LEGAL AND REGULATORY ASPECTS OF BANKING SOLVED PAPER
1. The maximum number of members in a public company can be ............................
a. 12
b. 50
c. 51
d. any number
Answer : D
2. In which of the following documents the limitation period is 3 Years ?
a. Demand Promissory note from the date of DP note
b. Overdrafts - from the date of advances
c. Term Loans - from the date of default in payment of each installment
d. All the above
Answer : D
3. Which of the following statements is correct ?
a. There is no period of limitation for sale of pledged goods
b. In case of Hypothecation, the limitation period if 3 years from the date of loan
c. Bill of Exchange has 3 Years limitation period from the due date
d. All the above
Answer: D
4. Extension of Limitation period can be way of ..................
a. obtaining fresh set of documents
b. Acknowledgement of debt
c. Part Payment
d. All the above
Answer : D
5. The process of providing documents to police or CBI is :
a. They may seize a document set for investigation in case of fraud
b. They may be given certified Xerox Copy
c. If they insist for original ,Xerox Copy should be retained with the bank
d. All the above
Answer : D
6. Which of the following are the important cash books being maintained by the Bank ?
a. Cash Received in the Payment Book
b. Sectional Cash Book
c. Cash Balance Book
d. All the above
Answer : D
7. Which of the following can be proved in the court of law according to the Bankers Books Evidence Act ?
a. Existence of a document
b. Condition of a document
c. Contents of a document
d. All the above
Answer : D
8. In which year the Bankers Books Evidence Act was enacted ?
a. 1891
b. 1906
c. 1934
d. 1947
Answer : A
9. Which of the following statements is correct regarding the provisions of Bankers Books Evidence Act ?
a. Entries in Books of Accounts regularly kept in the course of business are relevant in the matter of inquiry
b. However , above statement shall not alone be sufficient evidence to check any person with liability.
c. The entries in the books can be used as corroborative evidence
d. All the above
Answer : D
10. Which of the following statements is correct regarding the Bankers Books Evidence Act ?
a. It is a special act which provides certain privileges to bank
b. The Act deals in connection with mode of providing of entries in their books
c. The act also have provision regarding production of Books in the court of Law
d. All the above
Answer : B
11. Which of the following are the essential features of Law of evidence ?
a. The conditions and contents of a document can be proved before a court only by producing original document
b. So long original documents are available , a copy cannot be produced
c. However , there are certain exceptions to the law
d. All the above
Answer : D
12. When the ................... is in possession of goods , a lien can be exercised.
a. seller
b. buyer
c. agent of the buyer
d. carrier
Answer : A
13. In a contract of indemnity , the liability of indemnifier is ........................
a. Primary
b. Secondary
c. Either Primary or Secondary
d. None of these
Answer : A
14. In a contract of guarantee , the liability of surety is ........................
a. Primary
b. Secondary
c. Either Primary or Secondary
d. None of these
Answer : B
15. The minimum number of directors required in a public company is .........................
a. 3
b. 7
c. 12
d. 15
Answer : A
16. Where is the Appellate Tribunals is located ?
a. Thiruvananthapuram
b. Mumbai
c. East State Head Quarter
d. None of these
Answer : B
17. What is the fee payable upto a Loan amount of Rs. 10 lakhs?
a. 10,000
b. 12,000
c. 1,50,000
d. 20,000
Answer : B
18. What is the fee payable for a debt amount above Rs. 10 Lakhs ?
a. Rs. 1000 for every Rs. 1 Lac and part thereof
b. Rs. 1200 for every Rs. 1 Lac and part thereof
c. Rs. 1500 for every Rs. 1 Lac and part thereof
d. Rs. 2000 for every Rs. 1 Lac and part thereof
Answer : A
19. What is the maximum amount of fee payable for filing a Recovery Case with the Debt Recovery Tribunal ?
a. Rs. 1,00,000
b. Rs. 1,20,000
c. Rs. 1,50,000
d. 12% of the Debt amount
Answer : C
20 . How much is the fee payable if a suit is transferred to Debts Recovery Tribunal from a court ?
a. Rs. 1,00,000
b. Rs. 1,50,000
c. 80% of the debt amount
d. No such fee is payable
Answer : D
a. 12
b. 50
c. 51
d. any number
Answer : D
2. In which of the following documents the limitation period is 3 Years ?
a. Demand Promissory note from the date of DP note
b. Overdrafts - from the date of advances
c. Term Loans - from the date of default in payment of each installment
d. All the above
Answer : D
3. Which of the following statements is correct ?
a. There is no period of limitation for sale of pledged goods
b. In case of Hypothecation, the limitation period if 3 years from the date of loan
c. Bill of Exchange has 3 Years limitation period from the due date
d. All the above
Answer: D
4. Extension of Limitation period can be way of ..................
a. obtaining fresh set of documents
b. Acknowledgement of debt
c. Part Payment
d. All the above
Answer : D
5. The process of providing documents to police or CBI is :
a. They may seize a document set for investigation in case of fraud
b. They may be given certified Xerox Copy
c. If they insist for original ,Xerox Copy should be retained with the bank
d. All the above
Answer : D
6. Which of the following are the important cash books being maintained by the Bank ?
a. Cash Received in the Payment Book
b. Sectional Cash Book
c. Cash Balance Book
d. All the above
Answer : D
7. Which of the following can be proved in the court of law according to the Bankers Books Evidence Act ?
a. Existence of a document
b. Condition of a document
c. Contents of a document
d. All the above
Answer : D
8. In which year the Bankers Books Evidence Act was enacted ?
a. 1891
b. 1906
c. 1934
d. 1947
Answer : A
9. Which of the following statements is correct regarding the provisions of Bankers Books Evidence Act ?
a. Entries in Books of Accounts regularly kept in the course of business are relevant in the matter of inquiry
b. However , above statement shall not alone be sufficient evidence to check any person with liability.
c. The entries in the books can be used as corroborative evidence
d. All the above
Answer : D
10. Which of the following statements is correct regarding the Bankers Books Evidence Act ?
a. It is a special act which provides certain privileges to bank
b. The Act deals in connection with mode of providing of entries in their books
c. The act also have provision regarding production of Books in the court of Law
d. All the above
Answer : B
11. Which of the following are the essential features of Law of evidence ?
a. The conditions and contents of a document can be proved before a court only by producing original document
b. So long original documents are available , a copy cannot be produced
c. However , there are certain exceptions to the law
d. All the above
Answer : D
12. When the ................... is in possession of goods , a lien can be exercised.
a. seller
b. buyer
c. agent of the buyer
d. carrier
Answer : A
13. In a contract of indemnity , the liability of indemnifier is ........................
a. Primary
b. Secondary
c. Either Primary or Secondary
d. None of these
Answer : A
14. In a contract of guarantee , the liability of surety is ........................
a. Primary
b. Secondary
c. Either Primary or Secondary
d. None of these
Answer : B
15. The minimum number of directors required in a public company is .........................
a. 3
b. 7
c. 12
d. 15
Answer : A
16. Where is the Appellate Tribunals is located ?
a. Thiruvananthapuram
b. Mumbai
c. East State Head Quarter
d. None of these
Answer : B
17. What is the fee payable upto a Loan amount of Rs. 10 lakhs?
a. 10,000
b. 12,000
c. 1,50,000
d. 20,000
Answer : B
18. What is the fee payable for a debt amount above Rs. 10 Lakhs ?
a. Rs. 1000 for every Rs. 1 Lac and part thereof
b. Rs. 1200 for every Rs. 1 Lac and part thereof
c. Rs. 1500 for every Rs. 1 Lac and part thereof
d. Rs. 2000 for every Rs. 1 Lac and part thereof
Answer : A
19. What is the maximum amount of fee payable for filing a Recovery Case with the Debt Recovery Tribunal ?
a. Rs. 1,00,000
b. Rs. 1,20,000
c. Rs. 1,50,000
d. 12% of the Debt amount
Answer : C
20 . How much is the fee payable if a suit is transferred to Debts Recovery Tribunal from a court ?
a. Rs. 1,00,000
b. Rs. 1,50,000
c. 80% of the debt amount
d. No such fee is payable
Answer : D