Customer and banker relationship

Mock test

Q) What kind of relationship exists between a banker and a customer?

a) Fiduciary One
b) Adversarial
c) Competitive
d) Collaborative

Answer: Fiduciary One

Q) What is the supreme responsibility of banks concerning their customers?

a) Making a profit at all costs

b) Ignoring customer requests for assistance
c) Disclosing customer information publicly
d) Protecting customers deposit and secrecy

Answer: Protecting customers deposit and secrecy

Q) What is the fundamental relationship between a banker and a customer?

a) Seller and buyer

b) Employer and employee
c) Debtor and creditor
d) Landlord and tenant

Answer: Debtor and creditor

Q) What is the role of a banker when he collects cheques or pays premiums on behalf of his customers?

a) Debtor
b) Creditor
c) Investor
d) Agent

Answer: Agent
Q) Under what circumstances does a banker become a trustee?

a) When money is deposited for a specific purpose

b) When opening a bank account
c) When customer checks their account balance
d) When applying for a loan

Answer: When money is deposited for a specific purpose

Q) According to section 148 of contract act, what is a 'bailment'?

a) Purchase of goods from one person to another for no purpose

b) Delivery of goods by one person to another for some purpose
c) Theft of goods by one person from another
d) Sale of goods from one person to another

Answer: Delivery of goods by one person to another for some purpose

Q) Under which section of the Negotiable Instrument Act, 1881, does the statutory obligation of the
banker to honour its customers' cheques arise?

a) Section 33
b) Section 31
c) Section 30
d) Section 32

Answer: Section 31

Q) What is one of the principal duties of a banker?

a) Publicly disclosing customer financial transactions

b) Sharing customer account information with third parties
c) Submitting customer account details to the government
d) Maintaining complete secrecy of the status of its customer's account

Answer: Maintaining complete secrecy of the status of its customer's account

Q) In what circumstances can a bank be required to disclose information about a customer's account?

a) At the discretion of the bank

b) In case of a internal audit
c) When the customer requests it
d) By order of the court
Answer: By order of the court

Q) Under which act can the income tax authorities order disclosure of information?

a) Bank Companies Act, 1991

b) Income Tax Ordinance, 1984
c) Companies Act, 1994
d) Foreign Exchange Regulations Act, 1947

Answer: Income Tax Ordinance, 1984

Q) Under which act are banking companies dealing in foreign exchange business designated as ADs in
foreign exchange?

a) HIPAA
b) Sarbanes-Oxley Act
c) FERA
d) PATRIOT Act

Answer: FERA

Q) What is a banker's lien?

a) The fee charged by a bank for processing a loan

b) A form of customer protection law
c) The right of the banker to retain and sell goods and securities entrusted to them by the
customer, with reasonable notice
d) An option given to customers to waive certain fees and charges

Answer: The right of the banker to retain and sell goods and securities entrusted to them by the
customer, with reasonable notice

Q) Within how many months should a cheque be presented to the bank in order for it to be valid?

a) 9
b) 6
c) 12
d) 3

Answer: 6

Q) What must a banker do before honoring a cheque?

a) Ensure there is no legal bar or garnishee order to draw the amount from his bank account
 b) Allow customers to draw cheques before their instruments are deposited and collected
c) Give credit to funds before cheque can be drawn against them
d) Properly record debiting of funds after honoring the cheque

Answer: Ensure there is no legal bar or garnishee order to draw the amount from his bank account

Q) Who is referred to as the Garnishee in a Garnishee Order?

a) a court-appointed officer
b) the creditor who issued the order
c) the judgement debtor (the customer)
d) the debtor of the judgement debtor (the banker)

Answer: the debtor of the judgement debtor (the banker)

Q) Which of the following is not applicable to money held abroad by the Judgement Debtor?

a) Head Office Notice

b) Garnishee Order
c) Joint Account Restraint
d) Safe Custody Protection

Answer: Garnishee Order

Q) What are the two types of Garnishee Orders issued by the court?

a) Order Creative or Innovative Order and Order Traditional or Conventional Order

b) Order Nisi or Preliminary Order and Order Absolute or Final Order
c) Order Endless or Continuing Order and Order Limited or Temporary Order
d) Order Premiere or Primary Order and Order Ultimate or Lasting Order

Answer: Order Nisi or Preliminary Order and Order Absolute or Final Order

Q) What is the obligation of a banker for wrongful dishonor?

a) To seek legal action against the drawer

b) To compensate the drawer for loss or damage
c) To charge the customer an additional fee
d) To deny responsibility and offer no compensation

Answer: To compensate the drawer for loss or damage

Q) Who can bring an action against the bank for the wrongful dishonour of a cheque?

a) Any external party

b) The customer/drawer
c) The bank's employees
d) The bank's shareholders
Answer: The customer/drawer

Q) What are the rules that Banks must follow to inform their customers about their transactions and
account closings?

a) Disclose only Charges and Consequences of premature termination

b) Disclose only Interest Rates and Frequency of Payments
c) None of the Above
d) Disclose Current Interest Rates, Charges and Consequences of premature termination, Fixed or
Variable Interest Rates, Frequency of payments, Method used to calculate interest

Answer: Disclose Current Interest Rates, Charges and Consequences of premature termination, Fixed or
Variable Interest Rates, Frequency of payments, Method used to calculate interest

Q) What important information should Banks/FIs disclose to their customers?

a) Latest interest rates on savings account

b) All charges and fees levied for the services rendered
c) Exchange rates of foreign currency
d) Brand value and reputation

Answer: All charges and fees levied for the services rendered

Q) What should Banks/FIs do before a person acts as a guarantor?

a) Charge additional fees for not being a guarantor

b) Do nothing
c) Request their ID proof
d) Advise the person in writing of the quantum and nature of their potential liabilities and to seek
independent legal advice

Answer: Advise the person in writing of the quantum and nature of their potential liabilities and to seek
independent legal advice

Q) What is the meaning of 'lien'?

a) The right to refuse to lend money

b) The right to sell off goods in possession to recover a debt
c) The right to retain possession of goods until a debt is discharged
d) The right to demand immediate payment of debt

Answer: The right to retain possession of goods until a debt is discharged

Q) Under what conditions can the right of lien be exercised according to the given text?

a) When the work is not completed in time and payment is due

 b) When the work is not completed in time and payment is not due
c) When the work is completed in time but payment is not due
d) When the work is completed in time and payment is due

Answer: When the work is completed in time and payment is due

Q) As per the Contract Act, which of the following can exercise the right of a general lien?

Acupuncturists
Hairdressers
Bankers, factors, wharfingers, attorneys of High Courts, and policy brokers
Retail shop owners

Answer: Bankers, factors, wharfingers, attorneys of High Courts, and policy brokers

Q) In which account does the account holder have an overdraft?

Fixed deposit account

Savings account
Recurring deposit account
Current account

Answer: Current account

Q) Which of the following types of entrustment exempts the amount realized from the right of general
lien?

Conditional entrustment
Implied entrustment
Entrustment for a specific purpose
Entrustment for other purposes

Answer: Entrustment for a specific purpose

Q) In which case can a banker exercise his right of lien on bills or cheques sent for collection or dividend
warrants, etc?

When the shares are sold at or above a certain price.

No specific purpose is mentioned by the customer
When shares are entrusted for a specific purpose
When the security comes into the possession of the banker in the ordinary course of business

Answer: No specific purpose is mentioned by the customer

Q) In which case can the banker not exercise his right of lien over securities?

lodged with banker for a loan before granting

left with the banker negligently
all of the above
held in trust

Answer: left with the banker negligently

Q) Who has the right to exercise the right of set-off before the Garnishee order is made effective?

The court
The banker
The judgment creditor
The customer

Answer: The banker

Q) What is the general rule regarding the right of appropriation?

The creditor has the first choice and can appropriate the payment to any debt he/she likes
The debtor cannot appropriate the payment to any debt he/she likes
The debtor has the first choice and can appropriate the payment to any debt he/she likes
There is no general rule regarding the right of appropriation

Answer: The debtor has the first choice and can appropriate the payment to any debt he/she likes

Q) According to the given context, what is the duty of the customer towards the bank while drawing
cheques?

To credit additional amount

Ask for higher interest rate
Not to withdraw cash
Duty of reasonable care

Answer: Duty of reasonable care

Q) What is the customer's duty when drawing cheques?

To write cheques even without sufficient funds

To exercise reasonable care to prevent fraud or forgery
To draw cheques in a way that facilitates alteration of amount
To request the bank to draw the cheque for them

Answer: To exercise reasonable care to prevent fraud or forgery

Q) What can happen if a customer draws a cheque for the insufficiency of funds in the account?

It can lead to dishonor and be considered a criminal offense

The customer will be charged a small fee
The bank will cover the funds for the customer
The customer will receive a warning letter
Answer: It can lead to dishonor and be considered a criminal offense

Q) What is the implied expectation of a customer who opens a bank account?

To pay reasonable interest and charges

To get access to unlimited credit
To never notify about any forged activities
To receive free banking services

Answer: To pay reasonable interest and charges

Q) What is considered a priority objective of a bank?

profitability
number of branches
customer service
sustainability

Answer: customer service

Q) What is the name of the cell at the head office level responsible for customer service and complaint
management?

Central Customer Service & Complaints Management Cell (CCS & CMC)
Financial Planning Group
Marketing Unit
IT department

Answer: Central Customer Service & Complaints Management Cell (CCS & CMC)

Q) What is the key to progress according to the given context?

Adopting groundbreaking technology

Making more profit
Giving better service
Offering more products

Answer: Giving better service

Q) Why is customer service important for banks?

To attract new customers

To increase employee satisfaction
To produce new products
To retain customers
Answer: To retain customers

Q) Which of the following is NOT an effective customer service trait?

Good behavior
Pleasant attitude
Clear Communication
Rudeness

Answer: Rudeness

Q) What is the importance of customers in the banking business?

They are essential for survival and success.

They are only useful for short-term gains.
They are a burden to the business.
They are irrelevant to the success of the business.

Answer: They are essential for survival and success.

Q) What risk do criminals entering banks as customers pose to the banks?

Systematic credit risk

Money laundering and terrorist financing risk
Market risk
Inflation risk

Answer: Money laundering and terrorist financing risk

Q) What type of customers will a bank accept?

Customers whose identity is established by conducting due diligence appropriate to the risk profile.
Customers of unknown identity
All customers without exception.
Customers with fictitious or imaginary names

Answer: Customers whose identity is established by conducting due diligence appropriate to the risk
profile.

Q) What are the basic requirements for account opening?

Linked accounts
Country of origin
Identification and verification of the customer's identity using reliable, independent source documents,
data or information
Customer's business activities
Answer: Identification and verification of the customer's identity using reliable, independent source
documents, data or information

Q) In what situation should a bank branch consider a customer as suspicious?

When they live in a high-profile position

Unable to identify the customer and verify their identity using reliable, independent source documents,
data or information
When they have public business activities
When they have multiple linked accounts

Answer: Unable to identify the customer and verify their identity using reliable, independent source
documents, data or information

Q) What should a bank do before entering into a business relationship with a customer?

Charge no fees
Provide customer services immediately
Lower its interest rates
Apply due diligence procedures

Answer: Apply due diligence procedures

Q) What makes up a big portion of bank revenue in addition to their interest income?

Loan interest rates

Customer deposits
Bank charges
Stock investments

Answer: Bank charges

Q) Which department issues the Schedule of Charges for banks in Bangladesh?

Banking Regulation and Policy Department (BRPD)

International Monetary Fund (IMF)
Ministry of Finance
Bangladesh Bank Audit Department

Answer: Banking Regulation and Policy Department (BRPD)

Q) Why do some banks charge account closure fees?

To cover any potential loss

As a penalty for breaking bank policies
To earn more profits
Because of minimum account duration requirements
Answer: Because of minimum account duration requirements

Q) What does VAT stand for when mentioned in the context of financial services provided by Banks?

Value Added Tax

Virtual Assets Tax
Venture Asset Tax
Variable Account Tax

Answer: Value Added Tax

Q) What is the obligation of a bank as a financial service provider regarding charges and fees?

Collect a commission on only some of the services rendered

Provide inconsistent rates for fees to different customers
Have a disclosure of latest Schedule of Charges, Fee, Commission etc.
Staying Silent on all fees and charges to be levied

Answer: Have a disclosure of latest Schedule of Charges, Fee, Commission etc.

Q) What is a Banker's main job?

To give financial advice to clients

To teach yoga
To fix cars
To manage a restaurant

Answer: To give financial advice to clients

Q) According to Dr. Hart, what is a banker?

One who writes books about banking

One who designs logos for banks
One who repairs windows in banks
One who honors cheques drawn upon him by persons from and for whom he received money on
current accounts

Answer: One who honors cheques drawn upon him by persons from and for whom he received money
on current accounts

Q) What are the main functions of a company to be a banker?

Retail operations
Business of banking
Food processing
Telecommunication services
Answer: Business of banking

Q) What are the essential skills required to be a banker?

Technical knowledge in computer programming

Physical strength and agility
Interpersonal skills, creativity, and emotional intelligence
Good judgment, service orientation, coping well under stressful circumstances, organizational skills,
time management, and a strong work ethic

Answer: Good judgment, service orientation, coping well under stressful circumstances, organizational
skills, time management, and a strong work ethic

Q) According to Dr. Hart, who is a customer for a bank?

A person who walks into a bank once

One who has an account with a banker or for whom a banker habitually undertakes to act as such
Someone who has never interacted with the bank
A person who has only used online banking services

Answer: One who has an account with a banker or for whom a banker habitually undertakes to act as
such

Q) What is the requirement for an individual to be considered a customer for a bank?

Frequent personal meetings with the bank staff

Having a high credit score
Maintains an account with the bank and deals with it in its nature of regular banking business
Owning a business associated with the bank

Answer: Maintains an account with the bank and deals with it in its nature of regular banking business

Q) According to the provided context, who all can become a customer of a bank?

Only individual account holders

Only non-corporate entities
A firm, an organization, any corporate body, a club, society or associations, educational institutions and
any separate legal entity
Only those who are frequent visitors of the bank

Answer: A firm, an organization, any corporate body, a club, society or associations, educational
institutions and any separate legal entity

Q) What is the definition of a customer as per the provided context?

A person or entity that maintains an account and/or has a business relationship with the bank may be
called as a customer.
Anyone who visits a bank branch occasionally
A person who maintains an account with any other bank apart from the one being discussed
Anyone who receives money from the bank

Answer: A person or entity that maintains an account and/or has a business relationship with the bank
may be called as a customer.