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Banking Awareness (Practice Test)

Description: This test could be taken by all students of commerce and banking
Number of Questions: 25
Created by:
Tags: Commerce Banking Banking Awareness
Attempted 0/25 Correct 0 Score 0

Which of the following recommendations were submitted by Narasimham Committee?

  1. Reduction of CRR and SLR

  2. Deregulation of interest rates

  3. Prudential norms

  4. All of the above


Correct Option: D

Which of the following is not a priority sector advance?

  1. Retail loans with certain limits

  2. Housing loans with certain limits

  3. Real estate loans

  4. Small business


Correct Option: C

The relationship between a banker and a customer is primarily that of a

  1. debtor and a creditor

  2. bailor and a bailee

  3. trustee and a beneficiary

  4. none of the above


Correct Option: A

Mutual funds offer

  1. open ended schemes

  2. close ended schemes

  3. growth oriented schemes

  4. all of the above


Correct Option: D

Which of the following does an aggrieved customer have for the redressal of his grievances?

  1. Filing a case in a consumer's court

  2. Going to ombudsman

  3. Complaining with the higher authorities

  4. All of the above


Correct Option: D

Garnishee order is issued by

  1. income tax authorities

  2. sales tax authorities

  3. the court of competent jurisdisction

  4. a government department


Correct Option: C

Gift cheques can be purchased by

  1. individual customer and non-customer

  2. partnership firms

  3. private limited companies

  4. big corporate houses


Correct Option: A

Bankers' lien does not apply to

  1. safe custody deposits

  2. bills of exchange entrusted for a specific purpose

  3. documents or properties left in the bank inadvertently

  4. all of the above


Correct Option: D

Clayton's case is referred commonly to the

  1. Right of set off

  2. Right of lien

  3. Right of appropriation

  4. None of the above


Correct Option: C

The chairman of the committee on computerization in banks was

  1. Narasimham

  2. Dr. C. Rangarajan

  3. Bimal Jalan

  4. Y.V.Reddy


Correct Option: B

Bankers' pay order is generally issued by the banker for

  1. local payments

  2. inter-state payments

  3. payment outside the country

  4. payment to other bankers


Correct Option: A

The drawee of the bank draft has received information about the loss of the draft from the purchaser. The drawee banker should

  1. stop payment

  2. exercise caution

  3. refuse to recognize the notice/information

  4. issue a duplicate draft


Correct Option: B

When a customer having fixed deposits with a bank needs urgent money, he should be advised

  1. to close the deposit before the due date

  2. to obtain a loan against the deposit upto the limit allowed

  3. to part withdrawal or use flexi deposit facility

  4. to wait till the due date as fixed deposit cannot be closed before the due date


Correct Option: B

A customer requests the banker to issue bearer demand draft. The banker should

  1. issue the bearer demand draft by striking the word 'order' and writing the word 'bearer

  2. refuse to issue the same

  3. request the customer to go the head office

  4. request the head office seeking permission


Correct Option: B

When the customer is operating the locker,

  1. no other person should be present in the safe room

  2. the banker should remain with the customer in the safe room

  3. the banker should not remain with the customer in the safe room but other customers may be allowed to join to operate other lockers

  4. none of the above


Correct Option: A

Which of the following is a negotiable instrument?

  1. Fixed deposit receipt

  2. Savings bank account pass book

  3. Cheque

  4. Gift coupons


Correct Option: C

Addition of names in a fixed deposit receipt can be made

  1. at the request of any of the joint deposit account

  2. at the request of all the four joint deposit account holders

  3. at the request of all the three (or less) joint deposit account holders

  4. none of the above


Correct Option: C

In which of the following accounts, nomination of more than one person is accepted?

  1. Savings bank account

  2. Fixed deposit account

  3. Safe deposit locker

  4. Loan accounts


Correct Option: C

Which of the following accounts does not earn any interest but also liable to pay service and incidental charges?

  1. Current account

  2. Savings bank account

  3. Fixed deposit account

  4. Reinvestment account


Correct Option: A

Pay-in slip is used

  1. for withdrawing the money from a bank account

  2. for depositing the money in a bank account

  3. for deposit of gold or other commodity in a loan account

  4. all of the above


Correct Option: B

Which of the following requires introduction by another current account holder?

  1. Current account

  2. Savings account

  3. Fixed deposit account

  4. Safe deposit account


Correct Option: A

Which of the following insist(s) on higher initial deposits in a new bank account?

  1. Foreign and new generation private sector bank

  2. Foreign and old private sector bank

  3. State bank group

  4. Nationalised banks


Correct Option: A

If an account is not operated for a defined period (which changes from bank to bank), it can be called

  1. dormant or inoperative account

  2. frozen account

  3. attached account

  4. segregated account or classified account


Correct Option: A

In case, a customer desires to close his account with a bank,

  1. the customer has to give valid reasons for closure

  2. the banker can get feedback from the customer and influence/convince customer to continue his account and then close his account, if customer does not agree

  3. the banker can close the account on oral request

  4. none of the above


Correct Option: B

Where neither the debtor nor the debtor signifies the manner of appropriation then the payment shall be applied in the order of

  1. time of debt (earliest debt first) irrespective of the limitation period

  2. larger of the amounts first

  3. smaller of the amounts first

  4. None of the above


Correct Option: A
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