Banking and Negotiable Instruments

What is mainly discussed in Chapter 5 of the manual?

Clearing and Collection of Instruments (correct)
Banker customer relationship
Various types of account operation
Negotiable Instruments

Which of the following is NOT discussed in Chapter 5 of the manual?

Clearing of Instruments
Banker customer relationship (correct)
Cash management
Collection of Instruments

What is discussed in Chapter 6 of the manual?

Negotiable Instruments
Clearing and Collection of Instruments
Bills Collection and Remittance (correct)
Cash and vault management

What is part of Cash management discussed in Chapter 5 of the manual?

Measures for safekeeping of cash (B) Signup and view all the answers

What is NOT a topic discussed in the manual?

Economics (D) Signup and view all the answers

What is the primary characteristic of a negotiable instrument?

It is a transferable document that can be used for settlement of debt (D) Signup and view all the answers

What is the definition of a negotiable instrument according to the Negotiable Instrument Act 1881?

A promissory note, bill of exchange or cheque payable to order or bearer (D) Signup and view all the answers

What is the key difference between a negotiable instrument and money?

Negotiable instruments are used for settlement of debt (A) Signup and view all the answers

What is the term used to describe the transferability of a negotiable instrument?

Negotiation (A) Signup and view all the answers

What is the purpose of a negotiable instrument?

To settle a debt (D) Signup and view all the answers

What documents are required to be submitted by the heirs to claim the unclaimed deposits?

Passport of the successors and affidavit or notary public (B) Signup and view all the answers

What is the purpose of the instruction circular letter of the bank regarding procurement of fresh and renewal of corporate deposits?

To provide instructions for procurement of corporate deposits (B) Signup and view all the answers

What section of the Bank Company Act 1991 (amendment up to 2013) deals with the maintenance of unclaimed deposit account?

Section 35 (D) Signup and view all the answers

What is the purpose of annexure-6 in the context of unclaimed deposits?

To provide a list of files and documents for maintenance of bank records (D) Signup and view all the answers

What is the purpose of annexure-5 in the context of unclaimed deposits?

To provide relevant circulars in relation to maintenance of unclaimed deposit account (A) Signup and view all the answers

What does BACH stand for in the context of clearing and collection of instruments?

Bangladesh Automated Clearing House (B) Signup and view all the answers

What is the main responsibility of the presenting bank in the clearing process?

To ensure the authenticity of the instruments (C) Signup and view all the answers

What is the purpose of MICR coding in cheque clearing?

To encode the cheque details for processing (D) Signup and view all the answers

What is the role of the paying bank in the clearing process?

To settle the amount with the presenting bank (D) Signup and view all the answers

What is the main purpose of same-day clearing?

To clear instruments on the same day as presentment (B) Signup and view all the answers

What happens to a cheque received in clearing if the order is received before the stipulated returning time?

It is returned to the customer unpaid (B) Signup and view all the answers

What is the consequence of a credit being advised in a situation where a cheque is returned unpaid?

The credit cannot be cancelled (A) Signup and view all the answers

What right does a bank have prior to receiving a garnishee order?

Right to set-off (B) Signup and view all the answers

What happens to the excess amount over the lien marked on a Fixed Deposit receipt?

It is attached by the garnishee order (D) Signup and view all the answers

What should be specified in a garnishee order received against a joint account?

The full details of the account, including all joint account holders' names (A) Signup and view all the answers

What is the primary purpose of obtaining a clear instruction from joint account holders while opening the account?

To avoid future disputes among the account holders (A) Signup and view all the answers

What does the term 'garnishee' refer to in a garnishee order?

The banker who has been served with the order (A) Signup and view all the answers

What is the first step in the garnishee proceedings?

Issuing a garnishee order nisi (C) Signup and view all the answers

What happens if a garnishee order attaches the whole amount of a customer's account?

The banker must dishonor the customer's cheques (C) Signup and view all the answers

What should a banker do if a garnishee order is received after debiting the customer's account, but before payment of cash?

Refuse payment with an appropriate objection (B) Signup and view all the answers

What does ACH stand for?

Automated Clearing House (A) Signup and view all the answers

What is the role of BAMLCO in a bank?

Branch Anti Money Laundering Compliance Officer (D) Signup and view all the answers

What does BEFTN stand for?

Bangladesh Electronic Funds Transfer Network (C) Signup and view all the answers

What is the purpose of CHIPS?

To facilitate clearing house interbank payment (D) Signup and view all the answers

What is the role of CTR in banking?

Cash Transaction Reporting (B) Signup and view all the answers

What is the purpose of RTGS?

Real Time Gross Settlement (B) Signup and view all the answers

What is the purpose of TT?

Telegraphic Transfer (A) Signup and view all the answers

What is the role of MICR in banking?

Magnetic Ink Character Recognition (D) Signup and view all the answers

What is the purpose of LD in banking?

Local Draft (A) Signup and view all the answers

What is the purpose of POA in banking?

Power of Attorney (C) Signup and view all the answers

Which chapter of the manual covers Bank Locker and their different issues?

Chapter 8 (B) Signup and view all the answers

What type of relationship exists between a bank and its clients?

Fiduciary (A) Signup and view all the answers

What is the primary role of a commercial bank in the economy?

Financial intermediary (B) Signup and view all the answers

What is the main responsibility of a bank towards its customers?

Protecting customers' deposits and secrecy (D) Signup and view all the answers

What is the characteristic of a bank's dealings with its customers?

Impartial and non-discriminatory (A) Signup and view all the answers

What is the main responsibility of the paying bank in the clearing process?

To ensure the payment of the cheque (C) Signup and view all the answers

What is the primary purpose of BACH in clearing?

To facilitate the clearing of cheques (B) Signup and view all the answers

What is the primary purpose of MICR coding in cheque clearing?

To facilitate the processing of cheques (B) Signup and view all the answers

What is the primary purpose of Real-Time Gross Settlement (RTGS)?

To facilitate the transfer of funds (B) Signup and view all the answers

What is discussed in Chapter 6 of the manual?

Bills Collection and Remittance (A) Signup and view all the answers

What is the primary purpose of same-day clearing?

To facilitate the settlement of funds on the same day (D) Signup and view all the answers

What is the relationship discussed in Chapter 2 of the manual?

Banker Customer Relationship (B) Signup and view all the answers

How many chapters are there in the manual?

12 (D) Signup and view all the answers

What type of issues are discussed in the manual?

Risk Issues and Capacity Development (B) Signup and view all the answers

Who is the target audience for the manual?

Senior Bank Executives (C) Signup and view all the answers

What is the main objective of a trust account?

To benefit the beneficiary (B) Signup and view all the answers

What document should a banker examine thoroughly when opening an account in the names of persons as trustees?

Trust deed (C) Signup and view all the answers

What documents are required to be submitted by the successors to claim the unclaimed deposits?

Passport of the successors, marriage certificate, indemnity from the successors, and guarantee from third party (B) Signup and view all the answers

Who reposes confidence in a person or group of persons in a trust?

Author of the trust (B) Signup and view all the answers

What is placed in annexure-6 for compliance?

List of files and documents for maintenance of bank records (A) Signup and view all the answers

What is the right of a beneficiary against the trustee?

Right to the trust money (B) Signup and view all the answers

What is the purpose of annexure-7?

It provides instructions for procurement of fresh and renewal of corporate deposits (B) Signup and view all the answers

What is the subject matter of a trust?

Trust property or trust money (A) Signup and view all the answers

What is the relevance of section 35 of the Bank Company Act 1991 (amendment up to 2013) in the context of unclaimed deposits?

It deals with the maintenance of unclaimed deposit account (C) Signup and view all the answers

What is the purpose of an indemnity from the successors or guarantee from a third party?

To ensure the bank's protection against potential losses (D) Signup and view all the answers

What is the main purpose of deposit mobilization?

To attract deposits from various customer groups (B) Signup and view all the answers

Why do banks diversify sources of funds?

To reduce dependence on funds from other banks (C) Signup and view all the answers

What is the primary source of funds for banks?

Deposits from retail and corporate customers (A) Signup and view all the answers

What is the benefit of introducing several deposit schemes?

To attract deposits from various customer groups (D) Signup and view all the answers

Why do banks open branches across the country?

To reduce dependence on urban deposits (A) Signup and view all the answers

What is the role of deposits in banking?

A major task of banking (D) Signup and view all the answers

What is money placed into a banking institution for?

For safekeeping (A) Signup and view all the answers

What are deposits kept in?

Various accounts in a bank (A) Signup and view all the answers

What do banks use to fund their business?

Deposits from retail and corporate customers, as well as call money from local banks (A) Signup and view all the answers

Why is deposit mobilization important for banks?

To attract deposits from various customer groups (A) Signup and view all the answers

What is the main responsibility of a leader in banking?

To manage the bank's financial resources effectively (A) Signup and view all the answers

What is the purpose of employee motivation in banking?

To improve employee productivity and job satisfaction (C) Signup and view all the answers

What is work stress in the banking sector?

A psychological and physical response to work-related pressures (B) Signup and view all the answers

What is the purpose of handling employee grievances in banking?

To resolve employee complaints and issues fairly and promptly (C) Signup and view all the answers

What is leadership in banking?

A process of influencing and guiding others to achieve a common goal (C) Signup and view all the answers

What is primarily discussed in Chapter 6 of the manual?

Bills Collection and Remittance (D) Signup and view all the answers

What is the main purpose of cheque clearing?

To provide a secure way of payment (B) Signup and view all the answers

What is the primary role of the presenting bank in the clearing process?

To collect cheques and deposit them into the customer's account (A) Signup and view all the answers

What is the main concern in cheque clearing process?

Security of payment (C) Signup and view all the answers

What is the primary benefit of cheque clearing?

Increased security in payment (B) Signup and view all the answers

What is the relationship between banks and their clients?

Fiduciary (B) Signup and view all the answers

What is the significance of commercial banks in the development process?

Indicating economic development (D) Signup and view all the answers

What is the primary role of a commercial bank in the economy?

Acting as a financial intermediary (C) Signup and view all the answers

What is the main responsibility of a bank?

Protecting customers' secrecy (B) Signup and view all the answers

What is the characteristic of a bank's dealings with its customers?

Impartial and non-discriminatory (D) Signup and view all the answers

What is the primary function of BACH in the context of clearing and collection of instruments?

To facilitate the exchange of instruments between banks (C) Signup and view all the answers

Which of the following is a key aspect of MICR coding in cheque clearing?

Reading and processing of cheques (D) Signup and view all the answers

What is the primary responsibility of the presenting bank in the clearing process?

To ensure the instrument is in order before presenting it for payment (C) Signup and view all the answers

What is the primary purpose of the operational due diligence in clearing and collection of instruments?

To manage the risk associated with negotiable instruments (C) Signup and view all the answers

What is the primary benefit of same-day clearing in the context of cheque clearing?

Improving customer satisfaction through faster settlement (A) Signup and view all the answers

What is the main role of the collecting bank in the cheque clearing process?

To present the cheque to the paying bank (A) Signup and view all the answers

What is the consequence of a cheque being returned unpaid?

The account is debited (B) Signup and view all the answers

What is the primary purpose of the clearing process?

To enable inter-bank payments (A) Signup and view all the answers

What is the role of MICR in cheque clearing?

To encode cheques for clearing (B) Signup and view all the answers

What is the main purpose of the Bankers' Books Evidence Act of 1891?

To provide evidence in court (A) Signup and view all the answers

What is the instrument by which a trust is created?

Trust Deed (D) Signup and view all the answers

What is the role of a trustee in a trust?

To accept and manage the trust property on behalf of the beneficiary (A) Signup and view all the answers

What should a banker examine thoroughly when opening an account in the name of a trustee?

The Trust Deed (C) Signup and view all the answers

What is the right of a beneficiary against the trustee?

To claim a beneficial interest in the trust property (C) Signup and view all the answers

What is the primary purpose of a trust account in a bank?

To administer the trust property for the benefit of the beneficiary (D) Signup and view all the answers

What document is required to be submitted by the heirs in case of a deceased person?

Affidavit or Notary Public (D) Signup and view all the answers

What is the purpose of annexure-5 in the context of unclaimed deposits?

To detail the circulars regarding maintenance of unclaimed deposit account (B) Signup and view all the answers

What is mentioned in annexure-6 for compliance?

A detailed list of files and documents along with the time limit for maintenance of bank records (D) Signup and view all the answers

What is the purpose of the payment order in the context of unclaimed deposits?

To issue a payment order in favor of the payee mentioning the name of the deceased (A) Signup and view all the answers

What is discussed in the 'Questions and Answer Indications' section of the study material?

The risk incurred by a banker in opening an account with Trustees and Executors (C) Signup and view all the answers

What is the main objective of banks to diversify sources of funds?

To reduce dependence on urban deposits (B) Signup and view all the answers

What is the primary source of funding for banks?

Deposits from retail and corporate customers (D) Signup and view all the answers

What is the benefit of introducing several deposit schemes?

To attract deposits from various customer groups (A) Signup and view all the answers

Why are banks opening branches across the country?

To reduce dependence on urban deposits (C) Signup and view all the answers

What is the primary function of a bank?

Mobilization of savings through intensive deposit collection (A) Signup and view all the answers

What is the primary source of funds for banks, apart from deposits?

Call money from local banks (B) Signup and view all the answers

What is the primary objective of a bank?

To mobilize savings through intensive deposit collection (D) Signup and view all the answers

What is the main task of banking?

Mobilization of savings through intensive deposit collection (A) Signup and view all the answers

What is the primary role of bank deposits?

To fund the bank's business (A) Signup and view all the answers

Why do banks need to manage each deposit scheme carefully?

To attract deposits from various customer groups (A) Signup and view all the answers

Banking and Negotiable Instruments

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Questions and Answers

What is mainly discussed in Chapter 5 of the manual?

Which of the following is NOT discussed in Chapter 5 of the manual?

What is discussed in Chapter 6 of the manual?

What is part of Cash management discussed in Chapter 5 of the manual?

What is NOT a topic discussed in the manual?

What is the primary characteristic of a negotiable instrument?

What is the definition of a negotiable instrument according to the Negotiable Instrument Act 1881?

What is the key difference between a negotiable instrument and money?

What is the term used to describe the transferability of a negotiable instrument?

What is the purpose of a negotiable instrument?

What documents are required to be submitted by the heirs to claim the unclaimed deposits?

What is the purpose of the instruction circular letter of the bank regarding procurement of fresh and renewal of corporate deposits?

What section of the Bank Company Act 1991 (amendment up to 2013) deals with the maintenance of unclaimed deposit account?

What is the purpose of annexure-6 in the context of unclaimed deposits?

What is the purpose of annexure-5 in the context of unclaimed deposits?

What does BACH stand for in the context of clearing and collection of instruments?

What is the main responsibility of the presenting bank in the clearing process?

What is the purpose of MICR coding in cheque clearing?

What is the role of the paying bank in the clearing process?

What is the main purpose of same-day clearing?

What happens to a cheque received in clearing if the order is received before the stipulated returning time?

What is the consequence of a credit being advised in a situation where a cheque is returned unpaid?

What right does a bank have prior to receiving a garnishee order?

What happens to the excess amount over the lien marked on a Fixed Deposit receipt?

What should be specified in a garnishee order received against a joint account?

What is the primary purpose of obtaining a clear instruction from joint account holders while opening the account?

What does the term 'garnishee' refer to in a garnishee order?

What is the first step in the garnishee proceedings?

What happens if a garnishee order attaches the whole amount of a customer's account?

What should a banker do if a garnishee order is received after debiting the customer's account, but before payment of cash?

What does ACH stand for?

What is the role of BAMLCO in a bank?

What does BEFTN stand for?

What is the purpose of CHIPS?

What is the role of CTR in banking?

What is the purpose of RTGS?

What is the purpose of TT?

What is the role of MICR in banking?

What is the purpose of LD in banking?

What is the purpose of POA in banking?

Which chapter of the manual covers Bank Locker and their different issues?

What type of relationship exists between a bank and its clients?

What is the primary role of a commercial bank in the economy?

What is the main responsibility of a bank towards its customers?

What is the characteristic of a bank's dealings with its customers?

What is the main responsibility of the paying bank in the clearing process?

What is the primary purpose of BACH in clearing?

What is the primary purpose of MICR coding in cheque clearing?

What is the primary purpose of Real-Time Gross Settlement (RTGS)?

What is discussed in Chapter 6 of the manual?

What is the primary purpose of same-day clearing?

What is the relationship discussed in Chapter 2 of the manual?

How many chapters are there in the manual?

What type of issues are discussed in the manual?

Who is the target audience for the manual?

What is the main objective of a trust account?

What document should a banker examine thoroughly when opening an account in the names of persons as trustees?

What documents are required to be submitted by the successors to claim the unclaimed deposits?

Who reposes confidence in a person or group of persons in a trust?

What is placed in annexure-6 for compliance?

What is the right of a beneficiary against the trustee?

What is the purpose of annexure-7?

What is the subject matter of a trust?

What is the relevance of section 35 of the Bank Company Act 1991 (amendment up to 2013) in the context of unclaimed deposits?

What is the purpose of an indemnity from the successors or guarantee from a third party?

What is the main purpose of deposit mobilization?

Why do banks diversify sources of funds?

What is the primary source of funds for banks?

What is the benefit of introducing several deposit schemes?

Why do banks open branches across the country?

What is the role of deposits in banking?

What is money placed into a banking institution for?

What are deposits kept in?

What do banks use to fund their business?

Why is deposit mobilization important for banks?

What is the main responsibility of a leader in banking?