PRINCIPLES & PRACTICES OF BANKING

Multiple Choices:

Q1. Frequency of First Tranche Returns is:

1. Weekly

2. Monthly

3. Monthly/quarterly

4. Monthly/quarterly/half-yearly

Q2. An order for winding up a banking company can be issued by___________

1. The High Court

2. The RBI

3. The Central Government

4. The Supreme court

Q3. Who shall be natural guardian in case of married minor girl?

1. Father

2. Brother in law

3. Father-in-law

4. Husband

Q4. X a partner in the firm XYZ Co. wants to open a Bank account in the firm‟s name. It will require signatures of:

1. All partners

2. Any one of the partner

3. Managing partner only

4. Sleeping partner not required

Q5. Public limited companies should have minimum shareholders, before Opening Bank account.

1. 11

2. 7

3. 5

4. 15

Q6. If the beneficiary is government then the Expiry of guarantee is governed by the „law of limitation‟ ranging from 3 years to

1. 15 years

2. 30 years

3. 20 years

4. 10 years

Q7. Charge created on LIC Policy is

1. Lien

2. Hypothecation

3. Pledge

4. Assignment

Q8. The device that combines the parallel input data into single serial output data is known as

1. Switcher

2. Multiplexer

3. Encoder

4. Front end processor

Q9. In market skimming pricing strategy:

1. Initially price is lower and then it is increased

2. Initial price is high and is maintained high

3. Initial price is low and is maintained low

4. Initially price is higher and then it is reduced

Q10. The marketing personnel need information _________intervals.

1. At yearly

2. At quarterly

3. At monthly

4. On a continuous basis and regular

 Part Two:

Q1. Discuss the role of RBI in Indian Banking sector.

Q2. Write short notes on:

Q3. Write short notes on:

1. Repo Rate

2. Reverse Repo Rate.

3. Bank Lien

4. Right of set off

Q4. What is cash credit means?

Section B: Case lets (40 marks)

Case let 1

Questions:

1. How does the winner in such an auction become the loser due to the „winner curse‟?

2. Explain the role of primary dealers in the money market.

Case let 2

Questions:

1. Discuss the mechanism of forfeiting and the role played by banks in forfeiting transactions.

2. How does forfeiting differ from factoring?

Section C: Applied Theory (30 marks)

1. What are the various approaches to capital adequacy? Explain Basel II norms and minimum capital requirements in Basel II norms.

2. What do you mean by non Performing Assets (NPA)? How have NPAs affected financial health of Indian commercial banks?