Model Online Promotion Test For Officers Recollected Questions 2010
These are Recollected Questions by a candidate after II to III exams in 2010.
Please take Quiz Password by e Mailing to rajatvk@indiatimesmail. Com your full particulars like Name,Age,Place of Work/Study,Designation/Course,Phone/Mobile No and Address
With Best Wishes
N. Rangarajan
Senior Manager
of A Public Sector Based Bank @ Trichy
- 1.
What are the occasions in current account, interest will be given?
- A.
In the deceased depositors account, from the date of death of depositor to till date of claim settlement to Nominee/Legal Heirs
- B.
In Institutional Accounts
- C.
In Accounts where balance exceeds Rs 100 lacs on an average
- D.
In the accounts of Service organizations and Govt Departments and PSUs
Correct Answer
A. In the deceased depositors account, from the date of death of depositor to till date of claim settlement to Nominee/Legal HeirsExplanation
Interest will be given in the deceased depositors account from the date of death of the depositor until the date of claim settlement to the nominee or legal heirs. This means that even after the depositor's death, the account will continue to earn interest until it is claimed by the nominee or legal heirs.Rate this question:
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- 2.
What is the single borrower limit to Partnership Firms for Projects Other than Infrastructure under Prudential Exposure Norms?
- A.
Rs 400 Crore under MCB
- B.
20% of Capital Funds with approval of Board
- C.
40% of Capital Funds with approval of Board
- D.
Rs 500 Crores under CMD
Correct Answer
A. Rs 400 Crore under MCBExplanation
The correct answer is Rs 400 Crore under MCB. This means that the single borrower limit for Partnership Firms for Projects Other than Infrastructure, as per the Prudential Exposure Norms, is Rs 400 Crore under the Master Circular on Basel III Framework on Liquidity Standards.Rate this question:
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- 3.
A crossed Cheque is presented over the counter by another Bank as agent for Collection.We cannot pay cash and have to issue counter Draft.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
The explanation for the answer being False is that a crossed cheque can be presented over the counter by another bank as an agent for collection, but it does not necessarily mean that cash cannot be paid. The bank has the option to issue a counter draft or pay cash depending on its policies and the specific circumstances of the transaction.Rate this question:
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- 4.
In No Frill account what is the maximum number of transactions ?
- A.
No Ceiling
- B.
4 Transactions per month
- C.
50 Transactions per Year
- D.
25 Transactions per Half year
Correct Answer
D. 25 Transactions per Half yearExplanation
The maximum number of transactions in a No Frill account is 25 transactions per half year. This means that within a period of six months, a customer can make up to 25 transactions, including deposits, withdrawals, and any other type of transaction. This limit ensures that the account is used for basic banking needs and discourages excessive activity or frequent transactions.Rate this question:
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- 5.
What is the Bank’s risk in financing Unregistered Partnership firm?
- A.
If full collateral security is taken, no risk
- B.
The firm cannot sue its customers on their contracts and hence it cannot proceed against its debtors to recover its dues.
- C.
Reputation Risk
- D.
Registration Risk and Hence Unsecured Creditors
Correct Answer
B. The firm cannot sue its customers on their contracts and hence it cannot proceed against its debtors to recover its dues.Explanation
The bank's risk in financing an unregistered partnership firm is that the firm cannot sue its customers on their contracts, which means it cannot take legal action against its debtors to recover its dues. This poses a significant risk to the bank as it may not be able to fully recover the loan amount in case of default by the partnership firm. Therefore, the bank is exposed to the risk of potential loss if the firm fails to repay the loan.Rate this question:
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- 6.
Current assents = 48, NWC =12 , what is Current Ratio?
- A.
2
- B.
1.33
- C.
1.25
- D.
4
Correct Answer
B. 1.33 -
- 7.
PBT is 36 lacs Tax Liability Rs 7 lacs Annual Int on TL 1 lacs Depreciation Rs 3 lacs Annual EMI Rs 22 lacs Calculate DSCR
- A.
1
- B.
1.5
- C.
2
- D.
None of the above
Correct Answer
B. 1.5Explanation
DSCR stands for Debt Service Coverage Ratio, which is a measure of a company's ability to repay its debt obligations. It is calculated by dividing the company's net operating income by its total debt service. In this case, the net operating income can be calculated by subtracting the annual interest on the TL and depreciation from the PBT, which gives us 32 lacs. The total debt service is the sum of the annual interest on the TL and the annual EMI, which is 23 lacs. Therefore, the DSCR is 32 lacs divided by 23 lacs, which equals approximately 1.39. Since the closest option to 1.39 is 1.5, the correct answer is 1.5.Rate this question:
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- 8.
What is the Legal relationship of Nominee to that of Legal heirs?
- A.
Beneficiary _ Trustee
- B.
Debtor - Creditor
- C.
Principal _ Agent
- D.
Trustee - Beneficiary
Correct Answer
D. Trustee - BeneficiaryExplanation
The legal relationship between a nominee and legal heirs is that of a trustee and beneficiary. A nominee is someone who is appointed to hold and manage assets on behalf of another person, known as the beneficiary. The nominee has a fiduciary duty to act in the best interests of the beneficiary and to manage the assets in accordance with their wishes. The legal heirs, on the other hand, are individuals who are entitled to inherit the assets of a deceased person. Therefore, the relationship between a nominee and legal heirs can be described as that of a trustee and beneficiary.Rate this question:
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- 9.
Term Loan Proposal is received.What are the crucial ratios to be analysed?
- A.
DSCR/FDER
- B.
DSCR/TOL to TNW
- C.
Defensive Interval Ratio/Leverage Ratio
- D.
Profitability Statement
Correct Answer
B. DSCR/TOL to TNWExplanation
The crucial ratios to be analyzed when receiving a Term Loan Proposal are the Debt Service Coverage Ratio (DSCR) and the Total Outside Liabilities to Tangible Net Worth (TOL to TNW) ratio. The DSCR measures the ability of the borrower to generate enough cash flow to cover the loan payments, while the TOL to TNW ratio assesses the borrower's financial leverage and risk. These ratios are important indicators of the borrower's ability to repay the loan and the overall financial health of the company.Rate this question:
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- 10.
Mr.Naresh gives POA to Mr.Suresh to operate Bank Account. Cheque signed by Suresh comes in clearing. But the Bank Clearing officer has seen the obituary column in that day's News Paper that Mr.Naresh expired. What is the course of action for Bank?
- A.
Pay the cheque
- B.
Return the Cheque as the death/insolvency/lunacy of the Principal will affect the validity of POA
- C.
Contact the Legal Heirs of Principal and subject to their confirmation we can pass the cheque.
- D.
Discuss with Law Officer/Panel Advocate and do the needful.
Correct Answer
B. Return the Cheque as the death/insolvency/lunacy of the Principal will affect the validity of POAExplanation
If the Bank Clearing officer has seen the obituary column in that day's newspaper stating that Mr. Naresh has expired, it is necessary for the bank to return the cheque. The death of the principal, in this case Mr. Naresh, affects the validity of the Power of Attorney (POA) given to Mr. Suresh. Therefore, the bank cannot honor the cheque as it is no longer valid due to the principal's death.Rate this question:
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- 11.
What is the maximum Forex Entitlement for Medical Treatment abroad for a patient?
- A.
AD Category I banks and AD Category II, may release foreign exchange up to USD 100,000 or its equivalent to resident Indians for medical treatment abroad on self declaration basis, without insisting on any estimate from a hospital/doctor in India/abroad
- B.
A person visiting abroad for medical treatment can obtain foreign exchange exceeding the above limit, provided the request is supported by an estimate from a hospital/doctor in India/abroad.
- C.
An amount up to USD 25,000 is allowed for maintenance expensesof a patient going abroad for medical treatment or check-up abroad, or to a person foraccompanying as attendant to a patient going abroad for medical treatment/check-up.
- D.
All the above
Correct Answer
D. All the aboveExplanation
The maximum Forex Entitlement for Medical Treatment abroad for a patient includes all of the options mentioned in the question. AD Category I banks and AD Category II can release up to USD 100,000 or its equivalent for medical treatment abroad on a self-declaration basis. Additionally, a person can obtain foreign exchange exceeding this limit if supported by an estimate from a hospital/doctor. An amount up to USD 25,000 is also allowed for maintenance expenses of a patient going abroad for medical treatment or check-up, or to a person accompanying as an attendant. Therefore, all of the options mentioned in the question are correct.Rate this question:
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- 12.
What is the percentage of Export Credit to Adjusted Net Bank Credit?
- A.
40%
- B.
18%
- C.
1%
- D.
12%
Correct Answer
D. 12%Explanation
The correct answer is 12%. This means that the percentage of Export Credit to Adjusted Net Bank Credit is 12%. This indicates that the amount of credit provided for exports is 12% of the total adjusted net bank credit.Rate this question:
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- 13.
The guarantor has paid the dues of Principal debtor to the Creditor? What is the right of recovery of guarantor from the debtor now?
- A.
Right of Foreclosure
- B.
Right of Set Off
- C.
Right of Subrogation
- D.
Right of Appropriation
Correct Answer
C. Right of SubrogationExplanation
The right of subrogation refers to the guarantor's right to step into the shoes of the creditor and recover the amount paid from the debtor. In this case, since the guarantor has paid the dues of the principal debtor to the creditor, they now have the right to seek repayment from the debtor. This allows the guarantor to be reimbursed for the amount they paid on behalf of the debtor.Rate this question:
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- 14.
What is the maximum loan limit under Sanjeevini Scheme in Rural and Semi Urban Areas?
- A.
50 lacs and Ten Lacs
- B.
25 lacs and 100 lacs
- C.
50 lacs and 100 lacs
- D.
10 lacs and 50 lacs
Correct Answer
D. 10 lacs and 50 lacsExplanation
The maximum loan limit under the Sanjeevini Scheme in Rural and Semi Urban Areas is 10 lacs and 50 lacs.Rate this question:
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- 15.
Stock statement not submitted for 3 months in a OCC account .When the OCC will be NPA?
- A.
90 days after the DP becoming Nil
- B.
90 days from the date of Non-submisstion of Stock Statement
- C.
180 days after the DP becomes Nil
- D.
None of the above
Correct Answer
A. 90 days after the DP becoming NilExplanation
The correct answer is "90 days after the DP becoming Nil". This means that if the stock statement is not submitted for 3 months in an OCC account and the DP (Drawing Power) becomes Nil, then the OCC (Overdraft Cash Credit) account will be classified as Non-Performing Asset (NPA) after 90 days.Rate this question:
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- 16.
Loan o/s 15 Lac, security- 10 lac, D2, How much provision ?
- A.
3 lacs
- B.
6 lacs
- C.
8 lacs
- D.
10 lacs
Correct Answer
C. 8 lacs -
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