INSTITUTE OF BANKING STUDIES (IBS)
1 IBS,2ndFloor, Centre Point, K P Road, Kayamkulam, 0479 2445593, 9447873644
DRA TRAINING
TEST - 2
1. The term “customer” is defined in:
a) RBI Act b) NI Act c) BR Act d) KYC/AML guidelines
2. A banker is justified in making disclosure:
a) Under compulsion of law b) Under express or implied consent of the
customerc) As per banking practiced) Guarantor seeking informatione) In public/
national interest f) All the above
3. While disclosing the account details of a customer:
a) The bank should furnish only facts b) It should be a statement in general
c) Secrecy should be maintained by the recipient also
d) Information should not be given to persons out of context and without proper
justification:
e) All the above
4. When a bank returns a cheque unpaid it is called
a) Payment of cheque b) Drawing of cheque
c) Cancelling of cheque d) Dishonour of cheque
e) Marking of the cheque
5. Who will settle the grievances of bank customers?
a) Reserve Bank of India b) Lead Bank
c) Banking Ombudsman d) Banking Codes and Standards Board of
India
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INSTITUTE OF BANKING STUDIES (IBS)
1 IBS,2ndFloor, Centre Point, K P Road, Kayamkulam, 0479 2445593, 9447873644
INSTITUTE OF BANKING STUDIES (IBS)
1 IBS,2ndFloor, Centre Point, K P Road, Kayamkulam, 0479 2445593, 9447873644
6. Which of the following is the popular name of the norms by which a Bank
satisfies itself about the customer’s
identity and activities?
a) Basel Norms KYC Norms b) Service Norms
c) Lending Norms d) None of the above
7. Money laundering refers to
a) Conversion of money which is illegally obtained into good money through
Banking channels
b) Conversion of cash into other liquid assets
c) Conversion of liquid assets into cash
d) Diversion of bank deposits towards anti social activities
8. One of the important steps in money laundering is:
a) Placement and layering b) Organisation and controlling
c) Depositing and withdrawing d) All the above
9. Which among the following are valid documents for customer identification?
a) Aadhar card b) Passport c) Election ID d) Driving Licence
e) All the above
10. Which of the following acts / norms are launched by the banks to prevent
money laundering in general?
a) Banking Regulations Act b) Know Your Customer Normsc) Negotiable
Instruments Act d) Narcotics and Psychotropic Substance Act
e) b and d
11. Know Your Customer (KYC) norms are required to be strictly followed by
banks. It means:
a) Providing improved customer service
b) Determining the identity and residence proof of account holders through
approved documents
c) Ensuring that staff members know the customers
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d) Organizing regular customer service meetings
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e) All the above
INSTITUTE OF BANKING STUDIES (IBS)
1 IBS,2ndFloor, Centre Point, K P Road, Kayamkulam, 0479 2445593, 9447873644
INSTITUTE OF BANKING STUDIES (IBS)
1 IBS,2ndFloor, Centre Point, K P Road, Kayamkulam, 0479 2445593, 9447873644
12. When is the banker – customer relationship terminated?
a) On the death of the customer b) On customer becoming lunatic
c) On customer being declared insolvent d) On closure of the account
e) All the above
13. Which of the following is the Central bank of the country?
a) RBI b) SBI c) SEBI d) NABARD e) RRB
14. In case a customer wishes to withdraw his fixed deposit prematurely banks:
a) Banks do not allow the same till maturity of the deposits
b) Charge a penalty for the same c) Do not charge any penalty and allow the
same d) All of the above e) None of the above
15. For filing and resolving customer complaints the Banking Ombudsman:
a) Charges a fee of Rs. 500.00 b) Charges a fee of Rs.1000.00 c) Charges a fee of
Rs.1500.00 d) Does not charge any fee
16. Which of the following is /are the rights of customer towards his banker?
a) To receive his statement of account / pass book updatedb) To sue the bank for
any loss and damages
c) To sue the bank for not maintaining secrecy of the accountd) All of the above e)
None of the above
17. Who is the appointing authority of Banking Ombudsman?
a) RBI b) Ministry of Finance c) Governord) The President of India
e) Chief Justice of India
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INSTITUTE OF BANKING STUDIES (IBS)
1 IBS,2ndFloor, Centre Point, K P Road, Kayamkulam, 0479 2445593, 9447873644
INSTITUTE OF BANKING STUDIES (IBS)
1 IBS,2ndFloor, Centre Point, K P Road, Kayamkulam, 0479 2445593, 9447873644
18. The difference between credit card and debit card is :
a) The account is debited immediately in credit card
b) The account is debited immediately in debit card
c) The account is not debited immediately in debit card
d) None of the above
19. Credit Risk is high in:
a) Debit Card b) Credit Card c) In both d) None of the above
20. Nomination facility can be exercised by a customer for:
a) Return of articles kept in safe custody
b) Release of contents of safe deposit vault/locker
c) Payment of balance outstanding in the credit of customers account
d) All of the above
21. Which of the following statement is true regarding nomination in respect of
deposit accounts ?
a) Nomination facility is available to existing deposits
b) Nomination can be made in favour of one person only
c) Nomination facility is available for accounts standing in the single name or
jointly as the case may be
d) Minor can be a nominee e) All the above
22. Availing nomination facility is left to the option of the customer who could
make, cancel or change nomination:
a) Only at the time of opening the account b) Only when he is in death – bed
c) Only when he is physically incapacitated d) At any time
23. Nomination can be made in favourof :
a) Sole proprietorship / partnership firms b) Companies
c) Minors d) None of the above
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24. In the case of deposits held in joint accounts:
INSTITUTE OF BANKING STUDIES (IBS)
1 IBS,2ndFloor, Centre Point, K P Road, Kayamkulam, 0479 2445593, 9447873644
INSTITUTE OF BANKING STUDIES (IBS)
1 IBS,2ndFloor, Centre Point, K P Road, Kayamkulam, 0479 2445593, 9447873644
a) Each party to the account has a right to nominate a person on his behalf
b) Nomination facility is not available
c) There can’t be more than one nominee
d) None of the above
All the above
Study these statements:
Statement: 1
Despite bank’s efforts to recover loans many people still do not wish to repay
their loans intentionally
Statement: 2
Recovery agents will help banks to get their money back by all permissible means
25. Which statement is true?
a) Only 1 b) Only 2 c) Both 1 and 2 d) None of the above
26. While Scrutinizing Cheques received by DRAs in loan recovery it should be
ensured that:
a) Cheques are drawn on local banks.
b) Outstation cheques are accepted only in the case of banks networked under
CBS
c) Cheques are crossed “Account payee”, and the Bank’s name and the
borrower’s account number are clearlywritten
d) The word “Bearer” printed on the cheque is cancelled
e) No third party cheques viz. cheques endorsed in favour of the borrower are
accepted
f) All the above
27. While Scrutinizing Cheques received by DRAs in loan recovery it should be
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ensured that
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a) No post dated cheques are accepted
INSTITUTE OF BANKING STUDIES (IBS)
1 IBS,2ndFloor, Centre Point, K P Road, Kayamkulam, 0479 2445593, 9447873644
INSTITUTE OF BANKING STUDIES (IBS)
1 IBS,2ndFloor, Centre Point, K P Road, Kayamkulam, 0479 2445593, 9447873644
b) If the cheque is back dated the date may be ignored, but it should be ensured
that is not stale
c) Amount in words and figures match d) Cheque is not mutilated / defaced
e) A receipt is given for the cheque stating “subject to realization”
f) All the above
28. What is the size of the ATM card?
a) 7.5 cm x 5 .5 cm b) 7.5 cm x 6 .5 cm
c) 8.5 cm x 6 .5 cm d) 8.5 cm x 5 .5 cm
29. Plastic money refers to
a) Currency notes b) Bank notes c) Cheques
d) Travelers cheques e) Credit cards
30. Advantages of credit cards to the cardholder
a) It is convenient to carry a card for making payments
b) It allows drawing of cash
c) It provides proof of purchase in case of dispute by sellers
d) It provides additional facilities like insurance / discount etc
e) All the above
31. Advantages of credit cards to Banks
a) There is scope for better profitability out of share earned from the traders’
turnover
b) Helps in establishing banking relationship with new customers
c) Additional customer service to the existing clients
d) Higher popularity and image for the bank
e) Savings of expenses on cash holding / stationary printing and manpower to
handle clearing trans actions
f) All the above
32. Advantages of credit cards to Merchant establishments
a) Increase in sales because of increased purchasing power of the cardholder due
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to availability of credit
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b) Avoidance of all cost and security problems involved in handling cash
INSTITUTE OF BANKING STUDIES (IBS)
1 IBS,2ndFloor, Centre Point, K P Road, Kayamkulam, 0479 2445593, 9447873644
INSTITUTE OF BANKING STUDIES (IBS)
1 IBS,2ndFloor, Centre Point, K P Road, Kayamkulam, 0479 2445593, 9447873644
c) Avoidance of direct credit to customers
d) Advertising and promotional support
e) Development of a prestigious clientele base
f) Assured and immediate settlement / payment
g) All the above
33. The bank which pays the merchant for the transactions is called as:
a) Issuer bank b) Clearance bank
c) Acquirer bank d) None of the above
34. Interest below which a bank is not expected to lend to customers is known as:
a) Deposit Rate b) Base Rate
c) MCLR d) Bank Rate f) Discount Rate
35. Write True or False
a) Cheque is a Negotiable Instrument True
b) FDR is a Negotiable Instrument False
c) Demand Draft is a Negotiable Instrument True
d) Drawee of a cheque is always a bank True
e) Validity of a cheque is 3 months True
f) The holder of an undated cheque can fill in the date before presenting for
payment True
g) Crossing is a material alteration False
h) A stale cheque can be revalidated by the payee by his full signature False
i) A specially crossed cheque has to be routed through the named bankTrue
j) The obligation of the Bank to maintain secrecy continues even after the
customer’s account is closed True
k) The obligation of the Bank to maintain secrecy is qualified and not absolute.
True
l) In the case of nomination the amount lying in the account will be paid to the
nominee without any legal formality True
m) Cheque book is issued in Cash credit accounts True
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36. Which of the following does not fall under the category of ‘Retail Loans’?
INSTITUTE OF BANKING STUDIES (IBS)
1 IBS,2ndFloor, Centre Point, K P Road, Kayamkulam, 0479 2445593, 9447873644
INSTITUTE OF BANKING STUDIES (IBS)
1 IBS,2ndFloor, Centre Point, K P Road, Kayamkulam, 0479 2445593, 9447873644
a) Housing loan of Rs.50 lakhs sanctioned to a Bank Officer
b) An education Loan of Rs.20 lakhs for studies in Abroad
c) Credit Card dues of Rs.125000
d) Cash Credit/ Overdraft limit of Rs.6 crores
37. Recently several banks are offering Housing Loan with maximum repayment
periods up to :
a) 30 years b) 25 years c) 15 years d) Unlimited periods
38. Presently, banks are offering Housing Loan with interest rates that are:
a) Floating b) Fixed
c) Either a. or b. d) Bench Mark Prime Lending Rate BPLR)
39. The security for a housing loan is generally:
a) Hypothecation of Land and Building b) Pledge of Land and Building
c) Mortgage of Land and Building d) Any of the above
40. Some banks offer lower EMIs in the initial years and higher EMIs in later years.
This is known as:
a) Step- down repayment b) Step-up repayment
c) Regulated repayment d) Staggered repayment
41. A vehicle loan of Rs.8 lakhs is sanctioned to Dr. Rajeev for purchasing a new
Honda City car for a price of Rs.12lakhs. In this regard, which of the following
statement is not correct?
a) Bank’s hypothecation charge shall be registered in the RTO records.
b) The vehicle shall be insured for an amount of Rs.8 lakhs
c) The repayment period may be granted up to 7 years
d) All the above statements are correct.
42. Which of the following category of loan carries the lowest interest rate at
present?
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a) A Car loan
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b) A loan for purchasing an LCD Television
INSTITUTE OF BANKING STUDIES (IBS)
1 IBS,2ndFloor, Centre Point, K P Road, Kayamkulam, 0479 2445593, 9447873644
INSTITUTE OF BANKING STUDIES (IBS)
1 IBS,2ndFloor, Centre Point, K P Road, Kayamkulam, 0479 2445593, 9447873644
c) A personal loan sanctioned for meeting medical expenses
d) A Housing loan
43. Girishkumar, a Central Government employee, drawing a salary of Rs.75000
per month approaches your bankfor financial assistance to the tune of Rs.5 lakhs
in connection with his daughter’s marriage. Your bank has decidedto sanction the
loan under the Consumption Loan scheme Personal loan. What would normally
be the security inthis case?
a) No tangible security b) Pledge of Gold ornaments
c) Mortgage of Land & House d) Hypothecation of his car
44. Sandeep Krishnan is sanctioned an Overdraft facility with a limit of Rs.3 lakhs
at an interest rate of 16.5% p a.Interest on this facility is generally computed :
a) Flat on Rs.3 lakhs on a monthly basis
b) On the debit balances, on daily product basis
c) On the average debit balance during the month
d) On the highest debit balance during the month
45. The facility to ‘Buy now Pay Later’ is offered by
a) Smart card b) Travel card c) Credit card d) Debit card
46. EMI includes both interest and principal. EMI stands for
a) Equal Monthly Instalments b) Equal Monthly Interest
c) Every Month’s Instalments d) Equated Monthly Instalments
47. Which of the following statement is not true in respect of Hire Purchase?
a) The title of goods passes to the purchaser only on payment of the last
instalment.
b) The goods are hypothecated in favour of the vendor
c) The transactions give the right of repossession to the vendor
d) None of the above – (All statements are true)
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INSTITUTE OF BANKING STUDIES (IBS)
1 IBS,2ndFloor, Centre Point, K P Road, Kayamkulam, 0479 2445593, 9447873644
INSTITUTE OF BANKING STUDIES (IBS)
1 IBS,2ndFloor, Centre Point, K P Road, Kayamkulam, 0479 2445593, 9447873644
48. Loan and advances of banks are classified in their (Bank’s )balance sheets asa)
Capital b) Liabilities c) Assets d) Income
49. Normally, the credit card holder gets free credit period up to a maximum of
about …………..days, depending
upon the billing cycle.
a) 20 b) 30 c) 50 d) 90
50. Credit card dues are generally payable on a fixed date every
a) Fortnight b) Month c) Quarter d) Half Year
51. Some credit card issuers offer conversion of dues into a short term loan. In
doing so, the card holder gets thefollowing advantages.
a) The credit card dues become payable in installments
b) There will not be over dues so long as the loan installments are paid in time
c) Interest rate is comparatively lower than the credit card interest rate
d) The card holder gets enhanced free credit period
e) All the above
52. When an account is classified as a Non Performing Asset,
a) Income shall be recognized on cash realization basis
b) Income shall be recognized on accrual basis
c) Future interest shall be waived
d) Over dues shall be written off
53. A term loan will be classified as NPA, if the instalment of principal and/ or
interest remains unpaid for a period of
a) 90 days b) More than 90 days c) 180 days d) None of these
54. In respect of an Overdraft/ cash credit account, if the outstanding balance
remains continuously in excess of thesanctioned limit/ drawing power, the
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account shall be treated as
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a) N P A b) S M A c) Out of Order d) Out of Control
INSTITUTE OF BANKING STUDIES (IBS)
1 IBS,2ndFloor, Centre Point, K P Road, Kayamkulam, 0479 2445593, 9447873644
INSTITUTE OF BANKING STUDIES (IBS)
1 IBS,2ndFloor, Centre Point, K P Road, Kayamkulam, 0479 2445593, 9447873644
55. Non-Performing Assets accounts are not grouped under the following
categories
a) Standard Assets b) Sub-Standard Assets
c) Doubtful Assets d) Loss Assets e) b, c & d
56. A sub-standard asset is one, which has remained NPA for a period less than or
equal to :
a) 30 days b) 90 days c) 6 months d) 12 months
57. A term loan of For Rs.2 lakhs was classified as Sub-Standard asset as on
31.03.2013. Under which category theaccount would normally be classified as on
31.03.2014?
a) Standard assets b) Sub-standard assets
c) Doubtful assets d) Loss assets
58. A crop loan was sanctioned on 01.01.2012 for cultivation of banana which was
scheduled to be repaid on orbefore 31.12.2012. The loan, if remained unpaid,
would be classified as NPA on
a) 31.12.2013 b) 01.01.2014 c) 01.03.2014 d) 31.03.2014
59. ‘Out of Order’ is a term related to
a) Overdue Term Lo b) Overdue Bills
c) Overdue Gold Loan accounts d) Devolved Bank Guarantees
e) Cash Credits and Over Draft Accounts
60. An account is classified as Loss Asset when
a) It is identified as loss by internal or external inspectors/ auditors
b) It is identified as loss by R B I or Statutory auditors
c) It is identified as loss by the branch/ bank
d) All the above
61. The basic characteristics of Retail Banking are :
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a) Multiple Products b) Multiple channels of distribution
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c) Multiple customer groups d) All the above
INSTITUTE OF BANKING STUDIES (IBS)
1 IBS,2ndFloor, Centre Point, K P Road, Kayamkulam, 0479 2445593, 9447873644
INSTITUTE OF BANKING STUDIES (IBS)
1 IBS,2ndFloor, Centre Point, K P Road, Kayamkulam, 0479 2445593, 9447873644
62. The person/ entity who receives money by way of borrowings is known as:
a) Creditor b) Debtor c) Surety d) Principal
63. Collection of money from the borrower by or on behalf of the lender after it
has become due for payment is
known as :
a) Investment b) Liquidation c) Recovery d) Re-structuring
64. Agency’ is defined under
a) Indian Contract Act, 1872. b) Banking Regulation Act, 1949
c) Negotiable Instruments Act, 1881 d) Transfer of Property Act, 1882
65. Agent can be appointed by
a) Express appointment b) Implication of Law
c) Ratification by Principal d) Any of these modes
66. Persuasion means convincing people to
a) buy a certain product b) To believe something
c) To act in a certain way d) To agree with a point of view
e) All the above
67. Before making a call the DRA should know
a) Customer’s payment record b) If there is any dispute
c) Cash flow position d) What exactly to ask
e) All the above
68. During telephone calls the DRA should:
a) Ask the right question b) Follow up progressively
c) Do active Listening d) Remain calm
e) Get commitment
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f) All the above
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INSTITUTE OF BANKING STUDIES (IBS)
1 IBS,2ndFloor, Centre Point, K P Road, Kayamkulam, 0479 2445593, 9447873644
INSTITUTE OF BANKING STUDIES (IBS)
1 IBS,2ndFloor, Centre Point, K P Road, Kayamkulam, 0479 2445593, 9447873644
69. In the first collection call the DRA should:
a) Not reveal his identity b) Be firm & aggressive
c) Tell them the consequences d) Give the benefit of doubt
e) All of the above
70. Making the customer call is the …. step in the recovery process
a) 1st b) 2nd
c) 3rd d) 4th
71. Customer calls are to be made between:
a) 10 am – 10 pm b) 8 am – 8 pm c) 7 am - 7 pm
d) 6 am – 6 pm e) 9 am – 9 am
72. The DRA should not:
a) Make anonymous calls b) Conceal his Identity
c) Threaten/ Harass d) Humiliate
f) All the above
73. Persuasive skill is built on
a) Confidence of DRA b) Hard work of DRA
c) Good rapport & Trust d) Integrity
e) Loyalty
74. Basic element of Persuasion is:
a) Explaining the facts b) Assertiveness
c) Threatening d) Negotiation
e) All the above
75. DRA can negotiate only if
a) It is a willful default b) Debtor absconding
c) The bank has authorized the DRA d) If it is a substandard asset
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e) All the above
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INSTITUTE OF BANKING STUDIES (IBS)
1 IBS,2ndFloor, Centre Point, K P Road, Kayamkulam, 0479 2445593, 9447873644
INSTITUTE OF BANKING STUDIES (IBS)
1 IBS,2ndFloor, Centre Point, K P Road, Kayamkulam, 0479 2445593, 9447873644
76. Barriers to communication are?
a) Noise b) Darkness
c) Distance d) Language
e) All the above
77. Communication is a process of _________________ information and ideas
a) Conveying b) Exchanging
c) Speaking d) Teaching e) Preaching
78. Non Verbal communication doesn’t include
a) Eye contact b) Gestures
c) Voice tone d) Body language e) Spoken words
79. For any communication process, minimum no of persons required
a) One b) Two
c) Three d) Four
e) Ten
80. Relationship between Bank and DRA is that of
a) Banker & Debtor b) Debtor & Banker
c) Principal & Agent d) lesser & Lessee
e) All the above
81. An effective communicator has to be
a) Good looking b) Well educated
c) Good listener d) Good person e) All the above
82. When communicating with a customer you should not:
a) Irritate b) Show impatience
c) Show anger d) Argue e) All the above
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83. Verbal communications consists of
INSTITUTE OF BANKING STUDIES (IBS)
1 IBS,2ndFloor, Centre Point, K P Road, Kayamkulam, 0479 2445593, 9447873644
INSTITUTE OF BANKING STUDIES (IBS)
1 IBS,2ndFloor, Centre Point, K P Road, Kayamkulam, 0479 2445593, 9447873644
a) Eye Contact b) Gestures
c) Body language d) Smile e) None of the above
84. DRA Should listen to the debtor
a) to understand better b) to get more information
c) to improve flow of communication d) to build rapport e) All the above
85. Communication is of _____ types
a) One b) Two
c) Six d) Twelve e) Non of the above
86. Examples of non verbal communication are
a) Facial expression b) Gestures
c) Voice tone d) Appearance e) All the above
87. Precautions to be taken by DRA on visits
a) Respect personal space b) Not to enter residence against the wishes
of debtor c) Not to restrict movement
d) Respect privacy e) All the above
88. Communication process consists of:
a) Sender b) Receiver
c) Channel d) Encoding and Decoding e) All the above
89. DRA should not be:
a) Courteous b) Empathetic
c) Humble d) Aggressive e) All the above
90. Smile makes the other person:
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a) Angry b) Suspicious
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c) Sad d) Happy e) Confused
INSTITUTE OF BANKING STUDIES (IBS)
1 IBS,2ndFloor, Centre Point, K P Road, Kayamkulam, 0479 2445593, 9447873644
