Compliance MCQs

Banking Regulation & Compliance and Legal Aspects MCQ [Free PDF] - Objective Question Answer for Banking Regulation & Compliance and Legal Aspects Quiz - Download Now!

Question 1

Which of the following is/are Money Market Instruments?

1. Treasury Bills
2. Commercial Papers
3. Certificate of Deposits
4. All of the above

Answer - Option 4 : All of the above

Question 2

Effective from 15th March, 2003, The Information Technology Act, 2000 has been amended so as to bring which of the following instrument within its purview?

1. Cheques
2. Promissory notes
3. Hundis
4. Electronic cheques and truncated cheques

Answer - Option 4 : Electronic cheques and truncated cheques

Question 3

What is the relationship between demand and price?

1. mutually opposite
2. intimate
3. even
4. odd

Answer - Option 1 : mutually opposite

Question 4

Arrange in proper sequence the following benefits available to Information System Auditor who uses CATT:

A. Check susceptibility to threat. Much of the accounting is done through cloud accounts or other online system. B. Evaluating the system C. Data security D. Bolsters controls E. Develop IT Governance

Choose the correct answer from the options given below:

1. E, D, C, B, A
2. C, B, A, D, E
3. A, B, C, D, E
4. B, A, E, C, D

Answer - Option 3 : A, B, C, D, E

Question 5

If anyone fraudulently or dishonestly makes use of the electronic signature, password or any other unique identification feature of any other person then under which section of IT Act 2000, punishment shall be given?

1. Section 63
2. Section 66B
3. Section 66C
4. Section 67B

Answer - Option 3 : Section 66C

Question 6

The Foreign Exchange Regulation Act was replaced by the in India.

1. Foreign Exchange Currency Act
2. Foreign Exchange Finances Act
3. Foreign Exchange Funds Act
4. Foreign Exchange Management Act

Answer - Option 4 : Foreign Exchange Management Act

Question 7

A paper instructing the bank to pay a specific amount from a person's account to another person in whose name it has been issued is known as:

1. cash
2. cheque
3. passbook
4. currency

Answer - Option 2 : cheque

Question 8

__ is an asset that the borrower owns and uses as a guarantee to a lender, until the loan is repaid.

1. Accessory
2. Ancillary
3. Bail
4. Collateral

Answer - Option 4 : Collateral

Question 9

With which of the following functions of a bank would you associate the term ‘collateral’?

1. Accepting deposits
2. Portfolio management
3. Collection of cheques
4. Granting loans and advances

Answer - Option 4 : Granting loans and advances

Question 10

Under which section of Information Technology Act of 2000, updated in 2008, stealing any digital asset or information is considered as cyber crime?

1. 65
2. 65-D
3. 67
4. 70

Answer - Option 1 : 65

Question 11

If anyone fraudulently or dishonestly makes use of the electronic signature, password or any other unique identification feature of any other person then under which section of IT Act 2000, punishment shall be given?

1. Section 63
2. Section 66B
3. Section 66C
4. Section 67B

Answer - Option 3 : Section 66C

Question 12

Arrange in proper sequence the following benefits available to Information System Auditor who uses CATT:

A. Check susceptibility to threat. Much of the accounting is done through cloud accounts or other online system. B. Evaluating the system C. Data security D. Bolsters controls E. Develop IT Governance

Choose the correct answer from the options given below:

1. E, D, C, B, A
2. C, B, A, D, E
3. A, B, C, D, E
4. B, A, E, C, D

Answer - Option 3 : A, B, C, D, E

Question 13

What is the relationship between demand and price?

1. mutually opposite
2. intimate
3. even
4. odd

Answer - Option 1 : mutually opposite

Question 14

Which of the following issues are addressed by the Information Technology Act. 2000?

(A) Legal recognition of electronic documents (B) Redressal of grievances (C) Offenses and contraventions (D) Disputes settlements (E) Justice dispensation system for cyber crimes

Choose the correct answer from the options given below:

1. (A), (C), (D) Only
2. (C), (D), (E) Only
3. (B), (D). (E) Only
4. (A), (C), (E) Only

Answer - Option 4 : (A), (C), (E) Only

Question 15

A cheque returned by bank marked "NSF" means that

1. Bank cannot verify your identity
2. There are not sufficient funds in your account
3. Cheque has been forged
4. Cheque cannot be cashed being illegal

Answer - Option 2 : There are not sufficient funds in your account, "NSF" stands for "Not Sufficient Funds".

Question 16

ALM Concept primarily deals with:

A) Asset Liquidation Management B) Asset Liability Management C) Asset Liability Mismatch D) Asset Leverage Management

Correct Answer: B) Asset Liability Management

Question 17

What method is commonly used for estimating capital requirements in credit risk management?

A) Linear regression analysis B) Credit scoring C) Monte Carlo simulation D) GARCH modeling

Correct Answer: B) Credit scoring

Question 18

Which regulatory framework introduced the concept of Stress Test and Sensitivity Analysis?

A) Basel-I B) Basel-II C) Basel-III D) Dodd-Frank Act

Correct Answer: C) Basel-III

Question 19

Which regulatory authority is responsible for overseeing compliance in the banking industry?

A) SEC B) SEBI C) RBI D) IMF

Correct Answer: C) RBI

Question 20

What do FEMA regulations primarily govern in the banking industry?

A) Foreign exchange transactions B) Domestic lending rates C) Customer service standards D) Internal audit procedures

Correct Answer: A) Foreign exchange transactions

Question 21

Which of the following is NOT a part of RBI's regulatory framework?

• A) Monetary Policy
• B) Fiscal Policy
• C) Banking Regulation
• D) Supervision and Control

Correct Answer: B) Fiscal Policy

Aptitude and Logical Reasoning

Question

If all Bloops are Razzies and all Razzies are Lazzies, then all Bloops are definitely Lazzies. This statement is an example of:

• A) Deductive reasoning
• B) Inductive reasoning
• C) Abductive reasoning
• D) Fallacious reasoning

Correct Answer: A) Deductive reasoning

Question

A robber received one third of a loot as his share. He spent Rs.288 on food and drinks and then donated half of the remained share to a temple. The balance left with him was 1/24th of the total loot. The robber's share was

1. 3,456
2. 1,152
3. 384
4. 864

Correct Answer: 3

Question

Water is pouring into a tank at a constant rate. When the tank is full, 10 pumps of equal capacity empty the tank in 12 hrs, while 15 pumps of the same capacity empty the tank in 6 hrs. The time which 35 pumps of the same capacity take to empty the tank, if the tank is initially full, will be : (All the pipes pouring water into the tank are always open)

1. 3.0
2. 2.0
3. 4.0
4. 3.5

Correct Answer: 2

Aptitude Question Bank

Data Interpretation

Question

The following line graph gives the percentage of the number of candidates who qualified an examination out of the total number of candidates who appeared for the examination over a period of seven years from 1994 to 2000.

Question 1

In which pair of years was the number of candidates qualified, the same?

1. 1995 & 1997
2. 1995 & 2000
3. 1998 & 1999
4. Data inadequate

Answer - 4

Question 2

The difference between the percentage of candidates qualified to appeared was maximum in which of the following pairs of years?

1. 1994 & 1995
2. 1998 & 1999
3. 1997 & 1998
4. 1999 & 2000

Answer - 3

Question 3

If the total number of candidates appeared in 1996 and 1997 together was 47400, then the total number of candidates qualified in these two years together was?

1. 34700
2. 31500
3. 32100
4. Data inadequate

Answer - 4

Question 4

If the number of candidates qualified in 1998 was 21200, what was the number of candidates appeared in 1998?

1. 32000
2. 26500
3. 28500
4. 25000

Answer - 2

Question 5

The total number of candidates qualified in 1999 and 2000 together was 33500 and the number of candidates appeared in 1999 was 26500. What was the number of candidates in 2000?

1. 24500
2. 20500
3. 22000
4. 19000

Answer - 2