Top 250+ Solved Banking Services Management (BSM) MCQ Questions Answer
Q. The endorser will not liable to the holder on dishonor of a negotiableinstrument if he makes
a. sans-recourse endorsement
b. facultative endorsement
c. sans-frais endorsement
d. none of the above
Q. Negotiation-back implies
a. return of the instrument back of he person who indorsed it earlier
b. the endorser does not want the instrument to be indorsed back to him
c. the endorser does not want the endorsee to incur any expenses on endorser’s account
d. none of the above
Q. Once a bearer instrument always a bearer instrument is true in case of
a. a cheque only
b. a bill of exchange only
c. all negotiable instruments
d. none of the above
Q. ……are treated as negotiable instrument by usage or custom of trade.
a. bill of exchange
b. promissory note
c. cash
d. hundies
Q. The relationship between a banker and its customer is basically that of
a. a debtor and a creditor
b. a trustee and the beneficiary
c. a principal a
d. an agent
Q. The banker's answer in case of dishonor of a cheque on a account ofinsufficiency of funds is generally
a. refer to drawer (rd)
b. no funds (nf)
c. not arrang
d. for (naf)
Q. The title of the endorsee will not be better than of the endorser in case acheque is crossed containing the words
a. & co
b. not negotiable
c. account payee
d. none of the above
Q. Travelers cheques are issue by
a. travel agencies
b. commercial banks
c. tourist department of government of india
d. none of the above
Q. When a banker accepts the securities for safe custody, the relationshipbetween a banker and a customer is that of
a. a debtor and a creditor
b. trustee and beneficiary
c. principal a
d. agent
Q. The period of limitation in case of deposits with bankers from the dateon which
a. deposit was made
b. deposit matures
c. date of dema
d. for payment by the customer
Q. Pay order is issued by the banks for
a. local payments
b. inter-state payments
c. foreign payments
d. none of the above
Q. Certificate of Deposit cannot be issued by
a. scheduled commercial banks
b. regional rural banks
c. all india financial institution
d. none of the above
Q. The recurring deposit account combine the characteristics of ……….andfixed deposit account.
a. savings account
b. current account
c. loan account
d. none of the above
Q. The drawee banker of a demand draft has received intimation of theloss of the draft from the purchaser. The banker should
a. stop the payment
b. exercise caution
c. refuse to accept the notice a
d. issue a duplicate draft