Goa Board Class 12 Question Paper 2025 Banking

2025 II 13 0930 Seat No.

Time : 3 Hours BANKING

Subject Code

H 4 6 0 1

Total No. Of Questions : 32 (Printed Pages : 8) Maximum Marks : 70

INSTRUCTIONS : (i) The question paper consists of 32 questions.
(ii) All questions are compulsory.
(iii) There is no overall choice for questions. However, there is
an internal choice for Question No. 32.
(iv) Marks for each question are indicated against it.
(v) Questions 1 to 13 are multiple choice questions. Every
question/incomplete statement has four choices and only one
of them is the correct answer. Choose the correct answer and
rewrite.
(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.
(viii) Questions 27 to 32 should be answered in about 100 words
each.
(ix) Use only blue ball point pen for answering on the answer-
book
1. Which of the following is an objective of the Balance Regulation Act of 1949 ? 1
To allow banks to carry on all forms of business
To facilitate inefficient administration of banks
To provide license to the banking companies operating in India.
To carry on banking business against the interest of the Indian depositor

H-4601 1 P.T.O.

2. The collection of interest and dividend on behalf of their customers is an example
of ............................. . 1

Primary function of banks

Agency function of banks

Investment function of banks

General utility service of banks

3. Under which schedule does the item ‘Legal charges’ appear in the Final Accounts
of a banking company operating in India ? 1

Other Income

Reserves and Surplus

Operating Expenses

Deposits

4. Which of the following is recorded in the schedule ‘Fixed Assets’ of the Balance
Sheet of a banking company operating in India ? 1

Premises

Share Premium Fund

Inter office adjustments

Cash in Hand

Import Trader

Buyer

Export Trader

Agent
H-4601 2

6. What is the full form of ‘EXIM Bank’ a financial institution in India ? 1

Export – Investment Bank of India

Expert – Institution Bank of India

Export – Institution Bank of India

Export – Import Bank of India

7. An exporter from Ludhiana has obtained a written confirmation from the Indian

Chamber of Commerce stating that the consignment kept ready for shipment

has been manufactured in his own country. Identify the document which provides

such a confirmation. 1

Bill of Lading

Consular Invoice

Certificate of Origin

Bill of Exchange

8. OOL Inc., an American export company requires an advance payment from the

importer to manufacture copper bottles. Identify the most suitable type of Letter

of Credit which will allow such an advance payment. 1

Transferable Letter of Credit

Red Clause Letter of Credit

Confirmed Letter of Credit

Back to back Letter of Credit

H-4601 3 P.T.O.

9. A consignment is subject to a number of risks while in transit to foreign countries.

In this context, identify the type of policy through which an exporter can claim

for his losses. 1

Life Insurance Policy

Health Insurance Policy

Accident Insurance Policy

Marine Insurance Policy

10. Which of the following activity is included under ‘Priority Sector Lending’ by

banks ? 1

Purchase of Gold Jewellery

Real Estate Development

Agriculture

Purchase of a car for personal use

11. SDD Co. Ltd. has applied for a loan at QS Bank Ltd. in order to purchase a

delivery van. Which method of creating a charge on securities will be suitable in

this case ? 1

Hypothecation

Assignment

Pledge

Mortgage

H-4601 4

12. Which of the following factors does a banker need to consider while verifying the

creditworthiness of a borrower ? 1

Character, Conditions, Credit

Character, Capacity, Capital

Character, Contributions, Conditions

Character, Capital, Circumstances

13. Which of the following is an investment scheme offered by the Indian Postal

Department ? 1

National Savings Certificate

New Saving Certificate

New Source Certificate

National Source Certificate

14. Why does the Banking Regulation Act of 1949 enforce upon banking companies

in India, the maintenance of sufficient ‘liquid assets’ ? (two points) 2

15. LEM Bank Ltd. has received an order from the High Court instructing it to close

its business of banking in India. What could be the possible reasons for the passing

of such an order ? (two points) 2

16. Provide details of the schedule ‘Deposits’ as appearing in the Final Accounts of a

Banking Company in India. 2

17. Provide details of the schedule ‘Interest Earned’, as appearing in the Final

Accounts of a Banking Company in India. 2

H-4601 5 P.T.O.

18. An exporter has submitted a ‘Bill of Exchange’ under a Letter of Credit

arrangement. As the manager in the Negotiating Bank, what aspects will you

consider while scrutinizing the said document ? (two points). 2

19. ‘Liquidity and Profitability are inversely related to each other’. Justify the

statement by giving two reasons. 2

20. ‘International Commercial Terms provide a common language for the exporter

and importer to understand one another for their business arrangements’. In

view of this, highlight the importance of each of the following : 3

– LOCO Price Quotation

– FAS Price Quotation

– Franco Price Quotation

21. ‘The Debtor–Creditor relationship between the banker and his customer differs

from the debtor–creditor relationship in ordinary commercial debts’. Explain

this statement by providing three suitable reasons. 3

22. With the help of suitable examples, explain three circumstances under which

the banker is permitted to disclose the details of his customers account. 3

23. ‘Mr. B has instructed his banker to provide specific information to Mr. I, a

businessman from Ponda, with whom he wishes to enter into a business deal’. In

context to this statement, mention any three duties of a banker while acting as a

referee. 3

24. Why do customers often consider Debit Cards to be advantageous as compared

to Credit Cards ? (three Points) 3

H-4601 6

25. ‘In order to overcome the risk of decrease in market value of securities covering
a loan, bankers maintain a certain percentage of margin’. With respect to this
statement, explain each of the following factors determining the margin to be
maintained on securities. 3

– Degree of saleability of securities

– Fluctuation in prices of securities

– Interest and other charges

26. A transport operator has approached NTR Bank Valpoi, for a loan of
Rs. 22,00,000/- to purchase a mini truck for business purpose. As the manager of
the Valpoi branch, what precautions will you take before sanctioning the loan ?
(three points) 3

27. What factors must a banking company consider while appointing a full-time
Chairman ? (four points) 4

28. Draft a neat specimen of the Balance Sheet of a Banking Company as required
under the Banking Regulation Act of 1949. 4

29. ‘International Trade opens new markets and provides goods and services to
nations, which are unavailable in their domestic economies’ ? In context to this,
explain four advantages of International Trade. 4

30. ‘WIN Bank Ltd. Usgao Branch, has received the following cheques for clearance’.
As a banker, will you honour the given cheques ? Justify your answer with
suitable reasons : 4

– The bank has received an order from the court attaching the accounts of
Miss A and at the same time the banker also receives a cheque of
Rs. 25,000/- issued by Miss A, for payment.

– Mr. D, a member of a Trust has issued a cheque in favour of a builder from
whom he has purchased a flat in his own name. The said cheque is drawn
against a trust account maintained by the bank.

H-4601 7 P.T.O.

32. A customer approaches you with a proposal for an advance against the following

securities :

– Shares of a public company (two points)

– Shares of a private company (two points)

As a Bank branch manager, which of the security will you accept and

why ? Also justify the reasons for not accepting the other security. 4

Or

M/s. SSS & Daughters have applied for a loan and are willing to submit the

following as collateral securities :

– Gold ornaments (two points)

– Goods & commodities (two points)

As a Bank branch manager, which of the security will you accept and

why ? Also justify the reasons for not accepting the other security.

H-4601 8