LEGAL AND REGULATORY ASPECTS OF BANKING SOLVED PAPER
1. Co.op Banks operating in different states have to get themselves registered under ......................
a. RBI Act
b. Multi State Co.op Societies Act
c. State Co.op Societies Act
d. B R Act
Answer: B
2. Exposure norms are applicable to which of the following ?
i) Advance against bank's own deposit
ii) Advance against LIP
iii) Advance against NSC
a) Only (i) and (ii)
b) Only (i) and (iii)
c) Only (ii) and (iii)
d) (i), (ii) and (iii)
Answer : C
3. The essential features of Pass through Certificate are ..........................
a. A direct participation in the case flow is sold .
b. Receipt of asset cash flow is deposited in a designated account
c.The funds are passed on to certificate holders
d. All the above
Answer : D
4. Debenture is a document acknowledging ............................
a. Company's indebtedness
b. Company's ownership
c. Ownership of machinery
d. None
Answer : A
5. Under Letter of Credit , Bill Means ...........................
a. Bill of Entry
b. Bill of Lading
c. Bill of Exchange
d. Invoice
Answer : C
6. When the LC specifies the bank that is to negotiate the bills drawn under the LC then the bank is also called......................
a. Confirming Bank
b. Reimbursing Bank
c. Nominated Bank
d. None of the above
Answer : C
9. The .............................may apply to the Central Government for an order of moratorium in respect of banking company.
a. Banking Company
b. ROC
c. Reserve Bank
d. None of the above
Answer : C
10. The provision of the scheme of amalgamation sanctioned by the central government under Section 45 of the BR Act will...............the provisions of other laws.
a. Not affect
b. have overriding effect on
c. will be subject to
d. None of the above
Answer : B
11. In winding up proceedings the depositors shall ......................for the amounts shown in the books of the bank standing to their credit.
a. be deemed to have filed claim
b. have to file claim
c. have no claim
d. None of the above
Answer : A
12. Income earned by a shareholder on a company shareholding is called .............................
a. Interest
b. Discount
c. Dividend
d. None
Answer : C
13. .................................................may apply to the High Court for winding up of a banking company under Section 38 of the BR Act .
a. ROC
b. Reserve Bank
c. Central Government
d. None of the above
Answer : B
14. The High Court shall order winding up of a banking company if the banking company is unable to ........................
a. pay its debts
b. file returns in time
c. eliminate non- performing assets
d. None of the above
Answer : A
15. When the confirming bank confirm the credit it ............................
a. does not take any liability
b. undertakes on its part the liability under the LC
c. undertakes to make timely of documents and bills to the buyer or his bank
d. None of the above
Answer : B
16. From the following which function is of securitisation company ?
a. Acquisition of Loan transaction from the lender
b. Help the lender in recovery by sale of charged property
c. Take Legal steps against the defaulter borrower on behalf of the lender
d. Acquisition of Financial assets from the originator
Answer : D
17. Who exercises the main administrative control over the functioning of co.op banks ?
a. RBI
b. NABARD
c. Central Government through Coop Department
d. State govt through registrar of Coop Societies
Answer : D
18. The Confirming bank is .............................
a. the issuing bank when it confirms the issue of the LC
b. the negotiating bank when it confirms the negotiation of bills
c. the advising bank when it confirms the LC
d. None of the above
Answer : C
19. The minimum number of directors required in a public and private companies are ...............................
a. 3 & 1
b. 7 & 2
c. 3 & 2
d. 5 & 2
Answer : C
20. The LC Issuing Bank is also called .....................
a. The Importers Bank or the opening Bank
b. The advising Bank or the Confirming Bank
c. Negotiating or Nominated Bank
d. the reimbursement bank
Answer : A
a. RBI Act
b. Multi State Co.op Societies Act
c. State Co.op Societies Act
d. B R Act
Answer: B
2. Exposure norms are applicable to which of the following ?
i) Advance against bank's own deposit
ii) Advance against LIP
iii) Advance against NSC
a) Only (i) and (ii)
b) Only (i) and (iii)
c) Only (ii) and (iii)
d) (i), (ii) and (iii)
Answer : C
3. The essential features of Pass through Certificate are ..........................
a. A direct participation in the case flow is sold .
b. Receipt of asset cash flow is deposited in a designated account
c.The funds are passed on to certificate holders
d. All the above
Answer : D
4. Debenture is a document acknowledging ............................
a. Company's indebtedness
b. Company's ownership
c. Ownership of machinery
d. None
Answer : A
5. Under Letter of Credit , Bill Means ...........................
a. Bill of Entry
b. Bill of Lading
c. Bill of Exchange
d. Invoice
Answer : C
6. When the LC specifies the bank that is to negotiate the bills drawn under the LC then the bank is also called......................
a. Confirming Bank
b. Reimbursing Bank
c. Nominated Bank
d. None of the above
Answer : C
9. The .............................may apply to the Central Government for an order of moratorium in respect of banking company.
a. Banking Company
b. ROC
c. Reserve Bank
d. None of the above
Answer : C
10. The provision of the scheme of amalgamation sanctioned by the central government under Section 45 of the BR Act will...............the provisions of other laws.
a. Not affect
b. have overriding effect on
c. will be subject to
d. None of the above
Answer : B
11. In winding up proceedings the depositors shall ......................for the amounts shown in the books of the bank standing to their credit.
a. be deemed to have filed claim
b. have to file claim
c. have no claim
d. None of the above
Answer : A
12. Income earned by a shareholder on a company shareholding is called .............................
a. Interest
b. Discount
c. Dividend
d. None
Answer : C
13. .................................................may apply to the High Court for winding up of a banking company under Section 38 of the BR Act .
a. ROC
b. Reserve Bank
c. Central Government
d. None of the above
Answer : B
14. The High Court shall order winding up of a banking company if the banking company is unable to ........................
a. pay its debts
b. file returns in time
c. eliminate non- performing assets
d. None of the above
Answer : A
15. When the confirming bank confirm the credit it ............................
a. does not take any liability
b. undertakes on its part the liability under the LC
c. undertakes to make timely of documents and bills to the buyer or his bank
d. None of the above
Answer : B
16. From the following which function is of securitisation company ?
a. Acquisition of Loan transaction from the lender
b. Help the lender in recovery by sale of charged property
c. Take Legal steps against the defaulter borrower on behalf of the lender
d. Acquisition of Financial assets from the originator
Answer : D
17. Who exercises the main administrative control over the functioning of co.op banks ?
a. RBI
b. NABARD
c. Central Government through Coop Department
d. State govt through registrar of Coop Societies
Answer : D
18. The Confirming bank is .............................
a. the issuing bank when it confirms the issue of the LC
b. the negotiating bank when it confirms the negotiation of bills
c. the advising bank when it confirms the LC
d. None of the above
Answer : C
19. The minimum number of directors required in a public and private companies are ...............................
a. 3 & 1
b. 7 & 2
c. 3 & 2
d. 5 & 2
Answer : C
20. The LC Issuing Bank is also called .....................
a. The Importers Bank or the opening Bank
b. The advising Bank or the Confirming Bank
c. Negotiating or Nominated Bank
d. the reimbursement bank
Answer : A