RAPID
READING EXERCISE – PART:: 04
01.
Prepaid expenses in the
shape of insurance premium are classified in the balance sheet as – current assets
02.
The borrowing powers of the
board of directors of the Public Limited Company should not exceed: Paid up capital and free reserves
03.
State sponsored corporation
granted loan for on-lending to weaker section is covered by the bank under – Indirect advance to agriculture
04.
Hypothecation has been
defined in Section 2(n) of Sarfaesi Act
05.
In a cheque drawn by the
drawer, the name of payee is written in English and the other parts in
vernacular language. The cheque will be
paid if it is otherwise in order
06.
Right of subrogation is – guarantor stepping into the shoes of the creditor
or discharging the liability of the principal borrower
07.
The objective of Government
Sponsored Swarna Jeyanthi Gram Swarojgar Yojana – SGSY is – to raise individuals/groups of rural poor
above the poverty line over a period of time
08.
Account payee crossing is not defined in any act including
Negotiable Instruments Act
09.
In computers, booting refers
to – Powering the computer and loading
in operating system
10.
On receipt of a forged Rs.
500 note, the note and the statement from the applicant would be sent to
the Police
11.
In case of wrongful
dishonour of cheque by the bank, the
bank is only liable to drawer as the
privity of contract is between bank and
the drawer who is the accountholder
12.
Under Section 148 of Indian
Contract Act, bailment refers to
delivery of goods from one person to another person for some purpose and when
the purpose will be over, goods will be returned or disposed off as per the
direction of the delivery - ie bailor
13.
Global Trust Bank was merged with Oriental Bank of Commerce
14.
The objective of Know Your
Customer guidelines are – Prevent banks
from being used unwittingly by criminal elements for transfer of illegal
funds/money laundering activities
15.
IRDA refers to Insurance
Regulatory and Development Authority , for
regulating the insurance sector
16.
Preferential payment to
depositors in respect of winding up of a banking company is provided under Section 43 A of Banking Regulation Act,
1949
17.
National Housing Bank is an apex Institution dealing with the
housing finance exclusively
18.
For declaration of dividend
by a bank, without reference to RBI the capital adequacy ratio should
be at least 11% for preceding two completed years and the accounting year for
which the bank proposes to declare dividend
19.
Interest in cash reserve
ratio is payable on Monthly basis at
3.5% eligible balances
20.
The keyboard, mouse, touch
pad are input devices in a computer
21.
The cooperative bank which
has changed its name to private bank is – DEVELOPMENT
CREDIT BANK.
22.
Exchange Control Department
is now called – Foreign Exchange
Department
23.
World elder’s day is
celebrated on 1st October
each year
24.
Current Ratio of 0.85
implies – negative net working capital
25.
Committee on legal aspects
of bank fraud is headed by Dr. N L Mitra
26.
The maximum extent of FDI in public sector bank is 26%
27.
A depositor who has opened
his recurring deposit account on 10th day of a month can
deposit his monthly installments on any
day during a month
28.
The risk weight for housing
loan been increased to – 75%
29.
Repo transaction refers to:
Inspection of the liquidity by RBI under
liquidity adjustment policy
30.
A 65 year old depositor
requests you not to deduct TDS at source. He
has to submit the request in Form: 15H
31.
NABCONS means – NABARD Consultancy Services
32.
Negative lien is a
declaration given by the company that
the assets given for creating charge is owned by it and there is no change of
any bank on it
33.
The formula for calculating
breakeven point in terms of units is – Fixed
Costs/Contribution
34.
Risk arising out of mismatch
in maturity payment in assets and liquidity is known as _ Liquidity Risk
35.
S.K. Tudeja Committee is
associated with: Sugar Industry
36.
The ceiling for referring
cases for recovery of Lok Adalat - Rs. 20 lakhs
37.
Cheque Truncation refers to
– A process in which a cheque is
truncated during the course of a clearing either by the clearing house or by
the bank whether paying or receiving payment immediately on generation of
electronic image for transmission substituting the cheque for further movement in writing
38.
CDR mechanism is applicable
in the case of borrowers having multiple
banking exposure of Rs. 20 crore and above.
39.
Matured but not paid term
deposits are treated as – demand
liability
40.
While opening a current
deposit account of a Partnership firm, banks
generally insist for declaration of partnership in the prescribed form
41.
The relationship between
banker and customer in the case of Safe Deposit Vault transaction is that of – LESSOR/LESSEE
42.
One of the trustees of a
trust maintaining an account with your bank is adjudged as insolvent. A cheque
signed by him was presented through clearing after you received the notice of
insolvency of the trustee. What will you do ? – The cheque can be paid safely
43.
Loss before charging
depreciation is known as – cash loss
44.
In a foreign exchange
transaction, a right but not the
obligation to buy or sell is called – option
45.
For technological upgradation
in banking system, which of the following committee has been set up ? - SAFAR
COMMITTEE
46.
A usance bill is accepted by
the attorney of the drawee. Subsequently, the drawee revokes the power of
attorney before the bill is due. What will you do in this case ? – It is deemed to be accepted by the drawee
and he is liable
47.
As per the RBI guidelines,
there should be how many working directors in a public sector bank ? – Two: Chairman and Managing Director and
Executive Director
48.
On receiving a notice of
death of Karta, the credit balance of HUF current account will be operated by the senior most coparcener
49.
Not negotiable crossing is a
caution to – endorsee
50.
M/s Impex Private Limited,
an exporter having a satisfactory current account approaches you and seeks your
guidance about an export order which he has received from USA for export of
garments. On scrutiny of the export order, you observe that there is a clause
that Letter of Credit will follow in due course. He enquires from you as to
which type of LC is safest from the point of view of exporter. .– Irrevocable letter of credit.
51.
Mr Taj Pratab Singh, a sole
proprietor of M/s Impex Private Limited – an exporter having a satisfactory
current account approaches you and seeks your guidance about an export order,
which he is negotiating with an importer from USA. He seeks guidance as to
which type of LC he should insist which will assure him that some preshipment
advance is made available at the
instance of importer – Red Clause Letter
of credit
52.
Deposit accounts which have
not been operated for more than 10 years are called – Unclaimed accounts
53.
Return of unclaimed deposits
is required to be submitted to RBI under which act – Section 26 of Banking Regulation Act.
54.
On scrutiny of a balance
sheet of M/s Techno Inc, you observe that the long term uses of funds are more
than long term sources. The position of the balance sheet indicates – Negative net working capital
55.
On scrutiny of a balance
sheet of M/s Thomas Inc. you observe that the short term uses of funds are more
than short term sources. The position of
the balance sheet indicates – positive net working capital
56.
Committee on Procedures and
Performances Audit and Public Services – CPPAPS is headed by – S. B. TARAPORE
57.
Mrs. Raja Rani, aged 80
years having a fixed deposit for Rs. 2 lakhs approaches you with the request to
add the name of his son so that he does not face any problem after her death. You observe that she has raised a
loan against the said FDR. How will you handle the request of the lady? – The lady will be advised that the request
can be accepted on adjustment of loan
58.
Your branch has disbursed a
term loan – documents executed by Master
Bobby to meet his education expenses, which was guaranteed by his father. The
loan account became irregular and despite repeated reminders, Bobby or his
father did not regularize the term loan account. The loan officer approaches
you for guidance regarding course of action, which the bank can undertake. –Loan cannot be recovered from the borrower
or the guarantor, as the contract with the minor is void.
59.
Master Vinay aged 16 years
has a term deposit of Rs. 10000.00 with your branch which is to mature after three years. He
approaches you with a request to either allow loan against the deposit or make
the pre-mature payment of term deposit. How will you handle the request of
Master Vinay ? – Loan will not be
allowed to the Master Vinay since he is minor, however, premature cancellation can be permitted.
60.
Mr Somnath maintaining a satisfactory current account
with you issues a cheque for Rs. 10000.00 in favour of the supplier - Mr. Samsung.
He endorses it in favour of Mr. Lever and he deposits the cheque in his bank for collection. The
cheque is presented in clearing at your branch but due to oversight, the cheque
is wrongfully dishonoured . Your branch receives a notice from Mr Lever for
wrongful dishonour and demands payment and also claims damages. How will you
handle the notice? – In the case of
wrongful dishonour of a cheque, the drawee
banker is liable for damages to the drawer only. As such Mr. Lever has no legal ground to serve the
notice to the bank and demand the
payment.
61.
The Narasimhan Committee
Recommendations include – Permitting
Regional Rural Banks for all types of banking business; rationalization of
foreign operations of all banks, giving authority to public sector banks for
recruitment of officers and setting up of asset reconstruction fund to take
over bad and doubtful debts of the banks
62.
Regional Rural Banks are
managed by – State Government
63.
Banks are required to
prepare balance sheet in the prescribed format as per – Section 29 of Banking Regulation act
64.
A minor not domicile in
India will attain majority – on
completion of the age as per the law of the place of the domicile
65.
As per Section 105 of
Negotiable Instruments Act, reasonable time is to be determined for presentment
for acceptance or payment of Negotiable Instruments while determining such
period – Public holidays and Sundays
will be excluded
66.
Bill of exchange will be
treated as dishonoured, when the drawee makes defaults in acceptance; where one of the drawee out of several
drawees does not accept the bill; where the drawee is incompetent to contract
and when the acceptance is qualified
67.
Negotiable Instrument
payable on demand must be presented within
a reasonable time
68.
The starting point of
limitation period on a bill of exchange payable on demand is – the date of the bill
69.
Bank obtained the agreement
of hypothecation on 1.1.2005 and upto what time, the bank can file a suit ? – 01.01.2008
70.
Sarfaesi Act, 2002 is not
applicable in the following cases – any
security interest not exceeding Rs. 1.00 lakh; any security interest in
agriculture land; pledge of movable as per Section 172 of Contract Act and Rights of unpaid seller under Section- 47 of
Sale goods act
71.
The members of debt recovery
tribunals are known as – public servants
72.
Validity Period of equitable
mortgage is – 12 years
73.
Accumulated losses are to be
classified as fictuary assets
74.
The repayment capacity of a
borrower for a term loan is calculated by – debt service coverage ratio
75.
Silviculture is known as cultivation of trees
76.
The gilt edged securities
are known as – government securities
77.
One basis point implies – 0.1%
78.
Export Bill if not paid on
due date will be crystalised on 30th
day after notional due date
79.
RAM stands for – Random Access Memory
80.
Demat stands for dematerialization and remat stands for rematerialisation
81.
The following are hedging
instruments – Futures; Interest Rate
futures; Currency future; Stock index futures
82.
At whose request, letter of credit
is opened by the bank ? – Buyer or
importer
83.
In which type of letter of
credit, apart from provision for allowing pre-shipment credit, issuing bank has
also to arrange for storage/farmhouse facility prior to shipment on board – Green Clause letter of credit
84.
Under the concept of
Offshore Banking Units, minimum capital for starting the operation provided by
the payment bank would be: US dollars – 10 million
85.
What is the target under
priority sector for Foreign Banks for SSI within the overall target of 32% ? - 10% of net bank credit
86.
Priority sector target for
Regional Rural Banks has been fixed at – 60%
87.
First annual general body
meeting must be called within a period of – 18 months after the date of incorporation of the company
88.
If annual general body
meeting is not called for by the company
within the prescribed period, each officer of the company shall be
punishable with a fine of Rs. 50000.00
89.
Networth of the company is
the sum total of paid up capital and free reserves. Free Reserves means all reserves created out of profits and write back
of depreciation provisions
90.
Holding Company means –the company which holds shares of another company of value of more than half value of
equity share capital
91.
If a company wants to change
its name the procedure to be followed – conduct
a special meeting of the general body and arrive a resolution and get approval
of Central Government
92.
Certificate for registration
of charge is issued by the Registrar of
companies under Section 132 of the companies act
93.
SARFAESI act 2002 contains the
provisions for filing the appeal before DRAT by the borrower for which he will
have to deposit – 50% of the claim
amount
94.
The drawee of the cheque
always is – the paying banker
95.
In terms of autonomy,
stronger banks mean – banks that have
made profits for last three consecutive years; having capital adequacy ratio of
9% or more; having net NPAs of less than 4% and having a minimum owned funds of
Rs. 300 crore
96.
Under autonomy package,
banks would be allowed to prescribe standards for categorization of branches; they will have the power to lay down the
educational standards for recruitments and promotions; it aims to remove the
fears among banks officials on their being haunted by the investigating
agencies on commercial decision taken in good faith and senior bank officials
are permitted to undertake foreign tours for business promotion
97.
A contract about Foreign
Trade Policy means – It is for a period of five years; along
with the main annual policy supplement
announced every year and board of trade is headed by an eminent business
person
98.
Current accounts are
permitted to be opened by executors,
administrators, liquidators and trustees also
99.
Current account can be
opened by any person or institution
100.Ration card should not be insisted by the bank for identification of the depositor as per KYC guidelines
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