LEGAL AND REGULATORY ASPECTS OF BANKING SOLVED PAPER
1. " Bills payable after sight " is ..........................
a. Demand Bill
b. Clean Bill
c. Usance Bill
d. None of the above
Answer : C
2. Which of the following factors are considered while fixing BPLR by the bank ?
i). Cost of funds
ii). Operating expenses
iii). Provision for NPAs.
a) Only (i) and (ii)
b) Only (i) and (iii)
c) Only (ii) and (iii)
d) (i),(ii) and (iii)
Answer : D
3. In a Bill, a person entitled to receive payment is called ..................
a. Drawer
b. Drawee
c. Payee
d. None of above
Answer : C
4. The Limitation period for filing a suit for sale of mortgaged property from the date mortgage debt becomes due is ............................
a. 12 Years
b. 20 Years
c. 30 Years
d. None of the above
Answer : A
5. Mandate is.......................
a. Signed Letter to the bank
b. Order of the court of law
c. Memorandum of Understanding
d. Unstamped letter to the bank
Answer : D
6. Power of attorney is ..........................
a. Signed Letter to the bank
b. A promissory note
c. Garnishee Order
d. Stamped Documents
Answer : D
7. Person to whom a power of attorney is given is called ................ and the person who gives the power of attorney is called ................
a. Debtor , Creditor
b. Bailor , Bailee
c. Agent , Principal ( donor,donee)
d. None of these
Answer : C
8. Promissory Notes ,Bills of Exchange , cheques are together defined as ................................
a. Negotiable Instruments
b. Transferred Instruments
c. Trust Receipts
d. Documents of Title to goods
Answer : A
9. Negotiable Instrument are easily ......................
a. transferable
b. gifted
c. sold
d. None of these
Answer : A
10. A cheque is drawn on a ....................
a. owner of ship
b. an agent of a principal
c. bank
d. None of these
Answer : C
11. A cheque is payable on a..............
a. demand
b. after certain days
c. on a fixed future date
d. None of these
Answer : A
12. In a civil suit to which bank is not a party has produced certified copy of account. One party to the suit wants to call bank officer as witness to prove the contents of a copy . Can it be done ?
a. Yes , as it is right of the party to get it reaffirmed in evidence
b. No, as the certified copy is a prima facie evidence that is admissible in evidence
c. No, unless the bank volunteers to do so .
d. Yes , if court allows the application to call the witness.
Answer : B
13. For the purpose of exposure norms, which of the following is true for inclusion under exposure?
i) 100% of both fund based and non fund based credit limits
ii)Sanctioned Limit or Outstanding whichever is higher shall be considered
iii) In case of fully drawn term loans outstanding and not the limit sanctioned will be considered .
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Answer : D
14. What are the exceptions of Evidence Act?
a. a certified copy of the original document can be produced in the court of law if it is permitted by any law .
b. The Bankers Books Evidence Act is also an exception to the evidence act.
c. Both (a) and (b)
d. None of the above
Answer : C
15. Which of the following is included in the Banker's Book?
a. Ledger and Day Books
b. Cash Books and Account Books
c. All other books used in the ordinary business of a bank
d. All the above
Answer : D
16. What is certified copy ?
a. A copy of any entry in the books along with the certificate that copy is a true copy.
b. That such entry is contained in one of the books of the bank .
c. And Such books are still under the custody of the bank .
d. A copy which includes all the above information
Answer : D
17. Which of the following statements is not correct regarding Bankers Books Evidence Act ?
a. The Certificate issued by the Bank should have signatures of the authorized person and it should be dated .
b . It should be supported by original document
c. The certified copy will be the original document
d. The Bank will ensure the accuracy of the copy
Answer : B
18. Which of the following statements is correct regarding Bankers Books Evidence Act ?
a. No officer of a Bank can be compelled to produce any Bankers Books unless it is specially ordered by the court
b. The above provision (a)applies only when the bank is not a party to the case
c. The investigating Police officer can compel a bank officer to produce the book without court order.
d. All the above
Answer : D
19.Legal Proceeding under Bankers Books Evidence Act, signifies ..............
a. any proceeding or inquiry in which the evidence is given
b. an arbitration
c. any investigation under the Code of Criminal Procedure , 1973
d. All the above
Answer : D
20. What are the powers of the court in case of legal proceedings under Bankers Books Evidence Act?
a. permit the affected party to inspect the Books and take copies
b. Order the bank to prepare the produce within specified time the certified copies
c. Order the bank to prepare certificates as desired under the law.
d. All the above
Answer : D
a. Demand Bill
b. Clean Bill
c. Usance Bill
d. None of the above
Answer : C
2. Which of the following factors are considered while fixing BPLR by the bank ?
i). Cost of funds
ii). Operating expenses
iii). Provision for NPAs.
a) Only (i) and (ii)
b) Only (i) and (iii)
c) Only (ii) and (iii)
d) (i),(ii) and (iii)
Answer : D
3. In a Bill, a person entitled to receive payment is called ..................
a. Drawer
b. Drawee
c. Payee
d. None of above
Answer : C
4. The Limitation period for filing a suit for sale of mortgaged property from the date mortgage debt becomes due is ............................
a. 12 Years
b. 20 Years
c. 30 Years
d. None of the above
Answer : A
5. Mandate is.......................
a. Signed Letter to the bank
b. Order of the court of law
c. Memorandum of Understanding
d. Unstamped letter to the bank
Answer : D
6. Power of attorney is ..........................
a. Signed Letter to the bank
b. A promissory note
c. Garnishee Order
d. Stamped Documents
Answer : D
7. Person to whom a power of attorney is given is called ................ and the person who gives the power of attorney is called ................
a. Debtor , Creditor
b. Bailor , Bailee
c. Agent , Principal ( donor,donee)
d. None of these
Answer : C
8. Promissory Notes ,Bills of Exchange , cheques are together defined as ................................
a. Negotiable Instruments
b. Transferred Instruments
c. Trust Receipts
d. Documents of Title to goods
Answer : A
9. Negotiable Instrument are easily ......................
a. transferable
b. gifted
c. sold
d. None of these
Answer : A
10. A cheque is drawn on a ....................
a. owner of ship
b. an agent of a principal
c. bank
d. None of these
Answer : C
11. A cheque is payable on a..............
a. demand
b. after certain days
c. on a fixed future date
d. None of these
Answer : A
12. In a civil suit to which bank is not a party has produced certified copy of account. One party to the suit wants to call bank officer as witness to prove the contents of a copy . Can it be done ?
a. Yes , as it is right of the party to get it reaffirmed in evidence
b. No, as the certified copy is a prima facie evidence that is admissible in evidence
c. No, unless the bank volunteers to do so .
d. Yes , if court allows the application to call the witness.
Answer : B
13. For the purpose of exposure norms, which of the following is true for inclusion under exposure?
i) 100% of both fund based and non fund based credit limits
ii)Sanctioned Limit or Outstanding whichever is higher shall be considered
iii) In case of fully drawn term loans outstanding and not the limit sanctioned will be considered .
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Answer : D
14. What are the exceptions of Evidence Act?
a. a certified copy of the original document can be produced in the court of law if it is permitted by any law .
b. The Bankers Books Evidence Act is also an exception to the evidence act.
c. Both (a) and (b)
d. None of the above
Answer : C
15. Which of the following is included in the Banker's Book?
a. Ledger and Day Books
b. Cash Books and Account Books
c. All other books used in the ordinary business of a bank
d. All the above
Answer : D
16. What is certified copy ?
a. A copy of any entry in the books along with the certificate that copy is a true copy.
b. That such entry is contained in one of the books of the bank .
c. And Such books are still under the custody of the bank .
d. A copy which includes all the above information
Answer : D
17. Which of the following statements is not correct regarding Bankers Books Evidence Act ?
a. The Certificate issued by the Bank should have signatures of the authorized person and it should be dated .
b . It should be supported by original document
c. The certified copy will be the original document
d. The Bank will ensure the accuracy of the copy
Answer : B
18. Which of the following statements is correct regarding Bankers Books Evidence Act ?
a. No officer of a Bank can be compelled to produce any Bankers Books unless it is specially ordered by the court
b. The above provision (a)applies only when the bank is not a party to the case
c. The investigating Police officer can compel a bank officer to produce the book without court order.
d. All the above
Answer : D
19.Legal Proceeding under Bankers Books Evidence Act, signifies ..............
a. any proceeding or inquiry in which the evidence is given
b. an arbitration
c. any investigation under the Code of Criminal Procedure , 1973
d. All the above
Answer : D
20. What are the powers of the court in case of legal proceedings under Bankers Books Evidence Act?
a. permit the affected party to inspect the Books and take copies
b. Order the bank to prepare the produce within specified time the certified copies
c. Order the bank to prepare certificates as desired under the law.
d. All the above
Answer : D