Saturday, May 9, 2015

Day 24 - Questions


Day 24 - Demand Drafts, Hundis

( Demand Drafts, DD vs. Cheque, Hundis )


Recommended Study links - (Go through these topics before attempting MCQs)


1.  Demand Draft (DD) is a type of -
a.  Negotiable Instrument, but not precisely defined in NIA Act, 1881
b.  Negotiable Instrument and precisely defined in NIA Act, 1881
c.  Non-Negotiable Instrument, but not precisely defined in NIA Act, 1881
d.  Non-Negotiable Instrument and precisely defined in NIA Act, 1881

2.  Bank will guarantee payment for which type of instrument?
a.  Promissory Notes
b.  Bill of Exchange
c.  Cheque
d.  Demand Draft

3.  Which of the following is not true regarding Demand Draft?
a.  DD is issued by banks
b.  Bank account is necessary for being issued a DD
c.  DD cannot be dishonored
d. All are true

4.  Who acts as the drawer for a Demand Draft?
a.  Individual / account holder
b.  Banks
c.  Any party
d.  None of the above

5.  Which of the followings is/are types of Hundis?
a.  Sahyog
b.  Darshani
c.  Muddati
d.  All of the above



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Friday, May 8, 2015

Day 23 - Questions


Day 23 - Cheques

( Types of Cheques, Crossing of Cheques, Non-negotiable Cheque, Cheque Truncation System )


Recommended Study links - (Go through these topics before attempting MCQs)


1.  Which of the following is true regarding Bearer Cheque?
a.  Whoever holds and presents the bearer cheque, will be paid
b.  Bearer cheque doesn't have any crossing on it
c.  Bearer cheque can be encashed in the bank counter
d.  All are true

2.  If you put two parallel transverse lines on the cheque, then the crossing in known as -
a.  Generally cross
b.  Specially cross
c.  Restrictive cross
d.  Non-negotiable cross

3.  To make a cheque - specially crossed, what will you have to do?
a.  Put two parallel transverse lines on the cheque
b.  Put the name of the banker on the cheque
c.  Put the word 'Account Payee' on the cheque
d.  None of the above

4.  For an account payee cheque, which of the following is true?
a.  Bearer of the cheque will be credited
b.  Amount will be credited only to the account of the payee
c.  Amount will be paid to the account holder in direct cash (without crediting in account)
d.  None of the above

5.  To block the endorsement of cheque, which type of crossing will be used?
a.  Account Payee crossing
b.  Generally crossing
c.  Specially crossing
d.  Non-negotiable crossing

6.  What is the full form of CTS?
a.  Cheque Transaction System
b.  Cheque Truncation System
c.  Cheque Transfer System
d.  Cheque Transmit System

7.  Which of the following is true regarding CTS?
a.  Instead of physical movement, electronic image (scan) of cheque is used for clearance, thus reducing time to settle the transaction
b.  In CTS, scanners are used to scan the images of cheques
c.  Currently, Grid-based CTS clearing is being implemented in India
d.  All are true

8.  Which of the following is not a CTS grid?
a.  New Delhi
b.  Mumbai
c.  Chennai
d.  Kolkata

9.  What is the full form of MICR?
a.  Magnetic Ink Character Recognition
b.  Magnetic Ink Cheque Recognition
c.  Master Ink Character Recognition
d.  Master Ink Cheque Recognition

10.  Telengana falls in which of the following CTS grids?
a.  New Delhi Grid
b.  Mumbai Grid
c.  Chennai Grid
d.  None of the above





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Thursday, May 7, 2015

Day 22 - Questions


Day 22 - Negotiable Instruments

( Negotiable Instruments - Promissory Notes, Bill of Exchange, Cheques )


Recommended Study links - (Go through these topics before attempting MCQs)


1.  Which of the following is true regarding Negotiable Instruments?
a.  Price of negotiable instruments is not firmly established
b.  Negotiable instruments can be transferred from one party to another with proper documentation
c.  Both (a) and (b) are true
d.  None is true

2.  Which of the following is/are example(s) of negotiable instruments?
i.  Certificate of Deposit (CD)
ii.  Government Savings Bonds
iii.  Promissory Notes
iv.  Bills of exchange
v.  Cheques

a.  Only (i) and (ii)
b.  All except (ii)
c.  All except (i) and (ii)
d.  Only (iii), (iv) and (v)

3.  Which of the following negotiable instrument is an unconditional undertaking?
a.  Promissory Notes
b.  Bill of Exchange
c.  Cheque
d.  Both (b) and (c)

4.  Which of the following negotiable instrument involves three parties?
a.  Promissory Notes
b.  Bill of Exchange
c.  Cheque
d.  Both (b) and (c)

5.  In which type of negotiable instrument, drawee is always bank?
a.  Promissory Notes
b.  Bill of Exchange
c.  Cheque
d.  Both (b) and (c)

6.  Which negotiable instrument(s) can be payable to both bearer and order of the instrument?
a.  Promissory Notes
b.  Bill of Exchange
c.  Cheque
d.  All of the above

7.  Bill of Exchange is -
a.  unconditional order to pay
b.  unconditional undertaking/promise to pay
c.  conditional order to pay
d.  conditional undertaking/promise to pay

8.  In case of cheques, who is the payee?
a.  account holder, whose account will be debited for payment
b.  banks, who will intermediate the payment transaction
c.  account holder, whose account will be credited after payment, or person/institution, who will be credited on the bank counter after payment
d.  none of the above

9.  Cheque is a special type of -
a.  Promissory Note
b.  Bill of Exchange
c.  Both (a) and (b)
d.  None of the above

10.  'Payable to order' means -
a.  whoever bears the instrument will be paid
b.  only the person/institution, whose name is written in the instrument will be paid
c.  issuer of the instrument will be paid
d.  none of the above





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Wednesday, May 6, 2015

New Social Security Schemes


New Social Security Schemes by PM Modi

After Jan Dhan (PMJDY), the government will launch 3 mega social security initiatives in India (a Pension and two Insurance schemes) on May 9, 2015 in Kolkata.

These schemes are aimed at providing affordable universal access to essential social security protection in a convenient manner linked to auto-debit facility from the bank account of a subscriber.


The Insurance and Pension Schemes

  1. Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) - Life Insurance
  2. Pradhan Mantri Suraksha Bima Yojana (PMSBY) - Accidental Insurance
  3. Atal Pension Yojana (APY) - Pension



Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

It will offer a renewable one-year life cover of Rs. 2 lakh to all savings bank account holders in the age group of 18-50 years, covering death due to any reason, for a premium of Rs. 330 / annum per subscriber.

The scheme would be offered or administered through Life Insurance Corporation (LIC) or other Life Insurance companies willing to offer the product on similar terms on the choice of the bank concerned.



Pradhan Mantri Suraksha Bima Yojana (PMSBY)

It will offer a renewable one-year accidental death-cum-disability cover of Rs. 2 lakh for partial/permanent disability to all savings bank account holders in the age group of 18-70 years for a premium of Rs. 12 / annum (i.e., Rs. 1 / month) per subscriber.

The scheme would be administered through public sector General Insurance companies or other general insurance firms willing to offer the product on similar terms on the choice of the bank concerned.



Atal Pension Yojana (APY)

It will focus on the unorganized sector and provide subscribes a fixed min. pension of Rs. 1000, 2000, 3000, 4000 or 5000 per month starting at the age of 60 years, depending on the contribution option exercised on entering at an age between 18-40 years.

The period of contribution by any subscriber under APY would be 20 years or more. The fixed min. pension would be guaranteed by the government.

While the scheme is open to bank account holders in the prescribed age group, the central government would also co-contribute 50 % of the total contribution, or Rs. 1000/annum, whichever is lower, for a period of 5 years for those joining the scheme before December 31, 2015 and are not members of any statutory security scheme and are not income tax payers.










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Day 21 - Questions


Day 21 - Money Market Instruments (governmental)

(Money Market Instruments - Treasury Bills, Cash Management Bills, Dated Government Securities)


Recommended Study links - (Go through these topics before attempting MCQs)


1.  Treasury Bills generally have maturities of (approx.) -
a.  1 month - 3 months
b.  3 months - 1 year
c.  1 year - 5 years
d.  None of the above

2.  Currently, T-Bills are issued with the maturities of -
a.  90 days, 180 days and 365 days
b.  91 days, 182 days and 364 days
c.  60 days, 180 days and 365 days
d.  61 days, 182 days and 364 days

3.  Treasury Bill, issued by government, is a type of -
a.  Bond
b.  Debenture
c.  Stock
d.  Dividend

4.  Which of the following is false regarding T-Bills?
a.  T-Bills are issued by RBI, on behalf of Government of India
b.  T-Bills are issued on discount basis
c.  T-Bills bear interest
d.  All are true

5.  What is the full form of CMB?
a.  Cash Management Bill
b.  Civil Management Bill
c.  Credit Management Bill
d.  Cadet Management Bill

6.  Government can take loans from RBI as Ways and Means Advances (WMA) up to a certain limit. Since, the loans above the limit bears extra interest, which of the following is a better way for government to meet temporary cash requirements of less than 3 months?
a.  Treasury Bills
b.  Cash Management Bills
c.  Dated Securities
d.  Certificate of Deposits

7.  Which of the following is a long-term government security?
a.  Treasury Bills
b.  Cash Management Bills
c.  Dated Securities
d.  None of the above

8.  Dated securities issued by state governments are known as -
a.  Treasury Bills
b.  Cash Management Bills
c.  State Development Loans
d.  None of the above





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Tuesday, May 5, 2015

Day 20 - Questions


Day 20 - Money Market Instruments (Non-governmental)

( Money Market Instruments - Call and Notice Money, Certificate of Deposits, Commercial Papers, Inter-Corporate Deposits, etc )


Recommended Study links - (Go through these topics before attempting MCQs)


1.  If the tenor of transactions in Money Market is 2 to 14 days, then it is known as -
a.  Call Money Market
b.  Notice Money Market
c.  Term Money Market
d.  None of the above

2.  Which of the following is a Money Market Instrument?
a.  Call Money
b.  T-Bills
c.  Collateralized Borrowing and Lending Obligations (CBLO)
d.  All are Money Market Instruments

3.  Repo borrowings by commercial banks from RBI generally have a tenure of -
a.  1 day to 30 days
b.  1 day to 90 days
c.  1 day to 180 days
d.  1 day to 365 days

4.  Which of the following is true regarding Marginal Standing Facility (MSF)?
a.  Tenure is 1 day, and 1% of NDTL of banks is eligible for borrowing
b.  Tenure is 1 day, and 2% of NDTL of banks is eligible for borrowing
c.  Tenure is 30 days, and 1% of NDTL of banks is eligible for borrowing
d.  Tenure is 30 days, and 2% of NDTL of banks is eligible for borrowing

5.  Which of the following is false regarding borrowings of commercial banks from RBI under Bank rate?
a.  Long term borrowing, i.e., 90 days to 1 year
b.  Collateral is needed
c.  Bank rate is generally greater than Repo rate
d.  All are true

6.  Repo and Reverse Repo together is known as -
a.  Liquidity Assessment Facility
b.  Liquidity Adjustment Facility
c.  Liability Assessment Facility
d.  Liability Adjustment Facility

7.  Call Money deals with -
a.  Overnight funds
b.  funds of 2 to 14 days tenure
c.  funds of 15 days to 1 year tenure
d.  None of the above

8.  Call, Notice and Term Money are used by -
a.  Scheduled Commercial Banks, excluding RRBs
b.  Cooperative Banks, other than Land Development Banks
c.  Primary Dealers
d.  All of the above

9.  Which financial entities can issue Certificate of Deposits (CDs)
a.  Scheduled Commercial Banks, excluding RRBs
b.  Financial Institutions permitted by RBI
c.  Both (a) and (b)
d.  None of the above

10.  Certificate of Deposits issued by banks -
a.  are of min. Rs. 1 lakh and multiple thereof, with maturity of 7 days to 1 year
b.  are of min. Rs. 5 lakh and multiple thereof, with maturity of 7 days to 1 year
c.  are of min. Rs. 1 lakh and multiple thereof, with maturity of 1 month to 1 year
d.  are of min. Rs. 5 lakh and multiple thereof, with maturity of 1 month to 1 year

11.  Commercial Papers (CPs) are issued by -
a.  Corporate, with a good rating from CRA, which is registered with SEBI
b.  Primary Dealers
c.  Financial Institutions
d.  All of the above

12.  What is the minimum amount of CPs?
a.  Rs. 1 lakh
b.  Rs. 2 lakh
c.  Rs. 5 lakh
d.  Rs. 10 lakh

13.  Which of the following instrument can be issued by any corporate?
a.  Certificate of Deposits (CDs)
b.  Commercial Papers (CPs)
c.  Inter-Corporate Deposits (ICDs)
d.  Gilt-edged securities

14.  Which of the following arrangement is correct regarding risks (more risk to low risk) of instruments?
a.  CD > CP > ICD
b.  CD > ICD > CP
c.  ICD > CP > CD
d.  CP > ICD > CD

15.  Which of the following is/are collateralized lending?
a.  lending under repo rate
b.  lending under reverse repo rate
c.  lending under bank rate
d.  both (a) and (b)





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Monday, May 4, 2015

Day 19 - Questions


Day 19 - Issuance of Currency

( Issuance of Currency, Clean Note Policy, Soiled and Mutilated Notes )


Recommended Study links - (Go through these topics before attempting MCQs)


1.  RBI has the legal right to issue bank notes, under which act?
a.  Coinage Act
b.  RBI Act
c.  Banking Regulation Act
d.  Companies Act

2.   Who is responsible for minting coins in India, and under which act?
a.  RBI, Coinage Act
b.  RBI, RBI Act
c.  Government of India, Coinage Act
d.  Government of India, Banking Regulation Act

3.  What is the maximum denomination of currency note that can be issued by RBI?
a.  Rs. 1,000
b.  Rs. 5,000
c.  Rs. 10,000
d.  Rs. 50,000

4.  Small Coins are -
a.  Coins with denominations of Re. 1
b.  Coins with denominations of more than Re. 1
c.  Coins with denominations of less that Re. 1
d.  None of the above

5.  One Rupee currency bears the signature of -
a.  Governor of RBI
b.  Finance Minister
c.  Finance Secretary
d.  President of India

6.  RBI currently follows which of the following system for issuance of currency?
a.  Proportional Reserve System
b.  Minimum Reserve System
c.  Maximum Reserve System
d.  None of the above

7.  Volume and value of banknotes to be printed each year is determined by -
i.  Requirement for meeting the demand of banknotes
ii.  GDP growth
iii.  Inflation rate
iv.  Replacement of Soiled and Mutilated Notes
v.  Reserve Stock requirements

a.  Only (i), (ii) and (iii)
b.  Only (i), (iii) and (iv)
c.  All except (ii)
d.  All (i to v)

8.  Which of the following place does not have a Printing Press?
a.  Nashik
b.  Dewas
c.  Kolkata
d.  Mysore

9.  Issue Offices of RBI are those places from where -
a.  RBI issues banknotes to the bank branches
b.  RBI issues coins to the bank branches
c.  Both (a) and (b)
d.  None of the above

10.  Currency Chests are -
a.  store houses of RBI for banknotes and rupee coins
b.  store houses of commercial banks for banknotes and rupee coins
c.  store houses of RBI for banknotes and small coins
d.  store houses of commercial banks for banknotes and small coins

11.  Small Coin Depots are -
a.  store houses of RBI for small coins
b.  store houses of RBI for banknotes
c.  store houses of commercial banks for small coins
d.  store houses of commercial banks for rupee coins

12.  Which of the followings are against Clean Note Policy of RBI?
a.  Stapling and/or writing on notes
b.  Banks not sorting notes into - Reissuables and Non-issuables - while issuing to public
c.  Issuing Soiled notes to public
d.  All of the above

13.  Which of the following is not a characteristic of a Soiled Note?
a.  slightly cut
b.  notes in two pieces, but the cut is not passed through the number panels
c.  notes in more than two pieces
d.  became dirty

14.  What is the full form of TLR?
a.  Triple Lock Reception
b.  Triple Lock Receptacle
c.  Two Lock Reception
d.  Two Lock Receptacle

15.  Excessively soiled, brittle or burnt notes can be exchanged on -
a.  Commercial bank branches
b.  Issue Office of RBI
c.  Commercial bank headquarters
d.  None of the above




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