Question # 1

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

Parties involved in a cheque.

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A/c holder

Bank

Payee

All of these

Negotiable credit instruments does not includes.

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Cheque

ATM card

Draft

Promissory

In case of mortage, the property remains in the possession of:

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Lender (creditors)

Borrower (debtors)

The government

All of the above

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

Cheque is a credit instrument.

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Partial negotiable

Negotiable

Non negotiable

None of 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

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

On every cheque bank gets.

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Tax

Profit

Duty

Commission

Cheque consists of future date is called.

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Out date

Post dated

Anti dated

None of these

What is called a good security

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Whose price can be determined easily

Which does not have any government restriction

Whose ownership is totally clear

All 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

Security is a powerful tool that ensure tthe repayment of:

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Deposit

Dept

Interest

None of the above

The numebr of parties in a cheque are.

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Two

Five

Four

Three

Cheque is always payable on.

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Phone call

At sight

After banking hour

On demand

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