P&PB 2023 QUIZ-1

1. Principal function of banks are :

• a) Accepting deposits
• b) Lending and investing
• c) Non-fund business and remittance services
• d) All of the above (a) to (c)
• e) Only (a) & (b)

2. When a bank lends money to the corporate person the relationship between them is of …..

• a) Borrower and lender
• b) Creditor-debtor
• c) Debtor-creditor
• d) Customer and client

3. What relationship is created when the bank collects a cheque in clearing?

• a) Holder of value
• b) Clearing member and principal
• c) Agent and principal
• d) Collecting bank and holder
• e) None of the above.

4. Demand deposits are those which can be withdrawn…………..

• a) On request
• b) On sanction by Manager
• c) On demand
• d) On persuasion

5. Merchant bankers are………….

• a) Financial brokers
• b) Financial intermediaries
• c) Credit appraisers
• d) Underwriters
• e) All of the above.

6. Objective(s) of KYC is/are…………..

• a) To ensure appropriate customer identification.
• b) To monitor transaction of suspicious nature
• c) To ensure that the customer would not deceive the bank
• d) To ensure if loan is given it would not become a NPA
• e) Only (a) and (b)

7. Banks appoint a________ who is responsible for submission of reports to FIU-Ind.

• a) Designated director
• b) Company secretary
• c) Principal Officer
• d) Compliance officer.

8.Customers are typically categorized in _______ risk categories.

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

9. Director, FIU-India can take action against_______ for violation of PMLAobligations.

• a) The bank
• b) Any employee
• c) The principal officer
• d) All of the above.

10. Non-profit Organizations Transactions Report pertains to_____ in the accounts of NPOs.

• a) Cash transactions
• b) All transactions
• c) Receipts above a threshold value
• d) Cash receipts