QUIZ-5

QUIZ-5

1.Combining of accounts of customers is usually resorted to when

a) one account of the customer shows debit balance and the other credit balance

b) one account of the customer is time barred and the other is not c) both accounts are showing debit balance, one is secured other is not

d) both accounts are showing credit balance; one is active and the other one is dormant

e) None of these

2.While exercising the right of Set off, the banker is advised to issue reasonable notice 

a) to avoid wrongful return of cheque

b) to fulfill statutory requirements

c) to recover all the dues from the customer

d) to threaten the customer

e) none of these

3.In banker’s Parlance, ‘ Set off’ refers to

a) setting off legal proceedings if the borrower agrees to make payments

b) setting off dues from one customer against dues to another customer to save reserve requirement

c) setting off amount due from bank to one customer against amounts due from the same customer to the bank

d) adjusting interest due from the customer on the loan against the due on Fixed deposit account

e) none of these 

4.Banker’s General Lien is not available if the

a) securities are received for safe custody

b) securities deposited are bearer bonds

c) value of the security is less than the amount due

d) securities pledged for a particular loan

e) None of these

5.Banker’s lien is called implied pledge because

a) it is governed by an Agreement

b) it is related to movable properties

c) it is to secure a debt

d) the banker has a right to sell the security

e) None of these

6.Bankers Lien is called ‘General Lien’ because

a) It is very general and has no special rights

b) The Right is generally available but not always

c) The Right is available under the General Clause

d) It is not a Particular Lien .i.e. it can be exercised for all his dues payable

e) None of these

7.The Right of Lien refers to 

a) Right of the Debtor to forego the securities

b) Right of the creditor to sell securities of the debtor

c) Right of the Creditor to retain possession of securities belonging to debtor

d) Right of the debtor to pledge the securities

e) None of these

8.The rule in Clayton’s case applies in the case of

a) joint accounts

b) sole-proprietorship accounts

c) partnership accounts

d) all types of running accounts

e) None of these

9.The rule in Clayton’s case applies in the case of 

a) accounts having credit balances

b) clean advances only

c) term loans only

d) running accounts having debit balances

e) None of these

10.To avoid operation of the rule of Clayton’s case a banker should rule-off the account which is overdrawn and open a fresh account for further transaction when 

a) a new partner is admitted to a partnership firm

b) the bank receives the notice of death or insolvency of a partner or a joint account holder

c) there is a change in the board of directors of a company

d) if case of death of a managing director of a Joint Stock Company

e) None of these 

Ans.

1	2	3	4	5	6	7	8	9	10
a	a	c	a	d	d	c	a	d	b