LEGAL AND REGULATORY ASPECTS OF BANKING SOLVED PAPER
1. At least ..................of the total number of directors of a public company are to be persons whose period of office is liable to determination by retirement by rotation .
a. 1/2
b. 1/3
c. 2/3
d. 1/4
Answer : C
2. There are.............parties of a contract of indemnity .
a. 2
b. 3
c. 4
d. 5
Answer : A
3. Surety's liability .......................... if the principal debtor is released by the creditor.
a. discharged
b. liable
c. either a or b
d. None of these
Answer : A
4. If the liability of one surety is discharged by the creditor , liability of other surety is ........................
a. also discharged
b . not discharged
c. can be discharged
d. None of these
Answer : B
5. Ordinary Letter of Credit are usually ............. ie. the bills drawn there under have to be immediately .
a. Sights Credit
b. Acceptance Credit
c. Either a or b
d. None of these
Answer : A
6. Letter of Credit under which usance bills can be drawn is called an ....................
a. Sights Credit
b. Acceptance Credit
c. Either a or b
d. None of these
Answer : B
7. In a Revocable LC, the credit can be amended or cancelled by the ........................
a. Confirming Bank
b. Reimbursing Bank
c. Issuing Bank
d. Nominated Bank
Answer : C
8. Only ..................Letters of credit can be confirmed.
a. Revocable
b. Irrevocable
c. Either a or b
d. None of these
Answer : B
9. Depending upon the place where the bills are made , they can be classified into ...............
a.Inland Bills
b. Foreign Bills
c. Either a or b
d. None of these
Answer : C
10. Pledge means ........................ of goods for purpose of securing a payment of debt or performance of promise.
a. Lien
b. Bailment
c. Assignment
d. None of these
Answer : B
11. RBI undertakes banking business for the state govt under the provision of .....................
a. Sec 22 of RBI Act
b. Sec 21 of RBI Act
c. Sec 20 of RBI Act
d. Agreement between RBI & Govt Under Section 21A of RBI Act .
Answer : D
12. A Co-operative Bank can be which of the following ?
a. Primary Co-op Bank
b. District Central Co-op Bank
c. State Co-op Bank
d. All the above
Answer : D
13. Section 22 of RBI Act relate which aspects of banking ?
a. RBI authority to regulate credit
b. RBI authority to regulate banking business
c. RBI authority to function as a bank for govt business
d. RBI authority to issue and manage currency of India
Answer : D
14. How many Debt Recovery Tribunals have been set up in India ?
a. 27
b. 28
c. 29
d. 50
Answer : C
15. What is the jurisdiction area of a Debt Recovery Tribunal ?
a. Each state
b. One or more states / Union Territories
c. Throughout the country
d. No such criteria
Answer : B
16. The Central Govt has powers to authorize Tribunals to hear cases where amount involved is less than Rs. 10 Lac but more than .....................................
a. Rs. 1 Lakh
b. Rs. 2 Lakh
c. Rs. 5 Lakh
d. Rs. 7 Lakh
Answer : A
17. What central govt has powers to authorize Tribunals to hear cases where amount involved is less than Rs. 10 Lac but more than .....................................
a. To transfer all the cases of bank recovery from civil court to tribunals
b. To set up an exclusive agency for Bank recovery
c. To set up special tribunal which can provide speedy court remedies
d. All the above
Answer : C
18. What are the various modes available to the Recovery officer for proceeding to recover the amount of debt ?
a. Attachment or sale of movable or immovable property
b. Arrest the defendant or detention in jail
c. Appointing a Receiver for the management of the movable or immovable
d. All the above
Answer : D
19. Clean Loans are normally ........................
a. Secured Loans
b. Unsecured Loans
c. None of the above
d. Any of the above
Answer : B
20. What is the maximum limit of compensation of the banking ombudsman may award ?
a. 1 Lac
b. 5 Lac
c. 10 Lac
d. No Such Limit
Answer : C
a. 1/2
b. 1/3
c. 2/3
d. 1/4
Answer : C
2. There are.............parties of a contract of indemnity .
a. 2
b. 3
c. 4
d. 5
Answer : A
3. Surety's liability .......................... if the principal debtor is released by the creditor.
a. discharged
b. liable
c. either a or b
d. None of these
Answer : A
4. If the liability of one surety is discharged by the creditor , liability of other surety is ........................
a. also discharged
b . not discharged
c. can be discharged
d. None of these
Answer : B
5. Ordinary Letter of Credit are usually ............. ie. the bills drawn there under have to be immediately .
a. Sights Credit
b. Acceptance Credit
c. Either a or b
d. None of these
Answer : A
6. Letter of Credit under which usance bills can be drawn is called an ....................
a. Sights Credit
b. Acceptance Credit
c. Either a or b
d. None of these
Answer : B
7. In a Revocable LC, the credit can be amended or cancelled by the ........................
a. Confirming Bank
b. Reimbursing Bank
c. Issuing Bank
d. Nominated Bank
Answer : C
8. Only ..................Letters of credit can be confirmed.
a. Revocable
b. Irrevocable
c. Either a or b
d. None of these
Answer : B
9. Depending upon the place where the bills are made , they can be classified into ...............
a.Inland Bills
b. Foreign Bills
c. Either a or b
d. None of these
Answer : C
10. Pledge means ........................ of goods for purpose of securing a payment of debt or performance of promise.
a. Lien
b. Bailment
c. Assignment
d. None of these
Answer : B
11. RBI undertakes banking business for the state govt under the provision of .....................
a. Sec 22 of RBI Act
b. Sec 21 of RBI Act
c. Sec 20 of RBI Act
d. Agreement between RBI & Govt Under Section 21A of RBI Act .
Answer : D
12. A Co-operative Bank can be which of the following ?
a. Primary Co-op Bank
b. District Central Co-op Bank
c. State Co-op Bank
d. All the above
Answer : D
13. Section 22 of RBI Act relate which aspects of banking ?
a. RBI authority to regulate credit
b. RBI authority to regulate banking business
c. RBI authority to function as a bank for govt business
d. RBI authority to issue and manage currency of India
Answer : D
14. How many Debt Recovery Tribunals have been set up in India ?
a. 27
b. 28
c. 29
d. 50
Answer : C
15. What is the jurisdiction area of a Debt Recovery Tribunal ?
a. Each state
b. One or more states / Union Territories
c. Throughout the country
d. No such criteria
Answer : B
16. The Central Govt has powers to authorize Tribunals to hear cases where amount involved is less than Rs. 10 Lac but more than .....................................
a. Rs. 1 Lakh
b. Rs. 2 Lakh
c. Rs. 5 Lakh
d. Rs. 7 Lakh
Answer : A
17. What central govt has powers to authorize Tribunals to hear cases where amount involved is less than Rs. 10 Lac but more than .....................................
a. To transfer all the cases of bank recovery from civil court to tribunals
b. To set up an exclusive agency for Bank recovery
c. To set up special tribunal which can provide speedy court remedies
d. All the above
Answer : C
18. What are the various modes available to the Recovery officer for proceeding to recover the amount of debt ?
a. Attachment or sale of movable or immovable property
b. Arrest the defendant or detention in jail
c. Appointing a Receiver for the management of the movable or immovable
d. All the above
Answer : D
19. Clean Loans are normally ........................
a. Secured Loans
b. Unsecured Loans
c. None of the above
d. Any of the above
Answer : B
20. What is the maximum limit of compensation of the banking ombudsman may award ?
a. 1 Lac
b. 5 Lac
c. 10 Lac
d. No Such Limit
Answer : C