10. How long a bank branch is required to preserve the information of a closed account-?
a). 1 year b). 5 years c). 2 years d). 10 years
11. Garnishee order is issued by-
a). Policy order
b). National Board of Revenue c). Court of Law d). C.I.D
12. Money laundering refers to-
a). Concealing or disguising the illicit nature, source, location, ownership or control of the proceeds of crime b). Assisting any person involved in the commission of the predicate offence to evade the legal consequences of such offence c). Smuggling money or property earned through legal or illegal means to a foreign country d). All of these
13. Which of the following person cannot open an account with a bank?
a). An adult b). Lunatic c). Solvent d). Minor with guardian
14. One of the directors of a limited company expired and cheques signed by him are presence for payment, should be bank pay these cheques?
a). Cannot pay
b). Can pay upon other directors confirmation c). Can pay as a routine d). Payments be stopped by the company
15. The document drawn by a debtor on the creditor agreeing to pay a certain amount of money is called:
a). Cheque b). Promissory note c). Bill of exchange d). Draft
16. Which of the following is the lender’s recourse related law?
a). Contract Act, 1872
b). Bank Company Act, 1991 c). Artha Rin Adalat Ain, 2003 d). All of these
17. The Articles of Association of a Limited Company contains-
a). Objects of the company
b). Internal management of the company c). Both (a) and (b) d). None of the above
18. The best suited deposit for a trading community is-
a) Savings deposit b) Fixed deposit c) Current deposit d) Recurring deposit
19. As regards contract Act, 1872 which one of the following is not true?
a). Agreements by persons of idiocy are not void
b). An agreement enforceable by law is a contract c). In every contract there should be free consent D). A minor cannot be a guarantor
20. Banker’s Lien is a/an-
a). Hypothecation b). IGPA for mortage c). Implied pledge d). Bailment of goods
21. Shadow Banking implies-
a) Unregulated banking b) Inclusive banking c) Illegal banking d) Money Laundering
22. Non Banking Financial Institutions are guided by-
a). Financial Institutions Act, 1993
b). Companies Act, 1994 c). The Banking Companies Act, 1991 d). Bangladesh Bank Order, 1972
23. Which of the following create liabilities of a bank?
a). Savings deposit
b). Fixed deposit c). Current deposit d). All of These
24. While opening an account in the name of a company, the most important document to be seen is –
a). List of employees/ directors of the company
b). List of promoters / shareholders of the company c). Memorandum and Articles of association of the company d). Instructions of RJSC
26. Which one is not included in financial crimes?
a). Cheque fraud
b). Credit card fraud c). Over-invoicing for purchasing an office articles d). Purchase of luxury items
27. When a cheque book is lost by a customer of a bank, which of the following document needs to be executed?
a). Guarantee bond
b). Treasury bong c). Indemnity bond d). Security bond
28. Deposits recorded by the depositor but not yet recorded by the Bank means-
a). Restricted deposit
b). Outstanding deposit c). Deposit in transit d). All of these
29. A note which is burnt or having sign of burn partially or wholly is called-
a). Altered Note
b). Damp Note c). Deformed Note d). Charred Note
30. How many handards are provided by the FATF for AML & CFT? a). 35 b). 40 c). 38 d). 42
31. Guarantor is liable only when-
a). The principal debtor has defaulted to pay
b). The creditor has exhausted his remedy against the principal debtor c). The guarantor is called upon to pay on default by the principal debtor d). After the expiry of the limitation period of guarantee
32. A bank is unable to pay its short term deposits because the bank’s fund is long term investments. The risk derived in this case is known as-
33. Ability of an organization to pay-off the current obligations is measured by-
a). Coverage Ratio
b). Activity Ratio c). Liquidity Ratio d). Growth Ratio
34. Under which section of Artha Rin Adalat Ain, 2003 responsibility has been financial institutions to dispose of property of borrower before filling of suit-
39. Under the Basel -II framework market discipline falls under which of the following pillar?
a). Pillar-I b). Pillar- II c). Pillar-III d). None of the above 40. Which one is not the irregularities in case of approving loans and advances?
a). Over or under invoicing
b). Inadequate security stipulation c). Undue influence d). Estimation of the cost of the project and means of finance
41. Which one of the following is not true?
a). At present CRR is 6.50%
b). All banks are to maintain SLR @ 13.00% c). At present Bank rate is 5.00% d). Call money rate is not always fixed
42. Classified loan is categorized under-
a). 3 categories b). 5 categories c). 4 categories d). None of these
43. Which of the following is non funded credit?
a). CC pledge b). Bill purchase and discounting c). Letter of credit d). Both (b) and (c)
44. What is the single borrower exposure limit of a bank?
a). 15% of Bank’s capital
b). 35% of Bank’s capital c). 25% of Bank’s capital d). None of these
45. Loan would be classified as doubtful if-
a). There is a negative net worth and working capital
b). Uncertain collateral coverage c). Full recovery depends upon unlikely events d). All of the above
46. Current ratio is calculated through-
a). Current assets – current liabilities
b). Current assets + current liabilities c). Current assets /current liabilities d). Current liabilities / Current assets
47. IRR is the discount rate at which-
a). NPV>0 b). NPV<0 c). NPV= 0 d). NPV> 1
48. Which one(s) of the following symptoms of a non- performing project?
a). Slow turnover
b). Underutilization of capacity c). Going out of production d). All of the above
49. Credit investigation includes-
a). Collection and analysis of information
b). Making of recommendation/decision c). Credit review and monitoring d). Both (a) and (b) 50. Which of the following does not constitute a line of defense against banking risk?
a). Quality management
b). Good macroeconomic environment c). Portfolio diversification d). Owner’s capital
51. What is the role of internal auditors in the risk management of bank?
a). Set policies
b). Evaluation and expression of opinion c). Test compliance with laws, policies and procedures etc. d). Effective supervision and monitoring
52. Based on capital budgeting technique decision rule, which project should be chosen?
a). The project having NPV greater than zero
b). The project having payback period greater than given standard time c). The project having IRR lower than the cost of capital d). Anyone
53. Execution suit under Artha Rin Adalat Ain’2003 should be filed within-
a). 120 days
b). 180 days c). 360 days d). None of these
54. Which one of the following is not a charge document?
a). D.P nate
b) Letter of revival c). Letter of continuity d). Assignment
55. Down payment requirement of term loan for the 1st time rescheduling is-
a). 10% of the total outstanding or 15% of the overdue installment of the loan, whichever is less. b). 20% of the total outstanding or 30% of the overdue installment of the loan, whichever is less c). 10% of the total outstanding or 25% of the overdue installment of the loan, whichever is less d). None of these
56. Which one of the following is not a charge document?
a). D.P nate
b) Letter of revival c). Letter of continuity d). Assignment
57. CRG is not required for-
a). Consumer credit
b). Micro credit c). Short term Agricultural credit d). All of these 58. Which of the following is the formula of burden coverage?
a). Funded income divided by operating expense
b). Non interest income divided by interest expense c). Non interest income divided by operating expense/non interest expense d). interest expense divided by operating expense
59. A company has a net income of (BDT) 35 million, if the company pays out BDT 1 million preferred dividend and has 10 million shares for half of the year and 15 million shares for the whose half of EPS would be- a). BDT 1.92 b). BDT 1.00 c). BDT 2.00 d). BDT 0.96 60. Which one of the following is an example of leverage Ratio? a). Debt to total asset ratio b). Debt equity ratio c). Debt to capital ratio d). All of these
61. International banking includes-
a). Trade payment
b). Trade finance c). Foreign Exchange d). All of these
62. In documentary collection, exporters present documents to the counter of-
a). Issuing bank
b). Nominated bank c). Negotiating bank d). Remitting bank
63. LIM is a-
a). Post import financing technique
b). Pre import financing technique c). Pre shipment financing d). Post shipment financing to the exporter
64. Which one of the following is most preferable to the exporter?
a). Open Account b). Documentary collection c) Cash in advance d). Documentary credit
65. Documentary collection is relatively risky for-
b). Importer’s choice c). Reimbursing bank choice d). Exporter’s choice
68. URR 735 is the regulatory framework for-
a). Reimbursement b). Documentary collection c). Reimbursement in LC operation d). Cash in advance
69. Charges of the advising bank is commonly beard by-
a). Issuing bank
b). Exporter c). Importer d). Nominated bank 70. Who are the main parties of a confirmed credit-?
a). Issuing bank
b). Confirming bank c). All of above d). Beneficiary
71. Which one of the following is not party of documentary credit?
a). Issuing bank
b). Confirming bank c). Beneficiary d). The applicant
72. What triggers settlement order documentary credit?
a). Evidence of shipment of goods
b). Letter of introduction c). Handing over the documents to an applicant d). Presentation of complying documents by the beneficiary
73. An exchange rate is the price of-
a). Local currency in terms of foreign currency
b). Foreign currency in terms of Local currency c). Other currency expressed in terms of another currency d). All of these
74. Which of the following exchange rate is applicable for LC-
a). OD sight/BC selling rate
b). TT clean c). TT doc d) TT doc selling
75. A credit opened on the basis of an original credit in favour of another beneficiary is called-
a). Revolving credit
b). Security credit c) Back to back credit d). Transferrable credit. 76. An exporter sells goods overseas on FOB and CIF Inco terms respectively. Who is responsible for the freight and other charges in each?
a). Issuing bank b). Exporter c). Importer d). Advising bank 78. Back to Back LC should be- a). Sight LC b). Usance LC c). Stand by LC d). All of the above
79. Packing credit is-
a). Advance for packing goods for export b). Pre- shipment finance for export c). A priority sector advance d). Advance for import
80. Who is responsible for issuing Bill of lading?
a). Shipping company b). Shipping company agent c). a & b d) None of these
