AHSEC| CLASS 12| FINANCE| SOLVED PAPER - 2022| H.S. 2ND YEAR
2022
FINANCE
Full Marks: 100
Pass Marks: 30
Time: Three hours
The figures in the margin indicate full marks for the questions.
1. (a) In which year ‘Lead Bank Scheme’ was introduced? 1
Ans:- In December, 1969.
(b) Who
issues one-rupee note? 1
Ans:- Government of India.
(c) Write the
full form of OCTEI. 1
Ans:- Over The Counter Exchange of India.
(d) IFCI was
established in 1948. 1
(e) State the
meaning of Hundi. 1
Ans:- The
word, "hundi" is derived from the Sanskrit word "hundi"
which means "to collect". A Hundi is a traditional bill of exchange.
All indigenous negotiable instruments written in an oriental language are known
as hundis.
(f) Define
General Crossing of a cheque. 1
Ans:- According
to section 123 of the Negotiable Instruments Act, 1881, "Where on a check
the words 'and the Company' or any abbreviation thereof are added between two
parallel transverse lines, or between two parallel transverse lines, either
without the words The addition of 'not negotiable' would be treated as a
crossing and the check would normally be treated as crossed.
(g) What is
meant by Bank Overdraft? 1
Ans:- Overdraft
is an arrangement by which a customer is allowed to overdraw from his account.
It is given against certain collateral securities. Overdraw facility is allowed
through current account only. Interest is charged on the exact overdrawn amount
subject to payment of minimum amount as interest.
(h) Name two
subsidiaries of SBI. 1
Ans:- (i)
State Bank of Indore. (1st January, 1960)
(ii) State
Bank of Patiala. (1st May, 1960)
2. Write a note on Presidency Banks. 2
Ans:- Prior to the establishment of the Presidency
Bank, some banking institutions were based on the British model. Banks failed
to run their banking business due to lack of management control, irrational
credit policy and some other reasons. Therefore, to overcome this problem,
three banks were established in the name of "The Bank of Bengal" in
1806, "The Bank of Bombay" in 1840 and "The Bank of Madras"
in 1843. These three banks are called Presidency Banks.
3. What is the meaning of underwriting? 2
Ans:- Underwriting is one of the most important
functions in the financial world in which a person or an institution undertakes
the risk associated with an enterprise, an investment, or a loan against
insurance and the stock market.
4. Write two objectives of IBRD. 2
Ans:- Objective of IBRD or World Bank: The World Bank was
established to promote long-term foreign investment credit on reasonable terms.
The
objectives of the bank are given below:
(i) To assist
in the reconstruction and development of the areas of the members by
facilitating investment of capital including for production purposes.
(ii) Promotion
of private investment by way of guarantee or participation in loans and other
investments made by private investors.
5. What is Post-dated Cheque? 2
Ans:- A check which has an earlier date is called an
antedated cheque. For example: A check issued on September 22, 2007 may be
dated September 15, 2007.
A post-dated
check is one that is dated after the date on which the check is actually drawn.
A post dated check should not be paid to the banker before it becomes due for
payment.
6. Who is a Paying Banker? 2
Ans:- A paying banker is one who in the ordinary
course of his banking business accepts checks drawn by his customers and makes
payment to the parties, provided the checks presented to him are valid in all
respects. It is the obligation of the bank to honor the check issued by the
customer if the following three conditions are satisfied:
(a) Sufficient
balance is available in the customer's account.
(b) The check is
properly drawn and presented.
(c) No legal
restriction has been imposed on the payment.
7. Write three differences between current account and
saving deposit account. 3
Ans:- Current Deposit Account: These accounts are
generally maintained by traders and businessmen who have to make several
payments every day. Depositors can withdraw from these accounts as many times
as they can deposit. Normally no interest is paid on this account.
Savings
Deposit Accounts: The objective of these accounts is to encourage and
mobilize small savings of the public. Certain restrictions are imposed on the
depositors regarding the number of withdrawals and the amount that can be
withdrawn in a given period. Check facility is provided to the depositors. The
rate of interest paid on these deposits is lower as compared to fixed deposits.
8. Write three objectives of Money Market. 3
Ans:- The objectives of the money market are:
(i) To provide
short term funds to the borrowers at reasonable rates. And since the securities
are all short-term, the lenders will also benefit from the liquidity.
(ii) Converts
the savings and idle money of the public into effective investment. It is
beneficial for the entire economy.
(iii) Allows RBI
to regulate the level of liquidity in the economy. This is one of the main
functions of RBI.
9. Write three functions of NABARD. 3
Ans:- Functions of NABARD:
The important
functions of NABARD are as follows:
(i) It acts as
an apex refinance agency for institutions providing investment and production
credit for promoting various developmental activities in rural areas.
(ii) It provides
short-term loans to Regional Rural Banks, State Co-operative Banks and other
financial institutions approved by the Reserve Bank. Such credit is granted by
NABARD for a period of up to 18 months.
10. Write a note on Endorsement in blank. 3
Ans:- A blank or general endorsement is one in which
the endorser puts his signature on the instrument without specifying the name
of the endorsee.
11. Under what circumstances banker must pay a
cheque? 3
Ans:- Deposits accepted by a banker are his
liabilities repayable on demand or otherwise.
Hence the banker
is bound to honor his customer's check provided the following conditions are
satisfied:
(i) Adequacy of
Funds: The banker's obligation to honor a customer's check will arise only if the
customer's funds with the banker are at least equal to the amount of the
cheque.
(ii)
Applicability of funds: Funds should be available for checks drawn on the
customer's account.
(iii) Must be
duly paid to the banker: It means that the check is complete in all respects
and is presented during banking hours. Also the check should not be post-dated.
Or
State the
minimum reserve system of note issue.
3
Ans:- Minimum
Reserve System is an important method of note issuance adopted by the Reserve
Bank of India. Under this system, paper money of any value can be issued by the
government after maintaining a minimum reserve of gold and silver in the form
of precious metals. Due to the unlimited elasticity under this system, the
control over the issue of notes becomes loose. This greatly increases the
likelihood of money-oriented inflation. Non-convertible paper money is issued
under this system.
***
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