Goa Board Class 12 Question Paper Mar 2019 Banking

2019 III 18 1000 Seat No.

Time : 2½ Hours BANKING
Subject Code

H 6 0 1

Total No. of Questions : 22 (Printed Pages : 5) Maximum Marks : 55

INSTRUCTIONS : (i) The question paper consists of 22 questions.

(ii) Marks for each question are indicated against it.

(iii) Answer each “Part” on a fresh page.

(iv) All questions are compulsory.

(v) Part-A are very short answer type questions.

Part-B questions should be answered in about 30 words

each.

Part-C questions should be answered in about 60 words

each.

Part-D questions should be answered in about 100 words

each.

(vi) There is no overall choice for the questions. However,

there is internal choice for Question No. 22.

PART-A

1. Name the authority that supervises the operations of Banking Companies in
India. 1

2. What is the minimum percentage of profits that need to be transferred to the

Reserve Fund by Banking Companies at the end of the financial year ? 1

3. Which Right of the Banker entitles him to retain and sell the property belonging
to the borrower for non-payment of advances ? 1

4. A Banker executes certain transactions as per the instructions given by his
customer. What are such instructions termed as ? 1

5. Name the type of shares bought by cautious investors who desire to earn a stable
and regular income on their investment. 1

PART-B

6. Draw a neat Pro forma of Profit and Loss Account of a Banking Company as
required under the Banking Regulation Act, 1949. 2

7. ‘A number of documents hold importance in the conduct of International Trade.’
In this context, highlight the factors the Banker needs to consider while
examining the correctness of the following documents with respect to a Letter of
Credit : 2

(a) Bill of Lading

(b) Marine Insurance Policy.

8. How does the Banker’s Right of General Lien differ from his Right of Set-off ? 2

9. ‘The Bankers obligation to honour his customer’s cheques is subject
to the fulfilment of certain conditions.’ Briefly explain any two of such
conditions. 2

10. Failure in maintaining sufficient margin while advancing money against
tangible securities may result in losses for the Bank. In this regard, which factors
are to be considered by the Banker while determining the Margin to be
maintained on advances ? 2

11. How do the Development Loans help in the growth of the Agricultural Sector of
the economy ? 2

PART-C

12. Provide details of the following schedules appearing in the Final Accounts of the

Banking Company : 3

(a) Borrowings

(b) Interest earned

(c) Cash and Balance with R.B.I.

13. Obtaining a license from the R.B.I. is mandatory for every Banking Company

operating in India. With reference to this statement, what aspects does the R.B.I.

consider before issuing a license to the concerned Bank. 3

14. Explain the following types of Letters of Credit used in the conduct of

International Trade : 3

(a) Documentary Letter of Credit

(b) Confirmed Letter of Credit

(c) Revocable Letter of Credit.

15. Distinguish between Debit Cards and Credit Cards. 3

16. ‘A Banker has to carefully assess the creditworthiness of the borrower before

lending funds.’ As a Banker, what factors will you consider while assessing the

eligibility of the borrower for a bank advance ? 3

17. Mr. Neol Fernandes, a B.C.A. graduate, approaches your Bank for a loan of

Rs. 3 lakhs, as he intends to start his own cyber cafe in the city of Vasco.

How would you, as the Bank Manager proceed to finance this business

proposal ? 3

PART-D

18. What provisions have been laid down under the Banking Regulation Act with

respect to the Winding Up of Banking Companies ? 4

19. ‘Though Foreign Trade helps in nation building, yet it poses certain

challenges.’ Justify this statement by bringing out any four points. 4

20. Bright Lights Ltd., intends to export electrical products to Sweden. With

reference to the statement, highlight the importance of the following export

documents : 4

(a) Packing List

(b) Commercial Invoice

(c) Certificate of Origin

(d) Consular Invoice.

21. Identify the nature of relationship between the Banker and his Customer in the

following situations and state one precaution to be taken by the Banker in each

situation : 4

(a) Mr. Aaron Rodrigues opens a Saving Bank Deposit Account.

(b) Ms. Viciya Vaz has deposited her gold ornaments with the Bank for safe-

keeping.

(c) Mr. Yanni Goes have instructed the Bank to collect dividend on his

behalf.

(d) Mr. Shiva Patil instructs his Banker to use the funds deposited in his

account for the purpose of funding a scholarship for needy students.

22. Ms. Kanak Indoria wants to expand her business of Interior Designing, and

therefore, has approached your Bank for a Loan and is willing to offer the following

as a security : 4

* Stock of Goods

* Debentures

As a Banker, which of the security will you accept and why ? Also highlight the

reasons for not approving the other security.

Or

Assess the suitability of the following as Securities offered by a customer to obtain

a Bank Loan : 4

* Life Insurance Policy

* Land and Building.