Question # 1

The goods or items accepted as security for advancing loan should not be:

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Durable

Insured

Under burden

Liquid

Negotiable instruments are defined by Act.

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1881

1857

1694

1935

Negotiable credit instruments does not includes.

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Cheque

ATM card

Draft

Promissory

Who does accept the responsibility for repayment debt

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Guarantor

Personal security

Both a and b

None of the these

The commercial banks provide the following type of loan by discounting the B/E:

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Short term

Medium term

Long term

All of the above

Popular types of loan issued by the bank according to term are

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Two

Three

Four

Five

Long term is advanced against the following security:

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Non-material

Material

Personal

All of the above

Cheque consists of future date is called.

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Out date

Post dated

Anti dated

None of these

Account payee only in the transverse parallel line.

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Bearer cheque

Special crossing

General crossing

None of these

The loans obtained for meeting the administrative expenses and purchase of raw material are:

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Short term loans

Medium Term lonas

Long Term lonas

All of the above

The loan which can be demanded at any time are called

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Short term loans

Demand loans

Overdraft

All the above

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

Which things can be accepted by bank as security at the time of granting loan

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Gold and silver

Property

Shares and debentures of company

All 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 is granted by by bank to account holder on temporary basis called

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Cash credit

Overdraft

Demand loan

None of 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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