Banking Management - Set-Off Means Partial or Total Merging of a Claim of One Person Against Another in a Counter

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Banking Management

Q 1) Account holder X draws a cheque for Rs. 5,000 favouring Rajesh ( a minor aged 13 years ) or, bearer. Rajesh presents the cheque on counter duly signed on the back. What should the banker, do with the cheque of a minor?

(a) reafuse, since no contractual capacity

(b) pay the cheque after inquiring with X

(c) pay to Rajesh without any responsibility of bank

(d) ask Rajesh to bring his parents

(e) Section 26 N.I. Act, 1881, does not allow minor to receive payment

Q.2) payment in `due course` means?

a) on the due date

b) in accordance with apparent signature and specimen

c) in accordance with apparent tenor

d) due to sufficient funds

Q.3) One of the following statements in not true in the right of set-off?

a) set-off means partial or total merging of a claim of one person against another in a counter

claim of the latter against the former.

b) Both debts must be for certain sum.

c) A debt accruing due cannot be set-off.

d) A banker can set-off the credit balance in the guarantor’s account before the liability of the,

guarantor to the bank is determined.

Q.4) Does RBI have the power to control or influence directly or indirectly the interest rates of banks in India and if so, in what manner and to what extent?

Q.5) `Overseas Depository Bank` means?

a) a bank authorized by the issuing company to issue Global Depository receipts against issue,

of Foreign Currency convertible Bonds or ordinary shares of the issuing company.

b) A bank authorized by the government to issue Global Depository receipts against issue of,

Foreign Currency Convertible Bonds or ordinary shares of the issuing company;

c) A bank authorized by the issuing company to issue Global...