Deck 4: Banking and Financial Services

Question 1

The relationship between a banker and its customer is basically that of

A)a debtor and a creditor
B)a trustee and the beneficiary
C)a principal a
D)an agent

Answer 1

a debtor and a creditor

Question 2

The banker's answer in case of dishonor of a cheque on a account of insufficiency of funds is generally

A)refer to drawer (rd)
B)no funds (nf)
C)not arrang
D)for (naf)

Answer 2

refer to drawer (rd)

Question 3

The title of the endorsee will not be better than of the endorser in case a cheque is crossed containing the words

A)& co
B)not negotiable
C)account payee
D)none of the above

Answer 3

not negotiable

Question 4

Travelers cheques are issue by

A)travel agencies
B)commercial banks
C)tourist department of government of india
D)none of the above

Question 5

When a banker accepts the securities for safe custody, the relationship between a banker and a customer is that of

A)a debtor and a creditor
B)trustee and beneficiary
C)principal a
D)agent

Question 6

A right of appropriation first lies with the

A)debtor
B)creditor
C)court
D)none of the above

Question 7

The period of limitation in case of deposits with bankers from the date on which

A)deposit was made
B)deposit matures
C)date of dema
D)for payment by the customer

Question 8

Pay order is issued by the banks for

A)local payments
B)inter-state payments
C)foreign payments
D)none of the above

Question 9

Certificate of Deposit cannot be issued by

A)scheduled commercial banks
B)regional rural banks
C)all india financial institution
D)none of the above

Question 10

The recurring deposit account combine the characteristics of ……….and fixed deposit account.

A)savings account
B)current account
C)loan account
D)none of the above

Question 11

The drawee banker of a demand draft has received intimation of the loss of the draft from the purchaser.The banker should

A)stop the payment
B)exercise caution
C)refuse to accept the notice a
D)issue a duplicate draft

Question 12

…………..is always drawn on a specified banker.

A)bill of exchange
B)promissory note
C)investment receipt.
D)cheque

Question 13

A customer requests for issue of a bearer demand draft.The banker should

A)strike off the word 'order' and should put the word 'bearer' on the draft
B)request the customer to go to the head office
C)refuse to issue the draft
D)none of the above

Question 14

A and B have jointly hired a locker under "Either or Survivor" caluse. A dies.The bank should

A)permit b to operate the locker
B)seal the locker and open it only in the presence of b and a is legal representative
C)permit operation by b a
D)legal representative of a jointly

Question 15

Pay order is issued by the banks for

A)local payments
B)inter state payments
C)foreign payments
D)none of the above

Question 16

When a banker collects a cheque for which he has already given cash,his position is that of a…………

A)collecting bank
B)dealer
C)agent
D)holder for value

Question 17

Merchant banking includes

A)managing issue of shares
B)opening branches in mandis or bazaars
C)financing intermediary businessmen
D)none of the above

Question 18

In case of ………….days of grace are allowed

A)withdrawal receipt
B)bill of exchange
C)cheque
D)money order

Question 19

A minor can open and operate an account in his own name if he has atleast attained the age of

A)12 years
B)16 years
C)15 years
D)none of the above

Question 20

.The person appointed to operate the account after his death by the deceased himself before his I death is called

A)executor
B)administrator
C)attorney
D)none of the above

Question 21

A joint account can be opened by the banker on receipt of application signed by

A)majority of the joint account holders
B)all joint account holders
C)any joint account holder
D)none of the above

Question 22

A minor cannot

A)accept a bill
B)draw a bill
C)endorse a cheque
D)none of the above

Question 23

.The interest and principle amount of a loan not repaid by a customer in a bank ,the bank consider such loan as……..

A)rd
B)fd
C)npa
D)tod

Question 24

Banks create money by

A)liberal credit
B)differential instrument
C)accepting deposit
D)all or some of the above.

Question 25

The Apex Co-operative Bank is known as

A)central co-operative bank
B)state co-operative bank
C)rrb
D)nabrd