Reg. No. : ........................................

Code No. : 12657

Sub. Code : GMEC 62

B.A. (CBCS) DEGREE EXAMINATION, APRIL 2015.

Sixth Semester
Economics Main
BANKING THEORY AND PRACTICE
(For those who joined in July 2012 and afterwards)
Time : Three hours

Maximum : 75 marks

PART A (10 1 = 10 marks)

Answer ALL questions.
Choose the correct answer.
1.

J oP [Q Gx J
(A) \P | {
(B) \P \ {
(C) Czu Dmk {
(D)

Czu Dmk A_ {

A commercial bank is a

2.

(a)

social welfare business firm

(b)

social service firm

(c)

profit making business firm

(d)

profit making government firm

oP [QP Ph n Ax
GzuP o
(A) u o

(B) Csh o

(C) xno

(D)

The commercial bank is to make loans and

advances is a

3.

(a)

primary function

(b)

secondary function

(c)

subsidiary function

(d)

contingency function

AS [Q G[S Ax
(A) C[Qx
(B) AUP
(C) A
(D)

J[Qnu Tmhm]
Page 2

Code No. : 12657

The existence of unit banking system is in

4.

(a)

United kingdom

(b)

United states

(c)

United Arab Emirates

(d)

United federal system

\P |P vmh[PUS {vUS
[QP G A
(A) Aih [QP
(B) x Aih [QP
(C) \P [QP
(D)

Q [QP

Bank funds to finance various social

5.

(a)

development-oriented banking

(b)

priority sector lending

(c)

social banking

(d)

branch banking

Ph PP \mh Gx Cmhx
(A) 1851

(B) 1881

(C) 1991

(D)
Page 3

2002
Code No. : 12657

When was the negotiable instrument Act enacted?

6.

(a)

1851

(b)

1881

(c)

1991

(d)

2002

P\UP nzu [Q mk
u G A
(A) zv P\
(B) Bnh P\
(C) Pihmh P\
(D)

Pihhu P\

Cheques which can be collected only through a

banker is called as

7.

(a)

bearer cheque

(b)

order cheque

(c)

crossed cheque

(d)

uncrossed cheque

C J Cv n kv
x
(A) [Q

(B) Cv \ [Q

(C) Cv A_

(D)

{ A_P

Which one has the monopoly of note issue in India

(a)

Central Bank

(b)

Reserve Bank of India

(c)

Government of India

(d)

State Governments
Page 4

Code No. : 12657

8.

C J A] [QP \kQ
(A) [Q
(B) oP [QP
(C) EP [Q
(D)

mk {v{

Which one is acting as bankers to the government

9.

(a)

Central Bank

(b)

Commercial Banks

(c)

World Bank

(d)

International Monetary Fund

C
J
xPx
J[Skzx AvUPmhx

(A) u [Q (B) P] [Q
(C) A [Q (D)

Sv [Q

Which one has the protection and regulatory

approvals
(a)

internet banking

(b)

mobile banking

(c)

phone banking

(d)

local banking
Page 5

Code No. : 12657

10.

J {v Gx J
(A) u umk {v
(B) x umk {v
(C) A_ umk {v
(D)

mk umk {v

A hedge fund is a
(a)

private investment fund

(b)

public investment fund

(c)

government investment fund

(d)

foreign investment fund

PART B (5 5 = 25 marks)

Answer ALL questions, choosing either (a) or (b).

Answer should not exceed 250 words.
11.

(A) [Q ox
oP kzxP.

oP

Distinguish commercial banks

with Central Bank functions.

[Q

functions

Or

(B) [QP nzu UPnP.

Bring out the evolution of Banking.
Page 6

Code No. : 12657

12.

(A) AS [Q Q [Q
GxP.
Write about unit banking and Branch
banking.
Or

(B) P [Q |P mikP.
List out the merits of Mixed Banking.
13.

(A) oP [QP Ph US P
USP.
Explain the methods of credit creation of
Commercial Banks.
Or

(B) Ph Piuzv |P ?
What are the advantages of letter of Credit?
14.

(A) Ph Pmkmi |UP[P ?

What are the objectives of Credit Control?
Or

(B) Cv \ [Q oP USP.
Explain the functions of the Reserve Bank of
India.
Page 7

Code No. : 12657

15.

(A) q [Q GxP.
Write about the E-banking.
Or

(B) q
nmkh
|P mikP.

List out the benefits of electronic clearning

system.
PART C (5 8 = 40 marks)
Answer ALL questions, choosing either (a) or (b),
in about 600 words each.
16.

(A) oP [QP oP vP.

Critically

explain

the

functions

of

commercial banks.
Or

(B) J |mi a] oP [QP

[P .
Describe the role of commercial banks in the
development of a country.
Page 8

Code No. : 12657

17.

(A) umk [Q | wP
.
Describe the merits
investment banking.

and

demerits

of

Or

(B) Cv oP [QP
A P USP.

|h

Illustrate
the
current
structure
commercial banking in India.
18.

of

(A) P\P PP USP.

Explain the various types of cheques.
Or

(B) Ph ^mi |P mikP.

List out the advantages of bill of exchange.
19.

(A) [Q oP .
Describe the functions of central bank.
Or

(B) Ph Pmkkzx P USP.

Explain the methods of credit control.
Page 9

Code No. : 12657

20.

(A) | [Q oP .
Describe the functions of modern banking.
Or

(B) n Au P
USP.
Explain the various methods of transferring
funds.

Page 10

Code No. : 12657