Banking Law - Questions and Answers for Competitive Exams | GkSeries

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

1. [A] when customer visits that bank
2. [B] when customer opens account
3. [C] when customer visits that bank to made queries
4. [D] All of the above

Answer: Option [B]

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

1. [A] Debtor and Creditor
2. [B] Bailee and Bailor
3. [C] Agency and Principal
4. [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?

1. [A] Reserve Bank of India
2. [B] Central Bank
3. [C] World Bank
4. [D] All of the above

Answer: Option [A]

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

1. [A] Valid dishonour of cheques
2. [B] Unmindful dishonour of cheques
3. [C] Negligence dishonour of cheques
4. [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

1. [A] Lien
2. [B] Retainment
3. [C] Retrenchment
4. [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

1. [A] Gross
2. [B] Net
3. [C] Partial
4. [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

1. [A] Pagets
2. [B] Kinlay
3. [C] Sheldon
4. [D] Claytons

Answer: Option [D]

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

1. [A] Creditors
2. [B] Debtors
3. [C] Banker
4. [D] Customer

Answer: Option [C]

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

1. [A] Magnetic Ink Character Recognition
2. [B] Magnetic Ink Company Recognition
3. [C] Magnetic Ink Cross Recognition
4. [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?

1. [A] Commercial Bank
2. [B] Industrial Bank
3. [C] Agricultural Bank
4. [D] Central Bank

Answer: Option [A]

11. A company who accepts demand deposit is called __________

1. [A] Joint stock company
2. [B] Banking company
3. [C] Manufacturing company
4. [D] IT company

Answer: Option [B]

12. Fixed Deposits is otherwise called as

1. [A] Accrued Deposits
2. [B] Time deposits
3. [C] Recurring Deposits
4. [D] Demand Deposits

Answer: Option [B]