Question # 1

The types of credit instrument are.

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Four

Two

three

None of these

Long term is advanced against the following security:

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Non-material

Material

Personal

All of the above

On every cheque bank gets.

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Tax

Profit

Duty

Commission

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

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

Long term loan is advanced against the following security:

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Non-material

Material

Personal

All of the above

The loans which are issued for the period of one to five year called

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Demand loans

Short term loans

Medium term loans

Long term loans

Cheque consists of future date is called.

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Out date

Post dated

Anti dated

None of these

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

The loan which can be demanded at any time are called

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Short term loans

Demand loans

Overdraft

All the above

Why does a bank grant loans to businessmen

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To purchase raw material

To pay wages

To pay development expenditures

All the above

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

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

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Two

Three

Four

Five

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

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

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