Al-Arafah Islami Bank Limited

Agrabad Branch, Chittagong

Evaluation Test- General Banking Law & Practice
Total Marks-100
(Tick the right answer)
Time-75 Minutes

1. What is the present Authorized Capital, Equity of Al-Arafah Islami Bank Ltd.
a.
b.
c.
d.

Authorized Capital-Tk. 1500.00 crore, Paid Up Capital-Tk. 946.96 crore

Authorized Capital-Tk. 1700.00 crore, Paid Up Capital-Tk. 1017.27 crore
Authorized Capital-Tk. 1800.00 crore, Paid Up Capital-Tk. 1152.81 crore
Authorized Capital-Tk. 2000.00 crore, Paid Up Capital-Tk. 1210.11 crore

2. Which is the date of incorporation and functioning of Al-Arafah Islami Bank Limited

3.

4.

5.

6.

7.

a. 18th June 1995 and 27th September 1995

b. 10th June 1995 and 12th July 1995
c. 15th June 1995 and 26th August 1995
d. 21st June 1995 and 09th September 1995
. Who was the first and present Chairman of the Board of Directors of Al-Arafah Islami Bank Limited
Bank?
a. Mr. Anowar Hossain and Mr. Malek Molla
b. Mr. Malek Molla and Mr. Mejbah Uddin
c. Mr.A.Z.M. Shamsul Alam and Mr. Abdus Samad Labu
d. Mr. Abdus Samal Labu and Mr. Abdus Salam
What types of Monetary policy applied by Bangladesh Bank to increase/decrease money supply?
a. Bank rate
b. CRR & SLR
c. OMO (Open Market Operation) of Govt securities.
d. All of the above
What are the minimum & maximum limitation of members of a partnership firm?
a. There should be minimum 2 and maximum 20 members of a partnership firm.
b. There should be minimum 3 and maximum 25 members of a partnership firm.
c. There should be minimum 5 and maximum 30 members of a partnership firm.
d. There should be minimum 5 and maximum 20 members of a partnership firm.
What are the minimum & maximum limitation of members of a Company?
a. Minimum-5 and maximum 30 in a Private Limited Company. The Membership of a
Public Limited Company is determined by its shares, but minimum should be 5.
b. Minimum 2 and maximum 50 in a Private Limited Company. The Membership of a
Public Limited Company is determined by its shares, but minimum should be 7.
c. Minimum-7 and maximum 50 in a Private Limited Company. The Membership of a
Public Limited Company is determined by its shares, but minimum should be 20.
d. Minimum-12 and maximum 30 in a Private Limited Company. The Membership of a
Public Limited Company is determined by its shares, but minimum should be 30.
Write the definition of Islami Bank.
a. Bmjvgx evsK Ggb GKwU Avw_K cwZvb hv Zvi gwjK weavb I KgcwZi
mKj ZiB Bmjvgx kwiqZi YxwZgvjvK gb PjZ ecwiKi Ges KgKvi mKj
chvq my`K eRb KiZ `pcwZ|
b. Bmjvgx evsK njv Bmjvgx kwiqvn Ges evsjv`k evsKi bxwZgvjv Abyhvqx
cwiPvwjZ evswKs eev|
c. Bmjvgx evsK njv Bmjvgx kwiqvn Z_v-Avj& KviAvb, nvw`m, BRgv Ges wKqvmmn
AvRvwZK AvBb I bxwZgvjvi AvjvK cwiPvwjZ evswKs eev hvZ my`K
nvivg Kiv nqQ|
d. Bmjvgx evswKs eev njv m mKj AvBb I bxwZgvjvi mg^q hvZ evsjv`k
Bmjvgx dvDkb I miKvi KZK ^xKZ I Avek cvjbxq bxwZgvjv|

8.

9.

10.

11.

12.

13.

14.

15.

16.

17.

18.

How many types of Riba?

a. 2
b. 3
c. 4
d. 5
Which of the following is not the principle of Islamic Banking?
a. Prohibition of Interest
b. Profit and Loss Sharing
c. Shariah approved activities
d. Accepting Gharar
Under what principles Islami Bank mobilize resources?
a. Al-Wadiah Principles
b. Mudaraba Principles
c. a and b
d. b only
In the Negotiable Instrument Concept Negotiation Means
a. Valid
b. Transferable
c. Changeable
d. Visible
A negotiable instrument is.
a. A verbal promise to honor.
b. A written order promising to pay a sum of money
c. A prescription to hold a promise
d. An instruction to receive a certain sum of money
When a document becomes negotiable instrument?
a. Contains an conditional promise to pay money
b. Is payable to a bearer or payable on demand
c. Contains an unconditional promise to pay money
d. when it contains signature of the drawer
CRR and SLR stands for what?
a. Current Reserve Ratio and Small Liquidity Ratio
b. Cash Reserve Ratio and Statutory Liquidity Ratio
c. Cash Reserve Ratio and Statutory Leverage Ratio
d. Current Regulatory Reserve and Static Liquidity Reserve
Which one is not the types of negotiable instrument?
a. Cheque, Bank Notes and Dividend Warrents.
b. Cheque, Pay Slip and Promissory Note
c. Cheque, Promissory Note and Bill of Exchange
d. Promissory Note, Cheque and Circular Notes
A cheque is a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than
on demand.
a. True
b. False
Which of the following is not a nature of a cheque
a. Unconditional Order
b. Always payable on demand
c. Conditional Order
d. Always drawn on specified bank
How many parties are there in a cheque?
a. 2
b. 3
c. 4
d. 5

19. What is stands for MICR

a. Magical Inter Character Recognition
b. Magnetic Ink Character Recognition
c. Managerial Instrument Cheque Record
d. Magnetic Instruction Cheque Receipt
20. Which of the following is not a type of cheque?
a. Bearer Cheque
b. Stale Cheque
c. Order Cheque
d. Definite Cheque
21. What are the types of endorsement?
a. 4
b. 5
c. 6
d. 7
22. RTGS stands for
a. Risk Time Gross Settlement
b. Real Time Gross Settlement
c. Reserve Time Gross Settlement
d. Rush Time Gross Settlement
23. BATCH means
a. Bank Automated Clearing House
b. Bank Automated Checking House
c. Bangladesh Automated Clearing House
d. Bank Authorized Clearing House
24. What are the types of crossing?
a. General Crossing
b. Special Crossing
c. Effective Crossing
d. Both a and b
e. Only c
25. What do mean by BEFTN?
a. Bank Effective Fund Transaction Network.
b. Bank Electronic Fund Transfer Network
c. Bangladesh Electronic Fund Transfer Network
d. Bangladesh Effective Fund Transaction Network
26. How much initial deposit requires to open an Al-Wadiah Current Account in AIBL?
a. Tk. 1000.00
b. Tk. 2000.00
c. Tk. 5000.00
d. Tk. 10000.00
27. A customer desires to open an ITD account with your branch for 5 years. Upto what amount he/she could
open the account
a. Up to Tk. 1000 per month
b. Up to Tk. 5000 per month
c. Up to Tk. 20000 per month
d. Up to Tk. 50000 per month
28. A customer desires to open MSD with your branch what essential documents he//she has to submit to open
the account?
a. 2 recent Passport size photograph
b. NID/Passport/Driving License
c. TIN Certificate (If any)
d. All of the above

29. What do you mean by KYC?

a. Know Your Customer
b. Knowledge Your Customer
c. Know Your Character
d. Know Your Customs
30. The operation of savings accounts will be stopped in which of the following:
a. On receipt of death of a customer
b. On receipt of notice of insanity of customer
c. On being advised that the customer is insolvent
d. All of the above
31. Mr. A and Mr. B deposited Tk. 10.00 lac with your bank in the form of MTDR for 12 months with an
instruction to be operated jointly. Mr. A dies in a car accident before the maturity of the MTDR. What will
happena. Mr. B will continue the deposit till maturity
b. Mr. B will withdraw the money lonely
c. The amount will be payable to Mr. B and legal hairs of Mr. A jointly
d. None of the above
32. Deposit received by the banks which is withdraw able on demand is called .
a. Savings Deposit
b. Current Deposit
c. Demand Deposit
d. Term Deposit
33. A deposit received by the banks for a fixed period withdraw able only after the expiry of the fixed period
and include deposits such as Recurring/Double Benefit Deposits/Short Deposits/Fixed Deposits/Monthly
Income Certificate /Quarterly Income Certificates is called.
a. Savings Deposit
b. Current Deposit
c. Demand Deposit
d. Term Deposit
34. Right to set off is the right of .. . .
a. Customer
b. Banker
c. Regulator
d. Gaurantor
35. Mrs. Joya Deposited a cheque for Tk. 3,00,000.00 for collection drawn on One Bank Limited, Agrabad
Branch, Chittagong to her account no. 0051120051207 with AIBL, Agrabad Branch, Chittagong. In the
transaction the relationship between Mrs. Joya and AIBL, Agrabad Branch is.
a. Debtor-Creditor
b. Principal-Agent
c. Lessor-Lessee
d. Indemnifier-Indemnified
36. Mr. Joynal Abedin, an account holder of AIBL, Agrabad Branch, Chittagong keeps some ornaments to his
bank for safe-keeping, the relationship between the customer and the bank is..
a. Creditor-Debtor
b. Principal-Agent
c. Beneficiary-Trustee
d. Lesee-Lessor
37. Any person under the age of .. years is a minor.
a. 21
b. 19
c. 18
d. 24

38. Which one is not correct?

a. A contract with or by a lunatic is void.
b. When a customer who is drunk presents a cheque across a counter the payment must not be witnessed.
c. If a court appoints a guardian and the minor is below 18 years the majority extends upto 21 years.
d. The minor can be a partner but cannot be held liable for the liabilities of the partnership.
39. Which one is correct- While opening a joint account the account opening form should be signed by
a. Only account operators should signed
b. All account holders should signed
c. Only one person is allowed to sign
d. None of the above
40. The introducer is responsible for establishing the identity of the account holder and is not responsible for
any loss or fraud committed by the account holder unless he is involved in fraud.
a. True
b. False
41. Mrs. Anisa Rahman is maintaining a locker with a bank to deposit her valuable ornaments and she is
regularly paying her locker charges as per banks regulation. The relationship between Mrs. Anisa Rahman
and the Bank is..
a. Debtor-Creditor
b. Principal-Agent
c. Lessor-Lessee
d. Bailee-Bailor
42. BACPS stands for what?
a. Bangladesh Automated Cheque Processing System.
b. Banks Automatic Clearing Processing System
c. Bank Automatic Cheque Payment System
d. Bangladesh Automatic Cheque Payment System
43. A valuable customer of the bank maintaining a current account and also an ITD account for Tk. 5000.00
per month for 5 years. He has given a standing instruction to his bankers to debit his current account and
deposit the installment to his ITD account monthly. The relationship between the customer and the bank
is.
a. Bailor-Bailee
b. Agent-Principal
c. Trustee-Beneficiary
d. Creditor-Debtor
44. has been defined as the right of a creditor to retain the possession of the goods and securities
owned by the debtor until the debt paid.
a. Set-off
b. Right-off
c. Lien
d. Attachment
45. A dry cleaner washes a cloth of a customer for Tk. 10.00. The dry cleaner gets the right to retain only
goods or securities for which the dues have arisen. This type of obligation is called..
a. General Lien
b. Particular Lien
c. Assignment
d. Mortgage
46. A customer is maintaining a current account with a bank branch as well as having credit facilities from the
bank for Tk. 5,00,000.00. The investment facilities become overdue for long. Once the customer came to
the bank and having a discussion session with the manager. When the customer left from the branch, he left
a bag mistakenly and there were an amount of Tk. 10,00,000.00. Whether the bank is allowed to adjust the
customers due or not.
a. Yes
b. No

47. 50 persons of a social group want to open a joint Mudaraba Savings account operate by any 5 of them.
Should bank open the account?
a. Yes
b. No
48. In case of Joint Mudaraba Term Deposit for 3 months in the name of A and B with an instruction to Either
or Survivor, A wants premature payment be made to him as it is payable to either or survivor. Should
bank pay to A alone before due date?
a. Yes
b. No
49. In case of Joint Mudaraba Term Deposit Receipt for 6 months in the name of A and B with an instruction
to Former or Survivor, B wants payment made to him on due date as it is to Former or Survivor. Is bank
right if bank pays to B on due date?
a. Yes
b. No
50. An illiterate women came to the bank and wishes to open an account with your branch to deposit some
money and sale proceeds of her land. You are allowed to open an account in the name of the women with a
thumb impression witnessed by a literate person who should read out and explain the contents of account
opening form. The women must have to put thumb impression on which hand?
a. Left
b. Right
c. Both hand
d. Ring Finger
51. Under what condition a Minor can be a nominee?
a. He/She should be first blood of the account holder
b. Name of a major must be given to receive money during minority of the minor
c. The signature of the minor must be verified by the account holder
d. The minor must be present at the time of opening the account.
52. ATM stands for what?
a. Automatic Teller Mechanism
b. Automatic Teller Machine
c. Automated Teller Machine
d. Automated Tele Machine
53. EFT stands for what?
a. Effective Financial Transaction
b. Electronic Financial Transaction
c. Electronic Fund Transfer
d. Emergency Fund Transfer
54. SWIFT stand for what?
a. Soviet World Immune Financial Transaction
b. Severe Wild Infusion Financial Transaction
c. Society for Worldwide Interbank Financial Transaction
d. Society for Worldwide Interbank Financial Telecommunication.
55. Which of the following is called anywhere anytime banking?
a. Telephone banking
b. Mobile banking
c. Internet Banking
d. All of the above
56. SMS Banking is a kind of
a. Mobile Banking
b. Internet Banking
c. Tele Banking
d. Web Banking

57. What is the present Bank Rate?

a. 4%
b. 5%
c. 6%
d. 7%
58. What is the CRR rate for Islamic Banks operating in Bangladesh?
a. 5% on by weekly average basis of the average total demand and time liabilities (ATDTL) with a
provision of minimum 4.5% on daily basis of ATDTL
b. 5.5% on by weekly average basis of the average total demand and time liabilities (ATDTL) with a
provision of minimum 5% on daily basis of ATDTL
c. 6% on by weekly average basis of the average total demand and time liabilities (ATDTL) with a
provision of minimum 5.5% on daily basis of ATDTL
d. 6.5% on by weekly average basis of the average total demand and time liabilities (ATDTL) with a
provision of minimum 6% on daily basis of ATDTL
59. What is the SLR rate for conventional Banks operating in Bangladesh?
a. 20% including the CRR
b. 19% including the CRR
c. 18% including the CRR
d. 19.5% including the CRR
60. What are the chronological stages of Money Laundering?
a. Layering, Placement and Integration
b. Integration, Layering and Placement
c. Placement, Integration and Layering
d. Placement, Layering and Integration
61. CTR is reported for transactiona. Above Tk. 5 lac
b. Above Tk. 7 lac
c. Above Tk. 10 lac
d. Above Tk. 15 lac
62. For which amount the STR to be done if the transaction is suspicious?
a. Below 5.00 lac
b. Above 5.00 lac
c. Below 10.00 lac
d. Any amount
63. A customer is opened an MTDR account for Tk. 10,00,000.00 for 6 moths @ 7% p.a. (Provisional) on 2105-2016. On urgency he desires to close his account before maturity on 10-06-2016. Whether you will pay
any profit on this account or not. If yes, how much? (Banks present savings rate is @4%)
a. Yes, Tk. 3888.89
b. Yes, Tk. 1999.80
c. Yes, Tk. 2222.00
d. No
64. Which one is not correct in case of Dormant Account
a. The accounts have no credit or debit other than crediting a periodic profit/interest or debiting service
charges for more than one year is called dormant account.
b. According to Bangladesh Bank Circular in which account KYC procedures has not completed will
treated as Dormant Account.
c. Farmers accounts opened with Tk. 10 cannot be made dormant.
d. In the Dormant account money should be deposit with the Central till the claim from the customer.
65. A customer wishes to issue a Payment Order for Tk. 1000.00 in favor of Deputy Commissioner of Taxes,
Chittagong. According to charge schedule of the bank how much charges he has to pay?
a. Tk. 20 + @15% VAT
b. Tk. 15+@15%VAT
c. Tk. 100+@15%VAT
d. Com @10%+@15%VAT

66. Post dated cheque meansa. Previous dated cheque

b. Future dated cheque
c. Cheque without date
d. None
67. CTR meansa. Current Transaction Report
b. Correct Transaction Report
c. Cash Transaction Report
d. All of the above
68. Which one indicates special crossing?
a. AIBL, Agrabad Branch, Chittagong
b. Not Negotiable
c. Not Acceptable
d. None
69. By customs and uses validity period of a cheque isa. One week
b. One month
c. Six month
d. One year
70. Good for payment-cheque meansa. Payment will be made on presentation
b. Fund is available
c. The cheque is good
d. Drawer has enough money
71. Negotiable Instrument Act related with yeara. 1981
b. 1881
c. 1991
d. 2001
72. In Mudaraba Principle Profit is shareda. As per capital ratio
b. Lump sum basis
c. As per pre-agreed ratio
d. None of the above
73. Mutilated cheque meansa. Torn out cheque
b. Rejected cheque
c. Disclosed cheque
d. Blank cheque
74. BAMLCO meansa. Bangladesh Mobile License Company
b. British American Law Company
c. Branch Anti Money Laundering Compliance Officer
d. None of the above
75. MDS stands fora. Mudaraba Deposit Scheme
b. Mudaraba Millionaire Deposit Scheme
c. Mudaraba Lakhpoti Deposit Scheme
d. Mudaraba kotipoti Deposit Scheme
76. Certificate of commencement of business is required to open an account ofa. Private Limited Company
b. Public Limited Company
c. Proprietorship Firm
d. Partnership Firm

77. A Garnishee Order is issued bya. Court

b. Board
c. Executive committee
d. Management Committee
78. How much maximum amount can be withdrawn from ATM in a daya. Tk. 20,000.00
b. Tk. 30,000.00
c. Tk. 50,000.00
d. Tk. 1,00,000.00
79. The balance of an inoperative deposit account is to be transferred to central bank if it is inoperative fora. Above 5 years
b. Above 7 years
c. Above 10 years
d. Above 15 years
80. What is the maximum validity period of a payment order?
a. 90 days
b. 180 days
c. 360 days
d. None of the three
81. What do you mean by CAR?
a. Capacity Assessment Report
b. Capacity Assessment Ratio
c. Capacity Adequacy Ratio
d. Capital Adequacy Ratio
82. A minor who opened an account with his/her court appointed Guardian, can operate the account
independently after attaining the age ofa. 15
b. 18
c. 20
d. 21
83. Which section of NI Act deals with dishonor cheques for insufficient of funds in the account?
a. Section 141
b. Section 139
c. Section 138
d. Section 140
84. An order cheque can be paid over the countera. Only to VIPs
b. Only to bearer
c. Identifying the payee
d. Never can be paid
85. Payment order is aa. Negotiable Instrument
b. Non-Negotiable Instrument
c. Quasi Negotiable Instrument
d. None of the above
86. Who can cancel account payee crossing of a cheque?
a. The bank
b. The customer
c. The bank and the customer jointly
d. None
87. The brand name of AIBLs mobile Financial Services isa. m-cash
b. b-cash
c. Hello-Cash
d. Mobile Cash

88. Spread isa. Difference between buying and selling of F.C.

b. Gap between profit earned and paid
c. Gap between import and export value
d. None of the above
89. Which amount cheque will be treated as high value cheque?
a. Tk. 50.00 lac and above
b. Tk. 25.00 lac and above
c. Tk. 10.00 lac and above
d. Tk. 5.00 lac and above
90. A deposit that can never be withdrawna. Unbroken deposit
b. Perpetual deposit
c. Cash waqf deposit
d. None of the above
91. A bank account is opened undera. Bank Companies Act 1991 and amendment 2013
b. Contract Act 1872
c. NI Act 1881 and amendment 2012
d. Money Laundering Act 2012 (Amendment)
92. What is the minimum amount required for opening of a Students Mudaraba Savings Account?
a. Tk. 10.00
b. Tk. 100.00
c. Tk. 200.00
d. Tk. 500.00
93. Call money refers toa. Lending for a period not exceeding 7 (seven) days
b. Borrowing from Bangladesh Bank for 7(seven) working days
c. Borrowing from BB by TT discounting
d. Banks short term lending and borrowing
94. DCFCL stands fora. Daily Control Function Check List
b. Daily Central Financial Credit Limit
c. Documentary Credit Function Check List
d. Departmental Control Function Check List
95. How many risk factors are to be considered while assessing the risk grading of a client?
a. 7
b. 8
c. 6
d. 5
96. TP, necessary to open account isa. Transaction Portfolio
b. Transaction Privacy
c. Transaction Profile
d. Transaction Platform
97. The most important paper needs in opening of a Trust Account isa. Trustee Memorandum
b. Trust Deed
c. Trusty Mandate
d. Trusty Authrization
98. SBS stands for what?
a. Statistical Banking Statement
b. Schedule Bank Statistics
c. Strategic Banking Statement
d. Systematic Banking Schedule

99. PPI meansa. Positive Pay Instruction

b. Payment Profit Instrument
c. Profit Payable Instrument
d. None of the above
100. FATCA meansa. Foreigners Advance Tax Collection Authority
b. Foreigners Advance Tax Collection Act
c. Foreign Account Tax Compliance Act
d. Foreign Account Tax Compliance Authority

1
A
11
B
21
B
31
C
41
D
51
B
61
C
71
B
81
D
91
C

2
A
12
B
22
B
32
B
42
A
52
C
62
D
72
C
82
D
92
B

3
C
13
C
23
C
33
D
43
C
53
C
63
C
73
A
83
C
93
A

4
D
14
B
24
D
34
B
44
C
54
D
64
D
74
C
84
C
94
D

5
A
15
B
25
C
35
B
45
B
55
D
65
A
75
B
85
C
95
B

6
B
16
A
26
B
36
C
46
B
56
A
66
B
76
B
86
B
96
C

7
A
17
C
27
D
37
C
47
B
57
B
67
C
77
A
87
C
97
B

8
A
18
B
28
D
38
B
48
B
58
C
68
A
78
C
88
B
98
B

9
D
19
B
29
A
39
B
49
B
59
B
69
C
79
C
89
D
99
A

10
C
20
D
30
D
40
A
50
B
60
D
70
A
80
D
90
C
100
C