Modern Banking (17Uec4a4) K1 Level Questions Unit
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MODERN BANKING (17UEC4A4) K1 LEVEL QUESTIONS UNIT -1 1. The apex institution in agricultural finance is A. NABARD B. EXIM Bank C. Reserve Bank of India D. IDBI 2. Which banks which accept deposits from the public and lend them mainly to commerce for short periods? A. Commercial Bank B. Industrial Bank C. Agricultural Bank D. Central Bank 3.The national bank was established in the year_______ (a) 1982 (b) 1992 (c) 1962 (d) 1952 4. Which bank is otherwise called as Investment banks? A. Exchange Bank B. Reserve Bank of India C. Industrial Bank D. Agricultural Bank 5. Expand NABARD____________ 6. IFCI was established in the year________________ (a) 1932 (b) 1948 (c) 1938 (d) 1928 7. A company who accepts demand deposit is called A. Joint stock company B. Banking company C. Manufacturing company D. IT company 8. Current Accounts are mainly opened by A. Professionals B. Agriculturalist C. Salaried class people D. Trading and industrial concern 9. Who controls credit in India? A. Government of India B. Reserve Bank of India C. State Bank of India D. Indian Bank 10.ExpandS IDBI__________ 11. Fixed Deposits is otherwise called as A. Accrued Deposits B. Time deposits C. Recurring Deposits D. Demand Deposits 12. The primary relationship between banker and customer is a ------------------ relationship A. Mutual B. Contractual C. Personal D. None of the above 13. Which one of the following is the most important relationship between banker and customer A. Debtor and Creditor B. Bailee and Bailor C. Agency and Principal D. Trustee and Beneficiary 14. When customer's account overdrawn or when customer has taken loan from banker, then the customer A. Creditor B. Agent C. Debtor D. Bailor 15. When banker received deposits from the customer, then the banker becomes -------------- of the customer A. Debtor B. Creditor C. Bailee D. Trustee 16. ------------- accepts the bailment of certain things on the condition that the things bailed will not utilized A. Bailor B. Trustee C. Bailee D. Beneficiary 17. Which bank is otherwise called as Investment banks? A. Exchange Bank B. Reserve Bank of India C. Industrial Bank D. Agricultural Bank 18. Foreign exchange banks specialized in providing . A. long term loans B. short term loans C. agricultural loans D. foreign exchange 19. In India, the law regulating the Negotiable instruments are A. Banking Regulation Act 1949 B. Reserve Bank of India Act 1934 C. Negotiable Instruments Act 1881 D. Companies Act 1956 20. RBI was set up in the year A. 1934 B. 1935 C. 1936 D. 1937 UNIT-II 1. The rate at which RBI discounts approved bills is . A. Bank rate B. Interest rate C. Exchange rate D. Discount rate 2.IDBI was established in the year________________ (a) 1964 (b) 1976 (c) 1946 (d) 1936 3. In a bill of exchange, drawee is the person A. who draws the bill B. on whom the bill is drawn C. to whom the payment of the bill is to be made D. to whom the payment of the bill is not to be made 4. It is a ----------------- obligation of a banker to honour the cheques of the customer drawn against current account A. Mutual B. Statutory C. Unstatutory D. All of the above 5. Which bank have given the instructions to the commercial banks regarding the immediate credit of outstation cheques? A. Reserve Bank of India B. Central Bank C. World Bank D. All of the above 6. Dishonour of cheque by a banker without any justifiable reason is called A. Valid dishonour of cheques B. Unmindful dishonour of cheques C. Negligence dishonour of cheques D. Wrongful dishonour of cheques 7. Special damages refers to damages payable by a banker to his customer for the actual ---------- --- loss suffered by customer A. Financial B. Special C. Unpecuniary D. Unfinancial 8. ---------- is the right of a person to retain the property of another person in his possession until the debt from that owner of that property is repaid A. Lien B. Retainment C. Retrenchment D. Libel 9. Usually incidental charges are levied on which type of account holders A. Savings account B. Fixed deposit account C. Current Account D. Recurring deposit account 10. RBI introduced 14-day intermediate Treasury Bills and 14-day Treasury bills on? a) 1994 b) 1997 c) 1984 d) 1972 11.RBI introduced a bill Rediscounting Scheme in? a) 1997 b) 1956 c) 1970 d) 1984 12.RBI introduced the system of repurchase of dated Government securities through addition at fixed cut- off rate of interest is? a) Reverse Repos b) CRR c) LAF d) SLR 13. Expand IFCI_________ a) Indian financial corporation of India b) Industrial finance corporation of India c) Indian finance corporation of India d) Industries finance corporation of India. 14. In the which type of deposit, the high rate of interest is provided by the Bank? A. Current Account B. Recurring Deposit Account C. Fixed Deposit Account D. Savings Account 15. In Negotiable Instruments Act 1881, which section defines promissory note? A. Section 1 B. Section s C. Section 3 D. Section 4 16. A cheque dated subsequent to the date of its issue is A. Post-dated cheque B. Blank cheque C. Crossed cheque D. Account payee cheque 17. A cheque date before the date of its issue is A. Worth cheque B. Full worth cheque C. Preemptive cheque D. Ante dated cheque 18. A drawer in the bill of exchange can also be a A. Paymaster B. Payee C. Banker D. Creditor 19. Who is primarily liable on a promissory note? A. Holder B. Maker C. Drawee D. Endorser 20. How many parties are mainly involved in Promissory Note? A. One B. Five C. Two D. Three UNIT-III 1. In a bill of exchange, drawee is the person A. who draws the bill B. on whom the bill is drawn C. to whom the payment of the bill is to be made D. to whom the payment of the bill is not to be made 2. ------------ is a dead cheque A. Post-dated cheque B. Stale cheque C. Ante dated cheque D. Pre-dated cheque 3. Name the person to whom the amount of the cheque is payable? A. Drawer B. Payee C. Drawee D. Acceptor 4. Discounting of bills of exchange is A. Clean advance B. Secured advance C. Neither clean advance nor secured advance D. Unsecured advance 5. ------ is an endorsement in which the endorser merely signs his name on the book of the instrument without mentioning the name of the person to whom the instrument is endorsed A. Blank Endorsement B. Restrictive Endorsement C. Qualified Endorsement D. San Frais Endorsement 6. Blank endorsement is otherwise called as A. Full Endorsement B. Qualified Endorsement C. General Endorsement D. Special Endorsement 7. What does the term "PIN" stands for A. People Identification Number B. Personal Instruction Number C. Personal Identification Number D. Personal Information Number 8. The ATM installed at bank premises is called as -------- ATM A. Off-site B. Branch C. None of the above D. On-site 9. RTGS means A. Real Towards Gross Settlement B. Real Turn Gross Settlement C. Real Technique Gross Settlement D. Real Time Gross Settlement 10. When the banking operations are carried out through electronic means, it take the form of A. E-banking B. M-banking C. T-Banking D. None of the above 11. Banking transaction that takes placed in a virtual ambience on the website of a banking company is termed as A. Internet Banking B. Telephone Banking C. Mobile Banking D. Modern Banking 12. All banks having operations in India and intending to offer Internet Banking services to the public must obtain an approval for the same from A. Government of India B. Central Bank C. Reserve Bank of India D. All of the above 13. Which of the following term do not represent any part of Banking technology? A. NEFT B. RTGS C. ITC D. EPS 14. Which electronic fund transfer system run on the basis of "Deferred Net Settlement" A. NEFT B. RTGS C. SMS D. BIFSC 15. Electronic payment system is a/an A. Software B. Hardware C. Application D. Package 16. The bank can consider ------------------ lien as their protection against loss on loan or overdraft which was given to its customers A. Special B. Particular C. General D. Lending 17. The rate of interest charged for the loan by the banker compared to overdraft and cash credit is generally A. High B. Low C. Same D. Based on the amount 18. Which type of account holder has the permission to overdraw the amount from his/her account A. Savings account B. Current account C. Fixed deposit account D. Recurring deposit account 19. The main aim of a banker for performing the subsidiary services is to earn a ------------ of the customers A. Money B. Documents C. Valuables D. Goodwill 20. The services rendered by a banker as an agent of his customers are called A. Principal services B. Agency services C. General utility services D. Social services UNIT-IV 1. The rate at which RBI discounts approved bill of exchange is A. Bank rate B. Interest rate C. Exchange rate D. Discount rate 2. Expand NEFT A. National Electronic Fund Transfer B. Neutral Electronic Fund Transfer C. Nominal Electronic Fund Transfer D. Natural Electronic Fund Transfer 3. Which section of Negotiable Instruments Act 1881, defines endorsement A. Section 10 B. Section 15 C. Section 18 D. Section 20 4. ATMs are primarily used for performing the ____________ functions A. Infrastructure B. Computer based C. Banking D. Hospitalized 5. EFT is introduced by A.