Principles of Banking (FINA2204)
Faculty of Economics and Management Science (FEMS)
Semester: Second Semester
Level: 200
Year: 2017
1. Customers can made repayment of deposits from the bank only on:
a) working days of the week. b) All days of the week
c) all days of the week including holidays c) all of the above.
2. It is a ………... obligation of a banker to honor the cheques of the customer drawn
against current account.
a) statutory b) mutual c) unstatutory d) all of the above
3. When banker received deposits from the customer, then the banker becomes
……………. Of the customer.
a) debtor b) creditor c) bailee d) trustee
4. Dishonor of cheque by a banker without any justifiable reason id called:
a) wrongful dishonor of cheques b) valid dishonor of cheques
c) unmindful dishonor of cheques d) negligence dishonor of cheques
5. The primary relationship between a banker and customer starts from the time:
a) when customer opens a bank account. b) When customer visits that bank
c) when customer visits that bank to make queries. d) all of the above
6. Which one of the following is the most important relationship between banker and
customer?|
a) debtor and creditor b) bailee and bailor
c) agency and principal d) trustee and beneficiary
7. In current account, the period of limitation starts:
a) when customers demand for repayment of deposits. b) After 2 years from the
date of deposits. c) when customer deposits amount in the bank account d)
none of the above
8. Which bank is otherwise called as investment bank?
a) industrial bank b) exchange bank c) reserve bank of India d)
agricultural bank
9. Fixed deposits is otherwise called as:
a) time deposits b) accrued deposits c) recurring deposits d) demand
deposits
10. The fixed deposits are withdrawn by the customers from the banks by:
a) surrendering fixed deposit receipts b) using cheques
c) using withdrawal slips d) using ATM
11. ………… banks which accept deposits from the public and lend them mainly to
commerce for short periods?
a) commercial b) industrial c) agricultural d) central
12. ………… type of deposit, the high rate of interest is provided by the bank.
a) fixed deposit account b) current account c) recurring
deposit account d) savings account
13. Name the person to whom the amount of the cheque is payable?
a) drawee b) drawer c) payee d) acceptor
THE UNIVERSITY OF BAMENDA
FACULTY OF ECONOMICS AND MANAGEMENT SCIENCES
2
nd
Semester C.A Course: Principles of Banking: FINA204
Credit Value:
Course Lecturers:
Time: Course Status: Date:
Venue: Instruction:
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14. When the amount stated in words and figures are different then the banker:
a) can dishonor it b) can honor the amount in figures
c) can honor the amount in words d)can honor the smaller amount
15. Cash dispenser is a pruned down version of the:
a) ATM b)EFT c) NEFT d) SWIFT
16. Accounts are allowed to be operated by cheques in respect of?
a)both savings bank accounts and current accounts
b)both savings banks accounts and fixed deposit accounts
c)both savings bank accounts and loan accounts
d)both savings bank accounts and cash accounts only
17. For an asset to act as money, the asset must:
a)be commonly accepted by the public as a medium of exchange
b)be legally accepted by the public d a medium of exchange
c)have a physical existence
d)be made out of or fully backed by a precious metal
18. Which of the following is not a function of money?
a) intermediation b) unit of account c) medium of exchange d) store of
value
19. The exchange of commodities for commodities is called:
a)barter b)indirect exchange c)asset transformation d)monetary
exchange
20. Which of the following is not the function of the commercial bank?
a)acceptance of deposits b)advancing loans c)issue of paper
notes d)credit control
21. Demand deposit also known as;
a)current account b) fixed deposit a/c c) capital a/c d)
recurring account
22. Commercial banks to expand deposit through expending their loans and advances is
known as:
a) credit creation b) trade discount c) deposit d) bank advances
23. Rediscounting and giving advance the central bank charges interest at a rate which is
known as:
a) bank rate b) SLR c) CRR d) credit
24. The deposit balances kept by all commercial banks with the central bank are known
as:
a) cash reserve b) reserve c) Earnings per share d) credit
25. …………… lender of last resort.
a) central bank b) scheduled bank c) commercial bank d) none of
these
26. A cheque is:
a) negotiable instrument b) instrument c) transferred instrument d) none
of these
27. As per the act negotiable instrument means:
a) document b) transferred instrument c) exchange instrument d)
promissory note
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28. Bill of exchange is a:
a) need not be a printed form b) printed form c) crossing d)
conditional order
29. …………. Cheque is easily transferred from one person to another by mere delivery
a) bearer cheque b) open cheque c) crossed cheque d) stale cheque
30. The payees’ name is written is written on the cheque is called:
a) order cheque b) multivalued cheque c) open cheque d) crossed
cheque
31. ………….. cheque cannot be transferred from one person to another person by mere
delivery
a) order cheque b) open cheque c) crossed cheque d) stale
cheque
32. A cheque can be crossed by drawing two transverse parallel lines through top left
corner of cheque is called:
a) crossed cheque b) general crossing c) special crossing d) post-
dated cheque
33. If a cheque is torn into two or more pieces and presented for payment is called a
…….
a) mutilated cheque b) mixed cheque d) group cheque d) anti-dated
cheque
34. Cheque in which the drawer mentions the date earlier to the date of presenting it for
payment is called:
a) anti-dated cheque b) crossed cheque c) post-dated cheque d) none of
these
35. If a cheque has bears a date which is yet to come is termed as a:
a) post-dated cheque b) anti-date cheque d) marketing cheque d) stale cheque
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