B.Com-B.Com Computer Applications BANKING THEORY, LAW AND PRACTICE (Alagappa University - Directorate of Distance Education-2012)

DISTANCE EDUCATION
B.Com.(CA)/B.Com. (CA)(Lateral) DEGREE EXAMINATION, MAY 2012.
BANKING THEORY, LAW AND PRACTICE
(2005 onwards)
Time : Three hours Maximum : 100 marks
SECTION A — (5 × 8 = 40 marks)
Answer any FIVE of the following questions.
1. Define Banking. Discuss its features.
2. What are the limitations of credit creation?
3. Distinguish between Unit Banking and Branch Banking System.
4. What are the components of money market?
5. Briefly discuss the legal position of a pass book.
6. What are the contents of a cheque?
7. Define Negotiable instruments. What are its special features?
8. Explain Holder in due course.
SECTION B — (4 × 15 = 60 marks)
Answer any FOUR of the following questions.
9. Explain the functions of central bank.
10. Enlist the achievement of the commercial banks in India subsequent to the nationalisation.
11. Briefly explain the role of commercial banks in the Indian money market.
12. Discuss the legal position of a banker with regard to a fixed deposit.
13. What are the general principles which should guide a banker in making loans and advances to a customer?
14. What precautions to be taken by a banker in opening of a new account?
15. What is crossing? Explain the different types of crossing.  

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