Multiple Choice Questions on Types of
Customers and Accounts for Bank Promotion Exams (Part 2)

Let us discuss some more questions on
different types of customers and accounts.

 

41. The minimum number of members in a private
limited company is.

Option A.   2.

Option B.   7.

Option C.   5.

Option D.   50.

 

The correct answer is Option A.   2.

 

42. The maximum number of members in the
private limited company.

Option A.  10.

Option B.  200.

Option C.  50.

Option D.  150.

 

The correct answer is Option B.  200.

 

43.  A
private limited company (other than one-man company) must have at least………. Directors.

Option A.  2.

Option B.  3.

Option C.  5.

Option D.  9.

 

The correct answer is Option A.  2.

 

44. The minimum number of members in a public
limited company is.

Option A.  2.

Option B.  5.

Option C.  7.

Option D.  10.

 

The correct answer is Option C.  7.

45. The maximum number of members in a public
limited company is.

Option A.  1000.

Option B.  2000.

Option C.  5000.

Option D.  no limit.

 

The correct answer is Option D.  no limit.

 

46. A public limited company must have at least
how many directors?

Option A.  2.

Option B.  3.

Option C.  5.

Option D.  9.

 

The correct answer is Option B.  3.

 

47.  A
Joint stock company is an artificial person created by law under provisions of.

Option A.   Banking Regulation Act, 1949.

Option B.   Companies Act, 1956.

Option C.   Companies Act, 2013.

Option D.  either Option B.  or Option C.  above.

 

The correct answer is Option D.  either Option B.  or Option C.  above.

 

48. 
Which of the following documents is Issued by the Registrar of
companies?

Option A.   Memorandum and Articles of Association.

Option B.   certificate of Incorporation.

Option C.   Certificate of commencement of Business.

Option D.  only Option B.  & Option C.  above.

 

The correct answer is Option D.  only Option B.  & Option C.  above.

 

49. 
While opening current account of a private limited company, the bank
needn’t Insist on production of.

Option A.   Certificate of Incorporation.

Option B.   Memorandum and Articles of Association.

Option C.   Certificate of commencement of Business.

Option D.   Board ‘s resolution.

 

The correct answer is Option C.   Certificate of commencement of Business.

 

50. Which document is referred to as Charter
of the Company?

Option A.   Certificate of Incorporation.

Option B.   Memorandum of Association.

Option C.   Articles of Association.

Option D.  certificate of commencement of Business.

 

The correct answer is Option B.   Memorandum of Association.

 

51. The objects for which a company is
incorporated are contained in.

Option A.   Articles of Association.

Option B.  Memorandum of Association.

Option C.   Certificate of Commencement of Business.

Option D.   Certificate of Incorporation.

 

The correct answer is Option B.  Memorandum of Association.

 

52. ‘Uitra vires ‘in the context of a limited
company means any act.

Option A.   beyond the borrowing powers of the company.

Option B.   beyond the authority delegated to the Board
of Directors.

Option C.   beyond the scope of objectives of the company
as laid down in the Memorandum of Association.

Option D.   beyond the paid-up share capital of the
company.

 

The correct answer is Option C.   beyond the scope of objectives of the company
as laid down in the Memorandum of Association.

 

53.  A
company was constituted with the objective to promote computer software in
India. It has been granted credit facilities by the bank for manufacture of
plastic bags.  The contract between the
bank and the company.

Option A.   can be enforceable if all directors endorse
it.

Option B.   being uitra-vires can ‘t be enforceable at
all.

Option C.   can be enforceable, if ratified by the
members in a general body meeting by unanimous decision.

Option D.   can be enforceable, if ratified by the
members in general body meeting by 2/3rd majority.

 

The correct answer is Option B.   being uitra-vires can ‘t be enforceable at
all.

 

54. 
Articles of Association of a company contains details regarding.

Option A.   objectives of the company.

Option B.   authorized share capital of the company.

Option C.   matters connected with the conduct of
day-to-day affairs of the company.

Option D.   registered office of the company.

 

The correct answer is Option C.   matters connected with the conduct of
day-to-day affairs of the company.

 

55. 
Every person dealing with a limited company is presumed to have
knowledge of contents of.

Option A.  Memorandum & Articles of Association.

Option B.   Certificate of Commencement of Business.

Option C.   Certificate of Incorporation.

Option D.   Board ‘s resolutions passed from time to time.

 

The correct answer is Option A.  Memorandum & Articles of Association.

 

56. ‘Constructive Notice ‘ in the context of a
limited company means.

Option A.   that the company has been duly registered.

Option B.   that the company intends to go in for a
public issue.

Option C.   that anybody dealing with the company has
knowledge about its Memorandum and Articles of Association.

Option D.   that every stakeholder is informed about the
date of next general body meeting.

 

The correct answer is Option C.   that anybody dealing with the company has
knowledge about its Memorandum and Articles of Association.

 

57. 
While opening account of a public limited company, the bank requires.

Option A.   Memorandum and Articles of Association.

Option B.   Certified copy of Board ‘s resolution.

Option C.   Certificate of Incorporation and of
commencement of Business.

Option D.  all above.

 

The correct answer is Option D.  all above.

 

58.  The
General Manager of a public Itd, company who is authorized to operate the
Company account is going abroad, He requests the bank that in his absence the
Finance Manager will operate the account, His request can be.

Option A.  acceded to in the normal course.

Option B.  acceded to if the Company Secretary
countersigns the same.

Option C.   accepted only after resolution by the Board
to the effect is passed.

Option D.   either Option B.  or Option C.  above.

 

The correct answer is Option C.   accepted only after resolution by the Board
to the effect is passed.

 

59.  The
account of a limited company is operated by the two directors Jointly.  we come to know about the death of one of the
directors authorized to sign cheques on behalf of the company. The next day a
cheque bearing his signature and that of another director is presented through
clearing. in this case.

Option A.   we may pass the cheque after seeking
confirmation of the other signatory to the cheque .

Option B.  we may pass the cheque after seeking
confirmation of the other signatory and one more director of the company. 

Option C.   we can pass the cheque, if otherwise in order.

Option D.  we must return the cheque with reason ‘one
signatory dead’.

 

The correct answer is Option C.   we can pass the cheque, if otherwise in order.

 

MCQs on TYPES OF CUSTOMERS AND THEIR ACCOUNTS FOR BANK PROMOTION EXAM

60.  A
sports club approaches us for opening a current account.  we should call for.

Option A.   copy of rules and by-laws.

Option B.   copy of the resolution of managing committee.

Option C.   certificate of registration.

Option D.   all above.

 

The correct answer is Option D.   all above.

 

61. A Flying club has an account with us which
is operated by its secretary and treasurer jointly.  A cheque is presented and we come to know that
the treasurer expired two days ago.  In
the circumstances.

Option A.   we can pass the cheque only after
confirmation of the secretary.

Option B.   we should pass the cheque, if otherwise in
order.

Option C.   we can return the cheque with the reason ‘signatory
reported dead ‘.

Option D.   we should return the cheque and close the
account.

 

The correct answer is Option B.   we should pass the cheque, if otherwise in
order.

 

62.  The
law relating to trusts is given in.

Option A.   Trust Deed.

Option B.   Articles of Association.

Option C.   Indian Trusts Act, 1882.

Option D.   Memorandum of Association.

 

The correct answer is Option C.   Indian Trusts Act, 1882.

 

63. 
While opening account of a trust which of the following documents must
be inspected and copy obtained.

Option A.   Articles of Association.

Option B.  Trust Deed.

Option C.  certificate of registration.

Option D.   Memorandum of Association.

 

The correct answer is Option B.  Trust Deed.

 

64.  A
trust has three trustees.  They come to
the branch to open a current account in the name of the trust and insist that
anyone of them should be allowed to operate the account.  Under the circumstances we should.

Option A.   open the account as the trustees can delegate
powers to one of them.

Option B.   open the account as requested, if the
trustees are persons of good means.

Option C.   not permit unless trust deed specifically
allows for operation by one trustee.

Option D.   not open the account as trustees have always
to act jointly.

 

The correct answer is Option C.   not permit unless trust deed specifically
allows for operation by one trustee.

 

 65.  Two trustees of a trust having four trustees
in all want to appoint an attorney to operate the trust account.  We.

Option A.   may allow them to do so in the normal course.

Option B.   may allow them to do so, if they undertake to
indemnify the bank.

Option C.  may allow them to do so, if the remaining two
trustees also join them.

Option D.  can ‘t allow them to do so as trustees can ‘t
delegate their powers.

 

The correct answer is Option D.  can ‘t allow them to do so as trustees can ‘t
delegate their powers.

 

66.  A
trust has two trustees.  The deed allows
for operation by either of them.  one of
the trustees has expired.  A cheque
signed by the deceased trustee is presented through clearing.  We should.

Option A.   pass the cheque, if otherwise in order.

Option B.  return the cheque with the remark ‘trustee
deceased ‘.

Option C.  pass the cheque only after obtaining consent
of the surviving trustee.

Option D.   return the cheque and close the account as
trust comes to an end after death of a trustee.

 

The correct answer is Option A.   pass the cheque, if otherwise in order.

 

67.  A
trust has Asha and Amar as its trustees, Amar is declared insolvent.
Subsequently a cheque signed by him is presented for payment, We should.

Option A.   pay the cheque, If otherwise in order.

Option B.   not pay the cheque as such a payment will not
be payment in due course.

Option C.   pay the cheque only after confirmation of
Asha.

Option D.   return the cheque and close the account as
trust comes to an end, when a trustee becomes Insolvent.

 

The correct answer is Option A.   pay the cheque, If otherwise in order.

 

68.  The
sole trustee a public trust died in a railway accident, In this case.

Option A.  trust will be wound up.

Option B.  trustee / trustees may be appointed by the
beneficiaries/court.

Option C.   legal heirs of the deceased sole trustee will
acquire trusteeship.

Option D.   Charity Commissioner will appoint some other
trustee (s).

 

The correct answer is Option B.  trustee / trustees may be appointed by the
beneficiaries/court.

 

69. 
Shri Sankar Mehta, the sole trustee of a hospital managed by a public
trust, has approached the bank to allow loan for purchase of some urgent
equipment for the hospital.  He is
prepared to execute personal guarantee for the amount of the loan.  We should.

Option A.   allow the loan only if the trust deed
provides for granting of loan to the trustee.

Option B.   allow the loan as it is going to be utilized
for the benefit of the community.

Option C.   allow the loan only if authorized by the
Charity Commissioner.

Option D.   allow the loan after seeking clearance of a
court of competent jurisdiction.

 

The correct answer is Option A.   allow the loan only if the trust deed
provides for granting of loan to the trustee.

 

70.  The
eldest member in a Joint Hindu family is called.

Option A.   Karta.

Option B.  co parcener.

Option C.  attorney.

Option D.   any of the above.

 

The correct answer is Option A.   Karta.

 

71. According to law, the Karta has an implied
authority to take a loan for the purpose of business of joint Hindu
family.  While granting loan to an HUF,
the loan documents should be got executed by.

Option A.   Karta.

Option B.   all adult male members of the family
including Karta.

Option C.  Karta with the consent of all other adult male
members of the family.

Option D.  either Option B.  or Option C.

 

The correct answer is Option B.   all adult male members of the family
including Karta.

 

72. 
There is a current account with us in the name of an H.  U. 
F.  The account is operated by the
Karta.  We receive a notice of his death.
in the circumstances.

Option A.   we should stop the account till court
appoints another Karta.

Option B.   we should allow the next senior most adult
member to operate the account as he/she will become the Karta after completion
of certain formalities.

Option C.   we should close the account and pay the
balance to the legal heirs of the deceased.

Option D.   we should place the balance in the account at
the disposal of a court.

 

One-liner Questions and Answers for Bank Promotion Exams (SET 1)

The correct answer is Option B.   we should allow the next senior most adult
member to operate the account as he/she will become the Karta after completion
of certain formalities.

 

73.  The
Karta of an H.  U.  F.  has
expired.  There is no adult male
coparcener in the family.  There are
three minor male members aged 15 years, 10 years and 8 years who are living with
their mother.  The HUF was having current
account with us.  In this case the
account will be.

Option A.  closed as there is no adult male co parcener
and money deposited with the court.

Option B.  transferred to inoperative accounts ledger and
revived after the eldest male member attains majority.

Option C.  operated by the mother who will become the
karta.

Option D.  operated by the mother and all the three
children under the joint signatures.

 

The correct answer is Option C.  operated by the mother who will become the
karta.

 

74.  In
relation to banking transactions, an executor is a person who is.

Option A.  appointed by the court to look after the
affairs of the deceased.

Option B.  named in the will of the deceased to manage
his estate.

Option C.   appointed by the legal heirs of the deceased
to distribute his wealth amongst them.

Option D.  required to execute construction work of the
deceased.

 

The correct answer is Option B.  named in the will of the deceased to manage
his estate.

 

75. 
While opening account in the name of an executor, we must obtain.

Option A.   original will.

Option B.  probate.

Option C.   succession certificate.

Option D.   letter of administration.

 

The correct answer is Option B.  probate.

 

76. 
When a person dies without leaving behind a will, a person appointed by
the court to manage his estate is called.

Option A.   an executor.

Option B.  an attorney.

Option C.  an administrator.

Option D.  a manager.

 

The correct answer is Option C.  an administrator.

 

77. While opening account in the name of an
administrator, we must obtain.

Option A.   original will.

Option B.   probate.

Option C.   succession certificate.

Option D.  letter of administration.

 

The correct answer is Option D.  letter of administration.

 

78. Probate is a document issued by a court of
law and is in the nature of.

Option A.   a succession certificate.

Option B.  a legal certification of the will of the
deceased.

Option C.   a decree against debtors of the deceased.

Option D.   a document debarring legal heirs from
entitlement to assets of the deceased.

 

The correct answer is Option B.  a legal certification of the will of the
deceased.

 

79.  The
main difference between mandate and power of attorney is that.

Option A.   a mandate is a stamped document whereas power
of attorney is not.

Option B.   mandate
is stamped with adhesive stamps and power of attorney with non-judicial stamps.

Option C.   mandate is not stamped whereas the power of
attorney is stamped.

Option D.   mandate is not given to other than a joint
account holder and power of attorney is given necessarily to an outsider.

 

The correct answer is Option C.   mandate is not stamped whereas the power of
attorney is stamped.