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

Questions and Answers for Bank Promotion Exams (SET 1)


1. A and B
operate FD deposit (E or S) and nominee. If A died, Withdrawal of FD at
maturity by B alone.

2. Insurance
sector in India is regulated by: IRDA

3. Credit card
and Debit Card is called: Plastic money

4. SGSY has been
replaced by: NRLM

5. Full form of

6. Headquarter
of Asian Clearing Unit: Tehran, Iran 

7. Headquarters
of Emirates Islamic Bank: Dubai, UAE

8. A
___________is a credit card that’s issued by a retailer and bears the name of
both the retailer and the credit card company. co-branded card 

9. Right of a
nominee begins when: on the death of all account holders except in the case of
jointly operated locker accounts.

10. A cheque
will be valid for: 3 months from date of issue

11. A crop will
be called short duration crop if its crop season is up to: 12 months

12. A crossed
cheque is paid to the authorized person of the collecting Bank. Whether is it a
violation of statutory provisions on crossing as per N I Act?  No. Payment can be made to the authorized
representative of bank in cash also.

13. A customer
Mr Sharma had credit balance 40,000 in his saving ac and also had an OD ac with
overdue Debit balance of 20,000. Bank debits his saving account and adjusts OD
ac. The bank is said to have exercised the Right of: Set-off

14. A DD is
required to be crossed with account payee crossing if the amount of DD is: Rs
20000 and above

15. A derivative
contract that involves the exchange of a stream of agreed interest payments on
a ‘notional principal’ amount during a specified period. interest rate swap

16. A financial
derivative contract that gives the buyer the right, but not the obligation, to
either buy (call option) or sell (put option) an asset at a pre-determined
price (which is known as the strike price) by a specified date (which is known
as the expiration date).

17. A financial
derivative contract which is a combination of cash and/or generic derivative
instrument. structured derivative

18. A financial
derivative contract whose value is derived from one or more interest rates,
prices of interest rate instruments, or interest rate indices. interest rate

19. A financial
derivative contract whose value, in absolute terms, changes more than
proportionately to the change in the underlying risk. leveraged derivative

20. A financial
transaction and a type of debtor finance in which a business sells its accounts
receivable (i.e., invoices) to a third party at a discount is called: Factoring

21. A letter of
credit which becomes available again on the negotiation of documents under LC
is called: Revolving LC

22. A minor will
attain majority at the age of: 18 years

23. A product
that derives its value from the performance of an underlying entity: Derivative.

24. A savings
account becomes inoperative when it has not been operated for: 2 years

25. A
Substandard account becomes doubtful after: 12 months from date of becoming

26. A term
deposit is maturing on Sunday, a non-business working day. Bank makes payment
on Monday, a working day. Interest shall be paid. Ans – up to Monday

27. A term
deposit of a HUF has become due. At the time of renewal of account, the Karta
of HUF informs that he has become a Senior Citizen. What rate of interest will
be given on term deposit? : Normal interest rate. No benefit of senior
citizen to be given

28. A written
instrument which is a commitment to pay against tender of the documents Letter
of Credit

29. ABC are
partners of a firm X. Firm has availed loan of Rs. 2,00,000/- and one of the
partners died when the liability is Rs. 2.00 lacs. After the death of a
partner, credit of Rs. two lacs and debit of Rs. 1.50 lacs happened in the
account. What is the liability of the legal heirs of the deceased partner as
per Claytons rule?: there is No liability

30. Account
holder dies. Cheque signed by POA presented for payment. What should be done? Not
to be paid.

31. After 6
months of successful transaction, which facility will be provided for accounts
opened under PMJDY scheme? Overdraft

32. After
Nomination in an account, what is the status of the nominee? Trustee of
legal heirs

33. Agency banks
are required to credit the pension for the month of March on. Ans – 1 st
working day of April

KYC (Know Your Customer) 30 MCQs on KYC Guidelines (Part 2) for Bank Promotion Exams

34. All District
Credit Plans under Lead Bank Scheme are required to launched by every year,
after these are aggregated in State level plans? 1 st April

35. All
transactions, involving payment of interest on FCNR-B deposits shall be rounded
off to decimal places. Ans – two

36. All
transactions, involving payment of interest on rupee deposits shall be rounded
off to nearest Re.1

37. Amount below
2 lac can be remitted from one bank to other bank within India by – RTGS, NEFT,
SWIFT, Money Transfer scheme: NEFT

38. An advance
has been given to a private limited company against hypothecation of stocks.
With whom charge is required to be registered? Registrar of Companies.

39. An asset is
doubtful for more than 2 years. How much provision is required to be made on
the unsecured portion of the same: 100 %

40. An option
contract whose value is based on Rupee interest rates or interest rate
instruments. Interest rate option

41. An overdue
FD will be renewed from the due date of FD if it is presented for renewal
within: 14 days from due date.


43. As per KYC
guidelines, Demand draft of how much amount cannot be issued against cash? Rs
50,000 and above

44. As per KYC
norms, in the event of change in this address due to relocation or any other
reason, customers may intimate the new address for correspondence to the bank
within: two weeks of such a change

45. As per
latest change, what is the maximum PPF contribution that can be paid in a F.Y? Rs

46. As per
latest RBI guidelines, DD of Rs. 20000/- and above to be issued as: A/c
payee crossing

47. As per
official language policy, where participants in a training program are from
regions ‘A’ and ‘B’, the training may be imparted in: Hindi.

48. As per PMLA,
due diligence of KYC does not refer to: Knowing family status of account

49. As per
section 107 and 108 of Indian Evidence Act, a person can be presumed to have
died if he is missing for: 7 years

50. As per
Section 31 of N I Act, in case of wrongful dishonor of cheque, bank will be
liable to: Drawer of cheque and not liable to payee.

51. As per which
Act, DD cannot be made payable to the bearer? Section 31 of RBI Act.

52. At the national
level, APY is monitored by: Pension Fund Regulatory and Development

53. Bailment of
goods or securities to secure debt is called: Pledge

54. Bailment of
goods to secure payment of a debt is called – Lien, Pledge, Negative Lien,
Hypothecation: Pledge

55. Balance
lying in the account of a company. When winding up proceedings of the company
started funds in the account will be at disposal of: Official Liquidator


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