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RAPID READING
EXERCISE – PART:: 02
01.
The administrative heads of
the department heads are responsible for compliance
of Official Language Policy of Government of India
02.
MS word is an application software
03. The locker holder is sick and as such he gives an authority in favor of
the minor son to operate the locker and in this case, the bank can allow the minor to operate
the locker
04. A – a minor endorses a cheque in favour of B. In the case of
dishonour, A - cannot be held liable as when a minor endorses a cheque all parties
are liable except the minor
05. You come across a cheque on which neither the words bearer nor order are
written. You will make the payment of
this cheque by treating it as an order cheque
06.
Debt Service Coverage Ratio denotes solvency position of the firm
07.
Shroff committee had
recommended that companies entering into merger and acquisition transactions,
making preferential allotment of shares to related parties and proposing
buyback of shares must appoint
registered valuer for independent valuation of shares and assets
08.
Debt equity ratio denotes the solvency position of the firm
09.
The accountholder is the drawer of the cheque
10. Not negotiable crossing means that
the holder in due course will not get the better title
11.
Account opening form is a
very important document because it forms the basis of contract between the bank
and the customer and it contains the
offer of the customer to enter into a contract with the bank
12. The following are not abound on a negotiable instrument as drawer,
acceptor or endorser –a lunatic, an
alien enemy and an insolvent
13. An order cheque is transferable only
by endorsement and delivery
14.
The term – “allonge” refers
to a plain sheet appended to a negotiable
instrument for the purpose of
making endorsement thereon
15.
The following endorsements
are invalid – endorsement after maturity
of the instrument, partial endorsement, endorsement on a discharged instrument
and endorsement in the case of negotiation
16. “Account Payee” crossing is not
mentioned in the Negotiable Instruments Act – 1881
17.
The “protest” is the formal
notarial certificate attesting the dishonour of the bill, and based upon the noting.
18.
Service Area Approach is a
result of recommendation of committees headed
by P D Ojha
19.
A person who owns unirrigated land of 3 acres will be classified
as a marginal farmer
20.
A foreign traveller encashes
travellers cheques for $1000 at Rs. 47.25. It
is a purchase transaction
21.
A restricted letter of
credit is one in which the negotiation
is restricted to a specific bank
22.
Red Clause letter of credit
is one which authorizes release of
preshipment finance to the beneficiary
23. Limited company means – limited liability clause in memorandum of
association.
24.
Garnishee Order is issued
under Rule 46 of Order XXI of the
schedule to the code of Civil Procedure - 1908
25.
A contract of guarantee is
defined as – a contract to perform or
discharge the liability of the principal debtor in the case of his default
26.
To be a valid acceptance, the
drawee shall affix his signature with or
without the words – ‘Accepted”
27.
A Government Company means 51% of the paid up share capital is held by
State Government and/or Central Government
28.
If the registrar of DRT
refuses to file the suit due to discrepancies in copybook, bank
can file the appeal before presiding officer of DRT within 15 days
29.
Lok adalats are constituted
under Legal Services Authorities act
30.
Stamp duty earned by the
government on demand promissory note goes
to the state government
31.
When the bill becomes due
for payment – it is the starting point
of limitation on a bill of exchange payable at a fixed time after date
32.
Cash Reserve Ratio is
maintained by the banks by keeping cash
balance with Reserve Bank of India
33.
Nomination facility can be
allowed in the following cases – deposit
account of individuals, articles kept in safe custody and lockers
34. A certificate of deposit is an
usance promissory note
35. Subordinated debt is an element
of tier II capital
36.
Accumulated loss will be deducted from tier I capital
37.
Vaghul Committee had recommended the introduction of Certificate
of Deposits
38.
The basic nature of a
Commercial Paper is – it is usance
promissory note
39.
“A pass through certificate”
- PTC
can be of the following nature in securitization transactions – with recourse
and without recourse
40.
Global depository receipt is
listed on Stock Exchange outside USA
41.
Current Ratio denotes liquidity
42.
Simultaneous Sale and Purchase
of a share to take the benefit of the variation in prices in two different markets is called – Arbitrage
43.
Current Ratio denotes – liquidity
44.
Debt Recovery Tribunals have
been created by the Government as a
result of the recommendations of Narasimhan Committee
45.
When a bill matures on a
public holiday, the maturity date of the
bill falls on the next preceding business day
46.
A negotiable instrument can always be negotiated until it has been paid up or satisfied
47.
In the case of dishonor of a
foreign bill, protest is compulsory when
it is required by the law of the place where it is drawn
48.
An engineer is financed for
the purchase of a car. The same can be
classified as Non priority sector
49.
Under drip irrigation system
water is used very economically and
supplied drop by drop to the roof zone of crop
50. “Yellow Revolution” is in connection with growing of fruits specially banana
51.
The economic life of a
tractor is - 10 years
52.
The natural guardian of a married
minor girl is her husband
53.
The minimum number of share
holders in a Private Limited Company – two
members
54.
To open an “Administrator
account” the bank requires letter of
administration
55.
Karta has the absolute
authority to appoint any person as an
agent and the agent need not to be a family member
56.
Garnishee Order – is the
court order obtained by judgment creditor attaching
funds with Bank of judgment debtor
57. Indemnity means to make good the
loss to the promise/indemnityholder
58.
A bearer who takes a bearer
cheque bonafide and for value will be a
holder in due course
59.
Mortgage is defined in – Section 58 of transfer of property act –
1882
60.
A banker can exercise the
right of set-off only in respect of
debts due and determined
61.
Banks are restricted to
advance against its own shares – as per
“Banking Regulation Act”
62.
The recovery of dues after
issuance of recovery certificate by Presiding Officer of DRT can be made
through – Recovery Officer of DRT
63.
The roles of Lok Adalat – to arrive at compromise or settlement;
issue final judgment and to give the consented decree
64.
The remedy under Section 138
of Negotiable Instruments Act is
available – when the cheque is presented
to paying banker within a period of six months or within the period of its
validity whichever is earlier
65.
In case a document travels
from higher stamp area to lower stamp, additional
stamps are not required to be affixed
66.
The purpose of maintaining a
“documents execution register” is that it
is a prima facie evidence of execution of documents
67.
One rupee note bears the signature of the Secretary, Ministry of
Finance
68.
Nomination facility is not allowed in joint safe custody accounts
69.
Free capital is a part of tier I capital
70.
Kumar Mangalam Birla is the architect of SEBI’s Corporate
Governance Code
71.
Malhotra Committee had
suggested to establish an “Insurance
Regulatory Authority”
72.
The minimum denomination for
a Commercial Paper is Rs.5.00 lakhs
73.
The maximum period for which
a Certificate of Deposit can be issued –
not more than 12 months
74.
Capitalisation of reserves leads to issue of bonus shares
75.
1,2,3,4,5,6,7,8,9 – numerals
are called International form of Indian
numerical
76.
Key-board is an input device
77. MS - DOS is a system software
78.
Dear money policy is meant to control inflation
79. An illiterate borrower cannot sign acknowledgment of debt but affixes
his thumb impression on it. The
limitation period will be extended by this action
80.
Section 45 Z of Banking
Regulation Act relates to handing over
of original paid cheques to the corporate customer
81.
As per the Prompt Corrective
Action scheme, RBI can initiate certain structured actions in respect of the
banks which have hit the trigger points
in terms of CRAR, Non performing advances and Return on advances
82.
Under Know Your Customer
guidelines, the identification and reporting of suspicious transactions are to be
done on quarterly basis to Audit
Committee of the board of directors
83.
To prevent slippage of
accounts to NPA category, RBI has designed broad framework detailing preventive
and corrective measures. One of the measures is the introduction of new asset
category between “standard” and “sub standard”. This new category is called Special mention accounts
84. While opening accounts of Executors and Trustees to the estate of a deceased
person, bank should scrutinize the trust
deed, order of charity commissioner and probate
85.
Stamp duty on which of the
following documents does not vary from state to state – Mortgage agreements, hypothecation agreements, guarantee agreements and
bills of exchange.
86.
If no time for payment is
specified in a promissory note or bill of exchange, such an instrument is
considered as – instrument payable on
demand
87. Acceptance is not required in the
case of promissory note and demand bill of exchange
88. To open an executor account the bank
should insist on probate
89.
The following do not fall
within the implied powers of a partner under section 19(2) of the Partnership
act, 1932 – opening a banking account on
behalf of the firm in his own name, compromising or relinquishing any claim or
portion of a claim by the firm and withdrawing suit or proceedings filed on
behalf of the firm
90.
In a balance sheet, profit is shown under liabilities side
91.
The term – preshipment
advances is used to describe advances
granted to exporters for the purpose of manufacturing, processing, packaging
etc. or simply procuring goods meant for export
92.
In an account of a minor
operated by the guardian, after the death of the guardian, the balance cannot be paid to the minor even though he has completed
the age of 10 years
93.
On the death of a partner,
the firm having credit balance stands dissolved and to wind up the affairs of
the firm the surviving partners are allowed to jointly operate the account and
if it decides to continue after registering the Municipal Death certificate
recording fresh mandate for operation, the
existing account can be continued and operation allowed
94.
Opening a banking account on
behalf of the firm in his own name, compromising or relinquishing any claim or
portion of the claim by the firm, withdrawing suit or processing filed on
behalf of the firm do not fall within the implied powers of a partner under Section 19(2) of the Partnership act
– 1932.
95.
Garnishee order attaches
debts due or accruing due. This means
deposits payable on demand and payable at a future date
96.
Parties to a guarantee are Principal debtor, surety and creditor
97.
A cheque may be crossed by drawer or holder
98.
The purpose of mortgage is to possess the ownership of others property
99.
A banker can set-off the
amount held in the time deposit account of customer against the debit balance
of the same customer in overdraft account only after maturity of the fixed deposit
100.Civil Procedure code provides the provision exemption for arrest in execution of a decree for
money under Section 56
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