Welcome to Jaiib Virtual Classroom Session October 08/2007 Principles of Banking – module b Model questions

FCNR accounts FCNR accounts can be opened in the following currencies except one: a) United States Dollar b) Canadian Dollar c) Singapore Dollar d) Australian Dollar

Banker-Customer Relations One of your valued customer has handed over a sealed packet, to be kept as a safe custody item, with your bank. The relationship between you (as banker) and your customer is: a) Lessor and Lessee b) Bailor and Bailee c) Bailee and Bailor d) Lessee and Lessor

Match the following i) Current Deposits A) Assets ii) Term Loan B) Liabilities iii) Funds Transfer C) RTGS Iv) Bancassurance D) IRDA a) i-A,ii-B,iii-C,iv-D b) i-B,ii-A,iii-D,iv-C c) i-A,ii-B,iii-D,iv-C d) i-B,ii-A,iii-C,iv-D

Negotiable Instruments State which of the following is/are incorrect: i)Crossing is applicable to a Bill of Exchange. ii)Paying banker gets protection only for payment of a bearer cheque. iii)A Materially altered cheque is a negotiable instrument. iv)The drawee of a cheque can issue a stop payment instruction. i,ii i,ii,iii i,iii,iv i,ii,iv

Types of Charges Which charge/s need not be registered with the ROC: Hypothecation Pledge Mortgage Both a and c

Mutual Funds The regulator for Mutual Funds in India is: a) RBI b) SlDBI c) SEBI d) FIMMDA

Credit Appraisal While appraising a credit proposal and sanctioning a line of credit to their clients, banks usually apply the concepts popularly known as 6 Cs, representing Character/Capital/Capacity/Collateral/Condition and Compliance. Your bank while sanctioning a cash credit limit to one of your customers, informs the customer, that the customer needs to submit monthly stock statements. This requirement can be classified as : a) Capacity b) Condition c) Character d) Capital

Funds Transfer Which is not an example of electronic funds transfer: RTGS EFT MICR ECS

Non Fund Based Limits Which one of the following is not a non fund based limits, extended by banks: a) Letters of Credit b) Bank Guarantee c) Trust Receipt d) Co-acceptance of Bills

The diagram is called as: a)Cash flow cycle d)Work flow cycle c))Working Capital Cycle d) Trade Cycle

Cheques In the inward clearing your bank receives a cheque, without the account holder’s signature for Rs Two lakhs. Which reason you will select to return the cheque? a) Cheque is not signed by the drawee b) Cheque is not signed by the payee c) Cheque is not signed by the payee d) Refer to the drawer

Garnishee Order Bank A receives a Garnishee Order attaching funds of customer XYS Ltd. At the time of receipt of the order, the various accounts of XYS Ltd, showed: i) Cash Credit a/c - Rs. 23,285.27 (cr) ii) Over Draft a/c - Rs. 10,001.11(dr) iii) An overdue Fixed Deposit a/c for Rs.1,00,000.00 Identify which account/s is/are attachable under the garnishee order a) i and ii b) i and iii c) ii and iii d) iii

Types of accounts Either or Survivor (the operating instructions) can not be applicable to which of the following accounts: i) SB account of Mr.A, where Mrs.A is a nominee ii) Saravana Cooperative Housing Society maintains a current account,operated by the Secretary and President iii) ABJ Ltd, places Rs.Two crores as Fixed deposit for 6 months. a) i and iii b) i,ii and iii c) ii and iii d) i

Bancassurance Bancassurance is: a) An insurance scheme to insure bank deposits b) A post office insurance scheme marketed by banks and insurance companies c) A composite financial service offering both bank and insurance products d) An innovative insurance product introduced by an insurance company.

Type of Facility Your Bank has granted an overdraft against book debts. The charge is: a) Hypothecation b) Pledge c) Assignment d) Mortgage

ALL THE BEST & THANK YOU T.M.C.VARADARAJAN TEL : 022-25638965 (R) e.mail: t.varadarajan@scotiabank.com tmc_varadarajan@yahoo.co.in

Answers FCNR accounts – C Banker Customer Relations – C Match the following – D Negotiable Instruments – D Type of Charges – B Mutual Funds – C Credit Appraisal – B

Answers Funds Transfer – C Non Fund Based Limits – C Diagram – C Cheques – D Garnishee Order – B Type of accounts - B Bancassurance – C Type of Facility – C