Electronic Banking MCQs Chapter 2

The banking Operations are Carried through a network of branches are called_____.

A. Branch Banking
B. Unit Banking
C. Commercial Banking
D. Universal Banking

ANSWER: A


The banking system which combines Commercial banking with investment banking is known as________.

A. Branch Banking
B. Mixed banking
C. Commercial Banking

D. Universal Banking
ANSWER: B


Which banking is now referred as Universal Banking

A. Branch Banking
B. Mixed Banking
C. Commercial Banking
D. Universal Banking

ANSWER: B


The banking which attracts deposits and lending for only short periods is known as__________.

A. Commercial banking
B. Unit banking
C. Branch Banking
D. Development Banking

ANSWER: A


Deposit banking is also called as__________.

A. Commercial Banking
B. Unit Banking
C. Branch Banking
D. Development Banking

ANSWER: A


In India every Scheduled bank has to maintain with RBIa cash balance equivalent of all the deposit liabilities is called as__________.

A. Open market ratio

B. Cash reserve ratio

C. bank reserve ratio

D. Credit reserve ratio
ANSWER: B


Imperial Bank of India is now called as___________.

A. Central bank
B. State bank of India
C. Indian Overseas bank
D. Bank of India

ANSWER: D


During 1969 how many banks were nationalized

A. 15
B. 14

C. 16

D. 17
ANSWER: A


During 1980,how many banks were nationalized

A. 7

B. 6

C. 5

D. 8
ANSWER: B


The __________ acts as an agent of the RBI.

A. SBI
B. ICICI

C. IOB

D. HDFC
ANSWER: B


Which Committee recommended the establishment of private Sector banks in India

A. Dr.Rangarajan Committee
B. Narasimham Committee
C. Rajendran Committee
D. Govindarajan Committee

ANSWER: A


RBI was set up in the year__________.

A. 1935
B. 1934

C. 1933

D. 1932
ANSWER: A


___________has been constituted as a corporate body having perpetual Succession and a Common Seal.

A. RBI
B. ICICI
C. HDFC
D. IOB
ANSWER: A


The Obligation af a banker to honour his customers Cheque is extinguished on receipt of an order of the Court is known as the_________.

A. Garnishee Order

B. Bank Order
C. RBI Order
D. Debtor Order
ANSWER: A


The deposit with the bank for a fixed period which is specified at the time of making the deposit is called________.

A. Saving deposit

B. Current deposit

C. bank Deposit

D. Fixed Deposit
ANSWER: D


The minimum period for which a commercial bank can accept term deposit is___________.

A. 7 days

B. 15 days

C. 30 days

D. 60 days
ANSWER: A


The legal status of a nominee is that__________.

A. he becomes absolute owner of the amount
B. he becomes Co-Owner with the legal heirs
C. he Cannot recover the amount
D. he is entitled to receive payment from the bank,but the claim of the legal heirs of the deceased depositor remaining unaffected.
ANSWER: D


A banker should not stop operation of the account if the Customer__________.

A. dies
B. becomes insolvent
C. changes his business Premises

D. becomes insane
ANSWER: C


Floating rate of interest is the rate which is_________.

A. decided by the bank arbitrarily
B. linked with another relevant rate
C. Fixed by the Indian Banks association
D. notified by the Reserve Bank of India ANSWER: B


A person remains minor until he completes_______years of age.

A. 15
B. 18

C. 20

D. 25
ANSWER: B


MICR refers to__________

A. Magnetic Ink Character Recognition

B. Magnetic Ink Company Recognition

C. Magnetic Ink Cross Recognition

D. Magnetc Ink Community Recognition.
ANSWER: A


If the endorser signs his name only,the endorsement is said to be__________

A. endorsement in blank
B. endorsement in full
C. conditional endorsement
D. restricted endorsement

ANSWER: B


A cheque with ‘Not negotiable ‘crossing________.

A. cannot be negotiated

B. can be negotiated and the endorsees title is not affected in any case.
C. can be negotiated but the holder of the cheque will not have title better than that of the person from whom he took it.
D. is always deemed as crossed specially. ANSWER: C


Who can cancel the crossing on a cheque

A. The Payee
B. The paying banker
C. The endorser
D. The drawer

ANSWER: D


Which is not possible for the payee of a Cheque

A. To Convert a bearer Cheque into an order cheque
B. To convert an open cheque into a crossed cheque.
C. To convert general crossing into Special Crossing
D. To make a specially crossed cheque into generally Crossed Cheque.
ANSWER: D


Who can countermand the payment of a cheque

A. The Payee
B. The drawer
C. The drawee
D. The endorsee

ANSWER: B


A negotiable instrument drawn or make in India is called__________instrument.

A. inland
B. foreign

C. time

D. clean
ANSWER: A


A negotiable instrument not drawn or make in India is called___________instrument.

A. inland
B. foreign

C. time

D. clean
ANSWER: B


A term loan is not secured by__________.

A. legal mortgage of fixed assets
B. pledge of goods.
C. hypothecation of movable assets equitable mortgagae

D. equitable mortgage.
ANSWER: B


According to section 19(b)of the banking regulation act a bank can hold shares in a company not exceeding__________.

A. 20%

B. 25%

C. 30%

D. 35%
ANSWER: C


A drawee bill is bill which is___________.

A. drawn on an unknown drawee
B. discounted at the instance of drawee
C. not eligible for discounting
D. payable on demand by the drawee ANSWER: B


A debit card holder makes payment for purchases__________.

A. After 15 days
B. After 20 days
C. After a month
D. Immediately through his account ANSWER: D


Credit information report contains__________.

A. a recommendation
B. a guarantee about repayment
C. for taking credit decisions
D. for underwriting the shares of the borrower company.

ANSWER: C


Credit information furnished by credit information company to a bank can be used by it_________.

A. for a ny purpose
B. for publication in its annual report
C. for taking credit decisions.
D. for underwriting the shares of the borrower company

ANSWER: C


Drawing of two parallel transverse lines on the face of the cheque is called________.

A. general crossing
B. special crossing
C. upper crossing
D. lower crossing

ANSWER: A


The Universal set of Standards for EDI is known as__________.

A. EDIFACT
B. EDI
C. ISO
D. BIS

ANSWER: A


Which of the following is the gateway in India EDI services Worldwide

A. Satyam online
B. BSNL
C. MTNL
D. VSNL

ANSWER: D


when shift network came to India

A. December2,1991
B. December1,1991
C. December 3,1991
D. December 4,1991

ANSWER: A


How many standard message categories in SWIFT

A. 10 types
B. 9 types
C. 8 types
D. 7 types

ANSWER: B


The banking Operations are carried through a single banking office is___.

A. Branch banking
B. Unit Banking
C. Commercial Banking
D. Universal Banking

ANSWER: B

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