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Multiple Choice Questions & Answers: Banking Law

This document contains 12 multiple choice questions and answers about banking law. It addresses topics like the primary relationship between a banker and customer, which begins when a customer opens an account. The most important relationship is that of debtor and creditor. The Reserve Bank of India has given instructions to commercial banks regarding immediate credit for outstation checks. Dishonor of a check by a banker without justification is called wrongful dishonor. The Negotiable Instruments Act of 1881 regulates negotiable instruments in India.

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Arun Kumar Tripathy
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2K views2 pages

Multiple Choice Questions & Answers: Banking Law

This document contains 12 multiple choice questions and answers about banking law. It addresses topics like the primary relationship between a banker and customer, which begins when a customer opens an account. The most important relationship is that of debtor and creditor. The Reserve Bank of India has given instructions to commercial banks regarding immediate credit for outstation checks. Dishonor of a check by a banker without justification is called wrongful dishonor. The Negotiable Instruments Act of 1881 regulates negotiable instruments in India.

Uploaded by

Arun Kumar Tripathy
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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BANKING LAW

Multiple Choice Questions & Answers


1. The primary relationship between a banker and customer starts from the time
A. when customer visits that bank
B. when customer opens account
C. when customer visits that bank to made queries
D. All of the above
ANSWER: B
2. The primary relationship between banker and customer is a ------------------ relationship
A. Mutual
B. Contractual
C. Personal
D. None of the above
ANSWER: B
3. Which one of the following is the most important relationship between banker and
customer
A. Debtor and Creditor
B. Bailee and Bailor
C. Agency and Principal
D. Trustee and Beneficiary
ANSWER: A
4. Which bank have given the instructions to the commercial banks regarding the immediate
credit of outstation cheques?
A. Reserve Bank of India
B. Central Bank
C. World Bank
D. All of the above
ANSWER: A
5. Dishonour of cheque by a banker without any justifiable reason is called
A. Valid dishonour of cheques
B. Unmindful dishonour of cheques
C. Negligence dishonour of cheques
D. Wrongful dishonour of cheques
ANSWER: D
6. Special damages refers to damages payable by a banker to his customer for the actual --------
----- loss suffered by customer
A. Financial
B. Special
C. Unpecuniary
D. Unfinancial
ANSWER: A
7. MICR technology used for clearance of cheques by banks refers to
A. Magnetic Ink Character Recognition
B. Magnetic Ink Company Recognition
C. Magnetic Ink Cross Recognition
D. Magnetic Ink Community Recognition
ANSWER: A
8. In India, the law regulating the Negotiable instruments are
A. Banking Regulation Act 1949
B. Reserve Bank of India Act 1934
C. Negotiable Instruments Act 1881
D. Companies Act 1956

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BANKING LAW
Multiple Choice Questions & Answers
ANSWER: C
9. Which banks which accept deposits from the public and lend them mainly to commerce for
short periods?
A. Commercial Bank
B. . Industrial Bank
C. Agricultural Bank
D. Central Bank
ANSWER: A

10. Fixed Deposits is otherwise called as


A. Accrued Deposits
B. Time deposits
C. . Recurring Deposits
D. Demand Deposits
ANSWER: B
11. In which type of deposit, the high rate of interest is provided by the Bank?
A. Current Account
B. Recurring Deposit Account
C. Fixed Deposit Account
D. Savings Account
ANSWER: C

12. The rate of interest charged for the loan by the banker compared to overdraft and cash
credit is generally
A. High
B. Low
C. Same
D. Based on the amount
ANSWER: B

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