1. Legal & Regulatory Aspects of Banking - JAIIB part-4

Welcome to your 1. Legal & Regulatory Aspects of Banking - JAIIB part-4

1.

Which of the following does not match:

a. A corresponding new bank established under Banking Companies (Acquisition and Transfer of Undertakings) Act 1970- State Bank

b. A principal coop bank in a distt.- Central Coop Bank

c. A coop society, the primary objective of which is to finance its members – coop credit society

d. Bank which promotes an RRB- sponsor bank

2.

Under provisions of SARFAESI Act, the security receipt evidences:

a. Undivided right or interest of the purchaser, in the security

b. Independent right or interest of the purchaser, in the security

c. Exclusive right or interest of the purchaser, in the security

d. Exclusive right or interest of the seller, in the security

3.

A bank has made payment across the counter, of a cheque issued as a crossed cheque and the holder claims damages from the bank. Under such circumstances, the bank is liable:

a. To the drawer of the cheque

b. To the true owner of the cheque i.e. holder

c. To the drawer and also the payee

d. All the above

4.

A bank makes payment of two cheques on which, later it is found that the signatures of the drawer are forged. The first account is that of a company and the 2nd account is a joint account in which signatures of one of the account holders are real.

a. Bank is liable for the first cheque and for the half amount in the 2nd case

b. Bank is liable for both the cheques

c. Bank is liable for the first cheque and not liable for the 2nd cheque

d. Bank is not liable for any of the cheque, if payment is in due courses

5.

Under FEMA, the term authorized person means:

a. Authorized dealers, money changers, all banks

b. Authorized dealers and all banks

c. Authorized dealers and money changers

d. All the above

6.

Banks can issue notice for enforcement of security interest under SARFAESI Act when:

a. There is default by borrower and security is in possession of the bank

b. The account is NPA and security is in possession of the bank

c. The account is suit filed and security is in possession of the bank

d. The account is suit filed and security is in possession of the borrower

7.

X appointed Y as his agent to operate his account and route business transactions through Y’s personal account also. Y misappropriated the proceeds of a cheque in the name of X but deposited by Y in his personal of a cheque in the name of X but deposited by Y in his personal account. X sends notice to the bank for negligence and conversion

a. Bank is liable for the conversion as Y has done something that bank should not have apparently

b. Bank is liable since it is a case of conversion

c. Bank is not liable because, X had given specific authority to Y to use his personal account also.

d. Bank is not liable because for agent’s action, the principal is liable.

8.

Which of the following is not correct with regard to a deferred payment guarantee:

a. Guarantee is issued normally for purchase of capital assets on long term credit from the supplier

b. Guarantee is issued in lieu of term loan and appraisal is also done like a term loan

c. Difference between TL and such guarantee is of outlay of funds

d. bank records such guarantees in the balance sheet under the TL in Schedule 9 of bank balance sheet

9.

Bank X gives a bank guarantee on behalf of one of its customers against some payment to be deposited by the customer in a pending court case. Such guarantee can be classified as (a) financial guarantee (b) performance guarantee (c) deferred payment guarantee (d) statutory guarantee

a. A or d

b. Only a

c. Only d

d. B or c

10.

As per FEMA 1999, the term foreign exchange does not include which of the following:

a. Amount payable in foreign currency

b. DD drawn in Indian currency but payable in foreign currency

c. DD drawn abroad but payable in Indian currency

d. None of the above

1. Legal & Regulatory Aspects of Banking – JAIIB part-4

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