Banking Law - Questions and Answers for Competitive Exams | GkSeries

13. The rate of interest charged for the loan by the banker compared to overdraft and cash credit is generally

• [A] High
• [B] Low
• [C] Same
• [D] Based on the amount

Answer: Option [B]

14. The main aim of a banker for performing the subsidiary services is to earn a ------------ of the customers

• [A] Money
• [B] Documents
• [C] Valuables
• [D] Goodwill

Answer: Option [D]

15. The written instructions given by the customers to banker to perform the services like collection and payment of money is noted down in

• [A] Written Instructions Book
• [B] Standing Instructions Book
• [C] Banking Instructions Book
• [D] Services Instructions Book

Answer: Option [B]

16. Services rendered by a banker not only to his customers, but also to the general public are called as

• [A] Principal services
• [B] Agency services
• [C] General utility services
• [D] Social services

Answer: Option [C]

17. In Negotiable Instruments Act 1881, which section defines promissory note?

• [A] Section 1
• [B] Section s
• [C] Section 3
• [D] Section 4

Answer: Option [D]

18. A cheque dated subsequent to the date of its issue is

• [A] Post dated cheque
• [B] Blank cheque
• [C] Crossed cheque
• [D] Account payee cheque

Answer: Option [A]

19. A drawer in the bill of exchange can also be a

• [A] Paymaster
• [B] Payee
• [C] Banker
• [D] Creditor

Answer: Option [B]

20. The lien is defined in

• [A] the Sale of Goods Act
• [B] the Transfer of property Act
• [C] the Indian Contract Act
• [D] the Companies Act

Answer: Option [A]

21. Who is primarily liable on a promissory note?

• [A] Holder
• [B] Maker
• [C] Drawee
• [D] Endorser

Answer: Option [B]

22. . ------------ is a dead cheque

• [A] Post dated cheque
• [B] Stale cheque
• [C] Ante dated cheque
• [D] Pre dated cheque

Answer: Option [B]

23. Discounting of bills of exchange is

• [A] Clean advance
• [B] Secured advance
• [C] Neither clean advance nor secured advance
• [D] Unsecured advance

Answer: Option [C]

24. Expand NEFT

• [A] National Electronic Fund Transfer
• [B] Neutral Electronic Fund Transfer
• [C] Neutral Electronic Fund Transfer
• [D] Neutral Electronic Fund Transfer

Answer: Option [A]