JAIBB question Laws and Practice of Banking (LPB) July 2018

Ka Set

THE INSTITUTE OF BANKERS, BANGLADESH (IBB)

Banking Diploma Examination, July, 2018 

JAIBB 

Laws and Practice of Banking (LPB)

Time--3 hours 

Full marks-l 00

Pass marks--50 

[N B --The figures in the right margin indicate full marks. Answer any five questions of which two must be from Group B ]

Group A 

                                                                                                                                                                                                                                                           Marks

1. Write short notes on any five of the following:--                                          4x5=20 

(i) On-line Banking 

(ii) Quarde Hasana 

(iii) FACTORING 

(iv) Working Capital 

(v) Crypto Currency 

(vi Garnishee Order 

(vii) Loan Rescheduling 

(viii) Document of Title of Goods 

2 (a) What are the main functions of a Central Bank?                          8

(b) What is the role played by the Bangladesh Bank in the economic development of the country?                                                                                                7

(c) State whether each of the following statements is “True” or “False’:---

      (i) A crossed cheque can be made ‘open’ by the payer of the cheque. 

      (ii) SLR can be changed by an order of the Government. 

      (iii) Hypothecation is preferable to pledge. 

      (iv) Fixed Deposits are demand deposits. 

      (v) Green cards are issued to the farmers.

3. (a) What do you men by a Paying Bank? What are its duties and responsibilities? 

(b) Explain the protection offered by law to a Paying Banker.

(c) As branch manager how will you deal with the following cases? Give reasons :

     (i) Your customer sends a crossed order cheque drawn by A in favour of your bank crediting to his (the customer’s) account with you. 

     (ii) Mr. X presents for encashment an uncrossed cheque payable to him or bearer and refuses to endorse the cheque. Will it make any difference if the amount is small?

4. (a) Define Negotiable Instruments as per the Negotiable Instruments Act, 1881.

(b) What are the instruments that fall under the parview of the Act?

(c) What do you mean by Endorsement? What are the different types of Endorsement?

(d) State whether the following endorsements are correct and if not, give the correct form of endorsement :--

Payee	Endorsement
(i) Sarif Ahmed and Latif Ahmed	For self and Sharif Ahmed and Latif  Ahmed
(ii) Ms. Jahanara Begum wife of R. Karim	Ms Jahanara R. Karim

5. a) Discuss the relationship between a Banker and a customer. Discuss this relationship in respect of the following :                                               15

1. A Current Account
2.  A Loan Account
3. A Fixed Deposit Account
4.  A Safe Deposit Account
5.  Sale and purchase of securities on behalf of a customer

(b) State whether each of the following statements is “True” or “False”:              

    (i)   An accommodation bill is not a bill of exchange under the Negotiable Instrument Act

    (ii)  A Current Account cannot be opened in the name of a Minor

    (iii) No interest is paid on Savings Account

    (iv) A cheque marked “not negotiable” is not transferable.

    (v) A Fixed Deposit Receipt matured and due for payment on holiday may be paid on the previous working day

6. (a) What are the aspects to be examined when a new loan proposal is received by a banker?                                                                                                               10

(b) Describe the procedure for sanction of a loan against Insurance Policy.       5

(c) Your Rangpur branch has sent a cheque drawn on Janata Bank, Dhaka to your main branch of Dhaka for collection. What action shall you take on receipt of the cheque and how shall you collect cheque amount from the Janata Bank and remit the amount to sender.                                                                                                                                    5

7.Distinguish between any four of the following :                       5x4=20

(i)    Bridge Finance and Lease Finance

(ii)  Broad Money and Narrow Money

(iii) Cheque and Bank Draft

(iv)  Share and Debenture

(v)  Lien and Mortgage

(vi)  Money Market and Capital Market .

(vii)  Unit Banking and Branch Banking

Group B

8. (a) What do you mean by Money Laundering?                                5

(b) What are the different ways a money launderer launders money?

(c) How a banker can discharge his responsibilities in the context of the law recently  enacted by the Government to prevent Money Laundering?

9. (a) What is Bankruptcy Law? When can a suit be filed in the Bankruptcy court?  8   

    (b) What are the rights and privileges a bankrupt is deprived of?   5

    (c) Describe how Bankruptcy Act helps in managing the loan portfolio of a bank. 6

10. (a) What is “Hundi”? Can a hundi be regarded as negotiable instrument?  5

(b) How does Hundi affect Bangladesh economy?                                      5      

(c) To check Hundi Bangladesh Bank has issued some guidelines. What are those guidelines?

(d) Mr. Babul Ahmed had a fixed deposit of Tk. 25,000 in Janata Bank, Dhanmondi Branch, Dhaka. On its maturity Mr. Babul Ahmed sent Mr. Kutubuddin with the Fixed Deposit Receipt to branch for encashment duly attesting Mr. Kutubuddin’s signature and authorizing him to receive payment. How will the branch deal with it?

11. (a) What do you mean by Transfer of Property Act? What kind of properties can be transferred under the Transfer of Property Act and who can transfer?          3+7=10

(b) Can a minor affect the act of Transfer?                                                               5

(c) Mr. Azad executed a deed of sale in respect of a certain piece of land in favour of Mr. Badal on 1040-2016 and in respect of the same land he executed a deed of sale in favour of Mr. Kama] and on the same date the deed in favour of Kamal was registered. Thereafter on 17-10-2016 the deed in favour of Badal was registered. Who would get priority?               5