Principles of Banking I Com Part 2 MCQS Set 3

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Principles of Banking I Com Part 2 MCQS


According to registration , bank is divided into followings categories:
All of the above
Scheduled and non-scheduled bank
Central and commercial bank
Home and foreign bank

Person having an account with a bank or having some similar relation with the bank is called
Consumer
Debtor
Owner
Customer

According to Sir John Paget, a bank is an institution which :
Advances loan
Honours the cheques
Accepts the deposits of general public
All of them

Whose role is consitered important in the beginning of cheque:
Merchants
Three
Goldsmiths
Money lenders

Popular types of loan issued by the bank according to term are
Five
Two
Four
Three

The letter of credit which can be endorsed to another person is called:
Special L.C
Resolving L.C
Transferable L.C
None of the above

Cheque is always crossed by
Drawee
Holder
All of the above
Drawer

Formula for calculating total credit creation:
New deposit x Reserve ratio/1
New deposit x 1/Reserve ratio
None of the above
Reserve ratio x 1/New deposit

Which letter of credit is accompanied by some documents
Confirmed
All the above
Non-documentary
Documentary

What is meant by margin requirement
To advance loan less than the value of security
To give less amount as interest than the amount of loan
To advance loan equal to the value of security
To advance more loan than the value of security

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