MCQ Question Test of Banking Knowledge!
MCQ Question-Answer:
- Travellers Cheques are issued in – 1. single name, (not in joint names or names or clubs, societies and companies etc.) 2. joint names; 3. single as well as in joint names; 4. None of these
- The drawee banker of a Demand Draft has received intimation of the loss of the draft from the purchaser. The banker should – 1. stop the payment; 2. exercise caution; 3. refuse to accept the notice, and 4. issue a duplicate draft.
- A Traveller’s Cheque is valid for a period of – 1. three months from date of issue; 2. six months from date of issue; 3. three years from date of issue; 4. unlimited time
- A customer requests for issue of a bearer demand draft. The banker should – 1. strike off the word ‘order’ and should put the word ‘bearer’ on the draft; 2. request the customer to go to the Head Office; 3. refuse to issue the draft; 4. None of these.
- A and B have jointly hired a locker under “Either or Survivor” clause. A dies. The bank should – 1. permit B to operate the locker; 2. seal the locker and open it only in the presence of B and A’s legal representative; 3. permit operation by B and legal representative of A jointly; 4. not have allowed operation of the locker under “Either or Survivor” clause.
- When the customer is operating the locker – 1. the banker should remain with the customer in the safe room; 2. the banker should not remain with the customer in the safe room; 3. no other person should be present in the safe room; 4. None of these
- The customer when depositing or taking out articles from the safe deposit locker should – 1. declare the value to the banker; 2. declare the items to the banker; 3. show the items to the banker; 4. not be required to do any of the above.
- Merchant banking includes – +managing issue of shares; +opening branches in mandis or bazars; +financing intermediary business; +None of these
72. While encashing a traveller’s cheque, the payee is identified by –
+the payee’s passport; +introduction from an existing customer; +introduction letter from the issuing bank; +signature of the payee on the cheque
- In disclosed factoring – +the name of supplier is mentioned in the sale invoice; +the name of buyer is mentioned in the sale invoice; +the name of the factor (factor means financial institution) is mentioned in the sale invoice; +the name of the financing banker is mentioned in the sale invoice.
- No interest is paid by the banks on –
- Savings deposit account
- Current deposit account
- Fixed deposit account
- The scheme of insurance of bank’s deposits provides insurance cover to every depositor to the extent of – +Tk. 1,00,000.00; +Tk. 30,000.00 +Tk. 50,000.00
- The scheme under which the depositor is required to deposit a fixed amount every month for a period selected by him is known as –
- Current Deposit Scheme;
- Savings Bank Deposit Scheme;
- Recurring Deposit Scheme and
- Fixed Deposit Scheme
- The bankers do not insist upon succession certificate where amount to the credit of deceased depositor does not exceed – + 25,000.00 + 50,000.00 + 10,000.00
- Garnishee order is an order issued by a competent court or authority ordering the debtor – +To pay the debt to a specific creditor only; +Not to pay the debt at all to anybody; +To pay only to the court or the competent authority + None of the above
- A minor can open and operate an account in his own name if he has at least attained the age of – +12 years; + 16 years; + 15 years; + None of the above
80. The person appointed to operate the account after his death by the deceased himself before his death is called –
+Executor;
+Administrator;
+Attorney
+None of the above
- A joint account can be opened by the banker on receipt of application signed by – +majority of the joint account holders; +all joint account holders; +any joint account holder +None of the above
- A minor cannot – +accept a bill; +draw a bill; but minor able to draw, endorse a bill. +endorse a cheque +None of the above
- A bank maintains an account in the names of A & B payable jointly. On the death of A, the balance in the account is payable to – +B; +A’s legal representative; +B and A’s legal representative in equal proportion; +B and A’s legal representative jointly.
- The object(s) for which a company has been formed, is/are found (in terms of Bangladeshi Companies Act) in – +Articles of Association; +Certificate of Incorporation; +Certificate of Commencement; +None of the above, (it should be Memorandum of Association).
- The limitation period in case of a mortgage of immovable property is –
- 3 years;
- 10 years;
- 12 years;
- None of the above
- Notice of assignment is required in case of advances against –
- Life policies;
- Motor vehicles;
- Shares;
- None of the above
- Continuing security clause is inserted in case of +term loans;
+cash credits; (only for Cash Credit, Overdraft or bill discounting)
+mortgage loans;
+ None of the above
- The end-use of funds can reasonably be ensured in case of –+ term loans; +cash credits; +bills discounted and purchased; + None of the above
- All goods should be physically checked at least once in – +a month; +6 month; +a year; +None of the above
- In a letter of credit – backed mechanism, the Advising Bank’s responsibility is to –
- inform issuing Bank as to whom to issue the letter of credit;
- advise the buyer the despatch of documents by the seller;
- inform the beneficiary/ seller about the letter of credit;
- None of the above
- In terms of UCPDC-600, in absence of any indication in the Letter of Credit, it will be treated as –
- Revocable Letter of Credit;
- Irrevocable Letter of Credit;
- Not a Letter of Credit;
- Cancelled Agreement.
- When in a letter of credit the confirming bank confirms the credit, it – +does not take any liability; +undertakes to make timely delivery of the documents; +undertakes on its part the liability under the L/C; +None of the above
- In a situation of anticipated depreciation of home currency vis-a-vis dollar, an importer who has invoiced the consignment in dollar should – +go in for forward contract; +not go in for forward contract; +should cancel forward taken earlier +None of the above
- Liquid assets include –
- cash in hand and balances with other banks;
- investments in shares and stocks;
- loans and advances;
- None of the above
- In case of pledge, the possession of the security is with – +the debtor; +the creditor (bank); +the third party; +None of the above
- A floating charge means – +a charge of the assets of a company which is being floated; +a charge on the shares of a company; +a charge on the current assets of the company which are constantly changing; +None of the above
- In case of hypothecation, the banker has – +the possession of goods; +right to sell the goods; +a specific interest in the goods; +None of the above rights
- In case of hypothecation, insurance charge for the goods are borne by –
- the borrower;
- the bank;
- the borrower and the bank jointly;
- None, since no insurance is required.
- In case of default by the borrower, the banker can sell the pledged goods –
- immediately;
- after issuing notice to the borrower;
- after obtaining court’s order;
- with the consent of the borrower.
- Pledge can be created by –
- actual delivery;
- constructive delivery;
- symbolic delivery;
- any of the above methods.
- The Letter of Continuity should be taken in the case of –
- advances to companies;
- Overdraft or Cash Credit Account;
- time barred advances;
- accounts of the deceased borrowers.
- Mortgage other than by way of deposits of title deeds should be registered with –
- the Sub-Register;
- the Register of Companies;
- the Register of Co-operative Societies;
- Registrar of Firms.
- The best option of charge to finance a car, for personal use by an individual, by a bank would be –+Pledge; +Mortgage; +Hypothecation; +None of the above.
- For creating charge on work-in-process of a borrowing unit, the most appropriate charge will be – +Hypothecation; +Pledge; +Mortgage; +None of the above.
- The right to retain goods or property of a debtor for the debt is known as – +Set-off; +Lien; +Appropriation +None of the above.
- The limitation period for filing of suit for sale of mortgaged property is – +3 years; +7 years +10 years; +12 years.
- Stock Exchange Securities do not include –
- Debenture of Companies;
- Bonds issued by Port Trusts;
- Government Promissory Notes;
- Participation Certificates.
- A bill of lading is –
- a negotiable instrument;
- quasi – negotiable instrument;
- a non – negotiable instrument;
- non – transferable instrument.
- A life policy of which the wife of the borrower is the nominees is offered as a security for advance in order to get the assignment in favour of the bank – +the wife should join in the execution of assignment; +the wife should execute a separate letter of consent; +the wife should be advised by the bank of assignment; +nothing from the wife is necessary.
- Commercial Banks provide credit only to –
- Trade and Industry;
- Agriculture and Trade;
- Trade, Agriculture and Industry;
- None of the above.
- Medium Term Credit needs are for a period between –
- 1 to 5 years;
- 5 to 10 years;
- more than 10 years;
- None of the above.777
- The term gross working capital is used for – +total current assets; +total of current assets and current liabilities ; +current assets – current liabilities; +None of the above.
- Discuss whether either of the following is a promissory note – + A promises to pay the bearer the sum of Tk. 1000.00 six months after date. + A promises to pay B Tk. 500.00 one month after C’s death.
Ans. (a) No. A promissory note cannot be payable to a bearer on account of Section 31 of the Bangladesh Bank Act. Moreover, it is not in the proper form.
(b) No. The instrument is not in the proper form and it has not been signed by the maker.
- Is Bangladesh Bank a Schedule Bank?
- No, it is the Central Bank of Bangladesh.
- Yes, but exempted from keeping Liquidity like commercial banks by the Bank Companies Act-1991
- No, it is the Central Bank Established under Negotiable Instrument Act-l 881
- One of the Differences between an Investment Company and a Bank is that a Bank:
- Can accept deposit and also borrow money but an investment Company can accept deposit but can not borrow money.
- Can accept deposit but can not borrow money whereas an Investment Company can not accept deposit.
- Can accept deposit but an investment Company can not accept deposit.
- IFIC Bank limited uses the word ‘Limited’ after its name because:
- Liability of the Bank to its depositors is limited to the extent of their amount deposited.
- Liability of the shareholders of the Bank is limited to the extent of the face value of the shares and writing of the word ‘Limited’ after its name is compulsory under the Companies Act.
- Liability of all the Officers of the Bank is limited and defined by the Board of Directors as per Companies Act
- In Case of Safe custody of valuables, the Banker enters into a relationship with the Customer. In this case the Banker is:
(A) Debtor / Trustee.
(B) Pledged /Trustee
(C) Bailee / Trustee.
- a Proprietary concern, approaches you to open a Savings account. Will you open the account?
(A) Yes, if it is for trading purposes.
(B) Yes, if it is for non-trading purposes.
(C) No, under no circumstances.
- A publicity traded Company approaches you to open an account. Among other documents, the following two documents are necessary to ascertain whether the Company is legally created entity and is working:
(A) Memorandum of Association and Articles of Association.
(B) Certificate of Incorporation and Memorandum of Association.
(C) Certificate of Incorporation and Certificate of Commencement.
- Laws governing day-to-day transactions of a bank are contained in:
(A) Negotiable Instrument Act-1881.
(B) Bank Companies Act-1991.
(C) N.I. Act.-1881 and Bank Companies Act.-1991.
- In Currency note a “Promissory Note“?
- Yes, because the Central Bank issues it with a Promise to Pay.
- Yes, because the Government issues it with a Promise to Pay.
- No, because N.I. Act does not cover it as a “Promissory Note.”
- A Bill of Exchange is payable:
(A) Only on Demand or at a fixed time.
(B) On Demand or at a fixed or determinable future time.
(C) Only at a fixed time or determinable future time.
- Who is the “Payee” of Cheque?
(A) The person named in Cheque to whom or to whose order the money is to pay is the “Payee”.
(B) The Person receiving payment of a cheque is the “Payee”.
(C) “Payee” of a cheque is the person who presents it before a bank for payment.