RAPID READING
EXERCISE – PART:: 01
01. In the case of a bearer cheque, the identity is not necessary
02.
When an order cheque is
endorsed in blank, it becomes payable to bearer and transferable by mere delivery
03.
A cheque crossed “Not
Negotiable”, is still transferable
04.
As per section 138 of
Negotiable Instruments Act, there is a provision of penalty when the
cheque issued in discharge of a
liability is dishonoured due to
insufficient funds in the account and if
the cheque has been presented to the bank within a period of six months and is
not honoured due to insufficient funds
05. A fixed deposit receipt cannot be
endorsed
06.
A cheque is presented in an
account but there is no sufficient balance to meet the same. The cheque will be returned with the
remarks – insufficient funds
07.
The cheque on behalf of a
partnership firm can be stopped for
payment by any partner whether authorized to operate the account or not
08.
The marginal farmer is one who possesses agriculture land upto 1.25
acres of irrigated or 2.5 acres of non-irrigated land
09.
Registration of charge is
not required in the case of pledge,
lien, set-ff and appropriation
10.
Loans for construction of
godown for own use of farmers is not
part of indirect finance to agriculture
11.
Olericulture is cultivation of vegetables
12.
Agriculture labourer is a
labourer whose income from agriculture
is more than 50%
13.
Nostro account is an account of Indian Bank with a Foreign
Bank in foreign currency
14. Resident Foreign Currency (RFC) account
scheme is available for Home Returned NRI
15.
Under packing credit limit, the extent of finance is computed on the
basis of FOB
16.
Forfaiting refers to discounting of export bill without
recourse to the seller
17.
In an overdraft account,
when the death notice of partner is received the bank should stop the operations to avoid application of Clayton’s
case
18.
A company is not dissolved
by lunacy of a director or bankruptcy of
a director or death of a director
19.
In case of insolvency, the banker’s obligation to honour customer
cheques comes to an end when the customer is adjudged insolvent
20.
A lien is the right to retain goods or securities belonging to a
debtor until he has discharged a debt due to the retainer thereof
21.
The shareholders of a
Private Limited Co cannot transfer the
shares to other public
22.
The rule in Clayton’s case
applies in the case of running accounts
having debit balances
23.
The term banking has been
defined by Banking Regulation act – 1949
24.
Bills drawn in respect of
goods delivered by parties to various
Government/Semi Government departments are known as supply bills
25.
Goiporia committee has made
the recommendation – Commencement of
employee working hours should be 15 minutes before commencement of business
hours
26.
Banking companies are
registered under – Banking Regulation
act
27.
Bipartite settlements are
registered under Industrial Disputes Act
28.
Financial products, whose
prices are derived from the price of the underlying currency, interest rate,
stocks etc are called – securitization
29.
Revaluation reserves is a part of subsidiary capital/tier II
capital
30.
Y V Reddy – committee had revised the concept of liquidity and monetary aggregates
31. Verma Committee was appointed to examine the restructuring of weak banks
32. The process through which any member-owned organization becomes a
shareholder-owned company is called
demutualization
33.
Official Language deals with
the following articles of constitution – 343
to 351
34.
Hindi was declared as the
official language of the union on 14-09-1949
35.
The system of electronic
funds transfer was suggested by the committee headed by – B D Shah
36.
INFINET is – RBI’s
VSAT based communication system
37.
The negotiable instruments
act is applicable in the entire part of
the country
38.
If the cheque is drawn in
favour of “Mother God” or order, the
cheque is to be returned since drawn on fictitious name
39.
A cheque payable to Rohit is
endorsed as follows – Pay to “Kabil on
his marriage”. This endorsement is conditional endorsement
40. The cheque crossed – account payee drawn in favour of Mr Brij Nand is
presented by Ramana Nand in his account and in this case the bank should not make the payment
41.
The following are not
negotiable instruments – airway bill, a
currency note, a letter of credit and lorry receipt
42.
Under section 25 of
Negotiable Instruments Act, public holidays are declared by – the state government by notification in the
official gazette
43.
Conversion means – not crediting the amount in the account of
true owner
44.
By “General Crossing” we
mean two transverse parallel lines on a
cheque
45.
Forward exchange contract is
an agreement where the foreign exchange
is delivered at predetermined future date at a contracted date
46.
Unless otherwise specified
in the letter of credit, the insurance
amount should be expressed in the currency of the letter of credit
47.
On the death of the partner,
bank opens a new account to rule-of the
existing account to avoid application of Clayton’s case
48.
Executor – in banking means
a person named by the deceased in his
will and for which probate is obtained
49.
The partnership firm doing
the banking business cannot have more than 10 partners, and other business not
more than 20 partners otherwise it will become illegal association. It is provided in Companies act
50. Prospectus is an invitation to the public to subscribe shares or debentures or deposits
51.
According to the rule in
Clayton’s case, the money paid in by a customer are to be applied towards
adjustment in overdraft account in order
of time in which the debits were incurred
52.
Banking company is
prohibited for undertaking business like trading of goods etc under – Banking Regulation act
53.
For availing remedy under
section 138 of Negotiable Instruments act, the
holder will have to give notice to the drawer within 30 days of return of
cheque
54.
When a firm has branches at
different places and wishes to avail the loan at all stations, the documents will be executed at its Head
Office and sub limits will be allocated to branches at different places
55.
In case of any doubt about
stamp duty, clarification can be sought
from State Stamp Authority and Controller of stamp duty
56.
Banks were nationalized
under – Banking Company (Acquisition and
transfer of undertaking) act-1970
57.
When an account shows debit
balance, the banker is a creditor and
when the account shows credit balance, the banker is the debtor
58.
Partnership firms cannot do
the business of banking and it is
provided under the banking regulation act
59.
The concept of authorized
deduction and illegal deduction is mentioned in the act – Payment of wages act
60.
The process of replacing
paper securities into electronic holding of shares is known as – dematerialization
61.
Official Language policy came
into force from 16.01.1950
62.
The Central Processing Unit
– CPU- consists of control unit and
arithmetic logic unit
63.
When the price of dollar is
raised from Rs. 48 to Rs. 55 the
exporter will be benefited in terms of rupee
64.
A cheque is the mandate of the accountholder
65.
When a cheque without a date
is presented for payment, the banker
should return the cheque
66.
In a cheque the name of the
banker had been written with or without the words – “Not negotiable” – In this case, it is called as a special crossing
67.
For negotiating a negotiable
instrument there are no limits
68.
A bearer cheque is
transferable only by delivery
69.
A bill drawn in Paris and
drawn in favour of a trader in Mumbai and payable in Chennai is called a foreign bill
70.
The Negotiable Instruments
Act provides protection to the collecting banker in respect of Conversion
71.
Crossing of a cheque denotes
that it should be paid to a banker only
72.
By noting, it is
meant that the fact of dishonour has been recorded by the notary public on a
dishonoured bill or/and on a plain paper attached to the bill
73.
Sericulture is classified
under – direct agriculture advance
74.
Mahima relates to refinance
by NABARD to banks for onlending to agencies for marketing of non farm products
of rural women
75.
Foreign exchange
transactions are viewed always from the
angle of the bank
76.
The responsibility of
managing the foreign exchange resources lies with – Reserve Bank of India
77.
Exim policy is announced by
the Ministry of Commerce
78. In a Free on Board contract, freight
and insurance will be borne by the importer
79. If a letter of credit is slient about the revocability, then the letter of credit is irrevocable
80.
Crystalisation of sight
export bills purchased/negotiated will be done on the expiry of transit period plus 30 days
81.
A transferable letter of
credit can be transferred only once
82.
Natural guardian under Hindu
Minority and guardianship act, 1956 will be – his father and after him the mother
83.
For banking transactions, an
administrator is one who is appointed by the court if the deceased has died intestate
84.
Banker’s lien is an implied pledge
85.
A contract of insurance is a contract of indemnity
86.
Acceptance of a usance bill will be made on the face of the bill
87.
The right of set-off can be
exercised by the banker only when the
relationship between the customer and the banker is that of debtor and creditor
88.
Bank must create reserve
fund and 25% of the profits should be transferred to this fund before any
dividend is declared is contained in Banking
Regulation act
89. Limitation period for availing the remedy under Section 138 of
Negotiable Instruments Act is one month
from the date of cause of action
90.
In case the amount of loan
to a company is decreased or increased, the
memorandum of modification or charge is submitted to the Registrar of companies
91.
The rate of revenue stamp is
the same throughout India except in
Jammu and Kashmir
92.
When articles are kept in
safe custody, the relationship between banker and customer is that of bailee
and bailor
93.
In the case of minor’s joint
account with the guardian and when the minor attains majority, the guardian should not be allowed to
operate the account
94.
Wages of employees are
settled under Minimum wages act
95.
CB Bhave committee has
looked into ways to reduce cost of demat operations and the said companies should bear a substantial part of dematerialization
costs
96.
Basle committee relates to Capital Adequacy
97.
In Camel’s rating – E stands for earnings
98.
The revised definition of a sick
SSI unit has been given by Kohli
committee
99.
Greenshoe option is retaining the full/part of equity
subscribed by investing public over and above that issued
100.Hindi is accepted as an official language of the union under Devanagiri script
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