Banking Quiz

1.‘Not Negotiable’ crossing refers to?

A.the cheque can not be negotiated 

B.the collecting bank should satisfy itself as to the title of the holder before collecting the cheque 

C.the cheque can not be collected as the protection under Section 131 of the Negotiable Instruments Act, 1881 is not   available in such cases 

D.the transferee shall not have and shall not be capable of giving a better title to the cheque than that of the transferer

2. Stop payment instructions remain in force for a period of? 

A.one year 

B.three months 

C.six months unless revoked by the customer

D.until the account is closed by the customer

3. Payment of a cheque may be countermanded by the? 

A.payee

B.drawer

C.true owner 

D.drawee 

4.In case the advising bank is unable to establish the authenticity of Letter of Credit it must?

A.immediately inform the buyer 

B.immediately inform the seller 

C.immediately inform the issuing bank

D.None of the above

5. Examination of the documents before making payments is the prime responsibility of? 

A.sellers bank in the seller’s country 

B.buyers bank in the seller’s country 

C.negotiating bank 

D.None of the above 

6. The beneficiary of the LC draws a bill of exchange on? 

A.Issuing Bank 

B.Advising Bank 

C.Negotiating Bank 

D.None of these

7.Invoice is a? 

A.Accounting document 

B.Legal document 

C.Commercial document

D.All of these

8. The currency of the issuance of the insurance policy? 

A.must be as the currency of the seller’s country 

B.must be same as the currency of the issuing bank’s country 

C.must be the same as that of the currency of the LC

D.none of the above

9. Stand by Letter of Credit is a substitute of?

A.Letter of Credit 

B.Guarantee

C.Advise note 

D.none of these

10. Many banks have adopted/launched ‘Core Banking Solution’ (CBS). Core Banking Solution is? 

A.A marketing strategy adopted by the banks 

B.A new type of ATM useful for rural population 

C.A delivery channel for quick and fast delivery

D.A new product launched to help senior citizens only as they are not able to visit branches/ATMs frequently