Question # 1

Who does accept the responsibility for repayment debt

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Guarantor

Personal security

Both a and b

None of the these

What is meant by the principle of diversity regarding issuance of loan

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Lending only to those who can repay the debt at short notice

Lending against some material security

Lending in terms of sure repayment

Lending to different businesses or individuals

Main uses of bank funds are

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Advancing loans

Direct investment

Both a and b

None of these

The numebr of parties in a cheque are.

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Two

Five

Four

Three

The types of credit instrument are.

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Four

Two

three

None of these

Long term loan period is consisted of:

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Days

Months

Years

All of the above

Cheque is always payable on.

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Phone call

At sight

After banking hour

On demand

The word credit has been derived from a latin word.

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Credo

Credere

Creditor

None of these

Security is a powerful tool that ensure tthe repayment of:

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Deposit

Dept

Interest

None of the above

What is meant by hypothecation

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To hand over the goods or documents of title to goods by a customer to the bank as a security against a debt

To hand over the documents of property by a customer until the repayment of debt

A type of security in which neither the ownership nor the possession passes to the bank

A receipt of loan which shows that money has been borrowed against an immovable property as a security

The loan which can be demanded at any time are called

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Short term loans

Demand loans

Overdraft

All the above

Which of the following is a highly marketable security

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Document of title to goods

Shares and debentures

Immovable property

All the above

Negotiable credit instruments does not includes.

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Cheque

ATM card

Draft

Promissory

On which of the following amount of overcraft, bank receives interest:

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Fix

Total

Used

All of the above

The main sources of bank's fund are

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Own capital

Deposits

Loan from other banks

All the above

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Principles of Banking Icom Part 2 English Medium Chapter 8 Online Test MCQs With Answers

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