Professional Documents
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PPB 200 Most Important MCQs
PPB 200 Most Important MCQs
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)
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)
Answer: d)
Answer: a)
Answer: a)
Answer: c)
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)
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"?
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)
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)
Answer: d)
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.
a) 1 and 2
b) 2 and 3
c) 1 and 3
d) All of the above
Answer: c)
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)
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)
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
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
a) 1 and 2
b) 2 and 3
c) 1 and 3
d) All of the above
Answer: a)
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)
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.
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)
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)
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)
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
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.
a) 1 and 2
b) 1 and 3
c) 2 and 3
d) All of the above
Answer: d)
Answer: d)
Answer: d)
Answer: c)
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.
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.
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.
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.
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)
Answer: c)
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)
a) 1 and 2
b) 2 and 3
c) 1 and 3
d) All of the above
Answer: b)
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.
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
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.
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
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)
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.
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Answer: c)
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.
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
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
Answer: b)
a) 1 and 2
b) 2 and 3
c) 1 and 3
d) All of the above
Answer: b)
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)
Answer: b)
a) 1 and 2
b) 2 and 3
c) 1 and 3
d) All of the above
Answer: c)
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)
Answer: a)
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.
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Answer: c)
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)
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Answer: c)
Answer: c)
a) 1 and 2
b) 2,3 and 4
c) 1,2 and 3
d) All of the above
Answer: c)
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)
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)
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)
a) 2 only
b) 1 and 3
c) 2 and 3
d) All of the above
Answer: d)
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)
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)
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)
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)
Answer: a)
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)
Answer: b)
a) 1 and 2
b) 2 and 3
c) 1 and 3
d) All of the above
Answer: c)
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.
a) 1 and 2
b) 2 and 3
c) 1 and 3
d) All of the above
Answer: a)
a) 1 and 2
b) 2 and 3
c) 1 and 3
d) All of the above
Answer: d)
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)
Answer: a)
a) 1 and 2
b) 2,3 and 4
c) 1,2 and 4
d) All of the above
Answer: d)
Answer: d)
Module-D
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Answer: b)
Answer: d)
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)
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Answer: a)
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Answer: a)
Answer: a)
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
a) 1 and 2 only
b) 1,2 and 3
c) 2 and 3
d) 1, 3 and 4
Answer: b)
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)
Answer: c)
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)
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)
Answer: c)
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Answer: b)
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)
Answer: d)
Answer: a)
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)
Answer: b)
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
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
a) 1,2 and 3
b) 2,3 and 4
c) 1,3 and 4
d) All of the above
Answer: d)
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)