Monday, February 15, 2016

AHSEC - Class 12: Banking Question Bank for 2018 Exam

AHSEC – CLASS 12
SUBJECT - BANKING
QUESTION PAPER PATTERN
QUESTIONS TYPE
NUMBER OF QUESTIONS
TOTAL
MCQ
8
1X8=8
2 MARKS
5
2X5=10
3 MARKS
5
3X5=15
5 MARKS
7
5X7=35
8 MARKS
4
8X4=32
TOTAL
22 QUESTIONS
100


Frequently asked Differences

Difference between Bills of exchange and cheque (3)
2012, 2014, 2017
Difference between Bills of exchange and Promissory note (3)
2013, 2016
Difference between promissory note and cheque (3)
2015
Difference between cheque and draft (5)
2015
Difference between unit banking and branch banking
2015
Difference between capital market and money market
2012, 2014, 2016
Difference between cash reserve and cash balance
2016
Difference between various types of loans and advances
2017
Some other important differences:
Primary market vs Secondary market
Group banking and chain banking
Commercial banks and development banks
Holder vs holder in due course
Bills of exchange and hundi



OBJECTIVES AND FUNCTIONS OF IMF AND WORLD BANK (2012 TO 2017)
IMF
WORLD BANK
2013
2015
2017
2012
2014
2016


Very Very Important Topics for your exam (3 – 5 – 8 marks)
1. State the duties and responsibilities of paying banker.            2015
2. State the duties and responsibilities of collecting banker.      2012, 2014, 2016
3. What are various methods for note issue?
4. What is development bank? Give examples. Mention its features and role. 2012, 2013, 2014, 2015, 2016, 2017
5. What is Private and Public Sector Bank? Distinguish between them. Give some examples.    Every year
6. Write short note on Presidency Bank and Imperial Bank.
7. Mention various departments of RBI.
8. What is stock exchange? Explain its functions.
9. What is unit and branch banking? Mention their merits and demerits and distinguish between them. Every year
10. IMF, World Bank and NABARD.                          Every Year
11. What is financial market? Write a note on its types – capital market and money market with their features. Every year
12. Who are the participants of Indian money market?
13. Draw a specimen of cheque, Bills of Exchange and Promissory note.
14. What is material alteration? Give examples.
15. When a banker must honour or dishonour a cheque?
16. What is Mutual fund and MMMFs?
17. Define foreign exchange market. Explain its functions.
18. Explain the objectives and achievements of nationalisation of banks.

BANKING QUESTION BANK FOR FEB – MAR’ 2018 EXAM
UNIT-I: COMMERCIAL BANKING IN INDIA
A. Very short answer questions: (Carrying one/two marks each)
1.       In which year the Imperial Bank of Indian was established.
2.       In 1969 how many commercial banks were nationalized?
3.       How many commercial banks are nationalized at present?
4.       In which year 14 Indian Commercial banks were nationalized?
5.       In 1980 how many commercial banks were nationalized? In which year 6 Indian Commercial Banks were nationalized?
6.       In which year the Lead Bank Scheme was introduced?
7.       In which year the State Bank of India was established?
8.       What was the previous name of State Bank of India?
9.       Name the three Presidency Banks.
10.   What is Commercial Bank?
11.   Give the name of biggest commercial bank in India?
12.   Name the first bank in the world and its year of establishment.
13.   Which was the first bank established in India? When was it established?
14.   What is a private sector bank?
15.   What is a public sector bank?
16.   What is branch banking?
17.   What is unit banking?
18.   What is chain banking?
19.   What is group banking?
20.   What is scheduled and non-scheduled Commercial Bank?
21.   Name two private sector banks in India.
22.   Give two examples of public sector banks.
23.   What is Lead Bank Scheme?
B. Short Answer Questions: Type-II (Carrying 3 marks each)
24.   Write a short note on Imperial Bank of India.
25.   Write a short note on Presidency Bank.
26.   State the differences between scheduled and non-scheduled banks.
27.   Explain the meaning of Lead Bank Scheme. Mention three functions of Lead Bank Scheme.
28.   State the differences between group banking and chain banking.
29.   Define public and private sector bank. State the differences between public sector and private sector banks.
30.   Name the associate banks of the State Bank of India.
C. Long Answer Questions: Type-II (Carrying 5/8 marks each)
31.   Discuss the evolution and growth of commercial banking in India.
32.   Discuss the functions of Commercial Bank. (Primary functions and secondary functions – agency and general utility functions.
33.   Discuss the advantages and disadvantages of Branch Banking System.
34.   Explain the advantages and disadvantages of Unit Banking System.
35.   Mention clearly five differences between branch banking and unit banking.
36.   What is Lead Bank Scheme? State the effects of this scheme.
37.   Write a brief note on the State Bank of India. Discuss briefly the functions of the State Bank of India.
38.   Discuss the main objectives and achievements of bank nationalization in India. Or What were the causes of nationalization of some Indian Banks? How does it help the country?
39.   Describe briefly the note of commercial bank in economic development.

UNIT – 2: RESERVE BANK OF INDIA
A. Very Short Answer Questions: (Carrying one/two marks each)
1.       When the Reserve Bank of India was established?
2.       Where is the head office of the Reserve Bank of India?
3.       Who issues the one rupee notes?
4.       How many directors consist of the Board of Directors of RBI?
5.       In which year the RBI was nationalized?
6.       In which year RBI becomes a state owned institution?
7.       Which method is adopted by the Reserve Bank of India for issuing notes?
8.       Expand: SLR and CRR
9.       Name any two departments of the Reserve Bank of India.
10.   The Board of Directors of Reserve Bank of India consists of ____ members.
11.   What is Bank Rate?
12.   What is central bank?
13.   Give the meaning of Cash Reserve Ratio.
14.   State the meaning of Statutory Liquidity Ratio.
B. Short Answer Questions: Type – II (carrying 3 marks each)
15.   State the Minimum Reserve System of note issue.
16.   Explain in brief the Open Market Operations of the RBI.
17.   Briefly explain the functions of the Reserve Bank of India as banker’s bank.
18.   Briefly explain the functions of the Reserve Bank of India as banker to the government.
19.   Briefly explain the functions of the Reserve Bank of India as a clearing agent.
20.   Why RBI is called lender of last resort?
21.   Explain in brief about Credit Authorization Scheme.
C. Long Answer Questions: Type – II (Carrying 5/8 marks each)
22.   Explain the organization and management of Reserve Bank of India.
23.   Describe the prohibited functions of Reserve Bank of India.
24.   What are the objectives for establishment of Reserve Bank of India as the Central Bank of India?
25.   What are the various departments of Reserve Bank of India?
26.   State briefly the system of note issue.  (Simple Deposit system, Fixed fiduciary system, Proportional reserve system, Minimum reserve system, Maximum reserve system)
27.   What is Central Bank? Explain the traditional functions of Central Bank of India.
28.   Explain briefly how the Reserve Bank of India controls credit. (Quantitative or General Methods/Qualitative or Selective methods
UNIT – 3
FINANCIAL MARKETS
A. Very Short Answer Questions: (Carrying 1/2/3 marks each)
1.       What is primary or new issue market?
2.       What is stock exchange or secondary market?
3.       What is Money Market?
4.       What is Capital Market?
5.       Name two instruments of Money Market?
6.       Name two instrument of capital market?
7.       Name two sub-markets of Indian Money Market.
8.       What are government securities or gilt edged securities market?
9.       What is industrial securities market?
10.   What is call money market?
11.   What is collateral loan market?
12.   What is commercial paper?
13.   What is a certificate of deposit (CD)?
14.   What is commercial bill?
15.   Write the meaning of Financial Market?
16.   State two features of money market?
17.   State two features of capital market.
18.   What is bill market?
19.   Write the two functions of stock exchange.
20.   What are the different types of Financial Market?
21.   What are the main sub-markets of financial market?
22.   What is Foreign Exchange Market? State the functions of foreign exchange market?
B. Long Answer Questions: Type – I (Carrying 5/8 marks each)
23.   What is financial market? What are the different types of financial market?
24.   What is money market? Write five features of Indian money market.
25.   What is capital market? Write five features of capital market.
26.   Write a brief note about the composition of Money Market.
27.   Mention five differences between the money market and capital market.
28.   Mention five differences between the primary market and secondary market.
29.   Discuss about the institutions participating in the Indian Money Market.
30.   What are the functions of stock exchange?
31.   Explain the meaning of Non-Bank Financial Institutions with illustration. State its features.
32.   Highlight the role of Non-Banking Financial Intermediaries.

UNIT – 4
NON BANK FINANCIAL INSTITUTIONS
A. Very Short Answer Questions: (Carrying one/two/three marks each)
1.       Expand the following with their year of establishment: IFCI,   IDBI,   SFCs,   NABARD,   SIDCs,   UTI,   LICI,   GICI,   MMMFs,   IBRD,   IMF,   IDA,   IFC,   ADB.
2.       In which year the IMF came into existence?
3.       What do you mean by Development Banks?
4.       What is Mutual fund?
5.       What is MMMFs?
6.       Which was the first Development Bank and when was it established?
7.       What are the basic features of development banks?
8.       Mention any three objectives of development banks?
B. Long Answer Questions: Type – I (Carrying 5 marks each)
9.       Write a note on IFCI. State five objectives and functions of IFCI.
10.   Write a detailed note on IDBI. State the objectives and functions of IDBI.
11.   Write a detailed note on NABARD. Write brief objectives and functions of NABARD.
12.   Write a note on IMF. State five objectives and functions of IMF.
13.   Write a note on IBRD. Write a brief note on objectives and functions of IBRD.
C. Long Answer Questions: Type – II (Carrying 8 marks each)
14.   What is development bank or NBFIs? State their features.
15.   Describe the role of development banks for economic development.
16.   State the differences between Commercial Bank and Development Bank.
UNIT – 5
NEGOTIABLE INSTRUMENT
A. Very Short Answer Questions: (Carrying one/two mark each)
1.       Give an example of negotiable instrument.
2.       Give an example of special endorsement.
3.       When was the Negotiable Instrument Act Passed?
4.       When did the Negotiable Instrument come into force?
5.       Write the meaning of Negotiable Instrument.
6.       Define Cheque.
7.       Define Promissory Note.
8.       Give the meaning of Hundi.
9.       Explain the term ‘Holder’ of Negotiable Instrument.
10.   What is Bank Draft?
11.   Define ‘Holder in due course’
12.   Define Hundi.
13.   Name any two types of hundies.
14.   Define Negotiable Instrument.
15.   Define Bill of Exchange.
B. Short Answer Questions: Type – II (Carrying 3 marks each)
16.   Draw a specimen copy of Cheque.
17.   Draw a specimen copy of a blank cheque.
18.   Draw a specimen copy of Promissory Note.
19.   Draw a specimen copy of Bill of Exchange.
20.   What are the different types of Negotiable Instrument?
21.   Explain the term ‘Holder in due course’. Write the differences between ‘Holder’ and ‘holder in due Course’.
22.   What are the privileges enjoyed by a holder in due course?
23.   Discuss the term ‘Payment in due course’. Mention three features of payment in due course.
24.   State any three important differences between bill of exchange and cheque.
25.   State any three important differences between Hundi and bill of exchange.
26.   State the important differences between Promissory Note and Cheque.
27.   State the important differences between Promissory Note and Bill of Exchange.
C. Long Answer Questions: Type – I (Carrying 5/8 marks each)
28.   What is Negotiable Instrument? What are the essential characteristics of Negotiable Instrument?
29.   What is Bill of Exchange? What are its essential characteristics?
30.   What is Promissory note? What are its essential characteristics?
31.   Define endorsement. What are its various types? Discuss the significance of different types of endorsements.
32.   What is endorsement? What are the rules regarding endorsement.
33.   Define Hundi. What are the various kinds of Hundies?
UNIT – 6
CHEQUES COLLECTION AND PAYMENT OF CHEQUES
A. Very Short Answer Questions: (Carrying one/two marks each)
1.       Give an example of material alteration of cheque.
2.       Who can cross a cheque?
3.       A ‘Not Negotiable’ crossing cheque can/cannot be transferred (Choose the correct answer)
4.       A crossed cheque can be enclosed in the bank counter. (State whether true or false)
5.       A collecting banker can claim statutory protection only in the case of ____ cheque. (Fill in the blank)
6.       How do you cross a Cheque?
7.       What is Post Dated and ante dated Cheque?
8.       Who is a Collecting Banker and paying banker?
9.       What is open cheque?
10.   What is an order cheque?
11.   What do you mean by bearer cheque?
12.   What do you mean by Stale Cheque?
13.   What is general and special crossing?
14.   What is not negotiable crossing?
15.   What is account payee crossing?
16.   What is mutilated cheque?
17.   What is crossed cheque?
B. Short Answer Questions: Type – II (Carrying 3 marks each)
18.   Explain the difference between Open and Crossed Cheque.
19.   What is material alteration of cheque? Explain briefly about the material alteration of a cheque.
20.   State two differences of Bearer and Order Cheque.
21.   State the features of an open cheque. Write a note on the significance various types of crossing.
22.   What are the different forms of crossing?
23.   Draw specimens of different types of crossing of cheque.
D. Long Answer Questions: Type – II (Carrying 5/8 marks each)
24.   Discuss the precautions a banker should take for making payment of his customer’s cheque.
25.   Define crossing. Explain the different forms of crossing. State their significance.
26.   What are the duties and liabilities of a collecting banker?
27.   State the duties and liabilities of a Paying Banker.
28.   Explain the protection available to a collecting and paying banker.
29.   Explain the obligations of banker to pay cheque.
30.   Explain the circumstances under which a banker can dishonor a cheque.

UNIT – 7
EMPLOYMENT OF FUNDS
A. Very Short Answer Questions: (Carrying one/two mark each)
1.       Write the full form of CRR.
2.       Write the full form of SLR.
3.       State the meaning of liquidity.
4.       What do you mean by Hypothecation?
5.       What is the meaning of cash credit?
6.       Give the meaning of Cash Reserve Ratio.
7.       What is Overdraft?
8.       Explain Pledge.
9.       What is money at call and short notice?
10.   What do you mean by statutory liquidity ratio?
11.   Define Mortgage.
12.   What do you mean by discounting of bills?
B. Short Answer Questions: Type – II (Carrying 3 marks each)
13.   Mention any three differences between Loan and Hypothecation.
14.   Mention any three differences between Cash credit and Loan.
15.   Mention any three differences between Cash Credit and Hypothecation.
16.   Mention any three differences between Cash balance and cash reserve.
17.   What is discounting of bill? State its importance.
18.   What do you mean by Letter of Credit? What are its various types?
C. Long Answer Questions: Type – I (Carrying 5/8 marks each)
19.   Explain the term ‘Cash Reserve’, ‘Cash balance’ and Cash Credit’.
20.   Explain briefly about the CRR and statutory liquidity ratio of a commercial bank?
21.   Give the meaning of liquidity. State the factors that affect Cash Reserve of the Commercial Banks.
22.   Explain the significance of liquidity.
23.   Discuss the loans and advances granted by Commercial Banks distinguish between them.
24.   Discuss the principles followed by the commercial banks in granting loans and advances.
25.   Discuss the principles followed by a commercial bank in investing its funds in securities.

FREQUENTLY ASKED QUESTIONS FROM 2012 TO 2017 – CARRYING 8 MARKS
1.       Explain various functions of commercial banks. (Primary, Secondary – agency/general utility functions).  2012
2.       Write a brief note on evolution and growth of banking in India.                                       2015
3.       What is lead bank scheme? State its functions and effects.                 2013, 2015
4.       Write a brief note on SBI. State various functions of SBI.      2012, 2014, 2016
5.       Explain various functions of RBI.                                      2013, 2015, 2016
6.       Explain various credit control techniques used by RBI.                          2012, 2014
7.       What is financial market? Explain its various kinds.
8.       What is development bank? Mention its features and role.                               2016, 2017
9.       What is negotiable instrument? Mention its features.                          2013, 2015, 2017
10.   Define hundi. What are its various types?                                                   2015
11.   What is endorsement? What are its various types? State its significance.    2014
12.   What do you mean by crossing of a cheque? Explain its various types with their significance.            2012, 2014
13.   What protection available to collecting and paying banker?                               2017
14.   What precautions a banker must take at the time of payment?         2016
15.   Give the meaning of liquidity. State the factors that affect Cash Reserve of the Commercial Banks. Explain the significance of liquidity.                                               2012
16.   Explain and distinguish cash reserve, cash balance and cash credit. 2012, 2014, 2016
17.   Discuss the loans and advances granted by Commercial Banks distinguish between them.  2017
18.   Discuss the principles followed by the commercial banks in granting loans and advances.   2015      
19.   Discuss the principles followed by a commercial bank in investing its funds in securities.    2014, 2016, 2017