Practice Questions

Indigo symbolizes harmony among co-operative members

Green represents youth, growth, and prosperity, emphasizing development and sustainability.

Yellow denotes happiness and quality in co-operative achievements.

Orange represents courage to face challenges in co-operative work.

In the old flag, red symbolized dynamic and fundamental change, reflecting transformative co-operative principles.

Charles Fourier first conceptualized the rainbow as a symbol of harmony and co-operation

The National Cooperative Union of India (NCUI) has not adopted the 2001 flag. ICA and other organizations use it.

First officially adopted in Seoul, during the ICA Congress.

The 2001 flag has 10 doves, each symbolizing peace, co-operation, and international unity.

The new ICA logo was launched during the General Assembly 2013, aligning with the Global Co-operative Marque adoption.

The Global Co-operative Marque, a symbol of worldwide co-operative recognition, was adopted in 2013 to represent ICA globally

The flag contains 6 main colours, representing the core co-operative values: red, orange, yellow, green, blue, indigo/purple.

The main theme is Unity in Diversity, highlighting the inclusive nature of co-operatives, welcoming all people regardless of background.

Yellow stands for equity, ensuring fairness and justice in co-operative principles.

Blue symbolizes democracy, emphasizing equal participation in decision-making.

Red represents humanity, reflecting the cooperative value of caring for all members. Blue = democracy Yellow = equity

The purple colour is used in the lettering under the rainbow, symbolizing warmth, beauty, and friendship. The top stripe is red, and the doves are white.

Red is at the top of the flag, representing humanity, the core value of the co-operative movement. Other colours symbolize other values and appear lower in order.

The original Co-operative Rainbow Flag had 6 stripes, each representing a different co-operative value: red (humanity), orange (courage), yellow (equity), green (growth), blue (democracy), indigo/purple (harmony).

The 2001 flag was originally designed for the ICA Centennial Congress in 1995, celebrating 100 years of the cooperative movement.

Other options: UN event and Annual Congress came later.

The new ICA rainbow flag with 10 doves was introduced in 2001 to mark the centenary of the ICA (founded in 1895). This flag included symbolic doves to emphasize peace, cooperation, and global unity.

1995 was the Centennial Congress when the idea was designed.

2012 & 2013 are later events unrelated to the flag introduction.

first Co-operative Day flag instituted in Ghent

First International Co-operative Day was celebrated on 7 July 1923.and the same day the cooperative flag i instituted.

ICA officially approved the Rainbow Flag in 1925.

The initial efforts to create a Co-operative Flag started in 1896. Other options are either too early (1895) or later dates when the flag was already under discussion or approved.

By co-operative regulations, 10% of net profit (capped at ₹11 lakh) is allocated to the Member Relief Fund.

Certain co-operative societies, like Vanitha (women) co-operative societies, are given 50% exemption on audit fees as an encouragement to promote women’s participation in co-operative activities.

All co-operative societies of which all or a majority of members belong to SC/ST

Due by” refers to amounts payable or liability by the society or entity.

Audit fees are generally calculated based on sale proceeds of societies dealing in goods, as it reflects the scale of operations.

A transaction is any economic event that affects the financial position of a business and is recorded in the accounts.

Co-operative audit is not only for checking financial correctness but also to review administrative efficiency and compliance, making it both statutory and administrative.

The general body  of the concerned co-operative society is the authority responsible for appointing the statutory auditor. This appointment is made from a panel of auditors or auditing firms approved by the Director of Co-operative Audit or the Registrar of Co-operative Societies, depending on the specific state's Co-operative Societies Act and Rules. The managing committee is generally responsible for convening the meeting to make this appointment, but the final appointing authority rests with the members in the general meeting.

RBI-appointed administrator can continue up to 5 years.

The Banking Regulation (Co-operative Societies) Act, 1965 (BR Act) specifies that if a chairman is removed from office, they are barred from holding any position of chairman or director in any co-operative bank for four years from the date of removal. This restriction is meant to ensure proper governance and prevent misuse of authority.

RBI approval is required for appointment, re-appointment, and removal of auditors of co-operative banks.

Before re-appointing an auditor) Before appointing an auditor

Cross selling is offering additional products to an existing customer.

Selling other products to existing customers

Customization refers to modifying products/services according to individual customer needs.

FMC (Forward Markets Commission) was merged with SEBI in 2015 and no longer exists as a separate regulator.

The BR Act mainly protects depositors and ensures sound banking, not borrower interests

To develop banking institutions on sound lines

To attune the monetary and credit system to national priorities

A holder in due course gets a better title and can sue in his own name.A Holder in Due Course (HDC) is someone who acquires a negotiable instrument (like a check, promissory note) in good faith, for value (consideration), and without notice of any defects in the title before it's overdue, giving them superior legal rights to enforce payment, even if there are issues with the original transaction. They are essentially protected from hidden claims, meaning they can demand payment from the issuer and prior parties regardless of past problems, unlike a regular "holder

Cannot sue  on the instrument in his own name

Can sue on the instrument in his own name

Can sue  only if permitted by the competent  court of law

Can sue on the instrument if  permistted by the payee

A promissory note must contain an unconditional promise to pay, not a conditional one.

As per RBI KYC norms:

High risk – every 2 years

Medium risk – every 8 years

Low risk – every 10 year

SARFAESI Act applies only if the outstanding amount is ₹1 lakh or more and the account is classified as NPA.

Under PMLA, banks must preserve transaction records for 5 years from the date of cessation.

No law prescribes a standard cheque format; the NI Act only specifies essential features

Wrongful dishonor harms the reputation of the drawer, so the bank is liable to the drawer.

Mortgage is defined under Section 58 of the Transfer of Property Act, 1882.

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