Question 1

The relationship between a banker and its customer is basically that of

Accepted Answer

The primary relationship between a banker and its customer is that of a debtor and a creditor. When a customer deposits money in a bank, the bank owes that amount to the customer, making the bank a debtor and the customer a creditor.

Question 2

The banker's answer in case of dishonor of a cheque on a account of insufficiency of funds is generally

Accepted Answer

"Refer to drawer" (rd) is the term commonly used by bankers when a cheque is dishonored due to insufficient funds in the account. This indicates that the payee should contact the person who wrote the cheque for further clarification or action.

Question 3

The title of the endorsee will not be better than of the endorser in case a cheque is crossed containing the words

Accepted Answer

When a cheque is crossed and contains the words "not negotiable," it indicates that the title of the endorsee (the person to whom the cheque is endorsed) will not be better than that of the endorser (the person who endorses the cheque). This means that if the endorser does not have a good title to the cheque, the endorsee also acquires no better title.

Question 4

Travelers cheques are issue by

Accepted Answer

Travelers cheques are issued by commercial banks and authorized financial institutions, allowing travelers to secure their money while traveling.

Question 5

When a banker accepts the securities for safe custody, the relationship between a banker and a customer is that of

Accepted Answer

When a banker accepts securities for safe custody, the relationship between the banker and the customer is that of trustee and beneficiary. This is because the banker is holding the securities in trust for the customer.

Question 6

A right of appropriation first lies with the

Accepted Answer

The right of appropriation first lies with the debtor, allowing them to specify which debts are to be settled when making a payment to the creditor.

Question 7

The period of limitation in case of deposits with bankers from the date on which

Accepted Answer

The answer of The period of limitation in case of...

Question 8

Pay order is issued by the banks for

Accepted Answer

Pay orders are issued by banks for the purpose of making local payments within the same city or locality. They are a type of bank draft where the issuing bank guarantees the payment.

Question 9

Certificate of Deposit cannot be issued by

Accepted Answer

Regional rural banks are not allowed to issue Certificates of Deposit as they primarily focus on providing credit and banking services to rural areas and do not engage in the issuance of such financial instruments.

Question 10

The recurring deposit account combine the characteristics of ……….and fixed deposit account.

Accepted Answer

A recurring deposit account combines the features of a savings account, allowing regular deposits and earning interest, with the fixed term and interest rate benefits of a fixed deposit account.

Question 11

The drawee banker of a demand draft has received intimation of the loss of the draft from the purchaser.The banker should

Accepted Answer

The banker should exercise caution upon receiving intimation of the loss of a demand draft, as stopping payment or issuing a duplicate draft without proper procedure could lead to legal or financial complications.

Question 12

…………..is always drawn on a specified banker.

Accepted Answer

A cheque is always drawn on a specified banker, indicating the bank to pay the specified amount from the drawer's account to the payee or bearer.

Question 13

A customer requests for issue of a bearer demand draft.The banker should

Accepted Answer

Bearer demand drafts are not allowed due to the risk of loss or theft, as they can be cashed by anyone holding the draft.

Question 14

A and B have jointly hired a locker under "Either or Survivor" caluse. A dies.The bank should

Accepted Answer

In an "Either or Survivor" clause for a jointly hired locker, upon the death of one of the hirers (A in this case), the survivor (B) is permitted to operate the locker without the need for intervention by the deceased's legal representative. This clause is designed to allow the surviving hirer full access and control over the locker's contents.

Question 15

Pay order is issued by the banks for

Accepted Answer

Pay orders are typically issued by banks for making local payments within the same city or area, as they are a form of bank guarantee for local transactions.

Question 16

When a banker collects a cheque for which he has already given cash,his position is that of a…………

Accepted Answer

When a banker collects a cheque for which he has already given cash, he is considered a "holder for value" because he has provided value (cash) in exchange for the cheque.

Question 17

Merchant banking includes

Accepted Answer

Merchant banking primarily involves services such as managing the issue of shares, acting as financial advisors, underwriting services, and facilitating mergers and acquisitions.

Question 18

In case of ………….days of grace are allowed

Accepted Answer

Days of grace are allowed in the case of a bill of exchange. This is a period extended beyond the due date for the payment of the bill, typically three days, to give the debtor additional time to fulfill the obligation.

Question 19

A minor can open and operate an account in his own name if he has atleast attained the age of

Accepted Answer

In many jurisdictions, a minor can open and operate a bank account in their own name if they have attained the age of 12 years, subject to the bank's policies and parental consent.

Question 20

.The person appointed to operate the account after his death by the deceased himself before his I death is called

Accepted Answer

The answer of .The person appointed to operate the account...

Quiz 4: Banking and Financial Services

The relationship between a banker and its customer is basically that of

The banker's answer in case of dishonor of a cheque on a account of insufficiency of funds is generally

The title of the endorsee will not be better than of the endorser in case a cheque is crossed containing the words

Travelers cheques are issue by

When a banker accepts the securities for safe custody, the relationship between a banker and a customer is that of

A right of appropriation first lies with the

The period of limitation in case of deposits with bankers from the date on which

Pay order is issued by the banks for

Certificate of Deposit cannot be issued by

The recurring deposit account combine the characteristics of ……….and fixed deposit account.

The drawee banker of a demand draft has received intimation of the loss of the draft from the purchaser.The banker should

…………..is always drawn on a specified banker.

A customer requests for issue of a bearer demand draft.The banker should

A and B have jointly hired a locker under "Either or Survivor" caluse. A dies.The bank should

Pay order is issued by the banks for

When a banker collects a cheque for which he has already given cash,his position is that of a…………

Merchant banking includes

In case of ………….days of grace are allowed

A minor can open and operate an account in his own name if he has atleast attained the age of

.The person appointed to operate the account after his death by the deceased himself before his I death is called