LEGAL AND REGULATORY ASPECTS OF BANKING SOLVED PAPER
1. A borrower account is designated as non performing asset when the interest and/or installment remains unpaid for ........................
a. 1 Quarter
b. 2 Quarters
c. 3 Quarters
d. 4 Quarters
Answer : A
2. RBI ensures that banks operate within set norms by conducting ............... inspections and ............... monitoring .
a. on site , off site
b. field , commodity prices
c. stock, stock market
d. None of these
Answer : A
3. Transfer of Property Act basically contains provisions relating to transfer of .................
a. Movable property and goods
b. Immovable property
c. Either a or b
d. None of the above
Answer : B
4. A public company should have minimum paid up capital of RS.
a. 5 Crore
b. 5 Lakh
c. 1 Crore
d. 1 Lakh
Answer : B
5. There is no ........... as to the quality or fitness of goods for any particular purpose .
a. Implied Condition
b. Implied Warranty
c. Expressed Condition
d. Expressed Warranty
Answer : A
6. A contract if entered into a banking company with any party in contravention of a direction issued by the Reserve Bank ....................
a. Shall be invalid
b. Shall render the banking company liable to prosecution for violation of directors
c. Shall render the bank and any other party to the contract liable to prosecution for violation of directors
d. None of the above
Answer : C
7. A lease is a ............. transfer of property .
a. Absolute
b. Partial
c. Limited
d. Either b or c
Answer : D
8. For the purpose of maintenance of liquid assets under Section 24 of the BR Act , unencumbered approved securities shall be valued at ................
a. Face value
b. Current Market Price
c. Average of Market Price for previous 6 Months
d. None of the above
Answer : B
9. When the .......................... is in possession of goods , the lien can be exercised .
a. buyer
b. agent of the buyer
c. seller
d. carrier
Answer : C
10. Any person aggrieved by an order of Adjudicating Authority can appeal to ..................
a. RBI
b. High Court
c. Special Director ( Appeals )
d. Appellate Tribunal for foreign exchange
Answer : C
11. An Adjudicating Authority can enquire contravention under FEMA only if a complaint is filed by ...........
a. RBI
b. High Court
c. Special Director ( Appeals )
d. Central Government
Answer : D
12. Frequency of First Tranche Returns is ................
a. Monthly
b. Monthly / Quarterly
c. Monthly / Quarterly / Half yearly
d. None of these
Answer : C
13. Second Tranche of OSMOS returns cover .............
a. asset quality
b. liquidity and interest rate exposures
c. ownership pattern of deposits
d. None of these
Answer : B
14. The penal interest chargeable on a banking company under Section 24(4) of the BR Act for not maintaining liquid assets as specified under Section 24 (2A)(a) of the act ....................
a. may be waived by the Reserve Bank if it is satisfied that the bank had sufficient cause for the failure.
b. has to be charged in all cases and the Reserve Bank has no option to waive penal interest .
c. can be reduced by the Reserve Bank
d. None of the above
Answer : A
15. A Banking company has to prepare profit and loss accounts and balance sheet as at the ................... or at the expiration of 12 Months ending with such date as notified by the central Govt.
a. End of Calendar Year
b. End of March
c. End of June
d. None of the above
Answer : A
16. Quarterly on-site visits are undertaken in respect of ....................
a. all banks
b. urban co-operative banks
c. newly licensed banks during 1st year
d. None of these
Answer : C
17. Liquid Assets required to be maintained in India under Section 24 of BR Act may be held in the form of..................
a. cash only
b. cash and gold only
c. gold and unencumbered approved securities
d. None of the above
Answer : C
18. Under Section 37, of Banking Regulation Act , a moratorium order can be issued by the High Court for a maximum total period of ...................
a. 1 Month
b. 6 Month
c. 1 Year
d. None of these
Answer : B
19. When a banking company is placed under moratorium under Section 45 of the BR Act , the RBI must prepare a scheme ....................
a. VRS for staff
b. Capital buy back
c. Reconstruction of a company or amalgamation with any other bank
d. None of these
Answer : C
20. An order for winding up banking company can be issued by .......................
a. The High Court
b. The RBI
c. Central Govt
d. None of These
Answer : A
a. 1 Quarter
b. 2 Quarters
c. 3 Quarters
d. 4 Quarters
Answer : A
2. RBI ensures that banks operate within set norms by conducting ............... inspections and ............... monitoring .
a. on site , off site
b. field , commodity prices
c. stock, stock market
d. None of these
Answer : A
3. Transfer of Property Act basically contains provisions relating to transfer of .................
a. Movable property and goods
b. Immovable property
c. Either a or b
d. None of the above
Answer : B
4. A public company should have minimum paid up capital of RS.
a. 5 Crore
b. 5 Lakh
c. 1 Crore
d. 1 Lakh
Answer : B
5. There is no ........... as to the quality or fitness of goods for any particular purpose .
a. Implied Condition
b. Implied Warranty
c. Expressed Condition
d. Expressed Warranty
Answer : A
6. A contract if entered into a banking company with any party in contravention of a direction issued by the Reserve Bank ....................
a. Shall be invalid
b. Shall render the banking company liable to prosecution for violation of directors
c. Shall render the bank and any other party to the contract liable to prosecution for violation of directors
d. None of the above
Answer : C
7. A lease is a ............. transfer of property .
a. Absolute
b. Partial
c. Limited
d. Either b or c
Answer : D
8. For the purpose of maintenance of liquid assets under Section 24 of the BR Act , unencumbered approved securities shall be valued at ................
a. Face value
b. Current Market Price
c. Average of Market Price for previous 6 Months
d. None of the above
Answer : B
9. When the .......................... is in possession of goods , the lien can be exercised .
a. buyer
b. agent of the buyer
c. seller
d. carrier
Answer : C
10. Any person aggrieved by an order of Adjudicating Authority can appeal to ..................
a. RBI
b. High Court
c. Special Director ( Appeals )
d. Appellate Tribunal for foreign exchange
Answer : C
11. An Adjudicating Authority can enquire contravention under FEMA only if a complaint is filed by ...........
a. RBI
b. High Court
c. Special Director ( Appeals )
d. Central Government
Answer : D
12. Frequency of First Tranche Returns is ................
a. Monthly
b. Monthly / Quarterly
c. Monthly / Quarterly / Half yearly
d. None of these
Answer : C
13. Second Tranche of OSMOS returns cover .............
a. asset quality
b. liquidity and interest rate exposures
c. ownership pattern of deposits
d. None of these
Answer : B
14. The penal interest chargeable on a banking company under Section 24(4) of the BR Act for not maintaining liquid assets as specified under Section 24 (2A)(a) of the act ....................
a. may be waived by the Reserve Bank if it is satisfied that the bank had sufficient cause for the failure.
b. has to be charged in all cases and the Reserve Bank has no option to waive penal interest .
c. can be reduced by the Reserve Bank
d. None of the above
Answer : A
15. A Banking company has to prepare profit and loss accounts and balance sheet as at the ................... or at the expiration of 12 Months ending with such date as notified by the central Govt.
a. End of Calendar Year
b. End of March
c. End of June
d. None of the above
Answer : A
16. Quarterly on-site visits are undertaken in respect of ....................
a. all banks
b. urban co-operative banks
c. newly licensed banks during 1st year
d. None of these
Answer : C
17. Liquid Assets required to be maintained in India under Section 24 of BR Act may be held in the form of..................
a. cash only
b. cash and gold only
c. gold and unencumbered approved securities
d. None of the above
Answer : C
18. Under Section 37, of Banking Regulation Act , a moratorium order can be issued by the High Court for a maximum total period of ...................
a. 1 Month
b. 6 Month
c. 1 Year
d. None of these
Answer : B
19. When a banking company is placed under moratorium under Section 45 of the BR Act , the RBI must prepare a scheme ....................
a. VRS for staff
b. Capital buy back
c. Reconstruction of a company or amalgamation with any other bank
d. None of these
Answer : C
20. An order for winding up banking company can be issued by .......................
a. The High Court
b. The RBI
c. Central Govt
d. None of These
Answer : A