Banking Awareness Questions - 24th August 2014 by Gandhi Raveendra Reddy

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Here I am sharing some banking questions which are important for bank exams.
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Banking Awareness Questions - 24th August 2014

181. The Borrowing of the Board of Directors of the Public Ltd Company should not exceed:
Answer: Paid-up capital and free reserves.

182. Working Capital assessment for SSI units sanctioned Working Capital limit upto Rs 5 crore is as per :
Answer: Nayak committee.

183. State-sponsored Corporation granted loan for on-lending to Weaker Section is covered by the bank under: Answer: Indirect advance to agriculture.

184. Hypothecation has been defined in:
Answer: Section 2 (n) of SARFAESI Act.

185. In a cheque drawn by the drawer, the name of payee is written in English and the other parts, in vernacular language:
Answer: The cheque will be paid if otherwise in order.

186. Guarantor stepping into the shoes of creditor on discharging the liability of the principal borrower:
Answer: Right of Subrogation.

187. In Sec 148 of Indian Contract Act, Bailment refers to:
Answer: Delivery of goods from one person to another person for some purpose and when the purpose will be over, goods will be returned or disposed-off as per the direction of the deliverer, i.e. bailor.

188. Know Your Customer (KYC) guidelines:
Answer: Prevent banks from being used unwittingly used by criminal elements for transfer of illegal funds/ money laundering activities.

189. Preferential payment to depositors in respect of winding up of a Banking Company is provided:
Answer: under section 43 A of Banking Regulation Act 1949.

190. If Operating Cycle is longer:
Answer: This implies that higher amount of working capital will be required.

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