Alagappa University Model Question Paper www.alagappauniversity.ac.in : MBM Distance Education
Document Described : Alagappa University
DISTANCE EDUCATION
M.B.M. DEGREE EXAMINATION, MAY 2011.
BANKING LAW AND PRACTICE
(Old and revised w.e.f. 1999)
Time : Three hours Maximum : 100 marks
PART A — (5 ? 8 = 40 marks)
Answer any FIVE questions.
1.What factors are to be considered in credit appraisal?
2.Write a note on chain banking system.
3.Write notes on law of limitation.
4.What are the main features of a fixed deposit?
5.What is a promissory note? What are its essential elements?
6.What do you mean by ‘crossing’ on a cheque?
7.Distinguish between ‘Holder’ and ‘Holder in due course’.
8.Examine the advisability of a banker accepting Gold ornaments as a security.
PART B — (4 ? 15 = 60 marks)
Answer any FOUR questions.
9.Discuss the general principles which govern secured advances and indicate the risks of making loans against documents of title to goods.
10.Explain the safeguards observed by a banker in his dealings on account of lunatics, drunkards and insolvents.
11.Narrate the important functions of a modern commercial bank.
12.Define a cheque and explain its features.
13.Discuss the duties and responsibilities of a collecting banker with regard to the collection of cheques for his customer and a stranger.
14.Describe the circumstances under which a banker can close the account of his customer.