Mannar Thirumalai naicker college,Madurai
NME - PRACTICAL BNKING (23UCONM21)
S.NO QUESTION OPTION A OPTION B OPTION C OPTION D ANSWER
1 KYC means Know your customer Know your character Know your competitor None of the above A
2 The relationship between a banker and customer is.... That of a debtor and creditor That of a creditor and debtor Primarily that of a debtor and a creditor (a) and (b) together C
3 The banker has a lien on........ Bonds given for collection Bonds given for safe custody Bonds left by mistake All of the above A
4 In executing the standing instructions, there exists a relationship of........ debtor and creditor Trustee and Beneficiary Bailee and Bailor Agent and Principal D
5 To constitute a person as a customer....... There must be frequency of transactions There must be a dealing of a banking nature There must be some sort of an account There must be a single transactions of any nature C
6 The banker has a statutory obligation to......... Honour customers' cheque Exercise lien Maintain secrecy of his customers' accounts Honour customers' bill A
7 Contracts by lunatics in India are..... Always void Always valid Always voidable At times voidable C
8 The best procedure for opening an account in the name of a minor X and the guardian Y would be under the style........ X' Account b'-Account- Minor y' in trust for X y' account C
9 The balance of a joint A/c in the name of X,Y,Z Should be paid on the death of X........ To the legal representative of x To Y and Z To Y or Z TO the legal representative of X,Y and Z D
10 The most undesirable customer is...... A minor A married Woman An unregistered firm An undischarged bankrupt D
11 A customer's letter of instructions without any stamp, in Connection with the operations of his account is known as...... Power of attorney Authority letter Probate Mandate D
12 The following one is a negotiable instrument, negotiable by usage or custom.......... Bill of Exchange Accommodation Bill Promissory Note Share warrant D
13 The document drawn by a debtor on the creditor agreeing to pay a certain sum is called......... Cheque Promissory Note Bill of Exchange Draft B
14 Which bank have given the instructions to the commercial banks regarding the immediate credit of outstation cheques? Reserve Bank of India Central Bank World Bank All of the above A
15 Which of the following can be opened by non-resident Indians (NRIs)? Savings account Current account NRE or NRO account Fixed deposit account C
16 The primary relationship beteen a banker and customer starts from the time When cutomer visits the bank when customer opens account when customer visits bank to made queries All of the above B
17 What is the role of a banker when he collects cheques or pays premiums on behalf of his customers? Debtor Creditor Investor Agent D
18 What is the supreme responsibility of banks concerning their customers? Making a prot at all costs Ignoring customer request for assistance Disclosing customer information publicly Protecting customer deposit and secrecy D
19 What kind of relaonship exists between a banker and a customer? Fiduciary One Adversarial Competitive Collaborative A
20 Under what circumstances does a banker become a trustee? When money is deposited for a specic purpose When opening a bank account When customer checks their account balance When applying for a loan A
21 Which of the following is NOT an obligation of a banker towards the customer? Maintaining the confidentiality of the customer's acco Honoring checks within the available balance Providing financial advice Ensuring profit from the customer's investments D
22 When a bank provides overdraft facilities to its customer, the relationship is: Creditor and Debtor Debtor and Creditor Bailor and Bailee Principal and Agent B
23 What is the term used for the legal obligation of a bank to maintain customer privacy? Banking Compliance Banking Secrecy Confidential Banking Law Banker’s Duty of Secrecy D
24 In which case is a bank legally allowed to disclose a customer's information? On receiving a valid court order If the bank decides it is necessary To a competitor bank On a verbal request from a third party A
25 When a customer deposits a cheque for collection, the banker acts as: Debtor Principal Agent Creditor C
26 What does the term "nominee" refer to in a banking relationship? The person authorized to operate the account The person responsible for managing bank records The person entitled to receive the account balance in The person who provides a loan guarantee C
27 When a bank grants a loan to a customer, the relationship between them is: Debtor and Creditor Creditor and Debtor Bailor and Bailee Trustee and Beneficiary B
28 What does KYC (Know Your Customer) ensure in the banking industry? Improved customer relationships Security for bank lockers Prevention of money laundering and fraudulent activitHigher interest rates for customers C
29 What is the primary function of a banker in accepting deposits? Investment adviser Custodian of funds Loan guarantor Financial planner B
30 Which of the following is an essential feature of a banker-customer relationship? It is permanent It is based on trust and confidence It only benefits the banker It ends with the closure of the account B
31 A minor can open a bank account under which condition? By providing a loan guarantee With the permission of their school Under the guardianship of a parent or legal guardian Only for savings accounts with no deposits allowed C
32 What is the main purpose of a "Dormant Account" classification in banks? To deactivate inactive accounts To restrict operations for security reasons To impose penalties on the account holder To prepare the account for closure B
33 What is the purpose of a "Garnishee Order" issued to a bank? To freeze the account of a customer To allow overdraft facilities To activate dormant accounts To prevent the closure of an account A
34 When a customer gives a standing instruction for recurring payments, the banker acts as a: Creditor Agent Debtor Guarantor B
35 Which act governs the rights and duties of bankers and customers in India? Indian Contract Act, 1872 Banking Regulation Act, 1949 Negotiable Instruments Act, 1881 Companies Act, 2013 B
36 Which document is mandatory for opening a bank account? Electricity bill Identity proof Employer’s recommendation Credit card B
37 What is the first step in opening a bank account? Submitting an application form Selecting the type of account Receiving a passbook Depositing money B
38 Which of the following is NOT typically required to open a bank account? Proof of address Passport-sized photograph Birth certificate Proof of income C
39 What is the minimum age for opening a minor account in most banks? 5 years 10 years 15 years 18 years B
40 Why is a nominee usually appointed when opening a bank account? To share the account To operate the account To claim the funds in case of account holder’s demise To monitor the account holder C
41 Which type of account is most suitable for businesses requiring frequent transactions? Savings account Fixed deposit account Current account Recurring deposit account C
42 What is a passbook? A document to record ATM transactions A record of account holder’s transactions A guidebook for banking services A booklet to withdraw money A
43 What is the purpose of obtaining a specimen signature during account opening? To verify the handwriting style For security and transaction validation To use as proof of identity To authorize the bank account B
44 Which of these accounts does NOT typically earn interest? Savings account Current account Fixed deposit account Recurring deposit account B
B
45 How is a zero-balance account different from a savings account? No ATM card is provided No minimum balance requirement Higher interest rate is offered It is for businesses only
46 Which government-issued ID is often used for KYC in India? PAN card Aadhaar card Voter ID card All of these D
47 What type of bank account is opened for a child below 18 years? Joint account Savings account Minor account Current account C
48 What is the main purpose of a Fixed Deposit (FD) account? To save money for daily transactions To grow money over a fixed period To withdraw money anytime To secure loans from the bank B
49 Which of the following is a feature of an online account opening process? No paperwork required 24/7 accessibility Faster approval All of these D
50 What happens when an account holder fails to provide the initial deposit? The account is rejected The bank deducts a penalty The account opening process remains incomplete The account is automatically opened C
51 What is the primary benefit of a savings account? Unlimited transactions Higher interest rates compared to FDs Encourages saving and earns interest No minimum balance requirement C
52 Which account type allows the account holder to deposit a fixed sum of money at regular intervals? Fixed Deposit Account Recurring Deposit Account Current Account Demat Account B
53 A joint account can be operated by: Only one individual Two or more individuals Only a business entity None of the above B
54 A fixed deposit account typically: Allows unlimited withdrawals Provides higher interest rates than savings accounts Is used for stock trading Requires monthly deposits B
55 What is a fixed deposit? A deposit that can be withdrawn anytime without penaA deposit with a fixed tenure and interest rate A deposit in a savings account A recurring deposit made monthly B
56 Which type of bank deposit account usually offers the highest interest rate? Savings Account Fixed Deposit Current Account Recurring Deposit B
57 What is the minimum balance requirement for most current accounts? Zero balance It varies depending on the bank A fixed minimum of Rs.500 No minimum balance requirement B
58 Which of the following is a characteristic of a recurring deposit? Fixed monthly deposits for a predetermined period Interest rates vary daily Funds can be withdrawn anytime without penalty It is a type of current account A
59 Which deposit type is also referred to as a "time deposit"? Savings Account Current Account Fixed Deposit Demand Deposit C
, 60 In which type of deposit account can the customer withdraw money on demand? Fixed Deposit Recurring Deposit Demand Deposit Term Deposit C
61 Which type of deposit account is most suitable for businesses with frequent transactions? Fixed Deposit Savings Account Current Account Recurring Deposit C
62 What does the term "maturity" refer to in fixed deposits? The amount deposited initially The end of the deposit term The interest rate applied The penalty for early withdrawal B
63 Which type of deposit account does not typically earn interest? Savings Account Current Account Fixed Deposit Recurring Deposit B
64 What is the full form of CASA in banking? Current Account and Savings Account Cash and Savings Account Credit and Savings Account Current and Secure Account A
65 What is the main difference between a fixed deposit (FD) and a recurring deposit (RD)? FD requires a one-time deposit; RD involves periodic FD has lower interest rates than RD RD allows withdrawals anytime without penalty FD is only available to corporate customers A
66 What is a "zero-balance account"? An account with no deposits allowed An account that does not require a minimum balance An account with no interest payments An account used for recurring deposits B
67 Which regulatory body in India ensures the safety of bank deposits up to a certain limit? RBI SEBI IRDAI DICGC D
68 What is a bulk deposit in banking? A recurring deposit made in bulk A deposit of a large sum of money, usually above a th Multiple fixed deposits combined A demand deposit used for bulk payments B
69 What is the primary feature of a senior citizen fixed deposit? Higher withdrawal limits Higher interest rates for senior citizens Flexible deposit amounts Unlimited tenure options B
70 What is the main purpose of a Nomination Facility in bank deposits? To enable joint account holders To appoint someone to receive the deposit amount in cTo create fixed deposits automatically To transfer funds between accounts B
71 What is the maximum deposit amount insured by the DICGC in India? ₹1 lakh ₹2 lakh ₹5 lakh ₹10 lakh C
72 What is the tenure range typically available for fixed deposits in most banks? 1 month to 1 year 7 days to 10 years 1 year to 20 years No fixed tenure range B
73 Which type of bank deposit does NOT require prior notice for withdrawal? Term Deposit Savings Deposit Fixed Deposit Recurring Deposit B
74 What happens to a fixed deposit after its maturity if no instructions are given by the depositor? It is automatically withdrawn. It is automatically renewed for the same tenure at the Ipt is transferred to the savings account. It is converted into a current account. B
75 What is a Tax Saver Fixed Deposit? A deposit with a tenure of 1 year offering tax-free inte A deposit with a lock-in period of 5 years providing ta A fixed deposit with the lowest interest rate A recurring deposit with tax exemptions B
76 What is the overdraft facility in bank deposits? A loan offered based on fixed deposits The ability to withdraw more than the available balancA penalty for exceeding withdrawal limits A feature exclusive to savings accounts B
77 Which of the following is typically NOT allowed with a fixed deposit? Premature withdrawal with penalties Earning interest over a fixed period Regular deposits at fixed intervals Automatic renewal on maturity C
78 Which document is usually issued to the depositor as proof of their fixed deposit? Account Passbook Fixed Deposit Receipt (FDR) Cheque Book Savings Certificate B
79 Which type of bank deposit is linked to government savings schemes like PPF and NSC? Demand Deposit Term Deposit Savings Account Tax-saving Fixed Deposit D
80 Which type of deposit account is typically used for payroll and regular income management? Savings Account Fixed Deposit Current Account Bulk Deposit A
81 Which type of deposit is most suitable for earning regular interest income? Recurring Deposit Fixed Deposit with monthly interest payout Current Account Demand Deposit B
82 What is a benefit of a recurring deposit compared to a fixed deposit? Higher interest rates Smaller, periodic investments instead of a lump sum No lock-in period Can be withdrawn anytime without penalty B
83 What does the term "auto-renewal" mean in the context of fixed deposits? The deposit amount is automatically withdrawn after The deposit is automatically renewed for the same tenu
The deposit is transferred to a savings account on matThe deposit is renewed at the same interest rate indefi B
84 What is not the liability of a bank? Savings Account Recurring Deposit Current Account Home Loan D
85 What does "premature withdrawal" mean in bank deposits? Withdrawing funds before the bank processes them Closing a deposit account before the end of its tenure Opening a deposit account before the stipulated date Applying for a deposit without meeting eligibility B
86 What does the interest rate on a savings account typically depend on? Tenure of the deposit The frequency of withdrawals The amount deposited at the time of opening RBI's monetary policy and individual bank policies D
87 What is the typical penalty for premature withdrawal of a fixed deposit? Entire interest amount is forfeited A lower interest rate is applied along with a penalty feOnly the principal amount is returned There is no penalty for premature withdrawals B
88 Which type of deposit account is generally used for government welfare schemes? Fixed Deposit Savings Account Current Account Jan Dhan Account D
89 What happens if the account balance in a current account falls below the required minimum? The account is closed immediately A penalty fee is charged Interest rates are reduced Transactions are restricted B
90 What does "tenure" refer to in the context of a term deposit? The amount deposited The interest rate The duration for which the deposit is locked The penalty for early withdrawal C
91 What is the minimum tenure for a recurring deposit in most banks? 7 days 1 month 6 months 12 months C
92 What is the typical frequency of contributions to a recurring deposit? Weekly Monthly Quarterly Annually B
93 What happens if a customer misses an installment in a recurring deposit? The RD account is closed immediately. The missed installment is added to the next one. A penalty is charged, or interest may be reduced. The RD is converted into a fixed deposit. C
94 What is the maturity amount of a recurring deposit based on? The total number of installments only The principal amount and compound interest A fixed percentage of the deposited amount Market conditions at maturity B
95 What is the tax treatment of interest earned on recurring deposits in India? Completely tax-free Taxable as per the depositor’s income tax slab Exempt under Section 80C Only partially taxable B
96 Which document is typically issued to the account holder for a recurring deposit? Cheque book RD passbook or certificate Fixed deposit receipt Tax exemption certificate B
97 What is the typical minimum installment amount for a recurring deposit in most banks? ₹10 ₹100 ₹500 ₹1,000 B
98 How is TDS (Tax Deducted at Source) applied on recurring deposits in India? TDS is deducted only if the interest exceeds ₹40,000 (₹
TDS is deducted for all recurring deposits regardless oTDS is not applicable to recurring deposits. TDS is deducted only at the time of account opening. A
99 Can a recurring deposit be opened jointly? Yes, but only for married couples. No, RDs are for individual account holders only. Yes, RDs can be opened jointly by two or more individuOnly with prior approval from the bank. C
100 Who can open a current account? Only individuals Only businesses Individuals, businesses, and organizations Only non-resident Indians C
101 The Negotiable Instruments Act, 1881 is an Act to define and amend the law relating to: Cheques Bills of exchange Promissory notes All of the above D
102 "Banker" includes: Any person acting as an employee of any bank and anyAny person acting as a banker and any post office sav Any person acting as an agent of any bank and any postAny person acting as a Managing Director of any bank B
103 Which is not an example of "Promissory Note": “I acknowledge myself to be indebted to B in Rs. 1, 00 Mr B, I.O.U Rs. 1,000.” “I promise to pay B or order Rs. 500”. None of these B
104 In the Promissory Note, how many parties are involved: One Two Three Four B
105 The Negotiable Instruments Act, 1881 extends to : Only to capital cities of the States The whole of India The whole of India except the State of Jammu and Kas The Whole of India except the Union territories. B
106 Which is a "Promissory Note" I promise to pay B Rs. 500 and to deliver to him my bl I promise to pay B Rs. 500 seven days /after my marria“I acknowledge myself to be indebted to B in Rs. 1, 000I promise to pay B Rs. 500 on D’s death, provided D l C
107 Section 5 of the NI Act deals with: Bills of Exchange Holder in due course Cheque Promissory note A
108 A ‘Cheque’ is a Bills of exchange and has been defined under: The Negotiable Instruments Act, 1881 The General Clauses Act, 1897 The Reserve Bank of India Act, 1934 The Banking Regulation Act, 1949 A
109 In an appeal by the drawer against conviction under section 138, the Appellate Court may order the appellant to deposit such su 10% of the fine 15% of the fine 20% of the fine 20% of the fine C
110 The interim compensation payable under section 143 A may be recovered as if it were a fine; As if it is a decree of a court As per the provisions of Income Tax act, 1961 As per the provisions of the Code of Criminal ProcedurNone of these C
111 All offences under Chapter XVII shall be tried by: A Metropolitan Magistrate A Judicial Magistrate of the first class Either A or B None of these C
112 The maker of a bill of exchange or cheque is called: The drawee The payee The drawer The banker C
113 What is NOT true about the “bills of exchange”: it is an instrument in writing It is signed by the maker Certain sum of money is mentioned on the instrument.It contains a conditional order D
114 A promissory note, bill of exchange or cheque drawn or made out of India and made payable in, or drawn upon any person resident
Incomplete instrument Inchoate instrument Foreign instrument Inland instrument C
115 The NI Act, 1881 came into force with effect from: First day of April, 1882 First day of April, 1881 First day of March, 1882 First day of March,1881 C
116 What are the liabilities of a collecting banker: To serve notice of dishonour on the customer so that To present cheque within a reasonable time else liabl To handover the proceeds after the realisation withoutAll of the above. D
117 Who is entitled at the time of loss or destruction of a note, bill or cheque: Drawee Drawer holder in due course Payee C
118 A “promissory note” is an instrument to pay a certain sum of money: to the order of, a certain person, or to the bearer of th To the bearer of the instrument. To the order of, a certain person, None of these A
119 When a promissory note, bill of exchange or cheque is transferred to any person, so as to constitute the person the holder thereof,Mortaged Assigned Negotiated Pledged C
120 The nature of “promissory note” is: It contains an unconditional order to the drawee to paIt contains an unconditional promise by maker to pay It is drawn on specified banker to pay on demand. None of these B
121 The definition of ‘Promissory Note’ has been defined in the NI Act in: Section 7 Section 6 Section 5 Section 4 D
NME - PRACTICAL BNKING (23UCONM21)
S.NO QUESTION OPTION A OPTION B OPTION C OPTION D ANSWER
1 KYC means Know your customer Know your character Know your competitor None of the above A
2 The relationship between a banker and customer is.... That of a debtor and creditor That of a creditor and debtor Primarily that of a debtor and a creditor (a) and (b) together C
3 The banker has a lien on........ Bonds given for collection Bonds given for safe custody Bonds left by mistake All of the above A
4 In executing the standing instructions, there exists a relationship of........ debtor and creditor Trustee and Beneficiary Bailee and Bailor Agent and Principal D
5 To constitute a person as a customer....... There must be frequency of transactions There must be a dealing of a banking nature There must be some sort of an account There must be a single transactions of any nature C
6 The banker has a statutory obligation to......... Honour customers' cheque Exercise lien Maintain secrecy of his customers' accounts Honour customers' bill A
7 Contracts by lunatics in India are..... Always void Always valid Always voidable At times voidable C
8 The best procedure for opening an account in the name of a minor X and the guardian Y would be under the style........ X' Account b'-Account- Minor y' in trust for X y' account C
9 The balance of a joint A/c in the name of X,Y,Z Should be paid on the death of X........ To the legal representative of x To Y and Z To Y or Z TO the legal representative of X,Y and Z D
10 The most undesirable customer is...... A minor A married Woman An unregistered firm An undischarged bankrupt D
11 A customer's letter of instructions without any stamp, in Connection with the operations of his account is known as...... Power of attorney Authority letter Probate Mandate D
12 The following one is a negotiable instrument, negotiable by usage or custom.......... Bill of Exchange Accommodation Bill Promissory Note Share warrant D
13 The document drawn by a debtor on the creditor agreeing to pay a certain sum is called......... Cheque Promissory Note Bill of Exchange Draft B
14 Which bank have given the instructions to the commercial banks regarding the immediate credit of outstation cheques? Reserve Bank of India Central Bank World Bank All of the above A
15 Which of the following can be opened by non-resident Indians (NRIs)? Savings account Current account NRE or NRO account Fixed deposit account C
16 The primary relationship beteen a banker and customer starts from the time When cutomer visits the bank when customer opens account when customer visits bank to made queries All of the above B
17 What is the role of a banker when he collects cheques or pays premiums on behalf of his customers? Debtor Creditor Investor Agent D
18 What is the supreme responsibility of banks concerning their customers? Making a prot at all costs Ignoring customer request for assistance Disclosing customer information publicly Protecting customer deposit and secrecy D
19 What kind of relaonship exists between a banker and a customer? Fiduciary One Adversarial Competitive Collaborative A
20 Under what circumstances does a banker become a trustee? When money is deposited for a specic purpose When opening a bank account When customer checks their account balance When applying for a loan A
21 Which of the following is NOT an obligation of a banker towards the customer? Maintaining the confidentiality of the customer's acco Honoring checks within the available balance Providing financial advice Ensuring profit from the customer's investments D
22 When a bank provides overdraft facilities to its customer, the relationship is: Creditor and Debtor Debtor and Creditor Bailor and Bailee Principal and Agent B
23 What is the term used for the legal obligation of a bank to maintain customer privacy? Banking Compliance Banking Secrecy Confidential Banking Law Banker’s Duty of Secrecy D
24 In which case is a bank legally allowed to disclose a customer's information? On receiving a valid court order If the bank decides it is necessary To a competitor bank On a verbal request from a third party A
25 When a customer deposits a cheque for collection, the banker acts as: Debtor Principal Agent Creditor C
26 What does the term "nominee" refer to in a banking relationship? The person authorized to operate the account The person responsible for managing bank records The person entitled to receive the account balance in The person who provides a loan guarantee C
27 When a bank grants a loan to a customer, the relationship between them is: Debtor and Creditor Creditor and Debtor Bailor and Bailee Trustee and Beneficiary B
28 What does KYC (Know Your Customer) ensure in the banking industry? Improved customer relationships Security for bank lockers Prevention of money laundering and fraudulent activitHigher interest rates for customers C
29 What is the primary function of a banker in accepting deposits? Investment adviser Custodian of funds Loan guarantor Financial planner B
30 Which of the following is an essential feature of a banker-customer relationship? It is permanent It is based on trust and confidence It only benefits the banker It ends with the closure of the account B
31 A minor can open a bank account under which condition? By providing a loan guarantee With the permission of their school Under the guardianship of a parent or legal guardian Only for savings accounts with no deposits allowed C
32 What is the main purpose of a "Dormant Account" classification in banks? To deactivate inactive accounts To restrict operations for security reasons To impose penalties on the account holder To prepare the account for closure B
33 What is the purpose of a "Garnishee Order" issued to a bank? To freeze the account of a customer To allow overdraft facilities To activate dormant accounts To prevent the closure of an account A
34 When a customer gives a standing instruction for recurring payments, the banker acts as a: Creditor Agent Debtor Guarantor B
35 Which act governs the rights and duties of bankers and customers in India? Indian Contract Act, 1872 Banking Regulation Act, 1949 Negotiable Instruments Act, 1881 Companies Act, 2013 B
36 Which document is mandatory for opening a bank account? Electricity bill Identity proof Employer’s recommendation Credit card B
37 What is the first step in opening a bank account? Submitting an application form Selecting the type of account Receiving a passbook Depositing money B
38 Which of the following is NOT typically required to open a bank account? Proof of address Passport-sized photograph Birth certificate Proof of income C
39 What is the minimum age for opening a minor account in most banks? 5 years 10 years 15 years 18 years B
40 Why is a nominee usually appointed when opening a bank account? To share the account To operate the account To claim the funds in case of account holder’s demise To monitor the account holder C
41 Which type of account is most suitable for businesses requiring frequent transactions? Savings account Fixed deposit account Current account Recurring deposit account C
42 What is a passbook? A document to record ATM transactions A record of account holder’s transactions A guidebook for banking services A booklet to withdraw money A
43 What is the purpose of obtaining a specimen signature during account opening? To verify the handwriting style For security and transaction validation To use as proof of identity To authorize the bank account B
44 Which of these accounts does NOT typically earn interest? Savings account Current account Fixed deposit account Recurring deposit account B
B
45 How is a zero-balance account different from a savings account? No ATM card is provided No minimum balance requirement Higher interest rate is offered It is for businesses only
46 Which government-issued ID is often used for KYC in India? PAN card Aadhaar card Voter ID card All of these D
47 What type of bank account is opened for a child below 18 years? Joint account Savings account Minor account Current account C
48 What is the main purpose of a Fixed Deposit (FD) account? To save money for daily transactions To grow money over a fixed period To withdraw money anytime To secure loans from the bank B
49 Which of the following is a feature of an online account opening process? No paperwork required 24/7 accessibility Faster approval All of these D
50 What happens when an account holder fails to provide the initial deposit? The account is rejected The bank deducts a penalty The account opening process remains incomplete The account is automatically opened C
51 What is the primary benefit of a savings account? Unlimited transactions Higher interest rates compared to FDs Encourages saving and earns interest No minimum balance requirement C
52 Which account type allows the account holder to deposit a fixed sum of money at regular intervals? Fixed Deposit Account Recurring Deposit Account Current Account Demat Account B
53 A joint account can be operated by: Only one individual Two or more individuals Only a business entity None of the above B
54 A fixed deposit account typically: Allows unlimited withdrawals Provides higher interest rates than savings accounts Is used for stock trading Requires monthly deposits B
55 What is a fixed deposit? A deposit that can be withdrawn anytime without penaA deposit with a fixed tenure and interest rate A deposit in a savings account A recurring deposit made monthly B
56 Which type of bank deposit account usually offers the highest interest rate? Savings Account Fixed Deposit Current Account Recurring Deposit B
57 What is the minimum balance requirement for most current accounts? Zero balance It varies depending on the bank A fixed minimum of Rs.500 No minimum balance requirement B
58 Which of the following is a characteristic of a recurring deposit? Fixed monthly deposits for a predetermined period Interest rates vary daily Funds can be withdrawn anytime without penalty It is a type of current account A
59 Which deposit type is also referred to as a "time deposit"? Savings Account Current Account Fixed Deposit Demand Deposit C
, 60 In which type of deposit account can the customer withdraw money on demand? Fixed Deposit Recurring Deposit Demand Deposit Term Deposit C
61 Which type of deposit account is most suitable for businesses with frequent transactions? Fixed Deposit Savings Account Current Account Recurring Deposit C
62 What does the term "maturity" refer to in fixed deposits? The amount deposited initially The end of the deposit term The interest rate applied The penalty for early withdrawal B
63 Which type of deposit account does not typically earn interest? Savings Account Current Account Fixed Deposit Recurring Deposit B
64 What is the full form of CASA in banking? Current Account and Savings Account Cash and Savings Account Credit and Savings Account Current and Secure Account A
65 What is the main difference between a fixed deposit (FD) and a recurring deposit (RD)? FD requires a one-time deposit; RD involves periodic FD has lower interest rates than RD RD allows withdrawals anytime without penalty FD is only available to corporate customers A
66 What is a "zero-balance account"? An account with no deposits allowed An account that does not require a minimum balance An account with no interest payments An account used for recurring deposits B
67 Which regulatory body in India ensures the safety of bank deposits up to a certain limit? RBI SEBI IRDAI DICGC D
68 What is a bulk deposit in banking? A recurring deposit made in bulk A deposit of a large sum of money, usually above a th Multiple fixed deposits combined A demand deposit used for bulk payments B
69 What is the primary feature of a senior citizen fixed deposit? Higher withdrawal limits Higher interest rates for senior citizens Flexible deposit amounts Unlimited tenure options B
70 What is the main purpose of a Nomination Facility in bank deposits? To enable joint account holders To appoint someone to receive the deposit amount in cTo create fixed deposits automatically To transfer funds between accounts B
71 What is the maximum deposit amount insured by the DICGC in India? ₹1 lakh ₹2 lakh ₹5 lakh ₹10 lakh C
72 What is the tenure range typically available for fixed deposits in most banks? 1 month to 1 year 7 days to 10 years 1 year to 20 years No fixed tenure range B
73 Which type of bank deposit does NOT require prior notice for withdrawal? Term Deposit Savings Deposit Fixed Deposit Recurring Deposit B
74 What happens to a fixed deposit after its maturity if no instructions are given by the depositor? It is automatically withdrawn. It is automatically renewed for the same tenure at the Ipt is transferred to the savings account. It is converted into a current account. B
75 What is a Tax Saver Fixed Deposit? A deposit with a tenure of 1 year offering tax-free inte A deposit with a lock-in period of 5 years providing ta A fixed deposit with the lowest interest rate A recurring deposit with tax exemptions B
76 What is the overdraft facility in bank deposits? A loan offered based on fixed deposits The ability to withdraw more than the available balancA penalty for exceeding withdrawal limits A feature exclusive to savings accounts B
77 Which of the following is typically NOT allowed with a fixed deposit? Premature withdrawal with penalties Earning interest over a fixed period Regular deposits at fixed intervals Automatic renewal on maturity C
78 Which document is usually issued to the depositor as proof of their fixed deposit? Account Passbook Fixed Deposit Receipt (FDR) Cheque Book Savings Certificate B
79 Which type of bank deposit is linked to government savings schemes like PPF and NSC? Demand Deposit Term Deposit Savings Account Tax-saving Fixed Deposit D
80 Which type of deposit account is typically used for payroll and regular income management? Savings Account Fixed Deposit Current Account Bulk Deposit A
81 Which type of deposit is most suitable for earning regular interest income? Recurring Deposit Fixed Deposit with monthly interest payout Current Account Demand Deposit B
82 What is a benefit of a recurring deposit compared to a fixed deposit? Higher interest rates Smaller, periodic investments instead of a lump sum No lock-in period Can be withdrawn anytime without penalty B
83 What does the term "auto-renewal" mean in the context of fixed deposits? The deposit amount is automatically withdrawn after The deposit is automatically renewed for the same tenu
The deposit is transferred to a savings account on matThe deposit is renewed at the same interest rate indefi B
84 What is not the liability of a bank? Savings Account Recurring Deposit Current Account Home Loan D
85 What does "premature withdrawal" mean in bank deposits? Withdrawing funds before the bank processes them Closing a deposit account before the end of its tenure Opening a deposit account before the stipulated date Applying for a deposit without meeting eligibility B
86 What does the interest rate on a savings account typically depend on? Tenure of the deposit The frequency of withdrawals The amount deposited at the time of opening RBI's monetary policy and individual bank policies D
87 What is the typical penalty for premature withdrawal of a fixed deposit? Entire interest amount is forfeited A lower interest rate is applied along with a penalty feOnly the principal amount is returned There is no penalty for premature withdrawals B
88 Which type of deposit account is generally used for government welfare schemes? Fixed Deposit Savings Account Current Account Jan Dhan Account D
89 What happens if the account balance in a current account falls below the required minimum? The account is closed immediately A penalty fee is charged Interest rates are reduced Transactions are restricted B
90 What does "tenure" refer to in the context of a term deposit? The amount deposited The interest rate The duration for which the deposit is locked The penalty for early withdrawal C
91 What is the minimum tenure for a recurring deposit in most banks? 7 days 1 month 6 months 12 months C
92 What is the typical frequency of contributions to a recurring deposit? Weekly Monthly Quarterly Annually B
93 What happens if a customer misses an installment in a recurring deposit? The RD account is closed immediately. The missed installment is added to the next one. A penalty is charged, or interest may be reduced. The RD is converted into a fixed deposit. C
94 What is the maturity amount of a recurring deposit based on? The total number of installments only The principal amount and compound interest A fixed percentage of the deposited amount Market conditions at maturity B
95 What is the tax treatment of interest earned on recurring deposits in India? Completely tax-free Taxable as per the depositor’s income tax slab Exempt under Section 80C Only partially taxable B
96 Which document is typically issued to the account holder for a recurring deposit? Cheque book RD passbook or certificate Fixed deposit receipt Tax exemption certificate B
97 What is the typical minimum installment amount for a recurring deposit in most banks? ₹10 ₹100 ₹500 ₹1,000 B
98 How is TDS (Tax Deducted at Source) applied on recurring deposits in India? TDS is deducted only if the interest exceeds ₹40,000 (₹
TDS is deducted for all recurring deposits regardless oTDS is not applicable to recurring deposits. TDS is deducted only at the time of account opening. A
99 Can a recurring deposit be opened jointly? Yes, but only for married couples. No, RDs are for individual account holders only. Yes, RDs can be opened jointly by two or more individuOnly with prior approval from the bank. C
100 Who can open a current account? Only individuals Only businesses Individuals, businesses, and organizations Only non-resident Indians C
101 The Negotiable Instruments Act, 1881 is an Act to define and amend the law relating to: Cheques Bills of exchange Promissory notes All of the above D
102 "Banker" includes: Any person acting as an employee of any bank and anyAny person acting as a banker and any post office sav Any person acting as an agent of any bank and any postAny person acting as a Managing Director of any bank B
103 Which is not an example of "Promissory Note": “I acknowledge myself to be indebted to B in Rs. 1, 00 Mr B, I.O.U Rs. 1,000.” “I promise to pay B or order Rs. 500”. None of these B
104 In the Promissory Note, how many parties are involved: One Two Three Four B
105 The Negotiable Instruments Act, 1881 extends to : Only to capital cities of the States The whole of India The whole of India except the State of Jammu and Kas The Whole of India except the Union territories. B
106 Which is a "Promissory Note" I promise to pay B Rs. 500 and to deliver to him my bl I promise to pay B Rs. 500 seven days /after my marria“I acknowledge myself to be indebted to B in Rs. 1, 000I promise to pay B Rs. 500 on D’s death, provided D l C
107 Section 5 of the NI Act deals with: Bills of Exchange Holder in due course Cheque Promissory note A
108 A ‘Cheque’ is a Bills of exchange and has been defined under: The Negotiable Instruments Act, 1881 The General Clauses Act, 1897 The Reserve Bank of India Act, 1934 The Banking Regulation Act, 1949 A
109 In an appeal by the drawer against conviction under section 138, the Appellate Court may order the appellant to deposit such su 10% of the fine 15% of the fine 20% of the fine 20% of the fine C
110 The interim compensation payable under section 143 A may be recovered as if it were a fine; As if it is a decree of a court As per the provisions of Income Tax act, 1961 As per the provisions of the Code of Criminal ProcedurNone of these C
111 All offences under Chapter XVII shall be tried by: A Metropolitan Magistrate A Judicial Magistrate of the first class Either A or B None of these C
112 The maker of a bill of exchange or cheque is called: The drawee The payee The drawer The banker C
113 What is NOT true about the “bills of exchange”: it is an instrument in writing It is signed by the maker Certain sum of money is mentioned on the instrument.It contains a conditional order D
114 A promissory note, bill of exchange or cheque drawn or made out of India and made payable in, or drawn upon any person resident
Incomplete instrument Inchoate instrument Foreign instrument Inland instrument C
115 The NI Act, 1881 came into force with effect from: First day of April, 1882 First day of April, 1881 First day of March, 1882 First day of March,1881 C
116 What are the liabilities of a collecting banker: To serve notice of dishonour on the customer so that To present cheque within a reasonable time else liabl To handover the proceeds after the realisation withoutAll of the above. D
117 Who is entitled at the time of loss or destruction of a note, bill or cheque: Drawee Drawer holder in due course Payee C
118 A “promissory note” is an instrument to pay a certain sum of money: to the order of, a certain person, or to the bearer of th To the bearer of the instrument. To the order of, a certain person, None of these A
119 When a promissory note, bill of exchange or cheque is transferred to any person, so as to constitute the person the holder thereof,Mortaged Assigned Negotiated Pledged C
120 The nature of “promissory note” is: It contains an unconditional order to the drawee to paIt contains an unconditional promise by maker to pay It is drawn on specified banker to pay on demand. None of these B
121 The definition of ‘Promissory Note’ has been defined in the NI Act in: Section 7 Section 6 Section 5 Section 4 D
