Nexus Marketing DRA Training Center, Pune

Contact No: 7875056605/7875068563

Mixed Paper
1. A retail loan is classified as NPA when – i. Principal is overdue for more than 90 days. ii. Interest amount
is overdue for more than 90 days. iii. Principal or interest is overdue for more than a month.
a) Only i
b) Only ii
c) Only iii
d) Only i and ii

2. In respect of recovery of loan, the details of the property given as security for the loan can be obtained
from ________
i. The loan agreement between the debtor and creditor and its schedule.
ii. The loan application given by the debtor to the creditor.
a) Only i
b) Only ii
c) i and ii
d) None of above

3. In India the issuer of credit cards normally gives interest free credit for______.
a) 20 to 25 days
b) 30 to 50 days
c) 40 to 60 days
d) 10 to 25 days

4. SARFEASI ACT is enacted in _______

a) America
b) India
c) England
d) Both a and b above

5. Debtor means ____

a) An individual who owes some loan.
b) An individual who owns some loan.
c) A depositor customer to whose account charges is debited.
d) A guarantor to the loan

6. As Executor and Trustee, Bank can work for and on behalf of its ________
a) Borrower
b) Any customer
c) Only debtor
d) Only locker holder
7. Bank has undertaken work of collecting customers’ cheques. In this situation Bank is acting as
a) Agent
b) Manager
c) Trustee
d) Executive officer

8. Prakash is LIC agent. His parcel has comes in a post office. He requests his friend Avadhoot to bring the
parcel from the post office. What is the role of Prakash in this transaction?
a) Agent
b) Principal
c) Carrier
d) None of the above

9. Customer can be a __________

a) Individual.
b) One or more individuals, partnership firm.
c) Individual, group, company, trust, firm, etc.

10. Bank should observe transactions in a newly opened account for _____________ months. If any
suspicious transaction is observed, it should be informed to appropriate authority.
a) 12 months
b) 24 months
c) 6 months
d) 3 months

11. A saving account customer wants the bank to allow his son to operate his account. The
customer will give ____________ to his son.
a) A cheque
b) Standing instruction
c) Power of attorney
d) Will

12. Under which one of the following law the banker is authorized to disclose information of the customer’s
account?
a) Income Tax Act 1961
b) Companies act 1956
c) Bankers Book Evidence Act 1891
d) All the above

13. Nomination facility is available in _________

a) Safe Deposit Lockers
b) Savings Bank
c) (a) and (b)
d) None of the above.
14. Recurring Deposits are classified under________
a) Savings Deposits
b) Current Deposits
c) Term Deposits
d) Loan Account

15. Home loans are given to the individuals, which one of the following purpose will not be eligible for
availing the home loan?
a) Purchase for own residence
b) For construction of house or a flat
c) For speculative purpose of purchase and sale
d) For repairs and renewals.

16. Which one of the following is correct with regard to credit card an debit card?
a) Account is debited immediately after using credit card.
b) Account is debited immediately after using debit card.
c) Account is not debited after using debit card.
d) None of the above.

17. EMI stands for____________

a) Equated monthly installment of the principal.
b) Equated monthly installment of principal and interest.
c) Equated monthly installment of the interest only.
d) Equated monthly installment of the interest and charges.

18. Loans and advances of the bank are treated as doubtful when they remain in sub-standard category
for a minimum period of_________
a) 6 months
b) 12 months
c) 3 months
d) 18 months

19. Who is merchant in credit card business?

a) A seller who is giving different credit cards.
b) A seller who has accepted payment through the credit cards for the services rendered or
goods sold.
c) A group of persons handling credit cards business.
d) A merchant establishment where variety of goods are available for sale.

20. What is taken into consideration for classifying the advances as N.P.A.?
a) Available securities.
b) Assets of the borrower
c) Assets of the guarantor
d) Record of repayment.
21. The bank which reimburses the merchants is called ________
a) Card issuing bank
b) Clearance bank
c) Merchant Bank or Acquiring Bank
d) None of the above

22. In recurring deposit account the depositor can_______

a) Deposit any amount after a fixed frequency for a specified period.
b) Deposit a certain amount after any frequency for a specified period.
c) Deposit a certain amount after a fixed frequency for any period.
d) Deposit a certain amount after a fixed frequency for a specified period.

23. Traditional functions of bank_________

a) Accepting the deposits
b) Giving loans
c) ( a) and (b)
d) None of the above

24. Which of the following cannot be accepted as address proof?

a) Telephone Bill
b) Bank Pass book
c) PAN card
d) Light Bill

25. What is the relation between Banker and customer in case of Safe Deposit Locker______
a) Lessor – Lessee
b) Pledger – pledgee
c) Principal – Agent
d) Trustee – Beneficiary

26. Loss assets are identified by___________

a) Internal Auditors
b) RBI Inspectors
c) External Auditors
d) All the above.

27. Bank of India is _____________

a) A Private sector bank
b) Foreign Bank
c) Nationalized Bank
d) Regional Rural Bank.

28. Home Loans are given for______________

a) Purchase of New House/Flat/Construction.
b) Purchase of existing property/Flat
c) Renovation of existing house
d) All the above.
29. Scheduled Bank is a bank which is ____________
a) Registered under Companies Act 1956.
b) Permitted to handle Government Business.
c) Regulated as per Banking Regulation Act 1949.
d) Listed in the second scheduled of RBI Act 1934.

30. As per the guidelines of RBI, banks should classify their Loans and advances in this order___
a) Standard, Sub-standard, Loss and Doubtful.
b) Standard, Loss, Sub-standard and Doubtful.
c) Standard, Sub-standard, Doubtful and Loss.
d) Sub-standard, Standard, Loss and Doubtful.

31. State Bank of India is ______________

a) Regional Rural Bank.
b) B. Public Sector Bank
c) Old generation Private Sector Bank
d) Private Sector Bank

32. When a bank can refuse to give information about customer’s account?
a) When bank is gets an order from court.
b) When bank is gets an order from Income Tax Dept.
c) When bank is gets a request from customer’s friend.
d) When a bank is gets a request from the customer.

33. Member’s card means___________

a) Which can be used by club members only.
b) Which can be used in chain of the hotels only.
c) (a) and (b)
d) None of the above

34. Interest on Savings account is calculated on

a) Daily Balance
b) Quarterly average
c) Monthly average
d) None of the above.

35. Banks cannot open account in the name of

a) Mentally Challenged /Lunatic
b) Bankrupt person/organization
c) Minors
d) (a) and (b)

36. Which one of the following is central bank of our country?

a) Central Bank of India
 b) Reserve Bank of India
c) IDBI
d) IBRD

37. Foreign Bank means_________

a) Most of the branches of this bank are out of India.
b) 40% of total capital of this bank is held by Non Resident Indian.
c) Which is registered out of India.
d) None of the above.

38. In Hypothecation of assets __________

a) Possession of goods is handed over to the bank
b) Possession of goods is not handed over to the bank.
c) Possession may be or may not be handed over to the bank.
d) None of the above.

39. While accepting the security for loans, bank confirms that_______
a) The security is saleable.
b) There should not be heavy fluctuations in value of the security
c) The title to the security should be easily transferable.
d) All the above.

40. Retail loans are increasing now a days because_____________

a) Increased level of in the income of public.
b) Due to inflation
c) Due to Poverty
d) Due to default in repayment of loan.

41. Term deposits are accepted for a maximum period of ________

a) 3 years
b) 5 years
c) 10 years
d) 15 years

42. Which one of the following is incorrect statement?

a) No overwriting is allowed on the cheque
b) Two transvers parallel lines on the cheque is called crossing.
c) Thumb impression instead of signature is allowed on cheque.

43. X bank is offering various services to their customers. Customer Y using his phone to get the
required information of his account. Customer Y is using _______________
a) Teller service
b) Internet Banking
c) Tele Banking service
d) A.T. M. service.
44. Retail Loan includes_________________
a) Home Loan, vehicle loan, and corporate loan.
b) Home Loan, vehicle loan, and bridge loans.
c) Vehicle loan, corporate loan and SME loans.
d) Home Loan, vehicle loan, and personal loans.

45. Overdraft shows_____________________

a) Balance outstanding.
b) Zero balance in the account.
c) Debit balance in the account.
d) Credit balance in the account.

46. Which one of the following is out of order account?

a) Outstanding balance in the cash credit account which is more than the limit sanctioned.
b) Outstanding balance in the cash credit account which is less than the limit sanctioned.
c) Both (a) and (b).

47. Overdraft is normally given in_____

a) Savings Bank Account
b) Term Deposit Account
c) Current Account
d) Recurring Deposit account

48. When operations in the account are stopped by the bank?

a) After getting instruction from one of the joint account holder.
b) After getting intimation of death of the sole account holder.
c) After receipt of Garnishee order or any other court order.
d) All the above.

49. A and B are maintaining a joint account with the bank with operating instruction Either or survivor.
After the death of A, his legal heirs are claiming the money in the account. Bank will pay the amount
to_____________________
a) Legal heirs of A
b) Only to B
c) No one
d) R.B.I.

50. Shrihari has presented a cheque on bank counter. He has been given a token. Cheque is passed by
the bank officer. However, before giving him payment, Garnishee Order is received on the above
account. Garnishee Order will ______
a) Be applied on the cheque amount.
b) Not be applied on the cheque amount.
c) None of the above

51. While taking action under SARFAESI Act, a notice of ________ days has to be given to the borrower.
a) 30
 b) 45
c) 60
d) 90

52. Which law has empowered the banks to take possession and sale of the secured assets?
a) RBI Act 1934.
b) Banking Regulation Act 1949.
c) Transfer of Property Act 1947.
d) SARFAESI Act 2002.

53. Which one of the following is not electronic service?

a) Net banking
b) Tele Banking
c) Safe Deposit Locker
d) A.T.M.

54. What is para banking activity?

a) To Give loans
b) To accept deposits
c) To transfer funds
d) To give insurance and other services.

55. How much maximum amount can be accepted by ‘Payment Banks’ in the saving/current accounts of
small businessman or individuals.
a) Rs. 5 lakh
b) Rs. 10 lakh
c) Rs. 1 lakh
d) Rs. 50000

56. It is compulsory for _______ Banks to give ______% of loans to _______ sector
a) Payment Banks, 50 %, Agriculture
b) Payment Banks, 25 %, Small businesses
c) Small Finanace Banks, 75 %, Priority

57. The difference in average rate of interest paid on deposits and average rate of interest received on
loans is called ________
a) Total interest
b) Interest spread

58. The banks give services like agency service for govt. business, financial consultancy, safe deposit
lockers, safe custody, etc. The income earned in the form fees for these services is called _________
a) Interest income
b) Non-interest income
59. How much maximum amount of term deposits can be accepted by Payment Banks from a single
customer?
a) 1 lakh
b) b) 5 lakh
c) 10 lakh
d) Term deposits cannot be accepted

60. Out of all loans given by Small Finance Banks, more than 50 % of the loans should be of Rs.
____________ or below.
a) 50 lakh
b) 10 lakh
c) 5 lakh
d) 25 lakh

61. Limited Liability Partnership can have minimum _______ and maximum __________ partners.
a) 2 and any number of
b) 7 and any number of
c) 2 and 200
d) None of these

62. In case of Limited Liability Partnership (LLP), the audit is compulsory if any partner’s contribution is
more than ______ and annual turnover is more than ________
a) Rs. 25 lakh and Rs. 40 lakh
b) Rs. 50 lakh and Rs. 100 lakh
c) Rs. 75 lakh and Rs. 150 lakh

63. LLP ( Limited Liability Partnership) is controlled by _____________

a) RBI
b) Registrar of Companies
c) IBA
d) Sub-registrar

64. The easy operating of partnership firm, independent legal existence and limited liability of company
are all combined in ______________
a) Partnership firm
b) OCP – One Person Company
c) LLP – Limited liability Partnership
d) Private company

65. What is the minimum amount that can be transferred by NEFT

a) Rs. 100
b) Rs. 1,00,000
c) Rs. 2,00,000
d) No limit for minimum amount.

66. IMPS service is started by ______

 a) NPCI
b) HPCI
c) RBI
d) SBI

67. What is the maximum limit for amount to be sent by RTGS

a) Rs. 10 lakh
b) Rs. 1 crore
c) Rs. 50 lakh
d) No upper limit

68. As per RBI rules, payment of upto Rs._______ can be made, without entering PIN by using touch free
Debit card.
a) Rs. 2000
b) Rs. 10000
c) Rs. 1000
d) Rs. 5000

69. Deposit of Rs.________ from every depositor is insured by Banks.

a) Rs. 1 lakh
b) Rs. 5 lakh
c) Rs. 10 lakh
d) Rs. 25 lakh

70. Which is the institution that insures the deposits up to Rs. 5 lakhs in Banks.
a) DICGC
b) RBI
c) New India Ass. Co.
d) United India Ins. Co.

71. For funds transfer, transactions of upto Rs._______ can be made in cash.
a) 5,00,000
b) 50000
c) 10000
d) 20000

72. Banks charge more rate of interest on which type of loans?

a) Personal loans
b) Temporary Overdraft
c) Housing loan
d) Depends on the amount of loan

73. Debtor has to file a suit for recovery of loan, if the loan is _________
a) Unsecured
b) b. Pledge
c) c. Mortgage
74. Bank has to file case in Civil Court for recovery of loan, if the loan outstanding is less than
Rs.________
a) 10 lakh
b) 15 lakh
c) 20 lakh
d) 25 lakh

75. How much minimum amount can be remitted by RTGS system?

a) 2,00,000
b) 1,00,000
c) 5,00,000
d) 10,00,000

76. Which deposit scheme is also known as Flexi Deposit?

a) Demand deposits
b) Recurring deposits
c) Fixed deposits
d) Hybrid deposits

77. While taking loan against LIC policy, charge is created by ___________
a) Lien
b) Pledge
c) Assignment
d) Set-off

78. The nomination for LIC policy gets cancelled after the policy is assigned to bank / financial institution.
a) Correct statement
b) Incorrect statement

79. If internal auditor, external auditor or RBI auditor has given remarks that any specific loan account
cannot be recovered, then such loan account is considered as ___________
a) Standard Asset
b) Sub-standard asset
c) Doubtful asset
d) Loss asse

80. Normally following life insurance policies are not accepted as security
I. Children endowment policy
II. Policies taken for Capital Gains Tax benefit
III. Children deferred policy
a) True
b) False

81. The type of charge created on gold, while taking gold loan is ______
a) Lien
 b) Assignment
c) Pledge
d) Mortgage

82. When any immovable property is mortgaged as security for loan, the limitation period for the
mortgage is __________
a) 3 years
b) 5 years
c) 12 years
d) 30 years

83. A bank has the right to keep the articles / securities of the borrower with itself till the loan taken by
him is fully repaid under ___________-
a) Right of set-off
b) Right of appropriation
c) Right to Pledge
d) Right of general lien.

84. Primary Agricultural Societies operate in ______________

a) Whole state
b) District level
c) Rural areas
d) None out of these

85. If Loan Revival Letter is taken or signed after completion of ________ from the date of documents,
suit cannot be filed on the basis of these time barred documents.
a) 3 years
b) 5 years
c) 7 years
d) 8 years

86. The __________ scheme is started to provide loans by banks to farmers under single window and to
fulfill their agricultural needs.
a) Kisan credit card
b) Crop loans
c) Land development
d) Minor irrigation

87. No collateral security is asked for loans under MUDRA scheme.

a) True
b) False

88. Business needs current assets for running the day to day business. Such current assets are
called______
a) Credit appraisal
b) Raw material
c) Working capital
 d) Assets

89. When there is no fixed period for repayment of loan, a bank takes _________ from the borrower.
a) Agreement
b) Forms
c) Demand Promissory Note
d) None of the above

90. If a borrower has any dispute with bank, after the bank takes possession of mortgaged property
under SARFAESI ACT, the borrower can file appeal with the DRT within _____ .
a) 7 days
b) 15 days
c) 30 days
d) 45 days

91. A quasi-judicial institution namely ____________ was established for speedy recovery of loans, under
Banks and Financial Institutions Act 1993.
a) Lok Adalat
b) Debt Recovery Tribunal
c) Civil Court

92. The main objective of KYC

a) To establish identity and residential address of customer, by obtaining proper documents.
b) Loan will not be disbursed, even if sanctioned
c) To create database of customers
d) To keep watch on the suspicious transactions.

93. Agricultural loan, which is repayable in _____ months is called short term loan.
a) 12
b) 18
c) 24
d) 36

94. Loans given for plantation of short term and long term fruit plants, flower plants, green houses, etc.
are called________
a) Land development
b) Minor irrigation
c) Farm mechanization
d) Loans for Horticulture, floriculture

95. ________ is a type of credit card. In this card, the transactions done during a specific period are
stored and all are debited to the account at one time.
a) Charge card
b) Credit card
c) Smart card
d) Member card
96. In case of deposit account, the relation between Bank and customer is _________
a) Debtor Bank - creditor customer
b) Creditor Bank - Debtor customer
c) Agent - principal
d) None of above.

97. When interest is paid on savings account?

a) As per Bank’s policy
b) Six monthly
c) Annually
d) Quarterly

98. When demand deposits can be withdrawn by customer

a) On request
b) After sanctioned by the branch manager
c) On demand
d) After follow up

99. If bank pays cheque with forged signature of the customer……………..

a) Bank is not responsible
b) Bank is not responsible as the forged signature cannot be detected by naked eyes.
c) Bank is responsible
d) Bank should contact customer and ask him to do correct signature

100. Cheque /Demand draft is valid for _____ months.

a) 3
b) 6
c) 9
d)
e) 12

101. A cheque with ‘Account payee crossing____________________

a) Can be paid in cash on counter
b) Can be credited to endorsee’s account
c) Can be credited only to payee’s account
d) Can be neglected as there is no legal provision

102. Special crossing on the cheque means

a) Bank’s name is written between two parallel lines
b) Cheque will be credited to payee’s account
c) Complying certain conditions before payment
d) Cash can be received across the counter.

103. Loan against the term deposit in the name of a minor_______________

 a) Can be given after obtaining minor’s signature on the documents, if the minor is more than
14 years old
b) Can be given to minor’s guardian if the loan is required for fulfilling necessities of the minor
c) Can be given with court’s order only.
d) Cannot be given at all

104. In electronic Banking, physical presence in a branch is required for cash withdrawals,
depositing of cash, cheques etc.
a) True
b) False
c) Partially True
d) Partially False

105. The steps taken by the Government regarding anti money laundering are mentioned in.
a) Prevention of corruption Act
b) Anti-conversion Act
c) Banking Regulation Act
d) Prevention of Money Laundering Act 2002

106. Generally, what are the documents acceptable by Banks for residential proof to open an
account.
a) Copy of Ration Card
b) Copy of latest telephone Bill
c) Copy of latest electricity Bill
d) All the above

107. Right of set off of a banker refers to.

a) Settling the matter in the court if the borrower is ready to pay
b) Settling of dues from one customer against dues to another customer.
c) Settling of dues from customer from the deposit of the same customer
d) Settling of the interest due from the customer from the deposit Amount.

108. Additional security given by the borrower over and above the asset on which loan is
given Is known as.
a) Primary Security
b) Tangible Security
c) Intangible Security
d) Collateral Security

109. A standard asset is defined as an asset which is.

a) Not a Non Performing Asset
b) A Doubtful Asset
c) A Loss Asset
d) None of the above

110. NPA accounts include

a) Substandard assets
 b) Doubtful assets
c) Loss assets
d) All of these

111. The debt recovery tribunal handles the loan cases of

a) Upto Rs. 10 Lakh
b) Up to Rs. 5 Lakh
c) Rs. 10 Lakh & above
d) Unlimited

112. Which of the following mode of payment is most favourable to banks in case of a compromise
proposal?
a) Paying entire amount in one shot or in very short period.
b) Paying compromise amount within a year with instalments.
c) Paying compromise amount within 3 years and providing additional security of house.
d) Placing the amount in fixed deposit and maturity proceeds to be adjusted against loan.

113. As per Sec. 138 of negotiable Instruments Act 1881, payee of a cheque can initiate a criminal
case if the cheque is returned unpaid for the reason of________.
a) Refer to drawer
b) Payment stopped by the drawer
c) Post-datedcheque
d) Insufficient funds

114. The Securitization & Reconstruction of Financial Assets and enforcement of Banking
security Interest Act allows the banks to take possession of assets of defaulting
borrowers
a) With the legal process
b) Without the legal process
c) With the permission of Lok adalat
d) None of these

115. The parameters of compromise are

a) Reduction of interest
b) Reduction in principal
c) Both ‘a’ & ‘b’
d) None of the above

116. Loans & advances of banks appear in annual financial statements on the sides of.
a) Liabilities
b) Assets
c) Income
d) Expenditure

117. The term Banking has been defined in.

a) Banking Regulation Act 1949
 b) RBI Act 1934
c) Negotiable Instrument Act 1881
d) None of the above

118. A Bank is an intermediary which deals with the money belonging to the public.
a) True
b) False

119. Which of the following is a valid document for customer identification (KYC)?
a) Ration card
b) Photograph
c) Election ID Card
d) All the above

120. Driving Licence, Passport or Election ID card is a valid document as a residential address of the
new customer.
a) True
b) False

121. Co-operative Banks are registered with the registrar of co-operative societies and they operate
on co-operative principles.
a) True
b) False

122. Accepting Deposits and Lending Money are known as.

a) Traditional Functions of the Bank
b) Commercial Functions
c) E-Banking
d) Foreign Exchange Business

123. Saving Accounts contain restrictions regarding.

a) Number of withdrawals per quarter
b) Amount of withdrawal per transactions in ATM
c) Number of deposits into the account per quarter
d) Both (a) and (b) above

124. No interest is paid by the Banks on.

a) Saving Deposit Accounts
b) Recurring Deposit Accounts
c) Current Accounts
d) Term/Fixed Deposit Accounts

125. When a customer opens a saving Bank Account with a minimum balance of Rs. 500
what is the relationship between the customer and the Bank.
a) Creditor and Debtor
b) Debtor and Creditor
 c) None of the above

126. Customer gives standing instructions to the Bank to pay his insurance Premium. What
will be the relation between Banker and customer?
a) Agent and Principal
b) Principal and Agent
c) Lessor and Lessee
d) Debtor and Creditor

127. Fixed Deposits can not be……………………..

a) Renewed for a further period on maturity date
b) Transferred to Third Parties
c) Paid before maturity date
d) All the above

128. RBI had issued directive to all the banks for complying with the procedure of know your
customer (KYC) in the year.
a) 2001
b) 2005
c) 2002
d) 2006

129. Joint Accounts can be opened with instructions payable to.

a) Either or survivor
b) Former or survivor
c) Jointly or survivor
d) Anyone out of (a) (b) or (c)

130. The term customer is defined under

a) Banking Regulation Act, 1949
b) Indian Contract Act, 1872
c) Negotiable Instrument Act, 1881
d) None of the above

131. Garnishee Order is issued at the instance of

a) Paying Banker
b) Collecting Banker
c) Judgment Creditor
d) Judgment Debtor

132. Ownership of a negotiable instrument payable to order is completed on

a) Delivery only
b) Endorsement only
c) Endorsement and Delivery
d) Assignment
133. A crossing of a cheque means.
a) Two horizontal lines on a cheque
b) One straight line across the cheque
c) Two transverse Parallel lines on a cheque
d) Two lines across the cheque

134. Fastest-mode of remittance is

a) By Telegraphic Transfer
b) Demand Draft
c) By Mail Transfer
d) Electronic Mail Transfer

135. When the Banker- Customer relationship is terminated.

a) On the death of the customer
b) On customer becoming lunatic
c) On customer being declared insolvent
d) On closure of the account

136. Nomination in respect of Bank’s deposit accounts

a) Automatically cancels ownership of the depositor
b) Supersedes Bank’s right of set-off
c) Does not affect the right of claim of legal heirs.
d) Extinguishes the claim of legal heirs against the nominee

137. When a Banker gives opinion to the other banker regarding financial position / standing
of his customer, the opinion should be
a) Open document
b) Confidential
c) Not necessarily confidential
d) None of the above

138. Credit risk to the Bank is higher from the

a) Debit card holders
b) Credit card holders
c) Both the above
d) None of the above

139. Offering Safe custody facility and lockers is

a) Main functions of the Bank
b) Traditional functions of the Bank
c) Miscellaneous functions of the Bank
d) Not a function of the Bank

140. Internet Banking, Telephone Banking / ATM Banking and Mobile banking are called.
a) Commercial Banking
b) Retail Banking
 c) Foreign Banking
d) Electronic Banking

141. Commission / Exchange or fee earned on Miscellaneous services of the Banks is known as non-
interest income.
a) True
b) False

142. When a customer avails an overdraft facility with the Bank, their relationship is known as.
a) Lessor and Lessee
b) Debtor and Creditor
c) Principal and Agent
d) Trustee and Beneficiary

143. Current Account deposits and saving bank Account deposits are called.
a) Flexi deposits
b) Term deposits
c) Demand deposits
d) Hybrid deposits

144. Minimum period for which fixed deposits can be accepted by the Bank is
a) One Month
b) Seven Days
c) Fifteen Days
d) Three Months

145. Housing Loans are usually granted for

a) Short Term
b) Medium Term
c) Long Term
d) Either (b) or (c)

146. Property mortgaged equitably as security against a loan attracts stamp duty.
a) On the loan amount granted
b) On the value of the property
c) No stamp duty is required to be paid
d) A fixed stamp duty is required to be paid

147. A loan for refrigerator is granted against the security of.

a) Pledge of item financed
b) Hypothecation of item financed
c) Mortgage of item financed
d) Mortgage of other assets of the borrower

148. RBI has classified loans into

 a) Three categories
b) Two categories
c) Four categories
d) Five categories

149. A Performing asset is also called

a) Standard Asset
b) Sub-standard Asset

150. A sub-standard asset would be one, which remains NPA for

a) 3 months
b) 6 months
c) 12 months
d) 24 months

151. Loan account of a Bank will be classified as Non Performing Asset (NPA) If it remains
overdue for a period of.
a) 90 days
b) Less than 90 days
c) More than 90 days
d) More than 180 day

152. If an Asset’s recovery seems improbable on the basis of currently known facts, condition of the
security for the loan, it is called as.
a) Loss Asset
b) Doubtful Asset
c) Sub-Standard Asset
d) Standard Asset

153. Ancillary services provided by Bank include.

a) Credit cards
b) Selling of Mutual Funds
c) Insurance Products
d) a, b and c above

154. Retail loans are generally granted to.

a) Professionals, Individuals, Company
b) Individuals, Companies, Institutions
c) Professionals, Salaried Employees, Corporations
d) Professionals, Salaried Employees, Individuals

155. When to visit Agriculturist borrowers for recovery.

a) When they sow seeds for crop
b) When the crop is ready
c) When the crops are sold
d) When the season of the crop is over
156. Which of the following precautions should be taken before seizure of security ?
a) Notice of seizure should be given to the borrower and guarantor.
b) Local police should be informed.
c) Seizure should be done is presence of two independent witnesses.
d) All of the above

157. Under which of the following circumstances compromise is strongly recommended ?

a) Overall security with bank is weak
b) Documentation is defective
c) Borrower / guarantor is likely to abscond
d) All of the above

158. Lok Adalats are beneficial to both borrower and bank because of.
a) Speedy disposal of dispute
b) Case is not postponed again and again and the efforts are made for the settlement of the
loan.
c) Court fee is returned if case is settled in Lok adalat
d) All of the above

159. DRT Act was passed in the parliament, for the purpose of
a) Speedy recovery of debts of banks and financial institutions
b) Look into the complaints of customers against bank
c) Reduce frauds in banks
d) None of the above

160. Demand Draft is.

a) An instrument issued by a bank to public for value received
b) An order to pay the amount of an instrument drawn by bank upon itself or upon another
bank to pay a certain amount either to the payee or to the person specified by him.
c) An order to pay amount of an instrument drawn by one branch of a bank upon another
branch of same bank.
d) None of the above.

161. Debt Recovery Tribunals take up the cases of

a) Recovery of loans / advances
b) Takeover of sick industrial units
c) Amalgamation of weak companies
d) Winding up of a company

162. Cash credit is an arrangement by which a banker allows his customer………………….

a) To borrow money upto a certain limit against certain type of securities.
b) To withdraw cash on credit
c) To withdraw amount for long term investment
d) To withdraw amount on long term basis.
163. Interest on cash credit account is charged on
a) Daily Products
b) Maximum debit balance in a month
c) The debit balance as on last Friday of the month
d) On the total limit whether limit utilized or not

164. Repayment of Home Loans is generally in.

a) Equated Monthly Instalments
b) Variable Monthly Instalments
c) Balloon repayment
d) Equal monthly instalments

165. Collateral security means

a) Goods pledged / hypothecated
b) Loan against supply bills
c) Loan against raw materials
d) Additional security given over and above the asset for which loan is given.

166. A mortgage means

a) Sale of an immovable property within specific timeframe in case of default in payment.
b) Giving possession of an immovable property as security for the loan
c) Pledging a property for securing a loan
d) Transfer of an interest in specific immovable property for purpose of securing a loan.

167. Which of the following statement is correct in case of equitable mortgage.

a) Mortgage deed is registered with the sub registrar
b) The Mortgage deed is executed by the borrower and registered with the bank.
c) No mortgage deed is required to be executed.
d) A special deed is executed by the mortgagor if the property is situated outside the notified
town.

168. The liability of the guarantor is.

a) Primary
b) Borrower and the guarantor to take the responsibility jointly
c) Co-extensive with that of a principal debtor
d) None

169. When bank grants overdraft facility to a customer but account is in credit balance is.
a) Debtor of the customer
b) Principal of the customer
c) Creditor of the customer
d) Trustee of the customer

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

i) Both Debit and Credit Cards are Credit Products
ii) Overdraft and Term Loans are one and same
 a) Both (i) and (ii) are correct
b) Both (i) and (ii) are wrong
c) (i) Correct and (ii) wrong
d) (i) wrong and (ii) correct

171. Once a draft is issued.

a) Purchaser has no right to get it cancelled.
b) The issuing bank may cancel the draft at the request of purchaser by obtaining indemnity
bond with two sureties
c) The purchaser can get the draft cancelled before it is delivered to the payee.
d) None of the above

172. Which of the following is not eligible for opening a saving bank account
a) An individual
b) A partnership firm / A proprietorship firm
c) A Company
d) B & C

173. Interest on term deposits is compounded at the intervals of……………….

a) 3 months
b) 6 months
c) 9 months
d) 10) 12 months

174. banks’s Fixed Deposits is characterized by……………

a) Fixed / Floating interest rate as agreed by the customers at the time of the deposit.
b) Fixed period of the deposit.
c) Periodical repayment of interest
d) All the above

175. One of the important steps in Money Laundering………………..

a) Placement & Layering
b) Organisation & Controlling
c) Depositing & Withdrawing
d) All of the these

176. Retail loans include…………………

a) Home loans, Auto loans, Corporate loans
b) Home loans, Auto loans, Bridge loans
c) Auto loans, Corporate loans, Credit card dues
d) Home loans, Auto loans, Personal loans

177 . Which on constitutes the largest percentage of Retail loans in India?

a) Auto loans
b) Home loans
c) Personal loans
 d) Personal overdrafts

178. Bank can disclose customer’s information in exceptional circumstances. Which of the
following is not such exceptional circumstance?
a) In case of accounts, which are more than 5 years old.
b) When customer has given written consent to the bank to do so.
c) When this matter is related to the tax authorities.
d) When intervention of the court is there in some specified cases.

179. In mortgage, the possession of mortgaged property remains with _______

a) Lender
b) Borrower
c) Guarantor
d) Borrower’s lawyer

180. Customer has taken personal loan from bank. What is the relation between customer
and bank?
a) Creditor and debtor
b) Debtor and creditor
c) None of above

181. The deposits of a Bank are shown on which side in its Balance sheet
a) Assets
b) Income
c) Liabilities
d) Expenses

182. Sometimes banks take smaller EMI in the beginning and bigger EMI afterwards. This type of
loan repayment is called _________
a) Step up loan
b) Housing loan
c) Vehicle loan
d) Cash credit

183. Money laundering means

a) To convert assets into cash
b) To convert illegally obtained money into legally obtained money
c) To convert cash into gold
d) To convert cash into assets

184. The repayment period of term loan is normally ______

a) 3 years
b) 3 to 15 years
c) 7 years
d) 10 years
 185. Out of the total retail loans which one is at the second position in terms of amount
a) Vehicle loans
b) Personal loans
c) Housing loans
d) Credit cards

186. Which of the following statement is not correct.

The deposit receipt is given by …………….
i) The branch accepting the term deposit.
ii) The controlling office of the Bank.
iii) It cannot be transferred.
iv)This is a proper negotiable Instrument.
a) (ii) and (iii) only
b) (i) and (iv) only
c) (ii) and (iv) only
d) (i) and (iii) only

187. Which of the following is not a retail loan?

a) ‘A’ bank gives loan to a doctor for purchase of computer
b) Mr. Ram obtains housing loan of Rs.10,00,000 from a bank
c) Bank sanctions working capital finance to M/s Tata Motors
d) Bank D sanctions loan to Mrs. Sunita for purchase of Tata Indica car.

188. The term loans are given _______

a) To meet the daily expenses
b) For purchase of consumer durables
c) To purchase assets of long-term value
d) To purchase liability

189. Nomination can be made in favour of

a) Association
b) Society
c) Trust
d) Individuals

190. Which of the following is not an asset held commercial banks?

a) Bills of exchange
b) Current account
c) Money lent at short notice
d) Credit balances with the Reserve Bank
191. What is Repo rate?
a) is the rate at which the RBI lends to State government
b) is the rate at which the International aid agencies lend to RBI
c) is the rate at which the RBI lends to bank
d) is the rate at which the banks lends to RBI

192. Which of the following instruments is used by public to directly lend to the Government?
a) Bank Deposits
b) Public Provident Fund
c) T-Bills
d) Certificates of Deposit

193. Commercial paper can be issued ____________

a) By all corporates
b) By all corporates with net worth of at least Rs. 10 crores
c) By all corporates with net worth of at least Rs. 5 crores
d) Can be issued only by banks

194. For opening accounts of Politically Exposed Persons (PEP) they are classified under
a) High risk category
b) Low risk category

195. Any suspicious transaction by banks is reported

a) to Financial Intelligence Unit – IND
b) to RBI

196. An insanity person above 18 years of age can open

a) Savings Deposit A/c
b) Term Deposit A/c
c) Current Deposit A/c
d) None of this

197. Following documents are Mandatory for withdrawal of amount of illiterate person
a) Pass Book
b) Cheque Book
c) Voter ID Card
d) None of this

198. Full KYC exercise should be done at least once in …. for high-risk individuals and entities.
 a) 2 Years
b) 3 Years
c) 4 Years
d) 5 Years

199.Mortgage charge is registered in case of Housing Loan with

a) Registrar of Properties
b) Local Municipal Authority
c) RBI
d) None of this

200. In the case of assignment of LIC - Policy as a security to an advance, the assignment is not complete
unless a notice of assignment is given to the insurance company
a) TRUE
b) FALSE

201. The above notice of assignment may be given either by the assignor or by the assignee.
a) TRUE
b) FALSE

202. One of the essential requirement of a pledge is the actual or constructive delivery of the goods
pledged by the pledger to the pledgee.
a) TRUE
b) FALSE

203. Hypothecated or pledged moveable asset can only be possessed with intervention of Court for
overdue loan
a) Correct
b) Partly correct
c) Incorrect
d) Partly incorrect

204. The immovable property to be mortgaged should bear a clear, absolute and marketable title and
should be free from all encumbrances.
a) True
b) False

205. When the possession of the goods is with the Banker, the nature of charge created is known as
 a) Hypothecation
b) Lien
c) Pledge
d) Assignment

206. Mortgage relates to immovable property whereas hypothecation relates to movables.

a) True
b) False

207. In case of pledge and hypothecation, the title in the goods is not transferred to the Bank.
a) True
b) False

208. Banks lend against the Life Insurance policy based on the ……. of the Policy
a) Surrender value
b) Policy value
c) Total premium paid
d) Banks can’t lend

209. In case of Joint borrowers, it is necessary to obtain revival letters from all joint borrowers, to
extend the limitation against each one of them.
a) True
b) False

210. Bailor -Bailee relationship is applicable in

a) Cash deposit with cashier by customer
b) Safe deposit locker
c) Demand draft issued by Bank
d) Safe custody of articles with the Bank

211. The certificate to commence business is to be called for perusal and returned for opening of an
account of _________
a) Public limited company
b) Club and association
c) Private limited company
d) Trust

212. A “Govt. company” means any company in which not less than __% of the paid-up share capital is
held by the Central/State Govt.
a) 50%
 b) 51%
c) 75%
d) 90%

213. In case of remittance, Bank’s role is that of

a) Agent
b) Bailor
c) Debtor
d) Creditor

214. The order of the Income Tax Officer may attach

(i) any debts due and payable
(ii) debts due but not payable on the date of the receipt of the notice and
(iii) any amount received subsequently
a) True
b) False

215. On receipt of the Garnishee order (Nisi), Bank is entitled to recover its own dues first, by exercising
its Right of Set off.
a) True
b) False

216. With regard to LLPs, there is no separation of Management from owners

a) True
b) False

217. Accounts of insolvent persons are not covered by Garnishee Order.

a) True
b) False

218. HUF can not be admitted as a partner in the Partnership Firm

a) True
b) False

219. One Person Company must have minimum of one Director and the maximum number of directors
can be
a) 10
b) 15
c) 20
d) 25

220. A Public Ltd company is formed with a minimum of --- members

 a) 2
b) 7
c) 10
d) 15

221. A Private Ltd Company has a minimum of two members and a maximum of --- members
a) 50
b) 100
c) 200
d) 250

222. Limited Liability Companies (LLPs) can not raise funds from Public
a) True
b) False

223. Who is the Beneficiary / Payee in respect of Cheque?

a) Check issue /Issue person who does
b) The person who receives the amount of the cheque.
c) Pay the check amount / Payment the doer
d) None of the above.

224. Cash withdrawals through credit cards are subject to charges.

a) right
b) mistake

225. The rule of thumb for using a debit card is "Buy now and pay immediately" while in the case of a
credit card The principle "buy now and pay later" applies.
a) right
b) mistake

226. Benefits of Rupay Debit Card

a) Accepted by all merchants.
b) Strength of the brand / brand name Rupe.
c) Product platform flexibility.
d) All of the above.

227. If the transaction in the ATM is not successful, the customer can complain to the bank. If the bank
does not return the amount within five days, the customer is required to pay a compensation of
Rs.100 per day.
a) right
b) mistake

228. Transactions done by Micro ATMs

a) Account Deposit/Withdrawal Deposit /withdrawal of money
b) Funds Transfer
c) To get information about the balance in the account Balance Inquiry
 d) All of the above.

229. N. i. As per Section 138 of the Act, within how many days can the payee / beneficiary give notice
in writing to the drawer / drawer after dishonor of a cheque?
a) 7 days
b) 15 days
c) 30 days
d) None of the above.

230. Classification of Micro, Small and Medium Enterprises is based on their investment in plant -
machinery - Micro up to Rs.1 crore, Small up to Rs.10 crore, Medium up to Rs.50 crore.
a) right
b) mistake

231. What things do banks consider before sanctioning loans / advances?

a) Security and liquidity of loans.
b) Profitability and purpose.
c) Risk and collateral assets
d) All of the above

232. CIBIL Score is a three-digit number that indicates the credit rating of a borrower. The closer the
score is to 900, the higher the chance of loan/credit card approval.
a) right
b) mistake

233. Non-Fund Based Loan Facility

a) Bank guarantee
b) Letter of credit
c)Co-acceptance and underwriting
d) All of the above

234. Which statements are true regarding personal loans (personal or clean loan)?
a) The net worth of the borrower should be satisfactory.
b) No tangible goods or assets are purchased through this loan.
c) Bank does not receive any security
d) All of the above

235. Norms for Micro, Small and Medium Enterprises etc

a) Micro-enterprises: Investment limit for machinery is Rs.1 crore, annual turnover is
Rs.5crore
b) Small Scale Industries : Investment above 1 Crore - 10 Crore, turnover up to 50 Crore
 c) Medium : Investment above 10 crores - 50 crores, turnover up to 250 crores
d) All of the above

236. Pradhan Mantri Mudra Yojana provides three types of loans/advances to non-agricultural non-
corporate entities.
a) Infant Category : Upto Rs.50000
b) Juvenile Category: Rs 50001 - 5 Lakhs
c) Youth Category : Rs 500001- 10 Lakhs
d) All of the above

237. Industries included in the priority sector

a) Agriculture and MSME
b) Export Industry and Renewable Energy
c) Home buying and education
d) All of the above

238. The following statements are true regarding establishment of Credit Guarantee Fund Trust for
Micro and Small Enterprises.
a) To facilitate first generation entrepreneurs to get loans from banks without supple mentar
collateral.
b) Established in association with Government of India and Small Industries Development Bank
of India
c) In case of non-repayment of bank loans by small enterprises, 75-85% of the loan amount
will be repaid by the trust to the banks.
d) All of the above

239. Disadvantages to Credit Card holders:

a) Over Spending ending in Debt Trap
b) Frauds due to loss or theft of cards
c) Forged signatures
d) All of the above

240. Who can participate in Atal Pension Yojana?

a) Workers in the organized sector.
b) government employees.
c) Workers in the unorganised sector

241. In whose name is the vehicle insured while buying a vehicle with the help of a bank loan?
a) Bank's name
 b) guarantor's name
c) Borrower's name with bank clause

242. What are the five C/C's that banks rely on while sanctioning loans?
a) character, collateral, capacity, capital, climate.
b) character, collateral, capacity, capital, clauses
c) Character, Collateral, Capacity, Capital, Conditions

243. Which statement is true of the check truncation system?

a) Clearing and settlement system based on photographs of cheques.
b) There is no physical exchange of cheques between banks.
c) The beneficiary of the cheque (payee) receives the cheque money early
d) All of the above.

244. What are the advantages of check truncation system?

a) Recovery of cheques is fast
b) It is possible for banks to provide better customer service
c) To prevent frauds in the clearing process and to ensure speedy accounting. (early
reconciliation)
d) All of the above

245. What method is used for electronic fund transfer?

a) Swift (S W I F T)
b) RTGS, NEFT
c) Internet Banking with Mobile Phones
d) All of the above

246. Which statement is true regarding the E-KYC process?

a) This is a paperless process used by banks to open new customer accounts.
b) UIDAI has approved verification of the "Know Your Customer (Kyc)" system.
c) Important information (name, age, gender and photo) of new customers is shared
electronically by UIDAI with banks.
d) All of the above

247. Which statement is true about digital locker?

 a) It is a digital wallet made available to a person to secure his important documents (PAN card,
driving license, election id card).
b) There is no need to carry physical documents.
c) When required, the person can share virtual documents of his Digi-Locker account with
government agencies
d) All of the above

248. Which statement is true about charge cards?

a) It is a special type of credit card.
b) The cardholder's purchase transactions are collected at the end of the month and the
amount is transferred to his account.
c) If there is not enough money left in the account at that time, then a period of 20-50 days is
given to the cardholder.
d) All of the above

249. Which statement is not true about the safe custody of documents and valuables?
a) Customers have to pay a fee to the bank while availing this service
b) After placing the goods in a closed wallet/box and handed over to the bank, the receipt is
given to the customer.
c) The bank has general lien on such items

250. Which statement is not true about the Hindu Undivided Family (H.U.F.)?
a) H U F is not formed by any contract.
b) The oldest member of H U F is called a coparcener to the doer and family members.
c) Women and daughters of the family do not get the status of co-heirs.
d) HUF cannot join any partnership firm

251. What are the differences between mortgage loans and housing loans?
a) The customer mortgages his residential or commercial property to the bank and takes a
mortgage loan for business/education/other expenses Home loan is given for
purchase/construction of residential house.
b) Banks charge higher rates of interest and higher margins (50-60%) while lending to
c) mortgages Home loans attract the lowest rate of interest and the margin is low (10-20%)
d) All of the above

252. Which statement is not true about overdraft?

a) This facility is provided only on current accounts and must be repaid by the bank as soon as
it demands it.
 b) The bank charges interest on a daily basis on the surcharge.
c) When compared to other loans, interest is charged at the lowest rate

253. Loans to be made on the collateral of shares and bonds

a) Such loans are given to individuals to meet their financial needs or to make new investments
in the capital markets.
b) Loan amount is minimum Rs. 1 lakh and maximum Rs. 10 lakh (if shares/bonds in physical
form). If the shares are in de-materialised form, the maximum loan is Rs 20 lakh.
c) A 50% margin is placed on shares in physical form and 25% on shares in de mat form.
d) All of the above

254. The Reserve Bank of India is the central bank authority and regulatory body of India
a) Regulates the Indian Banking System
b) Regulates capital markets
c) Makes rules and regulations for running an insurance business
d) Prepares guidelines for pension funds

255. The Reserve Bank of India is the central bank authority and regulatory body of India and its
functions
a) Financial Control/ Inflation Control
b) Monitoring clearing and settlement systems
c) Managing Government Debt
d) All of the above

256. The Securities and Exchange Board of India (SEBI) is the capital market regulatory authority of
India.
a) Share Market and Debt Market Supervision and Control
b) Foreign Investors Foreign Institutional Investment Control
c) Share market brokers control
d) All of the above

257. IRDAI acts as a regulator for which sector

a) Banking
b) Insurance
c) Capital Markets
 d) Pension

258. PFRDA acts as regulator for which sector in India

a) Banking
b) Stock Market
c) Insurance
d) Pensions

259. The Reserve Bank of India is the banking regulator and central bank of our country.
a) It was established on 1 April 1935 as per RBI Act 1934.
b) She is in the highest position as a regulator and is the banker of the bank
c) It issues rules and guidelines on banking regulatory developmental promotional work
banking
d) Licenses banking structure
e) All of the above

260. SWIFT, an international electronic organization

a) Works to enable our member banks all over the world to handle international electronic
funds from each other.
b) In India
c) United States and England
d) In England and India

261. For whom is the Prime Minister's Mudra 100000 scheme?

a) Infant
b) Juvenile
c) Young
d) Old

262. For whom is the prime minister's mudra 40000 scheme?

a) Infant
b) Juvenile
c) Young
d) Old

263. For whom is the Prime Minister's Mudra 400000 scheme?

a) Infant
 b) Juvenile
c) Young
d) Old
264. For whom is the Prime Minister's Mudra 900000 scheme?
a) Infant
b) Juvenile
c) Young
d) Old

265. According to the Stamp Act, a document implemented in India must be duly stamped
a) Within 30 days of execution
b) According to the Stamp Act, a document implemented in India must be duly stamped before
implementation or at the time of implementation
c) Only before execution
d) at any time, but before filing a suit

266. One of the following statements is not true

a) The court cannot waive the delay in filing the case if the documents have a time constraint.
b) In India, if the demand promissory note is not stamped before or at the time of execution,
the defect can be removed by paying a fine.
c) When the borrower accepts the loan before the expiry of the limit period, the limit period is
extended by another period.
d) If the borrower makes a partial payment to the loan account before the expiry of the limit

267. ……………………………… Rs. The SARFACI Act does not apply to outstanding loans up to
a) 1 lakh
b) 5 lakhs
c) 2 lakhs
d) 10 lakhs

268. Atal Pension Yojana ................................

a) Government Pension Scheme which provides old age security to unorganised sector workers
who are not covered in any social security scheme
b) Registration can be done from the age of 18 to 40 years
c) The subscriber shall be entitled to Rs. Fixed pension is given in the range of 1000 to 5000
 d) All of the above

269. ........................ before setting off Give or send appropriate notice.

a) To the Bank
b) To the depositor/ borrower
c) To the investor

270. There is no set-off rights available in the Joint Account.

a) Any right
b) Right to Borrow
c) Right to Appropriation

271. If the amount is kept under trust, the bank cannot exercise jurisdiction over another account
against the deposit balance
a) false
b) true

272. Single owner's account trading form account and which of its accounts cannot be combined
a) Government Department
b) Savings Account
c) Personal Account

273. When is the set-off right created?

a) When two parties are each other's creditors as well as lenders
b) One account is in deposit and the other account is in minus
c) All of the above

274. Micro Unit Development and Refinance Agency Limited (MUDRA) is a .............................. set up
by the Government of India It is
a) Rules
b) New Institutions
c) New Plan

275. Maximum guarantee for loan amount not exceeding Rs 50 lakh but less than Rs 1 crore
..................... It is
a) 75%
b) 80%
 c) 66%

276. What can be taken a Mudra loan for?

a) Business Instalment loans need working capital plant and machinery procurement office
renewals.
b) Auto Loan: Car Loan and Two-Wheeler Loan for Commercial Vehicle Loan Business
c) A and B
d) None of these

277. All advances made on or after April 8, 2015 have been classified as loans under PMMY
a) Investment Loan
b) Mudra Loan
c) Product Marketing Loan
d) Commercial Loans

278. On August 30, 2000, an initiative of the Government of India was launched
a) Pradhan Mantri Mudra Yojana
b) General Guide to Priority Sector Loans
c) Registration of implemented documents
d) CGTMSE in collaboration with the Ministry of Micro, Small and Medium Enterprises and
the Small Industries Development Bank of India (CDB-SIDBI).

279. Within how many hours banks should immediately return articles of disrespect to customers
without any delay in any situation
a) 5 hours
b) 12 hours
c) 7 hours
d) 24 hours

280. Which is not appropriate with respect to bank drafts

a) There are three parties in the draft
b) Bank branch issues diane called "drawer"
c) The bank branch at which it is issued or the branch to which it is given has to pay as a
"drawer"

d) The party that wants it is called a " PAYEE “