Series OSS Code No. 209
CASH MANAGEMENT AND HOUSEKEEPING
(Theory) Paper I
Time allowed : 3 hours Maximum Marks : 60
General Instructions :
(i) All questions are compulsory.
(ii) Marks allotted to questions are indicated against each of them.
(iii) Questions 1 to 5 are long answer type questions. Their answers should normally not exceed 150 words each.
(iv) Questions 6 to 9 are short answer type questions. Their answers should normally not exceed 70 words each.
(v) Questions 10 to 18 are very short answer type questions. Their answers should not exceed 30 words each.
(vi) Be brief and precise in your answers.
1. Describe the procedure you would adopt to deposit cash and a cheque in your bank account. What particulars are required to be filled in, in the slips to be used for this purpose ? Explain.
OR
What do you understand by single and double lock systems ? Explain their advantages and disadvantages. Which system is generally adopted in banks ?
2. “Both a cheque and a demand draft contain an order to pay a certain amount, but they are different from each other.” Explain how. Can a demand draft be crossed ? Explain the effect of crossing on a demand draft. 6
OR
Name six circumstances in which a banker can refuse payment of a cheque. Give reasons also.
3. Explain the meaning and significance of the following items shown in a bank’s Balance Sheet : 6
(a) Capital and Reserves and Surplus
(b) Money at Call and Short Notice
OR
Distinguish between :
(a) Mail Transfer and Telegraphic Transfer
(b) Order Cheque and Bearer Cheque
4.What do you understand by (a) advances secured by tangible assets and (b) unsecured advances ? What procedure is adopted in case of the former ? Explain.
OR
Describe the procedure that you would, as a banker, follow to verify the stock kept in the godown of a borrower.
5. What suggestions would you, as a banker, give to the borrowers regarding the location and maintenance of the godown and the fire safety measures ? Explain. 6
OR
Distinguish between :
(a) Gift Cheque and Traveller’s Cheque
(b) Current account and Savings account
6. What is a Voucher ? Why do banks use a voucher for each transaction ? 3
7. What is a withdrawal form ? Why is it used ? How does it differ from a cheque ? 3
8. What is meant by Strong Room in a bank ? Where is it generally located in a bank ? 3
9. What points would you like to examine while checking the Medical Bill of a bank employee ? 3
10. Why do the banks adopt the practice of double checking of every transaction ? Give an example also. 2
11. Describe two main conditions of fire insurance. 2
12. What is a token ? For what purpose is it used in a bank ? What is inscribed on it ? 2
13. What do you understand by soiled and slightly mutilated notes ? Can they be exchanged ? If yes, by whom ? 2
14. Explain two reasons for granting long leave to bank employees. 2
15. What is a Trial Balance ? Why is it prepared. 2
16. What do you understand by scroll ? Why do banks keep scroll at two places ? 2
17. Why do the branches of a bank send periodical statements to their head office ? Mention any two such statements. 2
18. Give the names of the largest public sector bank and any private sector bank in India. 2