Question One

a. Differentiate between a bearer cheque and an order cheque. (6 marks)

b. Explain and illustrate the various forms by which a cheque may be endorsed.

(8 Marks)

c. Provide six (6) possible reasons for which a cheque will be dishonoured.

(6 marks)

Question Two

a. The issue of high interest rates in Ghana has been of great concern to various stakeholders. Discuss the above statement within the context lending rates charged by universal banks. (10 marks)

b. Showhowtheunderlistedinfluencethelending(interest)ratesofuniversalbanks in Ghana

i. Monetary Policy Committee (5 marks)

ii. Ghana Reference Rate (GRR) (5 marks)

Question Three

It is a criminal offence to issue a dud cheque in Ghana.

a. On the basis of your knowledge in finance and banking, describe briefly the main reason for the criminalisation of the act of issuing dud cheques.

(3 marks)

b. What are the general obligations of universal banks in handling of dud cheques? (8 marks)

c. Discuss the sanctions associated with issue of dud cheques. (9 marks)

Question Four

a. Who will you recognize as a customer of a bank in line with banking practice?

Explain the underlisted roles of the Banker;

b. i. The banker acts as a Bailee

ii. The banker acts as a Debtor

iii. The banker acts as Trustee

iv. The banker acts as an Agent

(4 marks each)

Question Five

a. The Coronavirus (COVID 19) Pandemic has re-emphasised the need to integrate operational risk issues into the strategic management of universal banks.

i. What is a Business Continuity Plan (BCP)? (2 marks)

ii. Explain the relevance of business continuity planning in the operations of

a universal bank. (5 marks)

iii. Explain the key components or elements of a Business Continuity Plan

that banks need to implement. (5 marks)

b. State and explain four (4) forms of information technology (IT) risk that

universal banks in Ghana face. (4 marks)

c. Discuss measures Ghanaian banks could undertake to mitigate each of the risks

stated in (b) above. (4 marks)