Material 2008 B

SURE SUCCESS QUESTIONS An ebook on Bank Promotion Tests and Interviews (Updated upto July 2008) Test Papers with Multiple Choice and Objective Type Questions & Memory based question asked in promotion tests of different banks

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TEST I 1. A large company is sanctioned credit facilities under consortium and the banks want to take action under SARFAESI Act: a. 60% of the banks by no. should agree b. 75% of the banks by no. should agree c. (a) and (b) both the conditions should be satisfied. d. only condition (a) should be satisfied. 2. Banks that have floated special deposit schemes with ______and other features advised to immediately discontinue the schemes and report compliance to RBI. a. lock -in Periods b. Differential interest c. Insurances attached d. All of the above 3. In the Union Budget for 2008-09, the fiscal deficit is proposed at ___ % of the gross domestic product. a. 2.5% b .3.0% c. 3.5% d. 4.0% 4. The aggregate ceiling for overseas investment by registered Mutual funds stands enhanced to_____, a. USD 5 billion b. USD 4 million c. USD 6 million d. MFs can not invest Overseas anymore 5. In the Union Budget for 2008-09, the revenue deficit is proposed at ___ % of the gross domestic product: a. 1.5% b . 1.0% c.0.5% d. nil 6. RBI has advised Banks to provide a complaint form along with the name of the nodal officer for complaint Redressal, ________to facilitate submission of complaints by customers. a. On the home page of their website b. On the home page of RBI website c. On the homepage of IBA website d. All of the above 7. National Rural Employment Guarantee Scheme is proposed to be extended to all the ___ districts in India wef ___: a. 487, 31.3.2008 b. 504, 31.3.2008 c.552, 1.4.2008 d. 596, 1.4.2008 8. RBI has set up a Committee on Customer Services to look into customer services provided by RBI directly or through banks / institutions headed by ________: a. H. Prabhakar Rao b. AVRajwade c. Vepa Kameshwara Rao d. S.C Gupta 9. In the Union Budget for 2008-09, the Govt. proposes to withdraw which of the following: a. TDS provisions wef 1.6.2008 b. BCTT provisions wef 1.6.2008 c. BCTT provisions wef 1.4.2009 d. TDS provision wef 1.4.2009 10. RBI announced guidelines for "Door Step Banking". The latest amendment provides for _______at the Door step of both Corporate and individual customers. a. Delivery of cash b. Collecting Safe custody articles c. Personal Assistance service d. All of the above 11. Which one of the following is not true about the "MEZZANINE FINANCING"? a. It is a form of Debt capital. b. It places itself below the debts and above the equity of the financing company. c. Mezzanine financing offers a way for the companies to obtain finance without ceding ownership of their company. d. Financers generally look for lower IRR compared to equity investor and generally not secured by a property charge. e. None of the above. 12. Which one of the following is not true about the term "CARBON CREDITS"? a. A Carbon credit gives the owner the right to emit app one tonne of carbon dioxide. b. Carbon credits are a tradeable permit scheme and can be exchanged between businesses having short of quotas or below the quotas. c. These can be bought and sold in international/national market at the Govt. controlled prices. d. The need arises because International treaties such as Kyoto Protocol set quotas on the amount of green house gases that those countries can produce. e. All the above are true.

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13. Which one of the following best represents the term "LEVERAGED BUYOUT"? a. A leveraged buyout occurs when a financial sponsor gains control of a majority of a target company's equity through the use of Private equity. b. A leveraged buyout occurs when a financial sponsor gains control of a majority of a target. company's equity through the use of borrowed money or debt. c. A leveraged buyout occurs when a financial sponsor gains control of a majority of a target company's equity through the use of Equity capital only. d. A leveraged buyout occurs when a financial sponsor gains control of a majority of a target company's equity through the use of a mix of Equity capital and Debt Capital. e. All the above are true. 14. Maximum FDI investment in Banks in India is allowed_____? a. 74% b. 26% c. 50% d. 49% e. None of the above. 15. Which one of the following best explains the term E-Governance in banking sector? a. Banking System that is taking care of its customers, staff, shareholders etc to ensure best practices in banking. b. A Banking system that is fully automated to be governed electronically by the Govt with the sole objective to establish best practices for Anti Money Laundering activities. c. A Banking system that is fully automated and transparent to all where there is no scope of secrecy of bank customers to check benami transactions and black money. d. Total connectivity of Information System of various banks, RBI etc with latest telecommunication modes controlled with state of art security architecture/tools etc to ensure fidelity of information: e. None of the above is true. 16.In the balance sheet of a bank, the guarantee is shown as contingent liability by recording it as : a. a contingent liability b. A contra-item i.e. endorsements and acceptances c. footnotes d. not reflected in the balance sheet 17. A person returns from a foreign trip and has some unspent foreign exchange. He can retain it if the amount is up to : a. $ 2000 b. $10000 c. $ 5000 if currency notes and $10000 if travellers cheques d. cannot retain. It has to be surrendered 18. Electronic image of the cheque prepared by a collecting bank and having ____ possession of the paper cheque is called ___ cheque. a. electronic, electronic b. electronic, truncated c. physical, truncated d. truncated, electronic 19.A trust has approached the bank for sanction of loan. What will be the procedure for availing the loan : a. Loan cannot be given even if the Trust Deed provides for that. b. Loan can be given only if the Trust Deed provides for that. c. Loan can be given only if the Trustee pass a resolution for that. d. Loan can be given only if the Trustees are ready to give their personal guarantee 20. The target for women within SGSY advances is ___ and for women self help group____: a. 40%, 40% b. 50%, 50% c. 50%, 40% d. 40%, 50% 21. Biometric Security is based on biological characters viz. a. finger prints and palm recognition b. face recognition recognition c. handwriting and manual signature recognition d.(a & b only)

and

voice

22. What is the service fee under Credit Guarantee Fund for MSE : a. 1.5% of sanctioned amount b. 1.5% of outstanding amount c. 0.75% of sanctioned amount d. 0.75% of outstanding amount 23. In India, the Cyber Law is called a. Computer Misuse Act b. Information Technology Act c. Computer related Offences Act d. Fraudulent Access to Computers Act

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24.What time is available to the customer to lodge complaint with Ombudsman : (a) 1 year from receipt of reply with which customer is not satisfied (b) 1 year where reply not received by the customer for one month (c) 1 year from date of lodging the complaint with the bank a. a to c all correct b. a and c only correct c. b and c only correct d. a and b only correct 25. For Security SFMS depends on a. Lock & Key b. Digital Signatures

c. Normal Signature

d. Identity cards.

26. Restrictions on access to a computer system by the unauthorised persons is through: a. networking technology b. Firewall technology c. virus technology d. all the above 27. Which one of the following has been adopted by Banks as a strategy in case of net banking? a. Discriminatory Pricing, b. Dumping, c. Marketing Penetrating Pricing, d. Promotional Pricing, e. All the above. 28. Amount up to which no collateral security is to be taken for Educational loans as per RBI guidelines is_________: a. Rs 4 lacs b. Rs. 7.50 lacs c. Rs 15 lacs d. Rs 150,000 29. A decision has been given by an Ombudsman and the customer has given his consent for acceptance of the same. Within how many days the decision has to be implemented by the bank: a. 30 days from the date of award b. 30 days from the date of acceptance customer c. 60 days from the date of award c. 60 days from the date of acceptance customer e. none of these 30. Crew/ pilots of India based Airlines I Indian shipping companies getting daily allowances in Forex during their flights / cruise abroad can credit it to their: a. NRE account b. NRO account c. EEFC account d. RFC(D) Account 31. The date for implementation of Basel II for those banks who have branches abroad or foreign banks having branches in India is________? a. 31.03.08 b. 31.03.09 c. 31.3.2010 d. 31.3.2011 e. None of these 32. TDS to be deducted from interest paid on the NRO SB/ Term deposit accounts is: a. 30% b. 33% c. 30% + 10% surcharge if tax amount exceed Rs. 8,50,000. d. No. tax deduction at all 33. RBI gives refinance against Export credit for a maximum period of_______? a. 6 months b. 12months c. 3 months d. 9 months e. 45 days 34. In case of loans to a party, the Long term liabilities are compared to Long term Assets / Net Worth by the Bank in the B/Sheet of the party, to see_____? a. Liquidity position of the company b. Capability of repayment of long term liabilities by the long term assets . c. WC requirement d. DSCR. e. None of the above. 35. Interest subvention of_______% is allowed to commercial banks in case of advances to farmers upto Rs_____provided the interest charged is 7%? a. 2 and 3 lacs b. 1 and 5 lacs c. 2 and 5 lacs d. 1 and 3 lacs e. None of these 36. As per Nomination guidelines under Sec. 45 ZA for deposit a/cs, only one nomination per a/c is permitted, even if it is joint a/c. Who among the following can be nominated, under the provision ____? a. A Firm b. A Joint Stock Co. c. NRI d. HUF e. None of the above 37. In our bank, the penalty for late deposit of installment is Rs. 2.00 per hundred. The penalty can be waived if_______________? a. The customer is valuable b. He promises to deposit large amount in FDR c. He deposits equal no. of instalments in advance. d. We can charge half the penality if he is a good customer. e. None of these. 4


38. Normally a FDR under NRE scheme is not permitted beyond 3 years. However banks can allow beyond 3 years. but with the condition that interest on it will not be more than the rate applicable for a period of_______? a. 1 year b. 2 years c. 3 years d.3 to 5 years . e. No interest can be paid beyond 3 yrs. 39. Under the CDR system, if a suit filed account is to restructured, the consent of creditors is required having : a. 75% share by value and 60% by number of banks. b.75% share by value and 75% by number of banks. c. 60% share by value and 60% by number of banks. d. 60% share by value and 75% by number of banks. 40. BGs/LCs issued by the bank are shown as part of their _____in the B/Sheet. a. Other Liabilities b. Current Liabilities c. Loans d. Contra item e. Contingent Liabilities-as footnote. ANSWERS 1 B 8 A 15 D 22 C 29 B 36 C 2 9 16 23 30 37 A C B B D E 3 10 17 24 31 38 A A A D A C 4 11 18 25 32 39 A E C B C A 5 12 19 26 33 40 B C B B A E 6 13 20 27 34 A B D A B 7 14 21 28 35 D A D B A

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TEST II 1. Recently RBI permitted Special concession to the Exporters of certain categories and advised banks to charge intt. @ ______% a. BPLR-1.00 b. BPLR-2.00 c. BPLR-2.50 d. BPLR6.50 % 2. What are the new baskets under the period 1-14 days under ALM. a. 0;1-7; 8-14 b. Next day;2-7; 8-14 c. Next day;2-5; 6-14 day;2-10; 11-14

d.

Next

3. CTR- monthly reporting to FIU-IND by the Corporate office with in ________Days. a. 10 b. 15 c. 20 d. month end 4. Recently, Banks were advised to strengthen branch level Customer committees by involving____: a. Senior citizen Customers b. women c. Minority Community members d. All of the above. 5. For setting up of Agri-clinic the amount of subsidy is permitted @_____% for Gen category and @ _____% for SC/ST. a. 25:25 b. 25:30 c. 20:25 d. 25:33.33. 6. National Do Not Call Registry has been now launched, Banks are advised by RBI to ensure that all _______ engaged in Telemarketing by them, register themselves with DoT as telemarketers at the earliest. a. Direct selling agents b. Direct Marketing Agents c. Staff members d. a & b 7. As per guidelines issued by the RBI, ____% discount on the Revaluation Price is to be applied before these are shown as part of ______ of the capital for CRAR purposes. a. 55: Tier-1 b. 55: Tier-II c. 45: Tier-1 d. 45-Tier-II 8. What is the latest guideline from RBI about Savings accounts? a. Customers should be issued with passbooks b. If they are willing to receive statements, Monthly statements should be sent c. Name and Address of the Bank should be clearly mentioned in the passbooks

d. All of the above

9. Which one of the following. truly explains the Gresham's Law in Economics? a. Bad money drives out good money b. Good money drives out bad money c. Inflation leads to Black money d. Deflation drives out black moneye. None of the above. 10. At present what type of Risk approach is being implemented by the banks as regards to Credit and operational Risk. a. Standardized & Basic Indicator Approach b. RBIA c. Adv. RBIA d. None of these 11. In order to encourage a formal channel of communication between customers and banks at the branch level, which one of the following is not true with regard to RBI's latest guidelines. a. Banks should include customers in the Branch Level Customer Service Committee (BLCSC). b. As Sr. Citizen usually form an important constituency in banks, a Sr Citizen should also be included in the committee. c. The BLCSC should give quarterly report giving input/suggestions to Standing Committee on Customer Service. d. The BLCSC should meet at least once in a month. e. None of the above. 12. The financial instruments that draw their value from some underlying financial instrument or contract, are called: a. participatory notes b. derivatives c. options d. futures 13. Which of the following cannot be appointed as a nominee by an NRI account holder, residing in UK: a. his old mother of 98 years, residing in India b. his minor niece, aged 3 years, living in Canada c. his son living in USA for the last 30 years d. HUF in which he is a Karta 6


14. In PNBs scheme of Kisan Ichchapurti, the maximum amount of cash credit for crop production, consumptions needs (other than housing) is Rs______ . a. 51ac b. 10lac c. 61ac d. 7 Lac e.None of these 15. Bank-A has purchased a NPA account from Bank-B, which will be treated standard account for the first 90 days. For capital adequacy ratio purpose, what will be risk weightage for Bank-B: a. 150% b. 125% c. 100% d. 75% 16. In which of the following types of accounts, joint account of NRI with resident Indian is allowed? a. NRO b. FCNR c. NRE d. All of these e. None of these 17. For a study of long term growth of the economy we use_____? a. Real Gross Domestic Product. b. Real Net Domestic Product c. Real Gross National Product d. Real Net National Product the above.

e. None of

18. A bank wants to square its long position in a foreign currency. Around this time, the currency rates have been appreciating: a. bank will make profits b .bank will incur loss c. bank will not be affected in any manner d. depending upon the position, the bank may gain or lose. 19. As per Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGTMSE), maximum cover available per borrower which shall not exceed 75% of the amount in default in respect of credit facility extended by the lending institution subject to maximum of Rs____lacs. a. 25.00 b. 50.00 c. 18.75 d. 37.50 e. None of the above. 20. The meeting of OLIC (Rajbhasha committee) is held once in a. Month b. Quarter c. Half year _______. d. Week e. None of these

21. A bank is approached by one of its NRI customers to open a term deposit of 3 years under FCNR(B) scheme. For which of the following group of currencies, his request can be accepted: a. US dollar and Singapore Dollar b . Euro and Dinar c. Japanese Yen and Canadian Dollar d. Australian Dollar and Hongkong Dollar 22. Inflation occurs when aggregate supply is________. a. Less than aggregate demand b. More than aggregate demand, c. Equal to aggregate demand d.No relation between demand and supply e. None of the above. 23. International Finance Corporation (IFC) has decided to fund an Ultra Mega Power Project in Gujarat. This project belongs to_______. a. Reliance group b. Tata Group c. Birla Group d. NTPC e. None of the above. 24. As per section 269-T of the Income tax act, where the depositor holds, term deposit of Rs 20000/- or more in a branch, as principal or interest, no cash payment be made. As per section 271-E of the income tax act, where a bank fails to comply with this provision i.e. make cash payment, it is liable for_____. a. Payment of simple interest of 12% from the date the payment was made, b. Imprisonment from 3 months to 7 years, c. Penalty of a sum equivalent to the amount paid in cash, d. Penalty of sum equivalent to the amount of deposit so paid e. Penalty ranging between 25000 to Rs 2 lacs. 25.To improve customer service for outstation investors, banks have been advised to pay halfyearly interest/principal of relief / savings bonds to investors at a place of their choice by _______: a. Issue of a demand draft, free of cost, b. At par cheque payable at all branches of the bank c. Cash Delivery through Courier service d. a or b

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26. A software that restricts the access to and from a network and is designed to protect from outside intrusion is called : a. Firewall technology b. Network Protection technology c. Virus protection technology d. Morphing 27. What is John Shephard Barons contribution to Banking , the idea of which struck him as he stretched out in his bath after a long wait at the bank counter? a. Credit Card b. Debit Card c. ATM d. Master Card 28. Committee for computerization in Bank: a. Rangarajan Committee 1984 b. Rangarajan Committee (Second)-1989 c. Saraf Committee 1993 d. Vasudevan Committee-1998

e. All of the above.

29. As a part of the Fair Lending Practices Code, Banks and FIs advised to invariably furnish a _______ along with a copy each of all the enclosures at the time of disbursement. a. Copy of the loan agreement b. Copy of their own Balance sheets c. Copy of their NPA Policy d. All of the above 30. In a computer software , the term morphing refers to which of the following: a. Animation technology in which one image is gradually turned into another . b. Data conversion technique by way of use of codes, c. Conversion of digital picture to analog images d. A softer that saves a network form intrusion, e. Software that links one server to another 31. The term WAN stands for a. World Area Network b. Wide Area Network c. World Application Net d. Wide Application Network 32. Open Systems Interconnection (OSI) Model consists of ___________. a. 5-layers b. 6-layers c. 7-layers

d. 8-layers

33. A flaw in a program that causes it to produce incorrect or inappropriate results is called a __. a. Byte b. Attribute c. Unit Problem d.Bug 34. A collaborative network that uses Internet Technology to link business with their suppliers is ________. a. Internet b. Intranet c. Extranet d. WAN 35. Internet is _________. a. Network of LAN b. Network of ATMs Networks

c. Network of ALPMs

d. Network of

36. PIN in Smart Card is called _____. a. Permanent Index Number b. Personal Identification Number c. Personal Index Number d. Permanent Identification Number 37. A MODEM is connected in between a telephone line and a _____ a. Network b. Computer c. Communication Adapter 38. Buy Now Pay Now is commonly used for _________. a. Debit Cards b. Vault Cards c. Credit Cards 39. A leased line can transmit _________. a. Only Data / Text b. Only Voice

d. NIC

d. E-purse

c. Only Video

d. All the above

40. MICR technology used for clearance of cheques by banks refers to______. a. Magnetic Ink Character Recognition b. Magnetic Intelligence Character Recognition c. Magnetic Information Cable Recognition d. Magnetic Insurance Cases Recognition ANSWERS 1 D 2 B 3 B 4 A 5 D 6 D 7 8 D 9 A 10 A 11 E 12 B 13 D 14 15 C 16 A 17 C 18 A 19 D 20 B 21 22 A 23 B 24 D 25 D 26 A 27 C 28 29 A 30 A 31 B 32 C 33 D 34 D 35 36 B 37 B 38 A 39 D 40 A

B A C E D 8


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TEST III 1. The technique is used to produce a fingerprint of a message as a part of digital signing ____. a. Scrambling b. Extracting c. Hashing d. Condensing 2. Foreign Insitutional investment (FII) stake in a private bank can be maximum: a. 24% b . 26% c. 49% d. 51% 3. Against the pre-shipment credit, the refinance is available from ___ maximum for ___ days: a. RBI, 90 days, b. EXIM Bank, 90 days c. Exim Bank, 180 days d. RBI,180 days 4. According to the report of 'Center for Monitoring of Indian Economy', which state has emerged as the top state in the country in terms of per capita investment in 2007? a. Maharashtra b. Andhra Pradesh c. Delhi d. Haryana e. Gujarat 5. In 11th 5-year plan, the GDP growth rate planned to reach in the last year is: a. 11% b. 10% c. 9.5% 9%

d.

6. The aggregate ceiling for overseas investment by Mutual funds registered with SEBI, has been enhanced from USD ______billion to USD _________billion. a.4:5 b. 400 . 500 c. 300 : 500 d. 200 : 500 e. None of the above. 7. Interest Subvention of 2% and 4% announced on select export advances and SME export advances. Accordingly, the maximum rate of interest that a bank can charge for an Exporter eligible for 4% interest subvention is__________: a. BPLR-6.5% b. BPLR-4.5% c. BPLR-2.5% d. Left to banks discretion 8. The only state in India, which was so far out of the VAT range and has now decided and recently adopted VAT is_________? a. Bihar b. Chhatisgarh c. Rajasthan d. Uttar Pradesh e. Madhya Pradesh 9. As per revised RBI guidelines on Priority sector, Banks should not insist for "No Dues or Status certificates" from small borrowers up to a limit of: a. Rs50, 000 b. Rs.25000 c. Rs 100 000 d. Rs 10,000 10. Under SARFAESI Act 2002, ___ days notice for recovery of possession is to be given : a. 15 days b. 30 days c. 60 days. d. 90 days 11. As per RBI guidelines, loans against security of shares, convertible bonds, convertible debentures and units of equity oriented mutual funds to individuals from the banking system should not exceed the limit of____ per individual for securities in physical form and ______per individual for securities held in demat form. a. Rs.10 lakh, Rs 20 lakh b. Rs20 lakh, Rs 25 lakh c. Rs.10 lakh, Rs 25 lakh d. Rs 20 lakh, Rs 50 lakh 12. CRR is fixed by RBI under : a. Section 24 of RBI Act c. Section 42 of Banking Regulation Act

b. Section 42 of RBI Act. d. Section 24 of Banking Regulation Act

13. For loans to Individuals for subscribing to Initial Public Offers (IPOs), the ceiling is ____as prescribed by RBI. a. Rs.10 lakh b. Rs.20 lakh c. Rs. 25 lakh d. Rs 50 lakh 14. In terms of existing guidelines, requests for payment in cash by foreign visitors/non-residents Indians may be accepted to the extent of USD____ by Authorized Money Changers. This limit has been increased to_______. a. USD 2000 : USD 3000 b. Rs 50000 : Rs 1 lacs c. Nil : Rs 49999/d. USD Nil : USD 3000 e. None of the above. 10


15. A uniform margin of ____is applicable on all advances I financing of IPOs I issue of guarantees for capital market operations. a. 25% b. 50% c. 40% d. Left to the banks 16. Which one of the following is not true with regard to latest RBI guidelines on Asset Liability Management? a. The 1st bucket of 1 to 14 days in Statement of Structural Liquidity be split into three buckets viz Next day, 2 to 7 days and 8 to 14 days. b. The net cumulative negative mismatches should not exceed 5%, 10%, 15% & 20% respectively. c. The statement of Structural Liquidity be prepared on daily basis, d. The statement of Structural Liquidity be reported to RBI on fortnightly basis w.e.f fortnight beginning from April, 1 2008. e. None of the above. 17. Smart Card is _____. a. Special purpose Cards c. Processing unit contains memory for storing data

b. Credit Card d. Processing unit for software handling

18. TDS on interest paid on term deposit, be deposited with Income tax department within: a. 7 days of the deduction of tax b. 7 days from the close of month, in which tax is deducted, c. 10 days of the deduction of tax d. 10 days from close of month, in which tax deducted, e. None of the above. 19. The word FTP stands for __________. a. File Translate Protocol b. File Transit Protocol c. File Typing Protocol d. File Transfer Protocol 20. Threats of physical damage to the hardware is from ______. a. Natural Calamities b. Power Fluctuations c. Electro Magnetic Effects d. Magnetic Devices 21. A collection of raw facts is called ________. a. Output b. Information c. Bits

d. Data

22. NABARD provides grant support to various activities of Farmers Clubs for a period of 3 years on cost sharing basis from the first year itself. The pattern of cost sharing between NABARD and Sponsoring Commercial Banks for all the activities supported by NABARD would be: a. 50 : 50 b. 2/3rd: 1/3rd c. 25 : 75 d. 75 : 25 e. None of the above. 23. Which one of the following is the amount of remittance allowed in the shape, of foreign exchange for medical treatment abroad when no cost estimates has been submitted by the treating hospital? a. Equal to Rs 1 lac, b. Equal to USD 1 lac, c. Equal to Rs 10 lacs, d. Equal to USD 10000, e. Nil, when no cost estimates are submitted. 24. INFINET(Indian Financial Network) was developed by a. RBI b. SBI c. PNB 25. BCTT collected should be .deposited with the Govt by_____ a. 7th b. 15th c. 21st the above. of next month. d. End

d. IDRBT

e. None of

26. The term HTML connotes_________. a. Hyper Text Markup Language b. Hyper Transcription Markup Language c. High Text Markup Language d. High Terminal Markup Language 27. The primary communication protocol on Internet is ________. a. IPX b. NETBIOS c. TCP/IP

d. EPBX

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28. A result of a computer virus cannot lead to_______. a. Disk Crash b. Mother Board Crash c. Corruption of program d. Deletion of files 29. As per our guidelines, borrowers enjoying FB limit above Rs_____crores would normally be under consortium arrangement? a. Rs 10 crores, b. Rs 25 crores, c. Rs 50 crores, d. Rs 100 crores, e. No formal ceiling, depending upon merits of the case 30. A promissory note issued as payable to bearer violates : a. Section 31 of RBI Act. b. Section 31 of Banking Regulation Act. c. Section 31 of Negotiable Instrument Act. d. None of these 31. Maximum shopping limit on POS for PNB Debit Card (GOLD) per day is _____. a. Rs. 15000/b. Rs. 20000/c. Rs. 60000/d. Rs.25,000/32. A Bancmate system uses a. LAN b. WAN

c. MAN

d. BANKNET

33. Working capital borrowal account, becomes out of order as per RBI norms, where drawing power is based on stock statement old than : a. 12 months b. 6 months c.3 months d. no such provision 34. A scanner is a________. a. Input device b. Output device

c. Processing device

d. None of these

35. As per Consumer Protection Act 1986, limitation period for complaint to be filed is : a. 3 years. b. 2 years. c. 1 years. d. years. 36. Which of the following operations cannot be done through PNBs Internet Banking Service a. Balance enquiry b. Fund Transfer c. RTGS d. All can be done 37. LINUX is a a. Operating system

b. Application software

c. Programming Language

d. RDBMS

38. PNBs Internet Banking Services can be made available to a. All customers of the bank b. All customers of CBS / Bancmate branches c. All customers of CBS branches d. All customers having SB / CA account 39. An authorized dealer category 1 bank can remit up to ___ $, the advance payment against import of goods: a. 10000 b. 50000c. 100000 d. no such remittance is permitted. 40. For Pre-shipment credit in foreign currency, the rate of interest is: a. as per ceiling rate fixed by RBI b. rate of interest linked to LIBOR c. rate of interest linked to SWAP d. at discretion of the bank concerned ANSWERS 1 C 8 D 15 B 22 A 29 C 36 D 2 9 16 23 30 37 C A E B A A 3 10 17 24 31 38 D C C D C C 4 11 18 25 32 39 D A B B A C 5 12 19 26 33 40 B B D A C D 6 13 20 27 34 A A A C A 7 14 21 28 35 A A D B B

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TEST 1. Charge of a car financed to a limited company, will be got noted with : a. RoC only b. RTO only c. RoC and RTO both d. Being a transport advance, no where 2. The systematic risk and settlement risk can be managed with implementation of which of the following: a. RTGS b. SWIFT c. Digital signatures d. CBS 3. Non-disclosure of information of customers account by the bank is an : a. Provisions of Secrecy Act b. Provisions of Indian Contract Act c. implied contract d. express contract 4. Under group exposure guidelines of RBI, the exposure ceiling for individual borrower is: a. 15% of capital fund of the bank b. 12.5% of the capital fund of the bank c. 12.5% of the networth of the bank d. 15% of the networth of the bank 5. Maximum interest subvention in case of export credit is restricted to: a. 2% with the condition that minimum interest rate should be 9% b . 4% with the condition that minimum interest rate should be 9% c. 2% with the condition that minimum interest rate should be 7% d. 4% with the condition that minimum interest rate should be 7% 6. In terms of Section 20(1) of the Banking Regulation Act, 1949, a bank cannot grant any loans and advances: a. On the security of its own shares b. On security of privately held Companies c. On security of publicly held Companies d. All of the above 7. Period for appeal by customer against a decision, under Banking Ombudsman scheme is : a. 15 days from date of receipt of copy of the decision. b. 30 days from date of receipt of copy of the decision. c. 30 days from date of the decision. d. 45 days from date of the decision. 8. As per new RBI guidelines, Banks should obtain __for properties valued at Rs. 50 crore or above. a. Min. two independent valuation reports b. Min. three independent valuation reports c. One independent & one In-house report d. Banks are free to decide 9. Retail trade limit of Rs.___ lac (other than essential commodities) is to be classified under PS Advances : a. 10 lac b. 15 lac c. 20 lac d. no ceiling 10. As per latest RBI guidelines, a minimum cash margin of ____ within the overall margin of____ should be maintained in the case of Advances against shares. a. 25%,50% b. 10%,20% c. 25%, 60% d. 25%, 40% 11. Housing loans to individuals (other than staff) up to maximum of Rs.___ lac are to be classified under PS credit : a. 20 lac b. 15 lac c. 10 lac d. Rs.10 lac in rural and Rs.15 lac in urban areas 12. RBI has advised Banks that they should not sanction loans for acquiring: a. NSC b. Kisan Vikas Patras (KVPs) c. Other Small saving instruments d. All of the above 13. Indian banks to maintain_______ minimum capital required as per RBI guidelines on BaselII norms. Tier-I capital to be at least__________%. a. 8, 4 b. 9.45 c. 9.4 d. 9.6 14. Three days grace is allowed by the NI Act for a. Demand bill b. All negotiable instruments c. Usance instruments d.None of the above 15. Firewalls are used to protect against ____________. a. Unauthorised Attacks b. Virus Attacks c. Data Driven Attacks d. Fire Attacks 16. Which of the following error code in RTGS indicates Transaction cancelled by RBI a. R01 b. R02 c. R03 d. R04 17. The____ converts digital signals to analog signals for the purpose of transmitting data over telephone lines. a. Modem b. Router c. Gateway d. Bridge 18. In which of the following mandate, debit card cannot be issued a. Either or survivor b. Former or survivor c. Anyone or survivor d. self 19. For greater financial inclusion some modifications have been made in PNB MITRA SAVING FUND SCHEME. As per the modified provisions, in accounts where minimum monthly balance for the last three months is Rs 5000 and above, OD facility upto Rs_____ may be granted. a. 2000 b. 1000 c. 1500 d. 500 e. None of the above. 13


20. As per the recommendations of the Nayak Committee minimum working capital requirement for a unit is equivalent to a. 15% of estimated sales b. 20% of Estimated sales c. 25% of Estimated sales d. 30% of estimated sales 21. As per Banks Housing Loan Scheme for Public, repayment should be fixed on realistic basis. For the purpose of all deductions including the proposed Housing Loan Instalment should not exceed 50% of the gross Income. However, in cases where gross monthly salary is above Rs 50000/-, deductions can be permitted.upto_________ . a. 55% b. 60% c. 65% d. 70% e. None of the above. 22. Which of the following storage media is volatile a. RAM b. ROM c. Hard disk d. CDROM 23. Retail Lending will continue to be a thrust area for the bank and the aim of the bank is to increase its share 22% of gross advances and gradually increase it ______of the gross advances in a phased manner. a. 25% b. 28% c. 30% d. 32% e. None of the above. 24. The ____ directory is mandatory for every disk. a. Root b. Base c. Sub d. Case 25. To address the financial needs of Sr Citizens owning self occupied property (house) for leading a decent life, PNB Baghban, Scheme has been floated. As per the scheme, in case of Joint accounts, one of the spouse must be of the age of 60 years while the age of other spouse should be minimum____years. a. 50 b. 52 c. 55 d. 58 e. 60 f. None of the above. 26. Smallest storage unit of a computer is --a. Bit b. Byte c. Nibble d. Pixel 27. As per the recent amendment carried out to Credit Guarantee Fund Trust for Micro & Small Enterprises (CGTMSE), which one of the following is not correct with regard to categories for which guarantee cover has been enhanced from 75% to 80%? a. Loans to Micro Enterprises upto Rs 25 lacs. b. Loans to Micro and SmallEnterprises operated/owned by women, c. Loans in North Eastern Region irrespective of the amount. d. (1) & (2) e. (1), (2) & (3) 28. SQL stands for a. Sequential Query Language b. Sequence Queue Language c. Sequential Quote Language d. Sequel Quarry Language 29. As at August 31, 2007, total number of RRBs has declined from 196 to______. a. 95 b. 85 c. 75 d. 65 e. 55 30. The word ISDN stands for a. Internal Service Digit Network b. Integrated Services Digital Network c. Information Service Digital Net d. Internal Server Digit Network 31. For scientific applications most useful language is a. COBOL b. FORTRAN c. SQL d. HTML 32. The Basel Accord covers Credit Risk, Market Risk and Operational Risk. As regards other risks the same are proposed to be captured through: a. minimum capital requirements b. supervisory review process c. market discipline d. none of the above 33. Multiplexing means a. a technique to enable more than one signal to be sent simultaneously over one physical channel b. a technique to enable one signal over one channel c. a technique to enable one signal over many channels d. a technique to enable one signal over multiple channels 34. The term TCP/IP stands for a. Transmission Control Protocol/Internet Protocol b. Transit Control Protocol/Internal Protocol c. Transfer Concept Protocol/Intermediate Protocol d. Transit Concept Protocol/Interval Protocol 35. Payroll System is essentially a. Online b. Batch Processing c. Real Time d. Transaction processing 36. Which one of the following is not associated with Market Risk? a. interest rate risk b. equity rate risk c. sovereign risk d. commodity price risk 37. As per the latest policy of National Housing Bank for refinance, Individual housing loans upto Rs _____each, for acquisition/construction of new dwelling units only, will be eligible for refinance. a. 20 lacs b. 50 lacs c. 5 lacs d. 251acs e. None ofthe above 14


38. The risk that arises due to use of obsolete or untested technology which is not fully in line with business needs, lack of trained staff and their response to new technology is known asa. operational risk b. market risk c. liquidity risk d. credit risk 39. The quarterly financial results of Scheduled Commercial Banks are published under the provision of or under the directions issued by________. a. RBI b. Companies act c. SEBI d. Govt of India e. IBA 40. It has been decided to raise the limit of loan under Differential Rate of Interest (DRI) scheme from Rs 6500 to Rs______and housing loan from Rs ______ to Rs 20000/- per beneficiary. a.15000: 6500 b.20000:6500 c. 15000 : 20000 d. 15000 : 5000 e. 20000 : 5000 ANSWERS 1 C 8 A 15 A 22 A 29 A 36 C 2 9 16 23 30 37 A C C A B B 3 10 17 24 31 38 C A A A B A 4 11 18 25 32 39 A A C D B C 5 12 19 26 33 40 D D A A A D 6 13 20 27 34 A D C A A 7 14 21 28 35 B C B A B

15


1. Financial statements have a limitation period of : _______ a. 3 years b. 2 years c. 1 year d. nil 2. In which one of the following, Repurchase Option (REPO) or ready forward transactions are permitted? a. Commercial Paper b. Certificate of Deposit c. Treasury Bills d. Govt Securities e. All 3. A Cheque bears an impossible date, viz, 31st November________: a. Cheque cannot be paid b. Pay on the last working day of Nov. c. Pay on the 151 day of December d. Can pay on the last business day of November 4. Repo/Reverse repo transactions are undertaken between RBI and__________. a. All Members of NOD-OM b. Primary Dealers, FIs & MF c. Primary Dealers, FIIs, & MFs d. Individuals, Trusts, Corporate Bodies, PDs, MFs e. Banks only 5. Nominee has predeceased the A/c holder. Payment shall be made to: a. Against joint discharge to Legal heirs of the depositor and the legal heirs of nominee. b. Legal heirs of the nominee c. Legal heirs of the depositor d. Payment through Court order or Succession Certificate. 6. Memory Management through Paging is controlled by a. OS b. CPU c. RAM d. ROM 7. Bio-metric Recognition does not include a. Finger Print and Palm Print b. Voice Print and Eye Retina c. Hand Geometry and Typing Rhythm d. Body Print and Head print 8. Loans against NRE/FCNR term deposits to Account holders I Third parties is to be restricted to Rs____ as per RBI guidelines. a. 10 lacs for NRE b. 20 lacs for FCNR c. Both a & b d. 20 lacs for both NRE I FCNR 9. The following cannot be done by virus . a. Loss of Data b. Deletion of File c. Physical Damage to Keyboard c. Corruption of Program 10. Exposures to _____,_______are now treated as part of a Bank's exposure to Capital markets. a. Venture Capital funds b. Equity Oriented Mutual Funds c. Both a & b d. Neither A nor B 11. Reserve Bank of India has advised that credit flow to minority communities is now to be specially monitored in________ identified districts having at least ________ minority population. a. 103:20 b. 121 : 25 c. 131 : 25 d. 141 : 20 e.151 :No such restriction. 12. Risk weight on loans up to Rs 1 lakh against _______is reduced to 50% from 125%. a. Residential property b. Shares c. NSC d. Gold & Silver ornaments 13. The extent of guarantee cover under Credit Guarantee Fund Trust Scheme for Micro and Small Enterprises has been raised from 75% to 80% for certain category of borrowers? Which one of the following is not among the eligible borrowers? a. Loans to Micro Enterprises upto Rs 5 lacs b. Loans to Small and Micro Enterprises operated by women c. All loans to North Easter Region irrespective of the amount d. All loans to SC/ST Borrowers e. None of the above. 14. Proforma of cheque is laid down in Section ____ of ___ Act : a. only practice b. court judgement c. Section 13 of NI Act d. Section 31 of RBI Act 15. Which one of the following best explains the term "Shell Bank"? a. A Bank, which is incorporated in a country where it has no physical presence. b. A bank which is incorporated to take deposits only and invests in 100% secured Govt securities only. These banks normally charge huge service charges from their depositors to earn profits. These types of banks are normally in Switezerland & other small European countries. c. A bank which is having 100% of its branches in a country in which it has been incorporated i.e. no foreign branch. d. A bank incorporated in Islamic country on the, principles of Islamic Banking. e. None of the above. 16. For all loans sanctioned in North Eastern Regions, Credit Guarantee Fund Trust, has reduced the one time upfront fee for coverage under CGTMSE from 1.50% to_________. a. 0.50% b. 0.75% c. 0.375% d. 0.125% e. None of the above. 17. In Annual Information Report, Cash deposits aggregating to _____or more in a year in a Savings account is to be submitted to IT Commissioner directly by the branch. a. Ten lakh rupees b. Rs 20,00,000 c. Rs One crore d. Need not report 16


18. As per RBI report________ of the citizens are yet to financially included to the Banking System. 1. 21% 2. 31% 3. 41% 4. 51% 5. 61% 19. Annual Information Report is to be filed with______________: a. The Commissioner of Income Tax (Central Information Bureau). b. FIU, Ministry of Finance c. Enforcement Directorate d. Economic Intelligence wing, CBI 20. As per PNB norms maximum exposure to a partnership firm can be ______? a. 50 Crores b. 25 Crores, c. 75 Crores, d. 150 Crores, e. 100 Crores 21. HTML tag _______ a.

b. d. dir 22. A situation of negative net working capital arises when: a. current assets are more than current liabilities b. current liabilities are more than current assets c. long term uses are less than long term sources d. short term sources are less than short term uses 23. Minor can draw, negotiate, transfer, endorse negotiable instruments but: a. He is liable if cheque is dishonoured b. he is liable for endorsement c. he is not liable personally d. he is liable personally but nothing can be recovered from him 24. Under PNB Kalyani Card Scheme total credit summations in the a/c, for the last 12 months, should be equal to__________ ? a. Total Debits b. Total limit c. Max. outstanding during the year d. Equal to intt levied e. None of the above. 25. Working capital margin should be met from : a. Surplus of long term uses over long term sources b. Surplus of profit and loss account c. Induction of interest free funds by the promoters d. Surplus of long term sources over long term uses 26. Not negotiable crossing means : a. where facility of further transfer is automatically withdrawn. b. where facility of defect free title available is automatically withdrawn c. where facility of defect free title and further transfer is automatically withdrawn. d. there is no impact on the instrument 27. Which one of the following has been appointed as Chairman of 13th Finance Commission? a. Montek Singh Aluwalia b. Dr Manmohan Singh (Ex-Officio) c. Vijay L Kelkar d. Pranab Mukherjee e. Sita Ram Yucheri 28. At the time of retiring of Import bill under Foreign Import letter of credit, the importer is to submit: a. Form A4 b. Form A2 c. Form A1 d. Form A2 and A4 29. Garnishee order can be served if the relationship of banker and customer is that of : a. creditor and debtor b. debtor and creditor c. agent and principal d. trustee and beneficiary 30. Which one of the following correctly represents the maturity periods of T-Bills presently in vogue? a. 91 days, 182 days, 364 days b. 91 days, 182 days c. 14 days, 91 days, 182 days d. 14 days, 91 days, 182 days, 364 days e. None of the above. 31. If amount of cheque is paid by the bank before realization, the bank becomes : a. holder in due course b. holder only c. holder for value. d. holder for value and holder. 32. For import. of goods under negative list, licence is given by: a. RBI b. Ministry of Commerce c. DGFT d. Customs 33. Not furnishing AIR will attract penalty at ________: a. Rs. 100 per day b. Rs. 500 per day c. Rs 1,000 per day d. No monetary penalty 34. Which one of the following instruments are issued for a minimum of Rs 1 lacs and in multiple thereof? a) T-Bills b) Commercial Paper c) Certificate of Deposit a. a) & c) only b. b) & c) only, c. c) only, d. a)&b)only e. b)&c)only 35. Negative Lien implies: a. Mutual agreement between bank and company b. Undertaking not to charge assets without obtaining bank's prior consent c. Creating equitable charges over assets which are not given expressly as Security by the Company. d. None of the above 17


36. Which one of the following instruments has no relation with regard to maintaining of SLR/CRR by the banks. a. Repurchase Options, b. Call Money/Notice Money market c. T -Bills d. Commercial Paper e. Certificate of Deposit 37. The purpose of funds flow statement is : a. to see the sources of funds only. b. to see the uses of funds only c. to see the sources and use of funds d. to see the diversion of funds. 38. Authorized dealers allow Importers and Exporters to book forward contract on the basis of _____ other than underlying contracts. a. Average of previous three years actual import / export turnover b. Previous year's actual import /export turnover c. A or B whichever is higher d. Only exporters can book as above 39. A Pakistani national of Indian origin wishes to open NRI account: What decision you would take? a. Decline his request because he is not considered a NRI b. Open the account because he is not a resident of India c. Collect his necessary documents and seek RBI's permission d. Seek head office approval 40. Forged notes received in branch from a customer : a. should be returned to the customer in any case and must be impounded. b. should not be returned to the customer in any case and must be impounded. c. Handed to Police d. None of these ANSWERS 1 D 8 D 15 A 22 B 29 B 36 D 2 9 16 23 30 37 C C B C A C 3 10 17 24 31 38 D C A C C C 4 11 18 25 32 39 E B C D C C 5 12 19 26 33 40 C D A B A B 6 13 20 27 34 A D C C A 7 14 21 28 35 D A A C B

18


1. Financial Inclusion means:- providing of banking services to the people______. a. Delivery of banking services at affordable cost b. Where they want to have facility but there is no bank c. Who have a/c but no loan facility d. To increase income of the BPL families. e. None of the above. 2. A bank can purchase NPA from another bank if it is categorized as NPA for a minimum period of_________. a. 1 year b. 2 years c. 4 years d. 5 years 3. The 'Educational Loans' were classified as a part of 'Consumer Credit' for the purpose of Capital adequacy, and accordingly attracted a risk weight of 125 %. However, as per the revised guidelines, under Basel - II framework, the Educational loans, now no longer being a part of Consumer Credit would be treated as a component of the regulatory retail portfolio and attract a risk weight of _________ % as against 125% at present: a. 150 b. 130 c.100 d.75 e. None of the above 4. To attract quality advances, higher loaning powers have been vested with sanctioning officials in the rank of CMs/RMs and above. As per the loaning power chart an officer of AGM level can exercise their loaning power in respect of AA/ AAA and "A" rated borrowers up to____ and____% of normal loaning powers. a. 100-110 b. 100-125 c. 110-125 d. 125-110 e. 125-100 5. Which one/s of the following instruments is not issued in the form of Promissory Note? a. T-Bills , b. Commercial Paper, c. Certificate of Deposit a. a)&c) b. a) only c. b)&c)only d. a), b) & c) onlye. None of the above. 6. As per insurance policy for cash taken from New India Assurance Co. for cash remittance to the tune of Rs. 15.00 lacs from a branch, which is not attached with the Link Chest Branch, it should be accompanied by _________? a. Cashier & officer b. Cash Officer Only c. Cashier + officer + Armed Guard d. cashier + officer + Guard (Armed or Unarmed) e. None of the above. 7. While considering sale and purchase of Nonperforming assets, Banks are advised to ensure that at least _______% of the estimated cash flows should be realized in the first year & at least ________% in each half year thereafter, subject to full recovery within three years. a. 10%, 5% b. 5%,10% c. 5%, 20% d. All stipulations withdrawn 8. RBI has recently advised that with effect from April 1, 2008 all payment transactions of Rs._____crore and above between RBI regulated entities i.e. banks, primary dealers and NBFCs as well as in RBI, regulated markets i.e. money market, Govt. Securities market and foreign exchange market may be mandated to be undertaken through electronic mode only. a. 50 b. 1 c. 1.5 d. 2 9. Which one of the following is not a criteria for compulsory filing of e- TDS return? a. Govt. Deductors, b. Corporate Deductors c. Persons whose accounts are to be audited under section 44AB in the immediately preceding financial year. d. Deductors who have 50 deducted records or more for any quarter of the immediately preceding financial year. e. Deductors who have deducted or will deduct in the coming quarter an amount equivalent to Rs 50 lacs or more. 10. RBI guidelines stipulate that the tolerance level of Re-issuable notes in the soiled banknote remittance to RBI is lowered from the existing _________to_______ of each remittance: a. 10%, 5% b. 20%,15% c. 15%,10% d. 10%, 3% 11. Under the new definition of Micro, Small and Medium Entp. a unit can be a Small Service Enterprise if total investment in equipment is between ____Crs. and _____Crs. a. 0.10 : 2.00 b. 0.25 : 2.00 c. 0.50 : 2.00 d. 0.25 5. 1..00 e. 5.00 5_00 12. As per current RBI guidelines, banks are now prohibited from granting fresh loans in excess of Rs. _______against the NRE and FCNR (B) deposits, either to depositors or to third parties. a. Rs 20Iacs b. Rs 25 lacs c. Rs.50 lacs d. No restriction 13. As per the latest guidelines of the bank, FDR shall be automatically renewed on maturity. However a customer has the option to change the tenor of auto renewed FDR within_____ days of renewal of FDR. a. 14 days b. 15 days c. 30 days d. Any time before maturity of auto renewed deposit, e. None of the above.

19


14. In respect of short-term production credit upto Rs. 3 lac to farmers, Government scheme of interest subvention of 2% will be available to Public Sector Banks on the condition that they make available short-term credit at ground level at ________ p.a . a. 6 % b. 7 % c. 8% d. BPLR rate 15. The Competition (Amendment) Bill, 2007, has been passed by the Lok Sabha. Out of the following which is incorrect with regards to the objective of the Bill passed: a. It lays down strict norms for disclosures of mergers and acquisitions (M&As) to prevent corporations from building dominant market positions artificially. b. To prevent cartelization, predatory pricing and deliberate attempts to prevent market access by a group of companies. c. To ensure compliance of Corporate Governance guidelines. d. To ensure Corporate Debt Restructuring and Stress Funding. e. a and b above 16. If any bank wishes to migrate to Internal Rating Based Approach (IRBA) for Credit risk and Standardised Approach or the Advanced Measurement Approach( AMA) for operational risk ____ is required. a. Minimum capital adequacy of 12% b. Prior RBI approval c. Both of the above d. Neither of the above 17. RBI has permitted banks to undertake Pension Funds Management (PFM) and has laid down the eligibility conditions. Out of the following which is incorrect w.r.t. PFM? a. The Net Worth of bank should not be less than Rs500cr b. Capital to risk weighted assets ratio (CRAR) should be not less than 11 per cent during the last three years c. The bank should have made net profit for the last three consecutive years. d. Return on Assets should be at least 0.6 per cent or more. e. Level of net non-performing assets (NPAs) should be less than 3 per cent. f. None of the above. 18. A________ sometimes called a boot sector virus, executes when a computer boots up because it resides in the boot sector of a floopy disk or the master boot record of a hard disk. a. System Virus b. Trojan Horse virus c. File Virus. d. Macro Virus e. None of the above 19. If an Exporter customer wishes to avail the facility of booking forward contracts based on his past performance, the condition to be complied is that the amount of overdue bills outstanding on date should not exceed _________% of the turnover (past performance). a. 1 0% b. 25% c. 5% d. No such condition now 20. The modified Banking Ombudsman scheme (May 2007) provides for appeal by a customer aggrieved by the______ by the Banking ombudsman which was not available earlier. a. Rejection of his application b. Award c. Delay d. All of the above 21. Sensitivity Tests & Scenario Tests are two types of: a. Stress Testing b. Credit Rating c. Securitization d. None of these 22. Scheduled Commercial Banks and Primary Dealers are allowed to cover their short positions in Central Govt. securities within an extended period of ________ trading days. a. Ten b. Five c. Three d. Twenty four hours 23. An applet_________ ? a. Is an interpreted program that runs on the client, b. Tracks the number of visitors to a website, c. Is a compiled program that usually runs on the client, d. Collects data from visitors to a website, e. None of the above. 24. The rate to be applied for crystallizing / delinking of export bill: a. Bill buying rate b. TT selling rate c. Bill selling rated. TT Buying rate 25. The ceiling under Liberalized Remittances scheme for Resident Indians is now ____ per financial year: a. USD 50,000 b. USD 100000 c. USD 2,000,00 d. USD 250,000 26. As per the new RBI's guidelines on Asset Liability Management, Banks are to adopt a more granular approach and include more time buckets in their ALM maturity ladders such as_____: a. Next day b. 2-7 days c. 8-14 days d. All 27. With a view to encouraging wider participation and retail holding of Government securities, RBI has introduced "non-competitive" participation in dated Government of India (Gol) securities up to ______ percent of the notified amount in select securities recently. a. Ten b. Five c. Fifteen d. One 28. The eligible loans guarantee limit (fund based + non fund based) for Micro & Small enterprises under the CGTMSE is now raised to Rs______: a. 25 lacs b. 50 lacs c. 75 lacs d. 100 lacs

20


29. Banks can give loans to employees to buy shares of their own companies ( Employee Stock Option Plans) to the extent of _____ of the purchase price of the shares subject to a maximum of Rs. 20 Lakhs: a. 40% b. 50% c. 75% d. 90% 30. Refund of Stamp duty in case of print document which are no longer required by bank can be done by collector within: a. One month from the purchase of document. b. Two months from the discontinuation of document. c. Six months from the date of purchase. d. No time limit. e. None of the above. 31. As per the RBI guidelines, the maximum repayment period in Infrastructure project is: a. 7 years b. 12 years c. 15 years d. To be determined by bank keeping in view the maturity profile of the liabilities and requirement of the project 32. In the new UCPDC,_______ has been added under the Force Majeure clause (article 36) which was not there earlier. a. Tsunami b. Acts of Terrorism c. Both d. Neither 33. Banks can raise up to________ of the total Tier-I capital in the form of Perpetual debt: a. 5% b. 10% c. 15% d. 25% 34. As per revised RBI guidelines on Priority sector, Banks should not to insist for "No Dues or Status certificates" from small borrowers up to a limit of: a. Rs.50, 000 b. Rs.25000 c. Rs.1 00, 000 d. Rs.1 0,000 35. The recent disruption in internet services in India and some other parts of the world was caused by the damage of a. SEA-ME-WE-1 network system, b. SEA-ME-WE-2 network system, . c. SEA-ME-WE-3 network system, d. SEA-ME-WE-4 network system, e. None of the above. 36. Women assesses are exempted from payment of Income tax upto Rs._______ as per Union Budget 2008: a. Rs. 1,50,000 b. Rs. 1,80,000 c. Rs. 2,00,000 d. Rs. 2,25,000 37. The minimum amount in US$ that can be purchased by a Commercial bank from Reserve Bank of India? a. USD 500,000 b. No minimum c. USD 100,000 d. USD One million 38. As per the new UCPDC 600, banks are allowed _________Banking days for examination of documents / conveying refusal. a. 5 b. 6 c. 7 d. Only 24 hours 39. RBI has recently clarified certain issues with regards to charging of interest under the DRI scheme. Which of the following is not correct? a. Banks can provide individual loans up to Rs. 15,000/- at a concessional rate of interest of 4% p.a. to the weaker sections of the community for engaging in productive and gainful activities. b. In addition, members of SC/STs satisfying the income criteria of the scheme can also avail of housing loan up to Rs. 20,000/- per beneficiary over and above the individual loan of Rs. 15,000/available under the scheme. c. Both of the aboved. None of the above 40. Govt. in consultation with the RBI, has revised the ceiling for the outstanding under the Market Stabilization Scheme (MSS) for the year 2007-08 to_______ crore: a. Rs.1 ,25,000 b. Rs.1 ,50,000 c. Rs.1 ,70,000 d. Rs.2,00,000 e. Rs.2,50,000 ANSWERS 1 A 8 B 15 E 22 B 29 D 36 B

2 9 16 23 30 37

B E B C D D

3 10 17 24 31 38

D A F B D A

4 11 18 25 32 39

D A E C B D

5 12 19 26 33 40

E A A D C E

6 13 20 27 34

D A A B A

7 14 21 28 35

A B A B D

21


TEST

1. ________ is a centralized payment system in which, inter-bank payment instructions are processed and settled, transaction by transaction (one by one) and continuously (online) throughout the day, as and when the instructions are received and finally accepted by the system . a. Batch b. RTGS c. SFMS d. None of these 2. The minimum settlement cycle under RTGS in India is presently ____ hourly and the transaction amount is minimum Rs._____ . a. 2, Rs.2 lac b. 2, Rs.1 lac c. instant, Rs.1 lac d. None of these 3. For being eligible to declare dividend, a bank should have minimum CAR of ________% and NPA less than _____ a. 9%, 9% b. 9%, 5% c. 9%, 7% d. None of these 4. In the Union Budget for 2008-09, the Govt. proposes to fix the income ceiling for DRI loan eligibility at: a. Rs.12000 for rural areas and Rs.15000 for urban areas b . Rs.15000 for rural areas and Rs.20000 for urban areas c. Rs.18000 for rural areas and Rs.20000 for urban areas d. Rs.18000 for rural areas and Rs.24000 for urban areas 5. The maximum dividend the banks can declare is restricted to 40%. a. True b. False 6. In the Union Budget for 2008-09, the Govt. proposes to enhance the exemption threshold limit for service tax purpose from Rs. __ lac to Rs.___ lac: a. Rs.5 lac, Rs.8 lac b. Rs.6 lac, Rs.8 lac c. Rs.7 lac, Rs.10 lac d. Rs.8 lac, Rs.10 lac 7. Indian banks having branches abroad (overseas presence) and foreign banks in India have to adopt Basel-II norms w.e.f,_______: a. 31 March 2008 b. 31-march 2009 c. 31-March 2010 d. Left to the bank 8. Banks can now undertake Pension Funds Management through subsidiaries set up for the purpose if they satisfy the eligibility criteria prescribed by the _________: a. SEBI b. RBI c. IRDA d. PFRDA 9. In the Union Budget for 2008-09, the Govt. proposes to enhance the personal income tax threshold limit. Which of the following does not match: a. up to Rs.1.50 lac Nil b. above Rs.1.50 lac to 3 lac 10% c. above Rs.3 lac to Rs.5 lac 25% d. above Rs.5 lac 30% 10. Floor limit of SLR is________. a.15% b.20% c.25% d. Nil 11. Restructuring a loan pending in BIFR & with the permission of BIFR can be considered in case minimum _______of the number of creditors agree for the same. a. 70% b. 60% c. 85% d. 90% e. 100 % 12. As per RBI guidelines issued on sale of NPA, the sale price should not generally be lower than ______ of the estimated cash flows associated with the realisable value of the available securities (net of the cost of realisation). Same principle should be used in compromise settlements. a. Distress sale value b. Market price c. Net Present Value d. Book value 13. As per the decision of Supreme Court in the matter of M/s Transcore Vs. Union of India & Others as regards SARFAESI actionand DRT proceedings, which is correct________? a. It can be proceeded with, without withdrawal of the DRT application. . b. The remedies under SARFAESI Act and DRT Act are not complimentary to each other and can NQT. be taken up simultaneously c. Bank has to seek prior approval from DRT d. Bank has to withdraw case from DRT e. None of the above. 14. In case of receipt of Counterfeit currency Note from a customer the action of the bank should be____? a. To tear the Note in small pieces b. To impound the Note & issue receipt to the customer duly signed by Manager, Cashier & customer c. To impound the Note & issue receipt to the customer duly signed by Cashier & customer only d. To hand over the customer to the police. e. None of the above. 15. In case of advances to Service Sector the method of lending will be________? a. Turnover method b. MPBF c. Cash Budget System d. Loan delivery system e. None of the above. 16. No dues certificate is waived for small / marginal farmers with a loan up to __________. a. Rs. 10000 b. Rs. 25000 c. Rs. 50000 d. cannot be waived 22


17. Which one of the following best represents the term "Exchangeable Bonds"? a. A straight bond with an embedded option to exchange the bond for another bond of the same company at predetermined Price. b. A straight bond with an embedded option. to exchange the bond for another bond of the subsidiary company of the issuer company, at predetermined Price. c. A straight bond with an embedded option to exchange the bond for stock of the company at predetermined prices. d. A straight bond with an embedded option to exchange the bond for the stock of some other company (Usually subsidiary) other than the issuer company. e. None of the above is true. 18. The cost of project under PMRY is : a. Rs.5 lac for business and service and Rs.5 lac for industry. b. Rs.5 lac for business and service and Rs.2 lac for industry. c. Rs.2 lac for business and service and Rs.5 lac for industry. d. Rs.2 lac for business and service and Rs.2 lac for industry. 19. Which one of the following is irrelevant in economic planning in a market oriented economy? a. Indicative Planning b. Development of Infrastructure c. Economic policy by a Government d. Regulations and Controls e. None of the above. 20. Combining of two or more accounts for recovery of bank loan is called : a. lien b. set off c. appropriation d. pledge 21. In terms of policy guidelines of RBI for sale purchase of NPA, NPAs purchased should be held by the purchasing bank in its books at least for a period of__ months before it is re-sold to some other bank. a. 12 b. 15 c. 24 d. 36 e. None of the above. 22. In the Union Budget for 2008-09, the Govt. has fixed the agriculture advances target for 2008-09 at:__________ a. Rs.280000 cr b. Rs.240000 cr c.Rs.225000 cr d. Rs.175000 cr 23. Maximum ceiling limit of CRR is_________: a. 20% b. 40% c. 25% d. No maximum now 24. What are the latest RBI instructions to Banks for loan against KVP/IVP etc. ? a. Loan should be given immediately b. Loan for reinvestment in KVP/IVP should not be given c. No loan should be given d. Only loan to Sr Citizens be given. e. None of the above. 25. The size of rural infrastructure development fund (RIDF) for 2008-09, as per Union Budget 200809 is kept at:_______ a. Rs.15000 cr b.Rs.14000 cr c.Rs.12000 cr d. Rs.10000 cr 26. Disaster to computer resources occur because of: a. Natural Calamities b. Accidents like fire and chemical reaction c. Deliberate action by disgruntled operators by deleting the data and Introducing the virus. d. Frequently forgetting the pass-word. e. (a) (b) & (c) above 27. If irrevocable power of attorney is given for 1 year to a person to operate the account and is withdrawn after 4-5 months, the bank should ____: a. Bank should allow operations by agent as power of attorney is irrevocable. b. Bank should allow operations by agent as power once given cannot be withdrawn. c. Bank should not allow operations by agent as there is dispute. d. Bank should not allow operations by agent as principal can revoke the authority any time. 28. As per RBI Anti-Money laundering guidelines, the Ordering Bank and Intermediary Bank in case of Wire Transfers have to preserve the originating information for at least _____years: a. 10 b. 5 c. 21 d. 12 29. BCTT is charged if drawal from a current account by a partnership firm, is : a. above Rs.1 lac in a day for a single transaction. b. above Rs.1 lac in a day for a single transaction or total of all withdrawals c. above Rs.0.5 lac in a day for a single transaction d. above Rs.0.5 lac in a day for a single transaction or total of all withdrawals 30. What is the fee payable to a "TRP" (Tax Return Preparer)? a. Rs. 250/- flat for existing tax payer. b. 3% for I year, 2% for II year and 1% for third year with minimum Rs. 250 and maximum Rs.1.000. c. A & B d. Rs 250 flat for all tax payers uniformly 31. Burden of tax on commodity can be shifted totally to consumers if elasticity of demand is_____. a. Equal to 1 b. Less than one but greater to zero c. Equal to Zero d. Greater than 1 e. None of the above 32. Minimum amount that should be remitted by Central & State Governments through RBI-RFS package (new remittance facility scheme implemented by RBI): a. Rs. 1000 b. Rs.500 c. Rs.250 d. Rs.50 23


33. If taxes are levied according to ability to pay theory it leads to________. a. Proportional taxes b. Progressive taxes c. Regressive taxes d. Equal amount of tax on all the persons e. None of the above. 34. Which one of the following is not included in a capital budget? a. Expenditure on asset formation b. Interest payments c. Money collected from public borrowings d. Small savings collection by the Govt. e. All the above. 35. Interest on EEFC can be given to: a. All EEFC accounts b. Only to Exporter's EEFC accounts c. Only up to USD 1 million d. B & C 36. A forged bank draft has been paid. Which one of the following banks, will lodge the complain with the police? a. Clearing House, b. Collecting Bank, c. Paying Bank d. Issuing Bank e. Bank running the clearing house. 37. Under PNB Tax Saver scheme, what is the minimum and maximum amount: a. Rs. 100 and Rs. 1 Lac b. Rs.1000 and Rs. 1 Lac c. Rs. 1000 and Rs. 5.00 Lac d. Rs. 500 and Rs. 70000 e. None of these. 38. As per new ECB policy, maximum ECB that can be raised for domestic use is ______: a. USD 20 million b. USD 500 million c. USD 10 million d. USD 250 million 39. In. the Total freedom salary account scheme of our bank what is the minimum number of employees from one organization: a. 10 b. 75% of the total number of employees of the organization. c. (1) or (2) whichever is less d. (1) or (2) whichever is more e. None of these. 40. In Bank's balance sheet, provision on standard assets is to be kept under:a. General Reserves b. Specific Reserves c. Other Liabilities and Provisions, d. Provision on standard assets e. None of the above. ANSWERS 1 B 2 B 3 C 4 D 5 B 6 D 7 A 8 D 9 C 10 D 11 D 12 C 13 A 14 C 15 C 16 C 17 D 18 C 19 D 20 B 21 B 22 A 23 A 24 B 25 B 26 E 27 D 28 A 29 B 30 C 31 C 32 A 33 B 34 B 35 D 36 C 37 A 38 A 39 A 40 C

24


1. For redressal of grievance on account of credit card, a customer is given ____ day to prefer a complaint a. 15 b. 30 c. 60 d. None of these 2. TDS is applicable on______: a. FCNR b. NRE SB c. NRE TD d. RFC 3. If a customer is using the ATM of the bank, that has issued the ATM Card, what is the maximum amount of charges that can be recovered for the transaction, by the bank: a. No charges are recoverable b. Rs.20 per transaction c. Rs.10 per transaction d. Rs.2 per transaction 4. Before being classified under doubtful category, an NPA remains substandard for: a. 90 days b. 12 months c. 24 months d. uncertain period 5. Complaint can be made by customer to Ombudsman for credit card problem if customer does not get satisfactory response from the bank within _____ . a. 15 b. 30 c. 60 d. None of these 6. In X and Ys either or survivor FD account, a request for substitution of the names by names A and B is received by the bank: a. possible with consent of X and Y b. possible with consent of A and B c. possible with consent of X, Y, A and B d. this cannot be done 7. Which of the following risk is not a risk associated with outsourcing . a. strategic risk b. compliance risk c. reputational risk d. credit risk 8. For a loan NSCs are pledged / assigned / hypothecated : a. pledged b. assigned c. hypothecated d. kept under lien 9. Under door step banking which type of services can be rendered by banks for individual customers. a. Pick up of cash b. Pick up of instruments c. Delivery of demand drafts d. all these. 10.Short term crop loan becomes NPA, if remains unpaid (after due date) for two/one/three crop seasons : a. Two crop seasons fixed by the bank b.One crop season fixed by the Govt c. 2 crop seasons fixed by the State Govt. d. Two crop seasons fixed by SLBC 11. Door step banking services scheme is required to be reviewed by banks on ____ basis. a. annual basis b. half-yearly basis in the first year c. both d. None of these 12. Under PMRY- eligible subsidy to SHG per member Rs_____with max Rs____? a. 12500-125000 b. 15000-15000. c.15000-100000 d.15000-125000 e. None of the above. 13. No bank will recover any charges for use of ATMs by their own customers or customers of other banks wef: a. Dec 31, 2007 b. Jan 31, 2008 c. Mar 31, 2008 d. April 01, 2009 14. If security of a secured loan is eroded up to __ %, the loan is classified as doubtful NPA : a.10% or more b. 30% or more c.50% or more d. 100% or more 15. As per the Accounting Standard (AS-15) norms advances up to element of Rs____ crores are to be, classified as Retail Advances. a. 1 b. 2 c. 3 d. 5 e. 10 16. A/C opened on 10.12.07. Cheque Book issued on 20.12.07. Two cheques are presented for payment on 27.12.07, which are dated 01.12.07 and 15.12.07. The CTO says that both the cheques can not be paid as one is dated prior to opening of a/c and other is dated prior to issue of Ch. Book. a. Only 2nd cheque can be paid b. It is discretion of the bank to pay or not to pay c. Matter be referred to RMO d. Both can be paid if otherwise in order e. Both should be returned 17. In the Union Budget for 2008-09, the Govt. has proposed commodity transactions tax at the rate of: a. 1.0% b. 0.55% c.0.25% d. 0.17% 18. If an Option can be availed / used any time during the specified / fixed time, is called______? a. Call option b. Put option c. European Option d. American option e. Open option 19. If a customer is using the ATM of the bank, other than that has issued the ATM Card, what is the maximum amount of charges for a balance enquiry that can be recovered for the transaction, by the ATM holder bank: a. No charges are recoverable b. Rs.20 per transaction c. Rs.10 per transaction d. Rs.2 per transaction 20. A person who has right to buy or sell but no obligation to buy or sell is called_____? a. Option buyer b. Option seller c. Put buyer d. Put seller e. None of the above. 21. For deciding whether a transaction should be taken for the same day or not, the cut-off time for epayments under EASIEST is: a. 3 p.m. b . 5 p.m. c. 8 p.m. d. 10 p.m. 25


22 Provision for a standard housing loan account of Rs.12 lac is: a. 2.0% b. 1.0% c.0.4% d. 0.25% 23. The aggregate exposure of a bank to the capital markets in all forms (FB/NFB) should not exceed _____of its net worth as on March 31 of the previous year. a. 20% b. 30% c. 40% d. 50% e. None of the above 24. For the financial year 2008-09, all fresh sanctions or renewals in respect of unrated claims on corporates in excess of Rs 50 crores will attract a risk weight of______. a. 125% b. 150% c. 175% d. 200% e. None of the above. 25. As per latest guidelines Service Area Approach is applicable in respect of______? a. Small loans below 25000/b. PMRY cases c. SSI advances d. Only Govt. Sponsored cases e. All the above. 26. RBI monitoring through DSB Returns is, ____ a. QMS b. Risk Based Audit c. On-site Surveillance Audit d. Off-site Surveillance Audit e. None of the above. 27. For Gold card holder, there is a provision for sanction of standby limits @ of_______of the assessed limits additionally, the maximum period of the Stand By limits can be 180 days. a. 5% b.10 % c. 20% d.No prescribed percentage, it is sanctioned as per requirement on case to case basis. e. None of the above. 28. Under SARFAESI appeal against the decision of DRT can be made to DRAT only if ____% of loan amt is deposited, which can be reduced to________% by the DRAT. a. 75-50 b. 75-25 c. 75-0 d. 50-25 e. 50-0 29. A fraud of Rs 2 crores has taken place. To whom reporting has to be made in case no involvement of staff is suspected? a. CBI, anti corruption wing, b. CBI, economic offence wing, c. RBI, economic offence wing, d. Local Police, anti corruption wing e. None of the above. 30. The new head of International Monetary Fund (IMF) is________. a. Dominique Strauss Kahn b.Rodrigo de Rato c. Horst Koehler d. Michel Camdessus e. None of the above. 31. In case of civil courts, upto how much amount can be filed with Lok Adalats? a. 5 lacs b. 10 lacs c. 20 lacs d. 25 lacs e. None of the above. 32. The eligible loan guarantee limit for Micro & Small Enterprises under. CGTMSE is now raised to Rs______. a. 25 lacs b. 50 lacs, c. 75 lacs d. 100 lacs e. None of the above. 33.On Sub-standard assets, provision @ of ____ % is required to be made on unsecured portion. a. 10% b. 20% c. 50% d. 100% e. None of the above. 34. Presently banks can raise funds overseas upto _____of their net owned funds. a. 10% b. 25% c. 40% d. 50% e. None of the above. 35. UCPDC 600 stipulates that if there is no indication in the credit about the insurance coverage required, the amount of insurance coverage must be at least_______: a. 110% of CIF /CIP value of goods b. 100% of GIF/ CIP value of goods c. 200% of CIF I CIP value of goods d. 50% of the CIF or CIP value of goods 36. Which one of the following is correct with regard to planning commission for estimating the number of persons below poverty line in India? i) Per capital Income ii) Calory intake in rural and urban areas, iii) Family Expenditure, iv) Per capital consumption a. Only (i), (ii) and (iii) are correct b. Only (ii) and (iii) are correct c. Only (i) and (iv) are correct d. Only (i), (iii) and (iv) are correct e. All are correct 37. According to FEDAI guidelines, purchase contracts shall be cancelled at the bank's ______on the date of cancellation of the forward contract. a. T.T, selling Rate b. Bill selling Rate c. T,T. purchase Rate d. Bill purchase Rate. 38. Bank is In Overbought position and the currency is depreciating. Bank will_______? a. Earn profits b. Suffer loss c. No effect d. Hedge risk e. None of the above. 39. Which is the new item added to the "Force Majeure" in UCP 600? a. Floods b. Earthquake c. Tsunami d. Act of Terrorism 40. In NPA a/c if the value of the Security is less than 50% of the value assessed at the time of last inspection, the same is to be directly transferred to ________category. a. S. Std. b. D. Fulc. Loss d. Will be written off directly. e. No such provision exists.

26


ANSWERS 1 C 8 B 15 D 22 C 29 B 36 B

2 9 16 23 30 37

D D D C A A

3 10 17 24 31 38

A D D B C B

4 11 18 25 32 39

B C D D B D

5 12 19 26 33 40

B D A D B B

6 13 20 27 34

D D A C B

7 14 21 28 35

D C C D A

27


1. IFSCI Code has to be printed by banks on_________: a. Cheque Books b. All their Stationery c. Both d. Neither 2. Which one of the following best explains the term "Hybrid Loans"? a. A mixture of various loan products some of which are given as cash whereas others are given as assistance in the form of consultancy, technical know how, marketing plans etc. b. Loans given to a group of people for different needs but who share a joint responsibility to repay it e.g. financing to Self Help Groups. c. Loans given under specific schemes where fixed rate loans are converted to floating rate loans after a certain period of time. d. A mixture of loan product which is given in the shape of loan, but later on can be converted into capital at the option of lender in whole or in parts. e. None of the above. 3. Physical possession of a mortgaged security can be taken by the bank in case loan is not repaid under the provisions of : a. SARFAESI Act 2002 b. Indian Contract Act c. DRT Act d. all the above 4. LAFFER curve relates to_________: a. Tax rate & revenue b. Tax Rate and Indirect tax rate c. Demand and supply d. GDP and Money supply e. None of these 5. In UCP 600, the Nominated Bank, the Confirming Bank and the Issuing Bank shall have a maximum of _______each following the day of presentation to determine if a presentation is complying the terms and conditions. a. 5 banking days b. 7 banking days c. 10 banking days d. 15 banking days 6.The compliance department in a bank should be headed minimum by an officer of the rank of ___ a. General Manager b. Dy. General Manager c. Executive Director d.None 7. Financial Intelligence Unit (FIU) is maintained by _______: a. RBI b. CBI c. Each bank's HO d. Ministry of Finance 8. Who cannot be a partner in a partnership Firm? a. Pvt. Ltd. Co b. Firm c. Trust d. HUF e. Minor 9. Legal heirs of a borrower are liable_______. a. For the entire amount of loan even after expiry of limitation . b. Only to the limit of the amount inherited by them from the borrower c. Only if they have signed some security form d. Not liable at all e. None of the above. 10. Sterilization operations are carried by RBI control _____? a. Inflation b. Deflation c. Liquidity due to Forex inflow d. Over heated Stock market e. All the above. 11. The objective of corporate governance is to create an environment to help the operating management to enhance the stake-holders value . a. yes b. no 12. Under UCPDC 600, a commercial invoice for an account in excess of the amount permitted by the credit _______by a nominated bank I conforming bank I issuing bank. a. May be accepted b. Provided the bank does not 'honour' or 'negotiate' for an amount in excess of that permitted by the credit. c. Both A & B d. May not be accepted 13. Under SGSY scheme, what is the %age of amount financed that should go towards women? a. 25% b. 30% c.40% d.50% c. None of the above. 14. As per RBI directives the Banks can't give brokerage / Commn. Etc, to a customer for fetching deposits but can give an inexpensive gift not exceeding Rs._____ . a. 250 b. 100 c. 50 d. 500 e. None of the above. 15. In case the foreign exchange (Foreign currency notes and Traveler cheques) is not used for the purpose or for any other permissible purposes, the unused portion is to be surrendered within a maximum period of ______from the date of its purchase. a. 60 days, b. 90 days, c. 6 months d. 9 months e. None of the above. 16. Borrowings in Call I Notice money Transactions of Scheduled commercial banks is linked with___ of the bank? a. Net o/s Loans b . Net o/s Deposits c. Net Owned funds d. Capital fund e. None 17. Loss assets which are more than 2 years old without any legal action having been initiated shall be reviewed on H/Y basis by ACB, having o/s of Rs______ Lacs & above. 28


a. 1.00 b. 2.00 c. 5.00 d. 10.00 e. 50.00 18. Under UCPDC 600, a transport document is dated as 1-01-2007. But a stamp on the face of the document shows 2-1-2007 as date of dispatch. Which date is deemed to be date of shipment? a. 2-1-2007 b. 1-11-2007 c. Either d. Should call for clarification 19. Which one of the following is not correct with regard to quoting of PAN number for banking transactions? a. Opening of an account with banking company in cash b. Single time deposit receipt exceeding Rs 50000/- with a bank in cash, c. On application for issue of DD/MT etc for cash, if amount is Rs 50000 or more. d. For making deposit under Tax Saver Scheme, irrespective of the amount. e. None of the above. 20. Which one of the following is not true about the Participatory Notes (PNs)? a. It is a financial derivative instrument issued against an underlying security (shares), b. Through PNs, the holder is allowed to dividend, or capital gains, earned from underlying security, c. PNs are used by investors or hedge funds which are not directly allowed to invest in stock market. d. Under the arrangement, a SEBI registered FII buys the shares on behalf of the foreign investors and issues them PNs in lieu of those shares. e. Investor, even though investing through PN, has to get itself registered with the stock exchange through which he is dealing. 21. Our Bank has recently formulated a scheme for financing of Joint liability Group of tenant farmers. Joint liability Group (JLG) is an informal group consisting of preferably_______ individuals coming together and engaged in similar type of economic activity. a. 5 to 10 b. 10 to 20 c. 4 to 10 d. 8 to 12 e. No minimum/maximum criteria 22. Under the Basic Indicator approach for operational risk banks are required to maintain capital for operational risk equal to the fixed percentage of _____(denoted as i.e alpha) of the ____income of previous three years. a. 15% of Gross Income b. 15% of average Gross Income c. 15% of average positive gross Income d. 15% of average net Income e. 15% of average positive net Income 23. Best practice code guidelines of RBI are based on the recommendations of _____ committee. a. Narasimham b. Mitra c. Ghosh d. None of these 24. Nature of securities dealt by RBI through LAF / MSS is/are _____? a. Eligible securities for SLR b. Non-SLR securities c. Long Term Securities d. Negotiable Securities e. Non transferable Securities 25. A has withdrawn cash amounting to Rs.90000 from his saving account and Rs.55000 from his overdraft account and got his premature FDRs cancelled for Rs.19000 on a single day. What is the amount of BCTT deducted from these transactions : a. Rs.55 b. Rs.145 c.Rs.164 d. Rs.90 26. Accounting standard No.17 which is applicable for banks also, relates to ____ . a. accounting of intangible assets b. segment reporting c. disclosure of provisions d. None of these 27. Failure of internal process is categorized under which type of Risk? a. Internal Risk b. Operational Risk c. Process Risk d. Credit Risk e. Normal Banking-Risk 28. What is not the function of a Management Accountant.. ? a. Collection of Data b. Clubbing of data c. Analyzing of data d. Feeding of data e. None 29. Waivement / Write off of a loan account of the director of the Bank / of the company in which interest of the close relative of the director of the Bank is involved can be considered with approval of the______? a. CMD b. RBI c. Board of directors of the Bank d. ED e. MC 30. In A/Cs with o/s of Rs ______ lacs & above, when write off is considered, it should be backed by report of Detective Agency/ Investigating agency w.r.t. the traceability of the obligants -ascertaining the attachable assets. a. 5.00 b. 10.00 c. 20.00 d. 25.00 e. 50.00 31. The hypothesis of vicious circle of poverty points to inter relation between_________ . a. Productivity and Income b. Income and Population c. Inflation and high consumption d. Surplus labor and disguised unemployment 29


e. None of the above. 32. Compliance of accounting standards in banks is done on the directions given by RBI on the recommendations of _____ committee . a. ND Gupta b. Ghosh c. Mitra d. None of these 33. REPO operations by RBI means_______, a. Increase in Govt Securities in the market b. Decrease in Govt Securities in the market c. Decrease in cash flow in the market d. No Change e. G. Sec. are not related with Repo 34. Indifference curve compared to demand analysis is ________. a. Inferior b. Superior c. Equal d. No fair comparison can be drawn e. None of the above. 35. If a locker is not operated for __ years in case of medium risk customer and __ year for high risk customer, it is either to be operated or surrendered by the customer : a. 3 years & 3 year b. 1 years & 1 year c. 1 years & 3 year d. 3 years & 1 year 36. Maximum project cost in case of agro-clinics and agri-business centres in case of an individual and joint venture is: a. Rs.5 lac and Rs.50 lac. b. Rs.10 lac and Rs.40 lac. c. Rs.10 lac and Rs.20 lac. d. Rs.10 lac and Rs.50 lac. 37. US Dollar is depreciating as compared to world currencies because of________? a. Current account deficit b. Increasing oil prices c. Political instability d. IT Growth of India e. None of these 38. In cash budget system, the bank provides finance on the basis of : a. Deficit b. surplus c. surplus or deficit whichever is lower d. surplus or deficit whichever is higher 39. A loan is sanctioned by Bank A and Bank B. Bank B is lead bank and its account is irregular for more than 150 days. Account of Bank-A is conducted as a regular account. Assets classification for Bank-A will be: a. Standard Account b. Sub-standard Account c. Doubtful Account d. Special mention Account 40. No one can earn super profits in stock exchange. This is the basis of______. a. Efficient market theory b. Keyns theory c. Peter Drucker theory d. Stock exchange theory e. None of the above. ANSWERS 1 8 15 22 29 36 A D C C B D 2 9 16 23 30 37 C B D B C A 3 10 17 24 31 38 A C C A A A 4 11 18 25 32 39 A A A A A A 5 12 19 26 33 40 A C E B B A 6 13 20 27 34 B C E B B 7 14 21 28 35 D A C A D

30


31


1. What is the additional rate of interest that is to be charged on adhoc Pre-shipment credit limits sanctioned to exporters? a.0.25% b. 0.10% c.0.50% d. 2.00% e.None of the above. 2. In NPA classification an account moves from standard to loss category directly when : a. There is loss of security to the extent of 10% or more. b. There is loss of security to the extent of 50% or more. c. There is loss of security to the extent of 90% or more. d. Standard account can move to sub-standard or doubtful category only 3. What is the maximum ceiling on Loans to Individual from banking system against share in demat form? a. 10 l

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