Banking Services Management Set 3
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This set of Banking Services Management (BSM) Multiple Choice Questions & Answers (MCQs) focuses on Banking Services Management Set 3
Q1 | In terms of the N.I. Act, finder of a lost cheque is :
- a holder but not holder in due course, if payable to order
- a holder in due course, if payable to bearer
- both holder a
- holder in due course, in either case
Q2 | The charge created on a security of National Savings Certificate is -
- pledge
- hypothecation
- assignment
- .mortgage
Q3 | Internet is the cheapest of all banking channels and helps banks togain substantially in terms of………….cost.
- auditing
- deposit
- investment
- transaction
Q4 | Drawing power in an account means
- limit sanctioned
- value of security
- value of security minus unpa
- stock
Q5 | Lien becomes time-barred three years after
- the date of loan
- date of delivery o the relative goods
- due date of loan
- lien has no limitation period
Q6 | Negative lien means -
- a declaration by a company not to encumber assets of the company without previous consent of banker
- deposit of title deeds with the bank with an oral declaration to mark bank's lien
- a lien letter execut
- by the company authorising the bank to mark lien on its fixed deposit receipt
Q7 | Letter of Probate means-
- a letter attached with a will containing signatures of the witnesses
- confirmation of succession certificate
- a certificate issu
- by the court containing the name of the person who has to administer the property of a deceased person
Q8 | Non-registration of a firm will affect in the following manner-
- on dissolution of the firm, remaining partners will have to approach to the court for settlement of their dues.
- bank will not allow an unregistered firm to open an account.
- no partner shall be in a position to institute a suit against any other partner of the firm
- none of these
Q9 | Working Capital Gap means-
- total current assets minus total current liabilities
- total assets minus intangible assets
- total liabilities minus terms liabilities.
- total current assets minus current liabilities (other than bank
Q10 | …………… constitute the largest source of funds for the banks
- cash
- loan
- deposit
- agency service
Q11 | Banker's lien is a type of security.
- hypothecated
- mortgaged
- impli
- pledge
Q12 | Section 85(1) of the Negotiable Instrument Act 1881 provides protectionto the paying banker in respect of
- forged endorsement
- material alterations on the face of the cheque
- forgery of drawer's signature
- all of these
Q13 | Collection of cheques for customer is a………….function of bank.
- agency function
- trustee function
- plann
- function
Q14 | In periods of boom, which leads to economic instability, Reserve Bankresorts to
- sale in the market of first class securities in its possession to reduce the supply of money as a measure of open market operations
- buying of approved securities in the market as a measure of pen market operations
- hike in the bank rate as a measure of open market operations
- none of these
Q15 | Under Section 17 of the Banking Regulation Act 1949, every bankingcompany incorporated in India is required to transfer each year to a reserve fund a sum equivalent to not less than
- 10 per cent of profit before dividends;
- 20 per cent of profit after interest tax and dividend;
- 25 per cent of profit before dividends;
- 5 per cent of gross profit
Q16 | After a customer has closed the account______
- the banker is no more liable to observe secrecy of his account because the contractual relationship comes to an end
- the banker is still bound by his duty of secrecy
- the banker's duty of secrecy comes to an e
- in terms of the provisions of the negotiable instrument act, 1881
Q17 | ………….is a new scheme of deposit mobilization have been evolved bythe Indian commercial banks.
- current deposit
- saving deposit
- insurance link
- deposit
Q18 | A mandate may continue to be operative even in the case of—
- death of the agent
- lunacy of the agent
- insolvency of the agent
- none of these
Q19 | ………….is a document issued by the bank acknowledge the receipt of afixed sum of money on deposit.
- collection receipt
- withdrawal receipt
- fix
- deposit receipt
Q20 | A bill should be presented for acceptance in case of insolvency of adrawee to
- official receiver
- drawee in case of need
- acceptor for honour
- none of the above
Q21 | An order instrument can be made payable to the bearer by making
- conditional endorsement
- full endorsement
- general endorsement
- none of the above
Q22 | The endorser will not liable to the holder on dishonor of a negotiableinstrument if he makes
- sans-recourse endorsement
- facultative endorsement
- sans-frais endorsement
- none of the above
Q23 | Negotiation-back implies
- return of the instrument back of he person who indorsed it earlier
- the endorser does not want the instrument to be indorsed back to him
- the endorser does not want the endorsee to incur any expenses on endorser’s account
- none of the above
Q24 | Once a bearer instrument always a bearer instrument is true in case of
- a cheque only
- a bill of exchange only
- all negotiable instruments
- none of the above
Q25 | ……are treated as negotiable instrument by usage or custom of trade.
- bill of exchange
- promissory note
- cash
- hundies