AHSEC| CLASS 11| FINANCE| SOLVED PAPER - 2023| H.S. 1ST YEAR
2023
FINANCE
Full Marks: 80
Pass Marks: 24
Time: 3 hours
The figures in the margin indicate full marks for the questions
1. (a) What is meant by finance? 1
Ans:- "Finance is a professional activity that relates to the acquisition and protection of capital funds at all objectives of the professional enterprise".
(b) Write a short-term source of finance. 1
Ans:- The main sources of short -term financeing are (i) business credit, (ii) commercial bank loans, commercial letters, a specific type of principal notes, and (iv) are safe loans.
(c) The Reserve Bank of India was established on April 1, 1935 (Fill in the blank) 1
(d) What is a Public Sector Bank? 1
Ans:- Public Sector Bank: A bank where the majority stake is held by the government or the central bank of the country.
(e) What is Fixed Deposit Account? 1
Ans:- In a fixed deposit you deposit a lump sum of money in your bank account at a fixed interest rate for a fixed time period. At the end of the fixed deposit period, you receive the amount you invested along with compound interest.
(f) Define Bill of Exchange. 1
Ans:- “Bill of exchange” is an instrument in writing containing an unconditional order, signed by the maker, directing the payment of a certain sum of money to a certain person on demand or at a fixed or determinable future time or to his order. gives. To a certain person or bearer of the instrument.
2. Give the meaning of holder in due course. 2
Ans:- “holder” in due course means any person who becomes the owner of a promissory note, bill of exchange or check for consideration, if payable to bearer, or to the drawee or his indorser, if payable to order. , before it becomes overdue, without any notice, becomes its owner. That the title of the person from whom he had obtained it was defective.
3. Write two uses of ATM. 2
Ans:- ATMs are convenient, allowing consumers to make quick self-service transactions such as deposits, cash withdrawals, bill payments and transfers between accounts.
4. Write two objectives of nationalization of banks. 2
Ans:- Objectives of nationalization of banks:-
(i) To prevent economic power from being concentrated in a few hands.
(ii) To prevent the use of bank funds for anti-social activities.
5. Write two functions of Cooperative Bank. 2
Ans:- Functions of Co-operative Banks Co-operative banks perform a variety of functions to meet the financial needs of their members and contribute to the development of the local community.
Some of the main functions of co-operative banks are:-
(i) Mobilizing savings: Co-operative banks encourage their members to save money by offering various savings schemes and attractive interest rates. Their goal is to promote a savings culture and help individuals and families build financial security.
(ii) Providing credit facilities: One of the primary functions of co-operative banks is to provide credit facilities to their members. They provide loans and advances for various purposes like agriculture, small business, education, housing and personal needs. Cooperative banks aim to support the economic activities of their members and promote local development.
6. State any two differences between Commercial Bank and Development Bank. 2
Ans:- The main differences between commercial banks and development banks are:-
(i) Objective: Commercial banks aim to earn profits for their shareholders by providing a wide range of financial services. Development banks focus on promoting economic growth and supporting long-term investment rather than simply prioritizing profitability, which can have a greater impact on development.
(ii) Functions: Commercial banks provide comprehensive banking services to individuals, businesses and governments, including deposit accounts, loans, payment services and investment products. Development banks specialize in providing long-term financing for infrastructure projects, small and medium-sized enterprises (SMEs), agriculture, housing, education and other priority sectors.
7. Write three long-term sources of finance. 3
Ans:- Sources of long term finance:-
(i) Equity Shares: Equity shares are a long-term financing source for any company.
(ii) Retained Earnings: Retained Earnings is the profit that a company has left after paying all its direct costs, indirect costs, income taxes and dividends to shareholders.
(iii) Preference Stock: Preference shares, commonly known as preferred stock, are shares of company stock with dividends that are paid to shareholders before common stock dividends are issued.
8. Write three features of Foreign Bank. 3
Ans:- Features of foreign banks are:-
Foreign banks have integral characteristics. This makes them different from normal national bank branches.
(i) Foreign banks are present in many countries. They have branches or subsidiaries.
(ii) Foreign banks have access to global markets. They can provide better financial services and products.
(iii) Foreign banks follow more regulations. These include home country and branch country rules.
9. What is meant by chain banking? Write two features of chain banking. 3
Ans:- Chain banking is a form of bank governance that occurs when a small group of people controls at least three independently chartered banks.
Chain banking has two features:-
(i) Chain banking at the time of its development and emergence provided wonderful services to customers, investors in the form of consistent returns and complete control due to its targeted approach.
(ii) Investors ensure that resources are optimally utilized which will maximize profits and efficiency.
Or
Briefly write a note on Lead Bank Scheme.
Ans:- The Lead Bank Scheme aims to establish a Lead Bank in every district of India. The lead bank will coordinate with other banks and financial institutions in the region. Its objective was to ensure effective and efficient use of banking facilities. The scheme also aims to increase credit flow in priority sectors.
10. Write three advantages of Recurring Deposit Account. 3
Ans:- Recurring deposit account has three advantages:-
(i) Easy Eligibility: It is very easy to qualify to open an RD account as the eligibility criteria are usually relaxed.
(ii) Option to take a loan: Many issuers give you the option to take a loan against your RD. Typically, the maximum loan amount you can avail is 90% of your investment. This is one of the major benefits of recurring deposits, as it enables you to get instant access to the funds.
(iii) Disciplined savings: From an early age and stage, you can inculcate the habit of saving in yourself or your children by including recurring deposits in your investment portfolio. This is because RD requires monthly investment and helps you develop the habit of saving systematically.
Or
State the meaning and importance of cheque book.
Ans:- A checkbook is a folder or small book containing pre-printed paper instruments issued to checking account holders and used to pay for goods or services. Checkbooks contain sequentially numbered checks that account holders can use as bills of exchange.
It is more convenient and safer to carry than cash. It is a negotiable instrument which can be endorsed in favor of a third party. These can be easily found if lost.
11. Define endorseemnt. Briefly write any two types of endorsement. 3
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