Goa Board Class 12 Sample Paper 2024 Banking

Sample Paper
&
Question Paper Pattern
2023
2024

GOA BOARD

DESIGN OF THE FINAL EXAMINATION THEORY PAPER FOR THE
ACADEMIC YEAR 2023-24
Subject: BANKING (H4601)
Class: XII
Duration: 2 ½ hours Max. Marks: 70
____________________________________________________________________
The weightage/distribution of marks over different dimensions of the question paper
shall be as follows:
1) Weightage to Learning Outcomes

Sr. Learning Outcomes Marks Percentage
No.
1 Knowledge 21 30 %
2 Understanding 35 50 %
3 Application 14 20 %
TOTAL 70 Marks 100 %

2) Weightage to Difficulty Level of questions.
Sr. Estimated Difficulty Marks Percentage
No. Level
1 Easy 14 20 %
2 Average 42 60 %
3 Difficult 14 20 %
TOTAL 70 Marks 100 %
A question may vary in difficulty level from one individual to another. As such the
marking of the difficulty level in respect of each question will be made by the paper
setter on the basis of general anticipation from the group as a whole, taking the
examination into consideration. This provision is only to make the paper balanced in
weightage, rather than to determine the pattern of marking at any stage.
3) Weightage to Content/Subject Units
Sr. UNITS Topics Marks
No
1. Unit 1- Final Accounts of Banking Companies 10
2. Banking Regulation Act -1949 10
3. Unit 2 – Banks and International Trade 14
4. Unit 3 – Banker- Customer Relationship & Banker’s Rights 10

5. Ancillary Services 06
6. Unit 4- Loans & Advances 12
7. Priority Sector Advances 08
TOTAL 70

4) Weightage to forms of questions and expected time required to answer each
form of questions.
Sr. Form of questions Marks No. of Total Approx. Approximate
No for each questions Marks Time for time for each
question each question
question
1 Long Answer type ( LA) 04 06 24 8 mins. 56 mins.
2 Short Answer type ( SA-I) 03 07 21 6 mins. 42 mins.
3 Short Answer type ( SA-II) 02 06 12 5 mins. 30 mins.
4 Very Short Answer type 01 13 13 1 mins. 13 mins.
(VSA)
REVISION 09 mins.
TOTAL 32 70 150 mins.

5) Scheme of Option:
There will be no overall choice for the questions. However, there is internal choice for
question no. 32

MODEL QUESTION PAPER, FINAL EXAMINATION

To be implemented from the academic year 2023-2024 onwards

Time: 2 ½ hours FINAL EXAMINATION BANKING

Subject Code

H 4 6 0 1

Total No. of Questions: 32 Maximum marks: 70
-----------------------------------------------------------------------------------------------------
INSTRUCTIONS:
i. This question paper contains 32 questions.
ii. All questions are compulsory.
iii. Marks for each question are indicated against it.
iv. Questions, 1 to 9 are multiple choice questions. Every question/incomplete
statement has four choices A, B, C & D and only one of them is the correct
answer. Choose the correct answer and rewrite.
v. Questions, 10 to 13 are to be answered in one word or a phrase.
vi. Questions 14 to 19 should be answered in about 30 words each.
vii. Questions 20 to 26 should be answered in about 60 words each.
vii. Questions 27 to 32 should be answered in about 100 words each.
ix. There is no overall choice for questions. However, there is an internal choice for
Question No. 32
_________________________________________________________________________________________________________
1. The time period within which the accounts of Banking Companies 01
have to be submitted to the RBI from the closure of the financial year
is _____________.
A) 1 month
B) 2 months
C) 3 months
D) 4 months

2. What is the maximum CRR that can be prescribed for banking 01
companies in India?
A) 3% of the time and demand deposits
B) 25% of the time and demand deposits
C) 15% of the time and demand deposits
D) 40% of the time and demand deposits

3. Under which schedule does the item ‘Commission received’ appear in 01
the Final Accounts of the banking company?

A) Other income
B) Fixed assets
C) Interest earned
D) Other assets

4. Which of the following is recorded in the Profit & Loss Account of a 01
banking company?
A) Cash in hand and balance with RBI
B) Investments of the Bank
C) Advances of the Bank
D) Interest earned by the bank

5. Which of the following document will help the custom officials in 01
calculating the custom duty to be levied on the goods traded?
A) Health Certificate
B) Insurance Policy
C) Packing List
D) Consular Invoice

6. Identify the organization which aims to facilitate globalization to 01
Indian business.
A) RBI
B) EXIM Bank
C) Advising Bank
D) Negotiating Bank

7. Which of the following type of Letter of Credit is considered to be 01
risky for an exporter?
A) Revocable Letter of Credit
B) Irrevocable Letter of Credit
C) Fixed Letter of Credit
D) Red Clause Letter of Credit

8. Identify the type of Letter of Credit is issued by the issuing bank 01
without insisting that the bills drawn under the letter of credit
transaction be accompanied by relevant shipping documents.
A) Clean Letter of Credit
B) Irrevocable Letter of Credit
C) Documentary Letter of Credit
D) Red Clause Letter of Credit

9. Fall in the value of the Rupee against foreign currency may lead to 01
______________
A) depletion of natural resources
B) excessive outflow of the Nation’s foreign reserves
C) unhealthy competition between nations
D) excessive imports by the country

10. ‘Priority Sector’ lending guidelines will be applicable to which of the 01
following type of loans?
A) Personal Loans

B) Agricultural Loans
C) Loans to MNC’s
D) Unsecured Loans

11. Mr. ‘R’ has approached the Bank to finance the purchase of electric 01
bike for Rs. 1,50,000/- .Which method of creating charge will be
considered most suitable in case of the said security?
A) Assignment
B) Hypothecation
C) Mortgage
D) Pledge

12. Which of the following will a banker be reluctant to accept as a 01
security against a long term loan?
A) Shares of a public company
B) Debentures of a well-established company
C) Stock of goods
D) Real Estate

13. What is the legal position of the Banker when he accepts fixed deposit 01
receipt as a security?
A) Pledgee
B) Hypothecatee
C) Mortgagee
D) Assignee

14. ‘CRR & SLR’ are tools used by the RBI to control bank credit & 02
increase the safety of funds. Justify the given statement with two
reasons.

15. The Reserve Bank of India refused to grant license to a foreign origin 02
bank for commencing its business in India. With reference to the
statement bring out the reasons for such refusal. (2 points)

16. Provide details for the schedule ‘Interest Earned’, as appearing in the 02
Profit & Loss Account of a Banking Company.

17. Provide details for the schedule ‘Other Assets’, as appearing in the 02
Final Accounts of a Banking Company.

18. Explain any two advantages of International Trade. 02

19. Assessing the eligibility of the borrower for the advance is an essential 02
duty of the banker. With reference to the statement, highlight any two
factors affecting the creditworthiness of a borrower.

20. Explain the working of a revolving letter of credit with the help of a 03
suitable example.

21. How does the banker’s right of general lien differ from his right of set- 03

off? (3 points)

22. With the help of suitable examples explain three circumstances under 03
which a banker is permitted to disclose information of a customer’s
account.

23. Mr. Z your customer has given a standing instruction to collect 03
dividend on his investments. As a banker, what precautions will you
take while discharging your duty in this case? (3 points)

24. Why do people prefer appointing their banker as ‘Trustee’ of their 03
money/property rather than individuals? (3 points)

25. How does ‘Pledge’ differ from ‘Mortgage’ as a method of creating a 03
charge on securities for bank advances? (3 points)

26. The owner of a car rental outlet at Candolim, has approached your 03
branch for a loan to purchase an electric car for business purpose.
What aspects will you consider before disbursing the loan?

27. What provisions have been laid down under the Banking Regulation 04
Act, 1949 with respect to the management of banking companies in
India?

28. Draft a neat specimen of the Balance Sheet of a Banking Company as 04
required under the Banking Regulation Act of 1949.

29. An exporter has submitted the following documents under a Letter of 04
Credit arrangement:
a) Bill of Lading b) Marine Insurance Policy
As the manager in the Negotiating Bank, what aspects will you
consider while scrutinizing these documents?

30. A banker is often termed as a ‘dignified debtor’. Justify this statement 04
with four reasons.

31. Mr. SK who owns a small scale industry in the Tivim Industrial Estate 04
has approached you for a loan of Rs. 3 lakhs for the purchase of
equipment. As a bank manager, what aspects will you consider while
sanctioning the loan?

32. i) A customer approaches you with a proposal for an advance against 04
the following securities:
a) Stock of wheat grains b) Shares issued by Infosys
As a branch manager, which of the securities will you accept and why.
Or
ii) Discuss the comparative suitability of the following securities as

cover for a bank advances:
a) Land and Building b) Life Insurance Policies.

BLUE PRINT- FINAL EXAMINATION, XII COMMERCE, BANKING 2023- 2024
DURATION: 2 ½ HOUR MAX. MARKS: 70
Objectives Knowledge Understanding Application Total
Content VSA SA-I SA- LA VSA SA-I SA - LA VSA SA- SA LA
II II I -II
Banking 2(1) 1(4) 2(2) 10
Reg. Act
Final 2(1) 2(2) 1(4) 10
Acc.
Foreign 1(1) 1(2) 2(1) 1(3) 1(4) 2(1) 14
Trade
Banker- 2(3) 1(4) 10
customer
relations
Ancillary 2(3) 06
services
Loans & 1(1) 2(1) 1(2) 1(3) *1(4) 12
advances
Priority 1(1) 1(3) 1(4) 08
sect. adv.
Total 07 06 08 04 06 21 04 02 12 70
Marks
(Marks per question are shown in the brackets and number of questions is shown out of the
brackets)
*denotes choice in question.
Knowledge: 21 marks (30 %) Easy: = 14 marks (20 %)
Understanding: 35 marks (50 %) Average: 42 marks (60 %)
Application: 14 marks (20 %) Difficult: 14 marks (20 %)
Total: 70 marks (100 %) Total: 30 marks (100 %)

Blue Print- Model Question Paper Banking Final Examination 2023-2024
Q. Unit Knowledge Understanding Application Easy Average Difficult
No.
1. I-Banking 1 1
Reg. Act
2. I-Banking 1 1
Reg. Act
3. I-Final 1 1
Acc.
4. I-Final 1 1
Acc.
5. II- Foreign 1 1
Trade
6. II- Foreign 1 1
Trade
7. II- Foreign 1 1
Trade
8. II- Foreign 1 1
Trade
9. II- Foreign 1 1
Trade
10. IV- Priority 1 1
Sect. Adv.
11. IV- Loans & 1 1
Advances
12. IV- Loans & 1 1
Advances
13. IV- Loans & 1 1
Advances
14. I-Banking 2 2
Reg. Act
15. I-Banking 2 2
Reg. Act
16. I-Final 2 2
Acc.
17. I-Final 2 2
Acc.
18. II- Foreign 2 2
Trade
19. IV- Loans & 2 2
Advances
20. II- Foreign 3 3
Trade
21. III- Banker- 3 3
Cust. Rel.
22. III- Banker- 3 3
Cust. Rel.

23. III- Ancill. 3 3
Services
24. III- Ancill. 3 3
Services

25. IV- Loans & 3 3
Advances
26. IV- Priority 3 3
Sect. Adv.
27. I-Banking 4 4
Reg. Act
28. I-Final 4 4
Acc.
29. II- Foreign 4 4
Trade
30. III- Banker- 4 4
Cust. Rel.
31. IV- Priority 4 4
Sect. Adv.
32. IV- Loans & 4* 4
Advances
Total 21 (30%) 35 (50%) 14 (20%) 14(20%) 42(60%) 14(20%)
(*denotes choice in the question.)

BANKING SYLLABUS FOR STANDARD XII COMMERCE
UNIT I
A) FINAL ACCOUNTS OF BANKS AS REQUIRED BY THE BANKING
REGULATION ACT
1. Proforma of the Profit and Loss Account and details of all the schedules appearing therein
2. Proforma of the Balance Sheet and details of all the schedules appearing therein

B) BANKING REGULATION ACT
Some important sections of the Act relating to:
1. Objectives of passing the Act
2. Definition of banks
3. Functions of banks
4. Activities prohibited for banks
5. Various returns to be submitted by the banks to the RBI
6. Inspection by the RBI
7. Directives issued by the RBI
8. Licensing of banks
9. Capital Requirements
10. Opening of branches
11. Provisions regarding Cash Reserves, Liquidity Ratio
12. Management of banks
13. Winding Up of banks

UNIT II: INTERNATIONAL TRADE
A) Need for international trade, International division of labour, advantages and
disadvantages of international trade, comparison of domestic trade with international trade
B) Banks and foreign trade
1. Methods of payment used in international trade

2. Letters of Credit: Meaning, definition, types of LC, parties to LC, Procedure of opening
LC, importance of documents in LC transactions, negotiation of Bills under LC

3. Various shipping documents: Bills of Lading, Bills of Exchange, Commercial and
Consular Invoice, Certificate of Origin, Packing List, Health Certificate, Uniform Customs
and Practice for Documentary LC, International Commercial Terms
4. Issuing and encashment of traveler’s cheques, purchase and sale of foreign currency notes
and coins, currencies of various countries
5. Role of ECGC and EXIM Bank in financing international trade

UNIT III: GENERAL BANKING BUSINESS
A)
1. General relationship between banker and customer- debtor- creditor, agent- principal,
bailee- bailor, trustee-beneficiary relationship
2. Banker’s obligation to honour cheques
3. Garnishee Order- Meaning, Steps in the issue of a garnishee order
4. Banker’s obligation to maintain secrecy of customer’s accounts- exceptions to the rule of
secrecy
5. Banker’s Rights- Right of general lien, Right of set-off, Right of appropriation of accounts,
Right of charging compound interest and Right of charging commission
B) Ancillary services rendered by banks:
Executor, Administrator, Trustee, References given by banks, Standing instructions, Credit
cards, Debit cards, Buying and selling securities on behalf of customers.

UNIT IV: LOANS AND ADVANCES AND PRIORITY SECTOR ADVANCES
A) LOANS AND ADVANCES
1. Principles of good lending- safety, liquidity, profitability, security, spread, national
interest, liquidity v/s profitability of banks
2. Borrower study and status report- character, capacity, capital, personal interview of the
borrower
3. Secured Loans- Characteristics of good security
Margin- Meaning, Need, basis of charging margin
4. Methods of creating charge over securities- Lien, Pledge, Hypothecation, Mortgage and
Assignment (meaning, features and differences)

5. Various securities accepted by banks-

-Stock exchange securities: Government securities, Shares and debentures issued by joint
stock companies, others- NSC, KVP
-Land and building
-Life insurance policies
- Goods and commodities
- Documents of title to goods
- Fixed deposit receipts
- Gold
(Precautions to be taken by banks, advantages and disadvantages to the banker)

B) PRIORITY SECTOR LENDING TO:
1. Agriculture
2. Small Scale Industries
3. Transport operators
4. Self-employed/ educated unemployed
5. Small traders
(Precautions to be taken by bankers while lending, for prompt recovery of loans advanced to
these sectors)

BANKING SYLLABUS (PRACTICALS) FOR STANDARD XII COMMERCE
A) PROBLEMS
1. Disclosure to the police
2. Safe custody of articles- Power of attorney
3. Safe deposit locker- Death of the renter
4. Arrest of a customer
5. Advances against shares
6. Garnishee order
7. Set-off against the account of a partnership firm
8. Letter of credit
9. Remittance of funds- Telegraphic transfer
10. Limitation period
B) SPECIMENS OF
1. Demand Draft
2. Demand Promissory Note
3. Travelers cheque
C) APPLICATION FORM FOR
1. Travelers cheques
2. Loan against term deposits
3. Documentary credit
4. House loan
Reference books:
Banking Theory Law and Practice- B.S. Raman,
Banking Law and Practice- P.N. Varshney and H.C Agarval
Practical Problems on Commercial Banking- H.C Agarval

DISTRIBUTION OF UNITS AND MARKS AS PER THE EXAMINATIONS TO BE
HELD DURING THE ACADEMIC YEAR 2023- 2024
SUBJECT: BANKING (4601) STD: XII
I. FIRST FORMATIVE EXAMINATION
Duration: 1 hour Max. Marks: 20
Unit No. Name of the Unit Marks
Unit 1 A. Final accounts of banks 06
B. Banking Regulation Act, 1949 14
Total 20

II. SECOND FORMATIVE EXAMINATION
Duration: 1 hour Max. Marks: 20
Unit No. Name of the Unit Marks
Unit II International Trade 12
Unit IV Loans and Advances 08
Total 20

III. THIRD INOVATIVE TEST (As per GBSHSE Circular No. 39 dated 02/08/2021)
Max. Marks: 20
A. Any innovative form/forms of testing students may be used. Topics for testing to be assigned
from the syllabus only …….. 10 marks
B. Internal Practical……… 10 marks
Problems Garnishee order Any one problem
Set-off against the account of a partnership firm for 4 marks
Letter of credit
Remittance of funds- Telegraphic transfer
Limitation period
Specimens Demand Promissory Note Any one Specimen
Travelers Cheque for 2 marks

Application Loan against term deposits Any one Form for
forms Documentary credit 4 marks
SUGGESTED TOPICS FOR ASSIGNMENT:

1. Functions of banks
2. Recent directives issued by the RBI
3. Modern methods of payment used in international trade
4. Travelers Cheques
5. Loans and special schemes offered by banks to fund the priority sector

FINAL EXAMINATION (Max. Marks 70) (Time: 2 ½ Hours)
Unit No. Name of the Unit Marks
Unit I Final Accounts of Banks 10
Banking Regulation Act 10
Unit II International trade 14
Unit III Banker Customer Relationship 10
Ancillary Services rendered by banks 06
Unit IV Loans and Advances 12
Priority Sector Lending 08
Total 70

FINAL PRACTICAL EXAMINATION
Duration: 90 Minutes Max. Marks: 20
Q. No. Topic Marks
1 Problem 4
2 A. Specimen 3
B. Specimen 3
3 Problem 4
4 Application form 4
Journal 2
Total 20

Note:
The guidelines/ general instructions for the assessment of answer booklets of
candidates by the internal and external examiners together, will be as follows:

1. The External Examiner will assess Q.1 (1 problem) of 4 marks Q.2. A) and B)
(2 Specimens) of 3 marks each

2. The Internal Examiner will assess Q.3 (1 problem) of 4 marks and Q.4 (1
application form) of 4 marks each.
The internal examiner will also assign marks (Max 02 marks) for the certified journal.

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