Last Minute preparation for UP Board Class 12: Practice Paper for Elements of Banking

UP Board Class 12th Elements of Banking: Model papers are being provided here for a thorough revision. Elements of Banking is one of the most important subjects for class 12th students of UP. Therefore, students should prepare this for sure. The sample paper is given here along with the tips which are very useful for students of the UP Board of Examination, Class 12th.

The sample paper is especially being prepared for the students by the experts. Practising these questions will hopefully give a positive result.

Q. 1. What are the types of E-commerce?
Ans.  Types of E-commerce
i) Business to Business (B2B): Different banks remain connected to each other for business transactions. Generally, B2B does 80 per cent business of E-commerce.
ii) Business-to-Consumer (B2C): The Business-to-Consumer eCommerce is related to the transactions and relationship between businesses and the end customers. This is mainly to do with the retail E-commerce trade that takes place online.
iii) Consumer-to-Consumer (C2C): These are mainly conducted through a third party that provides an online platform for these transactions. This consists of electronic transactions of products and services between two customers.
iv) Consumer-to-Business (C2B): This proves to be very relevant for crowdsourcing projects. In this case, individuals make their items or services and sell them to companies.

Q. 2. What is E-Banking?  How does the system work?
Ans. Meaning of E-Banking
Banking Business which is carried out by electronic method.
By mechanical medium, banks vastly perform various functions such as- transaction of cash, cash management, maintaining of accounts etc.
Nowadays, banks reach their customers through ATMs, telephonic banking, internet banking and E-commerce.
Working System
Banks give a personal identification number to its customers under E-banking.
With the help of this number, the customer can keep a check on their regular transactions as well as other activities going on in the account sitting at home.
Working system divides the banking business into two forms – Business to Business and Business to Customer.
Q. 3. What are the causes of failure of Indian Banks in the field of foreign exchange?
Ans. Following are the main causes for the failure of Indian Bank in the field of foreign exchange:
Shortage of Capital
Q.4. What are the relations between a bank and its customers?
In addition to the above-mentioned relations, the bank also keeps its obligations in certain other respects as follows:
- The bank is bound to honour its customer’s cheques provided the cheques are drawn on proper form, presented in due course within the business hours and funds are sufficient to meet such demands, and there is no other legal bar.

- The bank also fulfils the obligation of undertaking the collection of cheques, bills, drafts, etc.

- If a customer does not pay the loan taken from the bank within the specified time, the banker has the right of lien on the securities and the amounts deposited by the customer in his account. For the payment of debt, the bank has the right to retain any goods or securities of his customer coming into its hands in the capacity as a banker. However, this right can not be exercised without giving notice to the customer.
Q.5. What is chit fund?
Chit fund is the voluntary organization of a group of persons for providing financial aid to the members. These organizations are found in large numbers in big cities, such as Kolkata, Chennai, Delhi, Kanpur, Ahmadabad etc.