REVIEW QUESTION
BANKING MONIES RECEIVED
1. Which of the following is not a right or duty which a bank has regarding customers’
affairs?
A
B
C
D
To pay interest to customers on all monies deposited.
To demand immediate repayment of overdrafts.
To hold customers’ property deposited as a security for loan.
To make reasonable charges for its services.
2. Which of the following is not a duty which a customer owes to a bank?
A
B
C
D
To check statements received from the bank.
To inform banks when a cheques is stolen or lost.
To repay overdrafts on demand if required.
To operate their account with care to minimize the risk of fraud.
3. As a general rule, banks must keep customers’ affairs confidential. Which of the
following is not a valid reason for disclosure?
A When a customer has given permission to a third party to obtain a ‘bankers
reference’.
B When there is a public duty to make disclosure.
C When the bank suspects the customer is engaged in illegal activities.
D When disclosure is specifically required by statute.
4. What is a third party cheque?
A
B
C
D
One made payable to another party to whom you owe money.
One which has not been signed by the drawer.
One where the payee of the cheque is someone else.
One which is not dated with today’s date, but which carries a later date.
5. Which of the following are reasons for a bank returning or dishonouring a cheque? (i)
words and figures differ, (ii) insufficient funds, cheque less than guaranteed amount,
(iii) cheque and guarantee card stolen, (vi) cheque unsigned.
A
B
C
D
(i), (ii), (iii), (iv)
(i), (iii), (iv)
(i), (ii), (iv)
(ii), (iii), (iv)