Banker Customer Relationships MCQs. Understand key banking relationships like debtor-creditor, mortgagor-mortgagee, and more. Learn legal frameworks governing these interactions.
Banker Customer Relationships MCQs – Attempt MCQs Now or watch video here
Question 1: In a Debtor-Creditor relationship between a bank and a customer, who is the debtor when a customer deposits money into an account?
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Correct Answer: B. The bank. When a customer deposits money, the bank owes this amount to the customer, making the bank the debtor.
Question 2: Which legal framework primarily governs the Debtor-Creditor relationship?
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Correct Answer: B. Indian Contract Act, 1872. Contract Law is one of the primary legal frameworks governing Debtor-Creditor relationships.
Question 3: When a bank provides a loan to a customer, what is the role of the bank in this relationship?
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Correct Answer: B. Creditor. In a loan scenario, the bank is the creditor, providing funds to the customer.
Question 4: Which of the following is NOT a relevant legal framework for a Creditor-Debtor relationship?
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Correct Answer: D. Succession Laws. Succession Laws are related to inheritance, not loan agreements.
Question 5: What term is used for the customer who pledges movable assets as collateral for a loan?
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Correct Answer: B. Pledger. The customer who offers the collateral is known as the pledger.
Question 6: Under which act is the Pledger-Pledgee relationship primarily governed?
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Correct Answer: B. Indian Contract Act, 1872. The Indian Contract Act, 1872, governs the Pledger-Pledgee relationship.
Question 7: In a mortgage agreement, who is the Mortgagor?
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Correct Answer: B. The customer. The customer who mortgages their property is the Mortgagor.
Question 8: Which legal act governs the Mortgagor-Mortgagee relationship?
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Correct Answer: C. Transfer of Property Act, 1882. This act specifically deals with property mortgages.
Question 9: What is the role of the Hypothecatee in a hypothecation agreement?
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Correct Answer: B. The bank that receives the security. The bank is the Hypothecatee.
Question 10: Which act is specifically relevant to hypothecation transactions?
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Correct Answer: C. SARFAESI Act, 2002. The SARFAESI Act, 2002, is particularly relevant to hypothecation.
Question 11: In a Principal-Agent relationship, who is the Agent?
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Correct Answer: B. The bank. The bank acts as an agent when instructed to perform financial transactions.
Question 12: Which law governs the Principal-Agent relationship between a banker and customer?
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Correct Answer: B. Indian Contract Act, 1872. The Indian Contract Act, 1872, governs agency relationships.
Question 13: When a customer entrusts valuable items to the bank for safekeeping, what is the bank’s role?
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Correct Answer: B. Trustee. The bank acts as a trustee in safekeeping scenarios.
Question 14: Which legal framework is relevant when a bank manages the estate of a deceased person?
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Correct Answer: C. Succession Laws. Succession Laws and Probate Laws govern the management of deceased estates.
Question 15: In a safe deposit locker facility, what is the bank’s role?
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Correct Answer: A. Lessor. The bank is the lessor, providing the locker facility.
Question 16: When a customer entrusts goods to the bank for safekeeping (not as a pledge), what is the customer’s role?
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Correct Answer: C. Bailor. The customer entrusting the goods is the bailor.
Question 17: When a bank provides financial advice to a customer, what is the bank’s role?
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Correct Answer: C. Advisor. The bank is the advisor in this context.
Question 18: What is the role of the bank when it issues a guarantee on behalf of a customer?
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Correct Answer: B. Indemnitor. The bank is the indemnitor, providing the guarantee.
Question 19: If a customer assigns a debt to the bank, what is the customer’s role in this scenario?
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Correct Answer: B. Assignor. The customer assigning the debt is the assignor.
Question 20: Which legal framework is primarily involved in assignment scenarios?
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Correct Answer: B. Contract Law. Contract Law, along with the Transfer of Property Act, 1882, governs assignments.
Question 21: Which type of transaction establishes a Debtor-Creditor relationship between a bank and its customer?
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Correct Answer: B. When a customer deposits money. Depositing money makes the bank a debtor to the customer.
Question 22: In a Debtor-Creditor relationship, the bank’s primary role is that of a:
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Correct Answer: C. Debtor. When accepting deposits, the bank is the debtor.
Question 23: What is the customer’s role in a Creditor-Debtor relationship when they receive a loan?
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Correct Answer: B. Debtor. The customer becomes the debtor when they take out a loan.
Question 24: Which of these documents is most likely to define the specifics of a Creditor-Debtor relationship?
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Correct Answer: B. Loan agreement. Loan agreements specify the terms of the Creditor-Debtor relationship.
Question 25: What is the nature of the assets in a Pledger-Pledgee relationship?
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Correct Answer: B. Movable assets/securities. These are used as collateral in a pledge.
Question 26: The bank’s role in a Pledger-Pledgee relationship is that of a:
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Correct Answer: B. Pledgee. The bank holds the pledge as the pledgee.
Question 27: What type of property is involved in a Mortgagor-Mortgagee relationship?
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Correct Answer: B. Immovable property. Mortgages involve immovable property.
Question 28: Who holds the mortgage on the property?
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Correct Answer: B. Mortgagee. The bank or lender is the mortgagee.
Question 29: How is possession handled in a Hypothecator-Hypothecatee relationship?
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Correct Answer: B. Possession remains with the customer. Hypothecation does not involve transfer of possession.
Question 30: Which law specifically addresses actions a bank can take in case of default in a hypothecation agreement?
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Correct Answer: C. SARFAESI Act, 2002. This act allows banks to take action in case of default.
Question 31: What is the customer known as in a Principal-Agent relationship with the bank?
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Correct Answer: B. Principal. The customer is the principal who gives instructions.
Question 32: When the bank acts on behalf of the customer, it is fulfilling the role of an:
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Correct Answer: B. Agent. The bank acts as an agent for the customer.
Question 33: In a Trustee-Beneficiary relationship, who benefits from the entrusted items/assets?
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Correct Answer: B. Beneficiary. The beneficiary is the one who benefits.
Question 34: What is the bank’s role when appointed to manage the estate of a deceased person?
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Correct Answer: A. Trustee or Executor or Administrator. The bank takes on these roles in estate management.
Question 35: In a bank’s safe deposit locker facility, what is the customer who uses the locker called?
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Correct Answer: B. Lessee. The customer renting the locker is the lessee.
Question 36: When a customer entrusts valuables to the bank for safekeeping (not as a pledge or in a locker), the bank is the:
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Correct Answer: D. Bailee. The bank becomes the bailee, responsible for the goods.
Question 37: The customer who receives financial advice from the bank is the:
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Correct Answer: B. Client. The customer is the client receiving advice.
Question 38: When a bank provides a guarantee or indemnity, it acts as the:
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Correct Answer: A. Indemnitor. The bank provides the indemnity.
Question 39: In an assignment, the party to whom a right/debt is transferred is the:
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Correct Answer: B. Assignee. The assignee receives the right or debt.
Question 40: Which law is most relevant to the concept of indemnity in banking transactions?
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Correct Answer: B. Contract Law. Contract Law governs indemnity agreements.
