General banking for promotion exams

1. The Negotiable Instruments Act extends to
Ans. Whole of India
2. A Promissory Note payable to bearer
Ans. Cannot be drawn
3. Bill of Exchange is defined in Section _______ of NI Act
Ans. 5
4. What is the time allowed to the drawee for accepting the bill?
Ans. 48 hrs exclusive of public holidays
5. A cheque is defined in Section___________ of NI Act
Ans. 6
6. The Truncation of a cheque is
Ans. Electronic image of a cheque
7. Crossing Applies to
Ans. Cheques
8. When a Cheque is wrongfully dishonoured by the bank, it is liable to
Ans. Drawer
9. According to the present RBI guidelines, minimum Tier-I capital adequacy ratio
required to be maintained by Commercial Banks in India is _________.
Ans. 3%
10. The drawer of a cheque can be made liable under Sec 138 of N.I Act provided
Ans. The cheque is issued in discharge of a debt or liability
11. When a cheque is dishonoured for insufficient funds, it is treated as
Ans. Criminal offence
12. To become a holder of a Negotiable Instrument, consideration is
Ans. Not Essential
13. In the case of a Holder in due course, the consideration is
Ans. Essential
14. When a order cheque is made into bearer, it requires the drawer’s full signature
as it amounts to
Ans. Material alteration
15. Noting and Protesting relates to
Ans. Promissory Notes or Bill of Exchange
16. _________________Mortgage has to be registered electronically in CENTRAL
Electronic
Registry set up by Govt of India
Ans. Equitable Mortgage

17. Minor is defined in
Ans. Indian Majority Act
18. When a Guardian is appointed by the Court, the minor attains majority on
completion of
Ans. 18 years
19. A Minor was admitted as a full fledged partner in a firm as per partnership
deeAns. Whether the partnership deed is valid?
Ans. The Deed is invalid
20. Who is the Guardian of a Hindu Minor Married girl?
Ans. Her Husband if he is a major or Her father if her husband is a minor or Her
mother if her husband is a minor and father is not alive
21. Insolvency is a
Ans. Ans. Civil Death
22. A Power of Attorney can be attested by
Ans. Notary Public or Magistrate of a Court
23. Whether a Mandate Letter is stamped and witnesseAns.
Ans. The Mandate Letter do not attract stamp duty and not witnessed
24. Executor is a person whose name is mentioned in
Ans. The Will
25. Adminstrator is a person who is
Ans. Appointed by a Court when a person dies without a will or Appointed by a
Court when the Executor refuses to execute the Will
26. When a sole executor dies, the legal heirs have to
Ans. Obtain fresh probate from the Court
27. Who is the Karta of the JHF
Ans. Eldest co-parcener of the family
28. JHF are governed by
Ans. Hindu succession Act
29. A club can be registered with
Ans. Registrar of Societies
30. The important document obtained while opening the account in the name of Club
is
Ans. Bye-Laws
31. A Public Charitable Trust is governed by
Ans. Public Trust Act
32. In a Trust, the number of trustees are restricted to
Ans. No Limit

33. A Public Charitable Trust are registered with the
Ans. Charity commissioner
34. A cheque drawn by a sole trustee is presented for payment after his death.
Whether the
cheque can be paid?
Ans. Should not be paid
35. The minimum paid-up capital of Public Ltd Company should be
Ans. Rs. Nil no limit
36. The minimum number of directors in a Private Limited Company should be
Ans. 2
37.Government Company is one where the minimum share capital of _____% is held
by the
Central / State Government
Ans. 51
38.What is the name of the person appointed by the Court when there is a
compulsory winding up of the company?
Ans. Liquidator
39 .When an order is issued by a court advising the bank to stop operations on the
account, it is called as
Ans. Order Nisi