Banking Management Chapters 7-11 Quiz
120 Questions
1 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What type of relationship exists between banks and their clients?

  • Contractual
  • Fiduciary (correct)
  • Informal
  • Formal

    • What is the primary responsibility of a bank?

  • Protecting customers' deposit and secrecy (correct)
  • Granting loans
  • Investing in stocks
  • Providing financial advice

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

  • They grant loans to individuals
  • They play a crucial role in economic development (correct)
  • They invest in stocks
  • They provide financial advice

    • What is a bank considered in terms of its function?

    <p>A financial intermediary</p> Signup and view all the answers

    What is the bank's duty towards its customers?

    <p>To carry out duties in utmost good faith and due diligence</p> Signup and view all the answers

    What is the primary focus of chapter 5 in the manual?

    <p>Clearing and Collection of Instruments</p> Signup and view all the answers

    Which of the following is NOT discussed in chapter 5?

    <p>Bills Collection and Remittance</p> Signup and view all the answers

    Where can one find the discussion on Bills Collection and Remittance in the manual?

    <p>Chapter 6</p> Signup and view all the answers

    What is the main topic of chapter 6 in the manual?

    <p>Bills Collection and Remittance</p> Signup and view all the answers

    What is BACH an acronym for in the context of chapter 5?

    <p>Bangladesh AutomatedClearingHouse</p> Signup and view all the answers

    What is the abbreviation for Automated Clearing House?

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

    What is the term for the bank that receives the payment instruction from the payer?

    <p>Receiving Bank</p> Signup and view all the answers

    What is the process of exchanging payment instructions between banks?

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

    What does the abbreviation 'CBS' stand for in the context of banking?

    <p>Core Banking Solution</p> Signup and view all the answers

    What is the term for the bank that initiates the payment instruction?

    <p>Paying Bank</p> Signup and view all the answers

    What is the primary source of funding for a bank's business?

    <p>Deposits from retail and corporate customers</p> Signup and view all the answers

    What is the main objective of deposit mobilization in banking?

    <p>To collect money from various customer groups</p> Signup and view all the answers

    Why are banks introducing various deposit schemes?

    <p>To attract deposits from various customer groups</p> Signup and view all the answers

    What is the primary reason banks are opening branches across the country?

    <p>To reduce dependence on urban deposits</p> Signup and view all the answers

    What is the primary function of deposit mobilization in banking?

    <p>To collect money from various customer groups</p> Signup and view all the answers

    What is the primary function of the Presenting Bank in the clearing process?

    <p>To present the instrument to the Paying Bank</p> Signup and view all the answers

    What is the role of the Paying Bank in the clearing process?

    <p>To settle the amount with the Presenting Bank</p> Signup and view all the answers

    What is the term for the processing of instruments at the Participating Bank Module?

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

    What is the name of the real-time settlement system?

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

    What is the term for the system where instruments are cleared on the same day?

    <p>Same Day Clearing</p> Signup and view all the answers

    When a customer has multiple debts outstanding, what is the role of the bank in appropriating payment?

    <p>The bank can exercise its right to appropriation without needing the customer's direction</p> Signup and view all the answers

    What is the purpose of a Garnishee Order?

    <p>To instruct the bank to hold funds until directed by the court</p> Signup and view all the answers

    What is the banker's obligation when a customer issues a cheque?

    <p>To verify the customer's account and then honour the cheque</p> Signup and view all the answers

    What is the bank's implied right in relation to services rendered?

    <p>To charge interest and commission on services rendered</p> Signup and view all the answers

    What is the banker's obligation in relation to customer records?

    <p>To maintain proper and accurate records</p> Signup and view all the answers

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

    <p>To avoid disputes in making payments</p> Signup and view all the answers

    What does the term 'garnishee' refer to?

    <p>The person who has been served with the order</p> Signup and view all the answers

    What is the purpose of the 'Garnishee Order Nisi'?

    <p>To give the banker an opportunity to prove the order is incorrect</p> Signup and view all the answers

    What happens to the customer's cheques if the 'Garnishee Order Absolute' is issued?

    <p>The banker must dishonor all cheques</p> Signup and view all the answers

    Why should a banker carefully examine the terms of the 'Garnishee Order'?

    <p>To understand the extent of the garnishment</p> Signup and view all the answers

    What should a banker do if a 'Garnishee Order' is received after debiting the account but before making cash payment?

    <p>Refuse payment with an appropriate objection</p> Signup and view all the answers

    What is the primary consequence of a 'Garnishee Order Absolute' on a customer's account?

    <p>The customer's account is garnished</p> Signup and view all the answers

    What is the banker's responsibility when a 'Garnishee Order' is issued?

    <p>To carefully examine the terms of the order</p> Signup and view all the answers

    What is the significance of the 'Garnishee Order Nisi' becoming an absolute order?

    <p>The order is enforced and becomes absolute</p> Signup and view all the answers

    What is the purpose of having clear instructions from joint account holders when opening an account?

    <p>To avoid disputes in making payments</p> Signup and view all the answers

    What is the primary function of the Presenting Bank in the clearing process?

    <p>To submit the instrument to the Clearing House</p> Signup and view all the answers

    Which chapter of the manual discusses the Bills Collection and Remittance?

    <p>Chapter 6</p> Signup and view all the answers

    What is the role of the Paying Bank in the clearing process?

    <p>To make the payment to the Collecting Bank</p> Signup and view all the answers

    What is the term for the bank that receives the payment instruction from the payer?

    <p>Ordering Bank</p> Signup and view all the answers

    What is the process of exchanging payment instructions between banks?

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

    What is the primary role of the Collecting Bank in the clearing process?

    <p>To present the instrument to the Paying Bank for payment</p> Signup and view all the answers

    What is the term for the process of exchanging payment instructions between banks?

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

    What is the primary responsibility of the Paying Bank in the clearing process?

    <p>To make payment to the payee</p> Signup and view all the answers

    What is the term for the bank that receives the payment instruction from the payer?

    <p>Originating Bank</p> Signup and view all the answers

    What is the term for the bank that initiates the payment instruction?

    <p>Originating Bank</p> Signup and view all the answers

    What is the primary purpose of a banker's efforts to diversify sources of funds?

    <p>To reduce dependence on retail deposits</p> Signup and view all the answers

    What is the primary function of deposit mobilization in banking?

    <p>To mobilize savings through intensive deposit collection</p> Signup and view all the answers

    What is the primary source of funding for a bank's business?

    <p>Deposits from retail and corporate customers</p> Signup and view all the answers

    Why are banks introducing various deposit schemes?

    <p>To attract deposits from various customer groups</p> Signup and view all the answers

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

    <p>To play a major role in the development process</p> Signup and view all the answers

    Which of the following is the primary function of the Clearing House in the clearing process?

    <p>To facilitate the exchange of instruments between banks</p> Signup and view all the answers

    Which bank is responsible for verifying the authenticity of the instruments in the clearing process?

    <p>Presenting Bank</p> Signup and view all the answers

    What is the term for the system where instruments are cleared on the same day in the Bangladesh banking system?

    <p>RTGS (Real Time Gross Settlement)</p> Signup and view all the answers

    Which of the following is an abbreviation for 'Bangladesh Automated Clearing House'?

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

    What is the term for the bank that initiates the payment instruction in the clearing process?

    <p>Originating Bank</p> Signup and view all the answers

    What is the primary responsibility of the Paying Bank in the clearing process?

    <p>To verify the genuineness of the instrument</p> Signup and view all the answers

    What is the term for the bank that initiates the payment instruction?

    <p>Originating Bank</p> Signup and view all the answers

    What is the term for the processing of instruments at the Participating Bank Module?

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

    What is the primary function of the Collecting Bank?

    <p>To present the instrument to the paying bank</p> Signup and view all the answers

    What is the term for the system where instruments are cleared on the same day?

    <p>Same Day Clearing</p> Signup and view all the answers

    What happens when a customer has multiple debts outstanding and no direction is given to the banker?

    <p>The bank can exercise its right of appropriation and apply it in payment of any debt.</p> Signup and view all the answers

    What is the implied right of a banker in relation to services rendered?

    <p>To charge for services rendered and sold to a customer.</p> Signup and view all the answers

    What is the obligation of a banker when a customer issues a cheque?

    <p>To honour the customer’s cheque after the necessary verifications.</p> Signup and view all the answers

    What is the purpose of a Garnishee Order?

    <p>To instruct a bank that funds held on behalf of a debtor should not be released until directed by the court.</p> Signup and view all the answers

    What is the obligation of a banker in relation to customer records?

    <p>To maintain secrecy of customer’s account and maintain proper records.</p> Signup and view all the answers

    What is the primary consequence of a 'Garnishee Order Absolute' on a customer's cheques?

    <p>The cheques are dishonored regardless of the amount</p> Signup and view all the answers

    What should a banker do if a 'Garnishee Order' is received after debiting the account but before making cash payment?

    <p>Refuse payment with an appropriate objection</p> Signup and view all the answers

    What is the purpose of having a clear instruction from joint account holders when opening an account?

    <p>To avoid complications in making payment that may arise as a future dispute</p> Signup and view all the answers

    What is the significance of the 'Garnishee Order Nisi' becoming an absolute order?

    <p>It attaches the customer's account and the banker must dishonor the cheques</p> Signup and view all the answers

    What happens if a 'Garnishee Order' is received after debiting the account but before making cash payment?

    <p>The payment is refused with an appropriate objection</p> Signup and view all the answers

    What is the role of the bank in relation to a 'Garnishee Order'?

    <p>To attach the customer's account and dishonor the cheques</p> Signup and view all the answers

    What is the primary consequence of a 'Garnishee Order' on a customer's account?

    <p>The account is attached and the banker must dishonor the cheques</p> Signup and view all the answers

    What is the significance of the 'Garnishee Order Nisi'?

    <p>It gives the banker an opportunity to prove that the order could not be enforced</p> Signup and view all the answers

    What is the role of the bank in relation to a customer's cheques?

    <p>To dishonor the cheques if a 'Garnishee Order Absolute' is issued</p> Signup and view all the answers

    What happens to the customer's account if a 'Garnishee Order Absolute' is issued?

    <p>The account is attached and the banker must dishonor the cheques</p> Signup and view all the answers

    What is the main focus of Chapter 5 in the manual?

    <p>Clearing and Collection of Instruments</p> Signup and view all the answers

    What is the role of the Paying Bank in the clearing process?

    <p>To receive the payment instruction from the payer</p> Signup and view all the answers

    What is the term for the bank that receives the payment instruction from the payer?

    <p>Paying Bank</p> Signup and view all the answers

    What is the primary function of the Collecting Bank in the clearing process?

    <p>To collect the payment on behalf of the customer</p> Signup and view all the answers

    What is the abbreviation for Bangladesh Automated Clearing House?

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

    What is the primary function of the Presenting Bank in the clearing process?

    <p>To process the payment instruction</p> Signup and view all the answers

    What is the term for the bank that receives the payment instruction from the payer?

    <p>Receiving Bank</p> Signup and view all the answers

    What is the primary responsibility of a bank in relation to its customers?

    <p>To protect customers' deposits and secrecy</p> Signup and view all the answers

    What is the abbreviation for Bangladesh Automated Clearing House?

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

    What is the nature of the relationship between banks and their clients?

    <p>Fiduciary and based on trust</p> Signup and view all the answers

    What is the primary function of the Collecting Bank in the clearing process?

    <p>To collect the payment on behalf of the customer</p> Signup and view all the answers

    What is a bank's role in the economy?

    <p>To act as a financial intermediary</p> Signup and view all the answers

    What is the term for the system where instruments are cleared on the same day?

    <p>Same Day Clearing</p> Signup and view all the answers

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

    <p>They facilitate economic development</p> Signup and view all the answers

    What is the bank's supreme responsibility?

    <p>To protect customers' deposits and secrecy</p> Signup and view all the answers

    What is the purpose of deposit mobilization in banking?

    <p>To diversify sources of funds for the bank</p> Signup and view all the answers

    What is the primary source of funding for a bank's business?

    <p>Deposits from retail and corporate customers</p> Signup and view all the answers

    What is the main objective of a bank's efforts to diversify sources of funds?

    <p>To reduce dependence on other banks</p> Signup and view all the answers

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

    <p>To facilitate transactions and provide financial services</p> Signup and view all the answers

    What is the term for the process of exchanging payment instructions between banks?

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

    What does the term 'BACH' stand for in the context of chapter 6?

    <p>Bangladesh Automated Clearing House</p> Signup and view all the answers

    What is the responsibility of the Presenting Bank in the clearing process?

    <p>To initiate the payment instruction to the Paying Bank</p> Signup and view all the answers

    What is the term for the processing of instruments at the Participating Bank Module?

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

    What is the primary responsibility of the Paying Bank in the clearing process?

    <p>To settle the payment instruction with the Presenting Bank</p> Signup and view all the answers

    What is the term for the system where instruments are cleared on the same day?

    <p>Same Day Clearing</p> Signup and view all the answers

    What is the right of the customer regarding the appropriation of payment made by him?

    <p>Banker's right to appropriate payment</p> Signup and view all the answers

    What is the obligation of a banker regarding customer's cheques?

    <p>To honour the customer's cheque after verification</p> Signup and view all the answers

    What is the purpose of a garnishee order?

    <p>To instruct a bank not to release funds</p> Signup and view all the answers

    What type of order is a garnishee order?

    <p>Court order</p> Signup and view all the answers

    What happens if a customer has multiple debts outstanding and no direction is given to the banker?

    <p>The banker can exercise its right of appropriation and apply it in payment of any debt</p> Signup and view all the answers

    What is the purpose of obtaining clear instruction from joint account holders when opening an account?

    <p>To avoid any future dispute between the joint account holders</p> Signup and view all the answers

    What is the significance of 'Garnishee Order Nisi'?

    <p>It is an opportunity for the banker to prove that the order cannot be enforced</p> Signup and view all the answers

    What should the banker do if a 'Garnishee Order' is received after debiting the account but before making cash payment?

    <p>Refuse payment with an appropriate objection</p> Signup and view all the answers

    What happens to the customer's cheque if a 'Garnishee Order Absolute' is issued?

    <p>The cheque will be dishonored</p> Signup and view all the answers

    What is the primary consequence of a 'Garnishee Order Absolute' on a customer's account?

    <p>The account is fully attached</p> Signup and view all the answers

    What is the responsibility of the banker when a 'Garnishee Order' is received?

    <p>To go through the terms of the order carefully</p> Signup and view all the answers

    What should the banker do when a customer has multiple debts outstanding and no direction is given?

    <p>Appropriate the payment as the banker sees fit</p> Signup and view all the answers

    What is the term for the bank that receives the payment instruction from the payer?

    <p>Presenting Bank</p> Signup and view all the answers

    What is the role of the Collecting Bank in the clearing process?

    <p>To present the instruments to the Paying Bank</p> Signup and view all the answers

    What is the term for the system where instruments are cleared on the same day?

    <p>Same-day Clearing</p> Signup and view all the answers

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser