Banking MCQ Test

Banking MCQ Test

1. 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
Answer: A

2. A cheque date before the date of its issue is ————
A. ante dated cheque.
B. full worth cheque
C. preemptive cheque.
D. worth cheque
Answer: A

3. A drawer can also be a ————
A. Payee.
B. paymaster.
C. banker
D. creditor
Answer: A

4. The rate at which RBI discounts approved bill of exchange is ————
A. bank rate
B. interest rate
C. exchange rate
D. discount rate
Answer: D

5. The Word Bank has been derived from a Latin word which means ————
A. a bench for the keeping, lending and exchanging etc. of money.
B. an institution for meeting people.
C. place, where persons can relax
D. an institution for coordinating people
Answer: A

6. A company who accepts demand deposit is called ————
A. banking company
B. joint stock company
C. manufacturing company
D. IT company
Answer: A

7. The lien is ————
A. method to create charge over customers property
B. not used for respective customers account.
C. not used for loan
D. used for loan
Answer: A

8. Negotiable instruments are defined under ————
A. Section 52 of the Banking regulation act, 1949
B. Section 25 of the Reserve bank of India act, 1934.
C. Section 13 of the Negotiable instruments act, 1881.
D. Section 14 of the companies act, 1956.
Answer: C

9. Who is primarily liable on a promissory note?
A. Holder.
B. Maker.
C. Drawee.
D. Endorser.
Answer: B

10. A Cheque is always payable on ————
A. demand.
B. a specified future date
C. the last day of the grace.
D. the will of the paying banker.
Answer: A

11. A promissory note ————
A. can be drawn in sets
B. cannot be drawn in sets
C. indemnity bond is also necessary.
D. indemnity bond is not necessary.
Answer: B

12. In a promissory note the words or order are ————
A. necessary to insert.
B. not necessary to insert
C. not necessary but it is usual to insert
D. necessary it is usual
Answer: C

13. Bill of exchange can be drawn payable ————
A. to bearer on demand
B. either on demand or after a fixed time
C. to bearer in presence
D. to bearer not in presence.
Answer: B

14. Until a bill of exchange is accepted, primary liability there on is that of ————
A. Payee.
B. Drawee.
C. Drawer.
D. Acceptor.
Answer: C

15. A bill of exchange is drawn for a maximum period of ————
A. 90 days.
B. 120 days.
C. 180 days.
D. 360 days.
Answer: C

16. Negotiable gives to the transferee ————
A. the same title
B. no title
C. no better title
D. better title
Answer: D

17. ———— is a dead cheque.
A. Post dated cheque
B. Stale cheque.
C. Ante dated cheque.
D. Pre dated cheque
Answer: B

18. Name the person to whom the amount of the cheque is payable?
A. Drawer.
B. Payee.
C. Drawee.
D. Acceptor
Answer: C

19. A pledge can be made in respect of ————
A. building.
B. shares.
C. motor car.
D. book debts
Answer: B

20. A collecting banker is given the statutory protection only when he acts as ————
A. a holder
B. an agent.
C. a holder for value.
D. a holder in due course.
Answer: D

21. The law of limitation applies to a saving deposit account from the date of ————
A. opening it.
B. closing it.
C. demanding it.
D. operating it.
Answer: A

22. The most liquid asset is ————
A. gold.
B. bill of exchange.
C. government bonds.
D. cash.
Answer: D

23. The right of set – off is nothing but a ______.
A. right to sell.
B. right to retain.
C. right to combine
D. right to appropriate
Answer: C

24. Discounting of bills of exchange is ____.
A. clean advance
B. secured advance
C. neither clean advance nor secured advance.
D. unsecured advance
Answer: C

25. Expansion of SWIFT is ______.
A. Society for worldwide inter bank financial telecommunication
B. Security for worldwide inter bank financial telecommunication
C. Secured for worldwide inter bank financial telecommunication
D. Safety for worldwide inter bank financial telecommunication.
Answer: A

26. Expansion of NEFT ————
A. National Electronic Fund Transfer.
B. Neutral Electronic Fund Transfer.
C. Nominal Electronic Fund Transfer.
D. Natural Electronic Fund Transfer.
Answer: A

27. Expansion of EFT ————
A. Electronic Fund Transfer
B. Economic Fund Transfer.
C. European Fund Transfer
D. Electric Fund Transfer.
Answer: A

28. KYC means ————
A. know your customer.
B. know your creditor.
C. know your cost.
D. know your card.
Answer: A

29. RTGS means _______.
A. Real Time Gross Settlement.
B. Real Turn Gross Settlement.
C. Real Technique Gross Settlement
D. Real Towards Gross Settlement
Answer: A

30. Core banking is a __________ branch computerization model.
A. decentralized
B. centralized.
C. unified
D. ATM
Answer: A

31. The objective of computerization in Bangladesh  is to _____.
A. replace men with machines
B. make the work-life more meaningful
C. control the manpower
D. control the economy
Answer: A

32. ATMs are primarily used for performing the __________ functions.
A. infrastructure
B. computer-based
C. banking
D. hospitalized
Answer: C

33. Expansion of ECS_________.
A. Electronic Clearing system
B. Electronic centered system.
C. Electronic cross systems
D. Electronic conversion systems.
Answer: A

34. ________ is a technology that allows you to access your bank account from a mobile device.
A. Home banking
B. Mobile banking
C. Internet banking.
D. Television banking
Answer: B

35. Which has been made possible by the application of information technology?
A. Date mining.
B. Date warehousing
C. Databases.
D. Support systems.
Answer: B

36. ______ is a technique to reveal the strategic information hidden in the data warehouses.
A. Data mining.
B. Data warehousing
C. Data bases
D. Support systems
Answer: A

37. ———— is the demographic information about customers to help banks focus on particular segments
A. Date mining
B. Date warehousing
C. Data analysis
D. Support systems
Answer: C

38. ————is to analyze the performance of a set of securities and fundamental data of the companies that issue the securities.
A. Date mining
B. Date warehousing
C. Data analysis.
D. Stock portfolio creation and analysis.
Answer: C

39. Communication technology ————
A. facilitates the processing of data.
B. helps in transmission of data
C. enables decision support system.
D. is a tool for data mining.
Answer: B

40. How many standard message categories in SWIFT?
A. 10 types
B. 9 types
C. 8 types.
D. 7 types.
Answer: B

41. The banking operations are carried through a single banking office is _______.
A. branch banking
B. unit banking
C. commercial banking
D. universal banking
Answer: B

42. The banking operations are carried through a network of branches are called____.
A. branch banking
B. unit banking.
C. commercial banking.
D. universal banking
Answer: A

43. The banking which attracts deposits and lending for only short periods is known as _______.
A. commercial banking
B. unit banking
C. branch banking
D. development banking
Answer: A

44. Deposit banking is also called as ___.
A. commercial banking.
B. unit banking.
C. branch banking
D. development banking.
Answer: A

45. The obligation of a banker to honour his customers cheque is extinguished on receipt of an order of the court, known as the ————
A. garnishee order.
B. bank order
C. RBI order.
D. debtor order
Answer: A

46. A Garnishee order is an order issued by ————
A. Income tax officer
B. official liquidator
C. court.
D. RBI
Answer: C

47. The deposit with the bank for a fixed period which is specified at the time of making the deposit is called ————
A. saving deposit
B. current deposit
C. bank deposit
D. fixed deposit
Answer: D

48. Interest on fixed deposits is compounded ————
A. monthly
B. quarterly.
C. half yearly
D. yearly basis
Answer: B

49. A banker should not stop operation of the account if the customer ————
A. dies.
B. becomes insolvent
C. changes his business premises.
D. becomes insane
Answer: C

50. Floating rate of interest is the rate which is ————
A. . decided by the bank arbitrarily.
B. linked with another relevant rate.
C. fixed by the Indian banks association
D. notified by the reserve bank of India.
Answer: B

51. MICR refers to ______.
A. Magnetic Ink Character Recognition
B. . Magnetic Ink Company Recognition
C. Magnetic Ink Cross Recognition.
D. Magnetic Ink Community Recognition.
Answer: A

52. If the endorser signs his name only the endorsement is said to be _______.
A. . endorsement in blank
B. . endorsement in full.
C. . conditional endorsement
D. restricted endorsement.
Answer: B

53. A cheque with Not negotiable crossing _____.
A. cannot be negotiated
B. can be negotiated and the endorsee title is not affected in any case.
C. can be negotiated but the holder of the cheque will not have title better than that of the person from whom he took it.
D. is always deemed as crossed specially
Answer: C

54. Who can cancel the crossing on a cheque?
A. The payee.
B. The paying banker.
C. The endorser.
D. . The drawer.
Answer: D

55. Which is not possible for the payee of a cheque?
A. To convert a bearer cheque into an order cheque.
B. . To convert an open cheque into a crossed cheque.
C. To convert general crossing into special crossing
D. To make a specially crossed cheque into generally crossed cheque.
Answer: D

56. A banker should not refuse payment of a cheque if ————
A. . the cheque is a post dated cheque.
B. . the cheque is drawn on another branch of the same bank.
C. the cheque contains an apparent material alteration which is not properly authenticated by the drawer.
D. . the cheque bears more than two endorsements
Answer: D

57. The acceptor for honour ________.
A. . Does not bear any liability as he is not a party to the bill.
B. Bears the liability similar to the person for whose honour he accepts the bill.
C. . Acts as a surety to the drawee.
D. Bears no liability.
Answer: B

58. The cause of dishonour of cheque much be _________.
A. forget signature of drawer.
B. . incomplete cheque.
C. insufficiency of funds in the account.
D. any material alteration.
Answer: C

59. REPO facility means _______.
A. . borrowing of money without security.
B. borrowing on the basis of guarantee.
C. borrowing against term loans.
D. borrowing against securities on repurchase basis.
Answer: D

60. Aggregate capital market exposure for banks is prescribed as 40 per of ____.
A. . net worth.
B. aggregate time and demand liabilities.
C. total investments
D. . total assets of a banking company.
Answer: A

61. A negotiable instrument not drawn or make in India is called_______ instrument.
A. inland.
B. foreign
C. time.
D. . clean
Answer: B

62. A term loan is not secured by ______.
A. legal mortgage of fixed assets.
B. pledge of goods.
C. . hypothecation of movable assets equitable mortgage
D. equitable mortgage.
Answer: B

63. According to section 19(b.) of the banking regulation act, a bank can hold shares in a company not exceeding ____.
A. 20per
B. 25per
C. . 30per
D. 35per
Answer: C

64. For issuing a duplicate demand draft, the purchaser is required to submit?
A. Guarantee of a third party
B. . Collateral security
C. Indemnity bond.
D. . Undertaking from the payee.
Answer: C

65. The relationship between the hirer of a locker and banker is that _____.
A. principal and agent
B. lessee and lessor.
C. debtor and creditor.
D. pledge and pledger.
Answer: C

66. A debit card holder makes payment for purchases ______.
A. After 15 days.
B. . After 20 days.
C. After a month.
D. Immediately through his account.
Answer: D

67. Credit information report contains ____.
A. . a recommendation.
B. . a guarantee about repayment.
C. for taking credit decisions.
D. . for underwriting the shares of the borrower company.
Answer: C

68. Credit information furnished by credit information company to a bank can be used by it ____.
A. for any purpose
B. . for publication in its annual report
C. for taking credit decisions
D. . for underwriting the shares of the borrower company.
Answer: C

69. The consumer Credit Bureau covers credit availed by ________.
A. . individuals
B. . private and public limited companies
C. . proprietary concerns
D. banks.
Answer: A

70. The relationship between a banker and a customer is _________.
A. . that of a debtor and creditor
B. . that of a creditor and a debtor.
C. primarily that of a debtor and a credit
D. that of a debtor and agent
Answer: C

71. The banker has a lien on ________.
A. . bonds given for collection.
B. . bonds given for safe custody
C. . bonds left by mistake
D. . bonds given for safe.
Answer: A

72. The banker has a statutory obligation to _______.
A. . honor customers cheques.
B. . exercise lien.
C. maintain secrecy of his customers accounts
D. . honor customers bills
Answer: A

73. The following one is not a material alteration.
A. . Alteration of crossing.
B. Alteration of place of payment.
C. . Conversion of blank endorsement into full endorsement
D. Alteration of the payees name.
Answer: C

74. The paying banker can get protection for a materially altered cheque provided ————
A. . the alteration is not apparent.
B. he makes payment in due course.
C. the alteration is immaterial.
D. . i & ii together
Answer: D

75. The safest form of crossing is ————
A. . general crossing
B. . special crossing
C. . double crossing.
D. . a/c payee crossing.
Answer: D

76. Endorsement signifies that the ————
A. . endorser has got a good title.
B. endorsers signature is genuine.
C. previous endorsements are genuine.
D. . All of the above.
Answer: D

77. The biggest constraint in E-banking is ————
A. start-up cost.
B. maintenance cost.
C. training cost.
D. security cost.
Answer: A

78. The credit card offers _______.
A. . revolving credit for certain period.
B. payoff the entire amount of card usage.
C. on-line recover of amount of card usage.
D. only amount.
Answer: A

79. The debit card offers _______.
A. revolving credit for certain period.
B. payoff the entire amount of card usage.
C. on-line recover of amount of card usage.
D. only amount.
Answer: C

80. Mobile banking offers the following.
A. Withdrawal of cash anywhere in India
B. Statement of account for a specific period.
C. Transfer of funds from one account to another account.
D. Balance enquiry.
Answer: D

81. Merchant bankers are ————
A. financial Brokers.
B. financial Intermediaries
C. . credit Appraisers.
D. underwriters.
Answer: B

82. Merchant bankers activity relate to ————
A. . equity and equity related finance.
B. debt and debt related finance.
C. fund business.
D. non-Fund business.
Answer: A

83. Cheque is payable on ————
A. demand.
B. . usage.
C. fixed future date.
D. after sight.
Answer: A

84. A debit card is only for.
A. electronic card both withdraw and deposit purpose.
B. electronic card only for shop purpose.
C. electronic card only for withdraw purpose.
D. electronic card only for deposit purpose.
Answer: A

85. Two types of trading in the financial markets
A. electronic delivery
B. .Courier.
C. Door delivery.
D. Post delivery.
Answer: A

86. The Secure Electronic Transaction protocol is used for ————
A. credit card payment
B. cheque payment.
C. electronic cash payments.
D. payment of small amounts for internet services.
Answer: C

87. SWIFT have ———— digital code number?
A. . 11.
B. . 5.
C. 6.
D. . 10.
Answer: A

88. A digital certificate ————
A. . is an electronic message uniquely identifying the message sender.
B. . is a summary of a plain text document.
C. . is a reliable third party that authenticates the message sender.
D. is used to identify the owner of a private key and related public key.
Answer: D

89. A credit card contains ————
A. only cash.
B. not only cash.
C. not for cash.
D. withdraw cash only.
Answer: B

90. A debit card contains cash ————
A. only cash.
B. . not only cash.
C. . not for cash.
D. withdraw cash only.
Answer: A

91. SMART stands for: Specific, Measurable, ————, Relevant and Tangible.
A. accurate.
B. Actionable.
C. .Accountable.
D. Achievable.
Answer: D

92. Electronic payment system is a ————
A. software.
B. . hardware.
C. application.
D. . package.
Answer: C

93. . In Electronic cash payment ————
A. . debit card payment system is used.
B. customer buys several electronic coins which are digitally signed by coin issuing bank.
C. credit card payment system is used.
D. RSA cryptography is used in the transactions.
Answer: C

94. . In Electronic cash payment ————
A. . customer not withdraws coins in various denominations signed by the bank.
B. the bank has a database of issued coins.
C. not issues coins.
D. the bank cannot trace a customer.
Answer: D

95. A digital signature is ————
A. bit string giving identity of a correspondent.
B. unique identification of a sender.
C. an authentication of an electronic record by tying it uniquely to a key only a sender knows.
D. an encrypted signature of a sender.
Answer: C

96. The Secure Electronic Transaction protocol is used for ————
A. credit card payment.
B. cheque payment.
C. electronic cash payments.
D. payment of small amounts for internet services.
Answer: A

97. In Electronic cash payment ————
A. . debit card payment system is used.
B. customer buys several electronic coins which are digitally signed by coin issuing bank.
C. credit card payment system is used.
D. RSA cryptography is used in the transactions.
Answer: C

98 . In Electronic cash payment ————
A. customer not withdraws coins in various denominations signed by the bank.
B. the bank has a database of issued coins.
C. not issues coins.
D. the bank cannot trace a customer.
Answer: D

99. M. banking means.
A. To perform actions on his / her mobile device.
B. To perform actions on his / her internet service.
C. To perform actions on his / her webpage.
D. To perform actions on his / her pc.
Answer: A

100. E-cash means.
A. to transfer money between different parties over a network.
B. to transfer cheque between different parties over a network.
C. to credit money between different parties over a network.
D. to credit cheque between different parties over a network.
Answer: A