AHSEC| CLASS 12| FINANCE| SOLVED PAPER - 2023| H.S. 2ND YEAR
2023
FINANCE
Full
marks: 100
Pass
marks: 30
The
figures in the margin indicate full marks for the questions
1. (a) What was the previous name of State Bank of India? 1
Ans:- Imperial
Bank of India.
(b) Money
market deals in short term funds. (Fill in the blank) 1
(c) In which year IMF was
established? 1
Ans:- In
July 1944.
(d) A cheque is defined under
which section of the Negotiable Instrument Act? 1
Ans:- According to Section 6 of the
Negotiable Instruments Act, 1881, the term check is defined as “a bill of
exchange drawn on a specified banker and not expressed to be payable otherwise
than on demand.”
(e) Give an example of material
alteration of cheque. 1
Ans:- Any change in the original
condition of the check such as changing the date, amount, name of the payee,
the word 'ORDER' after the name of the payee or the word 'ORDER' in the
endorsement is called material alteration.
'A' issued a check for Rs. In
favor of 500 'B', which changed the figure of 500 to 5,000 without the
manufacturer's consent.
(f) What is liquidity ratio? 1
Ans:- It shows the relationship
between liquid assets and current liabilities. It is also known as the acid
test ratio or quick ratio.
(g) In which year was Regional
Rural Bank established? 1
Ans:- On
26 September 1975.
(h) What is meant by discount rate in case
of Bill Market? 1
Ans:- Bill discounting is a simple process of
selling a bill of exchange to a bank or financial institution at a price below
its face value before its maturity.
The bank discount rate is the
interest rate for short-term money market instruments such as commercial paper
and treasury bills.
2.
What is Scheduled Commercial Bank? 2
Ans:-
Scheduled
commercial banks in India are those banks listed under the Second Schedule to
the Reserve Bank of India Act, 1934. These banks are regulated by the Reserve
Bank of India (RBI) and are authorized to conduct banking activities in India.
3.
Write two features of Mutual Fund. 2
Ans:-
Features of Mutual Fund:-
(i) Convenience: With online investing in
mutual funds becoming popular, you do not need to physically visit a fund
house. You can invest in any fund of your choice using your phone or computer.
To make a purchase you simply need to visit the AMC portal or app and log in
here.
(ii) Flexibility of investment: This is one of the attractive
features offered by mutual funds. You can choose between SIP or lump sum to
invest your money in mutual funds.
4.
Write two objectives of GICI. 2
Ans:- The Government Insurance
Corporation of India plays a vital role in the development, regulation and
stability of the Indian insurance industry. Its objectives are to provide
reinsurance services, support market development, ensure financial security and
maintain regulatory compliance.
5.
Give the meaning of holder-in-due course. 2
Ans:- “holder in due course” means
any person who has become the owner of a promissory note, bill of exchange or
check for consideration, if payable to bearer, or to the drawee or endorser
thereof, if payable to order, So he has to become its owner before the amount
mentioned therein becomes due. , and without sufficient reason to believe that
any defect existed in the title of the person from whom he derived his title.
6.
Write the significance 'Account Payee' crossing on cheque. 2
Ans:- The importance of crossing a
check is that it can be collected only from the drawee bank into the bank
account and cannot be encased by the holder. (Negotiable Instruments Act,
Sections 123 and 126) As a result, the check issuer enjoys security and
protection from crossing of the cheque.
7.
What is Hypothecation? Write two features of hypothecation. 3
Ans:- Hypothecation means offering
an asset to the lender as collateral security. Ownership remains with the
lender, and the borrower receives possession. In case of default by the
borrower, the lender can exercise its ownership rights to seize the asset.
Hypothecation occurs when an asset
is pledged as collateral to secure a loan. The owner of the property does not
give up ownership, possession, or ownership rights, such as the income
generated by the property. However, if the terms of the agreement are not met
the lender can seize the property.
Or
What is Cash Credit? Give its
advantages. 3
Ans:- Cash credit is a facility to
withdraw money from a current bank account without credit balance, but it is
limited to the extent of credit limit which is decided by the commercial bank.
Interest on this facility is charged on the current balance and not on the
credit limit given by the bank.
Cash loan offers the following
benefits:
(i) Helps in meeting working
capital requirements.
(ii) Interest will be payable
only on the amount utilized.
(iii) Flexibility.
(iv) Loan arrangement is
comparatively easy.
8.
What is Cash Reserve Ratio? What are its significance? 3
Ans:- Cash reserve ratio is a
specific minimum amount of total customer deposits that a commercial bank is
required to reserve in the form of cash or deposits with the RBI. The CRR rate
will be decided as per the guidelines of the Central Bank.
Importance of Cash Reserve
Ratio:
The cash reserve ratio
maintained by banks holds importance for both banks as well as depositors.
In the case of depositors, when
banks honestly maintain the required CRR rate, depositors do not have to worry
about their deposits as a portion of their money remains safe with the RBI in
the form of reserves.
9.
Give a note on Imperial Bank. 3
Ans:- Imperial Bank was established
in 1921 by merging the Presidency Banks, Bank of Bombay, Bank of Bengal and
Bank of Madras. The Imperial Bank was given the right to run a clearing house
and manage government funds. The job of issuing currency notes remained with
the government. Imperial Bank of India Act.
10.
Write three differences between Scheduled Bank and Non-Scheduled Bank. 3
Ans:-
Three differences between scheduled banks and non-scheduled banks:-
|
Scheduled Bank |
Non-Scheduled Bank |
|
(i)
A scheduled bank is a banking company or institution with a minimum paid-up
capital of Rs. 5 lakh which does not harm the interests of the depositors. (ii)
Registered in the Second Schedule to the Reserve Bank of India Act, 1934. (iii)
Placed with RBI. |
(i)
Non-scheduled banks in India are those which are not subject to the norms and
regulations of RBI or which do not fall under the category of scheduled
banks. (ii)
Not registered. (iii)
He did not own RBI but kept it with himself. |
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