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Banking theory law and Practice

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

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

a)

Accepting deposits

b)

Providing insurance services

c)

Offering investment advisory services

d)

Safeguarding valuables

2.

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

a

a)

A debtor

b)

A trustee

c)

An agent

d)

Both b and c

3.

Agency services provided by bankers include:

a)

Acting as a trustee

b)

Paying utility bills on behalf of customers

c)

Providing overdraft facilities

d)

Collecting loans

4.

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

a)

A. Savings Deposit

b)

Current Deposit

c)

Recurring Deposit

d)

Fixed Deposit

5.

What is the main purpose of a savings account?

a)

For daily transactions without restrictions

b)

To save money and earn interest

c)

For one-time large investments

d)

For systematic withdrawals

6.

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


a)

Issuance of credit cards

b)

Conducting online transactions

c)

Issuance of demand drafts

d)

All of the above

7.

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

a)

A creditor

b)

A debtor

c)

A trustee

d)

An agent

8.

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

a)

Employer and employee

b)

Debtor and creditor

c)

Buyer and seller

d)

Principal and agent

9.

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

a)

Deposits money occasionally

b)

Has a regular account with the bank

c)

Visits the bank frequently

d)

Borrows money from any lender

10.

Which act regulates banking in India?

a)

Banking Regulation Act 1949

b)

Consumer Protection Act 1986

c)

Companies Act 1956

d)

Negotiable Instruments Act 1881