No |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
|
Ans |
a |
c |
c |
d |
d |
d |
e |
b |
c |
e |
|
Ques. No |
11 |
12 |
13 |
14 |
15 |
16 |
17 |
18 |
19 |
20 |
|
Ans |
d |
d |
b |
a |
c |
a |
b |
c |
a |
d |
|
Ques. No |
21 |
22 |
23 |
24 |
25 |
26 |
27 |
28 |
29 |
30 |
|
Ans |
a |
d |
a |
c |
d |
a |
d |
d |
d |
a |
|
Ques. No |
31 |
32 |
33 |
34 |
35 |
36 |
37 |
38 |
39 |
40 |
|
Ans |
b |
a |
b |
a |
a |
c |
a |
b |
c |
a |
