Module-A

1. Which of the following statements regarding a Bank is incorrect?

a) Deposits should only be for lending and investment purposes.
b) Co-operative Societies accepting deposits from their members are not considered banks.
c) The deposits accepted by Banks should only be from the public.
d) Acceptance of deposits can be in a form other than money.

Answer: d)

2. In case of an overdraft to a Bank’s Current A/C the customer becomes the _____ and the bank is
the_______.
a) Debtor, Creditor
b) Creditor, Debtor
c) Beneficiary, Trustee
d) Principal, Agent

Answer: a)

3. A customer accidentally left his bag and documents in the bank. In this case the bank will be holding
the customer’s belongings in the capacity of__________
a) Agent
b) Trustee
c) Lessor
d) Creditor

Answer: b)

4. When a customer deposits certain valuables, bonds, securities or other documents with the bank, for
their safe custody, the bank besides becoming a trustee, also becomes a____________
a) Lessor
b) Bailee
c) Indemnifier
d) Agent

Answer: b)

5. A contract by which one party promises to save the other from loss caused to him by the conduct of
the promisor himself is a contract of _______.

a) Trust
b) Indemnity
c) Hypothecation
d) Principal

Answer: b)

6. How is pledge different from mortgage and hypothecation?

a. In case of pledge the collateral remains in the possession of the pledgee.
b. Only immoveable properties are kept as security in case of pledge.
c. Gold can’t be pledged but it can be mortgaged and hypothecated.
d. Only long-term loans are available against pledged securities.

Answer: a)

7. A customer who has a credit balance in his/her bank a/c will be a _____ of the bank.
a) Creditor
b) Debtor
c) Principal
d) Trustee

Answer: b)

8. _______ accounts are used when a party wants to exercise some control on the use of the funds
received in the account in the name of another party.
a) Trusteeship
b) Escrow
c) Executor
d) Trading

Answer: b)

9. If a Bank pays for the utility bills on the behalf of the customer, he is acting in the capacity of a
______.
a) Principal
b) Agent
c) Indemnifier
d) Debtor

Answer: b)

10. The bank provides safe deposit lockers to the customers for the use on lease basis. The customer
acts in the capacity of__________.
a) Lessee
b) Lessor
c) Bailor
d) Creditor

Answer: a)

11. Demand deposits can be withdrawn ______

a) Expiry of deposit period
b) On demand
c) By closing the account
d) By sanction
 Answer: b)

12. Which of the following is not a type of Time Deposits?

a) Fixed Deposits
b) Recurring Deposits
c) Flexi Recurring Deposits
d) Savings Account

Answer: d)

13. Overdue deposits are a type of_______.

a) Demand deposits
b) Time deposits
c) Both a) and b)
d) Neither a) nor b)

Answer: a)

14. Unclaimed deposits are a type of______.

a) Demand deposits
b) Time deposits
c) Both a) and b)
d) Neither a) nor b)

Answer: a)

15. Unclaimed Deposits are transferred to ________ maintained by RBI.

a) Investor Education Fund
b) Settlement Guarantee Fund
c) Depositor Education and Awareness Fund
d) None of the above

Answer: c)

16. Which of the following is not a stage in Money Laundering?

a) Placement
b) Raising
c) Layering
d) Integration

Answer: b)

17. RBI has issued the KYC guidelines under __________________-and any contravention of the same
will attract penalties under the relevant provisions of the Act.
a) Section 34 (B) of the Reserve Bank of India Act, 1934
b) Section 38 (C) of the Prevention of Money Laundering Act,2002
c) Section 35 (A) of the Banking Regulation Act, 1949
d) Section 24 of the Securities and Exchange Board of India Act,1992

Answer: c)

18. ____ is the global money laundering and terrorist financing watchdog which sets international
standards that aim to prevent these illegal activities and the harm they cause to society
a) United Nations Office on Drugs and Crime (UNODC)
b) G-20
c) United Nations Security Council (UNSC)
d) Financial Action Task Force (FATF)

Answer: d)

19. Based on FATF recommendations, In India Prevention of Money Laundering Act, 2002 was enacted
under which obligations were stipulated on financial sector players and certain non-finance
businesses termed as___________
a) Reporting Entities
b) Informant Entities
c) Enforcement Directorate
d) Service Institutions

Answer: a)

20. The ____________ is a multi-disciplinary organization mandated with investigation of offence of

money laundering and violations of foreign exchange laws in India.
a) Financial Intelligence Unit
b) Directorate of Enforcement
c) Income Tax Department
d) Reserve Bank of India

Answer: b)

21. __________ is the central, national agency responsible for receiving, processing, analyzing and
disseminating information relating to suspect financial transactions to enforcement agencies and
foreign FIUs.
a) Financial Intelligence Unit - India
b) Enforcement Directorate
c) Reserve Bank of India
d) Finance Ministry

Answer: a)

22. Section-45 of Prevention of Money Laundering Act,2002 stipulates that all offences under PMLA are
deemed to be__________ and _________.
a) non-cognizable, non-bailable
b) cognizable, non-bailable
c) cognizable, bailable
d) non-cognizable, bailable
 Answer: b)

23. Which of the following statement regarding punishment under PMLA,2002 is incorrect?
a) The minimum punishment for money laundering offence is not less than 3 years and but up to 7
years.
b) Offender under PMLA can be fined maximum up to Rs 10 lakhs or 5 times the amount of money
involved in the crime.
c) In cases connected with offences under Narcotics Drugs and Psychotropic Substances Act the
imprisonment may extend up to maximum 10 years
d) All the options are correct

Answer: b)

24. According to PMLA who among the following will be defined as "client"?

a) A person who is engaged in a financial transaction with a reporting entity.

b) A person on whose behalf the person who engaged in the transaction is acting.
c) The person having continuous financial relationship with the reporting entity.
d) Both A and B

Answer: d)

25. For the purpose of KYC requirements, a bank needs to includes persons availing which of the
following service?
a) Opening a bank account
b) Third party product such as Mutual Fund
c) Stand Alone Remittance Facility
d) All of the above

Answer: d)

26. Which of the following statements regarding KYC is incorrect?

a) It is to be approved by the Board of Directors.
b) It should be reviewed at least once in a year.
c) The Designated Director/Principal Officer is responsible for keeping the KYC policy updated.
d) The bank needs to obtain introduction for a new customer from an existing account holder or from a
staff member.

Answer: d)

27. Under PMLA the Reporting Entities are obligated to maintain records of all transactions for
_________from the date of transaction.
a) 3 years
b) 7 years
c) 5 years
d) 10 years
 Answer: c)

28. The Bank is obligated to maintain the identity documents of clients and beneficials owners for a
period of _________ from the date of closure of accounts or end of relationship, whichever is later.
a) 2 years
b) 5 years
c) 7 years
d) 10 years

Answer: b)

29. Based on the risk perception of the bank, customers are classified into how many risk categories?
a) 3
b) 4
c) 6
d) 2

Answer: a)

30. Who among the following is not a high/medium risk category customer?
a) Politically exposed Persons
b) High Net Worth Individuals
c) Businesses with high turnover
d) Individuals with easily identifiable identities and source of wealth

Answer: d)

31. Who among the following is not a low-risk customers?

a) Salaried employees
b) People belonging to lower economic strata of the society
c) Government owned companies
d) Purdahnashin

Answer: d)

32. Which of the following is incorrect regarding KYC updation?

a) Updating KYC of Low-Risk Customers: Every 10 years.
b) Updating KYC of Medium Risk Customers: Every 8 years.
c) Updating KYC of High-Risk Customers: Every 2 years
d) All are correct

Answer: a)

33. Review of risk categorization of customers is carried out at least every _______ based on
transactions carried out by customers.
a) 3 months
b) 6 months
c) 12 months
d) 18 months

Answer: b)

34. The ____________ is responsible for timely submission of CTR, STR and reporting of counterfeit
notes to FIU-IND.
a) Designated Director
b) Branch Manager
c) Principal Officer
d) Senior Accountant

Answer: c)

35. Countries that are considered safe haven for supporting terror funding and money laundering are
put in the FATF ________ list.
a) Black
b) Red
c) Grey
d) White

Answer: c)

36. Foreign Account Tax Compliance Act has been enacted by which of the following country?
a) United Kingdom
b) India
c) United States of America
d) Australia

Answer: c)

37. Non-Profit Organisation Report (NTR) includes transactions regarding receipts by non-profit
organisations of what value?
a) Rs 50 lakh or more
b) Rs 15 lakh or more
c) Rs 20 lakh or more
d) Rs 10 lakh or more

Answer: d)

38. Which date of the succeeding month should the CTR for each month be submitted to FIU-IND as part
of PMLA rules?
a) 7th
b) 10th
c) 15th
d) Last working day

Answer: c)
39. Banks are required to submit this report to FIU-IND if any suspicious transaction noticed by them,
within 7 days of establishing suspicion.
a) STR
b) CTR
c) NTR
d) CBWTR

Answer: a)

40. Cross Border Wire Transfer Report (CBWTR) reports all the transactions with cross border transfers of
more than _________ or equivalent where either the origin or destination of fund is in India.
a) Rs 5 lakh
b) Rs 10 lakh
c) Rs 2.5 lakh
d) Rs 7.5 lakh

Answer: a)

41. Consider the following statements regarding Counterfeit Currency Report (CCR)-
1. Banks are required to report cash transactions, where forged or counterfeit currency notes or bank
notes have been used as genuine if the value of transaction exceeds Rs 2000.
2. The report is submitted within 7 days of reporting of the forged currency transaction.
3. The report includes all transactions where any forgery of a valuable security or a document has taken
place.

Which of the above statement(s) is/are correct?

a) 1 and 2
b) 2 and 3
c) 1 and 3
d) All of the above

Answer: c)

42. Which of the following statement correctly defines Correspondent banking?

a) These are individuals/entities engaged by a bank in India for providing banking services in unbanked
/ under-banked geographical territories.
b) It is an arrangement under which one bank holds deposits owned by other banks and provides
payment and other services to those respondent banks
c) It allows banks to bring their services directly to users rather than requiring them to visit a physical
branch
d) It is a payment service that allows a bank customer to use Aadhaar as his/her identity to access
his/her Aadhaar enabled bank account and perform basic banking transactions like balance enquiry,
cash withdrawal, remittances through a Business Correspondent.

Answer: b)

43. An account held by one bank for another is referred to by the holding bank as a __________, or our
account on your books.
a) vostro account
b) correspondent account
c) nostro account
d) holder account

Answer: c)

44. Which of the following statement best defines a shell bank?

a) A bank which has no deposits by the public.
b) A bank which is receiving deposits but is not involved in any lending or investment.
c) A bank which has its origin in a tax-haven country.
d) A bank that has no physical presence in the country in which it is incorporated and licensed

Answer: d)

45. Which of the following is not an exception to the secrecy obligations of banks regarding the
information received from the customers?
a) Where disclosure is under compulsion of law
b) Where there is a duty to the public to disclose
c) The interest of bank requires disclosure
d) When the information is demanded by the spouse

Answer: d)

46.Which of the following statement correctly explains the 'Placement' stage of Money Laundering?
a) Inject the “dirty money” into the legitimate financial system.
b) Conceal the source of the money through a series of transactions and bookkeeping tricks.
c) The laundered money is withdrawn from the legitimate account to be used for whatever purposes
the criminals have in mind for it.
d) Use money for the purposes of carrying out illegal acts.

Answer: a)

47. Which of the following are the stages of Financing of terrorism?

1. Raising
2. Moving
3. Integration
4. Structuring
5. Storing
6. Using

Choose the correct code-

a) 2,3,4 and 6
b) 1,3,4 and 5
c) 3,4,5 and 6
d) 1,2,5 and 6

Answer: d)
 48. Which of the following steps can be taken by the FIU against a bank for non-compliance of PMLA?
a) Issue a written warning
b) Direct to take specific remedial measures
c) Impose monetary penalty
d) All of the above

Answer: d)

49. KYC compliance procedures and operational norms also apply to branches of banks located abroad.
In case there is variance in KYC/AML standards prescribed by the RBI and the host country regulator,
branches are required to adopt
a) the more lenient regulation of the two.
b) the more lenient stringent of the two.
c) the regulations framed through bilateral treaty.
d) the regulations framed by RBI.

Answer: b)

50. Which of the following is incorrect regarding norms to be included in Customer Acceptance Policy?
a) No A/c is opened in anonymous or fictitious/benami name.
b) In case of Joint A/c Customer Due Diligence is to be carried only for the primary account holder.
c) No A/c is to be opened where appropriate Customer Due Diligence measured can't be applied.
d) A customer can be allowed to act on behalf of another person/entity.

Answer: b)

Module-B

1. Consider the following statements regarding borrowing by a minor individual-

1. Contract entered by a minor is void.
2. If a bank lends money to a minor to meet the expenses of purchasing necessities, then such loan
can’t be recovered.

Which of the above statement(s) is/ are incorrect?

a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2

Answer: b)

2. Who among the following is competent to enter a contract according to the Indian contract act
1872?
a) Minor
b) Not of sound mind
c) Purdahnashin Woman
d) All of the above
 Answer: c)

3. Which of the following statement(s) is/are correct regarding a Hindu Undivided Family?
1. In Mitraksha Law the right over ancestral property is by succession.
2. In Dayabhag Law the right over ancestral property is by survivorship.
3. Hindu Succession Act applies to Hindus, Sikhs, Parsis and Jains

Choose the correct code-

a) 1 and 2
b) 2 and 3
c) 1 and 3
d) All of the above

Answer: a)

4. Consider the following statements regarding Private company?

1. Shares are freely transferrable.
2. Limits the number of members to 200.
3. Prohibits invitation to public to subscribe for any securities of the company.

Which of the above statement(s) is/are correct?

a) 1 only
b) 2 and 3
c) 1 and 3
d) 2 only

Answer: b)

5. _______ is the charter of the company, and enables the shareholders, creditors, and those dealings
with the company to know its permitted range of business.
a) Memorandum of Understanding
b) Article of Association
c) Certificate of Incorporation
d) Common seal

Answer: a)

6. Which of the following is a Non-Fund Based Credit Facility?

1. Bill Finance
2. Bank Guarantee
3. Letter of Credit Facility
4. Overdraft
5. Acceptance Facility

Choose the correct code-

a) 1, 2 and 3
b) 2,3,4 and 5
 c) 2,3 and 5
d) All of the above

Answer: c)

7. Consider the consider the following statements regarding the working capital of a company.
1. Investment in these assets represent the part of capital which is blocked on permanent or fixed
basis.
2. The networking capital should be lesser than 1:1 to ensure sufficient liquidity and availability of
working funds.

Which of the above statement(s) is/are incorrect?

a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2

Answer: c)

8. M/s. XYZ has an average holding period for stocks and duration for creditors and debtors are as given
below.
 Procurement of raw material- 30 days
 Conversion Time- 15 days
 Average time of holding finishes goods- 15 days.
 Average collection period- 30 days
Its annual turnover is Rs 70,00,000 and annual operating expenses are Rs 60,00,000. The working
capital requirements will be?
a) 10 lakhs
b) 20 lakhs
c) 15 lakhs
d) 25 lakhs

Answer: c)

9. Consider the following statements regarding sources of finance for a company-

1. Equity Shareholders get a fixed rate of dividend every year.
2. Debentures can be converted into equity shares, but equity shares cannot be converted into
debentures.
3. Preference shareholders are given dividend after the dividend is paid to equity shareholders.

Which of the above statement(s) is/are incorrect?

a) 1 and 2
b) 2 and 3
c) 1 and 3
d) All of the above

Answer: c)
10. The exposure of a bank to the capital markets in all forms should not exceed _________of its net
worth as on March 31 of the previous year.
a) 25 %
b) 40%
c) 50%
d) 75%

Answer: b)

11. The loan sanctioned by banks against gold should not exceed ________ of the value of gold
ornaments and the jewellery.
a) 40%
b) 50%
c) 75%
d) 80%

Answer: c)

12. _________ is a mode of providing security to a banker for an advance. It is transfer of a right
property or a debt.
a) Lien
b) Set-off
c) Assignment
d) Hypothecation

Answer: c)

13. Following cases set off right will not be available to the banker-
1. Loan in the name of guardian and deposit in the name of minor operated by guardian.
2. Loan in the name of trustee and deposit in the name of trust.
3. Loan in the name of one of the partners and deposit in the name of partnership firm.
4. Loan in the name of proprietorship firm and deposit in the name of proprietor.
Choose the correct code-
a) 1,2 and 3
b) 2,3 and 4
c) 1,3 and 4
d) All of the above

Answer: a)

14. ____means bailment of goods for purpose of providing security for payment of debt or performance
of a promise.
a) Hypothecation
b) Pledge
c) Lien
d) Mortgage
 Answer: b)

15. Which of the statement(s) is or correct?

1. Pawnee has right of foreclosure.
2. Mortgagee has no right of foreclosure.
3. Under foreclosure the ownership of the property mortgaged against the loan is transferred over to
the lender who can legally auction the foreclosed property, selling it to the highest bidder to recover
the loan amount.

Which of the above statement(s) is/are correct?

a) 1 and 2
b) 2 and 3
c) 1 and 3
d) 3 only

Answer: d)

16. A _________is one where the bank or the internal or external auditors or the RB inspection has
identified the loss, but the amount has not been written off wholly.
a) Substandard assets
b) Doubtful assets
c) Loss assets
d) Non-performing asset

Answer: c)

17. Consider the following statements regarding Asset Reconstruction Company-

1. It obtains certificate of registration from SEBI.
2. It has net owned funds not less than 500 crores on an ongoing basis.

Which of the above statement(s) is/are correct?

a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2

Answer: d)

18. The insolvency and Bankruptcy Code provisions applied to which of the following-
1. A company incorporated under the Companies Act 2013 and not under any previous law.
2. Partnership firms
3. Proprietorship firms
4. Personal guarantors to corporate debtors

Choose the correct code-

a) 1,2 and 3
b) 2,3 and 4
 c) 1,3 and 4
d) All of the above

Answer: b)

19. According to the Law of Limitation what is the period of limitation for filing an appeal in High Court
against the judgement of a lower court from the date of decree-
a) Ninety days
b) Thirty Days
c) Sixty Days
d) Three years

Answer: a)

20. Which of the following statement(s) regarding an indemnity contract is/are correct?
a) In an indemnity the risk is contingent and not subsisting.
b) There are only 2 parties to a contract.
c) It covers only the actual loss suffered caused by an event mentioned in the contract.

Choose the correct code-

a) 1 and 2
b) 1 and 3
c) 2 and 3
d) All of the above

Answer: d)

21. Which of the following statement(s) is/are correct?

1. Law doesn’t debar a married woman from seeking advance from a bank, but husband will not be
liable for her borrowings.
2. An illiterate person has the capacity to enter into a valid contract.,
3. A convicted person cannot enter into a contract while undergoing sentence.

Choose the correct code-

a) 1 and 2
b) 2 and 3
c) 1 and 3
d) All of the above

Answer: d)

22. Which of the following entities are not a partnership firm?

1. Association
2. Club
3. HUF
4. Co-ownership

Choose the correct code-

 a) 1,2 and 3
b) 2, 3 and 4
c) 1,2 and 4
d) All of the above

Answer: d)

23. Which of the following statement(s) is/are correct?

1. Clubs, Societies, and other non-trading associations can enter into transactions without
incorporation if provided by the byelaws of such an organization.
2. In Limited Liability partnership the liability of partners is limited to their agreed contribution in the
LLP.
Choose the correct code-
a) 1 and 2
b) 1 only
c) 2 only
d) Both 1 and 2

Answer: c)

24. Which of the following is a Fund—based credit facility?

1. Overdrafts
2. Demand Loans
3. Term Loans
4. Bill Finance
5. Bank Guarantee
6. Letter of Credit facility

Choose the correct code-

a) 1,2,3,4
b) 4,5,6
c) 1,2,4,5
d) All of the above

Answer: a)

25. Which of the following statement(s) is/are incorrect regarding operating cycle?
1. It refers to the time it takes a company to buy goods, sell them and receive cash for the sale of
said goods.
2. It denotes time taken for a company to turn its inventories to cash.
3. The operating cycle is generally the same in different industries.

Choose the correct code-

a) 1 and 3
b) 2 only
c) 3 only
d) 2 and 3
 Answer: c)

26. Which of the following statement(s) is/are correct regarding working capital?
1. Working capital requirements vary for different industries.
2. It is fixed in nature.
3. Inadequate working capital results in production interruptions.

Which of the above statement(s) is/are correct?

a) 1 and 2
b) 2 and 3
c) 1 and 3
d) All of the above

Answer: c)

27. Amar overdrew his account and there was no written contract for an overdraft. The bank demanded
repayment of the money overdrawn with interest. The customer refused to pay interest. The bank
therefore filed a suit for recovery of the money overdrawn with interest. What should be the court
verdict?
a) There is no need for express contract for an overdraft and the borrower should repay the money
with interest as there is an implied contract for an overdraft.
b) There is no express contract, so the borrower is under no obligation to pay the overdraft money
back.
c) There is no express contract so the borrower is not obligated to pay the interest but should payback
the principal amount
d) There is no express contract so the borrower is not obligated to pay the principal amount but should
pay the interest to the bank.

Answer: a)

28. A firm was enjoying temporary overdraft facility to a limit of ₹5000 and for a period of 4 years. No
document was executed nor was a security furnished. The bank unilaterally without notice
terminated the facility with the result that a cheque drawn by the firm was dishonoured by the bank
on the ground that there was so insufficient balance in the account. The firm claimed damages for
wrongful dishonour of the cheque. A court case was filed. What should be the court verdict?
a) It was a facility provided by the bank without contract, so the bank has all the right to stop this
facility.
b) The overdraft facility was under an implied contract and the bank has no right to terminate overdraft
facility without notice.
c) the customer should have checked with the bank before drawing the cheque so the customer cannot
claim losses.
d) The overdraft is a temporary facility and cheques can’t be drawn on an overdrawn account.

Answer: b)

29. Which of the following statement(s) is/are incorrect regarding a Self-Help Group?
1. If SHG is not in default, some members being defaulter should not stop the bank from financing the
SHG.
 2. Credit information reporting is not done for SHG financing.
3. Savings Bank account can be opened for SHGs only if they are registered.
4. The bank can decide the interest rates for SHGs as per regulatory guidelines.

Choose the correct code-

a) 1 and 3
b) 2 and 3
c) 1,2 and 4
d) 1,3 and 4

Answer: b)

30. Help groups help in development of the poor through which of the following benefits
a) Mobilising resources of individual members for collective development.
b) Uplifting living conditions of poor.
c) Creating saving habits
d) All of the above

Answer: d)

31. The MUDRA has 3 schemes for providing assistance at different stages. The _____scheme covers
loans up to Rs 50,000 and up to Rs 5,00,000.
a) Tarun
b) Kishor
c) Shishu
d) Vaibhav

Answer: b)

32. What are the following statements are correct regarding Pradhan Mantri Suraksha Bima yojana?
1. The scheme is available to people in the age group of 18 to 65 years with the bank account who give
their consent to join.
2. The risk coverage under the scheme is ₹2,00,000 for accidental death and full disability.
3. The premium of ₹20 per annum is to be deducted from the account holders bank account through
auto debit facility in one installment.

Choose the correct code-

a) 1 and 2
b) 2 and 3
c) 1 and 3
d) All of the above

Answer: b)

33. Consider the following statement(s) regarding Pradhan Mantri Jan Dhan Yojana-
1. A person without Officially Valid Documents can open a small account.
2. No overdraft facility is available in PMJDY.
3. Minimum age of applicant is 16 years.
Which of the above statement(s) is/are incorrect?

a) 1 and 2
b) 2 and 3
c) 1 and 3
d) All of the above

Answer: b)

34. What is the criteria of classifying as medium enterprise?

a) Where the investment in plant and machinery or equipment does not exceed one crore rupees and
turnover does not exceed five crore rupees.
b) Where the investment in plant and machinery or equipment does not exceed ten crore rupees and
turnover does not exceed fifty crore rupees.
c) Where the investment in plant and machinery or equipment does not exceed fifty crore rupees and
turnover does not exceed two hundred fifty rupees.
d) Where the investment in plant and machinery or equipment does not exceed a hundred crore rupees
and turnover does not exceed five crore rupees.

Answer: c)

35. _________ is an electronic platform for facilitating/discounting of trade receivables of MSMEs

through multiple financers.
a) Bill Discounting System
b) Trade Receivables Discounting System
c) Performance and Credit Rating Scheme
d) Credit Guarantee Fund Scheme

Answer: b)

36. The PM SVANidhi scheme is available to which of the following category of people?
a) BPL
b) Street Vendors
c) Farmers
d) Unskilled Labour

Answer: b)

37. Which of the following statement(s) is/are correct regarding NBFCs?

1. They cannot accept term deposits.
2. Their activities include hiring, leasing, infrastructure finance, venture capital finance, housing
finance, and so on.
3. For all Companies currently applying for registration as a NBFC, the minimum Net Owned Funds
requirement is INR 10 Crore

Which of the above statement(s) is/are correct?

a) 1 and 2
b) 2 and 3
 c) 1 and 3
d) All of the above

Answer: b)

38. An NBFC can be registered under which of the following acts?

a) Chit Funds Act
b) Companies Act,2013
c) RBI Act
d) All of the above

Answer: d)

39. Which of the following facilities are available in the Kisan Credit Card scheme?
1. Loan
2. Insurance coverage
3. Assistance in the purchase of fertilizers, seeds, etc.
4. Operate KCC account through bank ATMs.

Which of the above statement(s) is/are correct?

a) 1 and 2
b) 2 and 3
c) 1, 3 and 4
d) All of the above

Answer: d)

40. Which of the following has been categorized as a Priority Sector for Priority Sector Lending?
1. MSME
2. Export Credit
3. Education
4. Social Infrastructure
5. Renewable Energy

Choose the correct code-

a) 1,2 and 3
b) 2, 3, 5
c) 1,3,5
d) All of the above

Answer: d)

41. Which of the following statements is correct regarding Information Utilities (IU) under The Insolvency
and Bankruptcy Code?
1. It collects, collates and disseminates financial information.
2. They maintain electronic databases on lenders and terms of lending.

Choose the correct code-

 a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2

Answer: c)

42. Corporate Insolvency Resolution Process can be initiated by which of the following-
1. financial creditor
2. operational creditor
3. corporate applicant
4. Corporate debtor

Choose the correct code-

a) 1 and 2
b) 1,2 and 3
c) 2,3 and 4
d) All of the above

Answer: b)

43. Suppose a bank’s customer were to import capital goods where the installment is to be paid over a
5-year period. In the meanwhile, the chances of importers going bankrupt may rise. The exporter
could demand surety for future payments. In this situation the importer should ask for ___________
from his/her bank which will assure the exporter of the timely payments of future payments.
a) Indemnity
b) Deferred Payments Guarantee
c) Loan
d) Letter of credit

Answer: b)

44. In international trade both buyer and seller are unaware of each other’s financial position and deal
through their bankers. The seller should have confidence that the buyer will pay for the goods when
due. In this case the buyer can provide a _________ to the supplier for assuring him of payment.
a) Letter of credit
b) Indemnity
c) Advance Payment
d) Income tax statements

Answer: a)

45. Identify the document with the help of following statements-

1. To ship any goods, it is required and acts as a receipt and a contract.
2. It shows that the carrier has received the freight as described and is obligated to deliver that freight
in good condition to the consignee.

Choose the correct code-

 a) Deferred Payments Guarantee
b) Letter of credit
c) Bill of Lading
d) Insurance Documents

Answer: c)

46. This type of Letter of Credit not only permits pre shipment advance but also permits advances to the
exporter to cover storage at the port of shipment.
a) Red Clause
b) Black Clause
c) Brown Clause
d) Green Clause

Answer: d)

47. Which of the following statements are correct regarding Clean Bills?
1. This document is not supported by documents of title to goods.
2. These are normally drawn to effect discharge of a debt or claim.

Choose the correct code-

a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2

Answer: c)

48. Mastercard, RuPay, Visa are example of_______

a) Card Issuers
b) Merchants
c) Merchant Acquirers
d) Credit Card Associations

Answer: d)

49. Which of the following statement(s) is/are correct regarding personal loan?
1. The bank will not question you about the end use when you are applying for a Personal Loan.
2. It does not require any collateral or security such as property, shares or gold.

Choose the correct code-

a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2

Answer: c)
 50. For calculating Priority sector targets, we use CEOBE. What does it stand for?
a) Certificate of Eligibility for Outward Bound Endorsement
b) Certificate of Eligibility Amount of Off-Balance Sheet Exposure
c) Credit Equivalent Amount of Outward-Bound Endorsement
d) Credit Equivalent Amount of Off-Balance Sheet Exposure

Answer: d)

51. What is the target of Priority sector lending for Small Finance Banks?
a) 40 per cent of ANBC or CEOBE whichever is higher.
b) 18 per cent of ANBC or CEOBE, whichever is higher; out of which a target of 10 % is prescribed for
Small and Marginal Farmers (SMFs)
c) 75 per cent of ANBC or CEOBE whichever is higher.
d) 12 % of ANBC or CEOBE, whichever is higher

Answer: a)

52. Which of the following category of Bank are required by RBI to achieve PSL targets?
1. Regional Rural Banks
2. Domestic commercial banks
3. Small Finance Banks
4. Primary Urban Co-operative Bank

Choose the correct code-

a) 1,2 and 3
b) 2,3 and 4
c) 2 and 4
d) All of the above

Answer: d)

53. Priority sector loans to the which of the following borrowers will be considered as lending under
Weaker Sections category-
1. Small and Marginal Farmers
2. Artisans, village, and cottage industries where individual credit limits do not exceed ₹5 lakh.
3. Self Help Groups
4. Persons with disabilities
5. Minority communities

Choose the correct code-

a) 1,2 and 3
b) 1,3, 4 and 5
c) 3,4 and 5
d) 1,4 and 5

Answer: b)

54. Consider the following statements regarding MSP-

 1. It stands for Maximum Support Price.
2. The MSP is the rate at which the government purchases crops from farmers and is based on a
calculation of at least one-and-a-half times the cost of production incurred by the farmers.
3. The Commission for Agricultural Costs & Prices (CACP) recommends MSPs to the Government.

Which of the above statement(s) is/are correct?

a) 1 and 2
b) 2 and 3
c) 1 and 3
d) All of the above

Answer: b)

55. Which of the following services are offered by a NBFC?

1. Gold loans.
2. Microfinance.
3. Leasing and hire-purchase services.
4. Credit card services.
5. Insurance services
Choose the correct code-

a) 1,2 and 5
b) 2,3,4 and 5
c) 1,2,3 and 5
d) All of the above

Answer: d)

56. In accordance with the provisions of the SARFAESI Act, 2002 who is a sponsor in an Asset
Reconstruction Company?
a) Any person holding not less than 10% of the paid-up equity capital of an asset reconstruction
company.
b) Any person holding not less than 15% of the paid-up equity capital of an asset reconstruction
company.
c) Any person holding not less than 20% of the paid-up equity capital of an asset reconstruction
company.
d) Any person holding not less than 12% of the paid-up equity capital of an asset reconstruction
company.

Answer: a)

57. In 2021, the formation of an ARC-AMC structure, comprising two entities for aggregation and
resolution of Non-Performing Assets (NPAs) in the banking industry. Which are those 2 entities?
1. National Asset Reconstruction Company Limited
2. India Debt Resolution Company Limited
3. National Asset Regeneration Company Limited
4. Indian Debtors Resolution Company Limited
 Choose the correct code-

a) 1 and 2
b) 2 and 4
c) 1 and 3
d) 3 and 4

Answer: a)

58. Which of the following statements correctly defines Securitisation of Assets?

a) When a bank combines several liquid assets and converts them into a security that can be purchased
or sold in the financial markets, thus providing liquidity in the market and lower risk.
b) It is the process in which certain types of assets are pooled so that they can be repackaged into
interest-bearing securities.
c) It is a financial entity set up to buy Non-Performing Assets (NPAs), or Bad Loans, from banks.
d) It is a corporate structure which isolates illiquid and high-risk assets held by a bank or a financial
organisation, or perhaps a group of banks or financial organizations.

Answer: b)

59. Consider the following statements regarding Sarfaesi Act-

1. It is a legislation that permits banks and other financial institutions to successfully recover bad debts.
2. It extends to whole of India excluding State of Jammu & Kashmir.
3. It is not applicable to any security interest created on agricultural land.

Which of the above statement(s) is/are correct?

a) 1 and 2
b) 2 and 3
c) 1 and 3
d) All of the above

Answer: c)

60. Consider the following statements regarding Continuing Guarantee-

1. It is a guarantee which extends to a series of transactions.
2. It can’t be revoked by the surety before the completion of the said number of transactions.

Which of the above statement(s) is/are incorrect?

a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2

Answer: b)

61. Which of the following statement(s) is/are correct regarding contract of guarantee?
1. It may or may not be supported by consideration.
2. The person who gives the guarantee is called the beneficiary.
Choose the correct code-

a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2

Answer: d)

62.What do you understand by the term derivatives?

a) It is a security with a price that is dependent upon one or more underlying assets.
b) It uses financial instruments or market strategies to offset the risk of any adverse price movements.
c) It is a protection that investors can use to protect their investments from sudden and unforeseen
changes in financial markets.
d) It is the process in which certain types of assets are pooled so that they can be repackaged into
interest-bearing securities.

Answer: a)

63. Which of the following is a source of finance for companies?

1. Share Capital
2. Term Loans
3. Debentures
4. Deferred Credit
5. Incentive sources

Choose the correct code-

a) 1,2 and 3
b) 2,3 and 4
c) 2,3 and 4
d) All of the above

Answer: d)

64. Consider the following statements regarding IBA Model education loan-
1. NRIs are not eligible for this scheme.
2. Only tuition fees and hostel expenses are considered.

Which of the above statements is/are incorrect?

a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2

Answer: c)

65. Which of the following statement(s) is/are correct regarding debentures?

1. These are debt instruments issued by the company that promises a fixed interest rate on the due
date.
2. Debentures can be secured or unsecured.
Choose the correct code-
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2

Answer: c)

66. In vehicle finance a lenders’ charge is registered with the Regional Transport Office (“RTO”) under
__________________ in accordance the Motor Vehicle Act, 1988.
a) SAARTHI
b) CHAALAK
c) VAAHAN
d) PUSHPAK

Answer: c)

67. Which of the following statement(s) is/are correct?

1. In contract of bailment if goods are bailed for hire, the bailor is responsible for any damage whether
he was aware of the existence of such faults in the goods bailed or not.
2. If the bailee has rendered any service in respect of the goods bailed to him, he has the right to lien
until he receives due remuneration.

Choose the correct code-

a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2

Answer: c)

68. The concept of hypothecation in India is regulated by__________

a) The Indian Contract Act, 1872
b) Banking Regulation Act, 1949
c) SARFAESI Act 2002
d) Insolvency and Bankruptcy Code, 2016

Answer: c)

69. Which of the following can be categorized as NPA?

1. The interest or instalment is overdue for a period of more than 90 days in respect of a term loan.
2. The account remains out of order in respect of an overdraft/cash credit.
3. The bill remains overdue for a period of more than 90 days, in case of bills purchased or
discounted.
 4. The instalment of the principal or the interest thereon remains overdue for three crop seasons
for short duration crops.

Choose the correct code-

a) 1 and 2
b) 2,3 and 4
c) 1,2 and 3
d) All of the above

Answer: c)

70. Which of the following statements is correct?

a) If loss assets are permitted to remain in the books of accounts for any reason, 200% of the
outstanding should be provided for.
b) No provision is created for Standard Assets by the banks.
c) A bank may voluntarily make specific provisions for advances at higher rates than the rates
prescribed by RBI.
d) All of the above statements are correct.

Answer: c)

Module-C
1. In this Network Topology all devices in the network are connected to a single continuous cable and
transmission is received by all workstations-
a) Ring Topology
b) Star Topology
c) Bus Topology
d) Tree Topology

Answer: c)

2. _________is a network security system that monitors and controls incoming and outgoing network
traffic based on retirement security rules.
a) Network Protocols
b) Network Topology
c) Firewall
d) Uninterrupted Power System

Answer: c)

3. __________ is a simple form of a data warehouse that is focused on a single subject or line of business
such as sales finance or marketing.
a) Data Warehousing
b) Data Mart
c) Data Lake
d) Data Mining
 Answer: b)

4. ___________ allows organizations to store large amount of structured and unstructured data and
immediately make it available for real time analytics.
a) Data Warehousing
b) Data Mart
c) Data Lake
d) Data Mining

Answer: c)

5. ______is the process of automatically finding patterns and relations in large databases which reveals the
strategic information hidden in the data warehouse.
a) Data Warehousing
b) Data Mart
c) Data Lake
d) Data Mining

Answer: d)

6. ATMs which are set up, owned, and operated by non-banks are called_________.
a) White Label ATMs
b) Brown Label ATMs
c) Pink Label ATMs
d) Cash Dispenser

Answer: a)

7. Which of the following statement correctly defines Charge cards?

a) It is an electronic payment card where the card holder is not charged interest but needs the user
to pay the balance due in full upon receipt of statement.
b) In these cards the funds are immediately debited to the cardholders’ accounts.
c) They are used exclusively by members of a club or a chain of hotels.
d) These cards can be used at POS terminals of merchant establishments by simply tapping the
card.

Answer: a)

8. What is a Neo-Bank?
a) These banks manage investment portfolios.
b) Banks offering personalized banking services.
c) Banks that challenge traditional banking models by offering innovative products and services.
d) Digital-only banks that operate entirely online with no physical branches.

Answer: d)

9. Which of the following is true about an optical fibre?

1. It supports a data rate of 2 gigabits/second.
 2. The transmissions are not affected by electromagnetic interference.
3. The data transfer is through a thin glass with a beam of light.

Choose the correct code-

a) 1 and 2
b) 2 and 3
c) 1 and 3
d) All of the above

Answer: d)

10. In this mode of transmission data movement is in both directions but only one direction at a time-
a) Simplex
b) Half-simplex
c) Half-duplex
d) Full simplex

Answer: c)

11. Consider the following statement(s) about INFINET-

1. It is managed by Indian Financial Technology and Allied Services
2. It designs, deploys & provides the essential IT-related services, required by the Reserve Bank of
India, banks, and financial institutions.
3. Individuals can’t use services of INFINET as it has a closed user group.

Which of the above statement(s) is/are correct?

a) 2 only
b) 1 and 3
c) 2 and 3
d) All of the above

Answer: d)

12. Consider the following statement(s) regarding SWIFT-

1. It is a co-operative non-profit organisation established under Belgian Law
2. It’s headquartered in Geneva.
3. It is message transmission system.

Which of the above statement(s) is/are incorrect?

a) 2 only
b) 1 and 3
c) 2 and 3
d) All of the above

Answer: a)

13. Which Electronic Payment System is being talked about in the following statements?
 1. It is an electronic payment system that allows users to initiate direct one-to-one payment anywhere
across the country.
2. It can be accessed 24*7.
3. It has no minimum or maximum limit on the amount to be transferred.
4. Settlement is on half hourly basis.
Choose the correct code-
a) IMPS
b) RTGS
c) NEFT
d) NECS

Answer: c)

14. Consider the following statements regarding Cheque Truncation System-

1. It is not defined under Negotiable Instruments Act,1881.
2. A cheque truncation system promotes the processing of a cheque electronically through the
Magnetic Ink Character Reader (MICR) data and a scanned image.
3. CTS has increased the time taken in the payment processing of a cheque.

Which of the above statement(s) is/are correct?

a) 1 only
b) 2 only
c) 3 only
d) All of the above

Answer: b)

15. What is the minimum amount for customer transaction for IMPS?
a) Rs 50,000
b) Rs 100,000
c) Rs 200,000
d) No limit

Answer: d)

16. Consider the following statements regarding NPCI-

1. It stands for National Payment Company of India
2. It is a not-for-profit organisation.
3. It was established by RBI and Indian Banks’ Association

Which of the above statement(s) is/are incorrect?

a) 1 only
b) 2 only
c) 2 and 3
d) 1 and 3

Answer: a)
17. ____________is the largest network of shared ATMs in India developed and deployed by Institute for
Development and Research in Banking Technology-
a) National Payment Corporation of India
b) National Financial Switch
c) National Automated Clearing House
d) Unified Payments Interface

Answer: b)

18. Which of the following service is not available in Bharat Interface for Money (BHIM)?
a) Blocking of User
b) Splitting the bill
c) Applications for IPO
d) All of the above are available.

Answer: d)

19. _________ is the nodal agency to deal with cyber security threats like hacking and phishing.
a) CoE-IT
b) CERT-IN
c) GeM
d) BBNL

Answer: b)

20. ___________ are software applications that mimic written or spoken human speech for the purpose of
stimulating a conversation or interaction with a real person.
a) Robotic Process Automation
b) Artificial Intelligence
c) Chatbots
d) Augmented Reality

Answer: c)

21. Which of the following is not a Network Topology Layout?

a) Bus
b) Ring
c) Plant
d) Star

Answer: c)

22. __________ is a networking device and it forwards data packets between computer networks.
a) Repeaters
b) Network Interface Cards
c) Routers
d) Bridge
 Answer: c)

23. __________ Network topology connects each device to every other device in the network.
a) Mesh
b) Hybrid
c) Bus
d) Star

Answer: a)

24. Which of the following is not a benefit of Core banking System?

a) Servers are mandatory at branch locations.
b) Customers need not necessarily transact only from the home branch.
c) Establishes a reliable centralized data repository for the bank.
d) Facilitates data mining and data warehousing.

Answer: a)

25. Consider the following statement(s) regarding Kiosk Banking-

1) Kiosks are small booths with internet connections established with personnel to help the customers
avail basic bank services.
2) It is not available in India.
3) The services provided are usually withdrawals, deposits, remittances

Which of the above statements is/are correct?

a) 1 and 2
b) 2 and 3
c) 1 and 3
d) All of the above

Answer: c)

26. Tap to pay allows purchasers to pay by tapping or hovering over the payment terminal with a contactless
chip-enabled card. What technology is used for this?
a) Near-field communication
b) Radio Frequency Identification
c) Electromagnetic waves
d) None of the above

Answer: a)

27. Which of the following statement correctly defines file transfer protocol?
a) It is a communication protocol used for the transfer of computer files from server to a client on a
computer network
b) It is a method for the delivery of voice communications and multimedia sessions over Internet
protocol networks.
 c) It is a facility that organises Internet related resources which may information access quite easy
where documents are linked together.
d) It is a network that allows users of one computer log into another computer that is part of the same
network

Answer: a)

28. Which of the following statements correctly defines AePS?

a) It facilitated multiple credits to beneficiary accounts with destination branches across the country
against a single debit of the account of the sponsor bank.
b) Under this payment system Basic banking transactions cab ne done at the Micro ATM of the Business
Correspondent of any bank using Aadhaar authentication.
c) It is an umbrella system for payment of all bills.
d) It is a process of stopping the physical movement of cheques.

Answer: b)

29. Consider the following statements regarding Cheque Truncation-

1) It is an electronic image of a paper cheque.
2) The paper cheque is sent to the customer after truncation as the bank keeps the electronic copy for
verification.
3) The addition of the digital signature of the truncating Bank to the electronic image of the cheque is
optional/

Which of the above statement(s) is/are correct?

a) 1 and 2
b) 2 and 3
c) 1 and 3
d) All of the above

Answer: c)

30. Which of the following is not a web browser?

1. Google Chrome
2. Microsoft Edge
3. Mozilla Firefox
4. Chat GPT
5. Safari
6. Opera

Choose the correct code-

a) 1,2 and 3
b) 4,5 and 6
c) 4 only
d) 3,4,5 and 6

Answer: c)
31. What is the role of National Automated Clearing House (NACH)?
a) It is a centralized system for financial institutions, corporate and government as a web-based solution
for the facilitation of interbank, high volume electronic transactions.
b) It is an electronic payment system developed by RBI to facilitate transfer of funds by customers from
one bank to another bank in India.
c) It is a RBI mandated system which offers integrated and interoperable bill payment services to
customers across geographies with certainty, reliability and safety of transactions.
d) It is a technology invented in the 1950s that's used to verify the legitimacy or originality of checks
and other paper documents.

Answer: a)

32. Which of the following statements is/are correct regarding Unified Payments Interface (UPI)
1. It is a system that powers multiple bank accounts into a single mobile application.
2. Authentication of transactions happens through single Click, two-factor authentications.
3. It is not available on iOS.

Choose the correct code-

a) 1 and 2
b) 2 and 3
c) 1 and 3
d) All of the above

Answer: a)

33. Consider the following statements regarding NPCI-

1. It has been incorporated as a “Not for Profit” Company under the provisions of Section 25 of
Companies Act 1956.
2. It is an umbrella organisation for operating retail payments and settlement systems in India.
3. It has been instrumental in the development of RuPay, BBPS and AePS.

Which of the above statement(s) is/are correct?

a) 1 and 2
b) 2 and 3
c) 1 and 3
d) All of the above

Answer: d)

34. Consider the following statements regarding RuPay-

1. It was launched in 2012 by the Reserve Bank of India (RBI).
2. RuPay is an initiative of the National Payment Corporation of India (NPCI).
3. RuPay cards has a comparatively lower processing cost and processing time in comparison to Visa
and MasterCard.

Which of the above statement(s) is/are correct?

a) 1 and 2
 b) 2 and 3
c) 1 and 3
d) All of the above

Answer: d)

35. What is the name of the national cloud (cloud computing) initiative of the Indian government?
a) MANYATAA
b) MeghRaj
c) VarshComp
d) PAWAN

Answer: b)

36. RBI has launched the “Payments Vision2025”. What is its core theme?
a) E-Payments through Digital India
b) E-payments for Everyone, Everywhere, Every time
c) Bharat development through Bharat Pay
d) Safe, secure Digital India

Answer: b)

37. Which of the following areas have been impacted by the adaptation of information technology in the
banking sector?
a) Service Quality
b) Training needs of staff
c) Privacy and confidentiality of data
d) All of the above

Answer: d)

38. Which of the following is not a characteristic of 5G technology?

a) High latency
b) High data Capacity
c) Reliability
d) All are characteristics of 5G technology.

Answer: a)

39. Which of the following are examples of crypto currency?

1. Ethereum
2. Litecoin
3. Ripple
4. Bitcoin

Choose the correct code-

a) 1 and 2
b) 2,3 and 4
 c) 1,2 and 4
d) All of the above

Answer: d)

40. Which of the following is a type of cyber-attack?

1. Phishing
2. Malware.
3. Denial-of-Service (DoS) Attacks.
4. Spoofing.
Choose the correct code-
a) 1,2 3
b) 1,2 and 4
c) 3 and 4
d) All of the above

Answer: d)

Module-D

1. Consider the following statements regarding the Theory of Trusteeship-

1. It was explained/given by Lal Bahadur Shastri.
2. It stipulates that the rich should consider their property as what God trusted them to manage for the
benefit of the poor.

Which of the above statement(s) is/ are correct?

a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2

Answer: b)

2. Which of the following is not a Principle of Business Ethics?

a) Dignity
b) Fairness
c) Honesty
d) Profit

Answer: d)

3. ________ protects people who provide information about wrongdoing.

a) Public Servants Disclosure Protection Act (PSDPA)
b) Protected Disclosures Act, 2002
c) The Whistle Blowers Protection Act, 2011
d) All of the above

Answer: c)
 4. Which of the following correctly defines the term, Norm?
a) It is the expectation of proper behaviour and not the requirements of that behaviour.
b) These are principles that help you to decide what is right and wrong.
c) It is an acceptance that something exists or is true, whether or not there is proof or evidence.
d) It is the moral principles for judging the rightness of something.

Answer: a)

5. Consider the following statements regarding Personal Ethics-

1. It is a class of philosophy that governs an individual’s beliefs about morality and correct-incorrect
behaviours.
2. These are often regulated by legal and regulatory requirements.

Which of the above statement(s) is/are correct?

a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2

Answer: a)

6. Consider the following statements regarding Business Ethics-

1. These are often regulated by legal and regulatory requirements.
2. The business ethics are always in sync with the individual ethics.

Which of the above statement(s) is/are correct?

a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2

Answer: a)

7. What is the Golden Rule in moral/ethical principles?

a) One should treat others as they themselves would like to be treated.
b) Wealth without work is a sin for the individual.
c) Commerce without morality is unethical.
d) All of the above.

Answer: a)

8. Consider the following statements regarding Ethical Dilemmas-

1. It is any situation where the moral principles can't determine whether the action taken is ether right
or wrong.
2. It can be a clash between two rights.
3. End-result based thinking can help in resolving the dilemma in many situations.
Which of the above statement(s) is/are correct?

a) 2 only
b) 1 and 3
c) 2 and 3
d) All of the above

Answer: d)

9. Which of the following approaches can help in resolving the Ethical Dilemmas-
1. End-result based thinking
2. Rule based thinking
3. Care based thinking
4. Profit based thinking

Which of the above statement(s) is/are correct?

a) 1 and 2 only
b) 1,2 and 3
c) 2 and 3
d) 1, 3 and 4

Answer: b)

10. Individual integrity is____________

a) Firm adherence to code of values.
b) Firm adherence to rules and regulations.
c) Moral, legal, and mental accountability.
d) Process of recognizing which decisions require ethical judgements.

Answer: a)

11. A CEO of a corporation buys 1,000 shares of stock in the corporation. The trade is reported to the
Securities and Exchange Board of India. It is an example of
a) Legal Trading
b) Illegal Trading
c) Job advantage
d) Bribery

Answer: a)

12. A board member of a company knows that a merger is going to be announced within the next day or
so and that the company stock is likely to go way up. He buys 1,000 shares of the company stock in
his mother's name so he can make a profit using his insider knowledge without reporting the trade
to the Securities and Exchange Commission and without news of the purchase going public. It is an
example of________
a) Insider trading
b) Legal Trading as the shares were not bought by the board member himself.
c) insider trading only if the mother transfers the profit to the Board member.
d) Insider trading only if all the proceeds are transferred to the board member.

Answer: a)

13. Insider trading is prohibited in India. It is regulated by_______

a) BASEL norms
b) Companies Act,2013
c) Securities and Exchange Board of India
d) Securities and Exchange Commission

Answer: c)

14. Which of the following is an example of Job Discrimination?

a) Women being given menstrual leave
b) Physically disable person not being recruited for Police Service
c) Person removed from job based on sexual orientation
d) All of the above

Answer: c)

15. Which of the following can be included in the definition of sexual harassment?
a) Demand for sexual favours
b) Non-verbal conduct of sexual nature
c) Non-physical conduct of sexual nature
d) All of the above

Answer: d)

16. ____________is a situation where someone has distinct obligations to different people that
contradict one another.
a) Ethical Dilemna
b) Conflict of Interest
c) Insider Trading
d) Whistle Blowing

Answer: b)

17. The Whistle Blowers Protection Act, 2011 provides punishment for false or frivolous complaints. The
protection of genuine complainant is the responsibility of______
a) Serious Fraud Investigation Office
b) Comptroller and Auditor General of India
c) Central Information Commission
d) Central Vigilance Commission

Answer: d)

18. Which of the following doesn’t constitute conducting personal business during office hours?
a) Filing tax return by a CA for his spouse free of cost
b) Searching for products on Flipkart
c) Helping your new colleague in office work
d) Completing work assignment of your friend who works in some other firm

Answer: c)

19. The famous Golden Arches of McDonald's in the shape of the letter M can’t be used by any other
organisation as McDonald’s has a ______ for it.
a) Copyright
b) Trademark
c) Patent
d) Intellectual Property Right

Answer: b)

20. Committee headed by retired justice B.N. Krishnan identifies 7 principles for the data protection
laws, one of which is Technology Agnosticism. What does it mean?
a) Data protection law must be flexible to include the changing technologies
b) Data sought and processed should be minimal and as necessary
c) No data should be collected without consent
d) All of the above

Answer: a)

21. The word ethics has been derived from which of the following Greek word?
a) Ethos
b) Ethees
c) Ethaas
d) Ethiia

Answer: a)

22. Ethics are used to determine the goodness of our_______

a) Thoughts
b) Actions
c) Values
d) All of the above

Answer: b)

23. A pharmaceutical company has invented a new medicine that can cure cancer. What type of
Intellectual Property Right will be used to protect the formula of the medicine?
a) Trademark
b) Patent
c) Copyright
d) None of the above

Answer: b)
 24. Ram walks into a hostage situation. There are 20 hostages, and he is told that if he shoots one
hostage, he will save the lives of the other 19. What ethical theory would approve killing of one of
the hostages because the other 19 lives are a greater benefit, regardless of the fact that the cost
would be one person’s life?
a) Deontology
b) Utilitarianism
c) Virtue
d) None of the above

Answer: b)

25. The Vishakha guidelines are related to which of the following?

a) Job Discrimination
b) Insider trading
c) Sexual Harassment
d) Conflict of Interest

Answer: c)

26. Which of the following statement(s) is/are correct regarding values?

1. They are universal.
2. They are influenced by family, society, and religion.

Choose the correct code-

a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2

Answer: b)

27. Which of the following in incorrect regarding bribery-

1) Indian banking system is free from this malice.
2) Taking bribes is an unlawful activity but giving bribe is only frowned upon and is not punishable.
3) Only monetary benefits count as bribery.

Choose the correct code-

a) 1 and 2
b) 2 and 3
c) 1 and 3
d) All of the above

Answer: d)

28. A company has invented a medicine that will cure AIDS. The company has to spend a huge amount of
money on the research. AIDS is prevalent around the world and the drug could save hundreds of
 lives. They want to give it for free, but it will be detrimental for the company’s financial health. What
is the term to describe this situation?
a) Ethics
b) Ethical Dilemna
c) Immorality
d) Whistle Blowing

Answer: b)

29. Which of the following is not an example of abuse of official position?

a) Using office staff to pick and drop children from school.
b) Using office car for official trips.
c) Getting your official work done from a junior.
d) Delegating authority to your employees

Answer: d)

30. Which of the following statements correctly defines Corporate Culture-

a) It refers to the shared values, attitudes, standards, and beliefs that characterize members of an
organization and define its nature.
b) It is individual belief that motivate people to act one way or another and serve as a guide for human
behavior.
c) It is a collection of rules and principles intended to assist employees and directors in making
decisions about their conduct in relation to the firm's business.
d) It is the state of believing; conviction or acceptance that certain things are true or real.

Answer: a)

31. Which of the following is an indicator of an ethical workplace?

a) Respectful treatment of all categories of customers by the front-office personnel.
b) High salaries
c) Fair and appropriate treatment given to co-employees.
d) Both a) and c)

Answer: d)

32. It is an examination or inspection of systems or processes hey to make sure that they are compliant
with ethics-related requirements.
a) Ethical Dilemna
b) Ethical audit
c) Whistleblowing
d) Both a) and b)

Answer: b)

33. Which of the following statements correctly defines terminal value?

a) It is a tool or means for acquiring a final value.
b) It is an ultimate goal which we desire to achieve in our lifetime.
 c) It is a value which cannot be achieved in our lifetime.
d) Expectation of proper behaviour from an individual in emergency situation.

Answer: b)

34. Consider the following statements regarding core values of an organization-

1. An organization’s core values are based on human values.
2. Core values are fundamental beliefs of a person or an organization
3. A company should effectively and properly communicate it core values to all the stakeholders
especially its employees.

Which of the above statement(s) is/are correct?

a) 1 and 2
b) 2 and 3
c) 1 and 3
d) All of the above

Answer: d)

35. There is a hierarchy in which human beings generally think about the purpose of one's life. Owing
option correctly identified the hierarchy starting from the most important.
a) Self- family- community- religion- society- global causes
b) Self- family- society- global causes- community- religion
c) Self- family- society- global causes- community- religion-
d) Family- Self- - community- religion- society- global causes

Answer: a)

36. Which of the following is the major cause of unethical behaviour in the workplace?
1. Non availability of code of ethics manual
2. Lack of fear of action
3. Unrealistic targets
4. Influence of co employees
5. Unprincipled leadership
6. Means are not appreciated

Choose the correct code-

a) 1,2,3 and 6
b) 2,3,4 and 5
c) 1,4,5 and 6
d) All of the above

Answer: d)

37. Which of the following are some common unethical practices found at the workplace -
1. Abuse of official email
2. Not hiring pregnant woman
3. Data leakage to customer’s wife
 4. Helping friends in getting information from company database

Choose the correct code-

a) 1,2 and 3
b) 2,3 and 4
c) 1,3 and 4
d) All of the above

Answer: d)

38. What do you understand by the term data minimization?

a) A data controller should limit the collection of personal information to what is directly relevant
and necessary to accomplish a specified purpose.
b) It refers to something that is generalized so that it is interoperable among various systems.
c) It refers to the creation of an asset by an individual or anyone using his or her creativity.
d) None of the above

Answer: a)

39. Ram created an artistic work. What category will he use to protect his work from being copied?
a) IPR
b) Trademark
c) Patent
d) Copyright

Answer: d)

40. This theory believes that pleasure is the most important thing in life.
a) Liberalism
b) Hedonism
c) Agnosticism
d) Utilitarianism

Answer: b)