Mock test (SET 2) for Bank Promotion Exams
1. Which of the following is a feature of the accrual
concept
a) income & expenses are recorded as and when they
become due and not as and when they are actually received or paid
b) business is presumed to exist for a long time
c) recording of both income and expenses incurred to earn
the income & matching the same before showing any profit or loss
d) the accounts are prepared for a specific period generally
12 months
e) none of the above
2. The statement “Balance sheet is not a valuation
statement” is based on the principle of:
(a) Going concern
(b) Historical cost
(c) Consistency
(d) Both (a) & (b)
(e) None of these
3. The statement “Caliber or quality of management team is
not directly disclosed on the Balance Sheet” is based on the principle of:
(a) Going concern
(b) Historical cost
(c) Realization
(d) Matching
(e)Money Measurement Concept
4. The statement “Goods sold to a worker at cost is adjusted
to purchases account” is based on the principle of:
(a) Materiality
(b) Historical cost
(c) Realization
(d) Revenue Recognition
(e) None
5. Which of the following transactions will not be recorded
in accounting records?
a) compensation of US $3 million paid by XYZ Ltd. to a
worker on account of alleged sexual harassment as it is not on account of
business transaction
b) loss of reputation of a bank by being not able to meet
commitments
c) provision on standard asset
d) provision on NPA at a higher rate than prescribed by
RBI
e) all above
6. Which of the following is incorrect about expenses?
a) expenses are incurred for generating revenue
b) expense means the amount spent to carry on routine
operations
c) expense is a revenue expenditure
d) expense is a capital expenditure
e) none of the above
7. Customer of your branch aged above 65 years placed a term
deposit and requests TDS exemption as his total income including interest
income falls below the taxable income, which form he need to submit to the
branch?
a) Form G
b) Form H
c) a or b
d) No form is required
e) None
8. Borrowers availing crop loans up to 3 lakhs in the
current year are eligible for interest subvention of ……. besides incentive of
………. for prompt repayment.
a) 1% & 3%
b) 2% & 1%
c) 3% & 1%
d) 2% & 3%
e) None
9. Validity period of a cheque is defined as 3 months under
………. Act
a) Indian Contract Act
b) B R Act
c) Negotiable Instruments Act
d) RBI Act
e) Not defined in any Act
10. Bank is required to submit XOS statement to RBI, in
respect of
a) Foreign exchange transactions
b) Import transactions
c) Overdue export bills
d) Overdue import bills
e) FCNR accounts
11. Zero Coupon Bonds refers to
a) Bond issued at face value
b) Bond issued with face value & interest
c) Bond issued at discount from its face value with interest
d) Bond issued at discount from its face value without
interest
e) None
12. CDR-1 system is applicable only to accounts which are
under
a) Standard
b) Sub-standard
c) Doubtful
d) a & b
e) All
13. For transfer of funds through NEFT (National Electronic
Fund Transfer) and minimum and maximum amount that can be transferred are
a) Rs.1,000 and maximum Rs.5 lacs
b) Rs.1,000 and maximum no limit
c) Rs.5,000 and maximum Rs.1 lac
d) No minimum & maximum amount
e) None of the above.
14. A term deposit of NRO can be accepted for a minimum
period of
a) 1 year
b) 2 years
c) 6 months
d) 7 days
e) 3 years
15. In computerized branches of commercial banks, the
balances of the customers are to be checked/verified with the following
A) Limits of the customer
B) Drawing power of the customer
C) Threshold limits of the customer
D) Balances lying in the customer’s other accounts
16. One of the recommendations of the IBA committee on Money
laundering is
A) Appointment of MLRO (Money laundering Reporting Officers)
B) Appointment of outside agency to monitor the suspicious
transactions of the bank
C) Appointment of law officer to monitor the suspicious
accounts
D) None of the above
17. One of the objectives of KYC guidelines is
A) To get protection under SEBI Act
B) To get protection under Consumer protection act
C) To get protection under section 87 of NI act
D) To get protection under section 131 of NI act
18. Introduction of a customer for opening a current account
can be obtained from the following
A) From satisfactorily conducted savings account holder
B) From well-known authorities
C) From staff member to whom customer is well known
D) From customer of current or cash credit account holders
who know the business lines of an individual
E) Introduction not required
19. While opening an account of a company, the following is
must
A) Introduction by a customer known to the banker
B) Certificate of incorporation/certificate of commencement
of business
C) Introduction by ROC
D) None of the above
20.While opening an account of society/association/club, the
following is must
A) Resolution for opening the account
B) Copy of the bye laws
C) Certificate of Registration
D) All the above
21.While opening an account of Hindu Undivided family, the
following is must
A) HUF letter to be signed by karta
B) Introduction letter from the other co-parceners of the
HUF
C) Registration letter from the government
D) None of the above
22. While opening an account in the name of trust, the
following is must
A) Trust deed and registration of trust deed
B) Introduction from trustees of the trust
C) Introduction from the registrar of co-operative societies
D) None of the above
23. The cut off limit for monitoring transactions is
A) All transactions (irrespective of amount) of suspicious
nature
B) All transactions of Rs. 10 lacs and above
C) Both A & B
D) None of the above
24. Any lapses in adhering to the guidelines of KYC is under
the purview of ——— and liable for penalty
A) Consumer Protection Act
B) Banking Ombudsman
C) FERA Act
D) Competition Act
25. Layering under money laundering refer to
A) Disguising the origin of initial deposit through multiple
transfers
B) Disguising the origin of initial deposit through Multiple
Transactions
C) Both A & B
D) None of the above
26.Placement under money laundering means
A) Smuggling bulk cash
B) Mix illicit proceeds with legitimate deposits
C) Deposit amounts in small denominations
D) All the above
27.At what point is the PEP (Politically Exposed Persons)
check done?
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
28. In case the name of any banned organization appears as
payee/endorsee/applicant, the concern official should inform this to
A) The presenter of this instrument
B) The drawer of the cheque by the immediate
supervisor/controller
C) Returning the cheque with the objection with „refer to
drawer‟
D) The RBI
29. KYC guidelines have been issued by RBI under the
provisions of
A) Section 35 of Banking Regulation Act
B) Section 35 –A of RBI act
C) Section 35-A of Banking Regulation act
D) Section 35-A prevention of Money Laundering Act
30. KYC guidelines of RBI protect banks from being used for
A) money laundering purpose by criminals
B) Financing terrorism C) for
financing black marketing activities
A) A to C all correct
B) A and B correct
C) B and C correct
D) A and C correct
31. Banks are to keep a close watch on large size cash debit
or credit transactions in deposit or loan accounts and keep a record of such
transactions. For this purpose, the large size transaction means, where the
amount is
A) Rs.10 lacs and above
B) Above Rs. 10 lacs
C) Less than Rs. 10 lacs
D) All the above
32. KYC guidelines take into account the recommendations of
an international Financial Action Task Force A) On anti-money laundering
standards B) on combating financing terrorism
C) on manipulation of economic offences
A) A and B only
B) B and C only
C) A to C all
D) A and C only
33. KYC policy of our bank, as per RBI directives contains
elements of A) Customer Acceptance
Policy B) Customer identification Procedure
C) Monitoring of transactions D)
Risk management
A) A, B, and C only
B) A, C, and D only
C) B C and D only
D) A to D all
34. The word „Customer‟ is defined in which of the following
act?
A) RBI act
B) BR act
C) KYC/AML guidelines
D) Negotiable Instruments act
35. The bank account of a non-resident of a country, where
the amount of currency in the account cannot be transferred to another country
is called as
(A) Nostro account
(B) Blocked Account
(C) Foreign account
(D) Capital account
36. Funds that cannot be remitted from the subsidiary to the
parent due to host government restrictions is known as
(A) Close – ended funds
(B) Open – ended funds
(C) Restricted funds
(D) Blocked funds
37. Maintaining a
foreign currency account is helpful to
(A) Avoid transaction cost.
(B) Avoid exchange risk.
(C) Avoid both transaction cost and exchange risk.
(D) Avoid exchange risk and domestic currency depreciation
38. India’s foreign exchange rate system is?
(A) Free float
(B) Managed float
(C) Fixed
(D) Fixed target of band
39. Hedging transaction is indicated by
(A) Transactions in odd amounts
(B) Presentation of documentary support.
(C) Frequency of such transactions.
(D) None of the above.
40. The acronym SWIFT stands for
(A) Safety Width In Financial Transactions.
(B) Society for Worldwide International Financial
Telecommunication.
(C) Society for Worldwide Interbank Financial
Telecommunication.
(D) Swift Worldwide Information for Financial Transaction.
|
Ques.No |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
|
Ans |
a |
d |
e |
D |
b |
d |
b |
d |
d |
c |
|
Ques.No |
11 |
12 |
13 |
14 |
15 |
16 |
17 |
18 |
19 |
20 |
|
Ans |
d |
d |
d |
D |
c |
a |
d |
e |
b |
d |
|
Ques.No |
21 |
22 |
23 |
24 |
25 |
26 |
27 |
28 |
29 |
30 |
|
Ans |
a |
a |
c |
B |
c |
d |
a |
b |
c |
b |
|
Ques.No |
31 |
32 |
33 |
34 |
35 |
36 |
37 |
38 |
39 |
40 |
|
Ans |
b |
a |
d |
C |
b |
d |
c |
b |
d |
c |
