When a customer deposits cheque to a bank, the bank is a(n) A. Drawer B. Agent C. Principal D. Drawee E. Bailee

When a customer deposits cheque to a bank, the bank is a(n) A. Drawer B. Agent C. Principal D. Drawee E. Bailee
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B. Agent Explanation: When a customer deposits cheque to a bank then that particular bank acts as an agent for the customer. Collection occurs when the drawee bank (the bank ordered by the cheques to make payment) takes funds from the account of the drawer (its customer who has written the cheque) and presents it to the collecting bank.
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Notice of dishonour must be given A. To the drawer and drawee only B. To the drawer, acceptor and endorser(s) only C. To all the parties liable on the instrument or to their duly authorized agent D. To all the parties who are secondarily liable on the instrument or to their duly authorized agent

Description : Notice of dishonour must be given A. To the drawer and drawee only B. To the drawer, acceptor and endorser(s) only C. To all the parties liable on the instrument or to their duly ... agent D. To all the parties who are secondarily liable on the instrument or to their duly authorized agent

Last Answer : D. To all the parties who are secondarily liable on the instrument or to their duly authorized agent

_______ is a cheque that is not crossed on the left corner and payable at the counter of the drawee bank on presentation of the cheque. A. Crossed Cheque B. Open Cheque C. General Crossing D. Restrictive Crossing E. None of the Above

Description : _______ is a cheque that is not crossed on the left corner and payable at the counter of the drawee bank on presentation of the cheque. A. Crossed Cheque B. Open Cheque C. General Crossing D. Restrictive Crossing E. None of the Above

Last Answer : B. Open Cheque Explanation: An open cheque is a cheque that is not crossed on the left corner and payable at the counter of the drawee bank on presentation of the cheque.

With reference to a cheque which of the following is the „drawee bank‟ ? A. The bank that collects the cheque B. The payee‘s bank C. The endorser‘s bank D. The bank upon which the cheque is drawn

Description : With reference to a cheque which of the following is the „drawee bank‟ ? A. The bank that collects the cheque B. The payee‘s bank C. The endorser‘s bank D. The bank upon which the cheque is drawn

Last Answer : D. The bank upon which the cheque is drawn Explanation: Drawee is a legal and banking term used to describe the party that has been directed by the depositor to pay a certain sum of money to the person presenting the check or draft. A typical example is if you are cashing a paycheck.

A minor cannot be a______________ of the instrument A. Drawer B. Drawee C. Payee D. Acceptor

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Last Answer : C. Payee

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Description : Who has the primary responsibility in agency? a. Principal b. Agent c. Bailor d. Bailee

Last Answer : a. Principal

Which of the following cheque issued by a customer under a pre-approved arrangement with the bank? A. Travellers cheque B. Multi-city Cheque C. Mutilated Cheque D. Crossed Cheque

Description : Which of the following cheque issued by a customer under a pre-approved arrangement with the bank? A. Travellers cheque B. Multi-city Cheque C. Mutilated Cheque D. Crossed Cheque

Last Answer : B. Multi-city Cheque Explanation: A Multi-City Cheque (MCC) is one that can be written by the customer in favour of his client and is payable at par at all branches of the Bank. These are issued as Order Cheque.

Who among the following cannot cross a cheque? A. Drawer B. Holder C. Banker D. Foreigner.

Description : Who among the following cannot cross a cheque? A. Drawer B. Holder C. Banker D. Foreigner.

Last Answer : B. Holder

The person delivering the goods for achieving some purpose and returned the same after completion is called a) Bailee b) Pledgee c) Bailor d) Agent

Description : The person delivering the goods for achieving some purpose and returned the same after completion is called a) Bailee b) Pledgee c) Bailor d) Agent

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Description : On a Cheque instead of two parallel lines only bank‟s name is written is known as _________ A. Payable to bearer B. General Crossing C. Special Crossing D. Both (B) and (C) E. None of the Above

Last Answer : C. Special Crossing Explanation: When a particular bank s name is written in between the two parallel lines the cheque is said to be specially crossed.The effect of special crossing is that ... is written in the crossing. Specially crossed cheques are more safe than a generally crossed cheques.

If a draft is made to bearer, payment should be made to _____. A. a bank B. drawer C. acceptor D. anyone who presents the draft E. all of the above

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Last Answer : D. anyone who presents the draft

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Last Answer : C. Drawer Explanation: Alterations, if any, on cheques are required to be authenticated by the drawer‘s signature against each such alteration.

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Last Answer : B. 48 hrs

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Last Answer : A. Mis-selling Explanation: The act of selling something that is not suitable for the person who buys it.

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Last Answer : D. Rs.1,00,000 Explanation: The deposits kept in different branches of a bank are aggregated for the purpose of insurance cover and a maximum amount upto Rupees one lakh is paid.

A non performing Asset in Banking Business means ________ A. A fixed asset of Bank is not been utilized B. A portion of deposits not been utilized C. A loan asset on which interest and/or instalments remain unchanged. D. All of the Above E. None of the Above

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A bailment in which only the person who borrows and article gets the benefits is known as: a) Bailment for the sole benefits of the bailee b) Bailment for the sole benefits of the bailor c) Mutual benefit bailment d) Constructive bailment

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In general all of the following are requirement for a bailment; except that the: a) Bailor must be in possession of goods b) Bailee must intent to possess goods c) Bailee must return identical goods d) Actual ownership of goods is necessary

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