banking law and practices test 2

Which one of the following is the most important relationship between banker and customer

• Debtor and Creditor

• Bailee and Bailor

• Agency and Principal

• Trustee and Beneficiary

Dishonour of cheque by a banker without any justifiable reason is called

• Valid dishonour of cheques

• Unmindful dishonour of cheques

• Negligence dishonour of cheques

• Wrongful dishonour of cheques

Special damages refers to damages payable by a banker to his customer for the actual -------- ----- loss suffered by customer

• Financial

• special

• Unpecuniary

• Unfinancial

MICR technology used for clearance of cheques by banks refers to .

• Magnetic Ink Character Recognition

• Magnetic Ink Company Recognition

• Magnetic Ink Cross Recognition

• Magnetic Ink Community Recognition

Which banks which accept deposits from the public and lend them mainly to commerce for short periods?

• Commercial Bank

• Industrial Bank

• Agricultural Bank

• Central Bank

Fixed Deposits is otherwise called as

• Accrued Deposits

• Time deposits

• Recurring Deposits

• Demand Deposits

The rate of interest charged for the loan by the banker compared to overdraft and cash credit is generally

• High

• Low

• Same

• Based on the amount

. The written instructions given by the customers to banker to perform the services like collection and payment of money is noted down in

• Written Instructions Book

• Standing Instructions Book

• Banking Instructions Book

• Services Instructions Book

Services rendered by a banker not only to his customers, but also to the general public are called as

• Principal services

• Agency services

• General utility services

• Social services

In Negotiable Instruments Act 1881, which section defines promissory note?

• Section 1

• Section s

• Section 3

• Section 4