Banking & Finance - III (TYBCOM) || Question Bank

Banking & Finance - III  (TYBCOM) || Question Bank 

Cyber Crimes in Banking

Short Answer Questions

1. Why is it essential to ensure adequate cyber security measures to be kept in

place?

2. Define cyber theft.

3. What is cyber defamation?

4. What do you mean by Denial-of-Service (DoS) attacks?

5. What is a watering hole? How is it done?

6. What are the signs of virus in a computer system?

7. List the functions of computer viruses.

8. Write the life cycle of a computer virus.

9. What steps are taken if the system gets infected with the viruses?

10. List some of the methods used by fraudsters to commit ATM Skimming.

11. What are the reasons for cyber crime in banking?

12. How does updating the software help in preventing cyber crime?

Long Answer Questions

1. With the growing use of computers, cyber crime has become very predominant

in today’s world. Elaborate upon various types of cyber crimes that can be

encountered over the Internet.

2. Discuss the various types of cyber crimes committed in the banking sector.

3. Describe the steps which are required to control viruses.

4. Analyse the impact of cyber crime on banking.

5. The nature and mode of crime is such that they can be controlled both by non-

legal and legal measures, examine these measures.

Paying and Collecting Banker

Short Answer Questions

1. How does the date of a cheque affect the payment made through it?

2. State the dangers pointed out by Sheldon in honouring a post-dated cheque.

3. How does material alterations make a cheque void?

4. What protection is given to a paying banker in the case of payment of crossed

cheques?

5. What do you mean by payment in due course?

6. What protection is a banker given while collecting crossed cheques?

Long Answer Questions

1. Explain the aspects that must be satisfied before a cheque is to be honoured by

the bank.

2. Describe the conditions for honouring customers’ cheques.

3. Discuss the circumstances under which a banker is justified in refusing payment

of a cheque drawn on him.

4. ‘Under Section 128 of the Negotiable Instruments Act, protection is given to a

paying banker in the case of payment of crossed cheques.’ Explain.

5. Discuss the conditions which must be fulfilled by the paying banker in order to

constitute ‘payment in due course’.

6. Explain what happens when a paying banker pays money by mistake.

7. What roles does the collecting banker play while collecting payments on behalf

of its customer? Explain.

Banker and Customer Relationship

Short Answer Questions

1. State the categories of bank customers.

2. Define the term customer as per ‘Know Your Customer’ guidelines issued by

the Reserve Bank of India.

3. Write in brief about banker-customer relationship.

4. What do you mean by general relationship and special relationship between a

bank and its customer?

5. How is a bank’s position quite different from normal debtors?

6. Under what circumstances can a bank disclose information regarding its

customer’s account to a person(s)?

7. What is lien? State its types.

8. Mention the events in which the set off happens automatically, i.e., without the

permission from the customer.

9. State the conditions to be consideredwhile exercising right of set off.

10. Why should a banker stop operations on the accounts of the customer when he

is served with a garnishee order?

11. When does the relationship between a bank and a customer cease?

Long Answer Questions

1. Write an essay on general relationship between a bank and its customer.

2. What do you understand by the duty of a bank to maintain secrecy? Explain.

3. Describe disclosure under compulsion of law and banking practices.

4. Where are the funds not attached by a garnishee order? Explain with relevant

examples.

Bank Advances

Short Answer Questions

1. How the creditworthiness of a borrower is judged?

2. Can a loan be availed against any insurance policy?

3. What do you mean by liquidity?

4. Why an equitable mortgage is not desirable from the point of view of the banker?

5. What do you understand by ‘document of title to goods’?

6. Why it is advisable to get the bill of lading endorsed in blank?

7. Which necessary precautions the banker should take when accepting a life policy

as security?

8. What is ‘immovable property’

9. Section 58 of the Transfer of Property Act enumerates six kinds of mortgages,

what are these kinds of mortgages?

10. Write a short note on lien and hypothecation.

11. What is the important precaution that needs to be taken by a banker in case of

a pledge?

12. What do you understand by stamp duty?

13. What is the difference between pledge and mortgage?

14. What are various reconstruction measures allowed by the SARFAESI Act?

15. How the Loan recovery could be done through the non-legal route?

Long Answer Questions

1. Explain home loan and its types.

2. Discuss the perspective of activities for which loan is being provided by banks.

3. Explain different types of unsecured loans in detail.

4. Explain the various methods of granting advances.

5. Examine the various aspects of stock exchange securities as acceptable securities

while a banker is advancing money.

6. The law permits a pledge by a non-owner under certain circumstances. Enlist

these circumstances.

7. Explain the main contents of the letter of hypothecation.

8. Explain pledge in detail.

9. Write a detailed note on mortgage explaining its creation and classifications.

10. Analyse the loan recovery through the legal route. Describe some legal

establishment regarding this issue.