DISTANCE EDUCATION
M.B.A. DEGREE EXAMINATION, MAY 2018.
Second Semester
BANKING LAW AND PRACTICE
(Upto 2012-2013 Academic Year and 2013 Calendar Year)
Time Three hours Maximum 100 marks
SECTION A — x 8 40 marks)
Answer any FIVE questions.
All questions carry equal marks.
1. What are the primary functions of a commercial bank?
2. Is a banker a privileged debtor?
3. What is letter of introduction? Why is it required at the
time of opening a new account?
4. What are the advantages of lending against goods as
securities?
5. What are the characteristics of an ideal security for a
banker?
6. Write the advantages of lending against a fixed deposit
receipt.
7. Who is holder-in-due course? Explain his rights.
8. Discuss the legal validity of entries made by banker in
the passbook.
Sub. Code
22
DE-3765
2
SP 5
SECTION B — × 15 60 marks)
Answer any FOUR questions.
9. Examine the role of commercial banks in the economic
development of a country.
10. Explain the general relationship between a banker and a
customer.
11. Explain the term fixed deposit and discuss its main
features.
12. Explain the features of different types of mortgages.
13. What are the precautions to be taken by a banker while
lending against stock exchange securities and life
insurance policies?
14. Enumerate the points which a banker must scrutinize
before passing a cheque for payment.
15. Discuss in detail, the statutory protection granted to a
paying banker under Sec. 85 of the Negotiable
Instruments Act.