Previous Years Recalled Questions for Bank Promotion Exams
(Set 4)
1. A loan has been given to a
limited company against hypothecation of stocks. Company is required to get the
charge registered with: Registrar of Companies.
2. A cheque has been presented
for payment on which there are names of two banks. What should the bank do? The
bank will be returned in ordinary course of business unless one of the banks is
agent for collection for another bank.
3. Which of the following types
of lien is implied pledge – General Lien, particular lien, Banker’s Lien,
Negative Lien: Banker’s Lien
4. Which of the following ratios
indicate ability of a firm to pay term loan instalments in time – Current
Ratio, DSCR, Debt Equity Ratio: DSCR
5. Interest on Saving Bank
deposits is paid at what interval – Daily, Monthly, Quarterly, Half yearly: Quarterly
or earlier.
6. Assets are classified into 4
categories. Three of these categories are – Standard, Sub Standard, Doubtful
category. Which is the 4th category: Loss asset
7. Which of the following is part
of Balance Sheet of a bank – Interest, Provisions, Operating Expenses,
Deposits: Deposits.
8. When a bank will not be called
Holder for Value in collection of cheque: When cheque is credited to the
account after receipt of proceeds from collection of cheque.
9. What is the status of Nominee
in case of deposits: He is trustee of legal heirs.
10. When bank remits funds to RBI
for deposit in DEAF Account: When account is not operated for 10 years.
11. In case of Medium Risk
customer, KYC documents should be taken again within every: 8 years.
12. Khadi and Village industry
will be considered as Micro Enterprise if investment in plant and machinery is
upto: No limit. All such units are classified as Micro enterprise.
13. When along with growing crops
farmer undertakes rearing of Livestock, it is called: Mixed Farming.
14. A and B have joint fixed
deposit account with you which is payable to Either or Survivor. X has been
appointed as nominee. A has died. Payment on due will be made to whom: B who
is survivor.
15. What is the impact of
inflation: Purchasing power of money goes down.
16. What is Gresham’s Law: Bad
Money if not controlled in quantity drives good money out of circulation.
17. Securities are classified
into three categories including Available for Sale, Held till Maturity. Which
is the third category: Held for Trading
18. As per RBI guidelines, the
investments classified under HFT would be those from which the bank expects to
make a gain by the movement in interest rates/market rates. These securities
are to be sold within: 90 days
19. In a loan granted to A, B was
taken as guarantor. A defaulted but B paid the loan to the bank. As a result, B
is entitled to all rights and remedies which were available with bank as
creditor. This right of guarantor is called: Right of Subrogation.
20. A customer
had given stop payment instruction to bank. But cheque was paid because of
Bank’s mistake. Customer account should be credited within how much time: Immediately
21. Banks
cannot grant loans against security of its own shares. This is as per: Section
20 of the Banking Regulations Act.
22. A bank is
required to have four components of KYC Policy of the bank. Three of these
components are – Customer Identification policy; Monitoring of Transactions;
Risk Management. Which is the fourth component: Customer Acceptance Policy.
23. Scale of
Finance i.e. crop loan per hectare is decided by: District Technical
Committee
24. A Fraud is
discovered in the branch which took place 5 years back. Which type of risk is
created: Operational Risk.
25. What is
maximum amount of claim that can be filed with Lok Adalat: Rs 20 Lakh
One-liner Questions and Answers for Bank Promotion Exams (SET 1)
26. What is the
impact of Reverse Repo: Liquidity is sucked.
27. Letter of
Credit and Bank Guarantees are: Conditional undertakings.
28. In case of
hypothecation, what type of possession with bank: Constructive Possession.
29. What is the
meaning of Conversion: Dealing with other’s property without his consent.
30. In case of
opening account of Self-Help Group, KYC documents should be taken in respect
of: Office bearers only.
31. NPA norms
are not applicable to advance against which of the following – Gold Jewelry;
Shares; NSC: NSC
32. What is
difference between Term Loan and Deferred Payment Guarantee: Outlay of Funds
33. Which of the
following is incorrect regarding amount of loan under DRI Scheme – (a) Maximum
loan for productive activity can be Rs 15,000; (b) Maximum loan to SC/ST for
construction of house can be Rs 20,000;(c) Maximum loan to physically
handicapped for purchase of artificial limbs can be Rs 5000: All are correct.
So, the answer is None of these
34. Number of
members in the Self-Help Group under NRLM: Normally 10 to 20 but in difficult
area and group of disabled persons, number of members can be 5 to 20
35. If
directors of a company take some action beyond objects of the company, how far
the company will be liable for such actions? Company is not liable as such
actions are ultra vires the company.
36. When amount
in words and figures differ on a cheque, then as per section 18 of N I Act,
which amount should be paid: Amount written in words.
37. What is the
relationship between Bank and Judgement Debtor when Garnishee order is issued: Debtor
and Creditor
38. Which of
the following is not included in Current Asset – Stock, Debtors, accrued
expense, prepaid expense: Accrued expense as it is current liability.
39. What is the
rate of subsidy in PMEGP if loan is made to a SC/ST woman in rural area: 35%
of the project cost.
40. What will
be the impact of reduction in SLR or CRR? Liquidity will increase which will
in more funds available to banks for lending.
41. A DD was
lost and duplicate was issued after necessary formalities. Today, both original
and duplicate are presented to bank for payment. What should the bank do? Make
payment of duplicate and return original with the reason “Duplicate issued and
paid”.
42. In case of
doubtful accounts, what is the rate of provision on secured and unsecured
portion if the account is doubtful for more than 3 years: 100% of the
secured portion as well as 100% of the unsecured portion.
Economic Terms in Brief for Bank Promotion Exams, JAIIB, CAIIB
43. A cash
credit or overdraft account becomes out of order when: DP is allowed on
stock statement which is 3 months old or outstanding is more than limit
sanctioned or drawing power (DP) or there are no credits in the account or
credits are insufficient to recover the interest.
44. ABC Ltd has
Profit before tax 75, income tax 30; interest on term loan 15; depreciation 10;
interest on working capital loan 8; term loan instalment 25; what will be the
DSCR? 70/40 i.e. 1.75 (75-30+15+10) / (15 + 25)
45. What is the
maximum amount of loan that can be granted under Tarun category in the case of
PMMY? Rs 10 Lakh
46. If any
advance, including bills purchased and discounted, becomes NPA, what should be
the treatment of interest earlier credited to income account: The entire
interest accrued and credited to income account in the past periods, should be
reversed if the same is not realized. This will apply to Government
guaranteed accounts too.
