MCQ Bank

A banker receives a stop payment instruction of a cheque by any one of the joint account holders; banker can make the payment against that cheque if the payment instruction is signed by

A) Father of any of the joint account holder
B) All of the given options
C) Any one of the joint account holders
D) All the joint account holders

AI Explanation

If any one joint account holder issues a stop payment instruction, the bank must halt payment. To override this and clear the cheque, instructions and signatures from all joint account holders are required.

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Q104

Which one of the following is not the essential of a bill of exchange?

A) In writing
B) Unconditional order
C) Time of payment
D) Promise to pay

AI Explanation

A bill of exchange contains an unconditional order to pay, not a promise to pay. A promise to pay is the defining characteristic of a promissory note, making it the correct option that is not essential for a bill of exchange.

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Q105

Which of the following is the account opening requirement for an illiterate person?

A) Affix of thumb impression in front of the bank officer
B) All of the given options
C) Self-presence
D) Photographs

AI Explanation

Opening a bank account for an illiterate person typically requires personal self-presence, the affixation of a thumb impression in front of an authorized bank officer, and photographs for identification verification.

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Q106

When a customer deposits money in the bank, the bank receives money in the ______________ capacity.

A) creditor
B) fiduciary
C) debtor
D) lessor

AI Explanation

When a customer makes a deposit, the legal relationship established between the customer and the bank is that of creditor and debtor, where the bank acts as the debtor holding the customer's funds as a debt owed to them.

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Q107

Registered mortgage is created through a formal document called ______________________.

A) Transfer deed
B) Title deed
C) None of the given options
D) Mortgage deed

AI Explanation

A registered mortgage is formally created and executed through a legal document known as a mortgage deed, which is officially registered with the relevant land registry or authority.

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Q108

Which of the following represent a business, vocation or profession?

A) Public Agents
B) Special Agents
C) Private Agents
D) General Agents

AI Explanation

A general agent is authorized to conduct all transactions connected with a specific business, vocation, or profession on behalf of the principal, possessing broader authority than a special agent.

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Q109

All of the given persons can open a bank account Except__________________.

A) Female
B) Insane
C) Illiterate
D) Minor

AI Explanation

Under contract and banking law, an insane person lacks the legal capacity to enter into a valid contract, and therefore cannot legally open or operate a bank account.

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Q110

A ____________ is a person who has not attained the age of 18.

A) Major
B) lessor
C) Minor
D) Creditor

AI Explanation

Under general legal frameworks and banking laws, a minor is defined as a person who has not attained the age of majority, which is typically 18 years. Minors lack full legal capacity to enter into binding contracts.

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Q111

A banker’s authority to pay cheques is revoked or cancelled in the following situations EXCEPT_____________:

A) Countermand of payment
B) Notice of customer’s death
C) Notice of adjudication of the customer as insolvent
D) Customer’s absence from the country

AI Explanation

A banker's authority to pay cheques is terminated by countermand (stop payment), notice of the customer's death, or notice of insolvency. A customer simply being absent from the country does not revoke the mandate to honor their cheques.

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Q112

Which of the following are the representatives of the state?

A) Private Agents
B) Public Agents
C) Special Agents
D) General Agents

AI Explanation

Public agents are individuals appointed by the government or state to represent public authority and conduct official state business or administrative functions. They act on behalf of the government rather than private individuals or entities.

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Q113

Bailment involves the change of _________________________.

A) None of the given options
B) Possession
C) Place
D) Ownership

AI Explanation

Bailment involves the delivery of goods by one person to another for some purpose, upon a contract that they shall be returned. It transfers only the physical possession of the goods while the ownership remains with the bailor.

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Q114

Which of the following represent individuals or companies?

A) Public Agents
B) General Agents
C) Special Agents
D) Private Agents

AI Explanation

Private agents are individuals or entities appointed to represent private individuals, companies, or commercial firms rather than public authorities or the state. They handle private business, legal, or financial transactions on behalf of their principals.

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Q115

Following are the duties of the agent Except:

A) Agent to render proper accounts
B) To work for his personal interest
C) To show required skill and diligence
D) To follow principal’s instructions

AI Explanation

An agent has a fiduciary duty to act strictly in the interest of the principal rather than pursuing personal interests. Working for personal interest violates the core legal obligations of an agency relationship.

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Q116

Which of the following function(s) is/are performed by the banker as an agent for the customer?

A) Collection of dividends and bills of exchange
B) All of the given options
C) Buying and selling securities on his behalf
D) Acting as attorney, executor or representative of a customer

AI Explanation

In an agency capacity, banks perform various non-banking services for customers, including collecting dividends and bills, buying and selling securities, and acting as an attorney, executor, or representative.

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Q117

Which of the following is termed as pledge?

A) The transfer of an interest in specific immoveable property for the purpose of securing the payment of money advanced or to be advanced by way of loan, an existing or future debt, or the performance of an engagement which may give rise to a pecuniary liability
B) Availing the locker facility from a bank
C) All of the given options
D) The bailment of goods as security for payment of a debt or performance of a promise

AI Explanation

A pledge is legally defined as the bailment of goods as security for the payment of a debt or the performance of a promise. Option A defines a mortgage rather than a pledge.

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Q118

Availing the locker facility from a bank creates a ____________________ relationship between bank and customer.

A) None of the given options
B) Pawnor-pawnee
C) Bailer-bailee
D) Pledger-pledgee

AI Explanation

When a customer rents a safe deposit box or locker, the bank holds the property entrusted to it, establishing a legal bailment relationship where the customer is the bailor and the bank is the bailee.

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Q119

Which of the following is the right of mortgagee?

A) Right to sell the mortgaged property in case of mortgager default
B) Right to fore-disclosure
C) Right to file suit
D) All of the given options

AI Explanation

A mortgagee holds multiple legal rights upon default, including the right to sell the mortgaged property, the right to foreclosure, and the right to file a suit to recover the debt.

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Q120

Which of the following person is not allowed by law to open an account in the bank?

A) A person without hands or handicapped person
B) Minor
C) Illiterate person
D) All of the given options

AI Explanation

While minors lack the legal capacity to contract, they can open accounts through legal guardians. However, a minor acting completely independently and without legal representation or a guardian cannot open a standard binding contract account by law. Wait, actually, let's look closer: individuals like illiterate or physically handicapped persons are allowed with accommodations, but a minor on their own is legally incompetent. Therefore, none of them are completely barred if proper legal structures exist, or option D? Let's verify standard banking quiz options: minors can open accounts through guardians. But a person who is bankrupt or of unsound mind is barred. Let's check typical banking law MCQs where a minor can open an account with a guardian, but a person of unsound mind cannot. Wait, let's re-evaluate: 'Minor' is often the option in such questions if unrepresented, or 'All of the given options' means none are disallowed because all can open accounts under specific conditions. Let's select D or B? Actually, a minor can open an account with a guardian (as seen in earlier question #5589: 'A minor can open his bank account with his/her... Guardian'). Thus, a minor with a guardian is allowed. Wait, if a minor can open with a guardian, then none of these persons are completely disallowed by law since illiterate, handicapped, and minors (with guardians) can all have bank accounts. Therefore, 'All of the given options' are allowed to have accounts under proper conditions.

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Q121

Which of the following is referred as Bailment?

A) All of the given options
B) The delivery of goods by one person to another for some purpose, upon a contract that they shall, when the purpose is accomplished, be returned or otherwise disposed of according to the directions of the person delivering them
C) Availing the locker facility from a bank
D) Pledge of stocks as security for availing credit from bank

AI Explanation

Bailment is legally defined as the delivery of goods by one person to another for a specific purpose under a contract, with the condition that the goods be returned or disposed of according to the owner's instructions once the purpose is fulfilled.

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Q122

Which of the followings are the types of agent accounts EXCEPT:_______________.

A) Minor Account
B) Joint account
C) Account of a person without arms
D) Account of visually impaired person

AI Explanation

A joint account is held by two or more co-owners rather than being an agency account where one person acts on behalf of another principal. Minor accounts, accounts of persons without arms, or visually impaired persons often involve legal representatives, attorneys, or authorized agents.