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32-Banking Practice and Procedure - Worksheet

This document from Unity University provides a worksheet for students taking the course "Banking Practice and Procedure" to complete. The worksheet contains multiple choice questions, true/false questions, matching questions, and short answer questions about banking concepts and functions. Students are instructed to complete the worksheet on their own after covering the course material and lessons.

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Bereket Desalegn
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245 views

32-Banking Practice and Procedure - Worksheet

This document from Unity University provides a worksheet for students taking the course "Banking Practice and Procedure" to complete. The worksheet contains multiple choice questions, true/false questions, matching questions, and short answer questions about banking concepts and functions. Students are instructed to complete the worksheet on their own after covering the course material and lessons.

Uploaded by

Bereket Desalegn
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as RTF, PDF, TXT or read online on Scribd
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Unity University- College of Distance Education – Banking Practice and Procedure-32

UNITY UNIVERSITY

COLLEGE OF DISTANC EDUCATION

DEPARTMENT OF Accounting and Finance

Banking Practice and Procedure

32
WORKSHEET

Name: _________________________________________________

ID No._________________

Center: _____________________ Semester ___________ Academic Year ____________

This is a worksheet paper you are expected to do on your own. It carries 25 points. The paper
should be completed and mailed to the College of Distance Education. Do not try to complete
the worksheet until you have covered all the lessons and exercises in the course material.

Any questions in the course that you have not been able to understand should be stated on a
separate sheet of paper and attached to this worksheet then your tutor will clarify them for you.

After completing this paper, be certain to write your Name, Id No and Address on the first page
and the answer sheet.

1
Unity University- College of Distance Education – Banking Practice and Procedure-32

Part one: Write true if the statement is correct and false if the statement is incorrect

1. A primary role of banks is connecting those with funds, such as investors and
depositors, to those seeking funds, such as individuals or businesses needing loans.
2. Promissory note is a kind of short term negotiable instrument that holds three parties.
3. A trustee holds money or assets and performs certain functions for the benefit of some
other person called the beneficiary
4. If the check is expired check is called postdated check.
5. One of the objectives of commercial bank is to establish as an institution for maximizing
profits and to conduct overall economic activities

Part Two: Choose the correct answer from the given alternatives

1. Which one of the following is the function of central bank?


A. Preparing the monetary policy
B. Issue of notes and coins
C. Banker’s Bank
D. Lender of the last Resort
E. All
2. Which one of the following is central bank control of foreign currency,
A. For issuance of notes
B. For payments of liabilities
C. For payments of debts.
D. All
3. Central Bank acts as settlement of interbank transactions
A. Clearing house
B. Bankers bank
C. Lender of last resort
D. All
4. Central bank acts as lender during the economic crises?
A. Clearing house
B. Bankers bank
C. Lender of last resort
D. All

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Unity University- College of Distance Education – Banking Practice and Procedure-32

5. Alemu has taken an overdraft from his banker to the extent of Br.26,000 and he has a
balance of Br.16,000 in his SB account. Hence the banker can combine both of these
accounts and claim the remaining amount of Br.10,000 only. This right is called
_____________
A. Right to charge interest C. Rights of incidental charges
B. Right of appropriation D. Right of set- off
A. Rights of Right of general lien
6. Off the following account is free in restrictions of cash withdrawals
A. Current account C. Time deposit
B. Saving account D. Fixed account
7. Of the following the objectives of commercial bank
A. To build up capital through savings.
B. To expedite investments.
C. To extend services to the customers.
D. To maintain economic stability by means of controlling money market.
E. All
8. Commercial Bank introduces locker‟ services to the customers for valuables e.g.
documents, shares, securities.
A. Safe custody value
B. Remittance of Money
C. Act as advisor
D. All
9. When customer deposits money in his account the bank becomes _______ of the
customer and customer __________respectively
A. Creditor and debit C. Debitor and creditor
B. Agent and principal D. All

10. Which one of the following the relationship between a bank and a customer ceases on:
A. The death, insolvency, lunacy of the customer.
B. The customer closing the account i.e. Voluntary termination
C. Liquidation of the company
D. All

Part three: matching


3
Unity University- College of Distance Education – Banking Practice and Procedure-32

Matching
A B
1 Web banking A. a person who acts as a caretaker of something
2 Debit cards B. as a person employed to do any act for another or
to represent another in dealings with third
persons
3 "bailor". C. The person delivering the goods
4 Agent D. It is used to electronically withdraw funds
directly from the cardholders’ accounts.

5 Custodian It is a service offered by banks that allows account


holders to access their account data via the internet

Part Four: Short Answer

1. List and describe the general functions of commercial bank?


2. List and describe the relationship between the banker and depositor?
3. List the duties of collecting banker?

Answer Sheet
Part I: True or False
1. _________
2. _________
3. _________
4. _________
5. _________

Part II: Multiple Choices Part III: Matching

1. _______ 6. ______ 1. ________


2. _______ 7. ______ 2. ________
3. _______ 8. ______ 3. ________
4. _______ 9. ______ 4. ________
5. _______ 10. ______ 5. ________

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