Banking Law - Questions and Answers for Competitive Exams | GkSeries

1. The primary relationship between a banker and customer starts from the time

• [A] when customer visits that bank
• [B] when customer opens account
• [C] when customer visits that bank to made queries
• [D] All of the above

Answer: Option [B]

2. Which one of the following is the most important relationship between banker and customer

• [A] Debtor and Creditor
• [B] Bailee and Bailor
• [C] Agency and Principal
• [D] Trustee and Beneficiary

Answer: Option [A]

3. Which bank have given the instructions to the commercial banks regarding the immediate credit of outstation cheques?

• [A] Reserve Bank of India
• [B] Central Bank
• [C] World Bank
• [D] All of the above

Answer: Option [A]

4. Dishonour of cheque by a banker without any justifiable reason is called

• [A] Valid dishonour of cheques
• [B] Unmindful dishonour of cheques
• [C] Negligence dishonour of cheques
• [D] Wrongful dishonour of cheques

Answer: Option [D]

5. ______________ is the right of a person to retain the property of another person in his possession untill the debt from that owner of that property is repaid

• [A] Lien
• [B] Retainment
• [C] Retrenchment
• [D] Libel

Answer: Option [A]

6. The idea behind the bankers right to set-off is to enable the banker to reduce the ______________ amount due to him from a customer

• [A] Gross
• [B] Net
• [C] Partial
• [D] None of the above

Answer: Option [B]

7. The ______________ rule is followed in appropriation of accounts if neither debtor nor creditors does not makes any specific appropriation

• [A] Pagets
• [B] Kinlay
• [C] Sheldon
• [D] Claytons

Answer: Option [D]

8. The right of set-off customers account can be exercised only by a A. Creditors

• [A] Creditors
• [B] Debtors
• [C] Banker
• [D] Customer

Answer: Option [C]

9. MICR technology used for clearance of cheques by banks refers to

• [A] Magnetic Ink Character Recognition
• [B] Magnetic Ink Company Recognition
• [C] Magnetic Ink Cross Recognition
• [D] Magnetic Ink Community Recognition

Answer: Option [A]

10. Which banks which accept deposits from the public and lend them mainly to commerce for short periods?

• [A] Commercial Bank
• [B] Industrial Bank
• [C] Agricultural Bank
• [D] Central Bank

Answer: Option [A]

11. A company who accepts demand deposit is called __________

• [A] Joint stock company
• [B] Banking company
• [C] Manufacturing company
• [D] IT company

Answer: Option [B]

12. Fixed Deposits is otherwise called as

• [A] Accrued Deposits
• [B] Time deposits
• [C] Recurring Deposits
• [D] Demand Deposits

Answer: Option [B]