Legal Jaiib

1. A public sector bank is a corporate created under a special statute.
True
False
The Correct Answer is : True Module : Module A Chapter : Chapter1
2. A banking company is registered under the Banking Regulation Act. True False
The Correct Answer is : False Module : Module A Chapter : Chapter1
3. Cooperative banks are registered under the Multi-State Cooperative Societies Act
or a State Cooperaytive Societies Act. Marks: 2+ 0.5-
True False
4. Subsidiaries of the State Bank are companies registered under the Companies Act.
Marks: 2+ 0.5-
True False
5. Accepting deposits for safe custody would fall within the definition of 'banking'
Marks: 2+ 0.5-
True False
6. Reserve Bank was constituted under _____. Marks: 2+ 0.5-
BR Act.
RBI Act
Companies Act
The Correct Answer is : RBI Act Module : Module A Chapter : Chapter1
7. A Regional Rural Bank is _____. Marks: 2+ 0.5-
a body corporate created under a special statute
a cooperative society
a company
The Correct Answer is : a body corporate created under a special statute Module :
Module A Chapter : Chapter1
8. Banking companies are licensed by _____. Marks: 2+ 0.5-
Reserve Bank
Registrar of Companies
Company Law Board Module : Module A Chapter : Chapter1
9. Business which a banking company may undertake other than banking is as
stipulated by ______. Marks: 2+ 0.5-
Reserve Bank
BR Act
RBI Act
The Correct Answer is : BR Act Module : Module A Chapter : Chapter1
10. BR Act was enacted for ________. Marks: 2+ 0.5-
regulating banking companies
creating Reserve Bank
regulating acceptances of deposits from public
The Correct Answer is : regulating banking companies
Module : Module A Chapter : Chapter1
11. Central Government can give direction to the Reserve Bank.
True False
12. All kinds of business of banks is regulated only by the Reserve Bank.
True False
13. Central Government is the primary regulator of banks
True False
14. state governments have no control over cooperative banks.
True False
15. On cancellation of license of any bank, an appeal lies to Central Government.
Marks: 2+ 0.5-
True False
16. Cooperative banks operating in different states are registered under ___
State Cooperative societies Act
Multi-State Cooperative Societies Act
RBI Act
The Correct Answer is : Multi-State Cooperative Societies Act
17. Government can exempt a bank from the provisions of BR Act_______. on the
recommendation of RBI
Whenever the government is satisfied
if requested by a bank
The Correct Answer is : on the recommendation of RBI
18. _________ exercise the central banking function in India.
State Bank
Central Bank of India
Reserve Bank
The Correct Answer is : Reserve Bank Module : Module A
Chapter : chapter1
19. Company matters of a banking company are regulated by _______.
Reserve Bank
Authorities under the Companies Act
SEBI
The Correct Answer is : Authorities under the Companies Act
20. Trading in shares and securities by banks is subject to regulation by --
Controller of Capital issues.
SEBI
Company Law Board
The Correct Answer is : SEBI Module : Module A Chapter : Chapter1
21. A company has to obtain a ________ from the Reserve Bank to commence
banking business in terms of Section 22 of the BR Act.
registration
licence
commencement certificate
The Correct Answer is : licence Module : Module A Chapter : Chapter2
22. Shifting of a bank's branch in the _____ does not require Reserve Bank's
permission under Section 23.
same district
same state
same city , town or village
The Correct Answer is : same city , town or village
23. Foreign banks are required under Section 11 of the BR Act to deposit
___________ arising out of their business in india with the Reserve Bank
20 per cent of profit of each year
30 per cent of profit for each year
20 per cent of the deposits collected each year.
The Correct Answer is : 20 per cent of profit of each year
24. Banks may float subsidiaries for carrying on the business specified in __
their Memorandum of Association
Section 6(1)(a) to (o) of the BR Act
their Articles of Association
The Correct Answer is : Section 6(1)(a) to (o) of the BR Act
25. Shareholders of banking companies can exercise voting rights up to ______ of
the total voting rights of all shareholders. Marks: 2+ 0.5-
1 per cent
10 per cent
100 per cent
The Correct Answer is : 10 per cent
26. Banking companies are not permitted to give dividend until all _________ are
written off. Marks: 2+ 0.5-
bad debts
expenses
capitalised expenses
The Correct Answer is : capitalised expenses
27. A temporary branch for less than 30 days in a town where a bank has an existing
branch does not require permission from Reserve Bank.
True
False
28. A company to which banking licence is rejected can undertake business as a
moneylender or undertake other business. Marks: 2+ 0.5-
True
False
29. The decision of Reserve Bank to revoke licence is final and no appealies from it.
Marks: 2+ 0.5-
True
False
30. Banking companies are permitted to give brokerage up to 2.5 per cent of the
paid-up value of shares. Marks: 2+ 0.5-
True
False
The Correct Answer is : True
31. No person can hold the shares of banks beyond ceilling speciried under the BR
Act. Marks: 2+ 0.5-
True
False
32. A banking company cannot hold share in any other company other than a
subsidiary. Marks: 2+ 0.5-
True
False
33. A director of a banking company should not have ______ in any other company.
Marks: 2+ 0.5-
beneficial interest
any interest
substantial interest
The Correct Answer is : substantial interest
34. At least ________ of the directors should have the qualifications prescribed
under Section 10A(2) of the BR Act. Marks: 2+ 0.5-
50 per cent
75 per cent
51 per cent
The Correct Answer is : 51 per cent Module : Module A Chapter : Chapter2
35. When the board of a banking company is ordered to be reconstituted under
Section 10A of the BR Act, directores will be removed _______ for the purpose of
reconstitution. Marks: 2+ 0.5-
by rotation
by lots
by majority decision
The Correct Answer is : by lots Module : Module A Chapter : Chapter2
36. Before removing the Chariman of a bank from office, Reserve Bank has to
_______. Marks: 2+ 0.5-
give compensation for loss of office,
give opportunity of being heard
give an option to continue as director.
The Correct Answer is : give opportunity of being heard
37. The provision of Section 36AA of the BR Act regarding removal of managerial
personnel have ______ over other laws. Marks: 2+ 0.5-
no effect
overriding effect
persuasive effect
The Correct Answer is : overriding effect
38. Reserve Bank is authorised to appoint ______ under SEction 36AB of the BR Act.
Marks: 2+ 0.5-
directors
additional directors
managing director
The Correct Answer is : additional directors
39. The maximum period of office that may be held continuously by an ordinary
director in a banking company is 8 years. Marks: 2+ 0.5-
True
False
40. The decisions of the Board of Directors, during the period when the boards'
constitution is defective shall be void. Marks: 2+ 0.5-
True
False
41. The post Chariman of a banking company may be on part-time basis.
True
False
42. The Chairman of a banking company can hold office only for a maximum period
of 8 years. Marks: 2+ 0.5-
True
False
43. From the order removing Chairman of a banking company, appeal lies to Central
Government within 30 days of the order. Marks: 2+ 0.5-
True
False
44. Reserve Bank has the power to remove any officer or other staff of a banking
company under Section 36AA of the BR Act. Marks: 2+ 0.5-
True
False
45. Reserve Bank may issue directions to banking companies under Section 21 of BR
Act on _________. Marks: 2+ 0.5-
audit
loans and advances
captial structure
The Correct Answer is : loans and advances
46. ______ may regulate acceptance of deposits including rate of interest on deposit
by banking companies under Section 35A of the BR Act.
government
Reserve Bank
Board of Directors
The Correct Answer is : Reserve Bank
47. The banking ombudsman can be an arbitrator in disputes between __________.
Marks: 2+ 0.5-
two banking companies
two or more customers
a bank and the government
The Correct Answer is : two banking companies
Module : Module A
Chapter : Chapter3
48. Diretions can be issued to banking companies on loans and advances _______.
Marks: 2+ 0.5-
in strict confidence
in public interest
in the interst of borrowers
The Correct Answer is : in public interest
49. The purpose of ________ is to make credit available to essential sectors of the
economy according to national priorities. Marks: 2+ 0.5-
selective credit control
maintenance of cash reserve
reserve fund
The Correct Answer is : selective credit control
50. _________ Act prohibits lending at exorbitant rates and empowers reopening of
such contracts. Marks: 2+ 0.5-
BR Act
RBI Act
Usurious Loans Act
The Correct Answer is : Usurious Loans Act
51. Reserve Bank can issue directions on loans and advances under Section 21 of the
Banking Regulation Act. Marks: 2+ 0.5-
True
False
52. Regulation of credit to different sectors of the economy is known as selective
credit control. Marks: 2+ 0.5-
True
False
Module : Module A
Chapter : Chapter3
53. Banks are free to lend to their directors. Marks: 2+ 0.5-
True
False
54. Bank have to file a return to Reserve Bank regarding unclaimed deposits under
Section 26 of the BR Act. Marks: 2+ 0.5-
True
False
55. Directions may be issued under RBI Act to banks in respect of loans and
advances in the interest of depositors. Marks: 2+ 0.5-
True
False
56. _______ have to maintain cash reserve under Section 18 of the BR Act. Coop.
banks
Banking companies which are not scheduled banks
Nationalised banks
The Correct Answer is : Banking companies which are not scheduled banks
57. The liquid assets to be maintained under Section 24(2A) of BR Act are RBI Act.
Marks: 2+ 0.5-
inclusive
not inclusive
partly inclusive
The Correct Answer is : not inclusive
58. The payment of penalty under Section 24 of BR Act can be enforced by making
an appliation before _____. Marks: 2+ 0.5-
the government
civil court
high court
The Correct Answer is : civil court
59. Only scheduled banks havea duty to maintain cash reserve under Section 42 of
the Reserve Bank of India Act. Marks: 2+ 0.5-
True
False
60. Every banking compnay has to maintain the liquid assets as required under
Section 24 of the Banking Regulation Act. Marks: 2+ 0.5-
True
False
61. The share capital and reserves of banking company from part of its demand and
time liabilities for the purpose of Section 42 of the RBI
True
False
62. Additional cash reserve required under Section 42 (1A) will be as notified by the
Central Government from time to time. Marks: 2+ 0.5-
True
False
63. Interest is payable to scheduled banks on the additional cash reserve maintained
as required under Section 42 (1A) of the RBI Act.
True
False
64. No banking company incorporated in India is required to maintain reserve fund
under Section 17 (1) of the BR Act. Marks: 2+ 0.5-
True
False
65. The diretions of Reserve Bank issued to the banking companies under Section
35A of the Banking Regulation Act are __________.
binding on them
not binding on them and are in the nature of guidelines
binding on the bnaks and the public
The Correct Answer is : binding on them
66. A contract if entered into by a banking company with any party in contravention
of a direction issued by the Reserve Bank ________.
shall be invalid
shall render the banking co. liable to prosecution for violation of directions
shall render the bank and any other party to the contract liable to prosecution for
violation of directions.
The Correct Answer is : shall render the bank and any other party to the contract
liable to prosecution for violation of directions.
67. Liquid assets required to be maintained in India under Section 24 of the BR Act
may be held in the form of _______. Marks: 2+ 0.5-
cash only
cash and gold only
gold or unencumbered approved securities
The Correct Answer is : gold or unencumbered approved securities
68. For the purpose of maintenance of liquid assets under Section 24 of the BR Act,
unencummbered approved securities shall be valued at ____.
face value
current market price
average of market price for previous six months
The Correct Answer is : current market price
69. The penal interest chargeable on a banking company under Section 24 (4) of the
BR Act for not maintaining liquid assets as specified under Section Bank 24(2A)(a) of
the Act_________. Marks: 2+ 0.5-
may be waived by the Reserve Bank if its is satisfied that the bank had sufficient
cause for the failure
has to be charged in all cases and the Reserve Bank has no option to waive penal
interest.
can be reduced by the Reserve Bank
The Correct Answer is : may be waived by the Reserve Bank if its is satisfied that
the bank had sufficient cause for the failure
70. A banking company has to prepare profit and loss accounts nad balance sheet as
at the ________ or at the expiration of 12 months ending with such date as notified
by the Central Government. Marks: 2+ 0.5-
end of calender year
end of March
end of June
The Correct Answer is : end of calender year
71. The balance sheet and profit and loss account shall be audited by a person duly
qualified to be _______. Marks: 2+ 0.5-
a certified financial analyst
auditor of companies
auditor of cooperative societies
The Correct Answer is : auditor of companies
72. Three copies of balance sheet and accounts along with auditor's report sent to
Reserve Bank under Section 31 of the BR Act have also to be sent to-
the Central Government
Company Law Board
The Correct Answer is : Registrar of Companies
73. Reserve Bank is empowered to conduct________ of a banking company under
Section 35(1) of the BR Act. Marks: 2+ 0.5-
inspection
special audit
audit
The Correct Answer is : inspection
74. A copy of the inspection report relating to a banking compnay ________ to that
banking company. Marks: 2+ 0.5-
should be given
need not be given
should be given at request
The Correct Answer is : should be given
75. The board for financial Supervision is constituted by ______________ the
government
Reserve Bank
Indian Banks Association
76. Under Section 35(4) of the BR Act, Central Government can prohibit a banking
company from accepting fresh deposits if the business of the banking company is
conducted _______. Marks: 2+ 0.5-
not profitably
not in compliance with the Act
to the detriment of interest of its depositors
The Correct Answer is : to the detriment of interest of its depositors
77. Foreign banks have to prepare account and balance sheet in respect of all
business transacted by them in india. Marks: 2+ 0.5-
True
False
78. Reserve Bank requires the persmission of the Central Government for ordering
special audit of a banking company. Marks: 2+ 0.5-
True
False
79. Three copies of the balance sheet and profit and loss account of a banking
company together with auditor's report have to be submitted to the Reserve Bank as
returns. Marks: 2+ 0.5-
True
False
80. A copy of scrutiny report has to be given to the banking company whether
requested by it or not. Marks: 2+ 0.5-
True
False
81. The Board for Financial Supervision is set up under the regulations framed by the
Reserve bank under Section 58 of the Banking Regulation Act. True
False
82. The Central Government is not empowered to orde Reserve Bank for inspection
of a banking company. Marks: 2+ 0.5-
True
False
83. Central Government has to give notice to the banking company before publishing
its inspection report or any part of it. Marks: 2+ 0.5-
True
False
84. The undertaking of a banking company may be acquired by the Central
Government if it is satisfied on a report from the Reserve Bank that the banking
company has failed on more than one occasion to comply with the _
directions of the government
directions under Sections 21 and 35A of BR Act
provisions of the Companies Act
The Correct Answer is : directions under Sections 21 and 35A of BR Act
85. The Central Government may make a _________ after consultation with the
Reserve Bank for carrying out the purposes of Part llC of the BR Act in relation on ani
acquired bank. Marks: 2+ 0.5-
scheme
plan
memorandum
The Correct Answer is : scheme Module : Module A Chapter : Chapter4
86. ________ may apply to the High Court for winding up of a banking company
under Section 38 of the BR Act. Marks: 2+ 0.5-
Reserves Bank
Central Government
The Correct Answer is : Reserves Bank
87. The High court shall order winding up of a banking compnay if the banking
company is unable to _______ . Marks: 2+ 0.5-
pay its debts
file returns in time
eliminate non-performing assets
The Correct Answer is : pay its debts
88. In winding up proceedings the depositors shall ________ for the amounts shown
in the books of the bank standking to their credit.
be deemed to have filed claim
have to file claim
have no claim
The Correct Answer is : be deemed to have filed claim
89. The ________ may apply to the Central Government for an order of moratorium
in respect of a banking company. Marks: 2+ 0.5-
banking company
Regisrar of Companies
Reserve Bank
90. The provisions of a shceme of amalgamation sanctioned by the Central
Government under Section 45 of the BR Act will ________ the provisions of other
laws. Marks: 2+ 0.5-
not affect
have overriding effect on
will be subject to
The Correct Answer is : have overriding effect on
91. Central Government can acquire the undertaking of a banking company under
Section 36AE of the Banking Regulation Act in the interest of banking policy without
any report from the Reserve Bank on the affairs of the bankijng company.
Marks: 2+ 0.5-
True
False
92. The undertaking of an acquired bank may vest in the Central Government or in
any company or corporation as directed by the Central Government. Marks: 2+
-
0.5
True
False
93. On the application of Reserve Bank, the High Court may stay the commencement
or continuance of proceedings against any banking company for any period of time.
Marks: 2+ 0.5-
True
False
94. The Reserve Bank or State Bank or another person as specfied by the Reserve
Bank in its application before the High Court may be appointed as liquidator of a
banking company, Marks: 2+ 0.5-
True
False
95. On winding uop of a banking company, all the depositors as a class get the first
preference for payment. Marks: 2+ 0.5-
True
False
96. The Reserve Bank may prepare a scheme for reconstruction or amalgamation of
a banking company under moratorium under Section 45 of the BR Act.
Marks: 2+ 0.5-
True
False
97. Making any false statements in a return or other document submitted under the
provisions of the BR Act is punishable with imprisonment and fine also.
Marks: 2+ 0.5-
True
False
98. The State Bank of India is a __________ constituted under the State Bank of
India Act. Marks: 2+ 0.5-
banking company
body corporate
society
The Correct Answer is : body corporate Module : Module A:ch. undefined
99. The Chairman of the State Bank is appointed by ______ in consultation withe the
Reserve Bank. Marks: 2+ 0.5-
the Central Board
Banking services Recruitment Board
Central Government
The Correct Answer is : Central Government
Module : Module A Chapter : undefined
100. State Bank has to act as ________ and carry out Central Government business
and other business entrusted by the Reserve Bank.
agent of Reserve Bank
agent of Central Government
advisor to the Central Government
The Correct Answer is : agent of Reserve Bank
101. The provision of the _______ are applicable to State Bank as stipulated in
Section 51 of the BR Act. Marks: 2+ 0.5-
RBI Act
Banking Regulation Act
Companies Act
The Correct Answer is : Banking Regulation Act
102. The majority of shares of subsidiary banks are held by ________ .
Reserve bank
Central Government
State bank
The Correct Answer is : Reserve bank
103. Regional rural banks operate in _______. Marks: 2+ 0.5-
a notified area
the whole of a state
only a district
The Correct Answer is : a notified area
104. The management of the affairs of a regional rural bank is vested in ___
the Sponsor Bank
its Board of Directors
National Bank
The Correct Answer is : its Board of Directors
105. The State Bank can make statutory regulations for carrying out this purposes of
the State Bank of India Act, in consultation with Reserve Bank and with previous
approval of the Central Government . Marks: 2+ 0.5-
True
False
The Correct Answer is : True Module : Module A Chapter : undefined
106. The Central Bank Government is not authorised to give any directions to the
State Bank in matters of policy involving public interest.
True
False
The Correct Answer is : False Module : Module A Chapter : undefined
107. The provision of Sectionm 42 of the Reserve Bank of India Act relating to cash
reserve apply to State Bank Marks: 2+ 0.5-
True
False
108. Subsidiary banks do not have to maintain liquid assets under Section 24 of the
BR Act. Marks: 2+ 0.5-
True
False
109. Regional rural banks may transact the business of banking as defined in Section
5(b) of the BR Act and also other business specified in Section 6(1) of that Act.
Marks: 2+ 0.5-
True
False
110. Two regional rural banks may be amalgamated by the Reserve Bank by
notification in the gazette. Marks: 2+ 0.5-
True
False
111. The management of nationalised is governed by the Nationalised Banks
(Management and Miscellaneous Provisions) Schemes of 1970 and 1980.
True
False
112. Unless the context otherwise require, the reference to a _______ in the
Banking Regulation Act shall be construed as reference to a cooperative bank.
Marks: 2+ 0.5-
cooperative society
banking company
body corporate
The Correct Answer is : banking company
113. _________ in relation to a cooperative society, for the puposes of BR Act,
includes a member of any committee or body for the time being vested with the
management of the affairs of that society . Marks: 2+ 0.5-
Director
Member
Manager
The Correct Answer is : Director Module : Module A Chapter : undefined
114. The requirement of minimum paid-up capital and reserves for a cooperative
bank to commence or carry on banking business is _____
Rs 1 crore.
Rs 1 lakh.
Rs 10 lakh
The Correct Answer is : Rs 1 lakh. Module : Module A Chapter : undefined
115. There are restrictions on cooperative banks on ____in other cooperative
societies under Section 49 of the BR Act. Marks: 2+ 0.5-
holding of shares
keeping deposits
acquiring any interested
The Correct Answer is : holding of shares Module : Module A Ch.undefined
116. Central and restrictions on cooperative banks have to submit their returns
under Section 31 of BR Act to______. Marks: 2+ 0.5-
Reserve Bank and National Bank
National Bank only
Reserve Bank only
The Correct Answer is : Reserve Bank and National Bank
117. Under Section 23 of the BR Act, without the permission of Reserve Bank, a
____ can open a new place of business within the area of its operation.
Marks: 2+ 0.5-
central cooperative bank
state cooperative bank
primary cooperative bank
The Correct Answer is : central cooperative bank
118. Cooperative banks have to prepare their balance sheet and profit and loss
account in the forms setout in the Third Schedule to ________.
Banking Regulation Act
Reserve Bank of India Act.
State cooperative Society Act
The Correct Answer is : Banking Regulation Act
119. Banking Regulation Act was made applicable to cooperative banks by the
Banking Laws (Application to Cooperative Societies ) Act, 1965.
True
False
120. A primary cooperative bank does not require licence from the Reserve Bank to
carry on banking business. Marks: 2+ 0.5-
True
False
121. The provision of the Banking Regulation Act as provided in Section 56 of the Act
apply to cooperative banks. Marks: 2+ 0.5-
True
False
122. A 'Cooperative Bank' means a primary cooperative bank, central cooperative
bank and a state cooperative bank. Marks: 2+ 0.5-
True
False
123. There are no restrictions under the BR ACt on lending by cooperative banks to
their directors of firms in which they are interested.
True
False
124. A scheduled cooperative bank to maintian ash resrve as stipulated in Section 42
of tjhe Reserve Bank of India Act (as application to cooperative societies.
Marks: 2+ 0.5-
True
False
125. Inspection of cooperative banks is done by the state government under the
cooperative Societies Act and the Reserve Bank has no power to inspect under the
Banking Regulation Act. Marks: 2+ 0.5-
True
False
126. The relating to payment of cheques and protection to a banker is contained in
the India Contract Act. Marks: 2+ 0.5-
True
False
The Correct Answer is : False Module : Module B Chapter : Chapter1
127. The responsibility of a banker to pay back the money of the customer
specifically state in the Negotiable Instrument Act, 1881 Marks: 2+ 0.5-
True
False
The Correct Answer is : True Module : Module B Chapter : Chapter1
128. Section 31 of the Negotiable Instruments Act applies only on banker.
True
False
Module : Module B Chapter : Chapter1
129. The banker is first bound to honour a customer cheque and only thereafter
exercise him right of set off. Marks: 2+ 0.5-
True
False
130. A forged signature is no mandate of the customer. Marks: 2+ 0.5-
True
False
131. A customer is bound to inform the bank about lost cheque leaves.
True
False
132. Payment to be made in due course need not always be made to holder but can
be made to his agent or servant. Marks: 2+ 0.5-
True
False
133. In case bank makes payment by mistake it can recover the same even if the
payee has changed his position. Marks: 2+ 0.5-
True
False
134. If a bank makes payment without checking the instrument under an ultraviolet
lamp, it can be held liable on the grounds of negligence.
True
False
135. The statutory protection to a collecting banker is as per Section 6 of the Indian
Contract Act. Marks: 2+ 0.5-
True
False
136. As per Section 131A of the Negotiable instruments Act the protection granted to
a banker while paying cheques has been made appliable to drafts. Marks: 2+
-
0.5
True
False
137. The duties of collecting bank to claim protection has been laid down under the
Indian Contract Act and Banking Regulation Act.
True
False
138. In the absence of proper reference the banker can be held liablke on the
grounds of negligence. Marks: 2+ 0.5-
True
False
139. It is necessary for the banker to make enquiries regarding the references given
by the customer. Marks: 2+ 0.5-
True
False
140. Section _________ of the Indian Contract Act defines and indemnity. 124
The Correct Answer is : 124 Module : Module B Chapter : Chapter3
141. A person promising to save another from loss is called _____.
indemnifier
142. _________ is a person who is promised to be saved from loss. indemnity
holder
143. Contract of indemnity as defined in the Contract Act is exhaustive.
True
False
144. Insurance Contracts are not contracts of indemnity. Marks: 2+ 0.5-
True
False
145. There are ____ parties to a contract of indemnity. Marks: 2+ 0.5-
2
146. Indemnifiers liability in a contract of indemnity is _________. Primary
147. There are three parties to a contract of indemnity the indemnifier, the
indemnity holder and the person on whose behalf the indemnity is given.
True
False
148. Indemnifier's liability occurs only if the indemnity holder suffers loss. True
False
149. Customers as a matter of right and without ans indemnity can obtain duplicate
of Demand Drafts or Travellers' Cheques. Marks: 2+ 0.5-
True
False
150. Indemnities are required by banks purely as a formality and does not seve any
other purpose. Marks: 2+ 0.5-
True
False
151. The indemnity obtained by bankers only protects him from the actual value of
instrument. Marks: 2+ 0.5-
True
False
152. An indemnity holder can act beyond his authority. Marks: 2+ 0.5-
True
False
153. An indemnity holder can be compensated only for damages and not for the
costs incurred by him. Marks: 2+ 0.5-
True
False
154. An indemnity holder is entilted to compromise a suit as thought fit by him
though contrary to the orders of the indemnifier. Marks: 2+ 0.5-
True
False
155. In bank guarantees the bank makes payment on: Marks: 2+ 0.5-
being convinced that the beneficiary has incurred loss
on being sued by the beneficiary.
on the guarantee being involked and after seeking concurrence of the debtor.
merely on demand by the beneficiary.
The Correct Answer is : merely on demand by the beneficiary.
156. In case of bank guarantees on behalf of companies that is in liquidation the
bank on invocation of the guarantee by the beneficiary.
must pay the amount to the Liquidator and not the beneficiary.
must depost the amount in the court to avoid any controversy.
must pay the beneficiary.
need not pay, since the bank quarantee lapses on the company being liqidated
The Correct Answer is : must pay the beneficiary.
157. In case of fraud committed by the debtor on whose behalf the bank.
need not pay the beneficiary.
has to pay the beneficiary.
direct the beneficiary to sue to debtor.
none of the above.
The Correct Answer is : has to pay the beneficiary.
158. A Letter of Credit is a form of guarantee given by Banks on behafl of its
customer. Marks: 2+ 0.5-
True
False
159. Letters of Credit are Bills of Exchange drawn by a seller on a buyer.
True
False
160. LCs are negotiable instruments. Marks: 2+ 0.5-
True
False
161. The Letter of Credit is opened on the request of Marks: 2+ 0.5-
Issuing bank
Applicant
Beneficiary
Confirming bank
The Correct Answer is : Applicant
162. The LC issuing bank is also called Marks: 2+ 0.5-
the importers bank or the opening bank
the advising bank or the confirming bank
the negotiating bank or the nominated bank
the reimbursement bank
The Correct Answer is : the importers bank or the opening bank
163. The right to receive payment under a letter of credit or the right to draw bills on
a Letter of Credit is vested in Marks: 2+ 0.5-
the opener of the LC
the issuing Bank only
the Buyer only
all the three parties
The Correct Answer is : the Buyer only
164. The advising banks responsibility is Marks: 2+ 0.5-
to inform the issuing bank as to whome to issue the letter of credit.
to advise the buyer the despatch of documents by the seller
to inform the beneficiary/seller about the letter of credit
None of the above
The Correct Answer is : to inform the beneficiary/seller about the letter of credit
165. The advising bank is also called the Marks: 2+ 0.5-
Confirming Bank
Notifying Bank
Reimbursing Bank
None of the above
The Correct Answer is : Notifying Bank
166. Negotiating bank is the bank which Marks: 2+ 0.5-
negotiates the preliminary contract of sale between the buyer and the seller
makes payment of the bills drawn by the seller and accepts the documents
guarantees payment by the issuing bank
None of the above
The Correct Answer is : makes payment of the bills drawn by the seller and
accepts the documents
167. When the LC specifies the Bank that is to negotiate the bills drawn under the LC
then the bank is also called Marks: 2+ 0.5-
Confirming Bank
Reimbursing Bank
Nominated Bank
None of the above
The Correct Answer is : Nominated Bank
168. The confirming bank is Marks: 2+ 0.5-
the issuing bank when it confirms the issue of the LC
the negotiating bank when it confirms the negotiation of the bills
the advising bank when it confirms the LC
None of the above
The Correct Answer is : the advising bank when it confirms the LC
169. When the confirming bank confirm the credit it Marks: 2+ 0.5-
does not take any liability
undertakes on its part the liability under the LC
undertakes to make timely of the documents and bills to the buyer or his bank
None of the above
The Correct Answer is : undertakes on its part the liability under the LC
170. Reimbursing Bank is the Bank Marks: 2+ 0.5-
that reimburses the seller
that reimburses the Negotiating/Paying or Confirming Bank
that reimburse the buyer on the goods being found defetive
None of the above
The Correct Answer is : that reimburses the Negotiating/Paying or Confirming
Bank
171. Ordinary Letter of Credit are usually _____, i.e, the bills drawn thereunder have
to be immediately. Marks: 2+ 0.5-
Sights credits
172. Letter of Credit under which usance bills can be drawn is called an ___
Acceptance credits
173. In a Revocable LC the credit can be amended or cancelled by the
issuing bank
174. Only ________ Letters of credit can be confirmed. Marks: 2+ 0.5-
irrvocable
175. Credit in which the beneficiary is not liable for the bills drawn thereunder is
________ credit Marks: 2+ 0.5-
without recourse
176. A back-to-back credit would involve at least ____ bank, viz., the ____ bank,
the _____ bank an dthe _____ bank. Marks: 2+ 0.5-
Three ; issuing , advising, third
177. All parties to a Letter of Credit transaction need to comply with the terms only
as far as practical and not strictly. Marks: 2+ 0.5-
True
False
The Correct Answer is : False
178. In case the documents submitted by seller do not comply with the Letter of
Credit then the same can be accepted subject to confirmation of buyer.
Marks: 2+ 0.5-
True
False
179. A Bill of Exchange is a document to title to goods. Marks: 2+ 0.5-
True
False
180. A Bill of Exchange is also called a 'bill' or a draft Marks: 2+ 0.5-
True
False
181. Invoice in a Letter of Credit transaction is a document similar to a quotation
based on which the buyer places his order. Marks: 2+ 0.5-
True
False
182. A Bill of Lading on a bona fide transfer confers on the transferee a right to the
goods. Marks: 2+ 0.5-
True
False
183. An Airway bill is also a document evidencing title to goods.
True
False
184. UCP 500 being law is enforceable and cannot be excluded by contract
True
False
185. A standby Letter of Credit is also a credit coming under UCP 500.
True
False
186. In a Letter of Credit transaction banks if required have to verify and heck the
condition of goods physically though the documents certify their equality.
Marks: 2+ 0.5-
True
False
187. All Letters of Credit are irrevocable unless specifically stated otherwise.
Marks: 2+ 0.5-
True
False
188. In a deferred payment guarantee, the guarantee is to ensure delivery of goods
Marks: 2+ 0.5-
True
False
The Correct Answer is : False Module : Module B Chapter : undefined
189. A deferred payment guarantee is mostly based on a primary contract between
the buyer and the seller. Marks: 2+ 0.5-
True
False
The Correct Answer is : True Module : Module B Chapter : undefined
190. A deferred payment guarantee differs from other kinds of guarantee issued by
banks as regards liability of the bank on invocation
True
False
191. In a deferred payment guarantee the banks liability comes into existence only if
all the instalments are not paid and not on the non-payment of any one instalment
by the customer. Marks: 2+ 0.5-
True
False
Module : Module B Chapter : undefined
192. Depending upon the place where the bills are made, they can be classified into
Marks: 2+ 0.5-
Inland Bills (no answer)
Foreign Bills
The Correct Answer is : Inland Bills (no answer)
193. Bills of exchange means a unconditional direction to the drawer to pay the
monies. Marks: 2+ 0.5-
True
False
194. The maker of the Bill is called ________ Marks: 2+ 0.5-
Drawer
195. Bill purchase facility is granted in the case of demand bill.
True
False
196. _______ facility is granted in the case of usance bills.
Bill Discounting
197. ________ of the bill is bound in case of dishonour of bill.
Drawer
198.Ownership of goods can be transferred by endorsement and delivery of -
Document of title to goods
199. In bills co-acceptance facillity the banker becomes a surety for the value of bill.
Marks: 2+ 0.5-
True
False
200. If money lent is more than Rs 100 on the security of land, then the mortgage
deed has to be registered. Marks: 2+ 0.5-
True
False
201. A mortgage deed need not be witnessed. Marks: 2+ 0.5-
True
False
202. Permission from Income Tax Authorities under Section 230 to create mortgage
is required only if the land belongs to a company.
True
False
203. Arrears of tax constitute a preferential charge on the property.
True
False
204. There are three types of shares - ordinary, equity and preference.
True
False
205. Debenture is a kind of share issued by a company and has no voting rights.
Marks: 2+ 0.5-
True
False
206. Borrower can create a valid pledge with documents of title of goods.
True
False
207. Bills of Lading, Dock Warrants, warehouse-keeper's certificate, etc,. are some
examples of documents of title of goods. Marks: 2+ 0.5-
True
False
208. Documents of title to goods are negotiable instruments.
True
False
209. Only LIC can issue life policies. Marks: 2+ 0.5-
True
False
210. Insurance contracts are contracts of absolute good faith.
True
False
211. An assignee of a life policy can sue in his own name. Marks: 2+ 0.5-
True
False
212. For a loan against Fixed Deposit Receipt, the stamp duty is very high. True
False
213. Supply bills are Bills of Exchange. Marks: 2+ 0.5-
True
False
214. Mortgage is __________ in the immoveable property.
Transfer of interest.
215. Simple mortgage is created by an instrument in writing.
True
False
216. Mortgage by deposit of title deeds is required to be registered.
True
False
217. In the case of Usufructuary mortgage the possession of the properties is given.
Marks: 2+ 0.5-
True
False
218. In mortgage by way of conditional sale the property is sold with a condition for
reconveyance. Marks: 2+ 0.5-
True
False
219. All successive mortgage created will rank equally and no mortgage will have no
priority over the other. Marks: 2+ 0.5-
True
False
220. To decide as to which mortgage will have priority over the other in the case of
two or more mortgages on the same immoveable property, the date of ________
mortgage is pertinent. Marks: 2+ 0.5-
Execution of
221. Limitation period for filling a suit for sale of mortgaged properties in ____ years
from the dater the mortgage debt becomes due.
Twelve
222. Mortgage suits are filed in Court within whose jurisdiction the mortgaged
resides. Marks: 2+ 0.5-
True
False
223. Pledge means ______________ of goods for purpose of securing a payment of
debt or performance of promise. Marks: 2+ 0.5-
Bailment
224. The most important characteristic of plede is ____ of goods.
Possession
225. Owner of goods can not make a pledge. Marks: 2+ 0.5-
True
False
226. Hypothecation is an implied pledge in cases where contructive possession of
goods is given. Marks: 2+ 0.5-
True
False
227. Hypothecation letter gives a banker right to possession of goods in the event of
default. Marks: 2+ 0.5-
True
false
228. Individual borrowers are governed by the ___________ Act.
Indian contract.
229.In a HinduUndivided Family the business of the fami8ly is managed by -
Karta
230. A company is ____ and _______ from its members. Marks: 2+ 0.5-
Separate and distinct.
231. A Private Limited Company has minimum ________ number of members and a
maximum of _____ numbers of members. Marks: 2+ 0.5-
2 , 50
232. A Public Limited Company shares are ___________ transferable.
Freely
233. Statutory Corporations are established by Acts of ________.
Parliament
234. Private Trusts are governed by the _______ Act. Marks: 2+ 0.5-
Indian Trust Act.
235. Trusts of Hindus are governed by the _______ Act. Marks: 2+ 0.5-
Religious and Charitable Endowments Act
236. Trusts of Muslims are governed by the _______ Act. Marks: 2+ 0.5-
Wakf
237. Cash Credit facility is a _________ Marks: 2+ 0.5-
Fund based facility
238. Bills co-acceptance facility is a __________. Marks: 2+ 0.5-
Non-Fund based facility
239. Banker is entitled to charge interest on temporary overdraft under -
Banking Custom
240. Limitation period for filing a suit in Term Loans is _________ years from the
date of default of installment. Marks: 2+ 0.5-
3 (Three)
241. Period of repayment in the case of medium-term loan is _________.
5-7 Years
242. Only personal security of the borrower is available in the case of _______
loans. Marks: 2+ 0.5-
Unsecured
243. Secured loans are normally secured by ___________. Marks: 2+
Pledge, hypothecation, mortgage or assignment of debts.
244. Pledge is _________ of goods as a security for debt. Marks: 2+ 0.5-
Bailment
245. Hypothecation is treated as _____ pledge. Marks: 2+ 0.5-
Constructive
246. Personal obligation of Mortgage is a distinct feature of ___________.
Mortgage by deposit of title deeds.
247. Section 58 of Partnership Act, 1932 provides for ________. Registration
of partnership.
248. A partner on behalf of firm institute a suit on contract, if the firm is registered.
Marks: 2+ 0.5-
True
False
249. Shares of public limited company are freely transferable.
True
False
250. Certificate of Incorporation is a document evidencing existence of company.
Marks: 2+ 0.5-
True
False
251. Certificate of commencement of business is required for private limited
company to start business. Marks: 2+ 0.5-
True
False
252. Charge means any form of ________ for ________ Marks: 2+ 0.5-
Security, debt
253. Charges created by company shall be registered with _________.
254. Under Companies Act a charge includes _______. Marks: 2+ 0.5-
Mortgage
255. Charge if not registered is not enforceable against company
True
False
256. Charge shall be registered within _________ days from the date of creation of
charge. Marks: 2+ 0.5-
30
257. Banks obtain security while lending so that in case of need the money can be
________ of securities. Marks: 2+ 0.5-
realized
Module : Module C Chapter : Chapter1
258. The SARFAESI Act is applicable to the housing finance companies whose names
are notified by the Central Governmnet . Marks: 2+ 0.5-
True
False
259. In Mardia Chemical Case the Supreme Court decided that condition of deposit of
amount is fully invalid. Marks: 2+ 0.5-
True
False
The Correct Answer is : True Module : Module C Chapter : Chapter1
260. After Mardia Chemical Case, the amendment made in the SARFAESI Act
stipulates deposit of _______ amount before preferring application to DRT.
50 per cent
261. Whether moveable securities in possession of the bank can be sold by the Bank
without intervention of the Court ? Marks: 2+ 0.5-
No. The Court order is required to sale the security.
Yes. Bank can sale as provided in the Contract ACt, 1872.
Yes. As the SARFAESI Act, 2002 has made provisions to that effect.
No. Till the account is not declared as NPA by the Bank.
The Correct Answer is : Yes. Bank can sale as provided in the Contract ACt, 1872.
262. As per the laws existing today the mortgaged security cannot be sold without
Court intervention. Is this correct ? Marks: 2+ 0.5-
Yes. Court intervention is required as per the provisions of the Transfer of
Properties Act.
No. SARFAESI Act, 2002 has now made enabling provisions.
Yes. Since the Contract Act has made no provision about any Court intervention.
No. Due to recent amendments in the Transfer of Property Act no Court
intervention is required.
The Correct Answer is : No. SARFAESI Act, 2002 has now made enabling
provisions.
263. Provisions of SARFAESI Act, 2002 apply to which securities ?
Any moveable or immoveable security charged to the bank or financial institution.
To mortgage securities only.
Where security interests are created for repayement of financial assistance given
by bank or financial institution.
To the properties owned by defaulter borrower but that area not charged to the
bank.
The Correct Answer is : Where security interests are created for repayement of
financial assistance given by bank or financial institution.
264. In Mardia case what the Supreme Court declared as invalid ?
Entire SARFAESI Act, 2002.
Creation of security interest.
Formation of Reconstruction Companies.
Condition to pay 75 per cent of the amount as pre-condition while preferring
appeal to the DRT.
The Correct Answer is : Condition to pay 75 per cent of the amount as pre-
condition while preferring appeal to the DRT.
265. The SARFAESI Act is applicable to pledge securities also.
True
False
The Correct Answer is : False Module : Module C Chapter : Chapter2
266. For enforcement of mortgage security court intervention is required even for
action under SARFAESI Act. Marks: 2+ 0.5-
True
False
267. Banks and Financial Institutes can issue notice for enforcement over security
under SARFAESI Act only if these securities are not_____ creditor and only when the
account is classified as _____ Marks: 2+ 0.5-
in possession
The Correct Answer is : in possession
268. If the borrower does not pay within _______ days after notice by the secured
creditor the creditor can ____ of the security. Marks: 2+ 0.5-
60, take possession
269. After receipt of notice from the secured creditor for repayment of dues by the
borrower, the borrower is legally prevented from transferring his property in any
way. Marks: 2+ 0.5-
True False
270. On request of the secured creditor the District Magistrate or the Chief Judical
Magistrate can take possession of the security for handing over it to the creditor.
Marks: 2+ 0.5-
True False
271. When the management of the company is taken over by the secured creditor,
the directors of such company are entitled to compensation for loss of office.
Marks: 2+ 0.5-
True False
272. When any bank or financial institution creates a charge against property, with
which authority the transaction will have to be registered under the SARFAESI Act,
2002? Marks: 2+ 0.5-
With the Central Registry.
With the ROC.
With the Registrar of Assurances within whose jurisdiction the property lies.
With the Reserve Bank of India.
The Correct Answer is : With the Central Registry.
273. When the provisions of SARFAESI Act, 2002 can be invoked for proceeding
against the charged property? Marks: 2+ 0.5-
When the bank feels that it is necessary for the recovery at any time.
When the RBI directs to do so.
When there is default in repayment by the borrower.
When there is default in repayment and the bank declares the account as NPA.
The Correct Answer is : When there is default in repayment and the bank declares
the account as NPA.
274. Whether existing or future receivables are property? Marks: 2+ 0.5-
Yes.
No.
Yes, but if and when charged to the lender.
No, if hypothecated to the lender.
The Correct Answer is : Yes. Module : Module C Chapter : Chapter2
275. From the following which function is of securitisation company?
Acquisition of loan transaction from the lender.
Help the lender in recovery by sale of charged property.
Take legal steps against the defaulter borrower on behalf of the lender.
Acquisition of financial assest from the originator.
The Correct Answer is : Acquisition of financial assest from the originator.
276. Securitisation company or reconstruction company needs registration from RBI
for commencement of business. Marks: 2+ 0.5-
True False
277. Right of acquisition of finanical asset by Securitisation company or
reconstruction company is subject to the prior agreements or contracts about the
asset. Marks: 2+ 0.5-
True False
278. Acquisition of financial asset by securitisation company or reconstruction
company is with the liability also over such asset.
True False
279. Which are the four documents involved in the securitisation transaction?
Marks: 2+ 0.5-
offer document, debenture, agreement and security receipt
280. For each asset acquired or to be acquired by the Securitisation company or
reconstruction company there should be _______ scheme.
separate
The Correct Answer is : separate Module : Module C Chapter : Chapter3
281. When the securitisation company or reconstruction company issues security
receipts, the holder therof is entitled to an _______ in the financial asset.
Marks: 2+ 0.5-
undivided interest
282. The security receipt issued by the securitisation company or reconstruction
company require registration. Marks: 2+ 0.5-
True False
283. Any direction issued by the RBI under SARFAESI Act has _____ effect and is
________ on the parties concerned. Marks: 2+ 0.5-
statutory, binding
284. After application of SARFAESI Act what existing companies have to do about
registration with RBI? Marks: 2+ 0.5-
They are automatically deemed to be registered.
They are required to stop functioning.
Existing companies do not require registration.
They have to get registered within six months from commencement of the Act.
The Correct Answer is : They have to get registered within six months from
commencement of the Act.
285. Which from amongest the following is a reason for cancellation of registration of
the Securitisation company and reconstruction company without giving hearing
opportunity? Marks: 2+ 0.5-
The company does not keep accounts as per RBI norms.
The company ceases to carry on the business of securitisation or reconstruction.
The company falls to hodl investment from qualities investor.
The company does not fulfill any of the conditions imposed at the time of
registration.
The Correct Answer is : The company ceases to carry on the business of
securitisation or reconstruction.
286. Asset reconstruction means ________ by any Securitisation company or or
reconstruction company of any right or interest of the creditor in any________.
Marks: 2+ 0.5-
acquisition, financial assistance
The Correct Answer is : acquisition, financial assistance
287. SARFAESI Act is applicable to Regional Rural Banks. Marks: 2+ 0.5-
True False
288. Mortgage or asset backed debt instruments can be issued by the Securitisation
company or reconstrcution company to the general public.
True False
289. A guarantor to the loan is within the meaning of the word borrower under
SARFAESI Act. Marks: 2+ 0.5-
True False
290. SARFAESI Act is applicable only when there is security.
True
False
291. Has SARFAESI Act defined hypothecation and whether the Act is applicable to
hypothecation security? Marks: 2+ 0.5-
True False
292. On giving default notice by the creditor, the borrower gives a reply to it. what
the creditor should do? Marks: 2+ 0.5-
Ignore the notice as the law does not provide for any reply option to the bank.
Wait till the borrower initiates any legal action based on his reply.
Give due consideration case by the Supreme Court and reply to it.
Take the matter before DRT for resolving issues raised in reply.
The Correct Answer is : Give due consideration case by the Supreme Court and
reply to it.
Module : Module C
Chapter : Chapter4
293. On sale of security asset, the sale proceeds are appropriated firstly.
Towards satisfaction of dues of secured creditor.
Towards payment of dues of labour.
Towards payment of cost, charges and expenses for preservation and protection
of securities, insurance premiums, etc
Towards payment of legal costs incurred by the creditor for taking possession and
for effecting sale.
The Correct Answer is : Towards payment of cost, charges and expenses for
preservation and protection of securities, insurance premiums, etc
294. After coming into operation the provision relating to central registry the banks
and financial institutes will have to register all security interest created in the asset.
Marks: 2+ 0.5-
True
False
295. The period stipulated in the Act for filing details of security interest is ___ days.
Marks: 2+ 0.5-
30
296. Duty to report satisfaction of charge to the central registrar is on creditor or on
the borrower?_______ Marks: 2+ 0.5-
creditor
297. Besides the SARFAESI Act some other laws require some registration of charge
created in the property. if such double registration is avoidable? Yes, the
creditor can choose under which law he needs registration.
No. registration under SARFAESI Act as well as any other applicable law will have
to be made as SARFAESI Act is not substitution of any other law.
Yes, if one charge noting is by a registered document.
No, as the Civil Courts and DRT still have jurisdiction against the properties both
registration are required.
The Correct Answer is : No. registration under SARFAESI Act as well as any other
applicable law will have to be made as SARFAESI Act is not substitution of any other
law.
298. Is there any punishment provided in the Act for not following RBI directions?
Marks: 2+ 0.5-
Yes,
Module : Module C Chapter : undefined
299. Can the Honorary Magistrate take cognizance of offcence under SARFAESI Act?
Marks: 2+ 0.5-
No
300. Whether breach of RBI directives is punishable offence and to what extent?
Marks: 2+ 0.5-
Yes, fine up to five lakh rupees and for continuation of offence per day fine up to
rupees ten thousand.
Yes, by cancellation of licences of the company.
No, these are the administrative directions.
No, the Act has not provided for any punishment in specifc.
The Correct Answer is : Yes, fine up to five lakh rupees and for continuation of
offence per day fine up to rupees ten thousand.
301. For challenging action initiated by seured creditor against the defaulter
borrower under SARFAESI Act, the borrower can go to the Civil Court for injunction.
Marks: 2+ 0.5-
True
False
The Correct Answer is : False Module : Module C Chapter : undefined
302. Can the bank take action under SARFAESI Act against a deposit under lien with
it Marks: 2+ 0.5-
Yes
No
The Correct Answer is : No Module : Module C Chapter : undefined
303. Are hire-purchase and lease contracts covered under SARFAESI Act? Yes
No
304. After Bank's notice a defaulter borrower has paid within 60 days substantial
amount and present dues are Rs 1 lakh which are 15% of the claimed amount. Can
bank proceed to take possession of the security? Yes
No
305. If on some point the provisions of Transfer of Property Act and SARFAESI Act
are different, which Act will prevail? Marks: 2+ 0.5-
SARFAESI Act
The Correct Answer is : SARFAESI Act
306. Can a bank proceed to take possession of the security after four years of cause
of action? Marks: 2+ 0.5-
Yes
No
307. Provision of SARFAESI Act are applicable to which of the following? Pledges
goods.
Only mortgaged properties.
Securities that are not otherwise charged to the creditors.
Securities charged to creditors and not in possession of the creditor.
The Correct Answer is : Securities charged to creditors and not in possession of
the creditor.
308. when the Rules, framed by the Central Government, under the Act get validity?
Marks: 2+ 0.5-
After the Appellate Tribunal of DRt approves them.
On Supreme Court approving the same.
Immediately on framing of the Rules by the government and notifying the same.
When the both the houes of Parliament approve the Rule so framed.
The Correct Answer is : When the both the houes of Parliament approve the Rule
so framed.
309. Disputes amongest two banks can be taken up before the Banking Ombudsman.
Marks: 2+ 0.5-
True False
The Correct Answer is : True Module : Module C Chapter : undefined
310. Cooperative banks are not covered by the Banking Ombudsman Scheme.
Marks: 2+ 0.5-
True False
311. Banking Ombudsman is appointed by a committee of Supreme Court Judges.
Marks: 2+ 0.5-
True False
312. It is not within the powers of Banking Ombudsman to deal with the complaint
unless both parties agree for his intervention. Marks: 2+ 0.5-
True False
313. If parties to the dispute agree Banking Ombudsman cen function as Arbitrator.
Marks: 2+ 0.5-
True
False
314. What is the object of introducting the Banking Ombudsman Scheme, 2002?
Marks: 2+ 0.5-
For effective monitoring of NPA accounts in the banks.
It is RBI agency to regulate the disputes amongst the banks.
To enable resolution of complaints relating to banking services.
For executing the orders passed by DRT.
The Correct Answer is : To enable resolution of complaints relating to banking
services.
315. Can the Banking Ombudsman undertake any other work than of his office?
Marks: 2+ 0.5-
Yes, as the appointment of Banking Ombudsman is honorary.
Yes, if RBI permits can undertake honorary work.
No.
Yes, if the Banking Ombudsman can handle both the jobs property.
The Correct Answer is : Yes, if RBI permits can undertake honorary work.
316. Can the Banking Ombudsman resolve the dispute between banks or between
bank and its customer by artitration reference? Marks: 2+ 0.5-
No, the Banking Ombudsman has no arbitral powers.
Yes, if Banking Ombudsman himself feels and decides to so.
No, as the Banking Ombudsman has no powers of Civil Court.
Yes, if both the parties to the complaint agree for the same.
The Correct Answer is : Yes, if both the parties to the complaint agree for the
same.
317. Bank can refuse acceptance of small denomination notes from the customer
and, therefore, on this ground there cannot be a complaint to Banking Ombudsman.l
Marks: 2+ 0.5-
True False
318. On valid grounds bank can refuse opening new account on this ground
complaint before the Banking Ombudsman is maintainable.
True False
319. Can a prospective borrower go before the Banking Ombudsman for non-
sanction of his loan by the bank. Marks: 2+ 0.5-
Yes
No
320. Banking Ombudsman has powers to call any information and certified copies
from bank when he is dealing with the complaint. Marks: 2+ 0.5-
Yes
No
The Correct Answer is : Yes Module : Module C Chapter : undefined
321. For setting the complaint Banking Ombudsman is bound by legal rules of
evidence. Marks: 2+ 0.5-
True False
322. What is the maximum amount the Banking Ombudsman can award as
compnesation. Marks: 2+ 0.5-
Rs 10 lakh
The Correct Answer is : Rs 10 lakh Module : Module C Chapter : undefined
323. Limitation period for filling of the review application against the award given by
the Banking Ombudman is _________ month/s. Marks: 2+ 0.5-
One
324. For dealing with the review application against the award passed by the
Banking Ombudsman_________ is the review authority. Marks: 2+
Reserve Bank of India.
325. Can a customer from whose account fraudulently someone has withdrawn
money make complaint before the Banking Ombudsman?
No, as the offence committed is of criminal nature FIR with police has to be filed.
Yes, but if the police authoirities who have received FIR permit filing of complaint
with Ombudsman.
Yes, as this aspect comes under the powers of Banking Ombudsman.
No, as the loss caused to the customer is of a civil nature for recovery, civil suit is
required to be filed.
The Correct Answer is : Yes, as this aspect comes under the powers of Banking
Ombudsman.
326. Banking Ombudsman can act as arbitrator if the value of the claim in the
dispute is less than Rs _______ Marks: 2+ 0.5-
Rs 10 lakh
327. For agreeing to refer the matter to the Banking Ombudsman as arbitrator
parties to the dispute are required to give____. Marks: 2+ 0.5-
affidavit of undertaking
328. The complainant is required to produce his documents in support of his claim
only at the time of hearing of the case. Marks: 2+ 0.5-
True False
329. Oppositte party to the dispute has to file a new claim if there is any counter
claim from his side. Marks: 2+ 0.5-
True False
330. Before dealing with the case the Banking Ombudsman has to draw up a
document defining________. Marks: 2+ 0.5-
Terms of Reference
331. Once the dispute before the Banking Ombudsman is referred to arbitration can
new claim or counterclaim be made? Marks: 2+ 0.5-
No, as the reference on the issues has already been made.
Yes, provided the claim and counterclaim are within the terms of reference.
Yes, provided additional stamp duty is paid thereon.
No, because arbitration is by mutual consent so stage of claim and counterclaim
does not arise.
The Correct Answer is : Yes, provided the claim and counterclaim are Module :
Module C Chapter : undefined
332. DRT Act is applicable only if the debt recoverable is above Rs__________.
Marks: 2+ 0.5-
Rs 10 lakh
333. The debt recoverable through DRT may be secured or unsecured. True
False
334. Overdrawn amount in an account is not a debt recoverable under DRT Act.
True False
335. If a Civil Court has passed a decree it has to be executed through that court
only and cannot come to Recovery Tribunal Marks: 2+ 0.5-
True False
336. A Bank has allowed a current A/c holder ad hoc overdraft of Rs 15 lakh. The
amount is due. whether this is recoverable under provisions of DRT Act?
No, as it is not a regular loan.
No, as only secured loans can be recovered under the DRT Act.
Yes, as it is a legally recoverable amount by the Bank.
Yes, but if the tribunal grants special permission to lodge the case.
The Correct Answer is : Yes, as it is a legally recoverable amount by the Bank.
337. Debt Recovery Tribunals are established by _______ Marks: 2+ 0.5-
Central Government
338. Debt Recovery Tribunals consist benches of three persons.
True False
339. Jurisdiction of Appellate Tribunal is with the respective High Courts. True
False
340. Can the order of Central Government appointing Presiding Officer of the
Tribunal be challenged in any Court? Marks: 2+ 0.5-
Yes, before the Appellate Tribunal.
No.
No, unless the High Court permits for it
Yes, under Constitution Article 226 before the High Court.
The Correct Answer is : No. Module : Module C Chapter : undefined
341. A decree passed by the foreign court can be executed by the Tribunal True
False
342. For reasons the Chairperson of the Appellate Tribunal can transfer any case
from one Tribunal to other Tribunal within his jurisdiction.
True False
343. For the matters of which the Tribunals are empowered the Civil Courts have no
jurisdiction. Marks: 2+ 0.5-
True False
344. When a civil suit filed in Civil Court is transferred to DRT, if fresh court fee is
required to be paid? Marks: 2+ 0.5-
No
Yes, as the authorities are different.
No, if there is no counterclaim.
Yes, as the court fee stamps are different.
345. DRT jurisdiction for a bank is where the head office of the bank is located.
Marks: 2+ 0.5-
True False
346. If a bank has filed recovery application, other bank can join the application if
the defendants are same. Marks: 2+ 0.5-
True False
347. When a case get transferred from Civil Court to tribunal fresh court fee is
required to be paid. Marks: 2+ 0.5-
True False
348. A counterclaim filed before DRT has the same effect as a _______. plaint
in cross-suit
349. Since DRT is not a Civil Court it cannot pass interim orders such as attachment,
injunction, receiver, etc. Marks: 2+ 0.5-
True False
350. A person who has to file appeal before the Appellate Tribunal has to pay
Marks: 2+ 0.5-
75 per cent of the debt ordered by the Tribunal.
351. While filling appeal before the appellate tribunal if any amount is required to be
depositted? Marks: 2+ 0.5-
No, amount is required to be deposited till the appellate tribunal decides.
Yes, Court fee on the appeal amount is required to be paid.
Yes, 75 per cent of the amount determined by the tribunal is required to be
deposited at the timing of filling of the appeal.
Yes, after admission of the appeal 75 per cent of the amount determined by the
tribunal is required to be deposited.
The Correct Answer is : Yes, 75 per cent of the amount determined by the tribunal
is required to be deposited at the timing of filling of the appeal.
352. Recovery Officers appointed under DRT Act can attach and sale movable as well
as immovable property of the person against whome order is passed even if the
property is not charged to the creditor.
True False
353. The defendant can raise a plea before the Recovery Officer about correctness of
the amount ordered to be paid. Marks: 2+ 0.5-
True False
354. If the recovery certificate has clerical or arithmetical mistake _______ can
correct the same. Marks: 2+ 0.5-
Preseding Officer of the Tribunal
355. For recovery the Recovery Officer can adopt the same methods as adopted for
recovery of income tax under the Income Tax Act. Marks: 2+
True False
356. Recovery Officer can aski the defendant to furnish by affidavit particulars of his
asset. Marks: 2+ 0.5-
True False
357. A company is under winding up process. Whether High Court permission is
required to a Bank to proceed against it before DRT?
No, as the DRT Act being a special Law having overriding effect over other laws.
Yes, as Companies Act specially provides to that effect.
Depends on the stage of winding up process.
No permission but concurrence of High Court required.
The Correct Answer is : No, as the DRT Act being a special Law having overriding
effect over other laws.
358. If the books of the bank are maintained in the electronic form, does all the
provisions of this Act are applicable to it. Marks: 2+ 0.5-
Yes
No
The Correct Answer is : Yes
359. Does this Act apply to any investigation or inquiry under the Criminal Procedure
Code? Marks: 2+ 0.5-
Yes
No
360. A certified copy of any entry in a Bankers' Books is received in legal proceeding
as ______ evidence for existence of such entry. Marks: 2+
prima facie
361. Unless the Court otherwise directs, bank offier cannot be compelled to
produce____ to prove any banker's book's contents when copy is produced.
Original books
362. In a civil suit to which bank is not a party has produced certified copy of books
of account. One party to the suit wants to call bank officer as witness to prove the
contents of copy. Can it be done? Marks: 2+ 0.5-
Yes, as it is right of the party to get it reaffirmed in evidence.
No, as the certified copy is a prima facie evidence that is admissible in evidence.
No, unless the bank volunteers to do so.
Yes, but if Court allows the application to call the witness.
The Correct Answer is : No, as the certified copy is a prima facie evidence that is
admissible in evidence.
363. Consumer Protection Act is enacted to protect the manufacturing conditions of
the Industries. Marks: 2+ 0.5-
True False
364. The agencies appointed under Consumer Protection Act are quasi-judicial in
nature. Marks: 2+ 0.5-
True False
365. Can a voluntary consumer association file a complaint on behalf of consumer.
Marks: 2+ 0.5-
Yes
No
366. A consumer has purchased goods for resale. Can he file complaint? Yes
No
367. 'A' has purchased a draft from a bank favouring 'B'. The draft is lost in transit
and for duplicate draft in lieu of first bank need some formalities to be completed
by'A'. Can 'B' file a consumer case against the formalities as at is delaying payment
to him. Marks: 2+ 0.5-
No, as he is not conusmer of the bank and is not taking any service from the
bank.
No, as he has not paid the demand draft commission.
Yes, as because of bank his payment is getting delayed.
Yes, his money is lying in the bank, he is deemed as account holder of the bank.
The Correct Answer is : No, as he is not conusmer of the bank and is not taking
any service from the bank.
368. Central Consumer Protection Council is the apex council having all India
Jurisdiction. Marks: 2+ 0.5-
True False
369. Minister in charge of consumer affairs in the Central Government is the
Chairman of Central Consumer Protection Council. Marks: 2+ 0.5-
True False
370. State Consumer Protection Council is appointed by Central Government
True False
371. State Consumber Protection Council has to meet at least ____ in a year.
Marks: 2+ 0.5-
Twice
372. Who is the Chairman of the Central Consumer Protection Council? Cheif
Justice of the Supreme Court.
Judge of the Supreme Court appointed by the Chief Justice of the Supreme Court.
Minister in charge of Law and Judiciary in the Central Government .
Minister in charge of consumer affairs in the Cenral Government
The Correct Answer is : Minister in charge of consumer affairs in the Cenral
Government
373. To appoint a person as President of District Forum, he must be qualified to be a
District Judge. Marks: 2+ 0.5-
True False
374. Appointment of District Forum is made by the High Court.
True False
375. Can few consumers file a representative complaint on behalf of general
consumers at large? Marks: 2+ 0.5-
Yes, but with permission of District Forum
376. As the agencies appointed for under the Act are quasi-judicial, they do not have
powers of Civil Court while conducting the case. Marks: 2+ 0.5-
True False
377. District Forum has passed order to pay compensation. How recovery of the
ordered amount is made? Marks: 2+ 0.5-
By filling execution in Civil Court.
By filling execution before District forum.
By filling civil Suit.
By referring the order toe collector for making recovery as if and revenue
recovery.
The Correct Answer is : By referring the order toe collector for making recovery as
if and revenue recovery.
378. A _________ is free when the parties to the contract agree to the same thing in
the same sense. Marks: 2+ 0.5-
consent
contract
agreement
The Correct Answer is : consent Module : Module D Chapter : Chapter1
379. A contract without _________ is void. Marks: 2+ 0.5-
cash
consideration
indemnity
guarantee
The Correct Answer is : consideration Module : Module D Cha. : Chapter1
380. A person who makes a proposal is known as _______. Marks: 2+
promisor
principal debtor
surety
guarantor
The Correct Answer is : promisor Module : Module D Chapter : Chapter1
381. A person is said to be competent to contract if ___________.
he is a major
he is of sound mind
he is a major and of sound mind
The Correct Answer is : he is a major and of sound mind
Module : Module D Chapter : Chapter1
382. A enters into an agreement with B to rob C and share money. B runs away with
all the moeny. A can suit against B to recover the money. True False
The Correct Answer is : False Module : Module D Chapter : Chapter1
383. Mr X (aged 17) can enter into an agreement with Mr Y (aged 25) to buy a car.
Marks: 2+ 0.5-
True False
384. A contract is concluded only when the party to whom the proposal is made,
accepts the proposal. Marks: 2+ 0.5-
True False
The Cor rect Answer is : True Module : Module D Chapter : Chapter1
385. Insurance policies are contracts in the nature of _____.
guarantee
plede
bailment
indemnity
The Correct Answer is : indemnity Module : Module D Chapter : Chapter2
386. There are ________ parties in a contract of indemnity. Marks: 2+
2
3
4
5
The Correct Answer is : 2 Module : Module D Chapter : Chapter2
387. A person who is indemnified can recover damages as well as costs for claming
the damages. Marks: 2+ 0.5-
True False
The Correct Answer is : True Module : Module D Chapter : Chapter2
388. In a contract of indemnity the indemnifier is primarily labile
True False
389. In a contract of guarantee the liability of the surety is secondary. True
False
390. Anything done for the benefit of the principal debtor, is a sufficient
consideration to the surety for giving the guarantee. Marks: 2+ 0.5-
True False
391. Where there are co-sureties, a release by the creditor of one of them does not
discharge the others. Marks: 2+ 0.5-
True False
392. Principal debtor need not pay the surety after the surety has paid to the
creditor. Marks: 2+ 0.5-
True False
393. Surety is also known as the __________. Marks: 2+ 0.5-
indemnifier
bailor
guarantor
bailee
The Correct Answer is : guarantor Module : Module D Chapter : Chapter3
394. Liability of the surety is ________ that of the principal debtor.
co-extensive with
primary to
secondary to
The Correct Answer is : co-extensive with
Module : Module D Chapter : Chapter3
395. Surety is _________ if the principal debtor is released by the creditor.
discharged
liable
The Correct Answer is : discharged Module : Module D Chapter : Chapter3
396. Guarantee obtained by _________ is invalid. Marks: 2+ 0.5-
misrepresentation
consent
agreement
contract
The Correct Answer is : misrepresentation Module : Module D Cha:Chap3
397. Bailor is a person who delivers his goods to the surety to enable him to give a
guarantee. Marks: 2+ 0.5-
True False
398. Bailee can use the goods given by the bailor, in the manner as he likes.
True False
399. The bailee can keep the goods bailed to him and he need not return the same
to the bailor. Marks: 2+ 0.5-
True False
400. Giving a product on rent for use to another person is a contract of bailment.
True False
401. If ornaments kept in the safe locker of bank is stolen in spite of due care by the
bank, the bani is liable to the depositor of ornaments. True
False
402. It is the obligation of the bailee to keep his goods separate from the goods of
the bailor. Marks: 2+ 0.5-
True False
403. The bailor is liable for any loss to the bailee if the goods bailed are defective
and the bailor knowingly does not disclose this fact to the bailee.
True False
404. If the bailee has rendered any service involving the exercise of labour or skill in
respect of the goods bailed to him, he has to right to retain such goods until the
receives due remuneration for the services the has rendered. Marks: 2+ 0.5-
True False
405. In a pledge the goods are delivered to be kept as security for a debt or
borrowing. Marks: 2+ 0.5-
True False
406. The pawnee can sell the goods if the pawnor fails to pay.
True False
407. The pawnee can sell the goods without giving notice to the pawnor.
True False
408. The pawnee can keep the goods even after the pawnor has paid the dues.
Marks: 2+ 0.5-
True False
409. Agent can be appointed by __________. Marks: 2+ 0.5-
express appointment
implication of law
ratification by principal
any of the three modes
The Correct Answer is : any of the three modes
Module : Module D Chapter : undefined
410. The usual form of contract of agency is by way of a _________.
power of attorney
indemnity bond
guarantee bond
The Correct Answer is : power of attorney
411. When a person by his words or conduct appoints someone as his agent it is
known as agency by ________. Marks: 2+ 0.5-
estoppel
promise
conduct
action
The Correct Answer is : estoppel Module : Module D Chapter : undefined
412. Consideration is the most essential element in any contract of agency. True
False
The Correct Answer is : False Module : Module D Chapter : undefined
413. A contract of agency is terminated if the agent does not wish to continue as
agent any more. Marks: 2+ 0.5-
True False
The Correct Answer is : True Module : Module D Chapter : undefined
414. An agent can have a lien on the goods of the principal for the dues payable by
the principal to the agent. Marks: 2+ 0.5-
True False
415. Minor can be a principal or an agent. Marks: 2+ 0.5-
True False
416. The principal has to indemnify the agent for all the lawful acts done by the
agent int he course of his duties. Marks: 2+ 0.5-
True False
417. ________means the consideration for a sale of goods.
Price
Lien
Delivery
Shares
The Correct Answer is : Price Module : Module D Chapter : undefined
418. Goods as defined under Sale of Goods Act does not include ________
actionable claims
shares
stock
grass
The Correct Answer is : actionable claims Module :D Chapter : undefined
419. ________ goods are to be manufactured/produced/acquired by the seller after
making of the contract of sale. Marks: 2+ 0.5-
Future
Specific
Moveable
Immoveable
The Correct Answer is : Future Module : Module D Chapter : undefined
420. __________ goods means goods identified and agreed upon at the time a
contract of sale is made. Marks: 2+ 0.5-
Future
Specific
Moveable
Immoveable
The Correct Answer is : Specific Module : Module D Chapter : undefined
421. _________ means voluntary transfer of posession from one person to another.
Delivery
Lien
Indemnity
suit
The Correct Answer is : Delivery Module : Module D Chapter : undefined
422. When the transfer of the property in the goods is to take place at a contract is
called ________. Marks: 2+ 0.5-
agreement to sell
contract of sale
conract of future goods
contract of specific goods
The Correct Answer is : agreement to sell
423. In ________ the ownership of goods is yet to pass from the seller to the buyer.
agreement to sell
contract of sale
contract of future goods
contract of specific goods
The Correct Answer is : agreement to sell
424. Shares are goods within the meaning of the Sale of Goods Act. True
False
425. Fixtures can be regarded as moveable goods only if they are intended to be
severed and sold separately. Marks: 2+ 0.5-
True False
426. If the stipulation agreed to between the parties is essential to the main purpose
of the contract then such a stipulation is known as a _________. condition
warranty
implied condition
guarantee
The Correct Answer is : condition Module : Module D Chapter : undefined
427. A ________ is a stipulation collateral to the main purpose of the contract.
condition
warranty
implied condition
guarantee
The Correct Answer is : warranty Module : Module D Chapter : undefined
428. There is an implied condition on the part of the seller that he has a right to
_________ the goods. Marks: 2+ 0.5-
use
sell
retain
resale
The Correct Answer is : sell Module : Module D Chapter : undefined
429. If the sale of goos is by ________ there is an impled condition that the goods
shall correspond with the desription. Marks: 2+ 0.5-
description
sample
oral agreement
written contract
The Correct Answer is : description Module : Module D Chapter: undefined
430. In every contract of sale it is impled that the seller has got the right to sell the
True False
431. An implied warranty as to quality or fitness for particular purpose may be
annexed by the usage of trade. Marks: 2+ 0.5-
True False
432. The seller of goods is deemed to be an unpaid seller when the ________ has
not been paid Marks: 2+ 0.5-
price
interest
damages
penalty
The Correct Answer is : price Module : Module D Chapter : undefined
433. There is no _____ as to the quality or fitness of goods for any particular
purpose. Marks: 2+ 0.5-
implied condition
implied warranty
express condition
express warranty
The Correct Answer is : implied condition
434. When the _______ is in possession of goods, a lien can be exercised. seller
buyer
agent of the buyer
carrier
The Correct Answer is : seller Module : Module D Chapter : undefined
435. _________ is terminated when the buyer gets the possession of the goods
lien
agreement
condition
warranty
The Correct Answer is : lien Module : Module D Chapter : undefined
436. When property in the goods has not passed to the buyer and the buyer
becomes insolvent before the price is paid, the seller can withhold the delivery of
True False
437. A seller who has accepted negotiable security as an abosolute payment is no
longer an unpaid seller. Marks: 2+ 0.5-
True False
438. If one partner cheats a customer of the partnership firm then all the partners of
the partnership firm are liable to compensate the customer. True
False
439. Registration of firms is compulsory under the Partnership Act. True
False
440. It is compulsorily to enter into a partnership deed. Marks: 2+ 0.5-
True False
441. The partners are free to decide their mutual rights and liabilities. True
False
442. A partnership deed can even provide that a particular partner would not take
part in the day-to-day business decision of the partnership firm. True False
443. Consent of all the partners is necessary to change the nature of business
carried on by the firm. Marks: 2+ 0.5-
True False
444. A partnership at will can be dissolved by notice. Marks: 2+ 0.5-
True False
445. Every partner has a right to receive remuneration` Marks: 2+ 0.5-
True False
446. It is necessary that all the partners in the partnership firm must receive equal
share of profit in the partnership firm. Marks: 2+ 0.5-
True False
447. No partner is entitled to use the partnership property for his private purposes.
True False
448. A single partner can be authorised to carry on business and sign documents on
behalf of the firm. Marks: 2+ 0.5-
True False
449. Every partner is liable jointly with all the other partners and also severally for
all acts of the firm done while he is a partner.
True False
450. A minor can be a partner in a partnership firm. Marks: 2+ 0.5-
True False
451. A minor can be admitted to the benefits of a partnership firm.
True False
452. A minor is personally liable like other partners to pay the debts of the firm.
True False
453. A minor who is admitted to the benefits of a partnership firm, has a choice
when he attains majority as to whether he wants to continue as a partner or not.
True False
454. The partners can mutually agree and dissolve the firm.
True False
455. On the death of a partner the partnership firm is compulsorily dissolved.
True False
456. A partner of an unregistered firm can file a suit against other partners to get his
share of profits. Marks: 2+ 0.5-
True False
457. It is compulsory for a person to hold qualification shares to get appointed as a
director in a private company. Marks: 2+ 0.5-
True False
458. Directors are the actual owners of a company Marks: 2+ 0.5-
True False
459. Private company can make a issue of shares by prospectus.
True False
460. A company has to be compulsorily registered under the Companies Act, 1956.
True False
461. A company cannot enter into contracts in its own name.
True False
462. If all the members of a company die, then the company has to be wound up.
(i.e. dissolved). Marks: 2+ 0.5-
True False
463. In case of a company limited by shares the creditors of the company can
recover the money from the members if the company is not making profits.
True False
464. A member cannot transfer shares in a public company without the consent of
other members. Marks: 2+ 0.5-
True False
465. The minimum number of members required in a private company is __
3
7
12
2
The Correct Answer is : 2 Module : Module D Chapter : undefined
466. The minimum number of members required in a public company is--
3
7
12
2
467. The maximum number of members in a private company can be _____.
7
12
50
2
468. The maximum number of members in a public company can be _____. any
number
12
50
51
The Correct Answer is : any number Module : D Chapter : undefined
469. A private company should have a minimum paid-up capital of Rupees _
five crore
five lakh
one crore
one lakh
The Correct Answer is : one lakh Module : Module D Chapter : undefined
470. A public company should have a minimum paid-up capital of Rupees __
five crore
five lakh
one crore
one lakh
The Correct Answer is : five lakh Module : Module D Chapter : undefined
471. In a government company the government holds at least_____ per cent.
12
15
50
51
472. In case of conflict between the Memorandum of Association and Articles of
Association, the Articles of Association prevails.
True False
473. Doctrine of ultra vires lays down that every outsider is assumed to have read
the Memorandum of Association and Articles of Association.
True False
474. Doctrine of constructive notice states that the outsiders are not required to see
the compliance of internal regulations of the company.
True False
475. Doctrine of indoor management lays down that a company cannot carry on the
objects not permitted by its Memorandum of Association.
True False
476. A minor can be a member of a private company but not of a public company.
True False
477. A member can inspect the register of members. Marks: 2+ 0.5-
True False
478. There are no remedies available for misstatements in prospectus by directors.
True False
479. The maximum number of directors in a private company can be _____
3
7
12
5
480. The maximum number of directors in a public company can be _____. 3
7
12
15
481. The minimum number of dirctors required in a public company is __
3
7
12
2
482. The minimum number of directors required in a private company is ___
3
7
12
2
483. At least _____. of the total number of directors of a public company are to be
persons whose periof of office is liable to determination by retirement by rotation.
Marks: 2+ 0.5-
2
7
two-third
The Correct Answer is : two-third Module : Module D Chapter : undefined
484. Every public company, or a private company which is a subsidiary of a public
company, having a paid-up share capital of Rupees _____ must have a managing or
whole-time director or a manager. Marks: 2+ 0.5-
five crore
five lakh
one crore
one lakh
The Correct Answer is : five crore Module : Module D Chapter : undefined
485. Additional directors are appointed by the ________. Marks: 2+ 0.5-
board of directors
promoters
underwriters
shareholders
The Correct Answer is : board of directors Module : D Chapter : undefined
486. Alternate directors are appointed by the _______. Marks: 2+ 0.5-
board of directors
promoters
underwriters
shareholders
The Correct Answer is : board of directors
487. Casual vacancies in the board of directors is filled in by the
board of directors
promoters
underwriters
shareholders
The Correct Answer is : board of directors
488. authorised person is an individual apointed by RBI to deal in foriehn exchange
True False
489. A current account tranaction alters the assets or liabilities outside india of
person resident in india Marks: 2+ 0.5-
True
False
490. A capital account transaction includes payment dur in connection with forighn
trade in the ordinary course of business Marks: 2+ 0.5-
True False
491. Foreign exchange includes traveller's cheques. Marks: 2+ 0.5-
True False
492. RBI can revoke any authorisation given to an authorised person.
True False
493. Civil Court is having jurisdiction to entertain any suit or proceeding in respect
ofa ny amtter under FEMA. Marks: 2+ 0.5-
True False
494. A person resident in India in the preceding in India for more than ________
days in the preceding financial year. Marks: 2+ 0.5-
180
182
60
62
495. An Aujudicating Authority can enquire contravention under FEMA only if a
complaint is filed by ________. Marks: 2+ 0.5-
RBI
High Court
Special Director (Appeals)
Central Government
The Correct Answer is : Central Government
496. Adjudicating Authority has to endeavour to dispose off the complaints within
________ from the date of receipt of the complaint.
one year
182 days
six months
four weeks
The Correct Answer is : one year Module : Module D Chapter : undefined
497. Any person aggrieved by an order of Adjudicating Authority can appeal to _
RBI
High Court
Special Director (Appeals)
Appellate Tribunal for Foreign Exchange
The Correct Answer is : Special Director (Appeals)
498. Transfer of Property Act basically contains provisions relating to transfer of
moveable property and goods. Marks: 2+ 0.5-
True False
499. Mortgage is a transfer of an interest in specific immoveable property to secure
the payment of money given by way of loan. Marks: 2+ 0.5-
True False
500. In a simple mortgage the mortgagor does not deliver possession of the
mortgaged property to the mortgagee. Marks: 2+ 0.5-
True False
501. In a mortgage by conditional sale the property is transferred the condition of
sale is that on default of payment of the mortgage-moeny on a certain date the sale
shall become absolute. Marks: 2+ 0.5-
True False
502. In a usufructuary mortgage the mortgagor delivers possession of the
mortgaged property to the mortgagee. Marks: 2+ 0.5-
True False
503. In an English mortgage the property is transferred absolutely by the mortgagor
to the mortagee with a conditionfor retransfer.
True False
504. In a morgage by deposit of title-deed the property given as a mortgage has to
be situated in notified towns. Marks: 2+ 0.5-
True False
505. A lease of from year to year or for any term exceeding one year can be made
by transfer of possession. Marks: 2+ 0.5-
True False
506. The debtor has to be given a notice of transfer of actionable claim.
True False
507. A lease for agricultural or manufacturing purpose can be terminated by the
lesor or lessee by giving _______ notice to one another.
six months 15 days
The Correct Answer is : six months Module : D Chapter : undefined
508. A Memorandum recording mortgage by deposit of title deeds does not require--
registration stamping
The Correct Answer is : registration Module : D Chapter : undefined
509. The essentials of valid equitable mortgage is debt, deposit of title deeds and
_________. Marks: 2+ 0.5-
Intention as security
intention of sale deposit
The Correct Answer is : Intention as security
510. In case of accession to the mortgaged property, where the mortgagee is in
possession of the mortgaged property, the mortgagee is __________ of the
accession. Marks: 2+ 0.5-
entitled not entitled
The Correct Answer is : entitled Module : Module D Chapter : undefined
511. A mortgagor, while lawfully in possession of the mortgaged property, shall have
_______ to make leases thereof. Marks: 2+ 0.5-
power no power
The Correct Answer is : power Module : Module D Chapter : undefined
512. The power of sale without intervention of the Court is given to the mortgagor in
the case of the following mortgage: Marks: 2+ 0.5-
Equitable mortgage
English mortgage
Simple mortgage
Usufructuary Mortgage
The Correct Answer is : English mortgage Module : D Chapter : undefined
513. A lease for agricultural or manufacturing purpose is deemed to be a lease
year to year
month to month
week to week
with infinite period
The Correct Answer is : year to year Module : D Chapter : undefined

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1. A public sector bank is a corporate created under a special statute.

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