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Advanced Wealth Management Course (IIBF) - Paper 6

Ch 2: Types of Deposit Accounts

Q1.

“Hybrid” Deposits are:

Term Deposits only

Demand Deposits only

Combination of term and demand deposits both

None of the above

Q2.

“Know your Customer” (KYC) guidelines of RBI are mandatory:

For current account only

For savings bank account only

For term deposits only

For all customers

Q3.

Which bank can give interest on savings bank for more than 3.5% per annum?

All Co-operative Banks

All private sector banks

Scheduled Commercial Banks with deposits less than Rs. 25 crores

None of the above

Q4.

Non-Resident Indian (NRI) can open FCNR(B) deposit account

In Sterling Pound only

In US Dollar only

In US Dollar and Pound Sterling only

In five designated currencies i.e. US Dollar, Pound Sterling, Euro, Australian and Canadian Dollar

Q5.

Now, Interest on Savings Bank account is calculated:

On daily balances

On minimum weekly balance

On minimum balance of a month

On minimum balance between 10th and last day of the month

Q6.

Interest on fixed deposits:

Is contractual and cannot be changed in any case during the period of deposit

Can be changed only if the deposit remained with the bank for a minimum period of one year

May be changed at the written request of a depositor if there is upward change in the rate of interest after pre-maturing the fixed deposit

Will automatically change whenever bank changes rate of interest for a particular type of period.

Q7.

HUF (Hindu Undivided Family) account is opened:

Jointly in the name of Karta and all adult male and female members of the family

In the name of Karta or in the name of HUF business

Jointly in the name of all coparceners

Jointly in the name of Karta and any one coparcener

Q8.

Deposit Insurance And Credit Guarantee Corporation (DICGC) provides deposit insurance upto:

Rs. 1 lakh in one account

Rs. 2 lakhs in one account

Aggregating Rs. 1 lakh in all accounts in a bank

None of the above

Q9.

In the case of a Trust account:

Trustee or Trustees can delegate their powers if permitted by the Trust Deed

Any trustee or all trustees cannot delegate their powers in any circumstances

A trustee can delegate his powers to other trustees

All trustees can by common consent delegate their powers to outsiders

Q10.

For the debts of a partnership firm:

Only male partners are liable

Only working partners are liable

Those partners are liable who agree in writing at the time of opening the account to bear the liability, if any.

All partners (whether working or sleeping) are jointly or severally liable.

Q11.

(I) There is no restriction on the number and the amount of withdrawals from a Current account. (II) Current accounts are non-interest bearing and banks are not allowed to pay interest or brokerage to the current account holder.

Both the statements are correct

Only statement (I) is correct

Only statement (II) is correct

Both the statements are wrong

Q12.

The balances for ‘No-frills’ Savings Bank Account should not exceed ___________ in a year.

Rs. 5,00,000

Rs. 2,00,000

Rs. 1,00,000

Rs. 50,000

Q13.

The minimum period of fixed deposit is _________, as per the directive of the RBI.

15 days

6 months

7 days

1 month

Q14.

Advantage Deposit is a combination of :

Special term deposit & Fixed deposit

Fixed deposit & Mutual fund investment

Hybrid deposits & Call deposits

Recurring deposits & Term deposits

Q15.

The FCNR (B) deposit account can only be maintained in the form of terms deposit for maturities of min _________ to max _________.

1 year to 7 years

6 months to 5 years

1 year to 5 years

6 months to 7 years

Q16.

The minimum tenor of domestic/NRO term deposits below Rs. 15 lakh is:

10 days

7 days

30 days

15 days

Q17.

The minimum maturity period for NRE deposits is:

1 year

6 months

3 months

1 month

Q18.

HUF account is operated by:

Only by the Karta

By the Karta and all the family members of Karta

Only by the Karta or the authorized coparceners

By the Karta and adult male and female members of the family.

Q19.

Illiterate persons are permitted to open a current account.

True

False

Q20.

(I) For Private Ltd Company have 7 or more shareholders (II) For Public company have 2 to 51 shareholders.

Both the statements are correct

Only statement (I) is correct

Only statement (II) is correct

Both the statements are wrong

Q21.

(I) Deposit at Call accounts are maintained by fellow banks with another bank which are payable on demand only. (II) No Wealth Tax & Income Tax is applicable on FCNR (B) deposits.

Both the statements are correct

Only statement (I) is correct

Only statement (II) is correct

Both the statements are wrong

Q22.

Term deposits are comprise of:

Fixed deposits

Recurring deposits

Call deposits

Both (a) & (b)

All of the above

Q23.