RAPID READING EXERCISE – PART:: 03
01.
Appeal against the decision
of Dent Recovery Tribunal can be made
before Chairperson of DRAT within a period of 45 days
02.
If a document duly stamped
in Delhi travels to J and K state, additional
stamps equivalent to full stamp duty of Jammu and Kashmir state are required to
be affixed
03.
In case a borrower signs in
a vernacular language, a banker must obtain a duly witnessed certificate that
the contents have been read out and explained to the borrower in vernacular
language and the borrower had understood the same
04.
One rupee notes are issued by Government of India
05.
Borrowing powers of a
company are mentioned in the articles of
association
06.
A certificate of deposit is
issued by a bank at a discount to face
value
07. FIMMDAI means Fixed Income Money
Market and Derivative Association of India
08.
Chairman and Managing
Directors of nationalized banks are appointed
by Central Government
09. Hardware refers to – any part of
computer that is physically visible
10.
Special Purpose Vehicle
mechanism is suggested for divestment of
Government’s stake in Public Sector Unit
11.
Debt Service Coverage Ratio
shows the number of times the company’s
surplus generation covers the payment of interest and repayment of principal of
long debt
12.
The high level committee set
up by the finance ministry to review the system of administered interest rates
in the country – Y V Reddy Committee
13.
Under the Corporate Debt
Restructuring – CDR, the floor limit of
aggregate exposure is Rs. 20 crore
14.
In the case of
securitization, the number of loans are
put together and then distributed among small investors
15.
A NRE depositor has issued a
power of attorney in favour of his wife – a resident. She can withdraw cash,
issue cheques-crossed for local payments and deposit into the account a foreign
DD favouring the deposit, however, she
cannot deposit foreign currency notes/foreign traveler cheques
16.
The maximum period allowed
for FCNR deposits – three years
17.
Foreign citizen of Indian
origin is a Non Resident Indian – NRI
18.
Tier II capital should not exceed 100% of Tier I capital
19.
A letter of credit in which
the terms and conditions cannot be amended without the agreement of letter of
credit - opening bank, applicant and the
beneficiary is called – Irrevocable letter of credit
20.
Bill of lading is a document
signed by the Captain of the ship, acknowledging
of receipt of goods on boarding the vessel for shipment
21.
Trade Related Intellectual
Property Rights (TRIPS) and Trade
Related Investment Measures (TRIMPS) are associated with – Dunkal Proposal
22.
The import licences are issued by DGFT
23.
Montreal Protocol relates to
Protection of ozone layer
24.
The term – holder – refers to the person who is in possession
of the instrument legally and entitled to possess the instrument in his own
name and recover the amount thereunder
25.
An executor of a will has
expressed his inability to accept the responsibility. On reference to the
Court, a person is appointed to look after the affairs. The person is called Administrator
26.
Recovery certificate issued
by the president of Debt Recovery Tribunal is routed through Recovery Officer
27.
If the bank fails to
register the hypothecation charge on the Current assets of a company within 60
days of creation of the charge, the
matter has to be referred to – Company Law Board
28.
A guarantee was issued on
behalf of Rohit by exercising a lien on the Fixed Deposit Receipt of Rohit.
Bank is informed about the death of Rohit. A garnishee order is received
attaching the deposit of Rohit. The bank
will attach subject to bank’s right of set off against any debts owed by Rohit
29.
A loan has been granted to
Rahul against the security of his Fixed Deposit Receipt – FDR, with the branch.
Subsequently, a Court attachment order is received on the deposit. The branch
after adjusting the dues/outstanding towards the bank has to pay the balance amount to the court
30. Registration of charge is not necessary when the company has been
granted loan facility against the
security of Fixed deposit
31.
The bank receives garnishee
order. The relationship between the
banker and customer in this case is debtor /creditor
32.
The bank due to oversight pays a forged cheque and the bank is liable
to drawer
33.
The bank while disbursing
the loan did not stamp the promissory note for the appropriate value. The options for the bank is that unstamped/understamped
promissory note cannot be rectified
34.
A minor aged 15 years comes
to your branch for payment of a cheque for Rs. 27000/-. The signature of the drawer
tallies with your record. As a desk
officer, can you make the payment ? – Yes,
the minor cannot be denied taking
payment
35.
As per the amendment of the
Negotiable Amendment Act in December, 2002, the time period available to the holder of a cheque to give notice of
dishonour to the drawer is 30 days
36.
As per the Negotiable
Instruments Act, the notice period by
the holder to the drawer under Section 138 is 15 days
37.
Kelkar Committee has
suggested that tax incentives for
housing loans be withdrawn as part of
the overall revamp of tax policy
38.
In case of a garnishee
order, where the partner of a firm is a judgment debtor, only his personal account can be attached and not the firm’s account.
39.
The following statements are
true in connection with the right of set-off with regard to bank – It is the bank’s discretion to exercise
right to set-off and the whole bank constitutes one entity and it is applicable
when the banker- customer relationship is that of debtor-creditor
40.
When a bill is drawn in a
set of three and third is presented for payment – it can be paid
41.
The provision requirement
for substandard assets – 10% of net book
value
42.
Claused bill of lading is
one which narrates the effective
condition of the merchandise or one packing or both
43.
A NRI can maintain – Non Resident External Account, Non Resident
Fixed deposit account, FCNR account and Non Resident Ordinary account
44. Composite cash credit system with liquidity for agriculture has been
introduced on the recommendations R V
Gupta Committee
45. Rohit Mehta (apparent age-14) presents a cheque drawn by his father Amit
Mehta for payment – it can be paid as the minor is not made liable in this
transaction
46.
Certificate of noting issued
by Notary Public is known as Protest
47.
Break-even-Point is a point where the total costs equal total revenues
48.
A police inspector informs
you that Thomas is facing a charge of cheating and is involved in illegal
export of persons abroad. He produces a letter signed by the station-in-charge
demanding that details of the account of Thomas facing charge of cheating be
disclosed. How will you handle the situation ? – As the inspector has produced an authorization letter we will allow him
to inspect the books
49.
If debt service coverage
ratio is 2, it means – loan repayment
can be easily made by the borrower
50.
A minor attains majority on completion of 18 years
51. “Bank does not recognize trusts” – it
means that in the absence of any specific information, deposit accounts will be presumed to be the
property of the accountholder
52.
Financial assistance for the
activity, which is not considered indirect finance to agriculture is – Agro clinics
53.
Executor is a person named in the “Will” to manage the properties of the deceased
54.
Holder does not get
protection, if endorsement is forged
55.
If on any cheque, bearer or
order has not been written then it will be treated as – an order cheque
56.
Mumtaz endorsed a cheque in
favour of Dara Singh with the condition – “Pay to after death of Rohan Kapur”,
but received the payment without fulfilling the condition. In this case from
whom can Mumtaz recover the amount – From
Dara Singh
57.
Abhinav is the holder of a
cheque who endorses sans recourse to Thomas and Thomas to Raman and Raman to Divya who endorses it to Selvi. The cheque is dishonoured – Selvi can claim the amount from Thomas, Raman and
Divya
58.
Account Payee crossing is addressed to collecting banker
59.
Minor wants to overdraw in
his account and you will not grant it
because the contract with a minor is void abinitio
60.
The maximum number of
members in a Private Limited Company, should not exceed – 50
61.
A Hindu Undivided Family is
managed by – the karta
62.
Garnishee order attaches – balances available at the time of serving
the order to bank
63.
Consideration for a contract
of guarantee shall be Consideration
received by the debtor
64.
A company has been
sanctioned overdraft limit of Rs. 150000.00 against pledge of shares and in this case, registration of charge is not necessary
65.
Simple mortgage is one which
undertakes a personal obligation to pay
the mortgage debt and passing the right of sale of the said property through
court
66.
In an ongoing situation, the
right of set-off can be exercised by a banker – by serving a reasonable notice on the customer
67.
Ombudsman scheme is framed
under Section 35 A of banking regulation act
68.
In case a borrower signs the
documents with the left hand – a
separate note stating that the documents signed with left hand is kept with the
documents
69.
Joint and several demand
promissory note should not be obtained
in the case of advance to – a limited
company
70.
In the case of bank
documents the following category of stamps are affixed – non judicial
71.
An export bill for US $
10000 drawn under letter of credit is negotiated by your bank and is submitted
to the LC issuing bank for reimbursement
and you are informed that the documents negotiated by your branch are
forged. Negotiating bank is not liable as the bank is not liable for
genuineness of the documents
72.
Original demand draft is
reported lost by the payee and in the meanwhile the draft is presented in the
clearing – draft will be returned with
the reason ‘Reported lost by payee and drawer’s instructions awaited”
73.
Official Language (OL) rules
1976 is not applicable to Tamilnadu
State
74.
If a person dies intestate,
the court will issue the following documents – letter of administration
75.
Import licenses are issued for CIF value
76.
Documents requiring stamping
in terms of Indian Stamp act should be
stamped before execution or at the time of execution
77.
Kisan Credit card system has
been introduced with effect from August 19, 1999 to take care of credit needs
of the agriculture on the
recommendations of R V Gupta Committee
78.
The domestic inquiry
relating to misconduct of an employee is governed by Industrial Disputes Act
79.
Meaning of term – liquid
surplus – in relation to the interpretation of the balance sheet – it represents excess of current assets over
current liability
80. For disposing of the balances of the deceased customer dying without
will or nomination - letter of administration is required
81.
Guarantees, confirmation of
letter of credits issued by foreign banks, performance bonds, bid bonds,
warranties are non fund exposures
82.
Clean bill of lading - which
bears no super imposed clause or notation which expressly declares the defective
condition of the goods and or packaging
83.
Free carrier allowance means
– seller fulfils his obligation to
deliver the goods when he has handed over the goods meant for export into the charge
of the carrier named by the buyer
84.
Foreign Currency, which has
a tendency of quick migration is called – hot
currency
85. Current Ratio – denotes the
liquidity of the firm
86.
RBI has allowed authorized
dealer the authority of opening of temporary foreign currency accounts for
organizers of international seminars, conferences, conventions etc, who have already obtained the prior
approval of the concerned administrative machinery of the government
87.
The exchange rate to be
applied for effecting remittance of an import bill is – bill selling rate or forward sale contract if already booked
88.
The negotiating bank has
negotiated the documents under letter of credit and made payment to the
beneficiary. The issuing bank refuses reimbursement to the negotiating bank
saying the documents are forged – in
this case negotiating bank is not liable, since the bank has acted in good
faith and the documents are apparently in order
89. In India, Trade Control comes
under the direct control of Ministry of Commerce
90. In INCOTERMS, the term FAS represents – Free alongside the ship
91.
UCDPC is prescribed by ICC, Paris
92. The first committee on mechanization and computerization in banking was
headed by Dr. C. Rengarajan
93. The committee on Institutional Credit to SSI Sector and related
aspects (Annual Projected Turnover
Method) was headed by – P R Nayak
94.
The bill is drawn in Mumbai
and is acceptable/payable in New York and the drawee is at New York. The bill is inland bill
95.
In Camels rating – C stands for Credit worthiness
96.
Asset Reconstruction Company
has been set up by the Government to recover the non performing assets – NPAs of weak banks
97.
Under “Narrow Banking” the financial institutions can invest only
in Government securities and not undertake loans and advances
98. Margin of safety means – excess
of total sales over break-even point in terms of sales
99.
Advance for pisciculture is
granted under “agriculture” segment.
100.
Noting and protesting is not
applicable to foreign bill – noting and
protesting is applicable to promissory notes, bills of exchanges and cheques
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