banking theory law & practice

A "customer" of a bank is defined as someone who:

• Deposits money occasionally

• Has a regular account with the bank

• Visits the bank frequently

• Borrows money from any lender

The relationship between a banker and customer is primarily that of:

• Employer and employee

• Debtor and creditor

• Buyer and seller

• Principal and agent

In the banker-customer relationship, when the customer deposits money, the banker becomes:

• A creditor

• A debtor

• A trustee

• An agent

A special relationship exists between a banker and customer when the banker acts as:

a

• A debtor

• A trustee

• An agent

• Both b and c

Which of the following is a primary function of a banker?

• Accepting deposits

• Providing insurance services

• Offering investment advisory services

• Safeguarding valuables

Agency services provided by bankers include:

• Acting as a trustee

• Paying utility bills on behalf of customers

• Providing overdraft facilities

• Collecting loans

Which of these is an example of general utility services provided by a banker?

• Issuance of credit cards

• Conducting online transactions

• Issuance of demand drafts

• All of the above

What type of deposit earns higher interest but restricts withdrawals until maturity?

• A. Savings Deposit
  

• Current Deposit

• Recurring Deposit

• Fixed Deposit

What is the main purpose of a savings account?

• For daily transactions without restrictions

• To save money and earn interest

• For one-time large investments

• For systematic withdrawals

What is the primary law regulating the banking industry in India?

• Companies Act, 2013

• Income Tax Act, 1961

• Banking Regulation Act, 1949

• Reserve Bank of India Act, 1934