07-03-2019 DEPARTMENTAL TEST JANUARY 2019 - Kerala Co-operative Test - I Paper

 FINAL ANSWER KEY 

Paper: Elements of Banking - I PAPER 

Medium of Question: English 

Date of Examination 07-03-2019 

Question1:-NABARD was started in the year 

 A:-1949 

 B:-1955 

 C:-1975 

 D:-1982 

 Correct Answer:- Option-D 

Question2:-Unit Banking is originated in 

 A:-India 

 B:-USA 

 C:-UK 

 D:-Australia 

 Correct Answer:- Option-B 

Question3:-Who took over the functions of ARDC and functions of Agriculture credit Department of RBI?  A:-NABARD 

 B:-Regional Rural Banks 

 C:-State Bank of India 

 D:-Finance Ministry 

 Correct Answer:- Option-A 

Question4:-Participating Banking is 

 A:-Social Banking 

 B:-Online Banking 

 C:-Consortium Banking 

 D:-Innovative Banking 

 Correct Answer:- Option-C 

Question5:-Scheduled Banks are included is the ________ Schedule of the RBI Act of 1934.  A:-First 

 B:-Second 

 C:-Third 

 D:-Fourth 

 Correct Answer:- Option-B 

Question6:-Which one is not a nationalized bank? 

 A:-Punjab National Bank 

 B:-Bank of Baroda 

 C:-South Indian Bank 

 D:-Indian Overseas Bank 

 Correct Answer:- Option-C 

Question7:-Essential of Sound Banking System 

 A:-Safety 

 B:-Liquidity 

 C:-Stability 

 D:-All of these 

 Correct Answer:- Option-D 

Question8:-Reserve Bank of India nationalized in the Year 

 A:-1935 

 B:-1947 

 C:-1949 

 D:-1956 

 Correct Answer:- Option-C 

Question9:-Number of Banks Nationalized in the year 1980 by Govt. of India 

 A:-14 

 B:-10 

 C:-8 

 D:-6 

 Correct Answer:- Option-D 

Question10:-IDBI was Separated from RBI during the year 

 A:-1976 

 B:-1982 

 C:-1978 

 D:-1964 

 Correct Answer:- Option-A 

Question11:-IFCI (Industrial Financial Corporation of India) is related to 

 A:-Agricultural 

 B:-Industrial 

 C:-Housing 

 D:-None of these 

 Correct Answer:- Option-B 

Question12:-Regional Rural Banks are established based on the report of 

 A:-Sivaraman Commitee 

 B:-Narasimham Committe 

 C:-Hazari Committee 

 D:-Maclagan committee 

 Correct Answer:- Option-B 

Question13:-DICGE is under the control of 

 A:-Finance Ministry 

 B:-SBI 

 C:-RBI 

 D:-Agriculture Ministry

 Correct Answer:- Option-C 

Question14:-The Bank formed on 1-7-1955 (1st July Nineteen Fifty Five)  A:-RRB's 

 B:-RBI 

 C:-SBI 

 D:-NABARD 

 Correct Answer:- Option-C 

Question15:-Which one is not a Private Bank? 

 A:-HDFC Bank Ltd 

 B:-ICICI Banking Corporation 

 C:-Indus Ind-Bank Ltd 

 D:-Syndicate Bank 

 Correct Answer:- Option-D 

Question16:-The Minimum share Capital for registering a Private Bank  A:-Rs. 5 cores 

 B:-Rs. 25 cores 

 C:-Rs. 50 cores 

 D:-Rs. 100 cores 

 Correct Answer:- Option-D 

Question17:-Sec. ...... of B.R Act 1949 defines 'Banking' 

 A:-5(a) 

 B:-5(b) 

 C:-5(c) 

 D:-5(d) 

 Correct Answer:- Option-B 

Question18:-Sec 3 of B.R Act 1949 deals with 

 A:-Definition of Banking Company 

 B:-Business of Banking Company 

 C:-Act to apply to Co-operative Societies in certain cases 

 D:-None of these 

 Correct Answer:- Option-C 

Question19:-The bottom of three tire system in Co-Operative Banks  A:-Coop credit Society 

 B:-Central Coop Bank 

 C:-Apex Coop Bank 

 D:-None of these 

 Correct Answer:- Option-A 

Question20:-Statutory Liquidity Ratio (SLR) is fixed by which of the following Act  A:-Sec. 40 of RBI Act 

 B:-Sec. 20 of NI act 

 C:-Sec. 63 of Co-op Societies Act 

 D:-Sec. 24 of B.R Act 

 Correct Answer:- Option-D 

Question21:-Head Quarters of EXIM Bank 

 A:-Delhi 

 B:-Chennai 

 C:-Mumbai 

 D:-Kolkata 

 Correct Answer:- Option-C 

Question22:-The biggest commercial bank in India is 

 A:-RBI 

 B:-HDFC 

 C:-SBI 

 D:-United Commercial Bank 

 Correct Answer:- Option-C 

Question23:-The first joint stock bank in India 

 A:-Bank of Baroda 

 B:-Dena Bank 

 C:-Imperial Bank of India 

 D:-Oudh Commercial Bank 

 Correct Answer:- Option-D 

Question24:-Interest on deposit of co-operative banks in Kerala are fixed by  A:-Kerala Finance Ministry 

 B:-Registrar of Co-op. Societies 

 C:-Secretary, Co-operation Department 

 D:-Reserve Bank of India 

 Correct Answer:- Option-B 

Question25:-The present Reserve Bank Governor 

 A:-Raghuram Rajan 

 B:-Urjith Patel 

 C:-Shakthikanta Das  

 D:-None of these 

 Correct Answer:- Option-C 

Question26:-CRR (Cash Reserve Ratio) can be raised or lowered by ________ in India.  A:-Any bank 

 B:-SBI 

 C:-Central 

 D:-RBI 

 Correct Answer:- Option-D 

Question27:-Commercial banks can be either unit banking or _________ banking type.  A:-Central 

 B:-Rural

 C:-Specialized 

 D:-Branch 

 Correct Answer:- Option-D 

Question28:-In India the Banker to Government is 

 A:-RBI 

 B:-SBI 

 C:-SBT 

 D:-ICICI 

 Correct Answer:- Option-A 

Question29:-From 1st July 1956 India follows ________ system of note issue. 

 A:-Fixed Monitory 

 B:-Minimum Reserve 

 C:-Proportional Reserve 

 D:-Maximum Fiduciary 

 Correct Answer:- Option-B 

Question30:-EXIM Bank was started is the year 

 A:-1975 

 B:-1980 

 C:-1982 

 D:-1988 

 Correct Answer:- Option-C 

Question31:-RTGS system was introduced during 

 A:-2005 

 B:-2004 

 C:-2012 

 D:-2011 

 Correct Answer:- Option-B 

Question32:-Payment transactions emanating from a participant bank are processed by the RTGS system strictly on ________  A:-FIFO basis 

 B:-Priority basis 

 C:-LIFO basis 

 D:-None of these 

 Correct Answer:- Option-A 

Question33:-The World's first ATM was installed by 

 A:-ICICI Bank 

 B:-Barclays Bank 

 C:-CITI Bank 

 D:-HSBC Bank 

 Correct Answer:- Option-B 

Question34:-Banks are required to maintain cash reserve on the basis of 

 A:-NDTL 

 B:-CRR 

 C:-CRAR 

 D:-None of these 

 Correct Answer:- Option-A 

Question35:-The main functions of SEBI is 

 A:-To regulate securities market 

 B:-To protect the development of securities market 

 C:-To protect the interest of investors in securities 

 D:-All the above 

 Correct Answer:- Option-D 

Question36:-Indian banking system predominantly of the type of 

 A:-Branch banking 

 B:-Chain Banking 

 C:-Unit Banking 

 D:-None of these 

 Correct Answer:- Option-A 

Question37:-Using ATMs we get service like 

 A:-Cash deposits 

 B:-Cash withdrawals 

 C:-Balance enquiry 

 D:-All the above 

 Correct Answer:- Option-D 

Question38:-The newly formed Bank in Kerala by merging both the NMGB and SMGB in known as  A:-North and South Gramin Bank 

 B:-Kerala Gramin Bank 

 C:-Malabar Gramin Bank 

 D:-None of these 

 Correct Answer:- Option-B 

Question39:-NPA stands for 

 A:-Number of private accounts 

 B:-Number of performing assets 

 C:-Non performing application 

 D:-None of these 

 Correct Answer:- Option-D 

Question40:-Number of District Cooperative Banks in Kerala 

 A:-12 

 B:-13 

 C:-14 

 D:-15 

 Correct Answer:- Option-C 

Question41:-A system under which the Central Bank limit, the total amount of loan and advance by commercial bank is

 A:-Credit control 

 B:-Rationing credit 

 C:-Credit creation 

 D:-Credit limit 

 Correct Answer:- Option-B 

Question42:-A market in which short term bills are discounted and re- discounted is called __________ market.   A:-Capital 

 B:-Bill 

 C:-Money 

 D:-Commodity 

 Correct Answer:- Option-C 

Question43:-Collateral Securities means ___________ securities. 

 A:-Personal 

 B:-Government 

 C:-Tangible 

 D:-Bank 

 Correct Answer:- Option-C 

Question44:-The ability of a Bank to produce Cash on demand is 

 A:-Safety 

 B:-Liquidity 

 C:-Security 

 D:-None of these 

 Correct Answer:- Option-B 

Question45:-The Central Bank is called _________ Bank. 

 A:-Creditors 

 B:-Debtors 

 C:-Bankers 

 D:-None of these 

 Correct Answer:- Option-C 

Question46:-Which Bank is otherwise called World Bank? 

 A:-RBI 

 B:-IMF 

 C:-ADB 

 D:-IBRD 

 Correct Answer:- Option-D 

Question47:-MICR Code line indicates 

 A:-Cheque of number 

 B:-City code 

 C:-Bank code and Branch code 

 D:-All of these 

 Correct Answer:- Option-C 

Question48:-Employees of District Co. Op. Bank are recruited by 

 A:-Co. op. Service Exam Board 

 B:-Bank Recruitment Board 

 C:-PSC 

 D:-RCS 

 Correct Answer:- Option-C 

Question49:-Banking Sector falls under 

 A:-Primary sector 

 B:-Secondary sector 

 C:-Service sector 

 D:-None of these 

 Correct Answer:- Option-C 

Question50:-Bank guarantees are covered by 

 A:-BR Act 

 B:-RBI Act 

 C:-NI Act 

 D:-Indian Contract Act 

 Correct Answer:- Option-D 

Question51:-Promissory note is defined in Section of _________ negotiable instrument Act 1981. 

 A:-4 

 B:-5 

 C:-6 

 D:-7 

 Correct Answer:- Option-A 

Question52:-A _________ is a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand.  A:-Cheque 

 B:-Promissory Note 

 C:-Bailment 

 D:-None of these 

 Correct Answer:- Option-A 

Question53:-A bill of exchange is an _________ order. 

 A:-Conditional 

 B:-Unconditional 

 C:-Oral 

 D:-None of these 

 Correct Answer:- Option-B 

Question54:-Section 123 of N1 Act says about 

 A:-Cheque crossed generally 

 B:-Cheque crossed specially 

 C:-Crossing after issue 

 D:-None of these

 Correct Answer:- Option-A 

Question55:-Maximum punishment in case of dishonor of cheque as per Sec 138 of N1 Act 

 A:-Imprisonment for 6 months or fine or with both 

 B:-Imprisonment for 1 year or fine or with both 

 C:-Imprisonment for 2 years or fine or with both 

 D:-Imprisonment for 3 years or fine or with both 

 Correct Answer:- Option-C 

Question56:-The Maker of a bill of exchange is called the 

 A:-Drawer 

 B:-Drawee 

 C:-Payee 

 D:-None of these 

 Correct Answer:- Option-A 

Question57:-________ is a direction given to the paying banker not to make the payment across the counter.  A:-ATM 

 B:-Crossing of Cheque 

 C:-Teller System 

 D:-Garnishee order 

 Correct Answer:- Option-B 

Question58:-The person named in the instrument to whom or to whose order the money is by the instrument to be paid is called the  A:-Payee 

 B:-Drawer 

 C:-Draweed Endorser 

 D:-None of these 

 Correct Answer:- Option-A 

Question59:-A bill of exchange not accompanied by any document is a _________ bill. 

 A:-Trade 

 B:-Discount 

 C:-Clean 

 D:-Accommodation 

 Correct Answer:- Option-C 

Question60:-Complaint under 138 of N1 Act should be filed before 

 A:-Police Station 

 B:-First Class Judicial Magistrate Court 

 C:-Munsiff Court 

 D:-None of these 

 Correct Answer:- Option-B 

Question61:-Parties in promissory note 

 A:-Two 

 B:-Three 

 C:-Four 

 D:-Only one 

 Correct Answer:- Option-A 

Question62:-When accepting deposits the relationship of bank with customer is 

 A:-Debtor-Creditor 

 B:-Creditor-Debtor 

 C:-Agent-Principal 

 D:-Bailee-Bailer 

 Correct Answer:- Option-A 

Question63:-A court order attaching funds of judgement debtor obtained by judgement creditor is 

 A:-Mandate 

 B:-Power of Attorney 

 C:-Garnishee order 

 D:-None of these 

 Correct Answer:- Option-C 

Question64:-Maximum number of endorsement in a cheque 

 A:-One 

 B:-Five 

 C:-Three 

 D:-No Limit 

 Correct Answer:- Option-D 

Question65:-Crossing of cheque can be cancelled by 

 A:-Holder 

 B:-Holder is due course 

 C:-Drawee 

 D:-Drawer 

 Correct Answer:- Option-D 

Question66:-A cheque issued with a future date is called 

 A:-Post-dated 

 B:-Stale 

 C:-Anti-dated 

 D:-Mutilated 

 Correct Answer:- Option-A 

Question67:-In joint deposit account nomination facilities are available to 

 A:-Maximum three Nomination 

 B:-Only one Nomination 

 C:-Two Nominations 

 D:-None of these 

 Correct Answer:- Option-B 

Question68:-A person is absconding for a continuous period of seven years is called 

 A:-Missing 

 B:-Civil Death

 C:-Legal Death 

 D:-None of these 

 Correct Answer:- Option-C 

Question69:-Cash credit account is 

 A:-Working capital Finance 

 B:-Project Finance 

 C:-Long term loan for acquiring assets 

 D:-None of these 

 Correct Answer:- Option-A 

Question70:-How many days notice is to be given to the drawer for payment of money of the returned cheque?  A:-15 days 

 B:-30 days 

 C:-45 days 

 D:-60 days 

 Correct Answer:- Option-A 

Question71:-Collecting bankers protection is given in section __________ N1 Act. 

 A:-Section 10 

 B:-Section 85 

 C:-Section 15 

 D:-Section 131 

 Correct Answer:- Option-D 

Question72:-What is CBS? 

 A:-Coordinate banking solution 

 B:-Corporate Banking solution 

 C:-Core banking solution 

 D:-Competitive banking solution 

 Correct Answer:- Option-C 

Question73:-A place where representatives of banks meet to exchange cheques 

 A:-Clearing house 

 B:-Bankers club 

 C:-Bankers Forum 

 D:-None of these 

 Correct Answer:- Option-A 

Question74:-A bank provides over draft facility only in 

 A:-Saving Bank 

 B:-Recurring deposit 

 C:-Current Account 

 D:-None of these 

 Correct Answer:- Option-C 

Question75:-Crossing of cheque can be done by 

 A:-Any holder 

 B:-Payee Only 

 C:-Drawer Only 

 D:-None of these 

 Correct Answer:- Option-A 

Question76:-Bailor -bailee relationship is applicable in 

 A:-Safe deposit locker 

 B:-Demand draft issued by bank 

 C:-Keeping articles in safe custody with bank 

 D:-All of the above 

 Correct Answer:- Option-C 

Question77:-Objective of KYC 

 A:-To ensure customer identification 

 B:-To monitor transaction of suspicious nature 

 C:-To categories the customer 

 D:-Only (1) and (2) 

 Correct Answer:- Option-D 

Question78:-San re course means 

 A:-Without fear 

 B:-Without liability to me 

 C:-Without physical toner 

 D:-Without liability to payee 

 Correct Answer:- Option-B 

Question79:-Banking ombudsman is appointed by 

 A:-SBI 

 B:-RBI 

 C:-Govt. of India 

 D:-None of these 

 Correct Answer:- Option-B 

Question80:-Natural guardian of minor is 

 A:-Father 

 B:-Mother 

 C:-Court 

 D:-None of these 

 Correct Answer:- Option-A 

Question81:-Bank is a factory of 

 A:-Deposit 

 B:-Credit 

 C:-Interest 

 D:-None of these 

 Correct Answer:- Option-B 

Question82:-Bank guarantees are issued by

 A:-Any banks 

 B:-Only specified Bank 

 C:-Only bank permitted to do this type of business 

 D:-RBI 

 Correct Answer:- Option-A 

Question83:-A mutual fund is set up in the form of 

 A:-By an act of parliament 

 B:-A company under Company Act 

 C:-A trust 

 D:-None of these 

 Correct Answer:- Option-C 

Question84:-Banker’s lien is not applicable in case of 

 A:-Safe custody 

 B:-Securities left negligently 

 C:-Debts not due 

 D:-All of above 

 Correct Answer:- Option-D 

Question85:-Mandate is a __________ agreement. 

 A:-Stamped 

 B:-Non stamped 

 C:-Memorandum 

 D:-Letter 

 Correct Answer:- Option-B 

Question86:-A cheque which is not presented for payment within reasonable time period time is called  A:-Post dated 

 B:-Stale Cheque 

 C:-Ante-dated 

 D:-Mutilitated cheque 

 Correct Answer:- Option-B 

Question87:-Who is the present Chairman of SEBI? 

 A:-UK Sinha 

 B:-Prakash Bakshi 

 C:-Ajay Tyagi 

 D:-Dr. Duvvuri Subbarao 

 Correct Answer:- Option-C 

Question88:-For the revival and strengthening of the Urbon Cooperative banking sector, RBI formed  A:-TAFCUB 

 B:-NAFCUB 

 C:-NAFSCOB 

 D:-None of these 

 Correct Answer:- Option-A 

Question89:-The full form of TAN is 

 A:-Tax Deduction Account Number 

 B:-Tax Account Number 

 C:-Tax Account Net Work 

 D:-None of these 

 Correct Answer:- Option-A 

Question90:-Find out the income which is falling under service tax for Co-operatives  A:-Locker rent 

 B:-Folio Charges 

 C:-D D Commission 

 D:-All of the above 

 Correct Answer:- Option-A 

Question91:-District Cooperative Banks were registered after 

 A:-1912 Cop Societies Act 

 B:-Maclagan committee Report 

 C:-1904 Coop credit Societies Act 

 D:-None of these 

 Correct Answer:- Option-B 

Question92:-The fixed deposit of a Cooperative bank is 

 A:-Current liability 

 B:-Demand liability 

 C:-Contingent liability 

 D:-None of these 

 Correct Answer:- Option-B 

Question93:-Average credit outstanding divided by average deposits multiplied by hundred is  A:-Cost of deposit 

 B:-Yield on loans 

 C:-Cost of loans 

 D:-Credit deposit ratio 

 Correct Answer:- Option-D 

Question94:-Financial margin plus Miscellaneous income minus cost of management and risk cost is  A:-Margin 

 B:-Financial margin 

 C:-Break even level 

 D:-Net margin 

 Correct Answer:- Option-D 

Question95:-In the formula for calculation of CRAR the numerator is 

 A:-Capital 

 B:-Capital funds 

 C:-Share capital 

 D:-Share capital and reserves

 Correct Answer:- Option-B 

Question96:-Simple interest @ 12% for Rs. 75,000/- for 2 years is 

 A:-Rs. 7,500/- 

 B:-Rs. 15,000/- 

 C:-Rs. 9,000/- 

 D:-Rs. 18,000/- 

 Correct Answer:- Option-D 

Question97:-Current investment should be valued of 

 A:-Lower of cost price or market value 

 B:-Average value 

 C:-Higher value 

 D:-None of these 

 Correct Answer:- Option-A 

Question98:-In the case of an Insured Cooperative bank an order of winding up may be made only with the previous sanction in writing by  A:-NABARD 

 B:-Central Government 

 C:-NCDC 

 D:-RBI 

 Correct Answer:- Option-D 

Question99:-The present Finance Minister of India 

 A:-Arun Jaitely 

 B:-Venkayya Naidu 

 C:-Raj Nadh Singh 

 D:-None of these 

 Correct Answer:- Option-A 

Question100:-_________ is a post paid card. 

 A:-ATM 

 B:-Pan Card 

 C:-Debit Card 

 D:-Credit Card 

 Correct Answer:- Option-D