Modern Banking Practices (May-June’ 2018) | Gauhati University Question Papers


Gauhati University Question Papers
MODERN BANKING PRACTICES (May-June’ 2018)
Full Marks: 80
Time Allowed: 3 hours
Answer either in English or Assamese
The figures in the margin indicate full marks for the questions

1. Choose the correct answer:               1x10=10
a)         In which year 6 more commercial banks were nationalized in India?
1)         1969.
2)         1975.
3)         1980.
4)         1982.
b)         Which one of the following is the first Universal Bank in India?
1)         ICICI Bank.
2)         HDFC Bank.
3)         SBI.
4)         AXIS Bank.
c)          Schedule 3 in the Bank Balance Sheet related to:
1)         Deposits.
2)         Capital.
3)         Borrowings.
4)         Fixed Assets.
d)         Under which Schedule a bank prepares its Balance Sheet?
1)         Third Schedule of the Banking Regulation Act, 1949.
2)         Third Schedule of the Reserve Bank of India Act, 1934.
3)         Third Schedule of the Companies Act, 2013.
4)         Third Schedule of the Negotiable Instruments Act, 1881.
e)         The relationship between a banker and a customer is:
1)         That of a debtor and creditor.
2)         That of a creditor and debtor.
3)         Primarily that of debtor and creditor.
4)         None of the above.
f)          A banker’s lien is:
1)         Negative lien.
2)         Particular lien.
3)         General lien.
4)         All of the above.
g)         A collecting banker is given protection only when he collects a crossed cheque.
1)         Correct.
2)         Incorrect.
h)         Two parallel transverse lines are essential for a special crossing.
1)         Correct.
2)         Incorrect.
i)           “Advance of a bank represents its assets.”
1)         Correct.
2)         Incorrect.
j)           Borrower’s character + capacity + capital = Safe credit.
1)         Correct.
2)         Incorrect.
2. Answer the following questions:          2x5=10
a)         What is unit banking?
b)         Define customer of a bank.
c)          What is an overdraft?
d)         Write two features of Negotiable Instrument.
e)         What is Non-performing Assets?
3. Answer any four of the following questions (in about 200 words each):               5x4=20
a)         Distinguish between public sector bank and private sector bank.
b)         Give the proforma of Schedule 2 of a Bank Balance Sheet.
c)          Briefly discuss the rights of a banker.
d)         Explain the significance of general crossing.
e)         Distinguishing between a cheque and a bank draft.
f)          Explain the difference types of business credit.
4. (a) State the features of retail banking.                                               4
(b) Briefly state the advantages and disadvantages of branch banking system.           6
Or
Describe the functions of modern commercial banks.                         10
5. (a) Briefly discuss the procedure of opening a bank account in the name of a partnership firm.      6
(b) Distinguish between Hypothecation and Mortgage.          4
Or
Explain the circumstances under which the banker-customer relationship terminates.            10
6. Discuss the principles of bank lending.         10
Or
State the various assets contained in a Bank Balance Sheet.       10
7. Define ‘holder’ and ‘holder in due course’. State the privileges of a holder in due course.   4+6=10
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