Part I: Grammar and Use (14 Marks)

A. Incomplete Sentences: Complete the sentences with choices provided. You should
choose the one word or phrases that best complete each of the sentences.

1. Nowadays, many of the huge factories and industries ___________to function if

there was no adequate electric power.
a. were unable  b. would be unable  c. will be unable  d. are unable

2. The variety of goods and services offered __________ limited only by the types of
People and organizations that join
 A. is  b. are  c. has  d. have

3. Dawit’s hobbies include jogging, swimming, and

a .to climb mountains b. climb mountains  c. to climb d. climbing

4. My sister likes apples, _______ she does not like oranges.

a. so b. for c. but  d. or

5. When I graduate from this college next June, I ______a student here for four years.
a. will have been b. have been c. has been d. will have

6. I prefer drinking coffee_______ tea.

a. than b. to c. with

7. The man is_________ walk up the stairs of the tall building.

a. so old to  b. too old to  c. older to  d. old so that he

8. The meeting will begin after the boss _________

a. will arrive b. arrives c. arrived d. have arrived

9. The sentence ‘Go to bed immediately or you can’t get up early tomorrow’ may
mean

a. If you didn’t go to bed immediately, you couldn’t get up early tomorrow

b. If you don’t go to bed immediately, you can’t get up early tomorrow
c. If you went to bed immediately, you could get up early tomorrow
d. If you go to bed immediately, you can’t get up early tomorrow

Part III: Vocabulary (15marks)

A. Choose the right pair to complete the sentences (1 mark each

10. He warned the workers against supporting these anti-social policies, which he
Declared would rather than _______________________ the plight of the
common people

a) Rescue; destroy B) Impair; improving c) Aggravate; alleviate d) Protract; inhibit

11. Like the _______ part of the iceberg, much of what is really interesting in the
Capital is not __________
a) greater; dangerous c) upper; visible
b) submerged; visible d) lower; penetrate

12. Athletes have so perfected their techniques in track; and field events that the
_______ Becomes ___________________ before record books can be Published.
a) Meet; official c) fantastic; common place
b) Time; authentic d) result; obsolete
B. Choose the most appropriate meaning for each word in bold type. (1 mark each)

13. Condone: a) surround b) pardon c) bring together d) rule together

14. Incongruous: a) unofficial : ,b) incompatible c) poorly timed d) uneven

15. Cumbersome: a) heavy b) sorrowful c) unwieldy d) laborious

16: Scrutinize: a) erase completely   b) turn aside  c) examine closely  d) read about

17. FORGERY : SIGNATURE: A) Carbon copy: original B) Faked: genuine C) False

: truth D) Proxy : delegate

18. I : MY A) Him : his B) You : you’re C) They : there D)Who : whose

19. ALTHOUGH : NEVERTHELESS: a) Since :therefore b) In spite of :

consequently c) When : simultaneously d) Because : therefore

Part IV. Reading Passage: (6 marks)

Read the paragraphs below and answer questions that follow them (1 mark each)
Paragraph ONE

Spend ten romantic days enjoying the lush countryside of southern England. The
counties of Devon, Dorset, Hampshire, and Essex invite you to enjoy their castles and
coastline, their charming bed and breakfast inns, their museums and their cathedrals.
Spend lazy days watching the clouds drift by or spend active days hiking the glorious
hills. These fields were home to Thomas Hardy, and the ports launched ships that
shaped world history. Bed and breakfasts abound, ranging from quiet farmhouses to
lofty castles. Our tour begins August 15. Call or fax us today for more information 1-
800-222-XXXX.
Enrollment is limited, so please call soon.

20. Which of the following counties is not included in the tour?

A. Devon B. Cornwall  C. Essex  D. Hampshire

21. How many people can go on this tour?

A. 10 B. an unlimited number C. 2-8 D. a limited nurr
22. What can we infer about this area of southern England?
A. The region has lots of vegetation B. The coast often has harsh weather  C. The sun
is hot and the air is dry.  D. The land is flat

Paragraph TWO

Anna Szewcyzk, perhaps the most popular broadcaster in the news media today, woi
the  1998 Broadcasting Award. She got her start in journalism as an editor at the
Holtsville County Times in Missouri. When the newspaper went out of business, a
Colleague persuaded her to enter the field of broadcasting. She moved to Oregon to
begin a master’s degree in broadcast journalism at Atlas University. Following
Graduation, she was able to begin her career as a local newscaster with WPSU-TV in 
Seattle, Washington, and rapidly advanced to national television. Noted for her quick*
and  trenchant commentary, her name has since become synonymous with Good Day
America Accepting the award at the National Convention of Broadcast Journalism in
Chicago, Ms.  Szewcyzk remarked, “I am so honored by this award that I’m at a total
loss for words!” Who  would ever have believed it?

23. What is the purpose of this announcement?

A. to invite people to the National Convention of Broadcast Journalism
B. to encourage college students to study broadcasting ,
C. to recognize Ms. Szewcyzk’s accomplishments

24. The expression “to become synonymous with” means

A. to be the same as.. B. to be the opposite of.  C. to be in sympathy with.  D. to be
discharged from

25. What was Ms. Szewczyk’s first job in journalism?

A. She was a T.V. announcer in Washington
B. She was a newscaster in Oregon.
C. She was an editor for a newspaper in Missouri
D. She was a talk show host in Chicago.

Part IV. Rearrange sentences into a paragraph. Then write the correct order in the
spaces provide on the answer sheet. Your first sentence is No. 4 (5 marks)

3 1. To truly control destruction from earthquakes, scientists must find a way to

predict them more consistently.

5 2. Each year earthquakes take 10,000 to 15,000 lives and cause billions of dollars in
damages around the world.

2 3. Recent efforts to predict earthquakes have met with only limited success.

1 4. Scientists face difficult yet important task in trying to predict earthquakes.

4 5. Many cities have been totally destroyed.

7 6. In 181 l and 1812 a series of earthquakes in Missouri changed the course of

Mississippi River, shaking the earth enough to stop clocks in Boston.
6 7. Chinese scientists predicted an earth quake in Hatching in 1975 and Soviet
Scientists predicted an earthquake in 1978

Ethiopian Banks Aptitude Exam Questions

EXAM . Quantitative Aptitude test (25 marks)

1. The sum of the ages of 5 children born at the intervals of 3 years each is 50 years.
The age of the youngest child is:
A. 6 years    B. 5 years    C. 4 years    D. None of the above
Solution
Let the ages of children be x, (x + 3), (x + 6), (x + 9) and (x + 12) years.
Then, x + (x + 3) + (x + 6) + (x + 9) + (x + 12) = 50
5x = 20
x = 4.

Age of the youngest child = x = 4 years.

2. The age of a man is twice the sum of the ages of his two children. After 20 years.
His age will he equal to the sum of the ages of his children at that time. Find the
present age of the man.

If at present: Man's age = x years and sum of the ages of two children = y years Then
x = 2y
In 20 years: Age of each child increases by 20 years ⇒ in 20 years. Ages of both the
children will increase by (20 + 20) years.
∴ x+20=y+20+20
Solution
Let the fathers age be x years the sum of ages of 2 children be (a+b) years to 1st
condition x=2(a+b)=2a+2b.....(1) to 2nd condition x+20=a+20+b+20.
x+20=a+b+40. x=a+b+20.....(2)
equating (1) & (2) a+b=20 sub this in(1) x=40 therefore the fathers age is 40 yrs.

3. Four years ago, a mother was four times as old as her daughter. Six years later, the
mother will be two and a half times as old as her daughter at that time. Find the
present ages of mother and her daughter.

Solution

let daughter's age = x. 4 yrs ago age=(x-4) mother's age = 4(x-4) =4x-16 present
age of mother= 4x-16+4 =4x-12 6 yrs later daughter's age=x+6 mother's age=4x-
12+6 = 4x-6 atq = mother's age= 5x/2 + 15. 4x-6 = 5x/2 +15. 8x-5x /2 =21. x=
21*2/3 x=14 mother's age = 44 yrs and daughter's age =14 yrs

4. Pooja and Ritu can do a piece of work in 171/7 days. If one day work of Pooja be
three fourth of one day work of Ritu; find in how many days each alone will do the
work.

Solution

Let Puja complete the work in x days. Work done by Puja in one day =1x Again, let
Ritu complete the entire work alone in y days. Work done by Puja in one day =1y.
We also know that both Ritu and Puja complete the entire work together in 17
1/7 days. =1207 days. Work done by Puja and Ritu in one day =11207=7120
i.e.,1x+1y=7120 ---(1). It is given that, one day work of Pooja be three fourth of one
day work of Ritu. ⇒y=34x ⇒1y=43x --(2) from (1), 1x+1y=7120 ⇒1x+43x=7120
⇒3+43x=7120 ⇒73x=7120 ⇒3x=120 ⇒x=1203 ⇒x=40 --(3) and, y=34x y=34×40
⇒y=30 ---(4) Pooja will complete the work in 40 days and Ritu will complete the
work in 30 days.

5. A person walked diagonally across a square plot. Approximately, what was the
percent saved by not walking along the edges?
A. 35%     B. 30 %    C. 20 %    D. None of the above

Solution

Consider a square plot as shown above. Length of each side =1=1 Then, length of
the diagonal = √ 12+12 = √ 2 . Distance travelled if walked along the edges =
BC+CD =1+1= 2. Distance travelled if walked diagonally
= BD =√ 2 = 1.41. Distance saved =2−1.41=0.59 Percent distance saved =
0.592×100/2 = 0.59×50 ≈ 30

4. The average of 20 numbers is zero. How many of them may be greater than zero,
at The most?
A. 18    B. 20   C. 0    D. None of the above Hint: Average is the sum of all the
values divided by total number of values for a given data.
Complete step by step answer:
As we know we can conclude that the average of any given data is the total
sum of given data by number of data. Here, 20 numbers are given and the
sum of that 20 numbers is 0 .
To calculate average , formula is given below
Average =sumofnumberstotalnumber=sumofnumberstotalnumber
For this question, let us denote this 20 numbers
by x1,x2.................x20x1,x2.................x20 .
Sum of this 20 numbers will be x1+x2+........................
+x20x1+x2+........................+x20
We know total number is 20
Putting the values in the formula of average.
Average = x1+x2+........................+x2020x1+x2+........................+x2020
 average is given as 0 , putting the value 0
0 = x1+x2+........................+x2020x1+x2+........................+x2020
Cross multiply the numbers , that is
20×0=x1+x2+...........+x2020×0=x1+x2+...........+x20
Solve the above,
0=x1+x2+...........+x200=x1+x2+...........+x20
This means sum = 0
If you transpose one of the numbers to left hand side you will get
x1+x2+...........+x19=−x20x1+x2+...........+x19=−x20
Now for the sum of 20 numbers to be equal to zero, there may be all 19
numbers of them greater than 0 and only one number which is negative of all
the 19 numbers sum.
Thus, there can be all 19 numbers of them greater than 0 and only one
number which is negative of all the 19 numbers sum.

4. An accurate clock shows 8 o’clock in the morning. Through how many degrees will
the hour hand rotate when the clock shows 2 o’clock in the afternoon?
A. 154° B. 180° C. 170° D. None of the above

Solution:

5. Ato kebede purchased a machine for Birr 80,000. After spending Birr 5000 on
repair and Birr’ 1000 on transport he sold it with 25% profit. What price did he sell
the machine?
A. Birr 107000   B. Birr 107500    C. Birr 108500    D. all of the above
6. A train runs at the speed of 72 km/hr and crosses a 250 m long platform in 26 seconds. What is the
length of the train?
A. 270 m B. 210 m C. 340 m D. None of the above
Solution
Speed of the train =72km/hr=72×185m/sec=20m/sec
Let the length of the goods train be x m. Then 20250+x
=26⇒250+x=520⇒x=270m

7. A fair coin is tossed. What is the chance of getting head?

A. 1    B. 0.5   C. 0.8    D. None of the above

Solution: 

If a fair coin is tossed then the sample space will be {H, T}

Therefore total number of event = 2 
Probability of having head  = 1
Probability of an event = (number of favorable event) / (total number of
event)
P(B) = (occurrence of Event B) / (total number of event).
Probability of getting one head = 1/2

Probability of an event = Favorable outcomes / Total number of

outcomes

P(A) = Favorable outcomes / Total number of outcomes Some

Terms of Probability Theory

 Experiment: An operation or trial done to produce an outcome is

called an experiment.
 Sample Space: An experiment together constitutes a sample
space for all the possible outcomes. For example, the sample
space of tossing a coin is head and tail.
 Favorable Outcome: An event that has produced the required
result is called a favorable outcome. For example, If two dice are
rolled at the same time then the possible or favorable outcomes of
getting the sum of numbers on the two dice as 4 are (1, 3), (2, 2),
and (3, 1).
 Trial: A trial means doing a random experiment.
 Random Experiment: A random experiment is an experiment that
has a well-defined set of outcomes. For example, when we toss a
 coin, we would get ahead or tail but the outcome is not confirmed
that which one will appear.
 Event: An event is the outcome of a random experiment.
 Equally Likely Events: Equally likely events are rare events that
have the same chances or probability of occurring. Here The
outcome of one event is independent of the other. For instance,
when a coin is tossed, there are equal chances of getting ahead or
a tail.
 Exhaustive Events: An exhaustive event is when the set of all
outcomes of an experiment is equal to the sample space.
 Mutually Exclusive Events: Events that cannot happen
simultaneously are called mutually exclusive events. For example,
the climate can be either cold or hot. The same weather again and
again can not be experienced.
Complementary Events: The Possibility of only two outcomes
which is an event will occur or not, like a person will eat or not eat
the food, buying a bike or not buying a bike, etc. are examples of
complementary events.
A coin is tossed n times, what is the chance that the head will present itself
an odd number of times?
Solution
n times then possible number of outcomes =2n
Number of ways in which head comes odd number of times =  nC1+nC3+nC5
.......
Sum of odd coefficient in the expansion of (1+x)n
=2n /2 = 2n−1
/2

∴ desired probability =2n−1 /2n =1/2

8. For “the following sequence, one does not belong to others. Which one is it? 3, 9, 12, 29
A. 12     B. 9    C. 29     D. 3

9. W/o Alemachesh starts a business with Birr 45000. Ato Zeberga joins in the
business after 3 months with Birr 30000. What will be the ratio in which they should
share the profit at the end of the year?
A. 1:2    B. 2:1    C. 1:3    D. None of the above

10. Insert the missing number. 12, 25, 51,103, 207, (…)
A. 789    B. 415    C. 522    D. 812

11. Three candidates contested an election and received 1100, 7000 and 2000 votes.
What percentage of the total votes did the winning candidate get?
A. 57%    B. 50%    C. 55%    D. None of the above
12. 6 men and 8 women can complete a work in 10 days. 26 men and 48 women can
finish the same work in 2 days. 15 men and 20 women can do the same work in:
A 4 days    B. 6 days    C. 2 days   D. None of the above

13. What is 10% of 1?

A. 1   B. 0.1   C. 0.01    D. None of the above

14. Kedir wanted to buy his Mom some roses for her birthday. He went to the flower
shop and choose some beautiful pink roses for her. The roses were Birr 28.99 a dozen.
He gave the clerk Birr 40.00.How much change did he receive?
A. Birr 20.00   B. Birr 11.01   C. Birr 12.20   D. None of the above

15. What was the day of the week on 8th March, 2014?
A. Tuesday    B. Wednesday    C. Saturday   D. None of the above

16. A man buys a book for Birr 1000 and sells it at a loss of 10%. What is the selling
price of the book?
A. Birr 1240 B. Birr 1190 C. Birr 900 D. None of the above

17. Ato-Wereket purchased a machine for Birr 80,000. After spending Birr 5000 on
repair and Birr 1000 on transport he sold it with 25% profit. What price did he sell the
machine?
A. Birr 107000   B. Birr 107500   C. Birr 108500   D. None of the above

18. At 3:40, the hour hand and the minute hand of a clock form an angle of
A. 135°   B. 130°   C. 120°   D. None of the above

19. Insert the missing number. 34, 7, 37, 14, 40, 28, 43, (…)
A. 31   B. 42   C. 46    D. None of the above

20. If 2X=8, then the value of x is:

A. 2 B. 3 C. 4 D. None of the above

21. (100) ° is equal to:

A. 100   B. 0   C. 1000   D. None of the above

22. A train is running at a speed of 40 km/hr and it crosses a post in 18 seconds. What
is the length (in meters) of the train?
A. 190   B. 160   C. 200   D. None of the above

23. A grocer has a sale of Birr 6435, Birr 6927, Birr 6855, Birr 7230 and Birr 6562 for
5 consecutive months. How much sale must he have in the sixth month so that he gets
an average sale of Birr 6500?
A. 4800   B. 4991   C. 5004   D. None of the above

24. What is the probability of getting number 4 when a die is rolled?

A. 0.5   B. 1    C. 0.1    D. None of the above

25. If a quarter kg of potato costs 60 cents, how many cents does 200 gm cost?
A. 65 cents   B. 70 cents    C. 52 cents     D. None of the above
 What was the percentage increase in snowfall in Whistler from November to
December?

1. 30%
2. 40%
3. 50%
4. 60%

Sample logical reasoning test question

Which of the boxes comes next in the sequence?

Sample verbal reasoning test question

 Statement: Business owners who have commercial premises often tend to have a
residential property as part of their portfolio.

1. True
2. False
3. Cannot tell

Sample mechanical reasoning test question

 How many revolutions per second is C turning?

1. 5
2. 10
3. 20
4. 40

Sample situational judgement test question

Passage : You recently submitted a paper to an upcoming professional conference that

will be attended by many people from your industry and from universities globally.
You have attended the conference in the past and it is very well attended and highly
regarded in the industry. The paper is a summary of some very complex research you
have been undertaking with some key findings that you believe people will find very
interesting and useful. Upon learning that it has been accepted, your manager asks
you to think about how you will present your findings in order to make the biggest
 impact. You only have a short time slot for your presentation. How would you
respond?

Read the passage and select two answers, for how you would most likely and least
likely respond.

1. Say that you intend to use a lot of graphics and images to try and draw out a handful
of key messages.
2. Say that you intend to create a presentation that mirrors the wider research paper that
you wrote with similar section headers.
3. Ask your manager what they think would be the best approach to use based on their
experience.
4. Say that you will spend a small amount of time introducing your approach to the
research but will mainly discuss your key findings and conclusions.

Answers & Solutions

Sample numerical reasoning test question

Answer: 3) 50%

Solution:

1. Identify how much snow fell in Whistler in November and December (Nov = 20cm &
Dec = 30cm)
2. Calculate the difference between the two months: 30 - 20 = 10
3. Divide the difference by November (original figure) and multiply by 100: 10/20 x 100
= 50%

Sample logical reasoning test question

Answer: C

Solution: Squares move from the top left to the middle, then to the bottom right
corner with each turn. Unshaded squares appear in every third turn. Triangle appears
with every alternate turn.

Therefore, the black square and unshaded square should both be in the middle, with
no triangle.

Sample verbal reasoning test question

Answer: Cannot tell

Solution: From the passage, we know that people in this survey are less likely to have
‘mixed-use assets’ (an add-on to commercial investment). Our immediate reaction
may therefore be to select false, but the passage is only telling us that people in the
survey are less likely to have residential holdings that form part of mixed-use assets.
We don’t know if business owners tend to have residential property as part of their
portfolio, so the answer is ‘cannot tell’. It is easy to get tripped up on questions like
these, so ensure you read the passage carefully.

Sample mechanical reasoning test question

Answer: 10

Solution: If cog A with 5 teeth can do a full revolution a second, then cog C with 20
teeth will take 4 times as long to do a full revolution. So to find the answer you need
to divide 40 by 4.

Sample situational judgement test question

Answer: The most effective response is number 4, and the least effective is number 3.

Solution : The third option is the least effective, as you’re not showing any original
thought by simply asking for their advice. Option 4 is best, since the key findings are
what you believe will be of greatest interest to the audience, so it makes sense to
focus on them.

Question: 1

Two trains 141 metres and 119 metres in length respectively are running in opposite
directions, one at the rate of 30 km and the other at the rate of 42 km an hour. In what
time will they be completely clear of each other from the moment they meet?

(A) 10 seconds

(B) 11 seconds

(C) 12 seconds

(D) 13 seconds

Ans: D

As the two trains are moving in opposite directions,

Their relative speed = 42 + 30 = 72 km/h = 72×5/18= 20 m/s.

∴ required time = Total length = (141+119)/20 =13 seconds
Relative speed
Question: 2
A train 75 metres long overtook a person, who was walking at the rate of 6 km/hr and
passed him in 7 ½ seconds. Subsequently, it overtook a second person, and passed
him 6 3/4 seconds. At what rate was the second person travelling?
(A) 1 km/h

(B) 2 km/h

(C) 3 km/h

(D) 4 km/h

Ans: B

Relative speed of train and first person = 75/15/2  = 10 m/s = 10×18/5 = 36 km/h
∴ Speed of train = 36 + 6 = 42 km/h

Relative speed of train and second person = 75/27/4 =300/27×18/5 = 40 km/h

∴ Speed of second person = 42 - 40 = 2 km/h.

Question: 3

How many seconds will a 500 metre long train take to cross a man walking with a
speed of 3 km/hr in the direction of the moving train if the speed of the train is 63
km/hr?

(A) 20

(B) 25

(C) 30

(D) 35

Ans: C
Let the time taken by the train to cross a walking man be t seconds.

Relative speed of train w.r.t. man = 63 - 3 = 60 km/hr. = 60×5/18m/s =50/3m/s

Length of train = 500 m

∴ t = 500*50/3 = 500*3/50 =30 sec

Question: 4

How long does a train 180 metres long running at the rate of 36 km/h take to cross a
bridge 100 metres in length?

(A) 20 seconds

(B) 28 seconds

(C) 30 seconds

(D) 32 seconds

Ans: B

Speed of train = 36 km/h = 36×

5
18
 = 10 m/s

Required time = 
180+100
10
 = 28 seconds.
Question: 5

A train travelling at 36 km/h took 15 seconds in passing a standing man. Find the
length of the train.
(A) 100 m

(B) 120 m

(C) 150 m

(D) 200 m

Ans: C

Speed of train = 36 km/h = 36×

5
18
 = 10 m/s.

Time taken to pass the man = 15 seconds.

∴ Length of train = 10 × 15 = 150 m.

3) What is commercial bank?

Commercial bank is owned by the group of individuals or by a member of Federal

Reserve System. The commercial bank offer services to individuals, they are
primarily concerned with receiving deposits and lending to business. Such bank earns
money by imposing interest on the loan borrowed by the borrower. The money that is
deposited by the customer will be used by the bank to give business loan, auto loan,
mortgages and home repair loans.

4) What are the types of Commercial Banks?

a) Retail or consumer banking

It is a small to mid-sized branch that directly deals with consumer’s transaction rather
than corporate or other banks

b) Corporate or business banking

Corporate banking deals with cash management, underwriting, financing and issuing
of stocks and bonds

c) Securities and Investment banking

Investment banking manages portfolios of financial assets, commodity and currency,
fixed income, corporate finance, corporate advisory services for mergers and
acquisitions, debt and equity writing etc.

d) Non-traditional options
There are many non-bank entities that offer financial services like that of the bank.
The entities include credit card companies, credit card report agencies and credit card
issuers
5) What is consumer bank?

Consumer bank is a new addition in the banking sector, such bank exist only in
countries like U.S.A and Germany. This bank provides loans to their customer to buy
T.V, Car, furniture etc. and give the option of easy payment through instalment.

6) What are the types of accounts in banks?

a) Checking Account: You can access the account as the saving account but, unlike
saving account, you cannot earn interest on this account. The benefit of this account is
that there is no limit for withdrawal.
b) Saving Account: You can save your money in such account and also earn interest
on it. The number of withdrawal is limited and need to maintain the minimum amount
of balance in the account to remain active.
c) Money Market Account: This account gives benefits of both saving and checking
accounts. You can withdraw the amount and yet you can earn higher interest on it.
This account can be opened with a minimum balance.
d) CD (Certificate of Deposits) Account: In such account you have to deposit your
money for the fixed period of time (5-7 years), and you will earn the interest on it.
The rate of interest is decided by the bank, and you cannot withdraw the funds until
the fixed period expires.
7) What are the different ways you can operate your accounts?

You can operate your bank accounts in different ways like

a) Internet banking
b) Telephone or Mobile banking
c) Branch or Over the counter service
d) ATM ( Automated Teller Machine)
What are the things that you have to keep in concern before opening the bank
accounts?

Before opening a bank account, if it is a saving account, you have to check the interest
rate on the deposit and whether the interest rate remains consistent for the period. If
you have the checking account, then look for how many cheques are free to use. Some
banks may charge you for using paper cheques or ordering new cheque books. Also,
check for different debit card option that is provided on opening an account and
online banking features.

9) What is ‘Crossed Cheque’ ?

A crossed cheque indicates the amount should be deposited into the payees account
and cannot be cashed by the bank over the counter. Here in the image, number#2, you
can see two cross-lines on the left side corner of the cheque that indicates crossed
cheque.

10) What is overdraft protection?

Overdraft protection is a service that is provided by a bank to their customer. For
instance, if you are holding two accounts, saving and credit account, in the same bank.
Now if one of your accounts does not have enough cash to process the cheques, or to
cover the purchases. The bank will transfer money from one account to another
account, which does not have cash so to prevent check return or to clear your
shopping or electricity bills.

11) Do bank charge for ‘overdraft protection’ service?

Yes, bank will charge on ‘overdraft protection’ services but the charges will be
applicable only when you start using the service.

12) What is (APR) Annual Percentage Rate?

APR stands for Annual Percentage Rate, and it is a charge or interest that the bank
imposes on their customers for using their services like loans, credit cards, mortgage
loan etc. The interest rate or fees imposed is calculated annually.

13) What is ‘prime rate’?

Basically, ‘prime rate’ is the rate of interest that is decided by nations (U.S.A) largest
banks for their preferred customers, having a good credit score. Much ‘variable’
interest depends on the ‘prime rates’. For example, the ‘APR’ (Annual Percentage
Rate) on a credit card is 10% plus prime rate, and if the prime rate is 3%, the current
‘APR’ on that credit card would be 13%.

14) What is ‘Fixed’ APR and ‘Variable’ APR?

‘APR’ (Annual Percentage Rate) can be ‘Fixed’ or ‘Variable’ type. In ‘Fixed APR’,
the interest rate remains same throughout the term of the loan or mortgage, while in
‘Variable APR’ the interest rate will change without notice, based on the other factors
like ‘prime rate’.

15) What are the different types of banking software applications are available in the
Industry?

There are many types of banking software applications and few are listed below

a) Internet banking system: Internet banking allows the customers and financial
institution to conduct final transaction using banks or financial institute website.
b) ATM banking (Automated Teller Machine): It is an electronic banking outlet,
which allows customers to complete basic transaction.
c) Core banking system: Core banking is a service provided by a networked bank
branches. With this, customer can withdraw money from any branch.
d) Loan management system: The database collects all the information and keeps the
track about the customers who borrows the money.
e) Credit management system: Credit management system is a system for handling
credit accounts, assessing risks and determining how much credit to offer to the
customer.
f) Investment management system: It is a process of managing money, including
investments, banking, budgeting and taxes.
g) Stock market management system: The stock market management is a system that
manages financial portfolio like securities and bonds.
h) Financial management system: Financial management system is used to govern and
keep a record of its income, expense and assets and to keep the accountability of its
profit.
16) What is the ‘cost of debt’?

When any company borrows funds, from a financial institution (bank) or other
resources the interest paid on that amount is known as ‘cost of debt’.

17) What is ‘balloon payment’?

The ‘balloon payment’ is the final lump sum payment that is due. When the entire
loan payment is not amortized over the life of the loan, the remaining balance is due
as the final repayment to the lender. Balloon payment can occur within an adjustable
rate or fixed rate mortgage.

18) What is ‘Amortization’?

The repayment of the loan by installment to cover principal amount with interest is
known as ‘Amortization’.

19) What is negative Amortization?

When repayment of the loan is less than the loans accumulated interest, then negative
Amortization occurs. It will increase the loan amount instead of decreasing it. It is
also known as ‘deferred interest’.

20) What is the difference between ‘Cheque’ and ‘Demand draft’?

Both are used for the transfer of the amount between two accounts of same banks or
different bank. ‘Cheque’ is issued by an individual who holds the account in a bank,
while ‘Demand draft’ is issued by the bank on request, and will charge you for the
service. Also, demand draft cannot be cancelled, while cheques can be cancelled once
issued.

21) What is debt-to-Income ratio?

The debt-to-income ratio is calculated by dividing a loan applicant’s total debt

payment by his gross income.

22) What is adjustment credit?

Adjustment credit is a short-term loan made by the Federal Reserve Bank (U.S) to the
commercial bank to maintain reserve requirements and support short term lending,
when they are short of cash.
23) What do you mean by ‘foreign draft’?

Foreign draft is an alternative to foreign currency; it is generally used to send money

to a foreign country. It can be purchased from the commercial banks, and they will
charge according to their banks rules and norms. People opt for ‘foreign draft’ for
sending money as this method of sending money is cheaper and safer. It also enables
receiver to access the funds quicker than a cheque or cash transfer.

24) What is ‘Loan grading’?

The classification of loan based on various risks and parameters like repayment risk,
borrower’s credit history etc. is known as ‘loan grading’. This system places loan on
one to six categories, based on the stability and risk associated with the loan.

25) What is ‘Credit-Netting’?

A system to reduce the number of credit checks on financial transaction is known as

credit-netting. Such agreement occurs normally between large banks and other
financial institutions. It places all the future and current transaction into one
agreement, removing the need for credit cheques on each transaction.

26) What is ‘Credit Check’?

A credit check or a credit report is done by the bank on a basis of an individual’s

financial credit. It is done in order to make sure that an individual is capable enough
of meeting the financial obligation for its business or any other monetary transaction.
The credit check is done keeping few aspects in concern like your liabilities, assets,
income etc.

27) What is inter-bank deposit?

Any deposit that is held by one bank for another bank is known as inter-bank deposit.
The bank for which the deposit is being held is referred as the correspondent bank.

28) What is ILOC (Irrevocable Letter Of Credit)?

It is a letter of credit or a contractual agreement between financial institute (Bank) and

the party to which the letter is handed. The ILOC letter cannot be cancelled under any
circumstance and, guarantees the payment to the party. It requires the bank to pay
against the drafts meeting all the terms of ILOC. It is valid upto the stated period of
time. For example, if a small business wanted to contract with an overseas supplier for
a specified item they would come to an agreement on the terms of the sale like quality
standards and pricing, and ask their respective banks to open a letter of credit for the
transaction. The buyer’s bank would forward the letter of credit to the seller’s bank,
where the payment terms would be finalized and the shipment would be made.

29) What is the difference between bank guarantee and letter of credit?
There is not much difference between bank guarantee and letter of credit as they both
take the liability of payment. A bank guarantee contains more risk for a bank than a
letter of credit as it is protecting both parties the purchaser and seller.

30) What is cashier’s cheque?

A cashier cheque issued by the bank on behalf of the customer and takes the
guarantee for the payment. The payment is done from the bank’s own funds and
signed by the cashier. The cashier cheque is issued when rapid settlement is
necessary.

31) What do you mean by co-maker?

A person who signs a note to guarantee the payment of the loan on behalf of the main
loan applicant’s is known as co-maker or co-signer.

32) What is home equity loan?

Home equity loan, also known as the second mortgage, enables you to borrow money
against the value of equity in your home. For example, if the value of the home is $1,
50,000 and you have paid $50,000. The balance owed on your mortgage is $1, 00,000.
The amount $50,000 is an equity, which is the difference of the actual value of the
home and what you owe to the bank. Based on equity the lender will give you a loan.
Usually, the applicant will get 85% of the loan on its equity, considering your income
and credit score. In this case, you will get 85% of $50,000, which is $42,500.

33) What is Line of credit?

Line of credit is an agreement or arrangement between the bank and a borrower, to

provide a certain amount of loans on borrower’s demand. The borrower can withdraw
the amount at any moment of time and pay the interest only on the amount withdrawn.
For example, if you have $5000 line of credit, you can withdraw the full amount or
any amount less than $5000 (say $2000) and only pay the interest for the amount
withdrawn (in this case $2000).

34) How bank earns profit?

The bank earns profit in various ways

a) Banking value chain

b) Accepting deposit
c) Providing funds to borrowers on interest
d) Interest spread
e) Additional charges on services like checking account maintenance, online bill
payment, ATM transaction
35) What are payroll cards?

Payroll cards are types of smart cards issued by banks to facilitate salary payments
between employer and employees. Through payroll card, employer can load salary
payments onto an employee’s smart card, and employee can withdraw the salary even
though he/she doesn’t have an account in the bank.

36) What is the card based payments?

There are two types of card payments

a) Credit Card
b) Debit Card
37) What ACH stands for?

ACH stands for Automated Clearing House, which is an electronic transfer of funds
between banks or financial institutions.

38) What is ‘Availability Float’?

Availability Float is a time difference between deposits made, and the funds are
actually available in the account. It is time to process a physical cheque into your
account.

For example, you have $20,000 already in your account and a cheque of another
$10,000 dollar is deposited in your account but your account will show balance of
$20,000 instead of $30,000 till your $10,000 dollar cheque is cleared this processing
time is known as availability float.

39) What do you mean by term ‘Loan Maturity’ and ‘Yield’?

The date on which the principal amount of a loan becomes due and payable is known
as ‘Loan Maturity’. Yield is commonly referred as the dividend, interest or return the
investor receives from a security like stock or bond, interest on fix deposit etc. For
example, any investment for $10,000 at interest rate of 4.25%, will give you a yield of
$425.

40) What is Cost Of Funds Index (COFI)?

COFI is an index that is used to determine interest rates or changes in the interest rates
for certain types of Loans.

41) What is Convertibility Clause?

For certain loan, there is a provision for the borrower to change the interest rate from
fixed to variable and vice versa is referred as Convertibility Clause.

42) What is Charge-off?

Charge off is a declaration by a lender to a borrower for non-payment of the

remaining amount, when borrower badly falls into debt. The unpaid amount is settled
as a bad debt.
43) What ‘LIBOR’ stands for?

‘LIBOR’ stands for London Inter-Bank Offered Rate. As the name suggest, it is an
average interest rate offered for U.S dollar or Euro dollar deposited between groups of
London banks. It is an international interest rate that follows world economic
condition and used as a base rate by banks to set interest rate. LIBOR comes in 8
maturities from overnight to 12 months and in 5 different currencies. Once in a day
LIBOR announces its interest rate.

44) What do you mean by term ‘Usury’?

When a loan is charged with high interest rate illegally then it is referred as ‘Usury’.
Usury rates are generally set by State Law.

45) What is Payday loan?

A pay-day loan is generally, a small amount and a short-term loan available at high
interest rate. A borrower normally writes post-dated cheques to the lender in respect
to the amount they wish to borrow.

46) What do you mean by ‘cheque endorsing’?

‘Endorsing cheque’ ensures that the cheque get deposited into your account only. It
minimizes the risk of theft. Normally, in endorsing cheque, the cashier will ask you to
sign at the back of the cheque. The signature should match the payee. The image over
here shows the endorsed cheque.

47) What are the different types of Loans offered by banks?

The different types of loans offered by banks are:

a) Unsecured Personal Loan

b) Secured Personal Loan
c) Auto Loans
d) Mortgage Loans
e) Small business Loans
48) What are the different types of ‘Fixed Deposits’?

There are two different types of ‘Fixed Deposits’

Special Term Deposits: In this type of ‘Fixed Deposits’, the earned interest on the
deposit is added to the principal amount and compounded quarterly. This amount is
accumulated and repaid with the principal amount on maturity of the deposit.

Ordinary Term Deposits: In this type of ‘Fixed Deposits’, the earned credit is credited
to the investor’s account, once in a quarter. In some cases, interest may be credited on
a monthly basis.
The earned interest on fixed deposits is non-taxable. You can also take a loan against
your fixed deposit.

49) What are the different types of Loans offered by Commercial Banks?

Start-Up Loans

This type of Loan is offered to borrower to start their business and can be used to
build a storefront, to acquire inventory or pay franchise fees to get a business rolling.

Line of Credit

Lines of credit are another type of business loan provided by commercial banks. It is
more like a security for your business; the bank allows the customer to withdraw the
amount from readily available funds in an adverse time. Customer or Company can
pay back over time and withdraw money again without going into the loan process.

Small Business Administration Loans

It is a Federal Agency (U.S) that gives funding to small businesses and entrepreneurs.
SBA (Small Business Administration) loans are made through banks, credit unions
and other lenders who partners with SBA.

50) What is ‘Bill Discount’?

‘Bill Discount’ is a settlement of the bill, where your electricity bill or gas bill is sold
to a bank for early payment at less than the face value and the bank will recover the
full amount of the bill from you before bill due date. For example, electricity bill for
XYZ is $1000; the electricity bill company will sell the bill to the bank for 10% to
20% discount to the face value. Here, the bank will buy the electricity bill for $900
whose face value is $1000, now the bank will recover, full amount of bill from the
customer i.e $1000. If the customer fails to pay the bill, the bank will put interest on
the outstanding bill and ask the customer for the payment.

51) What is ‘Bill Purchase’?

In ‘Bill Purchase’ the loan will be created for the full value of the draft and the
interest will be recovered when the actual payment comes. For example, a ‘Sight
draft’ is presented for which the loan is created for 100% of the draft value. The
money is received after 7 days, and then the interest will be recovered for 7 days
along with the principal amount.

52) What is ‘Cheque Discount’?

Cheque discounting service is offered only by few banks. For instance, if you have a
cheque of $3000 outstation and the cheque will take 7 seven days for clearance, then
bank will offer you a service for early payment. The bank can make an early payment,
but they will pay only for certain percentage of the actual amount, here they will pay
you $2000 but they will charge interest on it and the remaining $1000 will be paid,
once the outstation cheques get clear. Question: 1

How many seconds will a train 60 m in length, travelling at the rate of 42 km/h, take
to pass another train 84 m long, proceeding in the same direction at the rate of 30
km/h?

(A) 20 seconds

(B) 30 seconds

(C) 43.2 seconds

(D) 50 seconds
View Answer
Ans: C

Relative speed = 42 - 30 = 12 km/h = 12×

5
18
 = 
10
3
 m/s

Time taken by the train to pass another train = 

Distancetravelled
Speed
= 
(60+84)
10
3

 = 
432
10
 = 43.2 seconds.
Question: 2
Two trains are moving in opposite directions at 60 km/hr and 90 km/hr respectively.
Their lengths are 1.1 km and 0.9 km respectively. The time taken by the slower train
to cross the faster train in seconds is

(A) 36

(B) 46

(C) 48

(D) 56
View Answer
Ans: C

Let time taken by slower train to cross faster train be t seconds.

Relative speed = 60 + 90 = 150 km/hr

Relative speed of train = 1.1 + 0.9 = 2 km.

∴ Time taken to cross each other t = 

Lengthoftrain
Relativespeed
= 
2
150
 =
1
75
 hour

= 
60×60
75
 sec = 12 x 4 = 48 sec.
Question: 3

Two places P and Q are 162 km apart. A train leaves P for Q and at the same time
another train leaves Q for P. Both the trains meet 6 hours after they start moving. If
the train travelling from P to Q travels 8 km/h faster than the other train, find the
speed of the two trains.

(A) 7.5 km/h.

(B) 8.5 km/h.

(C) 9.5 km/h.

(D) 10.5 km/h.

View Answer
Ans: C

Let the speeds of trains be S1 km/h and S2 km/h

S1 + S2 = 
162
6
 = 27 km/h

S1 - S2 = 8 km/h

Solving (1) and (2), we get

S1 = 
27+8
2
 = 17.5 km/h

and S2 = 
27−8
2
 = 9.5 km/h.
Question: 4

Two stations P and Q are 110 km apart on a straight line. One train starts from P at 7
am and travels towards Q at 20 km/h speed. Another train starts from Q at 8 am and
travels towards P at a speed of 25 km/h. At what time will they meet?

(A) 9 am
(B) 10 am

(C) 11 am

(D) 12 am
View Answer
Ans: B

The trains starts from P and covers a distance of 20 km till 8 am.

Remaining distance = 110 – 20 = 90 km is covered by the trains with the relative

speed of 20 + 25 = 45 km/h.

∴ They meet after 

90
45
 = 2 h.

i.e., at 8 + 2 = 10 h.

i.e. at 10 am.
Question: 5

Two goods trains, each 500 m long, are running in opposite directions on parallel
tracks. Their speeds are 45 km/hr and 30 km/hr respectively. Find the time taken by
the slower train to pass the driver of the faster one.

(A) 12 sec

(B) 20 sec

(C) 24 sec

(D) 48 secAns: C

Relative speed of train = 45 + 30 = 75 km/hr = 75×

18
=

125

m/s

Let the time taken by slower train to pass the driver of faster train be t seconds.

t=

Lengthofslowertrain

Relativespeedoftrain

500

125

= 24 sec.

1. To encourage colonial peoples in their aspirations to attain independence before it

is __________ proved that  a __________ state will evolve instead of anarchy is
unforgivable.
a) Unchanged, Formidable
b) Certainty, Sympathetic
c) Succinctly, Redoubtable
d) Incontrovertibly, Viable
e) Unequivocally, Mobile

2. Human memory is not _________ especially on ancientry happenings that smack

of the __________.
a) Infallible, Mythological
b) Dependable, Simple
c) Confidant, Fanciful
d) Reliable, Inventive
e) Noteworthy, Fanciful

3. Athletes have so perfected their techniques in track and field events that the
__________ becomes __________ before record books can be published.
a) Announcement, Public
b) Meet, Official
c) Time, Authentic
d) Fantastic, Common place
e) Result, Universal

4. Like the __________ part of an iceberg, much of what is really interesting in the
capital is not __________.
a) Inner, Known
b) Submerged, Visible
c) Greater, Dangerous
d) Upper, Viable
e) Lower, Penetrable

5. Hence the word sophistry has an unfavorable ___________ and means arguing
deceitfully, attempting to turn a poor case into a good one by means of clever but
___________ reasoning.
a) Denotation, Ingenuous
b) Meaning, Ingenious
c) Connotation, Specious
d) Significance, Vague
e) Impact, Cogent
6. He warned the workers against supporting these anti-social policies, which he
declared would ___________ rather than __________ the plight of the common
people.
a) Rescue, People
b) Encourage, Defy
c) Aggravate, Alleviate
d) Empower, Improve
e) Protract, Inhibit

7. We have criticised our university students for preferring the security of political
silence and the safety of __________ to the excitement of social ___________ and
humanitarian action.
a) Acquiescence, Dissent
b) College, Adventure
c) Concealment, Revolution
d) Tolerance, Antagonism
e) Security, Insecurity

8. The practice of painting slogans on rock faces, once a thriving industry in Britain,
has fallen into __________ but there has recently been a/an __________ in Country
Antrim.
a) Oblivion, Demand
b) Misuse, Artisan
c) Disfavor, Puheaval
d) Mediocrity, Surfeit
e) Disuse, Recrudescence

9. Curiously enough the very passage, which set out to clarify only ___________; the
details are served up in ___________ three-page paragraphs which stupefy the reader.
a) Adumbrate, Excessive
b) Obscure, Succinct
c) Mystify, Stimulating
d) Disturb, Compact
e) Obfuscate, Monolithic

10. The increasing revival of dramatic classics is, to one critic, ____________; it
seems to him a sign of the __________ of the modern theatre.
a) Inconceivable, Revival
b) Deplorable, Anaemia
c) Suspicious, Resurgence
d) Astounding, Uselessness
e) Incomprehensible, Fatuousness

Answers: 1. D – 2. A – 3. D – 4. B – 5. C - C - A - E - E - B