Alagappa University 2007 B.B.M PRACTICE AND LAW OF BANKING – I - Question Paper

DISTANCE EDUCATION
B.B.M. DEGREE EXAMINATION, DECEMBER 2007.
PRACTICE AND legal regulations OF BANKING – I
Time : 3 hours Maximum : 100 marks
PART A — (6 ? five = 30 marks)
ans any 6 ques..
every ans not to exceed one page.
1. What do you understand by the term customer of a Bank?
2. What are the conditions to be satisfied by a person to become holder in due course?
3. What is Garnishee Order? elaborate the circumstances under which Garnishee Order is not binding on the banker?
4. When can a banker refuse payment of his customer's cheques?
5. Write a note on MICR Cheques.
6. What are Merchant Banking Services?
7. What is the significance of a Pass Book?
8. What are the precautions to be taken in dealing with a partnership firm?
9. What is Letter of Credit? discuss its features.
PART B — (5 ? 14 = 70 marks)
ans any 5 ques..
every ans not to exceed five pages.
10. Discuss the special features of Banker–Customer relationship.
11. What are the characteristic features of a Cheque?
12. What are the precautions to be taken by a paying banker in making payment of a cheque?
13. What is crossing? discuss its various kinds.
14. Explain various kinds of endorsement.
15. What are the legal aspects of entries in the Pass Book?
16. What are the rights and privileges of a holder in due course?
17. Describe the circumstances when a banker should close the account of a customer?
18. As a banker how will you deal with a club and a minor?

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