Banking Products and Safe Custody Quiz
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Questions and Answers

What is the primary function of a bank according to the text?

  • Earning fee based income (correct)
  • Safe custody of valuables
  • Conversion of goods
  • Trustee or agent services
  • What is the relationship between a customer and a bank when goods are given for safe keeping?

  • Agent and principal
  • Depositor and trustee
  • Bailor and bailee (correct)
  • Trustee and beneficiary
  • What legal term is used to define the delivery of goods by one person to another for a specific purpose?

  • Trustee agreement
  • Conversion
  • Bailment (correct)
  • Agent contract
  • According to the Indian Contract Act, who is the person delivering the goods in a bailment contract referred to as?

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

    What is the primary purpose of a bailment according to Section 148 of the Indian Contract Act?

    <p>To hold goods in trust for a specific purpose</p> Signup and view all the answers

    What is the primary purpose of banks providing the facility of safe custody of valuables?

    <p>To earn a fee based income</p> Signup and view all the answers

    What is the legal term used to define the delivery of goods by one party to another to be held in trust for a specific purpose?

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

    In the context of safe custody of valuables, who is the party that delivers the goods to the bank?

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

    According to Section 148 of the Indian Contract Act, what are the two parties involved in a bailment?

    <p>Bailor and Bailee</p> Signup and view all the answers

    What is the contract for delivering goods by one party to another to be held in trust for a specific purpose and returned when the purpose is over?

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

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