Sample Questions

T. Y. B. Com. (SEM V)
Banking Law & _Practice
1. Bank having maximum number of branches in India
a) Reserve Bank of India
b) State Bank of India
c) Punjab National Bank
d) Bank of Baroda
2. 100/- Rupee note is signed by
a) Prime Minister
b) Finance Minister
c) RBI Governor
d) Commercial Bank
3. ATM password should be kept in
a) Personal diary
b) Office diary
c) Memory
d) Mobile Phone
4. Minimum age required to open SB account in the bank
a) 8 years
b) 10 years
c) 12 years
d) 15 years
5. Bank does not provide loans for
a) Crop loans
b) Education loans
c) Home loans
d) Drinking & Gambling
6. Loans from money lenders are
a) With High rate of interest
b) No proper accounting
c) No transparency
d) With Low rate of interest
7. Defaulter of loan means
a) Not paying loan instalments
b) Bad reputation
c) Illegal activities
d) Fraud
8. E or S means
a) East or South zone
 b) Easy and Swift
c) Either or Survivor
d) Easy & Soft
9. PPF means
a) Pension Planning Funds
b) Person having Pension Facilities
c) Public Provident Fund
d) Permanent Practitioner’s Forum
10. Who is the present Chairman of State Bank of India?
a) Arundhati Bhattacharya
b) O.P. Bhatt
c) Dinesh Kumar Khara
d) ChandaKochar
11. The safest place for keeping money
a) A pit dug in the ground
b) An iron box
c) Bank
d) Money lender
30. Currency notes are issued by

a) RBI
b) NABARD
c) Public sector banks
d) Central Government
12. Coins are issued by
a) Government of India
b) NABARD
c) Public sector banks
d) State Bank of India
13. Business Correspondent means
a) An agent who provides banking services
b) An agent of business house
c) A type of money lender
d) An Agent who write a letter
14. Nomination once done can
a) Not be cancelled
b) Be cancelled
c) Not be changed
d) Be transfer
15. PAN number is required for
a) Deposits less than Rs.50,000/-
b) Deposits in excess of Rs.1 lac
c) Deposits Rs.50,000/- & above
 d) All transactions
16. TDS means
a) Time Deposit Scheme
b) Total Deposit Scheme
c) Tax Deducted at Source
d) Tax Deposit Scheme
17. Maximum amount of Cheque
a) Rs.100 crore
b) No limit
c) Rs.1 crore
d) Rs.50 crore
18. Upon detection of a counterfeit note at the counter, Bank
a) Returns the note to the customer
b) Exchange with a genuine Note
c) Deposit in Account
d) Impound the Note and issue receipt
19. Maximum tenure of Fixed Deposit is
a) 5 years
b) 7 years
c) 8 years
d) 10 years
20. What is Direct Benefit Transfer?
a) Cash discount on goods
b) Remittance through Banks
c) Transfer of social benefits / subsidies directly in Bank accounts of beneficiaries
d) Transfer Benefit to Bank
21. What is meant by Aadhaar seeding?
a) Linking of Aadhaar with Bank account
b) Duplicate issuance of Aadhaar
c) Transfer of Aadhaar
d) Linking of Aadhaar with PAN Card
22. Who is Bank Mitra?
a) Banking Correspondents engaged by Banks
b) Valuable customer of Bank
c) Security guard in a branch
d) Friend of Bank Customer
23. What is the minimum deposit required while opening a BSBD Account?
a) Rs.100/-
b) No minimum deposit required
c) Rs.1,000/-
d) Rs.500/-
24. What is Atal Pension Yojana (APY)?
a) Provides social security to the unorganized sector
 b) Encourages workers to voluntarily save for their retirement
c) Fixed pension is paid on attaining age of 60 years
d) Fixed pension is paid on attaining age of 100 years
25. What is Pradhan Mantri Suraksha Bima Yojana (PMSBY)?
a) Accidental insurance cover
b) Life insurance cover
c) Overdraft up to Rs.5,000/-
d) Overdraft up to Rs.50,000/-
26. Under PMSBY, accidental death claim is available for:
a) Rs.1 lac
b) Rs.2 lac
c) Rs.3 lac
d) Rs.5 lac
27. Under PMSBY, partial disability claim is available for:
a) Rs.50,000/-
b) Rs.1 lac
c) Rs.2 lac
d) Rs.5 lac
28. Under APY, fixed pension can be chosen from:
a) Rs.1,000/-, Rs.2,000/-, Rs.3,000/-, Rs.4,000/-, Rs.5,000/-
b) Rs.2,000/-, Rs.3,000/-, Rs.4,000/-, Rs.5,000/-, Rs.6,000/-
c) Rs.500/-, Rs.1,000/-, Rs.2,000/-, Rs.3,000/-, Rs.4,000/-
d) Rs.3,000/-, Rs.4,000/-, Rs.5,000/-, Rs.6,000/-, Rs.7,000/-
29. Which of the following cities does NOT have a formal stock exchange?
a) Frankfurt
b) London
c) Monte Carlo
d) Hong Kong
30. Which term most accurately describes selling shares at a higher price than the price at
which they were bought?
a) Loss
b) Profit
c) Asset
d) Dividend
31. Which of the following are you unlikely to find traded officially on world stock
markets?
a) Foreign Currency
b) Insults
c) Company stock/shares
d) Gold
32. The FTSE 100 index is used to measure stock market performance in which country?
a) France
b) Germany
 c) Finland
d) United Kingdom
33. How many companies are included in the SENSEX?
a) 50
b) 111
c) 30
d) 25
34. When was Nifty established?
a) 1996
b) 1952
c) 1965
d) 1970
35. Which of the following might you see roaming a stock market?
a) A Goats
b) Bulls
c) C Cows
d) D Mice
36. India Index Services & Products Limited (IISL) is a joint venture between two entities
a) A NSE and CRISIL Ltd.
b) B BSE and CARE Ltd.
c) C BSE and CRISIL Ltd.
d) D NSE and ICRA Ltd.
37. A contract between a buyer and a seller entered into today regarding a transaction to be
fulfilled at a future point in time is called
a) Fixed contract
b) Derivative contract
c) Forward contract
d) Future contract
38. Over the life of the derivative contract, the value of the derivative
a) fluctuates with the price of the so-called “underlying” of the contract
b) decreases
c) increases
d) Same
39. In India, NIFTY and SENSEX are calculated on the basis of
a) Market Capitalization
b) Paid up Capital
c) Free-float Capitalization
d) Authorized Share Capital
40. The first computerised online stock exchange in India was
a) NSE
b) B.OTCEI
c) C.BSE
d) D.MCX
41. Which of the following derivative is not traded on Indian Stock Market?
a) Index Options
b) Stock Futures
c) Index Futures
d) Forward Rate Agreements
42. Spot exchange rate is the rate of exchange between two currencies
a) for immediate delivery
b) for future delivery
c) for delivery at a particular spot in future
d) for past delivery
43. Break-even of a Put option occurs when spot price is equal to
a) Strike price + Premium
b) Strike Price - Premium
c) Premium
d) Discount
44. Before expiry date, the time value of a call option is
a) Strike Price - Spot Price
b) Spot Price - Strike Price
c) Market Premium - Intrinsic Value
d) Intrinsic Value
45. If Strike price is more than the spot price of the asset, the call option is known as
a) American Option
b) European Option
c) Out of Money Option.
d) In the Money Option
46. Which of the following is not available in India?
a) Index Options
b) Index Futures
c) Commodity Options
d) Commodity Futures
47. Mr. X has to pay Rs 5,00,000 in three months time for the imports made by him. Correct
hedging policy for him would be to
a) Buy a Rs Call Option
b) Sell a Rs Call Option
c) Buy a Rs Put Option
d) Sell a Rs Put Option
48. PMJDY LIC Insurance of Rs.30,000/- is available for first time accounts opened
a) On 15th August 2014
b) On 26th January 2015
c) Between 15th August 2014 and 26th January 2015
d) On 31st March 2015
49. Which of the following is true for mutual funds in India?
a) Exit load is not allowed
 b) Entry load is allowed
c) Entry load is not allowed
d) Exit load allowed is some cases
50. Self Help Group involves
a) Group of 5 to 20 people
b) Regular saving habits
c) Inter-lending within the group members
d) Regular spending habit