S T U D Y C I R C L E
HO: Naranpur, Belagachhia, Cuttack-754005 (Odisha)
Mob: 9437184584
MID COURSE TEST -III
1. When a Banker gives written opinion to the other Banker regarding financial
position/standing of his Customer, the opinion is:
(a) Open document(b) Confidential
(c) Not necessarily confidential(d) None of these
2. Banker-Customer relationship stands terminated:
(a) On the death of the Customer(b) On Customer becoming lunatic
(c) On Customer being declared insolvent(d) On closure of the account
3. Credit risk to the Bank is higher from the
(a) Debit card holders(b) Credit card holders(c) Both the above(d) None of these
4. Offering Safe Custody facility and Lockers is:
(a) Main functions of the Bank(b) Traditional functions of the Bank
(c) Miscellaneous functions of the Bank(d) Not a function of the Bank
5. Internet Banking, Telephone Banking, ATM Banking and Mobile Banking are called:
(a) Commercial Banking(b) Retail Banking
(c) Foreign Banking(d) Electronic Banking
6. 14 major Indian Scheduled Commercial Banks were nationalized on:
(a) 15thAugust 2000(b) 19th July 1969(c) 15th April 1980(d) 19th July 1980
7. The term 'Banking' has been defined in:
(a) RBI Act,1934(b) Negotiable Instrument Act, 1881
(c) Banking Regulation Act,1949(d) Indian Contract Act
8. Rate of interest on Fixed Deposit/Term Deposit of Banks are fixed by:
(a) Government ofIndia(b) Reserve Bank of India
(c) Indian BankAssociation(d) Banks can fix their own interest rate
9. Commission/Exchange or fee earned on Miscellaneous business by theBanks is known as
Non interest income.
(a) True(b) False
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10. When a Customer takes a Locker in the Bank,the relationship between theBank and the
Customer is:
(a) Lessor and Lessee(b) Lessee and Lessor
(c) Principal and Agent(d) Trustee and Beneficiary
11. When a Customer avails an overdraft facility with the Bank, their relationshipis
knownas:
(a) Lessor and Lessee (b) Debtor and Creditor
(c) Creditor and Debtor(d) Bailer&Bailee
12. Interest in Savings Bank Accounts is paid by the Banks on:
(a) Maximum balance maintained in a month
(b) On Daily balance maintained
(c) Minimum credit balance maintained between 10th & last working day of eachmonth.
(d) Maximum credit balance maintained between 10th & last working day of each month.
13. Current Account deposits& Saving Bank Account deposits are called:-
(a) Flexi deposits(b) Term deposits(c) Demand deposits(d) Hybrid deposits
14. Maximum period for which Fixed Deposits can be accepted by the Bank is
(a) Five Years(b) Seven Years(c) Fifteen Years(d) Ten Years
15. Minimum period for which Fixed Deposits can be accepted by the Bank is
(a) One Month(b) Seven Days(c) Fifteen Days(d) Three Months
16. SBI Group and Nationalised Banks constitute to over 70% of Banking Business in India.
(a) False(b) True
17. Housing Loans are usually granted for:
(a) Short Term(b) Medium Term(c) Long Term(d) Either (b) or (c)
18. Property mortgaged equitably with the Bank as security against a loan attractsstamp duty:
(a) onthe loan amount granted
(b) on the value of the property
(c) no stamp duty is required to be paid
(d) a fixed stamp duty is required to be paid
19. A loan for vehicle is granted against the security of:-
(a) Pledge of Vehicle(b) Hypothecation ofVehicle
(c) Mortgage ofVehicle(d) Mortgage of all assets of the borrower
20. Loan for purchase of vehicle can be granted:
(a) for purchase of a two wheeler(b) for purchase of a three wheeler
(c) for purchase of a four wheeler(d) For (a) or (b) or (c) above
21. A loan for a refrigerator is granted against the security of:
(a) Pledge of item financed(b) Hypothecation of item financed
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(c) Mortgage of item financed(d) Mortgage of other assets of the borrower
22. RBI has classified Assets or Loans into:
(a) Three categories(b) Two categories(c) Four categories(d) Five categories
23. A Performing Asset is also called:-
(a) Standard Asset (b) Sub-standard Asset (c) Doubtful Asset (d) Useful Asset
24. A Loan Account should be classified as NPA Account by the Bank, if the interestcharged
during any quarter is not serviced fully within_________ days from the end of
thequarter:-
(a) 40 days(b) 30 days(c) 90 days(d) 10 days
25. A Sub-standard Asset would be one, which has remained an NPA for:-
(a) Less than or equal to 12 months(b) More than 12 months
(c) Less than & more than 12 months(d) None of the above
26. A Loan or advance of a Bank is defined as NonPerforming Asset (NPA) when it remains
overdue or ‘Out of order’ for a period of:-
(a) 90 days(b) Less than 90 days(c) More than 90 days(d) More than 180 days
27. If Asset's recovery seems improbable on the basis of currently known facts,conditions
and values for the loan, it is called as:-
(a) Loss Asset(b) Doubtful Asset(c) Sub-standard Asset(d) Standard Asset
28. If three EMI's of a loan remain unpaid for a period of over 90 days but less than 12
Months, the Account will be treated as:-
(a) Standard Asset(b) Sub-standard Asset (c) Doubtful Asset(d) Loss Asset
29. Ancillary services provided by Bank include:-
(a) Credit Cards(b) Selling of Mutual Funds
(c) Insurance Products(d) All of the above.
30. Home Loans are about________of the total Retail Loans of the Banks:-
(a) 28% (b) 49%(c) 16%(d) 7%
31. Retail loans are generally granted to:-
(a) Professionals, Individuals, Company
(b) Individuals, Companies, Institutions
(c) Professionals, Salaried Employees, Corporations
(d) Professionals, Salaried Employees, Individuals
32. What are various ways in which DRA's charge for their services:-
(a) A flat fee or a percentage of what is collected
(b) More fee for handling a difficult debtor
(c) As per their own choice from case to case
(d) None of the above
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33. Debt Recovery Agencies are_________ that collect overdue accounts receivable for
Banks:
(a) Local people(b) Bank Employees only
(c) Third Party Business(d) Second Party Business
34. Which are the methods/facilities generally used by Collection Agencies to collect debts:-
(a) Entering into debtor's house by force
(b) Sitting outside the debtor's door till he has paid up
(c) Direct contact via telephone calls, letters and field visits
(d) Getting the help of a spying agency to spy on the debtor everyday.
35. Code of conduct in recovery process may include:-
(a) Must look like a bank employee
(b) Must carry a bank employee card
(c) Good dress code, verbal and written communication
(d) Must look like a Bollywood actor
36. In case of serious violation of directives, RBI may impose a ban on Individuals, Recovery
Agencies and the Banks:
(a) True(b) False
37. How a Bank is benefited by using third party Debt Collection Agencies?
(a) Saving in Litigation cost and increased chances of recovery by using specialist
negotiators
(b) Saves hassles of being shouted at by the debtor
(c) Saves Bank's manpower and they can deploy their staff in other developmental
pursuits.
(d)(a) and (c) above
38. In case of a default, the movable assets charged to the Bank byway of hypothecation,
can be possessed by the Bank or DRA and thereafter sold or auctioned to recover the
dues of the Bank signifies which recovery process:
(a) Legal Recovery Process(b) Normal Recovery Process
(c) Difficult Recovery Process(d) Assets Possession Process
39. In a contract of Agency, age limit of both the parties, i.e.; Principal and Agent has to be
(a) 21 years and above(b) Above 21 years (c) Above 18 years(d) 19 years and above
40. Consideration is necessary in an Agency Contract in terms of Section 186 of Indian
Contract Act.
(a) True(b) Partially True(c) False(d) Partially False
41. A difficult debtor is:
(a) who can pay but does not wants to pay.
(b) who pays the dues only on personal contact?
(c) who is a willfuldefaulter, having means to pay up but not willing to do so
(d) Both (a) and (c)
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42. Collections from Agriculturist borrowers should be made soon after:-
(a) They sow seeds for crop(b) The crop is fully fertile
(c) The crops are sold(d) Season for crop gets finished
43. Recovery for salaried borrower should be done, when salary is received by him or
credited to his account:
(a) True(b) False
44. The instructions of the principal to the agent has to be
(a) Unlawful(b) Ambiguous(c) Confusing(d) Lawful
45. The functions of the Recovery Agents under Agency Agreement include:-
(a) Only collection of the specified dues from the Customers
(b) Only documenting and reporting collections / developments to the principal
(c) Only remitting the collections to the principal
(d) All of the above.
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