Finance [Banking] Question Paper 2016 | AHSEC Class 12 Finance Question Papers

Finance [Banking] Question Paper 2016
AHSEC Class 12 Finance Question Papers
Full Marks: 100
Pass Marks: 30
Time: Three Hours
The figures in the margin indicate full marks for the questions.

1. Answer as directed:           1x10=10

a)      Which is the first Development Bank established in India?
b)      What is primary market?
c)       In which year fourteen Indian commercial banks were nationalized?
d)      What do you mean by scheduled bank?
e)      Capital market is the market for long-term fund. (State whether True or False)
f)       Write the full form of MMMF.
g)      A collecting banker can claim statutory protection only in the case of ____ cheque. (Fill up the blank)
h)      What is statutory liquidity ratio?
2. Name two departments of the Reserve Bank of India.                2
3. What is the meaning of cash credit?                   2
4. State the ‘minimum reserve system’ of note issue.        2
5. Who can cross a cheque?                        2
6. Define endorsement.               2
7. State the meaning of Development Bank with example.           3
8. Briefly explain the utility services rendered by the commercial banks.            3
9. Write a brief note on capital market.                  3
                                Or /
Write a short note on foreign exchange market.                               3
10. Draw specimen of a blank cheque.                   3
11. State any three differences between Bill of Exchange and Promissory note.                 3
12. What are the objectives of IBRD (World Bank)?          5
13. Mention five advantages and disadvantages of Branch Banking System.         5
14. Discuss five features or characteristics of Indian money market.         5
Or
What are the differences between Money Market and Capital Market?                                5
15. Write about the five essential elements of valid endorsement.           5
Or
Explain briefly about different types of crossing with example.                  5
16. Examine the statutory protections provided to a collecting banker under the Negotiable Instruments Act, 1881.  5
17. Discuss briefly about different types of loans and advances granted by a commercial bank.        5
18. Explain the functions of Stock Exchange.        5
19. Explain the traditional functions of the Reserve Bank of India.             8
Or
State the meaning of cash reserve. Distinguish between Cash Balance and Cash Reserve.    2+6=8
20. Discuss the principles followed by the commercial banks in investing its fund in securities.     8
21. Explain the role and functions of non-banking financial institutions.                  8
Or
Discuss the role of the State Bank of India in Indian economy.                    8
22. What precautions should be taken by a banker while making payment of a cheque? Explain.   8
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