Deck 2: Banking and Loan Terminology

Question 1

Maximum number of withdrawals permitted per half year weather by cheque or otherwise in saving bank account

A)100
B)200
C)50
D)no limit

Answer 1

50

Question 2

The banker's obligation to pay his customers cheque is a duty towards............

A)the drawee
B)the drawer
C)the holder
D)the payee

Answer 2

the drawer

Question 3

Collateral security means

A)advance against supply bills
B)share and debentures
C)goods pledged to the bank
D)additional security

Answer 3

additional security

Question 4

RBI issues currency notes on the basis of............

A)minimum reserve
B)general reserve
C)proportional reserve
D)gold reserve

Question 5

The term "Reserve" in Reserve bank of India indicates

A)reserved for govt. business alone
B)it keeps reserves of all commercial banks
C)no special significance
D)it keeps foreign currency

Question 6

SBI was established in the year

A)1954
B)1956
C)1955
D)1964

Question 7

For opening new branch of a bank should obtain the sanction of..........

A)central government
B)state government
C)rbi
D)all the above

Question 8

Negotiable Instrument Act was passed in the year

A)1856
B)1875
C)1881
D)1882

Question 9

NABARD is administered by

A)rbi
B)sbi
C)board of directors
D)central govt.

Question 10

A depositor can withdraw money from the bank any number of time in.............

A)fixed deposit
B)savings bank
C)current a/c
D)recurring deposit

Question 11

A cheque is deemed stale after

A)one month
B)3 months
C)6 months
D)one year

Question 12

Bank rate policy is aimed at

A)development of banks
B)helping loan takers
C)stabilising internal price level
D)none of these.

Question 13

Bank of England was established in the year

A)1586
B)1612
C)1694
D)1656

Question 14

Garnishee order is to restrain a banker from

A)receiving deposit
B)making payment
C)accepting bills
D)crossing of cheques

Question 15

A banker need not bother too much to open an account in the name of a person when receiving.........

A)term deposit
B)demand deposit
C)saving deposit
D)call deposit

Question 16

Primary relationship between banker and customer is that of

A)dealer and customer
B)principal and agent
C)debtor and creditor
D)vender and buyer

Question 17

Bankers lien is a general lien and is

A)a special type of mortgage
B)an implied pledge
C)a pledged transaction
D)hypothecation transaction

Question 18

Which country is popular for branch banking

A)britain
B)china
C)india
D)japan

Question 19

Whose signature is affixed on currency notes

A)president
B)prime minister
C)rbi governor
D)finance minister

Question 20

A post dated cheque is one which bears;

A)a date which is not more than 6 months
B)future date
C)an impossible date
D)back date

Question 21

A banker has the right to disclose the account position of a customer to...........

A)intimate friend
B)customers wife
C)trade reference
D)customers relatives

Question 22

An account usually maintained by businessmen in a bank is

A)current account
B)saving bank account
C)recurring deposit account
D)none of these

Question 23

The system of banking attracting deposits and lending for short period is called

A)mixed banking
B)deposit banking
C)credit system
D)lending system

Question 24

When a loan is advanced on the basis of immovable property, it is called

A)pledge
B)hypothecation
C)mortgage
D)lien

Question 25

When a loan is advanced on the basis of movable property, it is called

A)pledge
B)hypothecation
C)mortgage
D)lien