An ARC can make application against RBI within 30 days of Cancellation of

Certificate to
A. RBI Governor
B. Central Government
C. Prime Minister
D. SEBI
ANSWER: B

In case of Joint Financing, how much of the secured creditors shall come together
to decide the method of Enforcement?
A. 90%
B. 60%
C. 100%
D. 15%
ANSWER: B

How much % of debt is to be deposited with DRAT for making an appeal

A. 25%
B. 6%
C. 50%
D. 100%
ANSWER: C

Which of the following is not the condition under SARFAESI for Securitisation
A. Debt/ Financial Assistance
B. Default
C. Delay in payment
D. NPA
ANSWER: C

Which of the following is not the Other Function of an ARC?

A. Securitisation
B. Agent
C. Receiver
D. Manager
ANSWER: A

A bank has decided to sell a loan given to a farmer of Rs. 20 lacs secured against
his farm to the ARC. Choose the correct option from below in relation to SARFAESI
ACT about the action taken by bank
A. The action is justified only if the Farmer has defaulted the Loan
B. The Action is justified only if the a 60 days notice post default has been sent
to the farmer
C. Farm is not acceptable as security
D. This case can-not be covered under SARFAESI
ANSWER: D

A bank has taken the Possession of a property under SARFAESI and has decided to
sell under auction. The auction cost will be 1.5% of realisation and the Newspaper
publication charges are 15000. If the Loan given is 1 cr and 30 lacs and property
is sold for 1 cr 10 lacs. how much the Bank will get
A. 1.118 cr.
B. 1. 082 cr.
C. 1.079 cr.
D. 1.10 cr.
ANSWER: B

How much minimum net Owned funds are required to apply for registration as ARC
A. 100 CR
B. 10 CR
C. No such condition
D. 60 Cr.
ANSWER: A

What is the time limit in which DRT has to Dispose off the application
A. 60 days
B. No such limit
C. 60 days, which can be extended to 4 months
D. 4 months
ANSWER: C

If the Bank is not able to recover its entire dues whom shall they apply after that
A. Borrower and his private assets
B. DRT
C. DRAT
D. RBI
ANSWER: B

Which of the following means an Obligor

A. Creditor
B. Qualified Buyer
C. Originator
D. Borrower
ANSWER: D

Which of the following is not a criteria for cancellation of Certificate of

Registration for ARC
A. Ceases to carry out a business
B. Ceases to get funds from a QB
C. losses in the previous year
D. Does not comply with RBI Norms
ANSWER: C

For the purposes of registration of transaction of securitisation and

reconstruction of financial assets and creation of security interest under SARFAESI
Act Government can create which of the following Authority
A. Debt Recovery Tribunal
B. Debt Recovery Appellate Tribunal
C. Central Registry
D. No such Specific Agency
ANSWER: C

A bank has taken the Possession of a property under SARFAESI and has decided to
sell under auction. The auction cost will be 1.5% of realisation and the Newspaper
publication charges are 15000. If the Loan given is 1 cr and 30 lacs and The
borrower wishes to repay the amount just before start of an auction. What will be
the next action
A. Bank will continue the auction as Advertisement is already given
B. Bank will stop the auction
C. Bank will give application to RBI
D. None of the above
ANSWER: B

Which of the following is not the part of three tier structure of CDR system in the
country?
A. CDR Standing Forum and its Core Group
B. CDR Empowered Group
C. CDR Cell
D. Joint Lending Forum
ANSWER: D

Who from the following can refer for the CDR system?
A. Any or more of the creditor who have minimum 20% share in either working capital
or term finance
B. The employees of the organisation
C. The Government
D. None of the above
ANSWER: A

�Actuary� is related to which of the following professions?

A. Accountancy
B. Banking
C. Insurance
D. Crypto
ANSWER: C

Who from the following is not eligible to add his/her name in the register of
�Actuaries�?
A. any person who immediately before the appointed day was an associate or a fellow
(including an honorary fellow) of the Actuarial Society;
B. any person who has passed the examination conducted by the Actuarial Society
and has completed training either as specified by the said Society or as specified
by the Council, except any such person who is not a permanent resident of India;
C. any person who has passed such examination and completed such training, as may
be specified for membership of the Institute;
D. All of the above
ANSWER: D

Who from the following is disqualified to have his name entered in, or borne on,
the register if he�
A. any person who immediately before the appointed day was an associate or a fellow
(including an honorary fellow) of the Actuarial Society;
B. any person who has passed the examination conducted by the Actuarial Society and
has completed training either as specified by the said Society or as specified by
the Council, except any such person who is not a permanent resident of India;
C. being a discharged insolvent, has not obtained from the court a certificate
stating that his insolvency was caused by misfortune and without any misconduct on
his part; or
D. All of the above
ANSWER: C
Taxation of Foreign Income is governed and regulated by which act in India?
A. Income Tax Act
B. Foreign Exchange Management Act
C. Reserve Bank of India Act
D. None of the Above
ANSWER: A

Income accruing in London and received there is taxable in India in the case of
A. resident and ordinarily resident only
B. both resident and ordinarily resident and resident but not ordinarily resident
C. both resident and non-resident
D. non-resident
ANSWER: A

A foreign currency account with a bank outside India, so opened, held or maintained
shall be closed,
A. if the overseas branch./office is not set up within six months of opening the
account
B. within one month of closure of the overseas branch/office
C. where no representative is posted for six months
D. any of the above
ANSWER: D

�Setting up offices and branches abroad� is governed and regulated by which act in
India?
A. Income Tax Act
B. Foreign Exchange Management Act
C. Reserve Bank of India Act
D. None of the Above
ANSWER: A

What is the time limit in which DRT has to Dispose off the application
A. 60 days
B. No such limit
C. 60 days which can be extended to 4 months
D. 4 months
ANSWER: C

Who from the following is not the Operational Creditor of the Organisation
A. Government
B. Directors of the organisation
C. Employees of the Organisation
D. Workers of the Organisation
ANSWER: B

In how much time period the Fast track insolvency process shall be completed?
A. 1 year
B. 180 days
C. 90 Days
D. No time Limit
ANSWER: C

Who, from the following has to give Demand Notice before application of Insolvency?
A. Financial Creditor
B. Operational Creditor
C. Corporate Debtor
D. All of the Above
ANSWER: B

For passing any resolution in CoC how many votes by value shall be in favor of
Proposal
A. 90%
B. 75%
C. 66%
D. 100%
ANSWER: C

How much minimum default value for applicability of IB Act?

A. 1 Lakh
B. 1 CR
C. No such condition
D. 10 Lakh
ANSWER: B

Preferential transaction in case of related party, can be revoked only for the time
period
A. 1 year prior to the date of Commencement of Insolvency
B. 2 years prior to the date of Commencement of Insolvency
C. 3 years prior to the date of Commencement of Insolvency
D. No such time limit
ANSWER: B

Which is the appellate authority for Corporate as per IB Act

A. Debt Recovery Tribunal
B. Debt Recovery Appellate Tribunal
C. NCLT
D. NCLAT
ANSWER: C

Which of the following is not a part of process of Insolvency resolution Process as

per IB Act?
A. Appointing resolution professional
B. declare moratorium
C. Giving a Public Notice
D. Creating Property Estate
ANSWER: D

To Which of the following IB Act is Applicable

A. NBFC
B. Bank
C. Insurance Company
D. AMC
ANSWER: A

What is time limit given by IB Act for completing the Insolvency resolution
Process?
A. 180 Days but at maximum to be completed in 330 days
B. 90 days which can be extended further by 90 days
C. 1 year
D. no such time limit
ANSWER: A

To whom from the following Fast track Insolvency process is not applicable?
A. Small Scale Company
B. Start up notified by Ministry of Commerce
C. Unlisted company with the net worth of less than 1 cr
D. A Company with debt less than 1 cr
ANSWER: D

Who, from the following can not be the applicant for insolvency?
A. Managing Director of a Company
B. Financial Creditor
C. Employee of the Company
D. Operating Creditor
ANSWER: C

Which of the following is not a part of process of CIRP as per IB Act?

A. Information Utility
B. Resolution Professional
C. Liquidator
D. DRAT
ANSWER: D

To which of the Following IB Act is not applicable as of now?

A. Corporate
B. LLP
C. Individual Guarantor to Corporate
D. Partnership Firm
ANSWER: D

Which comes first in the order of priority in case of distribution of proceeds from
the sale of liquidation assets?
A. Secured Creditor
B. Workmen
C. Liquidation Expenses
D. Government Dues
ANSWER: C

How many minimum number of Operating creditors is must for forming CoC if there are
no Financial creditors to the Company?
A. 10
B. 18
C. 66% of the Operational Creditors
D. all Operational Creditors
ANSWER: B

In how much time period NCLT has to decide about Admission or Rejection of the
Insolvency application
A. Within 60 Days
B. Within 14 Days
C. Within 90 Days
D. Within 30 Days
ANSWER: B

Current Account Transaction include

A. Payment due in connection with foreign trade, other current business, services
and short term banking and credit facilities in the ordinary course of business
B. Payments due as interest on loans and as net income from investments (dividends
after deduction of tax)
C. Remittances for living expenses of parents, spouse and children residing abroad
D. All of the above
ANSWER: D

A foreign Currency account maintained by a bank abroad is its

A. NOSTR Account
B. VOSTRO Account
C. LORO Account
D. Foreign Bank Account
ANSWER: A

Non-resident bank accounts are maintained in

A. the permitted currencies
B. the currency of the country of the bank maintaining the account
C. the currencies in which FCNR accounts are permitted to be maintained
D. India Rupee
ANSWER: D

An authorised person under FEMA does not include

A. an authorised dealer
B. an authorised money changer
C. an off-shore banking unit
D. an exchange broker
ANSWER: D

Country A imports gold worth USD 100 million for commercial purposes. The
transaction will affect
A. current account only
B. capital account only
C. official reserves account only
D. both current account and capital account
ANSWER: D

Who is a �Person Resident outside India� as per the FEMA Act, 1999?
A. Who has taken birth out of India
B. Who is not resident of India
C. Who is gone out of India for 181 days
D. None of the above
ANSWER: B
Foreign currency permitted to be retained up to amount of $2000 can be retained by
way of:
A. Travellers Cheque
B. Foreign Currency Notes
C. Bank Notes
D. All of the above
ANSWER: D

Mr. T is an Indian citizen who has been residing in India since his birth. He left
India for employment in Russia on 25th February 2016. The contract of employment is
for 2 years. He comes back on 24th February 2018. What is his residential status
for the financial year 2017-18 as per FEMA?
A. Person Resident outside India
B. Person resident in India
C. Foreign Resident
D. None of the above
ANSWER: A

------ is not relevant for determining the residential status of a person in FEMA
A. Residence
B. Place of Employment
C. Period of stay
D. Citizenship
ANSWER: D