Crux management service pvt ltd Final Test

Name of the Participant

1. Principal functions of banks are:

(a) Accepting deposits (b) Lending and investing
(c) Non-fund business and remittance services (d) All the above
2. IDBI is a------------
(a) Private Bank (b) Nationalised Bank (c) Public Sector Bank (d) Development Bank
3. Payment Banks can accept ----------(complete the sentence)
(a) Of any type and also without ceiling (b) Term deposits only
(c) Demand deposit only nut there is no upper limit for it
(d) Demand deposit having balance not exceeding Rs.1 lakh per customer
4. Which of the following statements is true in reference to Small Finance Banks?
(a) Minimum 75% of total loans to Priority sector.
(b) Maximum Loan amount per borrower can be sanctioned up to Rs.50 Lakhs.
(c) To small business, organized sector and low income households.
(d) To all segments except Export.
5. Regional Rural Banks can open its branches:
(a) Anywhere in the state where it has its Head Quarters.
(b) Anywhere in the state but non-customer related offices can be opened anywhere in the country
(c) Anywhere in the country
(d) Only in the Govt. notified area(Districts)
6. The term Customer has been defined in:
(a) Negotiable Instruments Act (b) RBI Act
(c) Banking Regulation Act (d) PMLA 2005
7. When a banker allows overdraft to his customer, the relationship between his customer and him
is that and him is that of
(a) Bailor and Bailee (b) Lessor and Lessee (c) Debtor and Creditor (d) Creditor and Debtor
8. When a customer tales a locker in the bank what is relationship between the bank and the Customer
(a) Lessor and Lessee (b) Principal and Agent
(c) Trustee- Beneficiary. (d) None of the above.
9. When does Banker –Customer relationship terminated?
(a) On the death of the customer (b) On Customer becoming lunatic
(c) On customer being declared insolvent (d) On closure of the account.
10. In deposit accounts , the main relationship bank and customer is:
(a) Creditor-bank ,Debtor-customer (b) Debtor-bank, Creditor-customer
(c) Agent-Principal (d) Only a and b
11. Bailor-Bailee relationship is applicable in:
(a) Cash deposit with cashier by customer (b) Safe deposit locker
(c) Demand draft issued by bank (d) Keeping articles in safe custody with bank
 12. What relationship is created when the bank collects a cheque in clearing?
(a) Clearing Member and Principal (b) Agent and Principal
(c) Collecting Bank and Holder (d) None of the above
13. Attachment Order in respect of bank account is issued by:
(a) RBI (b) Ombudsman (c) IBA (d) Tax Authorities
14. Saving accounts contain some restrictions regarding……………………..
(a) Number of withdrawals per quarter
(b) Amount of withdrawals per transaction in ATM
(c) Number of deposits into the account per quarter
(d) Both (a) and (b) above
15. Overdraft is allowed generally by banks in…………………….
(a) Savings accounts (b) Term deposit accounts
(c) Current accounts (d) Recurring deposit accounts
16. A bank’s Fixed Deposit is characterized by…………………….
(a) Interest rate as agrees with the customer at the time of the deposit
(b) Fixed period of the deposit (c) Periodical Payment of interest (d) All the above
17. Fixed deposits cannot be…………………………
(a) Renewed for a further period on maturity date (b) Transferred to third parties
(c) Pre-paid before the maturity date (d) cannot be pledged to the bank as security
18. A Recurring Deposit account requires the customer to ………………..:
(a) Deposit any amount at specified intervals for a specified period
(b) Deposit a fixed amount at will for a specified period
(c) Deposit a fixed amount at specified intervals for a specified period
(d) Deposit a fixed amount at specified intervals for a specified period
19. Interest on savings bank can be paid:
(a) on any interval as per bank’s own approved policy (b) on half yearly intervals only
(c) on yearly intervals only (d) on quarterly intervals only
20. Demand Deposits are those which can be withdrawn:
(a) On Request (b) On Sanction by Manger (c) On Demand (d) On Persuasion
21. Current account deposits are not entitled to __________________.
(a) Cheque book above 100 leaves (b) Monthly Statements (c) Cash Payments (d) Interest

22. In saving account deposits, interest is paid on________________ balance in the account
(a) Maximum (b) Average (c) Daily (d) Last Balance at the end of month
23. Money Laundering refers to
(a) Conversion of assets into cash (b) Conversion of Money which is illegally obtained
(c) Conversion of cash into gold (d) Conversion of assets into cash
24. One of the important steps in Money Laundering is
(a) Placement & Layering (b) Organisation & Controlling (c) Depositing & Withdrawing
(d) Backward & Forward integration
 25. Which one of the following is a Officially valid document available to the bank for customer identification
(a) Election ID card (b) Ration card (c) Photograph (d) Bank statement of account

26. Objectives of KYC

(a) to ensure appropriate customer identification (b) to monitor transactions of suspicious nature
(c) if loan given ,it would not be a NPA (d) to create a data base of customers
27. If a bank pays a cheque wherein signatures of the customer are forget , the bank will:
(a) Not bee held liable
(b) Not be held liable if the forgery in signatures is not visible in general course
(c) Be held liable
(d) Contact the drawer of the signature and ask him to change the signatures on record so that in
future such incidence should not take place
28. In the case of safe deposit locker taken on lease by two persons jointly:
(a) Only one nomination will be accepted (b) They can nominate two persons separately
(c) Nomination is not permitted (d) Nominee cannot be a minor
29. Protection to collecting banker is available as per N.I. Act, if
(a) The cheque is crossed before it is presented for collection
(b) The cheque is uncrossed
(c) No endorsements are on the back of the cheque
(d) The cheque bears endorsements
30. The validity of a cheque/draft is:
(a) Six months (b) Three months (c) Nine months (d) Twelve months
31. An "account payee" crossed cheque can be:
(a) Paid in cash over counter (b) Credited in the account of the endorsee
(c ) C r e d i t e d i n t h e a c c o u n t o f t h e p a y e e o n l y
(d) Ignored because it has no legal cognizance

32. The "special crossing" of a cheque means:

(a) When it bears the name of a bank between two transverse lines
(b) That the cheques is to be credited in the account of payee only
(c) That it has certain conditions which are to be fulfilled before presenting it for
payment/collection
(d) That it can be paid in cash over counter .
33. The difference between the credit and the debit card is:
(a) Your account gets debited immediately on using a credit card
(b) Your account gets debited immediately on using a debit card
(c) Your account does not get debited immediately on using a debit card
(d) None of the above
34. Credit risk to the hank is h igh from the:
(a) credit card holders (b) debit card holders (c) both of the above (d) none of the above
35. The bank which pays the merchant for the transactions is called as:
( a ) issuer bank (b) clearance bank (c) acquiring bank (d)n o n e o f t h e a b o v e
36. Disadvantages to Credit Card holders
(a) Over Spending ending in Debt Trap (b) Frauds due to loss or theft of cards
(c ) Forget signatures (d) All of above
37. One of the following statements is not true with respect to credit
(a) The card issuing banks would not be responsible for fulfillment of KYC requirements, where
agents solicit business
(b) While issuing cards, the terms and conditions for issue and of a credit card should be
mentioned in clear and simple languages
(c) Card issuers should quote annualized percentage rates (API card products.
(d) The card issuing ban/NBFC should not unilaterally upgrade it cards and enhance credit
limits. Prior consent of the bon should invariably be taken whenever there are any
change terms and conditions.
38. "RuPay Card" is:
(a) debit card (b) a credit card (c) a smart card (d) a G o v t . g u a r a n te e d ca r d

39. A Housing loan is granted against the security of

(a) Pledge of the house financed (b) Hypothecation of the house financed
(c) Mortgage of the house financed (d) Lien of the h ouse finance d
40. The term 'EMI' in a housing or vehicle loan is calculated on the basis of :
(a) Principal of the loan (b) Principal and Interest on the loan
(b) Interest on the loan (d) Principal and Processing charges on the loan
41. Housing loans are granted for:
(a) Short term (b) Medium term (c) Long term (d) Either (b) or (c).
42. A vehicle loan is granted against the security of:
(a) Pledge of the vehicle financed (b) Hypothecation of the vehicle financed
(c) Mortgage of the vehicle financed (d) Hypothecation of all assets of the borrower
43 A loan for a refrigerator is granted against the security of
(a) Pledge of the item financed (b) Hypothecation of the item financed
(c) Mortgage of the item financed (d) Mortgage of all assets of the borrower
44. The nature of charge created while advancing against LIC policy is
(a) Assignment (b) Lien (c) Pledge (d) Set off
45. Loan against minor's term deposit
(a) can be granted if the documents are signed if the minor has completed the age of 14 years
(b) cannot be granted under any circumstances as the minor does not have the contractual
capacity
(c) can be granted to the guardian of the minor, if it is for the necessities of the minor
(d) Can be granted only with the permission of the Court.
46. State True or False:
(a) In the case of assignment of LIC Policy as a security to an advance, the assignment is not complete
unless a notice of assignment is given to the insurance company.
(b) To above notice of assignment may be given either by the assignor or by the assignee.
(c) There is less risk for the bank when hypothecation charge created by a company is registered with
the ROC.
(d) One of the essential requirements of a pledge is the actual or constructive delivery of the goods
pledged by the pledged to the pledgee.
(e) Limitation period for filing suit for sale of an immovable property is thirty years from the date
mortgage debt becomes due.
47. As per the Stamp Act, a document executed in India shall be statement
(a) only before execution (b) at any time, but before filing suit
(c) within 30 days after execution (d) before or at the time of execution

48. One of the following statements is not true

(a) The Court cannot condone delay in filing suit, if the document is time-barred.
(b) If a demand promissory note is not stamped before or at the time of execution in
India, the defect can be set right by paying penalty .
(c) When the borrower acknowledges the debt before the expiry of limitation period, the
period of limitation is extended by one more period.
(d) If the borrower makes part payment into the loan account before the expiry of
limitation period, the period of limitation is extended by one more period.
49. Loans and advances of banks appear in their balance sheets on the s
a) Liabilities (b) Assets (c) Income (d) Expenses

50. A loan or advance of a bank is defined as 'Non Performing Asset' (NPA)

when it remains, overdue or out of order for a period of:
(a) 90 days (b) Less than 90 days (c) More than 90 days (d) More than 180 days

51. A loan or advance of a bank is defined as 'Doubtful' when it has remained

in Sub-standard category for a period of at least:
(a) 6 months (b) 12 months (c) 3 months (d) 18 months
52. A `Standard Asset' of a bank is defined as an asset which is:

(a) Not a Non-Performing Asset (NPA.) (b) A Doubtful Asset

(c) A Loss Asset (d) None of the above
53. SARFAESI Act is not applicable for loans outstanding upto Rs.
(a) 10 lakh (b) 5 lakh (c) 2 lakh (d) 1 lakh

54. Loans upto Rs. _______________ can he settled through Lok Adalats
(a) 2 lakh (b) 5 lakh (c) 10 lakh (d) 2 0 l a k h
55. DRTs can entertain cases for recovery for Rs.--------
(a) 10 lakhs and above (b) 20 lakhs only (c) 50 lakh only ( d ) 1 0 0 l a k h o n l y

56. Retail loans include:

(a)Home loans, Auto loans, Corporate loans (b) Home loans, Auto loans, Bridge loans
(c) Auto loans, Corporate loans, Credit card dues (d) Home loans, Auto loans, Personal loans

57. Retail loans are generally of

(a) Large amounts (b) Medium amounts (c) Small amounts (d) Medium and Small amounts.

58. Retail loans are generally granted to:

(a) Professionals, individuals, companies (b) Individuals, institutions, companies,
(c) Professionals, salaried employees, corporations
(d) Professionals, salaried employees, individuals.
59. Which one constitutes the largest percentage of Retail loans in India:
(a)Auto loans (b) Home loans (c) Personal loans (d) Personal overdrafts

60. The term 'debtor' means:

(a)A person who owes some debt (b) A person to whom some debt is owed
(c) Lender (d)None of the above

61. A recovery agent is entitled to collect the specified dues from the debtors on behalf the principal in terms of
the
(a) Loan agreement between the debtor and the creditor
(b) Authorization letter by the creditor to the agent
(c) Both (a) and (b) above (d ) None of the ab ove

62. The function(s) of recovery agents under an Agency agreement include:

(a) Only collection of the specified dues from the customers
(b) Only documenting and reporting collections/developments to the principal
(c) Only remitting the collection of dues to the principal
(d) All the above

63. In a home loan recovery case, the particulars of the property mortgaged (i.e. the security) for the
loan can be found from :
(a) The loan agreement between the debtor and the lender and its schedule
(b) The loan application form submitted by the debtor to the lender
(c) Both the above (d) None of the above

64. The recovery agents of a bank should follow:

(a) Only the debt recovery policy and procedure of the bank (principal)
(b) Only the directives of RBI on recovery agents engaged by banks
(c) Only the Model Policy on collection of dues etc. framed by IBA
(d) All the above
65. The laws and regulations which govern debt recovery of a bank's dues
apply:
(a) to the bank's employees engaged in recovery process
(b) to the recovery agents engaged by the bank
(c) to the bank's employees and its recovery agents
(d) To Borrowers
66. Making a telephone call to the debtor by the recovery agent is:
(a) The first step in recovery process (b) The last step in recovery process
(c)Optional in recovery process (d) Not at all necessary in recovery process

67. Before making a telephone call to a customer, a recovery agent should ensure that:
(a) He/she has been authorized by the bank to collect the due debt from the customer
(b) The customer has been -notified by the bank of the details (name, telephone number etc.)
of the recovery agent for collection of the due debt
(c) Both the above requirements are followed
(d) None of the above is necessary
68. While making a first telephone call to a customer for recovery of dues, a recovery agent should:
(a) Only disclose his/her identity
(b)Disclose his/her identity and also authority to collect the dues
(c)Discuss with the customer about payment of the dues (d) Do both (b) and (c) above
69. As per IBA's model policy on collection of dues, customer calls for recovery of dues should he normally
made between:
(a) 0800 and 1700 hours (b) 0 7 0 0 a n d 1 9 0 0 h o u r s
(c) 0800 and 1900 hours (d) 0700 and 1800 hours
70. As per IBA's model policy on collection of dues, borrower's request to avoid calls at a
particular time or place would be:
(a) Rejected outright (b) Rejected politely
(c) Ignored and not responded (d ) H onou r ed a s fa r a s po ssib l e .

71. Persuasive skill means -----------

(a) A person should he a good listener (b) Inter-personal relationship
(c) Negotiating (d) establishing a good "rapport" and winning the trust of other person

72. Debt recovery agent ---------

(a) Can exceed the delegated authority (b) should not exceed the delegated authority
(c) Can partially exceed the delegated authority
(d) Are not given any authority for compromise
73. DMP means
(a) Debt Management Plan (b) Delegated Monetary powers
(c) Derived Monetary Powers (d) Diligent Management of Property

74. The generic provisions for rights and duties of agents are contained in :
(a) The constitution of India (b) The Contract act (c) The Companies (d) none of the above
75. The generic right and duties of agents contained in relevant act:
(a) Cannot be modified by the specific agreement between the agent and the bank
(b) Can be only modified by the agreement between the argents and the bank
(c) Can be modified altered and deleted by the specific agreement between the agents and the bank
(d) None of the above is correct

76 The generic duties of agents contained in the relevant act include:

(a) Duty to follow lawful instructions of the principal
(b) Duty to follow lawful and instructions of the principal
(c) Duty to follow customs of the trade/industry, where instructions of the principal are silent.
(d) Both (a) and (c)above

77. Recovery agents have a duty to exercise reasonable care and skills in recovery functions, in terms of:
(a) The Contract act (b) The IBA’ model policy on collection of dues
(c) The RBI’s guidelines on recovery agents engaged by banks (d) All the above

78. Misrepresentation of Facts is:

(a) Permissible in India, UK, USA (b) Prohibited in India, UK, USA,
(c ) Prohibited in UK, USA, but permissible in India (d) Prohibited in UK, but permissible in India, USA.

79. Hours of phone contacts with customers for debt recovery are prescribed:
(a) In USA, but not in India (b) In India, but not in USA
(c)In India and also in USA (d) In UK, but not in India

80. Recovery agents threat for legal action or arrest of the customer is :
(a) Permissible in India and also USA (b) Prohibited in India and also USA
(c) Prohibited in USA, but permissible in India (d) Permissible in India, USA AND UK

81. Use of abusive language in recovery process by recovery agents is :

(a) Permissible in India and also USA (b) Prohibited in India also USA
(c) Prohibited in USA, but permissible in India (d) Permissible in India, USA AND UK

82. Disclosing the details of the customer’s debt with third parties is:
(a) Permissible in India and also USA (b) Prohibited in India and also USA
(c) Prohibited in USA, but permissible in India (d) Permissible in India, USA and UK

83. In case of a willful defaulter the recovery agent should:

(a) Collect the documentary evidence to prove the debtors negative responses to his collection efforts
(b) Preserve the documentary evidence
(c) Collect and send the documentary evidence to the principal
(d) Collect, preserve and send copies of the documentary evidence to the principal for further action