RAPID
READING EXERCISE – PART:: 06
01.
When the remission on stamp
duty of a bill is available ? – When a
bill represents genuine trade transaction and when the usance period of bill is
not more than three months and when the bill is routed through banking channel
02. Endorsement is a signature of the maker or holder for the purpose of negotiation
03.
A Government promissory note
is a negotiable instrument as per custom
and usages
04.
A cheque is drawn for Rs.
50000.00 and the payee endorses Rs. 5000.00 in favour of Madhumita. Madhumita
can claim from the bank - no amount because parallel endorsement is
invalid
05. An undated cheque is – not
considered invalid or considered valid
06.
The function of Central
Processing Unit – CPU is to read,
interpret and process the information and instructions
07.
On which one of the
following securities, banker has a right of general lien – securities remaining in his possession after the loan was adjusted
08.
Certificate of incorporation
– provides conclusive proof that all the
formalities regarding the formation has been fulfilled by the promoters
09.
The following factors are to
be examined while reviewing the Cash Credit Accounts – whether the borrower is passing
the entire business to the bank; whether prescribed margins are being
maintained and whether there is an active turnover both in the account as well
as in the stock offered as security
10.
The following statements are
true in respect of Allied agricultural advances – Interest is to be charged on compounded half yearly basis in
September/March each year and no penal interest should be charged for loans
upto Rs. 25000.00
11.
Higher debtor turnover ratio
means – problems in collection of debts
12. Cash loss means – net loss before
charging depreciation
13.
Nomination facility is
available on deposit accounts opened by individuals
14.
Crossing of cheque denotes
that – it should be paid to banker only
15.
Negotiable instruments act
had permitted the following – electronics
cheques; truncated cheques; digital signatures and application of Information
Technology Act
16.
M/s Problem and company are
maintaining a current account with your branch. A cheque for Rs. 25000.00 drawn by them is presented through clearing
which is duly passed and debited to their account. Subsequently, payment of the
cheque is countermanded by the drawer the same day before the time of return of
clearing cheques. What decision will you take in this situation ? – The drawer can stop payment before the
expiry of time for returning unpaid cheques as per clearing house rules
17.
If a minor is admitted in a
firm for the benefits of a partnership, the
bank will open the current account
18.
On retirement of a partner,
if the account is in credit balance – the
firm continues and the branch must ensure that notices of retirement is
obtained not only from the continuing partners but also from the retiring
partners and then delete the retiring partner’s name
19.
While opening the account in
the name of the Public Limited Company, the bank should obtain along with
account opening form – the memorandum
and articles of association; the board resolution to open the account with the
bank and the certificate of incorporation
20.
A Hindu undivided family
consists of all persons -lineally
descended from a common ancestor
21.
When court issues garnishee
order, the bank is known as – garnishee
22.
Raman and Joseph go to a
shop. Raman says to the shop keeper “Let Joseph” have the goods, and if he does
not pay, I will pay – Raman is liable
only if Joseph fails to pay
23.
Purchase of plant and
machinery – uses of funds
24. Banking Ombudsman is appointed by RBI under Banking Regulation Act
25.
The currency chest
maintained by a nationalized bank is in the capacity of – principal and agent
26. A and B maintain a fixed deposit account with a locker and want to make
nomination for both the accounts – nomination
can be made in both the accounts
27.
Out of Sen award, Desai
award, Shastri award and bipartite settlements, Sen award is not applicable to award staff
28.
According to Rule 5 of
Official Language Rules – reply of Hindi
letters should be given in Hindi only
29.
As per limitation act,
period of limitation for repayment of deposits by bank is – three years from demand
30.
Back to back letter of
credit means – issue of letter of credit
in domestic currency on the strength of foreign letter of credit
31. Which document will you call for in permitting removal of the contents
of the locker in case of death of locker hirer who has not nominated anyone – letter of administration
32.
A term deposit receipt was
originally issued in the name –Amit and Bhawana. Subsequently, Amit’s name was
deleted and Cumar’s name was added. Now, Bhawana has requested to delete his
name and include Divya’s name. What would you do ? – Not to accept as RBI directives prohibit such a change
33.
Which account is not
attachable by service of garnishee order ?- balance representing cheque sent in clearing, not yet cleared
34.
The Credit Guarantee Fund
scheme of SIDBI covers all fund based
credit facilities
35.
Country risk(s) is/are – political, economic, social and cultural
36.
Straight bill of lading is
where goods specified in the bill of lading are consigned to a named person
37.
Dunkel draft was – associated with Uruguay round
38. In our country, Exchange Control is under
the purview of Ministry of Finance
39.
TT buying rate is applied
for an inward remittance when our Nostro
account has already been credited
40. Import licence indicates – CIF
value of imports
41.
Under “FAS” terms – seller delivers the goods alongside the
ship, buyer to nominate carrier, pay the freight and provide export clearance
42.
If the letter of credit is
silent about the revocability, the letter of credit is considered as – irrevocable
43. In a balance sheet, the value of fixed assets – Rs 1 lakhs, value of non
current assets – Rs. 1 lakhs and value of total liabilities – Rs 4 lakhs. What is the value of current assets ? – Rs. 2 lakhs
44. If current ratio of an organization is very high but acid test ratio is
low, it indicates that the firm has – very
high stock level
45. Contingent liabilities are shown as footnote
to the balance sheet
46.
If a company issues bonus
shares, the net worth of the company – will
not undergo any change
47.
If a company issues rights
shares, the debt equity ratio will have
a change by improvement
48.
Cyper law relates to – law relating to electronic media and
telecommunications
49.
Nayak committee refers to advances made to small scale industry
50. The term loan instalments payable within twelve months is shown in the
balance sheet as – current liabilities
51.
Raman purchased a draft
favouring Krishnan, but has misplaced the draft in his office. Krishnan
approached you for issue of a duplicate demand draft furnishing good sureties.
What would you do ? – Duplicate draft
will be issued only to Raman (the purchaser) and not to Krishnan
52.
What will you do in case any
damaged/tampered parcel is received ? – open
delivery of the parcel will be asked for
53.
In the case of Hindu
Undivided family, the following is not true – In the case of joint family business every member born in the family
becomes a coparcener in the family business
54.
In the case of H U F, the
following are considered true – Joint
Hindu family is not dissolved by the death of coparcener; in the joint family
business only the manager of Karta has authority to incur debts; the karta
alone can operate the current account of Joint Hindu Family and any
representative appointed by the karta may also be permitted to operate the H U
F account
55.
Revenue stamp of what value
is to be affixed in respect of receipt for Rs. 500.00 ? – Nil
56.
Who can stop payment of a
cheque ? – the drawer
57.
A cheque is drawn “Pay
Ramkumar” without the words “or order” or “bearer”. Such an instrument is transferable and negotiable by the payee
58.
The reforms process in the
financial sector in India was on the basis of Narasimhan Committee recommendations
59.
Which of the following are
eligible for refinance from SIDBI ? – All
term loans and all working capital advances under single window scheme
60.
An attestation is required
in respect of which of the following documents ? – Mortgage deed
61. Net working capital means – current
assets minus current liabilities
62. Securitisation is related to recycling
of funds
63.
For making payment of a
fixed deposit of Rs. 5000.00 customer’s
discharge should be obtained on a revenue stamp of – Rs.1.00
64.
When can claim in respect of
a fixed deposit receipt become time barred ?
- the claim becomes time barred
three years after the date of presentation for payment by that depositor
65.
The following are not
negotiable instruments – a postal order;
life insurance policy; a share certificate; money order
66. Restrictive endorsement is one in which endorser restricts the negotiability in future
67. A cheque may be – ante-dated;
post-dated and undated
68.
Protection is available to
the collecting banker under section 131
of the Negotiable Instruments Act, 1881 in respect of – crossed cheques
69. When a cheque is crossed specially to more than one banker, the drawee
bank can pay the amount of the cheque to – the
bank who is acting as agent for collection
70.
Section 31 of RBI act 1934
specifically prohibits issue of promissory notes, bills of exchange and demand
drafts (other than cheques on a banker) payable to bearer on demand because – these instruments issued payable to bearer
on demand will virtually amount to currency notes and in India issue of currency is confined to RBI – the
central banker
71.
Section 85(1) of the
Negotiable Instruments Act, 1881 provides
protection to the paying banker in respect of – forged endorsement
72.
To open an account of a
partnership firm, the firm need not be
registered
73. On admission of a new partner in the firm with a credit balance, a new
partnership letter has to be obtained and operation
to be allowed in the account as per the new mandate
74.
A company is said to be
registered when it gets – certificate of
incorporation from the registrar of companies
75.
A Co-parcenor is – a minor male in the Hindu Family
76.
When a “Garnishee Nisi” is
served, the banker should stop operations in the judgment debtor’s account upto amount mentioned in the garnishee
order and allow the operations for balance amount
77.
A loan sanctioned to a minor
has been guaranteed by Zeeba. Minor fails to pay – should forego the loan as minor is not competent to contract and the
contract entered into with a minor is void
78.
Registration of mortgage is
compulsory- except mortgage by deposit by title deeds – if loan amount is Rs. 100.00 and more
79. A mortgage deed being executed is required to be attested by – two persons
80.
For execution of a decree,
the following cannot be attached – Personal
ornaments, which as per religious usage cannot be parted with by any women;
books of accounts; the wages of labourer and domestic servants and all monies
payable under the policy of insurance on the life of judgment debtor
81.
Banking Ombudsman scheme is
applicable to the business of – all
scheduled commercial banks including Regional Rural Banks
82.
The provisions
available in the Securitisation and
Reconstruction of Financial Assets and Enforcement of Security Interest act,
2002 to form the Securitisation Co. – No Securitisation Reconstruction Co shall
commence business without taking registration from Reserve Bank of India; Must
have the owned funds of not less than two crore rupees; directors of
Securitisation Co have adequate professional experience in matters related to
finance Securitisation and Reconstruction and that any of its directors has not been convicted of any offence
involving moral turpitude
83.
The reason for taking a
letter of continuity in a cash credit or overdraft account is to provide
continuity to demand promissory note within the overall limitation period of
three years and to make the document valid, irrespective of the account fluctuating between debit and credit
balances
84.
A document executed for loan
to a company – must be executed with the
company’s common seal; on behalf of the company and by the authorized official
85.
The stamp duty payable on an
instrument will be at the rate
prevailing at the place where the document is executed
86.
The bank sanctioned a loan
for Rs. 30 lakhs and for that mortgage deed was registered with the Registrar
of assurances. The stamp duty on the
mortgage deed is for fixed amount and advalorum
87. A foreign bank is one which has
been incorporated outside India
88.
A bank maintains a trust
account with Zutsi , a trustee and Yuman as beneficiary. Zutsi wants to make
nomination in the account – it cannot be
allowed because it is not individual’s account
89.
After the death of the accountholder
bank is bound to inform the nominee – if
for six months nominee does not turn-up in deposit account and if for three
months nominee does not turn-up in case of locker account
90.
Under which rule/act
parliamentary committee on official language has been constituted – Section 4 (1) of Official Language Act
91.
A person informs you about
loss of his fixed deposit receipt and requests you to issue a duplicate fixed
deposit. How will you handle the request ? – The bank will issue duplicate fixed deposit on the customer’s executing
the bank’s standard stamped letter of indemnity. A letter intimating lost and
request for issuing duplicate is taken. One or two acceptable sureties are also
taken, each good for the amount
92.
How is a foreign spouse of
NRI treated for the purpose of opening an NRI account ? – as a person of Indian origin
93.
What are the strengths of a
Self Help Group organization ? – promotion
of thrift and savings; practitioner of mutual help; propagation of voluntarism
and purveyor of development of credit
94.
What are the weaknesses of a
Self Help Organisation ? – Super Profit
orientation
95.
Which rate will be applied
while negotiating bills under letter of credit ? – Bills buying
96.
RBI has prohibited stapling
of currency notes by a directive issued under – Section 35A of Banking Regulation act
97.
Short Bill of lading - which
does not contain printed memorandum on reverse of detaining the term and
conditions of the contract of carriage
98.
A person resident in India
means a person who resided in India for a period of 182 days during the previous financial year
99. Overseas Banking Units can be established in – Special Economic Zones
100.A NRI wants premature encashment of FCNR before one year. The
interest rate will be paid as follows – No
interest is to be paid if the deposit has not run for minimum prescribed period
– i.e. one year
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