Question # 1

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

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Fix

Total

Used

All of the above

If the bank refuses to pay the amount of cheque.

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Discounting

Crossing

Dishonoring

None of these

Two transverse parallel lines on the face of cheque.

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Crossingof cheque

Dishnoring of cheque

Endorsed of cheque

Retirementof cheque

Negotiable credit instrument.

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Control credit

Stop credit

Create credit

None of these

Cheque is always payable on.

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Phone call

At sight

After banking hour

On demand

The main sources of bank's fund are

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Own capital

Deposits

Loan from other banks

All the above

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

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Durable

Insured

Under burden

Liquid

Cheque consists of future date is called.

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Out date

Post dated

Anti dated

None of these

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 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

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

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

Cheque is a credit instrument.

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Partial negotiable

Negotiable

Non negotiable

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

Bank should advance loans to those people who are strong

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Financially

Domestically

Politically

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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