B.B.M-B.B.M PRACTICE AND LAW OF BANKING I (Alagappa University - Directorate of Distance Education-2012)

DISTANCE EDUCATION
B.B.M. DEGREE EXAMINATION, MAY 2012.
PRACTICE AND LAW OF BANKING — I
Time : Three hours Maximum : 100 marks
PART A — (5 × 8 = 40 marks)
Answer any FIVE questions.
1. How does a banker act as a debtor and creditor for a customer?
2. What is meant by banker's lien? Explain the exceptions to the right of general lien also.
3. Explain the essential features of a promissory note.
4. Explain the need for crossing a cheque.
5. What does the collecting banker do as an agent of the customer?
6. What are the steps involved in opening an account in the name of trustees?
7. Discuss the legal position of a banker regarding fixed deposits.
8. Outline the steps involved in the use of Credit Cards.
PART B — (4 × 15 = 60 marks)
Answer any FOUR questions.
9. ‘‘A banker is bound to honour his customer's cheques’’ to what extent is this true. Discuss fully.
10. Explain the different types of cheques.
11. Distinguish between a promissory note and a bill of exchange.
12. Discuss the cardinal rules regarding a valid endorsement.
13. What are the precautions to be taken by a banker while
opening an account for the joint stock companies?
14. Explain the circumstances under which a banker can close the account of his customer.
15. Explain the functions of a merchant banker.

Earning:  ₹ 6.05/-