Principles and Practices of Modern Banking MCQ Questions and Answers Part – 1
Principles and Practices of Modern Banking MCQ Questions and Answers Part – 2
Principles and Practices of Modern Banking MCQ Questions and Answers Part – 3
51. Current Bank Rate is ___________.
A. 6.75%
B. 6.5%
C. 6.25%
D. 5.4
ANSWER: D
52. Discounting of bills of exchange is
A. Clean advance
B. Secured advance
C. Neither clean advance nor secured advance
D. Unsecured advance
ANSWER: C
53. Expand NEFT
A. National Electronic Fund Transfer
B. Neutral Electronic Fund Transfer
C. Nominal Electronic Fund Transfer
D. Natural Electronic Fund Transfer
ANSWER: A
54. Which section of Negotiable Instruments Act 1881, defines endorsement
A. Section 10
B. Section 15
C. Section 18
D. . Section 20
ANSWER: B
55. —— is an endorsement in which the endorser merely signs his name on the back of the instrument without
mentioning the name of the person to whom the instrument is endorsed
A. Blank Endorsement
B. Restrictive Endorsement
C. Qualified Endorsement
D. San Frais Endorsement
ANSWER: A
56. Blank endorsement is otherwise called as
A. Full Endorsement
B. Qualified Endorsement
C. General Endorsement
D. Special Endorsement
ANSWER: C
57. What does the term “PIN” stands for?
A. People Identification Number
B. Personal Instruction Number
C. Personal Identification Number
D. Personal Information Number
ANSWER: C
58. The ATM installed at bank premises is called as ——– ATM
A. Off-site
B. Branch
C. On-site
D. mobile
ANSWER: D
59. KYC means
A. Know Your Card
B. Know Your Cost
C. Know Your Customer
D. Know Your Creditor
ANSWER: C
60. Current CRR is
A. 5%
B. 4%
C. 6%
D. 7.5%
ANSWER: B
61. RTGS means
A. Real Towards Gross Settlement
B. Real Turn Gross Settlement
C. Real Technique Gross Settlement
D. Real Time Gross Settlement
ANSWER: D
62. In which system computers are based on the centralized processing concept?
A. Multi-user computer networking
B. Stand alone computer networking
C. Processing computer system
D. Frame computer system
ANSWER: A
63. Core banking is a __________ branch computerization model
A. Centralized
B. Decentralized
C. Unified
D. ATM
ANSWER: B
64. Establishment of SBI precedes the establishment of __________.
A. Bank of Madras
B. Bank of Calcutta
C. Bank of Bambay
D. All the above
ANSWER: D
65. ATMs are primarily used for performing the __________ functions
A. Infrastructure
B. Computer based
C. Banking
D. Hospitalized
ANSWER: C
66. Expand ‘ECS’
A. Electronic Clearing System
B. Electronic Centered System
C. Electronic Cross Systems
D. Electronic Conversion Systems
ANSWER: A
67. EFT is introduced by
A. IRDA
B. RBI
C. SEBI
D. NSE
ANSWER: B
68. ________ is a technology that allows you to access your bank account from a mobile device.
A. Home Banking
B. Mobile Banking
C. Internet Banking
D. Television Banking
ANSWER: B
69. ____ is the result of combining technology and traditional bank services through websites that customers
use to access their bank accounts
A. Home Banking
B. Mobile Banking
C. Internet Banking
D. Television Banking
ANSWER: C
70. A ______ is the market for short term bills which are generally of 3 months duration
A. Bill market
B. Money market
C. Credit market
D. Open market
ANSWER: A
71. A Garnishee order is an order issued by_________.
A. Income tax officer
B. Official liquidator
C. Court
D. RBI
ANSWER: C
72. If the endorser signs his name only, the endorsement is said to be
A. Blank Endorsement
B. Conditional Endorsement
C. Restricted Endorsement
D. Full Endorsement
ANSWER: D
73. The paying banker who makes cash payment of a cross cheque at the counter shall be liable for the loss of
A. Drawer of the cheque
B. True owner of the cheque
C. Collecting banker
D. the First endorser
ANSWER: B
74. Who can cancel the crossing on a cheque?
A. Payee
B. Paying banker
C. Endorser
D. Drawer
ANSWER: D
75. Negotiable instruments which are freely transferable form one party to another by mere delivery is known
as _____________.
A. order documents
B. bearer documents
C. flexible documents
D. Clean documents
ANSWER: B
76. Drawing of two parallel transverse lines on the face of the cheque is called
A. Special crossing
B. General Crossing
C. Upper Crossing
D. Lower Crossing
ANSWER: B
77. Addition of the name of a banker across the face of a cheque is called as
A. General crossing
B. Special crossing
C. Upper Crossing
D. Lower Crossing
ANSWER: B
78. Which of the following is a negotiable instrument by usage or custom?
A. Bill of Exchange
B. Accommodation Bill
C. Promissory Note
D. Share warrant
ANSWER: D
79. The most important feature of a negotiable instrument is
A. Free transfer
B. Transfer free from defects
C. Right to sue
D. Both A & B
ANSWER: D
80. The safest form of crossing is
A. General crossing
B. Special crossing
C. Double crossing
D. Account payee crossing
ANSWER: D
81. A Cheque which is not crossed is called
A. Uncrossed cheque
B. Open cheque
C. Order cheque
D. Bearer cheque
ANSWER: D
82. An order cheque can be converted into a bearer cheque by means of
A. Sans recourse endorsement
B. Special endorsement
C. Blank endorsement
D. Sans frais endorsement
ANSWER: C
83. Endorsement signifies that the
A. Endorser has a good title
B. Endroser’s signature is genuine
C. . Previous endorsements are genuine
D. All of the above
ANSWER: D
84. In which year, Electronic Fund Transfer (EFT) was launched in India?
A. 1994
B. 1995
C. 1999
D. 2000
ANSWER: B
85. Maximum limit on the amount of individual transactions permitted for fund transfer per transaction is
A. Rs. 1 Lakh
B. Rs. 2 Lakhs
C. Rs. 5 Lakhs
D. Rs. 10 Lakhs
ANSWER: C
86. In which year, SWIFT was established?
A. April 1973
B. July 1973
C. May 1973
D. October 1973
ANSWER: C
87. ——— allows worldwide financial institutions to exchange standardized messages relating to
international financial transaction
A. NEFT
B. SWIFT
C. ECS
D. EPS
ANSWER: B
88. CRM stands for ____________.
A. Consumer Rate Mechanism
B. Customer Relationship Management
C. Convenience Relationship management
D. Consumer Relationship Management
ANSWER: B
89. When the banking operations are carried out through electronic means, it take the form of
A. E-banking
B. M-banking
C. T-Banking
D. None of the above
ANSWER: A
90. ——— credit refers to a series of electronic payment instructions that are generated to replace proper
instruments.
A. Electronic Payment System
B. Electronic Clearing Service
C. Electronic Data Interchange
D. None of the above
ANSWER: B
91. —– has been introduced for the purpose of networking of banks.
A. Generic Architecture
B. Core Banking
C. Centralized Fund Management Systems
D. INFINET
ANSWER: A
92. To facilitate the growth in government securities market and for smoother trading, RBI introduced a ——-
— which provides for screen based trading of government securities
A. Security Settlement System
B. Negotiated Dealing System
C. Security Marketing System
D. Security Safety System
ANSWER: B
93. Banking transaction that takes placed in a virtual ambience on the website of a banking company is termed
as
A. Internet Banking
B. Telephone Banking
C. Mobile Banking
D. Modern Banking
ANSWER: A
94. All banks having operations in India and intending to offer Internet Banking services to the public must
obtain an approval for the same from
A. Government of India
B. Central Bank
C. Reserve Bank of India
D. All of the above
ANSWER: C
95. Telephone Banking has found a high level of acceptability especially among ———– level of people
A. Professional
B. Salaried
C. Retired
D. Business
ANSWER: A
96. ——— are workstations that act as a nucleaus of the functioning of the telephone banking system
operated through fully computer-integrated telephone system
A. Telephone centre
B. Enquiry centre
C. Computer centre
D. Call centre
ANSWER: D
97. The ATM pin is ———- digit code number used for authenticiating and authroizing the use of the ATM
facility by a customer
A. Four
B. Five
C. Three
D. Six
ANSWER: A
98. ——- is a technique under which effective customer authorization takes place on the basis of the
biological attributes of a bonafide person
A. Manometrics
B. Bonametrics
C. Miometrics
D. Biometrics
ANSWER: D
99. What is the major function performed by the ATM’s worldwide
A. Passboook update facility
B. Cash withdrawal
C. Mini-statement facility
D. Funds transfer facility
ANSWER: B
100. —— ATMs are a boost to smaller banks who cannot afford opening the ATMs in many places as possible
A. Lobby
B. Off-site
C. International
D. Shared
ANSWER: D