BANKING AWARENESS 3

1. ________ is/are permitted to act as a bank. i. A firm ii. Company iii. Individuals iv. Money lenders

• (A) (i) and (iii)
• (B) (ii) and (iv)
• (C) (i) and (ii)
• (D) All the above

2. Beneficiary of transactions conducted by _________

• (A) Stock Brokers
• (B) Chartered Accountants
• (C) Solicitors
• (D) All of the above

3. The RBI permitted banks to allow minors _______ to independently open and operate saving bank accounts.

• (A) Below 10 years
• (B) Above 10 years
• (C) Above 12 years
• (D) Above 13 years

4. If a customer keeps certain valuables or securities with the bank for safe – keeping or deposits a certain amount of money for a specific purpose, the banker, besides becoming _______

• (A) Bailee
• (B) Trustee
• (C) (A) and (B)
• (D) Debtor
• (E) Creditor

5. A trustee holds money or assets and performs certain functions for the benefit of other person called _____

• (A) Beneficiary
• (B) Debtor
• (C) Creditor
• (D) Bailee

6. The bank provides safe deposit lockers to the customers who pay hire-charges for them. The relationship therefore, is that of _________

• (A) Creditor – Debtor
• (B) Bailee - Bailor
• (C) Principal – Agent
• (D) Lessor – Lessee

7. The ________ for any loss that arises to the lessee in this form of transaction except due to negligence of that bank.

• (A) Bank is responsible
• (B) Bank is not responsible
• (C) Customer is not responsible
• (D) No one is responsible

8. When purchase of draft, the relationship between bank and customer respectively _____

• (A) Debtor – creditor
• (B) Creditor – debtor
• (C) Trustee – beneficiary
• (D) None

9. When payee of a draft, the relationship between customer and bank respectively_____

• (A) Creditor – debtor
• (B) Debtor – creditor
• (C) Beneficiary – trustee
• (D) Trustee – beneficiary

10. When share given for sale relationship between bank and customer respectively ______

• (A) Creditor – debtor
• (B) Debtor – creditor
• (C) Principal – agent
• (D) Agent – principal