Bharathidasan University 2007 B.B.A PRACTICE AND LAW OF BANKING - exam paper

B.B.A. DEGREE EXAMINATION, DECEMBER 2007.
Banking
PRACTICE AND legal regulations OF BANKING
(2005 onwards)
Time : 3 hours Maximum : 100 marks
PART A — (5 ? eight = 40 marks)
ans any 5 ques..
1. What do you understand by the term ‘customer’ of a bank? elaborate the conditions necessary to constitute a customer of a bank?
2. What are negotiable instruments and their characteristics?
3. Describe the different kinds bill of exchange used in commercial transactions.
4. What is the meaning of ‘crossing a cheque’? Who can cross it? Who can cancel the crossing and how?
5. What exactly is the difference ranging from current saving and fixed deposit accounts?
6. Write a short note on non-resident account.
7. What is a letter of credit? What is its significance in financing foreign trade?
8. Describe the procedure to be followed in regard to safe deposit vault.
PART B — (4 × 15 = 60 marks)
ans any 4 ques..
9. State and explain briefly different relationship ranging from Banker and Customer.
10. Who is a ‘holder in due course’? What precautions should the transferee of a negotiable instrument take to qualify as a ‘holder in due course’?
11. What is an endorsement? discuss and illustrate the various types of endorsements.
12. State and discuss the protection offered by the Negotiable Instruments Act, 1881, to the paying banker.
13. Why do banks write up a customer's pass book periodically and send it to him? explain the legal problems concerning the entries made by a banker in such a pass book.
14. Discuss the precautions a banker should take while opening a current account of a partnership, a public limited company and a charitable trust. provide reasons in support of your ans.
15. Describe the subsidiary services of a modern commercial bank.

Earning:   Approval pending.