IBPS BANK EXAMINATIONS – BANKING AWARENESS – PRACTICE TEST - 1 1. What is a cheque? (A) It is a negotiable instrument drawn by a person made payable to another person drawn on a bank (B) It can be made payable to bearer or order (C) It is a negotiable instrument made payable on a future date (D) Both (a) and (b) (E) None of the above 2. The crossing of a cheque denotes (A) Placing the cheque in a crossed manner – one above the other (B) Drawing two transverse parallel lines on the face of the cheque (C) The cheque, which is cancelled (D) All of the above (E) None of the above 3. An addition of the name of the bank across the face of the cheque means: (A) Cheque can be paid across the counters of the bank named (B) Cheque cannot be paid otherwise than to the bank whose name is mentioned across the instrument (C) Both (i) and (ii) (D) The name of the bank cannot be added (E) None of the above 4. Endorsement of a cheque means (A) Signature of the payee or holder on the back of the cheque (B) Handing over the cheque to other person (C) Assigning the cheque to a third party (D) An additional signature of the drawer on the face of the cheque (E) None of the above 5. A customer is one who (A) Visits the bank regularly (B) Comes to meet the bank’s staff for inviting to a dinner (C) Visits the bank for the purpose of conducting the transactions (D) All of the above (E) None of the above 6. A customer is having a savings bank account and the relationship the customer has with the bank is (A) Creditor and Debtor (B) Debtor and creditor (C) Principal and agent (D) Trustee and beneficiary (E) Lessor and lessee 7. A customer is having a housing loan account with the bank and the relationship between the bank and the customer is that of (A) Debtor - creditor (B) Creditor - debtor (C) Lessor - lessee (D) Bailor – bailee (E) Principal - agent 8. When a bank accepts securities for safe custody from the customer, the relationship between the bank and its is customer is that of (A) Debtor – creditor (B) Creditor - debtor (C) Agent - principal (D) Bailee –Bailor (E) Lessor and lessee 9. A bank sends some trade bills of a customer for collection to one of its Kolkatta branch and the relationship between the bank and the customer is (A) Creditor - debtor (B) Agent - principal (C) Bailor - bailee (D) Debtor – creditor (E) Debtor - creditor 10. When a bank allots a safe deposit locker to a customer, the relationship between the bank and the customer is that of (A) Debtor – creditor (B) Creditor – debtor (C) Lessor - lessee (D) Bailor – bailee (E) Lessee - lessor 11. Money laundering refers to (A) Bringing the money obtained by illegal means into the banking channels (B) Converting the money into fixed assets (C) Sending the money to a launderer (D) All of the above (E) None of the above 12. A merchant establishment, with reference to credit card transactions is (A) Merchants where credit cards are sold (B) Merchants who accepts the credit cards towards payments for goods sold (C) Merchants who lends money on credit basis (D) Both (a) and (b) (E) None of the above 13. Which one of the following group is termed as retail loans? (A) Housing loans, personal loans, cash credit (B) Personal loans, vehicle loans, housing loans (C) Credit card dues, personal loans, crop loans (D) Dairy loans, vehicle loans, housing loans (E) Housing loans, crop loans, vehicle loans 14. A loan to an individual is granted to a person: (A) Person who is above 18 years of age (B) Persons of all ages (C) Persons of above 18 years and of sound mind (D) Persons aged between 18 years and 60 years (E) None of the above 15. A housing loan is granted on the security of (A) Hypothecation of the house financed (B) Mortgage of the house financed (C) Personal guarantee of the borrower (D) All of the above (E) None of the above 16. A vehicle loan is granted primarily on the security of: (A) Personal guarantee of a person acceptable to the bank (B) Collateral security of the borrowers house (C) Hypothecation of the vehicle financed (D) The security can be a house, vehicle or any other security (E) None of the above 17. Personal loans are primarily granted considering:. (A) The income of the borrowers and repaying capacity (B) The worth of the third party security (C) Generally given to all persons (D) All the above (E) None of the above 18. Asset classification means (A) Classification of the assets based on the security value (B) Classification of the assets based on the asset size (C) Classification of the assets based on the irregularity in the account (D) All of the above (E) None of the above 19. A performing asset means: (A) Assets placed for performing a ritual (B) Assets, which generate income for the bank (C) All assets of the bank (D) Buildings which are strong and stable (E) None of the above 20. What is a standard asset? (A) An asset where the installment or interest is not outstanding for more than ninety days (B) An asset, which do not have any installment or interest as due for more than ninety days (C) Asset which is classified as such by Indian Standards Organisation (D) An asset which has been certified as good by Standards and Poor (E) None of the above TEST: 1 - ANSWERS 1-D 2-B 3-B 4-A 5-C 6-A 7-B 8-D 9-B 10-C 11-A 12-B 13-B 14-C 15-B 16-C 17-A 18-C 19-B 20-A
Posted on: Thu, 03 Oct 2013 10:39:20 +0000