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Questions and Answers
Financial conglomerates function as what?
Financial conglomerates function as what?
financial supermarkets
If funds are not sufficient, and the cheque is dishonoured, which bank is responsible for payment?
If funds are not sufficient, and the cheque is dishonoured, which bank is responsible for payment?
Paying Bank
What is the third stage of money laundering?
What is the third stage of money laundering?
Integration
In case of cheques, what is the maker of the cheque known as?
In case of cheques, what is the maker of the cheque known as?
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What is the definition of the unsatisfactory conduct that leads to closure of accounts by regulatory authorities?
What is the definition of the unsatisfactory conduct that leads to closure of accounts by regulatory authorities?
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In an endorsed cheque, the person who transfers the instrument is known as what?
In an endorsed cheque, the person who transfers the instrument is known as what?
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The Anti-Money Laundering (AML) system helps to detect and report suspicious activities.
The Anti-Money Laundering (AML) system helps to detect and report suspicious activities.
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Any overwriting done in cheques is known as what?
Any overwriting done in cheques is known as what?
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A negotiable instrument in writing containing an unconditional order is known as a Bill of Exchange.
A negotiable instrument in writing containing an unconditional order is known as a Bill of Exchange.
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A person under the age of what, according to the Hijra calendar, is considered a Minor?
A person under the age of what, according to the Hijra calendar, is considered a Minor?
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What are the features of a negotiable instrument?
What are the features of a negotiable instrument?
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Deposits that circulate as money leading to a net increase in the money supply are known as what?
Deposits that circulate as money leading to a net increase in the money supply are known as what?
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A series of repeat financial transactions done from one account to another, often done for the purpose of concealing or disguising the source of funds, is known as what?
A series of repeat financial transactions done from one account to another, often done for the purpose of concealing or disguising the source of funds, is known as what?
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Using a cheque truncation system helps in better cash management.
Using a cheque truncation system helps in better cash management.
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Special accounts are also known as what?
Special accounts are also known as what?
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How many times in a year can a frequent return of cheques lead to closure of accounts?
How many times in a year can a frequent return of cheques lead to closure of accounts?
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What type of account are typically preferred by businessmen?
What type of account are typically preferred by businessmen?
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What is the term for the signing on the back of an instrument with direction to pay the amount?
What is the term for the signing on the back of an instrument with direction to pay the amount?
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When the name of a specific bank is written in space between two parallel lines, what is this known as?
When the name of a specific bank is written in space between two parallel lines, what is this known as?
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What are stale cheques?
What are stale cheques?
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Study Notes
Banking Theory & Practice (Paper A)
- Financial conglomerates act as financial supermarkets. Universal Banking is involved.
- Insufficient funds lead to dishonored cheques, possibly by the Paying Bank.
- The third stage of money laundering is Integration.
- The person who creates a cheque is the Drawer.
- Closure of accounts is triggered by unsatisfactory conduct, which can be defined as Money Laundering.
- The person transferring a cheque is called an Endorser.
- Anti-Money Laundering (AML) helps identify and report suspicious activities (True).
- Any alteration to a cheque is considered Material Alteration (True).
- A negotiable instrument with an unconditional order is a Bill of Exchange (True).
- A minor is a person under the age of 21, according to the Hijra calendar.
- Features of negotiable instruments include Transferability, Good title, and Right to sue.
- Increased circulation of money is Credit Creation.
- Repeated transactions between accounts are called Layering.
- Cheque truncation systems improve cash management (True).
- Special accounts are Minor accounts.
- Frequent return of cheques can close accounts.
- Businessmen often prefer Current Accounts.
- Endorsement on the back of a cheque with payment instructions is Special Endorsement.
- Writing a specific bank's name between two parallel lines signifies Special Crossing.
- Cheques older than 6 months are Stale Cheques.
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Description
This quiz covers key concepts in banking theory and practice, focusing on financial conglomerates, money laundering stages, and cheque processes. It addresses the definitions and roles of various parties involved in cheque transactions and discusses regulations like Anti-Money Laundering. Test your knowledge on these critical banking topics and understand their implications in modern finance.
