Banker and Customer Relationship Quiz

A banker is a person or institution that accepts deposits from the public, makes loans, and provides other financial services. They act as a financial intermediary, managing funds, offering investment advice, and facilitating various types of transactions.

A dealer in debts or credit

An individual or entity that holds an account with a bank and engages with the bank for financial services, including depositing money, withdrawing funds, taking loans, or seeking investment advice.

<p>True</p> Signup and view all the answers

<p>Retail Customer</p> Signup and view all the answers

<p>When a customer deposits money in a bank, the bank becomes a debtor to the customer, as they owe the deposited amount.</p> Signup and view all the answers

<p>When a customer takes a loan from the bank, they become a debtor to the bank, obligated to repay the loan along with interest.</p> Signup and view all the answers

<p>A customer who pledges movable assets like shares or gold as collateral for a loan, and the bank acts as the pledgee.</p> Signup and view all the answers

<p>When the bank provides access to a safe deposit locker to the customer, the bank acts as the licensor/lessor.</p> Signup and view all the answers

<p>In certain cases, the bank may act as a trustee, holding assets like bonds or securities in trust for the customer.</p> Signup and view all the answers

<p>The customer is the actual beneficiary of the trust, having the legal right to the assets and income managed by the bank.</p> Signup and view all the answers

<p>When a customer entrusts physical goods or securities to the bank for safekeeping.</p> Signup and view all the answers

<p>The customer is the bailor, as they hand over possession of goods or securities to the bank expecting their safe return.</p> Signup and view all the answers

<p>In wealth management, financial planning, or investment banking.</p> Signup and view all the answers

<p>The bank acts as an agent on behalf of the customer to perform various services including bill payments, fund transfers, or buying and selling of securities.</p> Signup and view all the answers

<p>The customer is the principal, directing the bank (agent) to perform specific tasks on their behalf.</p> Signup and view all the answers

<p>A bank becomes the pawnee when a customer pawns movable property as security for a loan, holding the property until the loan is repaid.</p> Signup and view all the answers

<p>When a customer mortgages immovable property like a house to the bank for a loan, the bank becomes the mortgagee.</p> Signup and view all the answers

<p>The customer in this case who offers the immovable property as security is the mortgagor.</p> Signup and view all the answers

<p>Banks act as a trader when they offer various products and services like loans, deposits, or insurance for sale.</p> Signup and view all the answers

<p>The customer is the consumer, purchasing or availing of the bank's services or products.</p> Signup and view all the answers

<p>True</p> Signup and view all the answers

<p>True</p> Signup and view all the answers

<p>It can damage the customer's reputation and the bank may be liable for damages.</p> Signup and view all the answers

<p>A bank's right to retain a customer's goods, securities, or assets in their possession until a debt owed by the customer is paid.</p> Signup and view all the answers

<p>The right to retain specific goods in the bank's possession for a particular debt or obligation.</p> Signup and view all the answers

<p>False</p> Signup and view all the answers

<p>The bank must protect information related to the account balance, transactions, and personal details of the customer.</p> Signup and view all the answers

<p>Disclosure with Customer's Consent</p> Signup and view all the answers

<p>The right of the bank to combine the balances of multiple accounts held by the customer to offset a debit balance in one account with a credit balance in another.</p> Signup and view all the answers

<p>False</p> Signup and view all the answers

<p>To recover outstanding debts by balancing the customer's credit and debit positions across multiple accounts.</p> Signup and view all the answers

<p>The bank's right to adjust mutual debts with the customer, using funds from a customer's account to set off a debt owed to the bank.</p> Signup and view all the answers

<p>False</p> Signup and view all the answers

<p>The bank must provide regular account statements detailing all transactions, debits, credits, and account balance.</p> Signup and view all the answers

<p>It helps the customer keep track of their financial activities, ensures transparency, and gives the customer an opportunity to verify transactions and raise disputes.</p> Signup and view all the answers

<p>Handling the customer's financial affairs with reasonable care and skill, meeting industry standards.</p> Signup and view all the answers

<p>Processing transactions accurately, safeguarding deposits, and ensuring competent financial advice or investment services.</p> Signup and view all the answers

<p>The bank has the right to charge interest on loans and fees for various services, such as ATM withdrawals, overdraft protection, or account maintenance.</p> Signup and view all the answers

<p>True</p> Signup and view all the answers

<p>The right to combine accounts, exercise a lien, set-off debts, and charge interest or fees.</p> Signup and view all the answers

<p>Trust accounts, safe custody items, and deposits for a specific purpose.</p> Signup and view all the answers

<p>False</p> Signup and view all the answers

<p>The right to charge compound interest on loans, commission for services provided, and fees for managing accounts or other services.</p> Signup and view all the answers

<p>False</p> Signup and view all the answers

<p>Any individual or entity that engages in transactions or uses financial services provided by a bank.</p> Signup and view all the answers

<p>An account holder has an account with the bank and owns or operates it, while a customer may engage in other financial transactions like taking a loan but may not have an account.</p> Signup and view all the answers

<p>An individual who wants to earn interest on deposited funds uses a savings account.</p> Signup and view all the answers

<p>An individual who needs a checking account for day-to-day transactions and payments uses it.</p> Signup and view all the answers

<p>An individual who places a lump sum in a fixed deposit account for a specified term to earn a higher rate of interest.</p> Signup and view all the answers

<p>Managing account balances, paying overdraft fees, and complying with account terms.</p> Signup and view all the answers

<p>In JTWROS, upon the death of one account holder, the surviving account holders automatically inherit the deceased's share, while in tenants in common, the deceased's share is distributed according to their will or legal heirs.</p> Signup and view all the answers

<p>Businesses use a business checking account for day-to-day financial operations and transactions.</p> Signup and view all the answers

<p>Businesses use business savings accounts for saving business funds and earning interest.</p> Signup and view all the answers

<p>Businesses use corporate fixed deposits for placing business funds in a fixed deposit account, earning interest over a specified term.</p> Signup and view all the answers

<p>An account held by a bank in the name of a trust, where the trust owns the account and the trustee manages it.</p> Signup and view all the answers

<p>The trust can be altered or revoked by the grantor.</p> Signup and view all the answers

<p>An account held by an adult (custodian) on behalf of a minor (beneficiary).</p> Signup and view all the answers

<p>Allows transfers of property to minors without the need for a formal trust.</p> Signup and view all the answers

<p>Similar to UTMA, but typically limited to gifts of securities or cash.</p> Signup and view all the answers

<p>The custodian manages the account and makes decisions in the best interest of the minor.</p> Signup and view all the answers

<p>A non-resident account holder operates their account in a bank located in a country where they are not a resident.</p> Signup and view all the answers

<p>An account for Indian citizens residing abroad to deposit foreign earnings in India.</p> Signup and view all the answers

<p>An account for managing income earned in India by non-resident Indians.</p> Signup and view all the answers

<p>An account where the primary account holder appoints a nominee to inherit the account in case of the primary holder's death.</p> Signup and view all the answers

<p>A minor typically needs to be at least 10 years old, require documents like the minor's and guardian's ID and proof of address, and the guardian operates the account until the minor reaches the age of majority.</p> Signup and view all the answers

<p>Two or more individuals can open a joint account, requiring documents including ID and address for each account holder, and transactions usually require the signatures or approvals of all account holders.</p> Signup and view all the answers

<p>Any legal partnership firm can open a bank account, requiring documents like the partnership deed, ID and address of partners, and transactions may be authorized as per the partnership deed or mandate.</p> Signup and view all the answers

<p>Public and private companies can open accounts, requiring documents like the certificate of incorporation, memorandum and articles of association, board resolution authorizing the account with signatories, and transactions are conducted based on the board resolution and company's policies.</p> Signup and view all the answers

<p>Clubs, societies, and associations can open accounts, requiring documents like registration certificate, proof of existence, resolution from the governing body, and transactions must follow the resolution or governing rules.</p> Signup and view all the answers

<p>Non-resident accounts are for Indians residing outside India, requiring documents like proof of NRI status, overseas address, and transactions must adhere to foreign exchange regulations and reporting requirements.</p> Signup and view all the answers