Top 250+ Solved Banking Services Management (BSM) MCQ Questions Answer
Q. Letter of Probate means-
a. a letter attached with a will containing signatures of the witnesses
b. confirmation of succession certificate
c. a certificate issu
d. by the court containing the name of the person who has to administer the property of a deceased person
Q. Non-registration of a firm will affect in the following manner-
a. on dissolution of the firm, remaining partners will have to approach to the court for settlement of their dues.
b. bank will not allow an unregistered firm to open an account.
c. no partner shall be in a position to institute a suit against any other partner of the firm
d. none of these
Q. Working Capital Gap means-
a. total current assets minus total current liabilities
b. total assets minus intangible assets
c. total liabilities minus terms liabilities.
d. total current assets minus current liabilities (other than bank
Q. …………… constitute the largest source of funds for the banks
a. cash
b. loan
c. deposit
d. agency service
Q. Section 85(1) of the Negotiable Instrument Act 1881 provides protectionto the paying banker in respect of
a. forged endorsement
b. material alterations on the face of the cheque
c. forgery of drawer's signature
d. all of these
Q. Collection of cheques for customer is a………….function of bank.
a. agency function
b. trustee function
c. plann
d. function
Q. In periods of boom, which leads to economic instability, Reserve Bankresorts to
a. sale in the market of first class securities in its possession to reduce the supply of money as a measure of open market operations
b. buying of approved securities in the market as a measure of pen market operations
c. hike in the bank rate as a measure of open market operations
d. none of these
Q. Under Section 17 of the Banking Regulation Act 1949, every bankingcompany incorporated in India is required to transfer each year to a reserve fund a sum equivalent to not less than
a. 10 per cent of profit before dividends;
b. 20 per cent of profit after interest tax and dividend;
c. 25 per cent of profit before dividends;
d. 5 per cent of gross profit
Q. After a customer has closed the account______
a. the banker is no more liable to observe secrecy of his account because the contractual relationship comes to an end
b. the banker is still bound by his duty of secrecy
c. the banker's duty of secrecy comes to an e
d. in terms of the provisions of the negotiable instrument act, 1881
Q. ………….is a new scheme of deposit mobilization have been evolved bythe Indian commercial banks.
a. current deposit
b. saving deposit
c. insurance link
d. deposit
Q. A mandate may continue to be operative even in the case of—
a. death of the agent
b. lunacy of the agent
c. insolvency of the agent
d. none of these
Q. ………….is a document issued by the bank acknowledge the receipt of afixed sum of money on deposit.
a. collection receipt
b. withdrawal receipt
c. fix
d. deposit receipt
Q. A bill should be presented for acceptance in case of insolvency of adrawee to
a. official receiver
b. drawee in case of need
c. acceptor for honour
d. none of the above
Q. An order instrument can be made payable to the bearer by making
a. conditional endorsement
b. full endorsement
c. general endorsement
d. none of the above