LEGAL AND REGULATORY ASPECTS OF BANKING SOLVED PAPER
1. Principal function of a banks are :
a. accepting deposits
b. lending and investing
c. non fund business and remittance service
d. all the above
Answer : D
2. What can be the min and max denomination of bank notes under the provision of RBI ?
a. Rs. 1 to Rs. 1000
b. Rs. 2 to Rs. 1000
c. Rs. 2 to Rs. 10000
d. Rs. 10 to Rs. 10000
Answer : C
3. To take care of temporary liquidity problems of central and state govt , what kind of loan is given to RBI ?
a. Treasury Bills
b. Dated Securities
c. Short Duration Bonds
d. Ways and Means advances
Answer : D
4. The advising bank's responsibility is .................
a. to inform the issuing bank as to whom to issue letter of credit
b. to advise the buyer to dispatch the documents by the seller
c. to inform the beneficiary / seller about the letter of credit
d. None of the above
Answer : C
5. The advising Bank is also called as ..............
a. Confirming Bank
b. Notifying Bank
c. Reimbursing Bank
d. None of the above
Answer : B
6. Negotiating Bank is the Bank which ...........................
a. negotiates the preliminary contract of sale between the buyer and seller
b. makes the payment of bills drawn by the seller and accepts the documents
c. guarantees payment by the issuing bank
d. None of the above
Answer : B
7. The Banking Ombudsman can be an arbitrator in disputes between ............
a.Two Banking Companies
b. Two or More Customers
c. A Bank and the Government
d. None of the above
Answer : A
8. Directions can be issued to banking companies on loans and advances ......................
a. in strict confidence
b. in public interest
c. in the interest of borrowers
d. None of the above
Answer : B
9. In case of fraud committed by the debtor on whose behalf the bank had given guarantee , the Bank .............
a. need not to pay the beneficiary
b. has to pay the beneficiary
c. direct the beneficiary to sue the debtor
d. None of the above
Answer : B
10. The Letter of Credit is opened on the request of .......................
a. Issuing Bank
b. Applicant
c. Beneficiary
d. Confirming Bank
Answer : B
a. accepting deposits
b. lending and investing
c. non fund business and remittance service
d. all the above
Answer : D
2. What can be the min and max denomination of bank notes under the provision of RBI ?
a. Rs. 1 to Rs. 1000
b. Rs. 2 to Rs. 1000
c. Rs. 2 to Rs. 10000
d. Rs. 10 to Rs. 10000
Answer : C
3. To take care of temporary liquidity problems of central and state govt , what kind of loan is given to RBI ?
a. Treasury Bills
b. Dated Securities
c. Short Duration Bonds
d. Ways and Means advances
Answer : D
4. The advising bank's responsibility is .................
a. to inform the issuing bank as to whom to issue letter of credit
b. to advise the buyer to dispatch the documents by the seller
c. to inform the beneficiary / seller about the letter of credit
d. None of the above
Answer : C
5. The advising Bank is also called as ..............
a. Confirming Bank
b. Notifying Bank
c. Reimbursing Bank
d. None of the above
Answer : B
6. Negotiating Bank is the Bank which ...........................
a. negotiates the preliminary contract of sale between the buyer and seller
b. makes the payment of bills drawn by the seller and accepts the documents
c. guarantees payment by the issuing bank
d. None of the above
Answer : B
7. The Banking Ombudsman can be an arbitrator in disputes between ............
a.Two Banking Companies
b. Two or More Customers
c. A Bank and the Government
d. None of the above
Answer : A
8. Directions can be issued to banking companies on loans and advances ......................
a. in strict confidence
b. in public interest
c. in the interest of borrowers
d. None of the above
Answer : B
9. In case of fraud committed by the debtor on whose behalf the bank had given guarantee , the Bank .............
a. need not to pay the beneficiary
b. has to pay the beneficiary
c. direct the beneficiary to sue the debtor
d. None of the above
Answer : B
10. The Letter of Credit is opened on the request of .......................
a. Issuing Bank
b. Applicant
c. Beneficiary
d. Confirming Bank
Answer : B