Electronic Banking MCQs Chapter 1

A Cheque dated subsequent to the date of its issue is_____________.

A. post dated cheque
B. blank cheque
C. crossed cheque
D. account payee cheque

ANSWER: A


A drawer can also be a ____________.

A. Payee
B. Paymaster

C. banker
D. Creditor
ANSWER: A


The rate at which RBI discounts approved bill of exchange is________.

A. bank rate
B. interest rate
C. Exchangerate
D. discount rate

ANSWER: D


___________ headed the committee on ‘Computerisation’ in Indian Banks(1988).

A. M.Narasimhan
B. M.M.Shah
C. M.Venkat Ram
D. Raj Foster .

ANSWER: A


The word ‘Bank’ has been derived from a Latin word which means______.

 

A. a bench for the keeping,lending and exchanging etc of money.
B. an instituition for meeting people.
C. a place where persons can relax.
D. an instituition for coordinating people. ANSWER: A


A Company which accepts demand deposits is called_________.

A. banking company

B. joint Stock Company
C. Manufacturing Company

D. IT Company
ANSWER: A


The first joint Stock bank was established at Calcutta by the name of______________.

A. Bank of Hindustan.

B. Reserve Bank of India.
C. Indian Bank
D. Central Bank of India.

ANSWER: A


One rupee notes bear the signature of_________.

A. President of India.
B. Prime minister of India.
C. Governor of Reserve Bank of India.
D. Secretary,Ministry of Finance. ANSWER: D


Small Coin depot is the property of__________.

A. State Bank of India.
B. Government of India.
C. Reserve Bank of India.
D. Indian Bank.

ANSWER: B


A Banking Company whose license is cancelled may appeal to the_________.

A. High Court
B. Supreme Court
C. RBI
D. Central government

ANSWER: D


Who Controls Credit in India

A. Government of India.
B. RBI
C. SBI
D. Indian bank

ANSWER: B


RBI grants for agricultural purposes ______________.

A. Only Short term Finance.
B. Medium and long term finance.
C. Short and medium term finance only.
D. Short,Medium and long term finance. ANSWER: C


The apex institution in agricultural finance is________.

A. NABARD
B. EXIM Bank
C. RBI

D. IDBI

ANSWER: A


Development banks are instituitions which___________.

A. give development loans.
B. provide emergency loans of banks.
C. are subsidaries of RBI
D. Provide term finance to industries ANSWER: B


Negotiable instruments are defined under ______.

A. Section 52 of the Banking regulation act, 1949.
B. Section 25 of the Reserve bank of India act, 1934. C. Section 13 of the Negotiable instruments act, 1881.

D. Section 14 of the companies act, 1956.
ANSWER: C


Who is primarily liable on a promissory note

A. Holder
B. Maker.

C. Drawee.

D. Endorser.
ANSWER: B


A Cheque is always payable on _______.

A. demand.
B. a specified future date.
C. the last day of the grace.
D. the will of the paying banker. ANSWER: A


An Instrument in writing containing an unconditional undertaking, signed by the maker to pay a certain sum of money only to or to the order of a certain person, or to the bearer of the instrument is _______.
A. Cheque
B. Bill of exchange

C. Promissory note

D. Instrument
ANSWER: C


promissory note _____.

A. can be drawn in sets.
B. cannot be drawn in sets.
C. indemnity bond is also necessary

D. indemnity bond is not necessary.
ANSWER: B


In a promissory note the words ‘or order’ are__________.

A. necessary to insert
B. not necessary to insert
C. not necessary but it is usual to insert.
D. necessary it is usual.

ANSWER: C


In a bill of exchange,drawee is the person________.

A. who draws the bill.
B. on whom the bill is drawn
C. to whom the payment of the bill is to be made.
D. to whom the payment of the bill is not to be made.

ANSWER: B


Bill of exchange can be drawn payable__________.

A. to bearer on demand
B. either on demand or after a fixed time.
C. to bearer in presence.
D. to bearer not in presence.

ANSWER: B


Until a bill of exchange is accepted primary liability there on is that of_____________.

A. Payee
B. Drawee

C. Drawer

D. Acceptor
ANSWER: C


A bill of exchange is drawn for a maximum period of________.

A. 90 days.
B. 120 days.
C. 180 days.
D. 360 days.

ANSWER: C


Negotiable gives to the transferee__________.

A. the same title.
B. no title.
C. no better title.
D. better title.

ANSWER: D


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