Sunday, November 27, 2016

AHSEC - Question Papers: Banking' 2016

AHSEC - Previous Year's Question Papers
Banking - 2016
The figures in the margin indicate full marks for the questions.
1. Answer as directed:                   1x8=8
a)      Which is the first Development Bank established in India?
b)      What is primary market?
c)       In which year fourteen Indian commercial banks were nationalized?
d)      What do you mean by scheduled bank?
e)      Capital market is the market for long-term fund. (State whether True or False)
f)       Write the full form of MMMF.
g)      A collecting banker can claim statutory protection only in the case of ____ cheque. (Fill up the blank)
h)      What is statutory liquidity ratio?
2. Name two departments of the Reserve Bank of India.                               2
3. What is the meaning of cash credit?                   2
4. State the ‘minimum reserve system’ of note issue.                     2
5. Who can cross a cheque?                        2
6. Define endorsement.               2
7. State the meaning of Development Bank with example.           3
8. Briefly explain the utility services rendered by the commercial banks.                                3
9. Write a brief note on capital market.                  3
Or
Write a short note on foreign exchange market.                               3
10. Draw specimen of a blank cheque.                   3

AHSEC - Question Papers: Banking' 2014

AHSEC - Previous Year's Question Papers
Banking - 2014
1. Answer as directed:                                   1x8=8
a)      In which year the Imperial bank was established?
b)      Where is the head office of the Reserve bank of India?
c)       What is primary market?
d)      Write the full form of NABARD.
e)      The board of directors of Reserve Bank of India consists of ______ members. (Fill in the blank)
f)       What is overdraft?
g)      The first development bank established in India was IFCI/IDBI/UTI/NABARD.              (Choose the correct answer)
h)      Give an example of material alteration of cheque.
2. Define a cheque according to Sec. 6 of the Negotiable Instruments Act.               2
3. State the minimum reserve system of note issue.                                       2
4. Define ‘holder in due course’.                                                               2
5. What do you mean by SLR?                                                    2
6. Who can cross a cheque?                                                        2
7. What are the main sub-markets of financial market?                                  3
8. State any three differences between bill of exchange and cheque.     3
9. Draw a specimen copy of a cheque.                                    3
10. State the basic features of non-banking financial institutions.                                              3
11. Write a brief not about capital market.                            3
12. Explain briefly the system of issuing currency notes by the Reserve Bank of India.                5

AHSEC - Question Papers: Banking' 2015

AHSEC - Previous Year's Question Papers
Banking - 2015
The figures in the margin indicate full marks for the questions.
1. Answer as directed  :                                                                                                                                 1x8=8
a)      What was the previous name of State Bank of India?
b)      Which method is adopted by the Reserve Bank of India for issuing notes?
c)       What is Mutual Fund?
d)      The IMF came into existence in the year _____. (Fill in the gap)
e)      Write the full form of SIDC.
f)       Give an example of Negotiable instrument.
g)      Governor of RBI is appointed for a period of 4/5/10 years. (Choose the correct answer)
h)      What is bank rate?
2. Name any two Central banking functions performed by the State Bank of India.           2
3. What is full reserve system of note issue?                                                                     2
4. Name two sub-market of Indian money market.                                                 2
5. Who is collecting banker?                                                                                      2
6. Define holder under sec-8 of the Negotiable Instrument Act, 1881.                                     2
7. Briefly explain the agency services rendered by commercial banks.                                     3
8. State the meaning of Non-Bank Financial Institutions with example.                                   3
9. Write a brief note about stock exchange.                                                                      3
Or
Write a brief note on Money Market.
10. State the conditions for dishonor of cheque.                                                     3

AHSEC - Question Papers: Banking' 2012

AHSEC – Banking Previous year’s Question papers
Banking - 2012
1. Answer as directed:                                                                   1x10=10
a)      In which year fourteen Indian commercial banks were nationalized?
b)      What do you mean by scheduled bank?
c)       Define Hundi.
d)      The Reserve Bank of India was established in the year ____ (Fill in the gap)
e)      NABARD was established in the year 1982/1985/1987. (Choose the correct year)
f)       Write the full form of IFCI.
g)      What is post-dated cheque?
h)      Money market is the market for short-term funds. (State whether True or False)
i)        Lead Bank scheme was introduced in the year ____ (Fill in the gap)
j)        What is foreign exchange market?
2. What is bank rate?                                                                                                                      2
3. Give two examples of public sector bank.                                                                        2
4. Who can cross a cheque?                                                                                                        2
5. Name any two departments of the Reserve Bank of India.                                      2
6. State any two functions of stock exchange.                                                                    2
7. State the meaning of Development Bank.                                                                       2
8. Write a short note on Presidency Bank.                                                                            3
9. What are the essentials of valid endorsement?                                                             3
10. Write a short note on Mortgage.                                                                                       3
11. State any three important differences between Bill of Exchange and Cheque.                3

AHSEC - Class 12: Banking Notes - Employment of Funds

Unit – 7: Employment of funds
Short Questions and Answers (1/2 Marks each)
1. What do you mean by employment of funds by a bank?                          2000
Ans: Use of funds of banking institution in various types of assets such as loans and advances to customer, investment in securities etc with a view to earn profit to run the business is called employment of funds.
2. Write the full form of SLR and CRR.
Ans: Statutory Liquidity Ratio and Cash Reserve Ratio
3. What do you mean liquidity of asset?              
Ans: Liquidity of assets means ability to convert the asset into cash within a short period of time and without any loss in its value. 
4. Cash is the most liquid asset. (State whether true or False)                                                    2009, 11
Ans: True.
5. The provision relating to maintenance of cash reserve ratio by banks is contained in:
Ans: RBI Act.
6. A transferable letter of credit cannot be transferred more than once.
Ans: True
7. Define Mortgage.                                       2012
Ans: A mortgage is the transfer of an interest in specific immovable property for the purpose of securing the payment of money advanced or to be advanced by way of loan.

AHSEC - Class 12: Banking Notes - Cheque and Its Collection & Payments

Unit – 6: Cheque – Collection and Payments
Short Answer type Questions and Answers (1/2 Marks)
Q.1. Name various types of cheques.
Ans: 1) Open cheque which is divided into two parts: Bearer and order cheque. 2) Crossed cheque
Q.2. What is open cheque? What are its types?
Ans: An open cheque is one which is presented and paid by the banker over the banks counter in a direct way. An open cheque may be two types:  Bearer cheque and Order cheque.
Q.3. What is bearer cheque?
Ans: Bearer cheque is one which is payable to any payee who present it for payment over the counter of the bank.
Q.4. What is order cheque?
Ans: Order cheque is a cheque which is payable to a certain person named in the cheque by the drawer or to the order of the payee.
Q.5. What is open and crossed cheque?
Ans: An open cheque is payable across the counter and crossed cheques are paid through bank accounts.
Q.6. What is post-dated cheque?
Ans: If a cheque bears a date later than the date of issue it is termed as post dated cheque.
Q.7. What is stale cheque?
Ans: A cheque which is more than 3 months old is called a stale cheque.
Q.8. What is mutilated cheque?
Ans: Mutilated cheque is a cheque which is turn into two or more pieces.

AHSEC - Class 12: Banking Notes - Negotiable Instruments

Unit – 5: Negotiable Instruments
VERY SHORT TYPE QUESTIONS ANSWERS            
a)      A negotiable instrument should be received for consideration. True
b)      A bill of exchange is a conditional document. False
c)       The person who pays the amount of the bill is known as the payee. False
d)      Three days are given as ‘days of grace’ to a bill. True
e)      When a bill is renewed, the question of interest must come in. True
f)       Where a bill is dishonoured, the drawee is relieved of his liability. False
g)      On dishonouring a discounted bill, the drawer credits bank account. True
h)      The person to whom a bill of exchange is endorsed is called the endorser. False
i)        If the due date happens to be a public holiday the bill is payable on the next succeeding working day.  False
j)        Accommodation bills are not negotiable instruments. False
k)      When a bill is paid before its due date it is said to be renewed. False
l)        No days of grace are allowed on bills payable on demand or on slight. True
m)    In case of cheque, no grace periods are allowed for payment.  True.
n)      Three days of grace are allowed for payment, in case of promissory notes.  True.
o)      Bills are drawn by creditors.
p)      Bills receivable account is a real account.
q)      Bills of exchange before its acceptance is called a draft.
r)       The maker of a bill of exchange is called the drawer.

AHSEC - Class 12: Banking Notes - Non Banking Financial Institutions

Unit – 4: Non Banking Financial Institutions
Q.1. What are development banks. Mention its features and functions.
Ans: Development bank is a specialised financial institution which provides medium and long term finance to business units in the forms of loans, underwriting, investments and guarantees operations, promote entrepreneurship and upgrade knowhow and do-how. It is a multi-purpose financial institution and not just a term-lending institution. It does not accept deposits from the public, unlike commercial banks. A development bank does not perform ordinary banking functions.
According to William Diamond, “A Development Bank has the opportunity to promote enterprises i.e. to conceive investment proposal and to stimulate others to persue them or itself to carry them through from the ‘conception’ to ‘realisation’.
Features of Development Bank
a)      Development bank is a specialised financial institution which provides medium and long term finance to business units.
b)      It is a multi-purpose financial institution and not just a term-lending institution.
c)       It does not accept deposits from the public, unlike commercial banks. A development bank does not perform ordinary banking functions.
d)      Financial assistance is provided by a development bank not only to the private sector but also to the public sector undertakings.
e)      One of its major aims is to promote the saving and investment habit in the community.
f)       Its major role is the gap-filler, i.e. to fill up the deficiencies of the existing financial facilities.
g)      Its motive is to serve the public interest. It works in the general interest of the nation rather than to make profits. A development bank is motivated by social profits.

AHSEC - Class 12: Banking Notes - Financial Market

Unit – 3: Financial Market
OBJECTIVE QUESTIONS (1 mark)
1. What is a financial market? Mention its components.                               2008
Ans: It refers to the market which creates and exchanges financial assets. It is divided into two parts: Money market and capital market.
2. What are financial assets?
Ans: It refers to the financial instruments or securities. For e.g. shares, debentures, treasury bills, commercial paper etc.
3. What is floatation cost?
Ans: The expenditure incurred in issuing the securities is called floatation cost.
4. What is a zero coupon bond?
Ans: It is a financial instrument for which no interest is paid but is issued at a discount redeemable at par.
5. State the components of capital market?
Ans: a) Primary market b) secondary market.
6. Name two buyers of Commercial paper.
Ans: a) Banks b) Insurance companies.
7. What is meant by “Near Money?”
Ans: All very short term securities are called near money for e.g. marketable securities.
8. What type of trade-off function is performed by the money market?

AHSEC - Class 12: Banking Notes - Reserve Bank of India

Unit – 2: Reserve Bank of India
Short Questions and Answers (1/2 Marks each)
1. In which year the RBI act was passed?
Ans: The RBI act was passed in 1934.
2. In which year RBI came into existence or established?
Ans: The RBI came into existence on April 1935.
3. In which year the RBI nationalized or becomes a state owned institution?
Ans: The RBI was nationalized under the Reserve Bank (Transfer to public ownership) Act 1948, on January 1, 1949.
4. How many members are there in the Central Board of the director of the RBI?
Ans: There are 20 members in the Central Board of Directors.
5. How many local Boards are there in the organizations structures of RBI?
Ans: Four local boards located at Kolkata, Mumbai, New Delhi and Chennai.
6. Who appointed the Governor and the deputy governor of RBI?
Ans: The Central Government.
7. Who is the chairman of the Central Board?
Ans: The Government is the chairman of the Central Board.
8. Expand SLR and CRR.
Ans: SLR: Statutory Liquidity Ratio and CRR: Cash Reserve Ratio.
9. Which department of the RBI is responsible for issuing currency notes?
Ans: The issue department of the RBI is responsible for issuing currency notes.

AHSEC - Class 12: Banking Notes - Commercial Banking in India

Unit – 1: Commercial Banking in India
Short Answer type Questions and Answers (1/2 Marks)
1. Mention the names of the Presidency Banks?
Ans: (i) The Bank of Bengal (1809). (ii) The Bank of Bombay (1840) and (iii) The Bank of Madras (1843).
2. In which year the Imperial Bank of India Act was passed?
Ans: The Imperial Bank of India Act was passed in 1920.
3. In which year the Imperial Bank of India came into existence?
Ans: On 27th January 1921.
4. In which year the Imperial Bank of India was nationalized?
Ans: On July 1, 1955 and it is renamed as state bank of India.
5. How many Associate Banks of SBI are there?
Ans: There are at present 6 Associated Banks of SBI.
6. How many public sector banks in India?
Ans: 27 for example SBI, UBI, PNB, BOB etc.
7. Give two example of Private Sector Bank in India?
Ans: The Private Sectors Bank are AXIS Bank Limited, Yes Bank Limited, South India Bank Limited, and ICICI Bank Limited.
8. In which year the Lead Bank Scheme introduce?
Ans: The Lead Bank Scheme was introduced in December, 1969.

Sunday, November 13, 2016

Fundamentals of Entrepreneur and Entrepreneurship

Entrepreneur, Entrepreneurship and Enterprise:
Entrepreneur: The word “entrepreneur” is derived from the French word entreprendre which means to initiate or undertake. In the early sixteenth century, the Frenchmen who organised and led military expeditions were referred to as “entrepreneurs”. The term entrepreneur was applied to business in the early eighteenth century by French Economist Richard Cantillon. According to him, the entrepreneur buys factor services at certain prices with a view to sell their products at uncertain prices in the future. Richard Cantillon conceived of an entrepreneur as a bearer of non-insurable risk.
 An entrepreneur is a person who starts an enterprise. He searches for change and responds to it. A number of definitions have been given of an entrepreneur. The economists view him as a fourth factor of production along with land labour and capital. The sociologists feel that certain communities and cultures promote entrepreneurship. Some others feel that entrepreneurs are innovators who come up with new ideas for products, markets or techniques. Some of the popular definitions are given below:
J.B. Say: An entrepreneur is an economic agent who unites all means of production- land of one, the labour of another and the capital of yet another and thus produces a product. By selling the product in the market he pays rent of land, wages to labour, interest on capital and what remains is his profit. He shifts economic resources out of an area of lower and into an area of higher productivity and greater yield.
Schumpeter: According to him entrepreneurs are innovators who use a process of shattering the status quo of the existing products and services, to set up new products, new services.
David McClleland: An entrepreneur is a person with a high need for achievement [N-Ach]. He is energetic and a moderate risk taker.
Peter Drucker: An entrepreneur searches for change, responds to it and exploits opportunities. Innovation is a specific tool of an entrepreneur hence an effective entrepreneur converts a source into a resource.

Rural Entrepreneurs

Rural Entrepreneur, Its Types and their Problems
Meaning
Rural entrepreneurs are those who carry out entrepreneurial activities by establishing industrial and business units in the rural sector of the economy. In other words, establishing industrial and business units in the rural areas refers to rural entrepreneurship. In simple words, rural entrepreneurship implies entrepreneurship emerging in rural areas. Or, say, rural entrepreneurship implies rural industrialisation. Thus, we can say, entrepreneurship precedes industrialization.
According to KVIC (Khadi and Village Industry Commission), "village industries or Rural industry means any industry located in rural areas, population of which does not exceed 10,000 or such other figure which produces any goods or renders any services with or without use of power and in which the fixed capital investment per head of an artisan or a worker does not exceed a thousand rupees".
The modified definition of rural industries has been given by Government of India in order to enlarge its scope. According to Government of India, "Any industry located in rural area, village or town with a population of 20,000 and below and an investment of Rs. 3 crores in plant and machinery is classified as a village industry."
Types of Rural Industries:
All the village industries come under the following broad categories:

Women Entrepreneurship

Introduction to Women Entrepreneurship
Women Entrepreneurs may be defined as the women or a group of women who initiate, organize and operate a business enterprise. Government of India has defined women entrepreneurs as an enterprise owned and controlled by a women having a minimum financial interest of 51% of the capital and giving at least 51% of employment generated in the enterprise to women. Like a male entrepreneurs a women entrepreneur has many functions. They should explore the prospects of starting new enterprise; undertake risks, introduction of new innovations, coordination administration and control of business and providing effective leadership in all aspects of business.
Problems and Challenges of woman entrepreneurship in Assam
The entrepreneurs in Assam in particular and those of Indian’s North Eastern Region in general, irrespective of their gender, have some specific problems in setting up and running their business ventures. Similarly the Indian women in general have some problems specific to them. The nature and magnitude of the problems faced by our women depends on various factors to which a woman is subjected. Women in general have high degree of patience, profound sincerity in work, diligence, sense of duty and efficient managerial skill (with initial guidance). But unfortunately, the society either fails to identify their quality or under-estimate them and /or suppress them as second class citizen. The problems in general the women entrepreneurs in developing countries like India face, which are equally applicable to the women entrepreneurs in Assam relate to the following:
1.       Social attitude and support: Being in a male dominated society, the Indian women are treated as dependent on men and have no liberty to take decisions of their own. The attitude of non-co-operative from her husband or close family members stands heavily in the way of developing women entrepreneurship. Moreover, the conservative attitude of the society does not allow our women in most cases, to take up entrepreneurial ventures. The gender related discrimination is felt more severely when a woman entrepreneur approaches promotional agencies or banks.

Self Help Groups

Concept of Self Help Group (SHGs)
A self help group is defined as a group consisting of people who have personal experience of a similar issue or life situation, either directly or through their family and friends. Sharing experiences enables them to give each other a unique quality of mutual support and to pool practical information and ways of coping.
Self help groups are small informal association of the poor created at the grass root level for the purpose of enabling members to reap economic benefits out of mutual help solidarity and joint responsibility. Self help groups are formed voluntarily by the rural and urban poor to save and contribute to a common fund to be lent to its members as per group decision and for working together for social and economic uplift of their families and community.
A self help group is defined as a "self governed, peer controlled information group of people with similar socio-economic background and having a desire to collectively perform common purpose."
Characteristics of SHG
Some of the important characteristics of SHGs as per the Govt. of India stipulation are as follows:
1.       As SHG may consist of 10-20 members.
2.       Social affinity of the members is a common characteristic. This means to say that each SHG is a group of homogeneous masses.
3.       All members of the group should belong to families below poverty line.
4.       The group shall not consist of more than one member from the same family.

Leadership - Qualities, Types and Various Theories

Introduction: Leadership
Leadership is the ability to build up confidence and deal among people and to create an urge in them to be led. To be a successful leader, a manager must possess the qualities of foresight, drive, initiative, self-confidence and personal integrity. Different situations may demand different types of leadership.
Leadership means influencing the behaviour of the people at work towards realizing the specified goals. It is the ability to use non-coercive (no force) influence on the motivation, activities and goals (MAG) of others in order to achieve the objectives of the organisation.
Koontz and 0' Donnel “Leadership is the ability of a manager to induce subordinates to work with confidence and zeal”.
George R Terry “Leadership is the activity of influencing people to strive willingly for group objectives”.
Leadership Styles or Types of Leaders
1.       Autocratic or Authoritarian Style leader: An autocratic also known as authoritarian style of leadership implies wielding absolute power. Under this style, the leader expects complete obedience from his subordinates and all decision-making power is centralized in the leader. No suggestions or initiative from subordinates is entertained. The leader forces the subordinates to obey him without questioning. An autocratic leader is, in fact, no leader. He is merely the formal head of the organization and is generally disliked by the subordinates who feel comfortable to depend completely on the leader.

Entrepreneurial Development Programme - Objectives, Need and Weakness

ENTREPRENEURIAL DEVELOPMENT PROGRAMME (EDP)
Entrepreneurial Development Programme (EDP) can be defined as a programme, formally designed to help an individual in strengthening his/her entrepreneurial motive and in acquiring skill and capabilities necessary for playing entrepreneurial role effectively. In fact, it is an academic exercise to build up human resources by including them to take up entrepreneurial activities through motivation and developing the required entrepreneurial skills through exposure creation to effectively manage their enterprises. According to N.P. Singh, EDP is not merely a training programme. It is a process of:
a)      Enhancing and motivation, knowledge and skills of the potential entrepreneurs;
b)      Arousing and reforming the entrepreneurial behavior in their day-to-day activities; and
c)       Assisting them develop their own ventures or enterprise as a sequel to entrepreneurial action.
Thus, EDPs endeavous to change educate and equip a person to become a successful entrepreneur. The whole process envisages developing the participant’s latent qualities and skills as also equipping him with other capabilities. By the end of the programme, the participant is expected to be in a position to crystalise his vision in to action and launch and manage his enterprise with competence. The system involves a selection procedure and only those who prove to have certain minimum initial traits are selected as potential entrepreneurs to be trained up to develop the other required traits through interventions.
Objectives of EDP: The major objectives of the Entrepreneurship Development Programmes (EDPs) are to:

Micro, Small and Medium Enterprises - Promotional Agencies

Micro, Small and Medium Enterprises – Promotional Agencies
Salient features of Micro, Small and Medium Enterprises Development Act, 2006 are as follows
By enacting the Micro, Small and Medium Enterprises Development Act, 2006, the Government has recently fulfilled one of the needs felt and articulated by this segment for long. This Act seeks to facilitate promotion and development and enhancing competitiveness of these enterprises. It provides the first-ever legal framework for recognition of the concept of “enterprise” (comprising both manufacturing and services) and integrating the three tiers of these enterprises, namely, micro, small and medium. Apart from clearer and more progressive classification of each category of enterprises, particularly the small, the Act provides for a statutory consultative mechanism at the national level with wide representation of all sections of stakeholders, particularly the three classes of enterprises.
1. Section 7 of Act provides for the following classification in respect of industries engaged in production or manufacture of goods or rendering service enterprises:
Class
Manufacturing Enterprises – Investment in Plant & Machinery
Services Enterprises – Investment in Equipment
Micro
Less than Rs. 25 lacs
Less than Rs. 10 lacs
Small
Greater than Rs. 25 lacs but up to Rs. 5 Cr.
Greater than Rs. 10 lacs but upto Rs. 2 Cr
Medium
Greater than Rs. 5 Cr. but up to 10 Cr.
Greater than Rs. 2 Cr. but upto Rs. 5 Cr.

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