H.S 2nd Year Finance Solved Question Paper 2022
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2022
FINANCE
Full Marks: 100
Pass Marks: 30
Time: Three hours
The figures in the margin indicate full marks for the questions.
1. (a) In which year ‘Lead Bank Scheme’ was introduced? 1
Ans:- In December, 1969.
(b) Who issues one-rupee note? 1
Ans:- Government of India.
(c) Write the full form of OCTEI. 1
Ans:- Over The Counter Exchange of India.
(d) IFCI was established in 1948. 1
(e) State the meaning of Hundi. 1
Ans:- The term "hundi" originates from the Sanskrit word "hundi", which translates to "to collect", and refers to a traditional bill of exchange. All indigenous negotiable instruments written in an oriental language are known as hundis.
(f) Define General Crossing of a cheque. 1
Ans:- According to section 123 of the Negotiable Instruments Act, 1881, "Where on a check the words 'and the Company' or any abbreviation thereof are added between two parallel transverse lines, or between two parallel transverse lines, either without the words The addition of 'not negotiable' would be treated as a crossing and the check would normally be treated as crossed.
(g) What is meant by Bank Overdraft? 1
Ans:- Bank overdraft is a short-term borrowing facility that allows a bank account holder to withdraw more money than is available in their account, up to a pre-agreed limit.
(h) Name two subsidiaries of SBI. 1
Ans:-
(i)State Bank of Patiala. (1st May, 1960)
(ii) State Bank of Indore. (1st January, 1960)
2. Write a note on Presidency Banks. 2
Ans:- Presidency Banks were three banks established in India during the British Raj. These banks were the Bank of Bengal (1806), the Bank of Bombay (1840), and the Bank of Madras (1843). They were created to provide banking facilities for the British government, and later for Indian citizens, and played a significant role in the development of modern banking in India. The Presidency Banks were instrumental in introducing modern banking practices and technologies to India and were instrumental in providing financing for British trade and the expansion of the British Empire in India. The three Presidency Banks were merged in 1921 to form the Imperial Bank of India, which later became the State Bank of India.
3. What is the meaning of underwriting? 2
Ans:- Underwriting is one of the most important functions in the financial world in which a person or an institution undertakes the risk associated with an enterprise, an investment, or a loan against insurance and the stock market.
4. Write two objectives of IBRD. 2
Ans:- Objective of IBRD or World Bank: The World Bank was established to promote long-term foreign investment credit on reasonable terms.
The objectives of the bank are given below:
(i) To assist in the reconstruction and development of the areas of the members by facilitating investment of capital including for production purposes.
(ii) Promotion of private investment by way of guarantee or participation in loans and other investments made by private investors.
5. What is Post-dated Cheque? 2
Ans:- post-dated cheque is a cheque that is written for a future date, and the recipient cannot cash it until that date. It is often used as a form of payment when the issuer does not have sufficient funds at the time of writing the cheque but expects to have enough funds by the date specified. Post-dated cheques are commonly used for recurring payments, rent, and loan repayments.
6. Who is a Paying Banker? 2
Ans:- A paying banker is one who in the ordinary course of his banking business accepts checks drawn by his customers and makes payment to the parties, provided the checks presented to him are valid in all respects. It is the obligation of the bank to honor the check issued by the customer if the following three conditions are satisfied:
(a) Sufficient balance is available in the customer's account.
(b) The check is properly drawn and presented.
(c) No legal restriction has been imposed on the payment.
7. Write three differences between current account and saving deposit account. 3
Ans:- Current Deposit Account: These accounts are generally maintained by traders and businessmen who have to make several payments every day. Depositors can withdraw from these accounts as many times as they can deposit. Normally no interest is paid on this account.
Savings Deposit Accounts: The objective of these accounts is to encourage and mobilize small savings of the public. Certain restrictions are imposed on the depositors regarding the number of withdrawals and the amount that can be withdrawn in a given period. Check facility is provided to the depositors. The rate of interest paid on these deposits is lower as compared to fixed deposits.
8. Write three objectives of Money Market. 3
Ans:- The objectives of the money market are:
(i) To provide short term funds to the borrowers at reasonable rates. And since the securities are all short-term, the lenders will also benefit from the liquidity.
(ii) Converts the savings and idle money of the public into effective investment. It is beneficial for the entire economy.
(iii) Allows RBI to regulate the level of liquidity in the economy. This is one of the main functions of RBI.
9. Write three functions of NABARD. 3
Ans:- Functions of NABARD:
The important functions of NABARD are as follows:
(i) It acts as an apex refinance agency for institutions providing investment and production credit for promoting various developmental activities in rural areas.
(ii) It provides short-term loans to Regional Rural Banks, State Co-operative Banks and other financial institutions approved by the Reserve Bank. Such credit is granted by NABARD for a period of up to 18 months.
10. Write a note on Endorsement in blank. 3
Ans:- A blank or general endorsement is one in which the endorser puts his signature on the instrument without specifying the name of the endorsee.
11. Under what circumstances banker must pay a cheque? 3
Ans:- Deposits accepted by a banker are his liabilities repayable on demand or otherwise.
Hence the banker is bound to honor his customer's check provided the following conditions are satisfied:
(i) Adequacy of Funds: The banker's obligation to honor a customer's check will arise only if the customer's funds with the banker are at least equal to the amount of the cheque.
(ii) Applicability of funds: Funds should be available for checks drawn on the customer's account.
(iii) Must be duly paid to the banker: It means that the check is complete in all respects and is presented during banking hours. Also the check should not be post-dated.
Or
State the minimum reserve system of note issue. 3
Ans:- Minimum Reserve System is an important method of note issuance adopted by the Reserve Bank of India. Under this system, paper money of any value can be issued by the government after maintaining a minimum reserve of gold and silver in the form of precious metals. Due to the unlimited elasticity under this system, the control over the issue of notes becomes loose. This greatly increases the likelihood of money-oriented inflation. Non-convertible paper money is issued under this system.
12. Write a note on social control of Commercial Bank. 5
Ans:- The growth of commercial banking during the first three plan periods has been uneven. Some banks were lending money to large and medium scale industries without demanding proper security.
Bank branches were opened only in big cities. Rural areas were neglected. Banks discriminated between rural and urban and agriculture, trade and industry, between the private sector and the public sector. Banks were financing industries that were producing luxury goods. The government realized that this type of growth was not in line with the planning. The increase appeared defiant in several ways. There was an increasing demand for bank credit for the development of agriculture, industry and self-employment.
Hence it was necessary for the banking system to attract savings. Therefore, the government felt that there is a need for social banking in comparison to capitalist banking. In 1967 a scheme of social control was launched. The government enacted the Banking Laws Amendment Act in 1968.
This act has given more power to the government to control banking. The purpose of this act was to ensure a more equitable distribution of the resources of the banking system. Priority sectors like agriculture, small scale industries, public sector and self-employment were to get their fair share in getting bank finance. Apart from this, banks have to reconstitute their board of directors.
The Government established the National Credit Council in 1968. The finance minister was the Chairman of the Council and the Governor of the Reserve Bank was the Vice-Chairman.
The main functions of the National Credit Council were:
(a) To assess the quantum of credit required for the economy as a whole.
(b) To provide guidelines for distribution of credit to priority sector.
(c) To ensure equitable distribution of credit in the economy.
Or
Discuss the organisational set-up of the RBI. 5
Ans:- Organization of Reserve Bank of India: Originally, the Reserve Bank of India was constituted as a shareholder bank with a share capital of Rs 5 crore, divided into fully paid-up shares of Rs 5 lakh each. 100 each. The entire share capital was owned by private individuals except Rs 220000, which was allotted to the Central Government of India. The Reserve Bank of India Act was passed in September 1934 and it began functioning as a central bank on April 1, 1935. RBI was nationalized on January 1, 1949. of India Act, 1934. For the successful operation of RBI, the country was divided into five regions, namely Mumbai, Kolkata, Chennai, Delhi and Rangoon (the Rangoon office was closed in 1947). The affairs of the bank are controlled by the central board of directors.
The Central Board consists of the following members:
(a) a Governor and not more than four Deputy Governors, may be appointed by the Central Government for such term, not exceeding five years, as may be fixed by the Central Government at the time of their appointment.
(b) four directors, one from each of the four local boards, to be nominated by the Central Government.
(c) The other ten directors are nominated by the Central Government.
(d) such other Government officer as may be nominated by the Central Government.
In addition to the Central Board, there are local boards for the four zones or regions of the country with headquarters at Mumbai, Kolkata, Chennai and Delhi. These regions are called the Western, Eastern, Northern and Southern regions.
Each local board consists of five members who are appointed by the central government for four years.
Local Boards undertake the function of advising the Central Board of Directors on such matters of local importance as may be generally or specifically referred to them or perform such duties as may be assigned to them.
Management of Reserve Bank of India:- The management of Reserve Bank of India is vested in the Central Board of Directors.
The Governor of RBI is the chief executive authority. He is the chairman of the central board of directors.
The Governor has the power of general management to direct the affairs and business of the Bank, subject to the regulations made by the Central Board. In the absence of the Governor, the Deputy Governor (Governor) nominated by him will exercise his powers.
The Central Board should meet at least six times in a year and at least once in a quarter. The Board delegates some of its functions to a committee called the Committee of the Central Board.
The Governor of RBI is assisted by four Deputy Governors and four Executive Directors.
The central office of the Reserve Bank of India is located in Mumbai. The Reserve Bank of India has local head offices and branches at many places for its two major departments, viz., Issue and Banking Departments. State Bank of India in places where the Reserve Bank does not have an office. The group represents it as its agent/sub-agent.
13. Discuss the features of Indian Capital Market. 5
Ans:- The features/features of the capital market are:
(i) The capital market deals only in long- and medium-term funds like shares, debentures etc.
(ii) Capital market includes both primary and secondary market. The primary market is for issuing new capital and the secondary market facilitates the buying and selling of old securities.
(iii) Capital market includes both individual and institutional investors.
(iv) Capital market helps in converting public savings into productive investment. Such movements result in capital formation and economic growth of the country.
(v) The capital market functions through intermediaries. Like underwriter, banker, stock broker etc.
Or
Write the functions of IMF. 5
Ans:- Functions of IMF:
The important functions of IMF are explained below:
(i) Maintaining exchange stability: One of the basic objectives of the IMF was to establish reasonable exchange stability and discourage fluctuations in exchange rates. Stability
The main arrangements made by the Fund to ensure the exchange rate are as follows:
(a) Each member country declares the par value of its currency in terms of gold or in terms of the US dollar.
(b) Members agree to keep the free convertibility of their currencies above or below par value not more than 1%.
(c) When devaluation becomes necessary a member may devaluation up to 10% by simply notifying the fund, but larger or subsequent changes require the approval of the Governing Body.
(d) Members are prohibited from trading in multiple exchange rates.
(e) Members are prohibited from buying or selling gold at prices other than the declared par value.
(f) The Fund acts as the international lender of last resort and provides financial assistance to member countries to meet temporary deficits in their balance of payments.
(ii) Advice on economic and monetary matters: The Fund advises the member on economic and monetary matters as it is in a position to do so in view of its particular situation. Thus the fund helps the member countries to stabilize their economies.
(iii) Training: IMF is helping in the economic development of the member countries through various training programmes. These training programs are mainly related to economic development, international payments, data collection, analysis and financial system. Generally, the training period is of 6 to 12 months and this training is given to the higher officials of government, central bank and financial department.
(iv) Borrowing Money: IMF is an important financial institution. The bulk of its financial resources come from quota contributions from member states. In addition, for international settlement, the government, central banks or private institutions of member institutions of industrialized countries borrow from banks.
(v) Fund Lending: IMF provides various types of credit facilities to its members. If a member has less currency than its quota with the IMF, the difference is called an tranche. Member countries can automatically draw up to 25% on their reserve tranches when represented to the IMF for balance of payments needs. No interest is charged on such withdrawals, but it has to be repaid within a period of 3 to 5 years.
(vi) Maintenance of Liquidity: Another important function of the IMF is to maintain the liquidity of its resources. Member countries borrow from the fund by lending their currency in return. To avoid accumulation of such in-demand currencies with funds, borrowing countries are required to repurchase their currencies by repaying their loans in convertible currencies.
(vii) Interest Charges: The IMF charges interest from the borrowing countries for the credits extended to them. The interest rate is nominal for the first instalment, but increases as the loan amount increases. Its purpose is to discourage member countries from additional borrowing.
(viii) Other Functions: In addition to the above-mentioned functions,
IMF performs some other functions which are:
(a) To remove disparities in international payments.
(b) To make available the scarce or hard currency to the member countries.
(c) Emphasizing the stability of exchange rates.
(d) Assistance in balancing economic development, preferably in the less developed countries.
(e) To assist productive capital investment.
14. Write the features of Negotiable Instruments. 5
Ans:- The main features of a negotiable instrument are mentioned below:
(i) Easy to transfer: Negotiable instruments are very easy to transfer from one place to another and from one person to another by delivery or endorsement.
(ii) It is a written document: Negotiable instrument must always be in writing. An oral promise or an order can never be a negotiable instrument.
(iii) Modes of Payment: Negotiable instrument is always payable in two modes. The two modes are order and bearer. It means that the negotiable instrument is payable to the order or to the bearer.
(iv) Transferee can sue in his own name: A negotiable instrument represents a debt and shows the right of the creditor to recover something from his debtor. The creditor may recover this amount or he may assign his possession to someone else, in which case the creditor is entitled to sue the instrument in his own name in case of dishonor without notice to the debtor.
Or
Explain the duties of a Collecting Banker. 5
Ans:- The duties of the collecting banker towards his customers are as follows:
(i) Due care and diligence in collection of cheques: The collecting banker is bound to show due care and diligence in the collection of checks presented to him. If a check is handed over to the banker for collection, it is expected to be presented to the drawee banker within a reasonable time.
(ii) Giving notice of dishonour: When a check is dishonoured, the collecting banker is bound to give notice of the same to his customer within a reasonable time. When a check is returned for endorsement of endorsement, a notice must be sent to its customer. If he fails to give such notice, the collecting banker shall be liable to the customer for any loss which may have been caused to the customer by reason of such failure.
15. Write the functions of Stock Exchange. 5
Ans:- The important functions performed by the stock exchange are explained as follows:
(i) Ready Market and Liquidity: The stock exchange provides a ready and continuous market where investors can convert their money into securities and securities into money easily and quickly. It provides a convenient meeting place for buyers and sellers of securities. Regular transactions in securities ensure an increase in the liquidity of securities.
(ii) Valuation of securities: The stock exchange helps in determining the prices of various securities which reflect their true value. It enables correct valuation of securities. The forces of demand and supply work independently in the stock exchange and help in the valuation of securities. The prices at which transactions take place are recorded and made public as market quotations to help investors know the current market prices of various securities.
(iii) Mobilization of Savings: Stock exchanges help in mobilizing surplus funds of individuals and institutions for investment in securities. In the absence of facilities for quick and profitable settlement of securities, such funds may remain dormant.
(iv) Capital Formation: The stock exchange not only mobilizes the existing savings but also motivates the public to save money. It provides opportunities for investment in various securities which give high returns. It helps in rational allocation of available funds and directs the flow of savings into the most productive channels. Thus, the stock exchange facilitates capital formation in the country.
(v) Protection of investors: Stock exchanges ensure fair dealing and safety of money. members of the stock exchange have to Some operate under rules and regulations that seek to check the exploitation of ignorant investors. In this way, the stock exchange acts as a watchdog of the interests of the investors.
(vi) Encourages Industrialization: The stock exchange provides capital to industry and commerce. They finance the government but increase the investment opportunities available to finance the production of goods and services, and promote a desirable allocation of funds among different industries.
(vii) Helps government in policy making: All government policies have their clear reflection on national science through stock exchange whether they are economic policies or monetary or fiscal. Therefore, to accelerate the pace of industrialization and economic development, the government can generate stability in its policies through their proper analysis and interpretation.
(viii) Economic Barometer: The stock exchange is a very sensitive barometer of the business conditions in the country. Booms, recessions and other important events affect the prices of securities. Price trends on the stock exchange reflect the economic climate in the country. The reasons for the change in the business environment can be easily analyzed from the ups and downs of the stock exchange.
Or
What are the objectives of LIC? 5
Ans:- The objectives of LICI are given below:
(i) To popularize life insurance business in rural and urban areas.
(ii) To ensure fair returns and efficient service to the policy holder at reasonable rates of premium.
(iii) To provide life insurance cover by offering suitable plans of insurance.
(iv) To ensure complete safety or security of the money of the policy holder.
(v) To mobilize public savings effectively.
16. State the five differences between Bill of Exchange and Promissory Note. 5
Ans:- Differences between Bills of exchange and Promissory Note:
A. Definition: A bill of exchange is a written order issued by a creditor to a debtor demanding payment for goods or services received. A promissory note is a written promise made by a debtor to pay a creditor a specific sum of money on a certain date or on demand.
B. Parties involved: A bill of exchange involves three parties: the drawer (creditor), the drawee (debtor), and the payee (the person who is entitled to receive the payment). A promissory note involves two parties: the maker (debtor) and the payee (creditor).
C. Time of payment: A bill of exchange specifies a due date for payment, which is typically a few months after the date of issue. A promissory note can specify a due date, or it can be payable on demand.
D. Negotiability: A bill of exchange is a negotiable instrument, which means that it can be transferred to a third party by the payee. The third party then becomes the new payee and can further transfer the bill to another party. A promissory note is not generally negotiable, and it cannot be transferred to a third party.
E. Acceptance: A bill of exchange requires acceptance by the drawee before it becomes a legally binding instrument. On the other hand, a promissory note does not require acceptance and becomes legally binding as soon as it is signed by the maker.
17. Write the circumstance under which a banker can dishonoured a cheque. 5
Ans:- The bank can dishonor the check in the following cases.
A. Insufficient Funds: If the account holder does not have enough funds in their account to cover the amount of the cheque, the bank can dishonour the cheque.
B. Irregular Signature: If the signature on the cheque does not match the specimen signature provided by the account holder, the bank can dishonour the cheque.
C. Stale Cheque: If the cheque is presented for payment more than three months after the date on the cheque, the bank can dishonour the cheque.
D. Overwriting or Alterations: If the cheque has any alterations or overwriting without authentication, the bank can dishonour the cheque.
E. Frozen Account: If the account holder's account is frozen due to any legal or regulatory reasons, the bank can dishonour the cheque.
18. State the factors that affect cash reserve of a commercial bank. 5
Ans:- The following factors affect the cash reserve:
(i) Development of Banking Habit: The dependence of the people on banks for keeping their liquid resources determines to a certain extent. Cash balance maintained by banks. If people prefer to settle their transactions through cheques, banks cannot maintain huge cash balances with them. But where people are not used to using check facility and prefer to receive and pay in cash, banks have to maintain comparatively huge cash balances with it.
(ii) Locality Conditions: The conditions of the place where the bank operates also affect the cash balance maintained by the bank. A bank will have to maintain a large cash balance if the locality is inhabited by a business community that has a large number of people and faster trade transactions than in an area inhabited by farmers.
(iii) Existence of banker's clearing house: In a city where clearing house facility is available, bankers can maintain less cash balances than in a city where this facility is not available. This is because the existence of a clearing house enables a bank to settle its accounts with other banks by paying or receiving the difference of checks drawn in its favor or against it.
(iv) Nature and number of accounts: The nature of deposits, for example savings, current or fixed and the number of accounts also affect the amount of cash balances to be maintained by the bank. In case of Fixed Deposit account holders, the bank does not have to maintain a large cash balance with them. But in case of existing deposit holders it has to maintain a large cash balance. If a banker has a small number of large deposit holders, he will have to keep a large cash balance as there may be a concerted move on their part to withdraw money. But if a bank has a large number of small depositors, the banker may keep comparatively less cash balance as the chances of such a concrete move are remote.
(v) Nature of Advances: A bank which has used a major part of its surplus funds in discounting good bills can manage with less cash balance as compared to a banker who has diverted its funds to other types of loans. invests. This is because such bills can be easily rediscounted with the Reserve Bank.
(vi) Reserves held by other banks: If some bank in the same locality maintains more cash balances and wins the confidence of the public, other banks will have to follow suit.
19. Discuss the principles followed by a commercial bank in investing its funds in securities. 8
Ans:- The principles of sound lending by commercial banks are:
(a) Security: The first and foremost principle of lending is to ensure the security of the money lent. It means that the borrower is in a position to repay the loan along with interest as per the terms of the loan agreement. Repayment of the loan depends on the borrower's (i) ability to pay and (ii) willingness to pay. Therefore, the banker must exercise utmost care in ensuring that the venture or business for which the loan is being sought is sound and that the borrower is capable of carrying it out successfully.
(b) Liquidity Banks are essentially intermediaries for short term funds. Hence, they lend funds for short term and mainly for working capital purposes. Hence, loans are mainly payable on demand. The banker must ensure that the borrower is capable of repaying the loan on demand or within a short period.
(c) Profitability: Commercial banks are profit making institutions. They should employ their money profitably so as to earn sufficient income out of which interest can be paid to the depositors, salary to the employees and various other establishment expenses and dividend can be distributed to the shareholder. Can go The sound principles of lending for high profitability do not sacrifice safety or liquidity.
(d) Purpose of the loan: Before giving a loan, the banker should check the purpose for which the loan is sought. If the loan is given for a productive purpose, the borrower will be more profitable and will be able to repay the loan.
(e) Diversification: An important principle of lending is “diversification”. While giving loans, the banker should follow the principle of diversification. Accordingly, the banker should not give a major portion of the loan to a particular individual or a particular firm or a particular An industry. If the banker gives loans and advances to a number of firms, individuals or industries, the banker will not suffer huge losses even if a particular firm or industry does not repay the loan.
20. Discuss the various agency services rendered by commercial bank. 8
Ans:- The various agency services provided by commercial banks are discussed below:
(a) Remittance of Money: Banks help their customers to transfer money from one place to another through cheques, drafts etc.
(b) Collection and Payment of Credit Instruments: Banks collect and pay various credit instruments such as cheques, bills of exchange, promissory notes, etc.
(c) Buying and selling of securities: Banks buy and sell various securities like shares, stocks, bonds, debentures etc. on behalf of their customers. Banks neither give any advice to their customers regarding these investments nor charge them any fee for their service, but only act as a broker.
(d) Income Tax Consultancy: Sometimes bankers engage income tax experts not only to prepare income tax returns for their customers but also to help them in getting refund of income tax in suitable cases.
(e) Acting as Trustee and Executor: Banks preserve the will of their customers and make them executors after their death.
(f) Acting as representative and correspondent: Sometimes banks act as representative and correspondent of their customers. They receive passports, passengers, tickets, safe passage for their customers and letters on their behalf.
21. Explain the characteristics of Non-Banking financial institutions. 8
Ans:- The important features of Non-Banking Financial Institutions are given below:
(i) NBFIs accept deposits repayable at the end of specified time and some NBFIs receive funds from the Government.
(ii) The liabilities of the NBFI are not accepted in the form of money as a means of payment of the loan.
(iii) An increase in money deposits in the hands of NBFIs will not lead to an increase in the money supply. In this case, the circulating currency is transferred from the depositors to the NBFIs.
(iv) NBFI deals with medium- and long-term funds in the capital market.
(v) NBFIs are heterogeneous groups doing diverse business in the financial system of the economy.
(vi) People invest their surplus funds in NBFIs to earn income rather than safety and liquidity.
(vii) NBFIs supply finance for acquiring immovable property.
(viii) NBFIs are regulated by their special statutes.
(ix) Mobilization of savings by NBFIs is strongly influenced by the interest rate. The operation of mobilizing savings and investment is governed by the prevailing rate of interest.
Or
Discuss the objectives and functions of Industrial Development Bank of India. 8
Ans:- Objectives:
IDBI is the apex financial institution which was meant for the following objectives:
(i) To plan, promote and develop industries to fill the gap in the industrial structure in India.
(ii) co-ordinating the work of institutions engaged in the financing, promotion or development of industries and assisting in the development of such institutions.
(iii) Providing technical and administrative assistance for the promotion, management or expansion of industry.
(iv) To undertake market and investment research and surveys as well as techno-economic studies in connection with the development of the industry.
IDBI Functions:
The various functions of IDBI are as follows:
(i) Financial Assistance: IDBI provides direct financial assistance to industrial concerns in the following forms:
(a) the granting of loans and advances, and
(b) subscribing to the purchase or underwriting the issue of stocks, bonds or debentures.
IDBI also provides indirect financial assistance to small financial institutions such as State Financial Corporations, State Industrial Development Corporations, Regional Rural Banks, Cooperative Banks, Commercial Banks.
Those institutions aided include:
(a) refinancing of loans advanced by institutions,
(b) subscribing to their shares and bonds.
(c) Rediscounting of Bills.
(ii) Development Assistance: Creation of Development Assistance Fund is a special function of IDB(I). This fund is used to provide assistance to those industries which are not able to get funds mainly due to heavy investment or low. required rate of return. The financial resources of the Fund come mainly from contributions made by the Government in the form of loans, gifts, donations etc. and from other sources.
(iii) Promotional Activities: Apart from providing financial assistance, IDBI also undertakes various promotional activities such as marketing and investment research, techno-economic surveys. It provides technical and administrative advice for the promotion, expansion and better management of industrial concerns.
22. Explain the significance of different kinds of endorsement. 8
Ans:- As per Negotiable Instruments Act, 1881
Approvals are of the following types:
(i) Blank or general endorsement: An endorsement is said to be blank or general, if the endorser signs the back or face of the instrument without specifying the name. The effect of this endorsement is that the instrument becomes payable to bearer, even though it was originally payable to order.
(ii) Absolute or Specific Endorsement: If an endorser signs his name and adds a direction to pay the amount mentioned in the instrument to or for a specified person, such endorsement is said to be absolute or specific. called support.
For example, if the endorsement contains the words 'pay to Ram' after the signature of the endorser, it is an endorsement in full.
(iii) Restrictive Endorsement: An endorsement is said to be restrictive when it restricts or restricts the further negotiability of the instrument, it only entitles the holder of the instrument to receive the amount on the instrument for a specified purpose.
(iv) Partial endorsement: When the endorsee intends to transfer by endorsement only a part of the amount of the instrument, the endorsement is said to be partial. A partial endorsement does not work as a negotiation of the instrument.
(v) Conditional Endorsement: An endorsement is conditional or qualified if it limits or negates the liability of the endorser.
Or
Explain briefly about the different types of crossing of cheques with suitable examples. 8
Ans:- A check is said to be crossed when two parallel transverse lines are drawn on the left corner of the check with or without words. The negotiability of the check does not affect the crossing. The crossing of a check refers to an instruction to the banker regarding payment of the cheque. Crossing is an instruction to the paying banker that the check should be made payable to the banker only. Crossing of check is very safe as the holder of the check is not allowed to cash it over the counter. An crossed check not only provides protection to the holder of the cheque, but also to the receiving and depositing bankers.
There are two types of crossing over a cheque:
(i) Normal crossing (ii) Special crossing
(i) General Crossing: As per section 123 of the Negotiable Instruments Act, 1881, "where on a check there is a joining of two parallel transverse lines, or between two parallel transverse lines the words and company' or any abbreviation thereof. Simply, or So that addition with or without the words 'not negotiable' would be treated as a crossing and the check would normally be treated as crossed.
In case of special crossing, if the banker's name is added on top of the cheque, such addition is known as special crossing.
(ii) Special Crossing: As per section 124 of the Negotiable Instruments Act 1881, "Where a check is added to the name of the banker with or without the words "not negotiable", that addition shall be deemed to be a crossing. And the check shall be treated as specially crossed and the banker shall be treated as crossed."
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Time Management: By solving the question paper, students can also practice managing their time effectively during the exam. They can learn how to budget their time and prioritise their answers to maximize their chances of success.
Exam Pattern: AHSEC Class 12 Finance Solved Question Paper 2022 will give you an idea about the exact format and pattern of the question paper. You can learn about the number of questions, the weightage of each section, and the marks distribution for each topic.
Previous Year Questions: The question paper also includes questions that have been asked in previous years. This means that students can get a sense of the types of questions that have been asked in the past, which can help them to prepare more effectively for the upcoming exam.
Frequently Asked Questions
Q: How often should I use the AHSEC Class 12 Finance Solved Question Paper 2022?
Ans: It is recommended to use the solved question paper regularly as part of your overall study plan. You can use it to practice answering questions, review key concepts, and improve your time management skills. It's also a good idea to use it closer to the exam date as a final review tool.
Q: Will solving AHSEC Class 12 Finance Solved Question Paper 2022 guarantee me good marks in the exams?
Ans: While solving the solved question paper can be a valuable tool for studying and preparing for the exams, it is not a guarantee of good marks. It's important to use the solved question paper in conjunction with other study materials and methods, and to put in the time and effort required to fully understand the material.
Q: How can I get the AHSEC Class 12 Finance Solved Question Paper 2022?
Ans: The solved question paper can be obtained from (www.thetreasurenotes.in) The Treasure Notes Website one of the genuine and trustable site for Students in Assam.
Q: Is it necessary to solve the AHSEC Class 12 Finance Solved Question Paper 2022?
Ans: While solving the solved question paper is not strictly necessary, it can be a valuable tool for studying and preparing for the exams. It can help you to practice answering questions, review key concepts, and improve your time management skills. It's also a good idea to use it closer to the exam date as a final review tool.
Q: Can I use AHSEC Class 12 Finance Solved Question Paper 2022 for other boards exams as well?
Ans: The solved question paper is specifically designed for the AHSEC board exams. However, the concepts and topics covered in the paper are generally applicable to other boards as well, so it can be used as a practice tool. But it's always better to consult the official website of that particular board for more information.
Conclusion
Overall, AHSEC Class 12 Finance Solved Question Paper 2022 can be an extremely helpful resource for students preparing for their upcoming examinations. It can be used to practice, review, and improve time management skills, and can also give you an idea about the exam pattern and previous year questions.