Module D Caiib Jaiib Tips

Agreement
2. Under Prevention of Money Laundering Act 2002, the banks are required to maintain record of cash
transactions of the value of
Rs.50000 and above
Rs.1 lac and above
Rs.10 lac and above Above
Rs.10 lac
3. Banks can undertake permitted business activities u/s 6 (1) of B R Regulation such as (a) buying or selling
of bullion (b) undertake and execute trusts (c) undertake the administration of estates as executors, trustee
(d) providing of safe deposit vaults:
A, b and c only B, c and d only A, c and d only A
4. Where the parties areys! to perform their mutual promises, in respect of sale purchase of goods, it is
called:
Sale Agreement to sell Intention to sell . Contract of sale
5. Which of the following and constitution of the respective bank does not match:
Nationalized banks- Banking Companies Act 1969
State bank of India- SBI Act 1955
State bank Associate Banks - State Bank (Subsidiary Banks ) Act 1955
RRBs- RRB Act 1976
6. For the purpose of Limitation Act, filling of suit include:

A suit in a court
Appeal against the decree of a court
Applications
All the above
7. Under provisions of Prevention of Money Laundering Act 2002, wh the director for tracking money
laundering
Reserve Bank of India .
Central Bureau f of Investigation
Central Govt.
Each State Govt. concerned
8. Which of the following statements regarding RBI is not correct:

RBI has the authority to issue license to banks
Entire capital of is held by Central Govt. & State Governments
Central Govt. appoints the governor of RBI
Central Govt. can issue directions to RBI under RBI Act
1. Under Right to Information Act, the innation that can be accessed should be held by or under control of:
. Govt. authority
Public authority
Public or private authority
Govt. authority, public authority or private authority
2. When one or more bank is merged with another bank to two or more banks decide to merge to form a
new company, it is called:
Returns
Amalgamation ..
Liquidation
Winding - up
3. The offences that are compoundable under any law, can not be brought within the purview of, which of
the following:
Lok Adalt
DRT
Civil Court
High Court
4. The Transfer of Property Act contains provisions relating to transfer of:

Actionable claims
Movable assets
Goods
None of the above
5. Which of the following is the objective of Foreign Exchange management Act (FEMA)1999
To conserve foreign exchange
To manage foreign exchange
To facilitate external trade and promote orderly development of forex markets in India
All the above
6. Which of the following is not correct in case co of contract of indemnity or guarantee: .

In indemnity the loss is to be made good as soon as it occurs m.
In case of guarantee surety's liability is secondary and principal debtor's liability is primary
An indemnity is for the reimbursement of loss
A guarantee is for bearing the loss caused due to the action of principal debtor or any other party A
A bank guarantee has been issued by the 1007 bank in lieu of the customer being required to deposit cash
security. Such guarantee is called:
Cash guarantee
Financial guarantee
Performance guarantee
Deferred payment guarantee
8. The sale becomes absolute in case of mortgage by conditional sale, when:

Borrower makes payment of the due amount
Borrower fails to make payment of the due amount
When loan is re-structured
When limitation expires
Legal Act Concept

1. Places where the mortgage by Deposit of title deeds can be created are generally notified by the ......
(a) Registrar of companies (b) State Government (c) Registrar of Assurances (d) Competent Legal Authority
2. Under RTI Act 2005, the period for providing information is:
5 days
One week
21 days
30 days
3. (a) Certificates of Incorporation is birth certificate of a company (b) Certificate of Incorporation is

conclusive evidence of creation of a company (c) on the basis of certificate of incorporation bank can open
account without any other introduction (d) certificate of commencement is required both by the public and
private companies:
a. A to d are correct b. A, b and care correct 6. A, c and d are correct
3. (a) Certificates of Incorporation is birth certificate of a company (b) Certificate of Incorporation is

conclusive evidence of creation of a company (c) on the basis of certificate of incorporation bank can open
account without any other introduction (d) certificate of commencement is required both by the public and
private companies:
A to d are correct
A, b and care correct
A, c and d are correct
B, c and d are correct
4. A company can commence its business (a) without obtaining certificate of commencement of business if
it is a private company (b) without obtaining certificate of commencement of business if it is a company
without any share capital (c) after obtaining certificate of commencement of business u/s 125 if it is a public
company, which of these is correct:
A to call
A and b only
B and c only
A and c only
5. Which of the following statements are not true:

A partnership firm can be registered u/s 58 of Indian Partnership Act
Accompany is a legal person created through incorporation
Certificate of commencement of business is conclusive evidence of existence of a company
Where 2 or more person agree to share profits from business, it is called a partnership.
6. The lease for a purpose other than for agricultural and manufacturing purposes is deemed to be a lease
from_and it can be terminated by giving_notice:
Year to year, 2 months
Year to year, 3 months
Month to month, 30 days
Month to month, 15 days
7. The Prevention of Money laundering Act 2002 was enacted with the following objective:
To prevent money laundering
To provide for confiscation of property derived from money laundering
To prevent use of banking system for money laundering
All the above
8. Before enforcement of security interest i.e. sale of security, the creditor, to show his intention to take
possession, is required to obtain possession of the security by giving:
A reasonable period notice
A notice of 15 days
A notice of 30 days
A notice of 60 days
Lok Adalat Court
1. In a public limited company, maximum and minimum no. of shareholders is:

50 and 10
No limit and 7
100 and 2
Any number at the discretion of the company
2. The copy of memorandum of association and articles of association of a company is kept with office of
RoC and can be inspected by any person due to which it is known as...
Doctrine of indoor management
Ultra-vires
Doctrine of constructive notice
Doctrine of outdoor management
3. Which of the following are two essential functions of banks as indicated in Section 5(b) of banking
Regulation Act (a) accept deposits & to lend or invest such deposits (b) accept deposit & nothing else (c)
accept deposits and undertake other business (d) lend & invest and issue letters of credit:
a and d only
a and c only
C only
A only
4. Which of the following group is not included in term goods, as per Sale of Goods Act:
Shares & stocks
Grass and shares
Actionable claims
Stock and grass
5. A suit is deemed to have been instituted (filed) in a court:
When the court fee has been paid
when plaint is presented to the proper officer in the court
when plaint has been acknowledged by the court
Any of the above
6. As per Sale of Goods Act, the_goods mean the goods identified and agreed upon, at the time of a
contract of sale is made:
Future
Specific
Movable
Immovable
7. As per Sale of Goods Act, the ...........goods which are to be manufactured by the seller after making
contract of sale:
Future
Specific
Movable
Immovable
8. As per Sale of Goods Act, the ............. _of the seller is terminated when the buyer gets possession of the
goods:
Warranty
Condition
Lien
Agreement
Indian Cont. Act, 1872 Void Agreement

1. What is the function of the public key out of the pair of keys used in an electronic signature:
To create an electronic signature

To verify an electronic signature
To create and verify an electronic signature
All the above
2. After receipt of notice of possession from the bank, if the borrower transfers, other than in normal course
of business, any of his assets without consent of the bank, what is the punishment under SARFAESI Act:
There is punishment in the form of fine only
There is punishment in the form of imprisonment up to 2 years
The punishment can be in the form of the fine and imprisonment up to 1 year or both
There is no provision of any punishment
3. When a request for information is rejected by Public Information Officer under right to Information Act,
he is not required to communicate to the requester:
The reasons for rejection
The period within which an appeal can be preferred
The particulars of appellate authority
An apology for not providing information
4. As per Rules under Prevention of Money laundering Act 2002, the banks are not requires to obtain which
the following documents while opening account of a company:
Certificate of Incorporation
Memorandum of Association and Articles of Association
Board resolution and official valid document in respect of the person operating the account
None of the above
5. The provision of SARFAESI Act are applicable in which of the following transactions:
A lien or pledge on any goods as per Indian Contract Act
Security interest created on agricultural land
Loan amount is above Rs. 1 lac
Balance amount is less than 20% of the principal amount and interest
6. A complaint that is made to Ombudsman should not relate to an issue (a) already settled by Ombudsman
(b) pending with a court (c) already decided by a court (d) where limitation period has expired. Which of the
following options is correct:
A, b and c only
B, C and d only
A, c and d only
A, b, c, d all
7. The presiding officer of DRT is called

who is appointed by__for_or until he achieves age of_
President, Central Govt., 4 year, 65 years .
President, High Court., 5 year, 62 years
President, Central Govt., 3 year, 62 years
Chairperson, Central Govt., 5 years, 62 years
8. When suit is filed by the bank with DRT, DRT summons the defendant requiring him to show cause within
days from as to why the relief prayed by the bank, should not be granted:
30 days, date of summons
45 days, receipt of summons
30 days, service of summons
45 days, date of summons
9. In which of the following mortgages, the property is transferred by the mortgager absolutely with a
condition for retransfer by the mortgagee:
Simple mortgage
English mortgage
Equitable mortgage
usufructuary mortgage
10. When a bank is to send a certified copy of bank records to a court, the bank is to give a certificate that
should contain (which is not correct):
The entry is true copy
Entry is contained in bank books
Entry was made in ordinary course of business .
Such record is not in the custody of the bank
Voidable Contract
1. Which of the following definition as per Sales of Goods Act is not correctly stated:
Buyer is a person who agrees to buy goods
Seller is a person who sells goods
Voluntary transfer of possession from
seller to buyer means delivery
None of the above
2. As per Limitation Act 1963, if a suit is filed after the expiry period of limitation it shall be:
.. Entertained at discretion of the court
If case is genuine, it can be filed as a matter of right
Dismissed by the court 4. Any of the above
3. As per Sale of Goods Act, the seller of goods is deemed to be unpaid seller, when_has not been paid:
the
a. Interest b. Price c. Penalty d. Damages
4. If the court, where the suit is field is closed on the date of expiry of limitation, the suit:
Can be field a day before
Suit cannot be filed at all
Suit can be filed on first day of re-open of the court
Suit can be filed at discretion of the court
5. Under the provisions of Section 22 of RBI Act:

RBI regulates the banks
RBI conducts govt. business
RBI is the sale authority to issue and manage currency in India
RBI issues note refund rules
6. Which of the following statements is not correct:

Central govt. holds the entire capital of RBI
Central govt. appoints governor and other officials of RBI
Central govt. can issue directions to RBI
Central govt. appoints the members on RBI board and can remove them
7. As per Sale of Goods Act, if there is breach of warranty, which of the following would be true:
The parties can reject the goods
The parties can treat the contract as repudiated
The parties can claim damages
All the above remedies are available
8. The company matters of a bank regulated by (a) SEBI (b) RBI (c) Ministry of Corporate Affairs (d)
Authorities under Companies Act
A and d
A, c and d
Only c
Only d
9.xhad purchased a 2nd hand car from 2 and made the payment. The car is taken in possession by the police
as it was stolen one. As per Sale of Goods Act, this amount to:
Breach of condition
Breach of warranty
Brach of an implied condition
Breach of an implied warranty
Where licence of a banking company is cancelled, it can make an appeal to:

Central Govt.
RBI Bank
High Court in whose jurisdiction, the
registered office of the bank falls
Supreme Court only
Security
1. In a contract of indemnity, the person who makes the promise to save a person from loss is called_and
the person who is entitled to be compensated is called_:
235
Surety, indemnifier
Indemnity holder, indemnifier
Indemnifier, indemnity holder
Indemnity holder, surety
2. Under FEMA 1999, which of the following is not a person:

An individual or an HUF
An firm or a company
An association of persons or body of individuals
None of the above
3. Which of the following authority has the jurisdiction for incorporation of Limiter Liability Partnership:
Registrar of Firms
Registrar of Companies
Registrar of Limited Liability partnerships
Registrar of Assurances
4. bank only forwards the letter of credit to the beneficiary and has no obligation to make payment against
the documents presented by the beneficiary:
Confirming bank
Advising bank
Opening bank
Negotiating bank
5. In_LC, the beneficiary transfer his rights in the letter of credit to 3rd parties:
Irrevocable LC
Transferable LC
Green clause LC
Red clause LC
6. The term money laundering has been defined in which of the following Act:
Criminal Procedure Code
Companies Act 1956
Prevention of Money Laundering Act 2002
None of these
7. The document, in an LC, that gives details of the sale is called_:

Bill of exchange
Invoice
Bill of landing
Certificate of origin
8. When supplier of machinery is ready to supply the machinery to the buyer on long payment basis, on the
payment guarantee from the bank, such bank guarantee is called:
Term loan guarantee
Financial guarantee
Performance guarantee
Deferred payment guarantee
9. Under RTI Act 2005, the information does not include, which of the following:
E-mails
Press releases
Logbooks
None of the above
10. Which of the following is not true in the context of bills of exchange:
Inland bill is a bill which is drawn in India and payable in India or by some person resident in
India
Clean bill of lading is a not a document that declares there was no damage to or loss of goods during
shipment.
Documentary bill is a bill to which document of title to goods are attached
Demand bills are also called sight bills.
Acts
1. The date of documents of a loan is January 25, 2006. The prescribed limitation period is three years. The
suit can be field latest by:
January 25, 2009
January 24, 2009
January 26, 2009
January 27, 2009
2. The objective of enacting Banking Regulation Act was to:

Regulate banking companies
Creation of banking system
Regulating acceptance of deposits from public
All the above
3. As per Sale of Goods Act, the unpaid seller of goods in possession of the goods, is entitled to retain the
possession of the goods until payment of the price is made, in the following cases:
If the goods have been sold without any stipulation as to credit
If the goods have been sold on credit, but the term of credit has expired
If the buyer becomes insolvent
Any of the above
4. Who can suspend the operation of banking company and on whose recommendations:
RBI, on the recommendations
RBI, on its own
Central govt. on its own
Central Govt. on recommendations of RBI
5. For specific performance of a contract, what is the limitation period:

1 years
2 years
3 years
12 years
6. Which of the following statements is correct:

Public sector banks have been created under a special statute.
Banking companies are registered under BR Act
Subsidiaries of state bank are companies registered under Companies Act
Accepting deposits for safe custody falls under the definition of banking
7. In which of the following situations, the limitation period is not three years:
Money payable for money lent
On a promissory note
On a mortgage
On arrears of rent
8. X purchases a hot water bottle from Z, the retailer. On request of X,Z confirms that the bottle is meant to
hold hot water. X is injured when hot water is put in the bottle is burst. Under Sale of Goods Act, this is a
Breach of condition
Breach of warranty
Breach of an implied
Breach of implied warranty
9. A normal Lok Adalt (other than organized by DRT) can entertain disputes involving:
Up to Rs.20 lac
Up to Rs. 15 lac
Up to Rs. 10 lac
Up to Rs.5 lac
10. Lok Adalt is organized by:

State authority or district authority
Supreme Court legal services committee
High Court legal services committee
Any of the above
BR & RBI Act
1. Under Prevention of Money Laundering Act, 2002, banks are required to maintain record of cash
1.Rs. 50000 and above
2.Rs. 1 lac and above
3.Rs. 10 lac and above
4.None of the above
2. Section 49-A of Banking Regulation Act makes provisions for which of the following?
(a) Declaration of bank rate (b) Restrictions on the type of business that the banks cannot undertake (c) No
person other than a bank is authorised to accept deposits withdrawable by cheque (d) Acceptance of
deposits by banks
1.Only (a) 2.Only (a) and (c) 3.Only (c) 4.Only (b)
3. Banks can undertake permitted business activities u/s 6 (1) of Banking Regulation Act such as
(a) buying or selling of bullion (b) undertaking and executing trusts (c) undertaking the administration of
estates as executors and trustees (d) providing of safe deposit vaults
1.(a), (b) and (c) only 2.(b), (c) and (d) only 3.(a), (c) and (d) only 1.All of the above
4. RBI can make application to High Court for winding up of a banking company if (a) government directs RBI
to do so (b) company fails to maintain minimum paid-up capital and reserves as per Sec 11 of BR Act (c) RBI
has prohibited the bank to accept fresh deposits u/s 354 of BR Act (d) bank has failed to remain entitled to
carry on banking activities
1.Only (a), (b) and (d) 2.Only (a), (c) and (d) 3.(b), (c) and (d) 4.All of the above III
5. The'fit and proper criterion is used by companies

1.while conducting the shareholders' meeting
2.while appointing directors
3.while appointing the managing director
4.passing resolutions by the board members
9. RBI can issue direction to banks u/s 21 and u/s 35-A of Banking Regulation Act for
(a) Section 21 in public interest (b) Section 35-A in public interest (C) Section 21 relating to loans (d) Section
35-A relating to loans
1.Only (a) and (b) 2.Only (a) and (d) 3.Only (b) and (c) 4.Only (c) and (d)
10. If a borrower has been outside India for some time, for the purpose of calculation of limitation, that
period shall be
1.included
2.included if bank could not prove his absence
3.excluded
4.excluded if the bank could prove his absence
Consumer
1.For appealing to State commission, a statutory deposit of ..... % of the award is to be made by the
appellant/opposite parties
a. 10 % b. 25 % c. 50 % 4. 75 %
2. As per Section 9 of BR Act, bank can hold immovable property up to ... years
a. 5
b. 7
c.10
d. 15
4. Mr. Ahad lost a FD and requested the bank to reissue duplicate FD. Bank issues it. What is the role of Mr.
A here?
a. Creditor b. Debtor c. indemnified d. indemnifier
5. The term Currency defined under FEMA does not include ......
a. Letter of credit b. Travelers cheque c. Promissory Notes d. Bonds and debentures
6. Master A has been admitted to the benefit of partnership firm on 02.01.2021. Master A become Major on
02.05.2021 and he gave a public notice on 05.08.2021 about his interest to continue as a partner. Mr. A is
personally liable to third parties for all the act of the firm w.e.f ......
a. 02.05.2017 (date of becoming Major)
b. 05.08.2017 (date of public notice)
c. 02.01.2017 (date of admission)
d. 05.02.2017 (date of completion of six months)
7. Minimum paid-up share requirement for a private company is………. for a public company is .. capital
a. 1 lakh, 2 Lakhs b. 1 Lakh, 5 Lakhs c. 2 Lakhs, 5 Lakhs d. No minimum paid-up capital required
8. A letter of credit that partially pay the beneficiary before the goods are shipped or the services are
performed is called
(a) Green clause letter of credit
(b) Red clause letter of credit
(c) Deferred payment letter of credit
(d) Revolving letter of credit
1. What is the pecuniary jurisdiction (maximum value of the goods or services and the compensation
claimed) of the district Forum under Consumer Protection Act, 1986?
a. Rs. 10 lac b. Rs. 20 lac c. Rs. 05 lac d. Rs. 08 lac
3. Every Chairman of the Board of Directors and Managing Director of a banking company shall be in the
whole-time employment and shall hold office for maximum period of not exceeding ......
a. 3 years b. 5 years c. 7 years d. 9 years
4. Which of the following statements correct regarding the Jurisdiction and power of Debt Recovery
Tribunal?
(0) A decree passed by the civil court can be executed by the tribunal (ii) A person heading of the office of
the Appellate Tribunal can transfer any case from one Tribunal to other Tribunal within his Jurisdiction (iii)
For the matter for which Tribunals are empowered, the civil Courts have no jurisdiction (iv) There is remedy
available against the order passed by the Appellate Tribunal
a. (i) and (ii) only
b. (i), (iii) and (iv) only
(ii) and (iii) only
(i), (ii)and(iii) only
5. Which of the following statements are appropriate?

(1) Capital clause of the MOA mentions about the amount of capital a company will be authorized to raise
(ii) Main objective clause and other objective clause of(MOA are not interchangeable (iii) Article of
Association must be filed by unlimited companies also (iv) The AOA can be altered by a special resolution
a. (i) and (ii) only b. (ii) and (iii) only c. (i), (ii) and (iii) only d. (i), (ii),(iii) and (iv) only
6. Which of the following mortgage with the value of Rs. 100 or above is not compulsory registered under
Transfer of Property Act?
a. English mortgage
b. Usufructuary mortgage
c. Simple mortgage
d. Mortgage by deposit of the title deeds
7. Which of the following banks is called the negotiating bank?

a. the bank that verifies the apparent authenticity of LC
b. the bank that makes the payment to the beneficiary on receipt of documents as mentioned in LC
c. the bank that guarantees the payment to the beneficiary in case the opening bank does not pay
d. the bank that purchases the documents at a discount, if these are not drawn as per terms of LC
8. The minimum and maximum number of members in a private company can be ......
a. 2 & 50 b. 2 & 200 c. 5 & 50 d. 5 & 200
1. After the Mardia chemicals case, the government brought about an amendment stipulating the deposit
amount for making an appeal under SARFAESI Act, 2002. Accordingly the amount to be deposited generally
is ......
a. 10% b. 25% c. 50% d. 75%
2. Out of the total number of Directors of a banking company, not less than 2 shall be persons having special
knowledge or practical experience in respect of ...... (i) agriculture and rural economy, (ii) co-operation, (iii)
small-scale industry
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
3. The maximum number of directors in a private company can be ...... Public

a. 3 b. 5 c. 12 d. 15
4. All the offences under the FEMA are considered as which of the following type? (0) Civil Offence, (ii)
Criminal Offence
a. Only (i) b. Only (ii) c. Either (i) or (ii) d. Both (i) and (ii)
5. If there is delay in getting the registration with Central Registry, Central Registrar can condone the delay
up to ...... after initial period of 30 days and allow the registration, under SARFAESI Act.
a. 7 days b. 15 days c. 30 days d. 60 days
6. A contract of indemnity differs from a contract of guarantee in the following ways ...... (i) there are 2
parties in indemnity and 3 in case of guarantee, (ii) the liability in case of indemnity is contingent and in case
of guarantee it is subsisting, (iii) in case of indemnity there is only one contract but in case of guarantee
there are three contracts
(i), (ii) and (iii)
7. Which of the following is not correct in case of contract of indemnity and guarantee?
a. Contract of Indemnity is a contingent contract
b. In the case of guarantee, the liability of the guarantor is co-extensive with that of the debtor
c. An indemnity is for the reimbursement of loss
d. A guarantee is for bearing the loss that is caused to the principal debtor
8. In case of differences between pledge and bailment, which of the following is/are correct? (i) In Bailment,
delivery of goods for a special purpose, (ii) In Pledge, delivery of goods as a security to debt
a. Only (i) b. Only (ii) c. Either (i) or (ii) d. Both (i) and (ii)
Quasi- Judicial
1. When borrowers are enjoying credit facilities from more than one bank, banks should obtain a regular
certification by a professional regarding compliance of various statutory prescriptions. Such certification
should be preferably from:
a. Company Secretary only
b. Chartered Accountant only
c. Cost Accountant only
d. any of these
2. What is the object of introducing the Banking Ombudsman Scheme, 2002?

a. For effective monitoring of NPA accounts in the banks.
b. It is RBI agency to regulate the disputes amongst the banks.
c. To enable resolution of complaints relating to banking services.
d. For executing the orders passed by DRT
3. Can the Banking Ombudsman undertake any other work than of his office?
a. Yes, as the appointment of Banking Ombudsman is honorary.
b. Yes, if RBI permits can undertake honorary work.
c. No
d. Yes, if the Banking Ombudsman can handle both the jobs property
4. When the Rules, framed by the Central Government, under the Act get validity?
a. After the Appellate Tribunal of DRt approves them.
b. On Supreme Court approving the same.
c. Immediately on framing of the Rules by the government and notifying the same.
d. When the both the house of Parliament approve the Rule so framed.
5. Cooperative banks have to prepare their balance sheet and profit and loss account in the forms setout in
the Third Schedule to
a. Banking Regulation Act
b. Reserve Bank of India Act.
c. State cooperative Society Act
d. None of the above
6. As per the laws existing today, the mortgaged security cannot be sold without Court intervention. Is this
correct?
a. Yes, Court intervention is required as per the provisions of the Transfer of Properties Act.
b. No, SARFAESI Act, 2002 has now made enabling provisions.
c. Yes, Since the Contract Act has made no provision about any Court intervention.
d. No, Due to recent amendments in the Transfer of Property Act no Court intervention is required.
7. The features of the award awarded by banking ombudsman are;

a. it is binding on the banks
b. it is not binding on the complaints unless be accepts it
c. the complaint is free to seed alternative remedies available under general law
d. all the above
8. The most important characteristic of pledge is ....Of goods.
a. Assignment
b. Lien
c. Possession
d. None of these
9. Hypothecation is an implied.... in cases where constructive possession of goods is given.

Lien
Pledge
Assignment
None of these
10. Individual borrowers are governed by the ......

a. RBI Act b. BR Act c. Indian contract Act d. None of these
1. ...... can be a subject matter of sale of goods Act.

(i) Trademark, (ii) patent, (iii) goodwill
2. The person to whom proposal is made is called ...... (i) Promisor, (ii) Promisee
a. Only (0) b. Only (ii) c. Either (i) or (ii) d. Both (i) and (ii)
3. What are the qualifications to be appointed as the member of the consumer dispute redressal
forum/commission?
(i) be not less than thirty-five years of age,
(ii) possess a bachelor's degree from a recognised university,
(iii) be persons of ability, integrity and standing
a. Only (i) and (ii) b. Only (i) and (iii) c. Only (ii) and (iii) d. (i), (ii) and (iii)
4. A person passes through legal disability can file suit, make application ......
a. Within limitation period
b. Out of limitation period
c. Depends upon courts discretion to permit such a litigant to do so
d. none of the above
5. Garnishee Order in the name of A & B will attach deposits in the name of ......
(i) A alone, (ii) B alone, (iii) A & B jointly
6. As per Section 2(1)(c) of Consumer Protection Act 1986, 'complaint' means any allegation in writing made
by a complainant that ...... (i) an unfair trade practice or a restrictive trade practice, (ii) the goods/services
bought/ hired suffer from one or more defects/deficiency, (iii) goods/services which are hazardous or likely
to be hazardous to life and safety of the public when used
7. As per section 2(1)() of Consumer Protection Act 1986, 'manufacturer' means a person who ...... (i) makes
or manufactures any goods or part thereof, (ii) does not make or manufacture any goods but assembles
parts thereof made or manufactured by others, (iii) puts or causes to be put his own mark on any goods
made or manufactured by any other manufacturer
a. Only (i) and (ii) b. Only (i) and (iii) c. Only (ii) and (iii) 1. (i), (ii) and (iii)
8. A person shall be disqualified for appointment as a member of the consumer dispute redressal
forum/commission if he ....... (i) has been convicted and sentenced to imprisonment for an offence which
involves moral turpitude, (ii) is of unsound mind and stands so declared by a competent court, (iii) has been
removed or dismissed from the service of the Government or a body corporate owned or controlled by the
Government
c.Only (ii) and (iii)
9. The term "Fraud" means ......m (i) Active concealment of fact with knowledge and belief of the fact, (ii)
Doing any act fitted to deceive
a. Only (i)
b. Only (ii)
c. Either (i) or (ii)
d.Both (i) and (ii)
1. When the is in possession of goods, a lien can be exercised.

a) Buyer
agent of the buyer
seller
carrier
2. The sub-agent is responsible for his normal acts to Principal

A) Principal
B) Agent
Agent
C) Both Principal and agent
D) None of these
3. Where the signature of the drawer of a cheque is not genuine, such a cheque is called ......
A)post-dated cheque
B) forged cheque
c) clearing cheque
D) stale cheque
4. Section 138 'states that drawer of a cheque is liable to be punished if the cheque is bounced for ......
a. not crossing
b. alteration in figures
c.being postdated
d.insufficient fund
5. When a drawer draws a cheque without keeping sufficient balance and if the cheque is dis-honoured for
insufficient funds, the drawer is punishable with and imprisonment which may extend to ...... and or a fine.
a. two months
four month
one year
one of these
6. A person who is indemnified can rÄ™cover ...... for claiming the damages.
a) Damages b) Costs c) Both a and b d) None of these
7. A person who makes a proposal is known as ......

A) promisor B) principal debtor C) surety D) guarantor
8. A person is said to be competent to contract if ......

a. he is a major
b. he is of sound mind
c. he is a major and of sound mind
9. The maximum number of members in a public company can be ......
A) 12 B) 50 C) 51 D) No Limit
10. Persons entered into partnership are collectively called as

A) Partners B) Firm *) Either a or b )) None of these
1. A system of a secure key pair consisting of a private key for creating a digital signature and a public key to
verify the digital signature, is called:
a. digital signature
b. asymmetric crypto system
c. electronic monitoring
d. e-commerce
2. Which of the following is an exception of doctrine of indoor management, i.e. the person dealing with the
company can suffer loss?
a. where a person dealing with a company has
actual knowledge of internal irregularity
b. where the situation is such that a person dealing with a company could have obtained information about
internal irregularity
c. where an official of the company is acting unauthorisedly and the person dealing with the company has
information about this.
d.all the above
3. Which of the following can become members of a company?

a. a partnership firm
b. an insolvent person
c. a person of unsound mind
d. a company
4. A person is(presumed to have gone through the Articles of Association and Memorandum of Association
available with the office of RoC although he might have actually not laid his hands on these documents. This
is called doctrine of:
a) ultra-vires b) constructive notice c) indoor management d)outdoor management
5. If a banking company is found to be not complying with requirement of Prevention of Money Laundering
Act 2002, the Director can impose a fine of:
a) Rs.10000
b) Rs.20000
c) Minimum Rs.10000 and maximum Rs. 1 lac
d) Minimum Rs.10000 and maximum Rs.5 lac
6. The person given licence to issue digital signature certificate u/s 24 of Information Technology Act is
called:
a. Certifying authority
b. DGC Authority
c. Digital Signature Controller
d. Controller of Certifying Authorities
7. The transfer of interest in the immovable property by a person, to secure payment of loan obtained, is
called:
a) mortgage
b) assignment
c) pledge
d) hypothecation
8. Identify the following types of mortgages 1) The sale is ostensible and not real. (2) The mortgagee has the
right to receive rent on the property mortgaged (3) Mortgage is put through in a Notified area (4) Private
Sale possible.
a. Simple Mortgage/English Mortgage/Equitable Mortgage/Anomalous Mortgage
b. Mortgage by way of Conditional Sale/Usufructuary Mortgage/Mortgage by way of Deposit of Title
deeds/English Mortgage
c. Registered Mortgage/English Mortgage/Equitable Mortgage/Simple Mortgage
d. Mortgage by way of Conditional Sale/Equitable Mortgage/Usufructuary Mortgage/English Mortgage
9. In a Bill of exchange normally who is not the Drawee? (i) The person ordering for payment, (ii) The person
directed to pay, (iii) The beneficiary
10. Under the banking ombudsman scheme a complaint can be lodged with the ombudsman ......
a. within in the specified jurisdiction.
b. with the head office of the bank
c. with the consumer of the bank
d. any of the above
1. Which of the following statement is correct?

a. A servant or an agent who agrees to receive, in addition to
or in place of his regular remuneration, a portion of profits of business, is considered to be a partner
b. A widow or child of a deceased partner who receives a portion of profits as annuity, is considered to be a
partner
C. A seller of goodwill who is given a share in the profits of a business he has sold, is considered to be a
partner
A joint-owner of property who receives a share of profit sing from the property, is not considered to be a
partner
2. An L/C which can be amended or cancelled by the Issuing Bank at any time prior to its expiry without
notice to the Beneficiary is called alan ......
a. Confirmed L/C
b. Irrevocable L/C
c. Revolving L/C
d. Revocable L/C
4. Which of the functions of public and private key match:

a. private key verifies the digital signatures and public key creates the digital signature
b. public key verifies the digital signatures and private key creates the digital signature
c. private key and public key are used to verify the digital signatures
d.private key and public key are used to create the ital signatures
5. As per Information Technology Act 2000, the penalty for damage to computers, computer systems etc.
has been fixed for damages up to ...... by way of compensation to affected person:
Rs. 1 lac
Rs.10 lac
Rs.100 lac
Rs.1000 lac
6. Which of the following exercises control over banks from the opening to their winding up:
a. Reserve Bank of India and SEBI
b. SEBI and Govt. of India, NABARD
c. Govt. of India and RBI
d. Govt. of India, RBI and SEBI
7. The banks in India, fall in which of the following category:
a. statutory corporations and private companies
b. companies and cooperatives
c. statutory corporations, companies and cooperative societies
d. companies, public sector banks, public sector companies
8. As per definition uls 5 (b) of Banking Regulation Act 1984, which of the following is not correct in the
context banking business:
a. accepting deposits and giving loans out of
such deposits
b. deposits are accepted from public
c. banks cannot refuse to accept deposits whosoever offers
d.accepting deposits and investing such posits
9. The buyer or importer who procures a letter of credit from his banker is called ......
a. opener of the credit b. beneficiary of the credit c. negotiator of the credit d. none of these
10. The maximum number of directors in a private company can be ......

A) 3 B) 7 C) 12 D) 5 e No
1. Who among the following are not included in the Central Board of directors of RBI ?
a) Governor b) Deputy Governor c) Directors nominated by Govt d) Executive Director
1. Who among the following are not included in the Central Board of directors of RBI ?
a) Governor b) Deputy Governor c) Directors nominated by Govt d) Executive Director
2. Which of the following statements is correct regarding banking ombudsman scheme?

a. it is an opportunity to public to redress their grievances of banking services
b. it is an additional grievances settlement mechanism
c. it is not substitution of consumer protection ant. Act
d. all the above
The Bankey Book Evidence Met 4. Evidence means:

a. All statements presented before a court by way of witnesses.
b. It is in relation to a matter of fact under inquiry.
c. Such statements are called oral evidence.
d. All the above
5. A lease for agricultural or manufacturing purpose is deemed to be a ......

a. month to month
b. year to year
c. with infinite period
d. week to week
7. A minor can be ...of a partnership firm

a. partner of the firm
b. admitted to the benefits
c. either a or b
d. neither a not b
8. Who implemented the banking ombudsman scheme?

a. Indian bank association.
b. reserve bank of India.
c. national institute of bank management
d. national consumer commission
9. Secured loans are normally secured by ......

a. Pledge
b. hypothecation
c. mortgage
d. All of the above
10. When a person by his words or conduct appoints someone as his agent it is known as agency by ...
a. promise
b. conduct
c. action
d. estoppel
1. A system of a secure key pair consisting of a private key for creating a digital signature and a public key to
verify the digital signature, is called:
a. digital signature
b. asymmetric crypto system
c. electronic monitoring
d. e-commerce
2. Which of the following is an exception of doctrine of indoor management, i.e. the person dealing with the
company can suffer loss?
a. where a person dealing with a company has actual knowledge of internal irregularity
b. where the situation is such that a person dealing with a company could have obtained information about
internal irregularity
c. where an official of the company is acting unauthorisedly and the person dealing with the ompany has
information about this
d.all the above
3. Which of the following can become members of a company?
a. a partnership firm b. an insolvent person c. a person of unsound mind d. a company
4. A person is presumed to have gone through the Articles of Association and Memorandum of Association
available with the office of RoC although he might have actually not laid his hands on these documents. This
is called doctrine of:
a) ultra-vires
b) constructive notice
c) indoor management
d) outdoor management
5. If a banking company is found to be not complying with requirement of Prevention of Money Laundering
Act 2002, the Director can impose a fine of:
a) Rs.10000
b) Rs.20000
c) Minimum Rs.10000 and maximum Rs.1 lac
d) Minimum Rs.10000 and maximum Rs.5 lac
6. The person given licence to issue digital signature certificate u/s 24 of Information Technology Act is
called:
a. Certifying authority
b. DGC Authority
c. Digital Signature Controller
d. Controller of Certifying Authorities
7. The transfer of interest in the immovable property by a person, to secure payment of loan obtained, is
called:
a) mortgage
b) assignment
c) pledge
d) hypothecation
9. In a Bill of exchange normally who is not the Drawee? (i) The person ordering for payment, (ii) The person
directed to pay, (iii) The beneficiary
10. Under the banking ombudsman scheme a complaint can be lodged with the ombudsman ......
a. within in the specified jurisdiction.
b. with the head office of the bank
c. with the consumer of the bank
d. any of the above
PMLA
1. Imprisonment for money laundering can be ...... years

a. 2 to 5
b. 2 to 7
c. 3 to 5
d. 3 to 7
2. Regional rural banks operate in .......

a. a notified area
b. the whole of a state
c. only a district
3. Which of the following is not a statutory right of member of a company: Member

a. to transfer shares
b. to receive copies of annual accounts of the company
c. to receive dividend if declared
d. priority to have new shares offered if company proposes to increase capita
4. Under RTI Act 2005, the information can be accessed under control of a public authority. For this
purpose, the public authority means an authority established
a. by or under the Constitution
b. by any other law made by the Parliament of India or by the State legislature
c. by any notification issued or order made by the appropriate govt.
d.all the above
5. Expand - FSLC
a. Financial Security Lending Reforms Commission
b. Financial Sector Lending Reforms Commission
c. Financial Security Legislative Reforms Commission
d. Financial Sector Legislative Reforms Commission
6. Pledge means ...... of goods for purpose of securing a payment of debt or performance of promise.
a. Lien
b. Bailment
c. Assignment
d. None of these
7. What are the exceptions of Evidence Act?
a. a certified copy of the original document can be produced in the court of Law if it is permitted by any law.
b. The Bankers Books Evidence act. Is also an exception to the Evidence Act.
c. Both (a) and (b).
8. What is a certified copy?)

a. A copy of any entry in the Books of a Bank along with a certificate that copy is a True Copy.
b. That such entry is contained in one of the Books of the Bank.
c. And such Books are still under the custody of the Bank.
d. A copy which includes all the above information.
9. Legal proceeding under Bankers Books Evidence Act, signifies:

a. any proceeding or inquiry in which evidence is given
b. an arbitration
c. any investigation under the code of Criminal Procedure, 1973.
d.All the above.
10. If the principal debtor and creditor change the terms of guarantee without the consent of surety, the
surety will be discharged from the liability for....
a. all the debts
b. any future debts
c. either a or b
d. both a and b
1. In case of safe deposit libcker the relation between Bank and Customer is Bank ...... and Customer ......
a. Agent, Principal
b. Lessor, Lessee
c. Creditor, Debtor
d. Debtor, Creditor
2. When a Bank lends money, the relation between Bank and Customer is Bank .... and Customer ......
a. Agent, Principal
b. Lessor, Lessee
c. Creditor, Debtor
d. Debtor, Creditor
3. The Articles of Association of a private company must state (which one is not required):
a. restriction regarding issue of prospectus
b. restriction regarding non-acceptance of deposits from public
c. restriction regarding no. of shareholders
4. To distinguish the Memorandum of Association from Articles of Association, which statement is correct:
a. Memorandum of Association is subordinate document
b. Articles of Association is a subordinate document
Articles of Association is dominating document
Memorandum of Association and Articles of asociation, both are dominant documents
5. If company commits an act of contravention relating to it can be

a. Memorandum of Association, ratified
b. Articles of Association, cannot be ratified
c. Memorandum of Association, cannot be ratified
6. Which of the following, saves the outsiders, by ensuring that his contract is not inconsistent with the
Memorandum of Association and Articles of Association?
a. doctrine of ultra-vires
b. doctrine of constructive notice
c. doctrine of indoor management
d. doctrine of outdoor management
7. If there is some ultra-vires transaction undertaken by the directors of the company, for the company:
a. it can be ratified by the Board of Directors
b. It can be ratified by the shareholders
c. it can be ratified by the Board of Directors or Shareholders
d. It cannot be ratified either by Board or Shareholders.
8. If a minor is recorded as member by a company, by mistake (which of the following is wrong):

a. company has a right to rescind the transaction
b. the minor has a right to rescind the transaction
c. if the minor is allotted shares and his name is entered as member, he is liable to the company
none of the above
9. A person dealing with a company cannot take the plea that he had no notice of contents of Articles of
Association and Memorandum of Association due to:
a. doctrine of ultra-vires
b. doctrine of constructive notice
c. doctrine of indoor management
4. doctrine of outdoor management
10. In which of the following circumstances, a person does not cease to be a member of a company?
a. if the company is wound up
b. if the person becomes insolvent
c. if the person dies
1. A complaint can be lodged in relation to any goods or services in the following circumstances;
a. loss or damage suffered on account of unfair trade practice.
b. the goods suffer from one a more defects.
c. the services suffer from deficiency in any respect.
d. all the above
2. Reserve Bank was constituted under ......

a. BR Act b. RBI Act c. Companies Act d. None of these
3. As per the transfer of Property Act, 1882, a person is an ostensible owner of an immovable property
where he becomes interested therein by ......
(i) Express consent, (ii) Implied consent
a. Only (i)
b. Only (ii)
c. Either (i) or (ii)
d. Both (i) and (ii)
4. The right to alienate the mortgaged property without intervention of the court is available to the
mortgagee in the case ......
(i) Where the mortgagee is government, (ii) Where there is English mortgage, (iii) Where there is mortgage
by conditional sale
Only (i) and (iii)
Only (ii) and (iii)
5. The officer designated by the public authorities in all administrative units or offices under it to provide
information to the citizens requesting for information under the Act is known as ......
a. Appellate Authority
b. Chief Information Commissioner (CIC)
c. Public Information Officer (PIO)
d. Assistant Public Information Officer
6. Who of the following will be the members of the GST Council? (0) Union Finance Minister, (ii) Union
Minister of State in charge of Revenue or Finance, (iii) Chief Ministers of States
7. Goods that are identified at the time of contract of sale is called ...goods. (i) Specific Goods, (ii)
ascertained goods, (iii) clear Goods
8. As per Section 9 of BR Act, bank can hold immovable property up to years

a. 5 b. 7 c. 10 d. 15
9. How many persons are involved in contract of indemnity?

a. 1 b. 2 c. 3 d. 4
10. The term Currency) defined under FEMA does not include ......
a. Letter of credit
b. Travelers cheque
c. Promissory Notes
d. Bonds and debentures
1. DRAT is headed by ......
a. Secretary b. Registrar c. Principal Officer d. Chairperson
1. DRAT is headed by ......

a. Secretary b. Registrar c. Principal Officer d. Chairperson
3. Places where the mortgage by Deposit of title deeds can be created are generally notified by the ......
a. Registrar of companies
b. Center Government
c. Registrar of Assurances
4. Absolute possession of property is not given to the mortgage in case of ......

(i) Simple Mortgage (ii) Mortgage by Deposit of title Deeds (iii) English Mortgage
a. (i) and (ii) Only
b. (ii) and (iii) Only
c. (i) and (iii) Only
d. (i), (ii) and (iii) Only
5. Which one of the following statements is correct with reference to FEMA in India?
a. Enforcement Directorate have the power to arrest persons for violation of foreign exchange rules
b. Under FEMA, violation of foreign exchange rules has ceased to be a criminal offence
c. FERA was replaced by FEMA on 01.06.2010
6. SARFAESI Act, 2002 is not applicable in the cases? (i) Any security interest not exceeding 1 lac
rupees, (ii) Any security interest in agriculture land, (iii) Pledge of movable as per Section 172 of Contract
Act
Only (ii) and (iii)
7. In civil suit to which bank is not a party, one of the parties has produced the certified copy of the books of
account. One party to the suit wants to call the bank officer as a witness, to prove the contents of copy. Can
it be done in the normal Course?
a. Yes, as if it is right of the party to get it reaffirmed in evidence
b. No, As the certified copy as prima facie document that is admissible as evidence
c. No, Unless the bank voluntary to do so
d. Yes, if the party obtain consent of the bank
8. Which of the following statements are appropriate? (i) Capital clause of the MOA mentions about the
amount of capital a company will be authorized to raise (ii) Main objective clause and other objective clause
of MOA are not interchangeable (iii) Article of Association must be filed by unlimited companies also (iv)
The AOA cannot be altered by a special resolution with approval from the NCLT
a. (i) and (ii) only
b. (ii) and (iii) only
c. (i), (ii) and (iii) only
d. (i), (ii), (iii) and (iv) only
9. Which of the following mortgage with the value of Rs. 100 or above is not compulsory registered under
Transfer of Property Act?
a. English mortgage
b. Usufructuary mortgage
c. Simple mortgage
d. Mortgage by deposit of the title deeds
10. In case of indemnity, which type of liability exists?

a. subsisting
b. continuous
c. contentment
d. None of the the above
Indian Partnership Act, 1932
2. In partnership, partners liabilities are

A) Unlimited
B) Limited to the capital of the business
C) Limited
D) Both A and C
3. Is a partnership firm considered as a separate legal entity?

A) No B) Yes C) Partially Yes
4. What is the partnership written agreement known as?
A) Partnership contract
B) Agreement
C) Partnership deed
D) Partnership Act
5. In absence of a partnership agreement, what will be the percentage of profit sharing ratio between the
partners?
A) Unequal
B) Equal
C) It will depend on the experience of a partner
D) It will depend on a partner's capital
6. Which types of partnership have no agreement in terms of the duration of partnership?

A) Partnership-at-will
B) Limited partnership
C) General partnership
D) Particular partnership
7. Partnership is the relation between persons who have agreed to share the profits of a business carried on
by all or any of them acting for all. Does it mean that losses are not shared:
a. A minor may be admitted in partnership, only for the profits, but he cannot share in losses.
b. It also depends on the partnership agreement. A person may share the profits but may not share in
losses.
c. Sharing of profits also include losses (negative profits)
All of the above.
9. What are the right of partners after dissolution:

a. To have the surplus distributed among the partners or their representatives according to their rights.
b. To have business wound up after dissolution
c. To have the property of the firm applied in payment of the debts and liabilities of the firm.
d. All of the above
10. In what circumstances a partner may retire:

a. In accordance with an express agreement by the partners
b. Where the partnership is at will, by giving notice in writing to all the other partners of his intention to
retire.
c. With the consent of all the other partners
d. All of the above.
The Sales of Goods Act, 1930
1. The term 'possession of goods' means

A. ownership of goods
B. custody of goods
C. both (a) & (b)
D. none of these
2. The goods which are to be produced by the seller after the contract of sale is made are known as
A. contingent goods
B. unascertained goods
C. future goods
D. none of the above
3. A stipulation in a contract may be

A. condition
B. warranty
C. neither (a) & (b)
D. both (a) & (b)
4. When the buyer's right of quiet possession of goods is affected by the seller's fault, the buyer can
A. reject the goods compensatz
B. claim for damages
C. repudiate the contract
D. all of the above
5. The general rule is that the buyer of goods is responsible for his choice or selection. This doctrine is
A. ignorantia juris non excusat
B. quid pro quo
C. nemo dat quad non habet
D. caveat emptor
6. ABC Ltd. purchased perishable goods from Mohan Bros. by description. Prior to two days from the date of
delivery, the goods get damaged. Which of the following is correct regarding the relief that the seller can
enjoy?
a. Seller is not liable.
b. Seller is partially liable.
c. Contract is void.
d. Contract is voidable.
e. Contract can be avoided by giving voidable option to buyer for contract.
7. An agreement to sell shall be made for which of the following kinds of goods?
a. Existing goods
b. Future goods
c. Intermediate goods
d. Finished goods
e. Perishable goods
8. Which of the following is a stipulation collateral to the main purpose of the contract?
a. Condition
b. Warranty
c. Repair and maintenance
d. Guarantee
e. Replacement
9. Asha purchased goods by making full payment from Minocha Enterprises due to a threat enforced on her
by her husband. Which of the following essential elements of a contract is missing in the contract of sale?
a. Free consent
b. Two parties
c. Consideration
d. Subject matter must be goods
e. Legal formalities
10. Which of the following is an implied condition to sale as per Sale of Goods Act, 1930?
a. Condition as to title
b. Sale by description
c. Condition as to quality or fitness
d. Condition by sample
e. All of the above
1. In agreements of a purely domestic nature, the intention of the parties to create legal relationship is
(a) to be proved to the satisfaction of the court.
(b) presumed to exist.
(c) required to the extent of consideration.
(d) not relevant at all
2. Over a cup of coffee in a restaurant, X Invites Y to dinner at his house on a Sunday. Y hires a taxi and
reaches X's house at the appointed time, but x fails to perform his promise. Can Y recover any damages
from X?
(a) Yes, as y has suffered
(b) No, as the intention was not to create legal relation.
(c) Either (a) or (b)
d) None of these
3. If only a part of the consideration or object is unlawful, the Contract is

(a) Valid to the extent the same are lawful
(b) Void to the extent the same are unlawful
(c) Valid as a whole
(d) Void as a whole.
4. A Contract which is formed without the free consent of parties, is .......

(a) Valid
(b) Illegal
(c) Voidable
(d) Void ab initio
5. A promise to give money or money's worth upon the determination or ascertainment of an uncertain
event is called ..............
(a) Wagering Agreement
(b) Unlawful Agreement
(c) Illegal Agreement
(d) Voidable Agreement
6. Which of the following is the essential ingredient of contract of indemnity:

(a) Contract to make good the loss
(b) Loss must be caused to the indemnity holder.
(c) Loss may be caused by promiser or any other person
(d) All of the above.
7. A, being in debt to B, the money lender of his village, contracts a fresh loan on terms which appear to be
unconscionable. This will be termed as:
a. Fraud
b. Coercion
c. Undue influence
d. Misrepresentation
9. Where both the parties to any agreement are under a mistake as to a matter of fact essential to the
agreement,
a. The agreement is voidable.
b. The agreement can't be enforceable at law.
c. The agreement is void.
d. The agreement is not void.
9. Where both the parties to any agreement are under a mistake as to a matter of fact essential to the
agreement,
a. The agreement is voidable.
b. The agreement can't be enforceable at law.
c. The agreement is void.
d. The agreement is not void.
10. What is a sound mind for the purposes of contracting:

a. A person is said to be of sound mind for the purposes of making a contract, if, at the time when he makes
it, he is capable of understanding it and of forming a rational judgement as to its effect upon his interest.
b. A person is said to be of sound mind for the purposes of making a contract, if, at the time when he makes
it, he is capable of understanding it.
c. A person is said to be of sound mind for the purposes of making a contract, if, he is capable of
understanding it and of forming a rational judgement as to its effect upon his interest.
d. A person is said to be of sound mind for the purposes of making a contract, if, at any time when he makes
it, he is capable of understanding it and of forming a rational judgement as to its effect upon his interest.
1. A contract of indemnity may be called as:

a. Quasi contracts
b. Contingent contracts
c. Good contracts
d. None of the above.
2. A contract to perform the promise or discharge the liability of a third person in case of his default is called
as:
a. Contract of guarantee
b. Contract of agency
c. Contract of bailment
d. Contract of indemnity
3. In a contract of indemnity there are:

a. Two parties
b. Three parties
c. Four parties
4. In a contract of guarantee there are:

a. Two parties
b. Three parties
c. Four parties
5. The person in respect of whose default the guarantee is given is called:

a. The creditor
b. The surety
c. The principal debtor
6. The person whose loss is to be made good is called the:

a. Surety
b. Indemnifier
c. Creditor
d. Indemnified/Indemnity holder
7. In the contract of guarantee there is/ are:

a. One contract
b. Two contract
c. Three contract
d. Four contract
8. A guarantee which extend to a series of transactions is called:

a. Guarantee in series
b. Continuing guarantee
c. Serial guarantee
d. Step by step guarantee
9. Anything done or any promise made for the benefit of the principal may be to the surety for giving
guarantee:
a. Small consideration
b. Sufficient consideration
c. No consideration
d. Consideration
10. A surety on discharging the debt due by the principal debtor steps into the shoes of the:
a. Agent
b. Bankers
c. Creditor
d. Principal
The Company Act, 2013
1. Which of the statement is not correct as regards a company

a. It can sue and be sued in its own name.
b. It is not a citizen.
c. It does not have perpetual succession.
d. Its an artificial person.
2. Which statement is not applicable to a public company

a. Must issue a prospectus or
b. Minimum 7 persons statement in lieu of the prospectus.
c. No Minimum capital is necessary.
d. Does not require registration.
3. Property of the company belongs to

a. Members
b. Company
c. Share holders
d. Promoters
4. The doctrine of indoor-management comes to the aid of Help

a. The Company
b. The outsider, dealing with the company.
c. The Central Government
d. The Company Law Board
5. The doctrine of Constructive notice can be invoked by

a. The Company Law Board
b. The Central Government
c. Ministry of Company affairs
d. The Company
6. If a new company get registered with a name which resembles the name of existing company then it
should apply to whom?
A. NCLT
B. SEBI
C. ROC
D. None of the above
7. What is the minimum number of directors that one person companies should have as per provisions of
Companies Act, 2013?
a. Three
b. Two
c. One
d. Fifteen
8. What is the maximum number of directorship that a person can hold?
a. 10
b. 15
c. 18
d. 20
9. A Prospectus issued by the financial institutions or bank for one or more issue of the securities or class of
securities specified in the prospectus is called ........
a. Deemed Prospectus,
b. Red herring Prospectus
c. Shelf Prospectus
d. Abridged Prospectus
FEMA & PMLA

1. All the offences under the FEMA are Ceriminel ottenue cor often considered as which of the following
type? State us 'X'
a. Civil Offence
b. Criminal Offence
c. Both Civil and Criminal Offence
2. Name the authority that regulates the Foreign exchange in India?

a. Enforcement Directorate
b. RBI
c. Finance Ministry
d. SEBI
4. Who have been authorised by RBI to deal in foreign exchange transactions?

1.Authorised Agency
2.Authorised People
3.Authorised Company
4.Authorised Dealer
3. Who investigates the contravention of provisions of FEMA 1999?

a. Enforcement Directorate
b. RBI
c. Finance Ministry
d. SEBI
5. Mr. E, an Indian National desire to obtain foreign exchange for the Remittance pf US 2,00,000 for
payment as prize money to the winning team in a Hockey Tournament to be held in Australia. Referring to
the provisions of the Foreign Exchange Management Act, 1999, state the kind of approval required?
a. CG
b. RBI
c. Prohibited transaction
d. Permission transaction
6. Financial institutional as defined under Section 20) of Prevention of Money Laundering Act, 2002 does
NOT include?
i. a chit fund company ii. a housing finance institution nniii. a payment system operator n
iv. a non-banking financial company n nnnv. Department of Posts in the Government of India
(A)v only
(B)iv only
(C)ii, iv and v only
(D)None of the above
7. Whoever commits the offence of moneylaundering shall be punishable with rigorous imprisonment for a
term which shall not be less than three years but which may extend to?
(A)Three Years (B)Five Years (C)Seven years (D)Ten years
a. Rs. 50000 and above
b. Rs. 1 lac and above
c. Rs. 10 lac and above
d. above Rs. 10 lac
9. Money laundering is related to---------

A. To reduce the number of families which lives below poverty line
B. To reduce the NPA of Banks
c. To reduce the Black Money
D. To reduce the umemployment rate.
E. None of these
10. What are the powers available to the Investigating Officers under the Act ?
A. To conduct survey of a place (Section 16)
B. To conduct search of building, place, vessel, vehicle or aircraft & seize records & property (Section 17)
C. To conduct personal search (Section 18)
D. All of these
RTI Act 2005 & IT Act 2000
1. Right to information includes the right to obtaining information in the form of:
Diskettes
Floppies
Tapes
All the above
2. The RTI Act gives right to seek information from the following:
private companies
MNCs
public authorities
associations
3. Who can file an RTI?

a. Only Indian Nationals
b. Only Foreign Nationals
c. Both A and B
4. What is the age criteria to file an RTI application?

a. 18 years and above
b. 45 years and above
c. 16 years and above
d. No age bar
6. Which is the Act which provides legal framework for e-Governance in India
A.IT (amendment) Act 2008
B.Indian Penal Code
C.IT Act 2000
D.None of the above
7. What is the maximum penalty for damage to Computer, Computer systems, unauthorized access,
download of data, infecting with virus, denial of access etc as per Section 43
A.Rs. 50 lakh
B.Rs.1 crore
C.Rs. 5 crore
D.Rs.75 lakh
8. Which is the appeal court on the orders issued by Cyber appellate tribunal?
A.Munsiff Court
B.District Court
C.High Court
D.Supreme Court
10. Information Technology Act, 2000 amended which among the following to make them compliant with
new technologies?
i. Indian Penal Code, 1860 ii. Indian Evidence Act, 1872 iii. Banker's Book Evidence Act, 1891 iv. Reserve
Bank of India Act, 1934
(A)i only
(B)i and iii only
(C)ii, iii and iv only
All the above
The Transfer of Property Act, 1882
1. Which of the following mortgages can be made without writing?

a. Equitable mortgage
b. English mortgage
c. Simple mortgage
d. Usufructuary mortgage
2. Where the principal money secured is one hundred rupees or upwards, a mortgage other than a
mortgage by deposit of the deed can be effected only by
a. registered instrument b. signed by the mortgagor c. attested by at least two witnesses d. all the above
3. The mortgage, in which without delivering possession of mortgaged property, the mortgagor binds
himself personally to pay the mortgage money is known as
a. English mortgage
b. Mortgage by deposit of the title deeds
c. Simple mortgage
d. Anomalous mortgage
4. Under TPA which of the following mortgage with the value of Rs. 100 or above is not compulsory
registrable?
a. English mortgage
c. Simple mortgage
d. Mortgage by conditional sale,
6. In a simple mortgage possession of the mortgaged property

a. is given to the mortgagee
b. is given to the third party as a security
c. remains with the mortgagor
5. The mortgage which involves the absolute transfer of the mortgaged property with a provision for re-
transfer is
a. English mortgage
c. Simple mortgage
d. Mortgage by conditional sale
7. What is Mortgage?
A. A security created on immovable property for a deposit received by a bank
B. A security created on immovable, property for a loan given by a bank
C. A facility created on movable property for a deposit received by a banky
D. A security created on movable property for a loan given by a banky
8. Which of the following properties can be transferred under the Transfer of Property Act, 1882?
A. Salary of a public officer
B. Right to sue
C. both A and B
D. neither A nor B
9. Which of the following are not valid consideration for establishing a lease:
A. Rent partly in money and partly in kind
B. A stipulation to pay government assessment or taxes payable by the lessor
C. A personal agreement by a tenant to pay a certain sum or a certain quantity in kind to the landlord
D. None of these
10. Document is not necessary if value of immovable property is .............

(a) Less than Rs. 1000
(b) Less than Rs. 10000
(c) Less than Rs. 100
(d) Less than Rs. 100000
"SOLVENCY & BANKRUPTCY CODE, 2016
1.Which of the following is true about a Limited Liability Partnership?

1.A Limited Liability Partnership is not amdistinct entity from its partners
2.A Limited Liability Partnership is a legal entity separate from its partners
3.A Limited Liability Partnership is a body corporate
4.Both b and c are correct
2. Which of the following is true about the number of designated partners required in a Limited Liability
Partnership?
1.A Limited Liability Partnership can have at
least two designated partners 2.A Limited Liability Partnership can have at
least three designated partners 3.A Limited Liability Partnership can have at
least seven designated partners 4.A Limited Liability Partnership can have at
least four designated partners
3. What is the exact time limit under which a Limited Liability Partnership must file its annual return with
the registrar?
1. A Limited Liability Partnership must file its annual return within 30 days from the closing of its financial
year
year
year
4. A Limited Liability Partnership must file its annual return within 60 days from the close of its financial year
4. Which of the following is the designated place where a Limited Liability Partnership should maintain its
accounts?
1.A Limited Liability Partnership should maintain its accounts at the branch office
2.A Limited Liability Partnership should maintain its accounts at the corporate office
3.A Limited Liability Partnership should maintain its accounts at the head office
4.A Limited Liability Partnership should maintain its accounts at the registered office
5. Whether a HUF can become partner in LLP:

a. HUF may become partner of LLP provided the Registrar may grant permission in this behalf.
b. No, HUF can't become partner in the LLP.
c. Yes, HUF may become partner of LLP
6. Who shall sign the Statement of Account and Solvency prepared by the LLP:
a. By any one partner, authorised in this behalf
b. By at least two partners, authorised in this behalf
c. By all the partners
d. By the designated partners
7. Who shall fix the remuneration of the auditor:

a. The designated partners shall fix the remuneration
b. As per the procedure laid down in the LLP Agreement.
C. The Registrar may fix the remuneration
d. Both A and B are correct.
8. An individual or body corporate cannot be a partner in a limited liability partnership.

a. Only Body corporate can form LLP
b. Only Individual can form LLP
c. The statement is wrong.
d. The statement is correct.
Bankers Book Evidence Act

The Banking Ombudsman Act
1. The Banking Ombudsman Scheme was introduced under Section 35 A of the * Banking Regulation Act,
1949 by RBI with effect from
a) 1992 b) 1993 c) 1995 d) None of The Above
2. The Banking Ombudsman Scheme was introduced under:

a) Banking Regulation Act, 1935
b) Banking Regulation Act, 1949, n Banking Regulation Act 1949
c) Banking Regulation Act, 1985
d) None of The Above
3. Banking Ombudsman is appointed by
aCentral Finance Minister
b) Reserve Bank of India
c) SEBI
4. Which among the following is incorrect:

a) Banking Ombudsman is a senior official appointed by RBI.
b) The Offices of Banking Ombudsman is mostly situated at State Capitals.
c) All Scheduled Commercial Banks, Regional Rural Banks and Scheduled Primary Co-operative Banks are
covered under the Banking Ombudsman Scheme
5. Banking Ombudsman is appointed for:

a) handling and redress banks complaints against customers' behavior
b) handling and redress customer complaints against deficiency in certain banking services
c) providing decision on important banking operations like - CRR, SLR and MSF etc.
d) None of the Above
7. A bank customer can file a complaint against banking organization if reply is not received from the bank
within a period of_ after concerned bank has received complaint representation:
a) Two Months
b) One Month
c) Three Months
8. Banking Ombudsman charge _ for filing and resolving customer's complaints:

a) Rs. 10,000
b) Rs. 5,000
c) No Fees charge
9. If one party rejects the Banking Ombudsman's decision then:
a) such party have to satisfied with Banking Ombudsman's decision only
b) such party can approach the appellate authority against the Banking Ombudsmen's decision.
c) such party can approach the governor of RBI.
10. Appellate Authority is vested with a:

a) Deputy Governor of RBI
b) Head Governor of RBI
c) Finance Ministry
The Consumer Protection Act 2019
1. What is the full form of CERSAI?

A. Combined Registry of Securitization Asset Reconstruction and Security Interest
B. Combined Registry of Securitization Agency Reconstruction and Security Interest
C. Central Registry of Securitization Asset Reconstruction and Security Interest
D. Central Registry of Securitization Agency Reconstruction and Security Interest
2) CERSAI has been set up under which Act.

A) SARFAESI-act
B) CGTMSE act
C) Transfer property act
D) Registration act
E) CERSAI Act
3. Consumer Protection Act is significant to

A) Immovable Goods
B) Movable Goods
C) Particular Goods and Services
D) All Goods and Services
4. A complaint relating to which among the following can forwarded either in writing in electronic mode, to
any one of the authorities, namely, the District Collector or the Commissioner of regional office or the
Central Authority?
(A) Violation of consumer rights
(B) Unfair trade practices
(C) False or misleading advertisements
(D) All of these
5. Provisions of which of the following will apply relating to search and seizure under Consumer Protection
Act,2019?
(A) Code of Criminal Procedure, 1973
(B) Indian Penal Code , 1860
(C) Consumer Protection Act, 1986
(D) None of the above
6. District Consumer Disputes Redressal Commission is established by?

(A) State Government
(B) Central Government
(C) District Collector
(D) National Commission
7. District Commission shall have jurisdiction to entertain complaints where the value of the goods or
services paid as consideration does not exceed?
1986
(A) Rs. 25,000
(B) One Lakh Rupees
(C) One Crore Rupees
(D) 50 Lakh Rupees
8. What is the maximum penalty that can be imposed by the Central Authority in the first instance, if it is of
the opinion that it is necessary to impose a penalty in respect of such false or misleading advertisement, by
a manufacturer or an endorser?
(A) Five Lakhs (B) Fifty Lakhs (C) One Lakh (D) Ten Lakhs
9. What is the maximum penalty that can be imposed by the Central Authority for every subsequent
contravention, in respect of such false or misleading advertisement, by a manufacturer or an endorser?
(A) One Lakh (B) Ten Lakhs (C) Fifty lakh (D) One crore
10. Statement I -Akansha want a packet of juice and she wants food markel juice
Statement II - CPA provides require information related to required information related to right and
remedies available to consumer
a. I STATEMENT is right
b. II STATEMENT is right
C. Both statement are true d. Both statement are worng
SARFAESI Act And TAX LAW
1. In which of the following cases, the constitutional validity of the SARFAESI Act 2002 was questioned
before Åžupreme Court:
a. Manchester Chemicals vs ICICI bank
b. Manchester Chemicals vs Union of India
c. Mardia Chemicals vs Union of India
d. Mardia Chemicals vs ICICI Bank
e. none of the above
2. Under the provision of SARFAESI Act 2002, where a transaction of securitisation is registered:
a. Registrar of Companies
b. Registrar of Assurances
c. Registrar of Firms
d. Registrar of Central Registry e. none of the above
3. Under the provision of SARAESI Act 2002 a charge on moveable property in favour of secured without
delivery of possession to the creditor is called:
a. mortgage
b. assignment
c. pledge
d. lien
e. hypothecation
4. What is the time limit within which appeal against penalties can be made:
A. 90 days from the date on which such order was passed
B. 30 days from the date on which such order was passed
C. 120 days from the date on which such order was passed
D. 60 days from the date on which such order was passed
5. Which court shall try any offence punishable under this Act:
A. No Court inferior to that of Metropolitan Magistrate or a Judicial Magistrate of Second Class
B. No Court inferior to that of High Court
C. No Court inferior to that of Metropolitan Magistrate or a Judicial Magistrate of First Class
D. No Court inferior to that of Principal Junior Civil Judge or a Judicial Magistrate of First Class
6. If a person contravenes or abates contravention of any provision of this Act or rules, he shall be
punishable:
A. With imprisonment for a term which may extend to three years or with fine or both
B. With imprisonment for a term which may extend to two years or with fine or both
C. With imprisonment for a term which may extend to one year or with fine of minimum Rs. 10,000 or both
D. With imprisonment for a term which may extend to ne year or with fine or both
8. What is the time limit within which any person aggrieved by any measure taken by secured creditors file
an application to the Debt Recovery Tribunal:
A. Within 45 days from the date on which such measure had been taken
B. Within 30 days from the date on which such measure had been taken
C. Within 15 days from the date on which such measure had been taken
D. Within 60 days from the date on which
9. In case of appeal by the borrower, what is the amount to be deposited with the Appellate Tribunal:
A. Fifty percent of the amount of debt due
B. Forty percent of the amount of debt due
C. Sixty percent of the amount of debt due
D. Twenty percent of the amount of debt due
Lok Adalat And Limitation Act
1. If the money suit filed within three years from the date on which cause of action arises then the suit
(a)does not relate to Limitation Act
(b) is not barred by limitation
(c) is barred by limitation
(d) depends on application for condonation of delay
2. A suit for possession of immovable property based on title can be filed -

(a)within one year
(b) within three years
(c) within twelve years
(d) within six months
4. Period of limitation for suits relating to movable property is

(a) 3 years (b) 1 year to 3 years (c) 1 year (d) 12 years
5. In computing the period of limitation, the day from which such period is to be reckoned shall be
a. excluded
b. included
c. taken into account
6. The Lok Adalat is constituted under provisions of which of the following acts?
a. Constitution of Lok Adalat Act
b. SARFAESI Act
c. Legal Services Authority Act
d. Recovery of Debts due to Bank and FI Act
7. Questions : With reference to Lok Adalat, which of the following statements is correct?
(a) Lok Adalat have the jurisdiction to settle the matters at the prelitigation stage and not those matters
pending before any court
(b) Every Lok Adalat consists of either serving or retired judicial officers only and not any other person
(c) None of the statements given above is correct
(d) Lok Adalat can deal with matters which are civil and not criminal in nature
8. With reference to Lok Adalat, which of the following statements is correct?

(a) Lok Adalat have the jurisdiction to settle the matters at the prelitigation stage and not those matters
pending before any court
(b) Every Lok Adalat consists of either serving or retired judicial officers only and not any other person le
(c)None of the statements given above is correct
(d) Lok Adalat can deal with matters which are civil and not criminal in nature
9. Which Article of the Constitution of India contains various provisions for settlement of disputes through
Lok Adalat?
a. Article 14 b. Article 19 c. Article 39A d. Article 21
10. A Lok Adalat has jurisdiction:

To decide a case as per its own judgement
To determine and arrive at a compromise or settlement
To decide a case as per its own judgement based on evidence produced before it
Any of the above
DRT & DRAT

1. An application for review of order may be made to the Appellate Tribunal, who passed the order, but no
application for review shall be made after the expiry of a period of................from the date of the order.
a. Sixty days b. Forty five days c. Thirty days d. Fifteen days
2. What are the powers and functions of po the Registrar:

a. The seal of the Tribunal shall not be affixed to any certified copy issued by the Tribunal save under the
authority in writing of the Registrar.
b. The official seal shall be kept in the custody of the Registrar.
c. The Registrar shall have the custody of the records of the Tribunal.
All of the above.
3. Where an appeal is preferred by a person referred to in section 21 of the RDB Act, such appeal shall not
be entertained by the Appellate Tribunal unless such person has deposited with the Appellate Tribunal of
the amount of debt so due from him as determined by the Tribunal under section 19 of the Act:
a. 50%
b. 40%
c. 30%
d. 20%
5. The Tribunal and the Appellate Tribunal shall not be bound by the procedure laid down by:
a. The Indian Penal Code, 1860
b. The Code of Civil Procedure, 1908
c. The Indian Evidence Act, 1872
d. The Code of Criminal Procedure, 1973
6. a Debt Recovery Tribunal, the Presiding Officer holds office for a term of 5 years from the date on which
he enters upon his office or until he attains the age of 62 years, which ever is less.
65 (a)Correct
(b)In correct
(c)Not 5 years and 62 years but 3 years and 65 years respectively
(d)Not 5 years but 7 years whereas 62 years of age is correct
7. A Civil suit which is pending stands transferred to the DRT. Then the fees payable
(a) Will be decided by the DRT
(b) Standard fees to be paid as applicable to a new case referred to the DRT
(c)No fees required to be paid
(d) None of the above
8. Presiding Officer of DRT is

(a Appointed by the Committee of Bankers
(b)Appointed by the RBI
(c)Appointed by the RBI in consultation with Central Government
(d)Appointed by the GOI
9. Appeal before the Appellate Tribunal to be disposed off finally from the date of receipt of appeal within
(a)3 months (b)4 months (c)180 days (d)1 year
10. The Correction any clerical or arithmetical mistake in Recovery Certificate has to be done by (Certificate
issued by the Presiding Officer),
(a)Concerned Clerk himself
(b) The Presiding Officer of the Tribunal
(c)The Recovery Officer
(d)Any one of them
Negotiable Instrument Act, 1881
1. It is a obligation of a banker to honour the cheques of the customer drawn against current
Mutual
b) Statutory
Unstatutory
All of the above
2. Which bank have given the instructions to the commercial banks regarding the immediate credit of
cheques?
a) Reserve Bank of India
b) Central Bank
c, World Bank
d) All of the above
3. In India, the law regulating the Negotiable instruments are

a)Banking Regulation Act 1949
b) Reserve Bank of India Act 1934
c) Negotiable Instruments Act 1881
d) Companies Act 1956
4. In Negotiable Instruments Act 1881, which section defines promissory note?
a) Section 1 b) Section 2 c) Section 3 d) Section 4
5. A drawer in the bill of exchange can also be a

a)Paymaster
b) Payee
c)Banker
d)Creditor
6. Who is primarily liable on a promissory note?
a) Holder b) Maker .) Drawee d) Endorser
7. How many parties are mainly involved in Promissory Note?

a) One b) Five c) Two a) Three
9. Name the person to whom the amount of the cheque is payable?

a) Drawer
b) Payee
c) Drawee
d) Acceptor
10. The most important feature of a negotiable instrument is

a)Free transfer
b) Transfer free from defects
c) Right to sue
d) Both A & B
Negotiable Instrument Act, 1881
1. When banker received deposits from the customer, then the banker becomes of the customer.
a)Debtor b) Creditor c) Bailee d)Trustee
2. 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
3. Which court can entertain any offence punishable under section 138:
a. Court not inferior to that of a Judicial Magistrate of the first class.
b. Any court having jurisdiction may entertain such case.
c. Court not inferior to that of a Metropolitan Magistrate.
d. Options A and C are correct.
4. Where the holder of an instrument endorses it in a manner that does not incur any liability as an
endorser, such endorsement is called as:
a. Sans recourse Endorsement
b. Conditional endorsement
c. No endorsement
d. Restrictive Endorsement
5. A promissory note, bill of exchange or cheque payable to order, is negotiable:

a. By endorsement and delivery thereof.
b. By the holder by endorsement
c. By delivery thereof.
6. Where an instrument may be construed either as a promissory note or bill of exchange:

a. A void instrument
b. A valid negotiable instrument
c. It is called as ambiguous instrument
d. It is called as unambiguous instrument
7. When a promissory note, bill of exchange or cheque is transferred to any person, so as to constitute the
person the holder thereof, the instrument is said to be:
a. Mortgaged
b. Assigned
c. Negotiated
d. Pledged
8. A promissory note, bill of exchange or cheque drawnor made out of India and made payable in, or drawn
upon any person resident in India shall be deemed to be:
a. Incomplete instrument
b. Inchoate instrument
c. Foreign instrument
d. Inland instrument
Types of Securities and Credit Facilites
2. Which of the following is a disadvantage of bank guarantee?

(a)Rigid assessment
(b) Difficulty of Loss making entities to obtain guarantee
(c) High vale or high risk transactions
(d) All the above
3.Xyz company is a newly established textile factory that wants to purchase Rs.1 crore fabric raw materials.
The bank guarantees on behalf of
(a) XYZ Company
(b) Raw material vendor
(C) Either of them
(d) Bank guarantee cannot be given
4.A)enters into a contract with B for completion of a certain project. A does not complete the project on
time and does not compensate B for the loss. This can be compensated by a
guarantee.
(a) Financial
(b) Performance
(c) Warranty
(d) Advance payment
5………..is an assurance given by the bank to the beneficiary to make the specified payment.
(a) Bank Guarantee (b) Letter of credit(c) Surety (d) Insurance
6. …………is a contract to perform the promise, on discharge the liability, of a third person in case of his
default.
(a) Contract of guarantee (b) Bank guarantee (c) Letter of credit (d) Bailment
………….type of guarantee is required when the customer on credit purchases goods/machinery and
payment is to be made in installments on specified dates.
(a) Financial guarantee
(b) Performance based guarantee
(c) Deferred payment guarantee
(d) Advance payment guarantee
8. ………..is when a lending institution promises to cover a loss if a borrower defaults on a loan.
(a) Letter of Credit (b) Bank Guarantee (c) Promissory Note (d) None of the above
9. The buyer and seller in a contractual agreement are protected from credit risk through
(a) Bank guarantee (b) Letter of credit (C) Deferred Payment Guarantee (d) Secured Guarantee
10._ type of guarantees are used when one party in a transaction undertakes to make payment in the
future.
(a) Deferred Payment Guarantee (b) Financial Guarantee (c) Advance Payment Guarantee (d) Performance
Guarantee
Lien, Set-off, Pledge, Hypothecation
1. Pledge is supposed to be a special kind of:

A. security for a debt
B. to securing performance of a promise
C. bailment
D. none of above
2. Shand pledged some goods with Naeem. Naeem had to incur some expenses in the handling of those
goods.
A. Naeem can sue for recovery of such expenses
B. Naeem has no right to recover that amount
C. both A & B
D. none of above
3. Saleem being a Pawnee held the goods pledged by Anwar for a reasonable time but. Anwar did not clear
the particular debt.
A. Saleem will have to weight for Anwar
B. Saleem has a right to sell the goods
C. both A & B
D. none of above
4. Bakar theft some goods. He cannot pledge those goods because of he:
A. does not want to show them
B. thief has no title of goods
C. both A & B
D. none of above
5. Hypothecation is:
A. A transaction of conditional sale
B. A legal transaction whereby goods may be made available as security for a debt
C. Transfer of ownership by the borrower to the lender
D. None of the above
6. Neither possession nor ownership is transferred in....

A. Pledge
B. mortgage
C. Hypothecation
D. none
7. A banker's lien is..........

A. general lien
B. particular lien
C. Negative lien
D. none
7. A banker's lien is..........

A general lien
B. particular lien
C. Negative lien
D. none
8. A bank finances an agriculturist to buy a tractor. The loan is secured by:

A. Hypothecation of the tractor
B. Mortgage of the tractor
C. Pledge of the tractor
D. Assignment of the tractor
10. Lien means ...........

(a) to retain goods in his possession
(b) rights to sell the goods
(c) right to purchase the goods
(d) right to destroy the goods
Letter of Credit
1. A_ is a document from a bank guaranteeing that a seller will receive payment in full as long as certain
delivery conditions have been met:
a) Agreement b) Letter of Credit c) Bill Paper d) None of the Above
2. Letter of Credit is used only for international trading payment operations:

a) Yes b) No c) None of The Above
3. Most Letter of Credit often used in International Trade. Letters of Credit are governed by rules
promulgated by the:
a) International Chamber of Commerce
b) Uniform Customs and Practice for Documentary Credits
c) Both of The Above
4. Sellers must trust that the bank issuing the letter of credit is valid, and that the bank will pay as agreed. If
sellers have any doubts, they can use a letter of credit, which means that another (presumably more
trustworthy) bank will guarantee payment:
a) Confirmed b) Irrevocable c) Revocable d) None of The Above
5. Letter of Credit is essential. Which among the following functions is suitable regarding the requirement of
letter of credit:
a) Importers and exporter regularly use letters of credit to protect themselves.
b)Working with an overseas buyer can be risky because you do not necessarily know who you're working
with.
c) Buyer may be honest and have good intentions, but business troubles or political unrest can delay
payment of seller.
d) Communication can be difficult across thousands of miles and different time zones.
e) All of the Above
f) None of The Above
6. Letter of Credit are usually issued by:

a) Banks b) Financial Institutions c) Both of Above d) None of The Above
7. Which among the following definitions are wrong:

a) Beneficiary - The company or individual who will receive the payment from buyer.
b) Issuing Bank - The bank which issues letter of credit to seller party
c) Advising Bank - (The bank where seller wants receipt of payment)
d) All of The Above
e) None of The Above
8. Letter of credit can be transferred:

a) Yes b) No) d) None of The Above
9. A letter of credit allows the beneficiary to receive partial payment before shipping the products or
performing the services. Originally these terms were written in red ink, hence the name. In practical use,
issuing banks will rarely offer these terms unless the beneficiary is very creditworthy or any advising bank
agrees to refund the money if the shipment is not made:
a) Simple b) Red Clause c) Black d) None of The Above
10. A documentary credit requires the bill of lading to state the name and address of the carrier's agent at
the port of discharge. To comply with the credit terms, the agent:
a) Can be at any location in the world.
b) Must be located at the port of discharge.
c) Must be located in the same country as the port of discharge
d) Must be located in the same geographical area as the port of discharge.
Law relating of Bill Finance & Charge
1. Liability of the drawer is mentioned in the section of the Negotiable Instruments Act, 1881.
(a) 30 (b) 31 (c) 35 (d) 32
2. When a bill is transferred to any person so as to entitle him to claim the amount represented by bill, then
such transfer is called
(a) Agreement (b) Negotiation (c) Endorsement (d) Transfer
…………….is a bill of exchange drawn as per requirements of NI Act and is not supported by documents of
title of goods.
(a) Foreign bill (b) Inland Bill (c) Usance bill (d) Clean bill
5. The acceptor of a bill of exchange is bound to pay the amount thereof to the holder on demand
(a) Before maturity (b) On any date (c) within 30 days (d) at or after maturity
6. Inland bills are paid

(a) Only in India
(b) In foreign countries only
(c) to Residents of India
(d) in India and also in foreign countries
7. A bill that is payable otherwise than on demand is called _

(a) Demand Bills
(b) Clean Bills
(c) Usance Bills
(d) None of the above
8. ………………is an instrument payable on demand and no time for payment is specified therein.
(a) Usance Bill (b) Demand Bill (c) Inland Bill (d) None of the above
9. A bill of exchange transaction can involve upto parties.

(a) 2 (b) 3 (c) 4 (d) None of the above
10. A bill is made payable in England, the buyer or drawee's location. This is an example of
(a) Inland Bills (b) Foreign Bills (c) Clean Bills (d) Demand Bills
Module A
2. Any banking company aggrieved by the decision of the Reserve Bank cancelling a license under this
section may, within days from the date on which such decision is communicated to it, may appeal to the
Central Government.
(a) 45 days (b) 30 days (c) 60 days (d) 90 days
3. The Reserve Bank at any time may, and on being directed so to do by the shall, cause an inspection to be
made by one or more of its officers of any banking company and its books and accounts.
(a)RBI Governor
(b) Banking Codes and Standards Board of India (BCSBI)
(c) Central Government
(d) Securities and Exchange Board of India (SEBI)
4. The Central Government, if it is of opinion after considering the RBI report on inspection that the affairs
of the banking company are being conducted to the detriment of the interests of its depositors, may;
(1) prohibit the banking company from receiving
fresh deposits
(2) verify the RBI report and cancel or modify thereto
(3) give opportunity to the banking company to make a representation in connection with the report
(a) Only 1 and 2 (b) Only 2 and 3 (c) Only 1 and 3 (d) 1,2 and 3
5. In the case of a banking company incorporated outside India the aggregate value of its paid-up capital
and reserves shall not be less than of rupees.
(a) 15 lakhs (b) 20 lakhs (c) 25 lakhs (d) 10 lakhs
6. In the case of any banking company to which the provisions of Section 11 sub-section (2) do not apply,
the aggregate value of its paid-up capital and reserves if it has all its places of business in one State none of
which is situated in the city of Bombay or Calcutta, shall not be less than ……..of rupees.
(a) 5 lakhs (b) 2 lakhs c) lakhs (d) 25,000 in each branch
7. Which among the following is not a function of RBI?

a. Banker to the Central government
b. Banker to those state government which have entered into agreement with it
c. Banker to banks
d. Lender of last resort
e. All above are correct
8. Who administers the FEMA Act, 1999?

a. RBI b. SEBI c. SBT d. Directorate of Enforcement
9. Who acts as regulator and supervisor of payments and settlement system in country?
a. NPCI b. SEBI c. RBI d. CCIL
10. Drawing accepting, making or issuing of any promissory note, hundi or bill of exchange expressed to be
payable to bearer on demand by a person other than the Reserve Bank of India or the Central Government
is prohibited under?
A) Banking Regulation Act, 1949
B) Section 31 (1) of the Reserve Bank of India Act, 1934
C) Indian Contract Act, 1872
D) None of the above
FEMA & PMLA
1. All the offences under the FEMA are considered as which of the following type?
a. Civil Offence b. Criminal Offence c. Both. Civil and Criminal Offence d. None of the above
2. Name the authority that regulates the Foreign exchange in India?

a. Enforcement Directorate b. RBI c. Finance Ministry d. SEBI
4. Who have been authorised by RBI to deal in foreign exchange transactions?

1.Authorised Agency 2.Authorised People 3.Authorised Company 4.Authorised Dealer
3. Who investigates the contravention of provisions of FEMA 1999?

a. Enforcement Directorate b. RBI c. Finance Ministry d. SEBI
7. Whoever commits the offence of moneylaundering shall be punishable with rigorous imprisonment for a
term which shall not be less than three years but which may extend to?
(A)Three Years (B)Five Years (C)Seven years (D)Ten years
a. Rs. 50000 and above b. Rs. 1 lac and above c. Rs. 10 lac and above d. above Rs. 10 lac
9. Money laundering is related to------

A. To reduce the number of families which lives below poverty line
B. To reduce the NPA of Banks
C. To reduce the Black Money
D. To reduce the unemployment rate. E. None of these

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Agreement

6. For the purpose of Limitation Act, filling of suit include:

8. Which of the following statements regarding RBI is not correct:

4. The Transfer of Property Act contains provisions relating to transfer of:

6. Which of the following is not correct in case co of contract of indemnity or guarantee: .

8. The sale becomes absolute in case of mortgage by conditional sale, when:

Legal Act Concept

3. (a) Certificates of Incorporation is birth certificate of a company (b) Certificate of Incorporation is

3. (a) Certificates of Incorporation is birth certificate of a company (b) Certificate of Incorporation is

5. Which of the following statements are not true:

Lok Adalat Court

1. In a public limited company, maximum and minimum no. of shareholders is:

Indian Cont. Act, 1872 Void Agreement

To create an electronic signature

7. The presiding officer of DRT is called

5. Under the provisions of Section 22 of RBI Act:

6. Which of the following statements is not correct:

Where licence of a banking company is cancelled, it can make an appeal to:

2. Under FEMA 1999, which of the following is not a person:

7. The document, in an LC, that gives details of the sale is called_:

2. The objective of enacting Banking Regulation Act was to:

5. For specific performance of a contract, what is the limitation period:

6. Which of the following statements is correct:

10. Lok Adalt is organized by:

BR & RBI Act

5. The'fit and proper criterion is used by companies

5. Which of the following statements are appropriate?

7. Which of the following banks is called the negotiating bank?

3. The maximum number of directors in a private company can be ...... Public

2. What is the object of introducing the Banking Ombudsman Scheme, 2002?

7. The features of the award awarded by banking ombudsman are;

9. Hypothecation is an implied.... in cases where constructive possession of goods is given.

10. Individual borrowers are governed by the ......

1. ...... can be a subject matter of sale of goods Act.

1. When the is in possession of goods, a lien can be exercised.

2. The sub-agent is responsible for his normal acts to Principal

7. A person who makes a proposal is known as ......

8. A person is said to be competent to contract if ......

10. Persons entered into partnership are collectively called as

3. Which of the following can become members of a company?

1. Which of the following statement is correct?

4. Which of the functions of public and private key match:

10. The maximum number of directors in a private company can be ......

2. Which of the following statements is correct regarding banking ombudsman scheme?

The Bankey Book Evidence Met 4. Evidence means:

5. A lease for agricultural or manufacturing purpose is deemed to be a ......

7. A minor can be ...of a partnership firm

8. Who implemented the banking ombudsman scheme?

9. Secured loans are normally secured by ......

1. Imprisonment for money laundering can be ...... years

2. Regional rural banks operate in .......

3. Which of the following is not a statutory right of member of a company: Member

8. What is a certified copy?)

9. Legal proceeding under Bankers Books Evidence Act, signifies:

5. If company commits an act of contravention relating to it can be

8. If a minor is recorded as member by a company, by mistake (which of the following is wrong):

2. Reserve Bank was constituted under ......

8. As per Section 9 of BR Act, bank can hold immovable property up to years