PPB 3rd Assessment Test

1. Any manufacturer or service provider who causes a false or misleading advertisement to be made
shall be punished for every subsequent offence, with imprisonment up to………..years and with fine
up to Rs………….. lakh

a. 2, 10
b. 5, 10
c. 2, 50
d. 5, 50

2. MODEM does the following ..

(i) Modulates digital signals into analogue
(ii) Demodulates analogue signals into digital
(iii) Converts data into image

a. Only (i) and (ii)

b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i) (ii) and (iii)

3. The terms of the original irrevocable reimbursement authorization (or an authorization

incorporating previously accepted irrevocable reimbursement authorization amendments) will
remain in force for the reimbursing bank until it communicates its acceptance of the amendment to
the ……….
a. Issuing bank
b. Advising Bank
c. Nominated Bank
d. Confirming Bank

4. A person having a grievance may, himself or through his authorised representative, file a complaint
with CRPC through …..

(i) Online portal (cms.rbi.org.in)

(ii) Electronic mode (e.g. e-mail)
(iii) Physical mode (by post/ courier or hand delivery)
(iv) Through an advocate

a. (i), (ii), (iii)

b. (i), (ii), (iv)
c. (ii), (iii), (iv)
d. (i), (ii), (iii), (iv)

5. ….. is the international standard for integrated-circuit cards (commonly known as smart cards)
a. ISO 7168
b. ISO 7618
c. ISO 7816
d. ISO 7861

6. A person promising to save another from loss is called ….

a. indemnified
b. indemnifier
c. collecting Banker
d. paying banker

7. The loan accounts of Mr. X are overdrawn. Which of the following steps is not appropriate?

a. The Bank’s lawyer issues a legal notice containing various details of the loan accounts.
b. The Bank discusses the matter with the guarantor with complete details of the loan account.
c. The Bank informs the status of the account to CIBIL.
d. The Bank contacts a firm that provides informally recovery services and gives the details to
them.

8. Insider trading refers to ..

(i) Employee making use of confidential information
(ii) Passing on confidential information to relatives, friends
(iii) Trading in the stock market without informing the bank

a. Only (i) and (ii)

b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i) (ii) and (iii)

9. If a fraud takes place in a bank branch. Report is sent to the controlling office on form ..
a. FMR 1
b. FMR 1a
c. FMR 2
d. FMR 2a

10. An NBFC-MFI is defined as a non-deposit taking NBFC with minimum Net Owned Funds of Rs. ..
a. 1 crore
b. 2 crore
c. 5 crore
d. 10 crore

11. In respect of distinctions between Base Rate and BPLR, which of the following statements is
appropriate?
a. BPLR was less profitable for banks, base rate gave better gave better NIM
b. Barring few permitted exceptions, lending below base rate cannot be done whereas in case
of BPLR lending below BPLR was done for various reasons
c. Base Rate is not transparent whereas BPLR was too transparent
d. BPLR was adverse for customers whereas base rate was more customer friendly

12. In CDR category-1, what types of loan accounts are eligible? (i) Standard, (ii) sub-standard

a. Only (i)
b. Only (ii)
c. Either (i) or (ii)
d. Both (i) and (ii)
13. All saving all well as current accounts should be treated as inoperative/dormant if there are no
transactions in account for period of years

a. 1
b. 2
c. 3
d. 5

14. Branch Level Customer Service Committees should meet at least once ..

a. 15 days
b. 1 month
c. 2 months
d. 3 months

15. NCPI provides which of the following interoperability services to NFS networked Cash
Recyclers/Cash Deposit Machines of participating member banks? (Select the most appropriate
option from the following)
(i) PAN card registration/verification
(ii) Card-to-Card fund transfer
(iii) Mobile Banking Registration
(iv) Interoperable cash deposit

a. Only (i) and (ii)

b. Only (iii) and (iv)
c. Only (i), (ii) and (iii)
d. Only (ii), (iii) and (iv)

16. Relationship between bank and customer in case of goods left by mistake in custody of the bank
………………..
a. Beneficiary & Trustee
b. Trustee & beneficiary
c. Creditor & Debtor
d. Debtor & Creditor

17. Scientific cash management in branch results in .. (Select the most appropriate option from the
following)
(i) Significant savings in time
(ii) Decrease in interest cost
(iii) Less paperwork
(iv) More Liquidity

a. Only (i), (ii) and (iii)

b. Only (i), (ii) and (iv)
c. Only (i), (iii) and (iv)
d. Only (ii), (iii) and (iv)

18. Complaints regarding wrongful debit on account of ATM transactions should be resolved within ..
working days of receipt of customer complaint
a. T+3
b. T+5
c. T+7
d. T+10

19. Term loans mean loans ..

(i) payable over a period of one year to ten years
(ii) repaid in installments over a period
(iii) utilised for acquisition of fixed assets

a. Only (i) and (ii)

b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i) (ii) and (iii)

20. What is the full form of MMID?

a. Mobile Money Identifier

b. Mobile Money Identifing Direction
c. Mobile Money Identifier and Decoder
d. None of the above

21. After how many days an account becomes SMA 2?

a. Principal or interest payment overdue upto 30 days
b. Principal or interest payment overdue between 31-60 days
c. Principal or interest payment overdue between 61-90 days
d. Principal or interest payment overdue above 90 days

22. GOI holds 100 stake in (i) NABARD, (ii) SBI, (iii) NHB

a. Only (i) and (ii)

b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i) (ii) and (iii)

23. Foreign currency denominated accounts maintained in India cannot be in the form of ..

a. savings account
b. fixed deposit
c. current account
d. recurring deposit

24. Which is false in terms of limited company?

a. They implied power to borrow for trading companies

b. Introduction is not necessary for opening a company account
c. Death of authorised signatory does not demand stoping of payment
d. A cheque payable to company can be deposited in personal account of director
25. If the default is above Rs. the creditor may initiate insolvency resolution process

a. 20 lakh
b. 50 lakh
c. 1 crore
d. 2 crore

26. In KYC guidelines, the small account where simple KYC is applicable are those account where the
amount deposited in the account is restricted to ..

a. Rs. 50000
b. Rs. 1 lac
c. Rs. 5 lac
d. All the above

27. If a credit is available with any bank, amendment of reimbursement authorization must be sent
to ..
(i) Reimbursing bank
(ii) Advising Bank

a. Only (i)
b. Only (ii)
c. Either (i) or (ii)
d. Both (i) and (ii)

28. Which one of these is an indirect rate?

a. One $ = Rs. 39.56
b. One pound = Rs.89.56
c. One yen = Rs. 0.30
d. Rs.100 = $ 2.60

29. Preshipment credit is available in which type of letter of credit? (i) Red clause, (ii) Green clause
a. Only (i)
b. Only (ii)
c. Either (i) or (ii)
d. Both (i) and (ii)

30. Record under RTI Act, 2005 includes ..

(i) Any document, manuscript
(ii) Any microfilm, microfiche
(iii) Facsimile copy of a document

a. Only (i) and (ii)

b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i) (ii) and (iii)
31. X maintains SB a/c with Balance of Rs 20000 nominee being Y. On 15 june the branch receives the
notice of death of X and on 17 June garnishee Order for Rs 15000 is received on that a/c. On the
same day nominee claims the amount. You will ..

a. Pay to nominee the entire amount

b. Attach the amount for garnishee order and pay balance
c. Settle in the ratio of 20:15
d. Settle depending on the priority of claim

32. Garnishee order is issued by ..

a. Judgement Debtor
b. Judgement Creditor
c. Judgement Debtors Debtor
d. Civil Court

33. Appointment of Ombudsmen can be for maximum years at a time

a. 1
b. 2
c. 3
d. 5

34. Funds in.cannot be freely repatriated outside India.

a. NRE Account
b. NRO Account
c. FCNRb. Account
d. SNRR Account

35. In a contract of guarantee ..

a. there are two parties and one contract
b. there are two parties and two contracts
c. there are three parties and three contracts
d. there are three parties and one contract

36. As per large expposure framework, the sum of all the exposure values of a bank to a single
counterparty and to a group of connected counterparties must not be higher than .. % and %
respectively of
the bank's available eligible capital base at all times, in normal circumstances.

a. 5, 10
b. 10, 15
c. 15, 20
d. 20, 25

37.Which crossing is not recognized by NI Act?

a. Special
b. Payee’s account
c. Not negotiable
d. All the above
38. In an organisation, managing by values has three basic elements. Which of the following are
correct? (Select the most appropriate option from the following)
(i) Identification of core values
(ii) Specifying punishments for violating core values
(iii) Communicating core values
(iv) Aligning values and practices

a. Only (i), (ii) and (iii)

b. Only (i), (ii) and (iv)
c. Only (i), (iii) and (iv)
d. Only (ii), (iii) and (iv)

39.... are the sets of independent organizations involved in the process of making a product or
service available for use or consumption:
a. Selling entities
b. Retailers
c. Wholesalers
d. Marketing channels

40….. are concept of desirable behaviour, or an internalised standard or principle which evaluates,
what is braced by an individual.
a. Beliefs
b. Values
c. Ethics
d. Norms

41. What is the right of nominee in case of term deposit that has not matured? (i) To obtain
premature payment, (ii) Raise loan against the security of such term deposit
a. Only (i)
b. Only (ii)
c. Either (i) or (ii)
d. Both (i) and (ii)

42. Which is of the following is used for detecting, analysing, and responding to security threats?
a. Firewall
b. IDS
c. SIEM
d. IPS

43. e-RUPI can be issued upto INR per voucher

a. 5,000
b. 10,000
c. 20,000
d. 50,000

44. Under Prevention of Crisis, threats or Crisis in the making, a firm needs to monitor all the factors
which are beyond its control in future are called ..
a. Screening Internally
b. External Screening
c. Immediate Screening
d. Excess Screening
45. AD banks can issue International Credit Cards (ICC) to NRIs/ PIOs, and the transactions may be
settled by....
(i) Inward remittance
(ii) From the cardholder’s FCNR (B) Accounts
(ii) From the cardholder’s NRE / NRO Accounts

a. Only (i) and (ii)

b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i) (ii) and (iii)

46. A Garnishee Order is received in the joint names of X and Y. This will attach the following
balances ……

a. RD account in the name of Y maturing after one year

b. SB account in the name of X jointly with Mrs X
c. Current Account of Y-Executor Estate Of Late Mr Z
d. All the above
47. In which one of the following cases the drawee bank is required to pay the cheque presented in
clearing for payment? (Select the most appropriate option from the following)

a. A cheque for Rs. 5000/- drawn by Mr. X on this SB account. An email intimating about the
death of Mr. X with a copy of death certificate has been received. The amount is debited to the
account
b. A cheque for Rs. 15000/- drawn by Mr. X on Elite Savings Bank account. The credit balance in
Savings account is Rs. 20000/-. The minimum balance requirement is Rs. 10000/-
c. A cheque for Rs. 150000/- issued by M/S ABC on their CA. The credit balance in the current
account is Rs. 300000/-. A lien for Rs. 200000/- has been marked on the balances held in the current
account
d. A cheque for Rs. 500000/- drawn by ABC Ltd. on their current account. An authentic
communication asking the bank to stop payment has been received before making the payment.

48. Mr. X had a 5 year TDR for Rs. 5,00,000 with Bank A maturing on 30.6.2024. Mr. X suddenly
passed away on 1.2.2023. The nominee of Mr. X approached the bank with the relevant papers for
payment of the deposit. The bank should ..
a. prematurely close the deposit without any penalty
b. pay the amount only on maturity
c. prematurely close the deposit and charge penal interest
d. close the deposit and pay no interest

49. VAPT (Vulnerability Assessment and Penetration Testing) aims at Identifying vulnerabilities in the
……..
(i) Network
(ii) Server
(iii) System infrastructure

a. Only (i) and (ii)

b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i) (ii) and (iii)
50. In which of the following situation, is the bank authorised to share information?
a. Mrs. B, wife of Mr. A comes and asks the balance in his savings bank account in single name.
b. The balance in a savings bank account is blocked as per the attachment order of the Income
Tax Officer, under advice to the customer and the Income Tax Department.
c. Mr. T, the Teller speaks out the balance in the account of Mr. X, who has just withdrawn cash
from his account.
d. The balance in the savings account of Mr. Y, is told to an Income Tax Officer making a
telephonic inquiry.

51. Core banking offers various features except ..

a. It offers integrated products and services to customers round the clock

b. Multiple delivery channels are possible through respective interfaces
c. It uses centralised database where all the transactions are recorded on central server
d. It deploys distributed database where all the transactions are maintained on branch personal
computers

52. The Chairperson of DRAT holds office for a term of……years from the date on which he assumes
his office, or until he attains the age of……..years, whichever is earlier
a. 3, 65
b. 3, 70
c. 5, 65
d. 5, 70

53. What is Gem Portal?

a. It is a centralised online trading platform for precious stones
b. It is a Government e-Marketplace for the procurement of goods and services
c. It is a Government portal for emerging technologies
d. All of the above

54. Which of the following statements are true in respect of Countercyclical Capital Buffer (CCCB)
under Basel III?
(i) CCCB is generally maintained in the form of CET-I capital only
(ii) CCCB requires banks to build up a buffer of capital in good times which may be used to
maintain flow of credit to the real sector in difficult times
(iii) The main objective of CCCB is to achieve the broader macro-prudential goal of restricting the
banks from indiscriminate lending in the period of excess credit growth

a. Only (i) and (ii)

b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i) (ii) and (iii)

55. The preliminary order issued by the court while issuing Garnishee Order is called ..
a. Preliminary Order
b. Court Order to Bank
c. Order Nissi
d. Order Absolute
56. Which one of the following ethics-related actions by management is least effective in
encouraging acceptance by employees of an organization’s code of ethics?
a. Management appoints an ethics officer to monitor and report to management on employee
compliance
b. Management follows ethical principles in decisions made on behalf of the organization
c. Management keeps promises and commitments made to employees, customers, and
vendors
d. Management supports employees in adhering to ethics standards

57. X and Y go into the shop. Y says to the shopkeeper ‘let him have the goods, I will see you paid’.
This is a contract of ..
a. Guarantee
b. Bailment
c. Indemnity
d. Pledge

58. Which of the following is/are Characteristic of Values?

(i) Provides standard of competence and morality
(ii) Large in number with selective values
(iii) Act as a measure and carry judgemental values
(iv) Relatively perpetual and resilient to change

a. Only (i), (ii) and (iii)

b. Only (i), (ii) and (iv)
c. Only (i), (iii) and (iv)
d. Only (ii), (iii) and (iv)

59. ….. suggests that people should aspire to treat each other as they would like to be treated
themselves - with tolerance and consideration (Select the most appropriate option from the
following)
a. The Golden Rule
b. Ethical Rule
c. Universal Rule
d. Rule of morality

60. Due date of a bill of exchange drawn on 30th January 2023 for one month will be ..
a. 5th March 2023
b. 3rd March 2023
c. 29th February 2023
d. 4th March 2023

61. ABC Bank is looking to introduce a new feature in its doorstep banking services. Which of the
following would be an external factor with respect to pricing of service?
a. Characteristics of service
b. Price Elasticity of demand for service
c. Social consideration
d. Objectives of the bank

62. All complaints under IOS 2021 are received at the Central Receipts and Processing Centre (CRPC)
……...
a. New Delhi
b. Mumbai
c. Chandigarh
d. Chennai

63. As a step for moving towards capital account convertibility FEMA regulations have been modified
to permit residents to maintain accounts denominated in Foreign Currency in India.
(i) Exchange Earner’s Foreign Currency (EEFC) Account - EEFC Account
(ii) Resident Foreign Currency (RFC) Account - RFC Account
(iii) Resident Foreign Currency (Domestic) Account – RFC (D) Account
(iv) Diamond Dollar Account (DDA) Scheme – DDA Account

a. (i), (ii), (iii)

b. (i), (ii), (iv)
c. (ii), (iii), (iv)
d. (i), (ii), (iii), (iv)

64. Bank note which is misprinted by RBI is replaced by issuing a note

a. Sun series
b. Moon series
c. Planet series
d. Star series

65. Provision for standard accounts in direct agriculture and SME accounts is to be made at ..
a. 0.20%
b. 0.25%
c. 0.50%
d. 0.75%

66. NRIs and PIOs are permitted to maintain accounts in Foreign Currency with ADs in India under
FCNR(B) Scheme. Tenor of Deposit will be: Minimum .. and maximum ..
a. 1 year, 2 years
b. 1 year, 3 years
c. 1 year, 5 years
d. 2 year, 5 years

67. Authorised capital is Rs.10 lac. Paid up capital Rs.6 lac. The loss of previous year is Rs.1 lac. Loss
in current year is Rs.2 lac. The tangible networth is ……
a. Rs.1 lakh
b. Rs.2 lakhs
c. Rs.3 lakhs
d. Rs.4 lakhs

68. In case a customer protests any Credit card bill, the bank/NBFC should provide an explanation
and if necessary, documentary evidence to the customer, within a maximum period of days of
complaint.
a. 7
b. 15
c. 30
d. 60
69. Which is true for Business Ethics?
(i) It is a moral principle system
(ii) It asks about what morally correct or incorrect in a situation
(iii) It includes thinking and based on principle and ideas

a. Only (i) and (ii)

b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i) (ii) and (iii)

70. Provisions of SRFAESI Act, 2002 is not applicable to ..

a. Pledge of movables property
b. Hypothecation of immovable property
c. Lien
d. a&c

71. Direct sales agent should not call customers, who have expressed their lack of interest for the
offering for the next with the same offer
a. 1 month
b. 3 months
c. 6 months
d. 9 months

72. What is the limit on the amount of compensation as specified in an Award by banking
ombudsman?
a. Rs. 10 lakhs
b. Rs. 20 lakhs
c. Rs. 30 lakhs
d. Rs. 50 lakhs

73. For increasing liquidity in the system, which of the following steps will be taken by RBI?
a. Increase CRR
b. Increase SLR
c. Reduce CRR
d. Increase repo rate

74. Bank credit to NBFCs (including HFCs) for on-lending, as per Loans to NBFCs and Loans to HFCs,
should be within………….of its total priority sector lending, averaged across four quarters
a. 5%
b. 10%
c. 20%
d. 25%

75. Return on Large Borrowers (Form A) [Part D of Return on Large Credit in the revised XBRL based
system] covered borrowers with exposure (both fund and non-fund based) of more than Rs………., for
creation of central repository of large credits across banks

a. 10 Lakh
b. 100 Lakh
c. 10 million
d. 100 million
76. The maximum debt period in case of domestic factoring normally permitted is………… inclusive of
maximum grace period of…………(Select the most appropriate option from the following)
a. 120 days, 30 days
b. 150 days, 30 days
c. 120 days, 60 days
d. 150 days, 60 days

77. Which of these are factors of Organisational Factors?

(i) Company Policies, Rules, Work-Procedures and Systems
(ii) Organisational Culture and Shared Values
(iii) Organisational Structure, authority- orientation and hierarchy in the organisation
(iv) Attitude of top management towards ethical problem solving

a. Only (i), (ii) and (iii)

b. Only (i), (iii) and (iv)
c. Only (ii), (iii) and (iv)
d. (i), (ii), (iii) and (iv)

78. If an employee who is an possession of the information sells the stocks or advised friends to sell
and get out of stock called ..
a. Bribe
b. Sexual Harassment
c. Insider Trading
d. Whistle blower

79. Which insurance does not have indemnity contract?

a. Life
b. Health
c. Either a or b
d. Neither a nor b

80. In case of SMEs, the registration is mandatory in case of ..

a. Medium enterprises in servicing
b. Small manufacturing enterprises
c. Manufacturing medium enterprises
d. None of the above

81. Who can't be a nominee of a deposit account?

a. A single individual
b. Non-relative
c. Non-resident
d. Trust

82. The term liquid surplus refers to ..

a. Gross working capital
b. Excess of current assets over current liabilities
c. Excess of owned funds over outside borrowings
d. Excess of limit sanctioned less availed by the borrower
83. Banks should place a detailed statement of complaints, received at branches or Head Office on
their website for information of the general public at the end of each financial year. This should
exclude those resolved within the ..
a. following day
b. following working day
c. 7 days
d. 14 days

84. A loan granted for short duration crops will be treated as NPA, if the instalment of principal or
interest thereon remains overdue for crop seasons
a. 1
b. 2
c. 3
d. 4

85. Bill of lading, Railway Receipt are negotiable instruments under ..

a. NI Act
b. Sec 3 of Transfer of Property Act
c. Sec 137 of Transfer of Property Act
d. Sale of Goods act

86. On receipt of a Garnishee Order on the customer’s account the bank ….

a. Loses its right of set off
b. must stop operation of all accounts of the customer (Both debit & credit)
c. is no more obliged to honour customer’s cheques
d. All of these

87. In cases where the responsibility is not with the bank or the customer, but elsewhere in the
system and when there is a delay (4 to 7 working days after receiving bank’s the communication) in
notifying the bank of such a transaction, the per transaction liability of the BSBD Account customer
shall be limited to…...
a. 1000
b. 5000
c. 10000
d. 25000

88. The quarterly financial results of companies and banks are to be declared / published under
directions provided by ..
a. RBI
b. SEBI
c. Govt of India
d. None of the above

89. In bank guarantees, the bank makes payment on ..

a. being convinced that the beneficiary has incurred loss
b. being sued by the beneficiary
c. the guarantee being invoked after seeking concurrence of the debtor
d. merely on demand by the beneficiary

90. For opening a Sukanya Samriddhi Yojana Account (SSY), the child’s age on the date of opening the
account should be ….
a. 8 years or younger
b. 8 years or older
c. 10 years or younger
d. 10 years or older

91. BCSBI had in collaboration with the Indian Banks’ Association (IBA), evolved and issued following
Code/s
(i) Code of Bank’s Commitment to Customers (issued in 2006 and revised in 2018)
(ii) Code of Bank’s Commitment to Micro and Small Enterprises (MSE Code)

a. Only (i)
b. Only (ii)
c. Both (i) and (ii)
d. None of the above

92. Protection in Patent is granted for a limited period of ..

a. 5 years
b. 10 years
c. 15 years
d. 20 years

93. Clip system refers to a few notes in a section which are clipped together at ..
a. The end of the section
b. Middle of the section
c. Top of the section
d. Any one of the above

94. Bank should settle claims in respect of deceased depositors and release payment to survivors
/nominee on production of proof of death of depositor and suitable identification of claimants to
bank's satisfaction within a period not exceeding ..
a. 7 days
b. 15 days
c. 21 days
d. 30 days

95. The party which is ordered to pay the amount of bill of exchange is called ..
a. Drawee
b. Payee
c. Drawer
d. None of the above

96. What is the extent of CGTMSE Guarantee Coverage for the Units located in in Sikkim, where
credit facility is 40 lakhs?
a. 50 %
b. 75 %
c. 80 %
d. 85 %

97.The Right to Information Act has been divided into how many chapters?
a. 6 Chapters
b. 4 Chapters
c. 5 Chapters
d. 7 Chapters

98. e-RUPI cannot be issued for the………category.

a. Person-to-Person (P2P)
b. Business to Consumer (B2C)
c. Business to Business (B2B)
d. None of the above

99. Which of the following is one of the reasons for unethical behavior among banking professionals?
(i) Emphasis on short term results
ii) Ignoring small unethical issues
(iii) Economic cycles

a. Only (i) and (ii)

b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i) (ii) and (iii)

100. A joint account is in the name of Hari and Krishna with instructions "either or survivor" Hari
grants a power of attorney in favour of Lakshman. We should ……
a. Not allow Lakshman to operate the account without oral confirmation of Krishnan
b. Allow Lakshman to operate account as either of a/c holder is Competent to appoint an
attorney
c. Not allow Lakshman to operate the account
d. None of the above

**********************

PPB Assessment Test 3

1.Loan to Value Ratio (LTV) for vehicle loans Upto 10 lacs is………. of ‘on road price’ of the car
a. 75%
b. 80%
c. 85%
d. 90%

2. Which is true in context of Trust account?

(i) Death of one trustee, authority to remaining trustee) & when all dead new trustee by court
appointed
(ii) In case of two or more trustees, unless specially stated in trust deed all trustee can operate it
(iii) Insolvency of trustee is not the insolvency of trust

a. Only (i) and (ii)

b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i) (ii) and (iii)

3. In case of coupon bonds, which of the following statements is correct?

a. These bonds are issued at a discount
b. The coupons in such bonds refer to the amount of principal that will be redeemed
periodically
c. These bonds are traded in secondary market at Yield to Maturity (YTM) based on market rate
of interest
d. In the secondary market, the price of these bonds are determined by the financial
performance of the company

4. A person wants to raise loan from the bank. The loan can be given against …..
a. FDR of other bank
b. Share of same bank
c. Surrender value of Life Policy
d. All the above

5. In KYC guidelines, the small account where simple KYC is applicable are those account where the
amount deposited in the account is restricted to ..
a. Rs. 50000
b. Rs. 1 lac
c. Rs. 5 lac
d. All the above

6. In a deferred payment guarantee, which of the following terms are mandatory?

(i) there is supply of goods by the seller to the buyer, and the seller agrees to postpone the
payment of the price - this is the consideration of the guarantee
(ii) the payment schedule of both the instalment and the interest
(iii) unconditional and irrevocable assurance of the bank that it would make payments on the
invocation of the guarantee.
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i) (ii) and (iii)

7. With a view to encourage availability of affordable housing to economically weaker sections (EWS)
and low income groups (LIG), where the cost of the house/dwelling unit does not exceed Rs. ,
banks may add stamp duty, registration and other documentation charges for calculating LTV ratio.
a. 5 lakh
b. 6 lakh
c. 10 lakh
d. 12 lakh

8. 5G network technology uses ..

a. Micro waves
b. Nano waves
c. Centimetre waves
d. millimetre waves

9. The risks broadly lead to ..

(i) Incorrect decision making leads to setbacks to the business
(ii) Interruption in activities due to loss of data, hardware, software, peopleware
(iii) Violation of privacy
(iv) Direct financial loss due to computer frauds
a. (i), (ii), (iii)
b. (i), (ii), (iv)
c. (ii), (iii), (iv)
d. (i), (ii), (iii), (iv)

10. Ceilings for Exposure of Banks to a single NBFC (excluding gold loan companies) is maximum……of
the bank’s Tier I capital
a. 20%
b. 25%
c. 30%
d. 50%

11. The amount in a cheque is written differently in words and figures and amount written in words is
higher of the two. In that case...
a. Amount written in number will be paid
b. Amount written in words will be paid
c. Lesser Amount will be paid
d. Higher Amount will be paid

12. Under the contract of guarantee, a creditor …

a. has to avail his remedies first against the principal debtor
b. can avail his remedies against the principal debtor as well as the surety
c. can avail his remedy against the surety alone
d. both b and c

13. Promotion seeks to influence the buyer in decision-making through ….

(i) Persuasion
(ii)Reminding
(iii) Compulsion

a. Only (i) and (ii).

b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i) (ii) and (iii)

14. What is the full form of CORE in core banking solution?

a. Customer online Rupee exchange
b. Customer online real-time environment
c. Centralised online rupee exchange
d. Centralized online real-time environment

15. The asset of the mutual fund are held by ..

a. Custodian
b. AMC
c. Trustees
d. Registrar

16. Activities that cannot be outsourced ..

(i) Internal audit
(ii) Decision making functions
(iii) Management of Investment Portfolio
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i) (ii) and (iii)

17. Time limit for periodic updation of KYC for existing low/medium/high risk customers is ..
a. 5/10/2 years
b. 7/10/2 years
c. 10/8/2 years
d. 5/3/2 years

18. You receive a Garnishee Order at 11 AM. It will attach the following ..
a. Money deposited in the account at 1 PM
b. Money withdrawn at 10.50 AM which is yet to be paid by the cashier
c. The proceeds of clearing cheque credited at 10 AM subject to clearance by the drawee Bank
d. The sale of shares of customer which is sold by Bank as agent are yet to be deposited in SB a/c

19. The consequences of errors in computerised systems are more serious than in manual systems
because....
(i) Computer systems process huge amounts of data.
(ii) Errors in computer systems are generated at high speed, and the cost to correct may be high
(iii) Users of computer systems perceive the computer outputs to be always correct
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i) (ii) and (iii)

20. Keeping goods in safe custody is as per provisions of ..

a. NI Act
b. Indian Partnership Act
c. Indian Contract Act
d. All the above

21. Bank note which is misprinted by RBI is replaced by issuing a note

a. Sun series
b. Star series
c. Planet series
d. Moon series

22. Right to retain goods is called ..

a. Assignment
b. Right of set of
c. Pledge
d. Lien

23. Compensation for consequential loss (directly out of the act or omission of the bank) - to the
extent of actual loss, with ceiling of ..
a. Rs. 5 lakh
b. Rs. 10 lakh
c. Rs. 15 lakh
d. Rs. 20 lakh
24. Who can make a valid pledge?
a. Owner of the goods
b. A mercantile agent
c. Seller of goods, who continues to be in possession of the goods even after sale
d. All the above

25. NARCL has been set up with a strategic initiative to clean up the legacy stressed assets with an
exposure of Rs……………. crores and above in the Indian Banking system
a. 10
b. 50
c. 100
d. 500

26. Central Consumer Protection Council (CPC) can have maximum………. members
a. 12
b. 25
c. 36
d. 50

27. Which of the following is a remedy for Unethical Behaviour?

(i) Develop Ethics Manual
(ii) Nipping of Unethical behaviour in bud
(iii) Appreciation and rewards for Ethical behaviour

a. Only (i) and (ii)

b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i) (ii) and (iii)

28. What is the minimum credit rating of company to be eligible to issue commercial paper?
a. A-1
b. A-2
c. B-1
d. B-2

29. NRIs/ PIOs, can remit up to per FY from NRO deposits and assets acquired from
parents/relatives
a. USD 1 lakh
b. USD 5 lakh
c. USD 1 mn
d. USD 5 mn