Matric Part 1/9th Class General Math Chapter 4 Short Questions Test With Answer for Unit 4 Financial Mathematics

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What is Operational False?

• Ans 1: It is short-term lease which is cancelable at the option of the firm leasing the assets.Such leases are commonly used for leasing such items as computer hardware,vahicles and eqiupment etc.

Mrs. Javed invests in Saving Scheme Rs. 800 at 6% per annum and Rs. 1,200 at 7% per annum. What is her total amount of profit on these two investments?

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What are the Parties of bill of Exchange?

• Ans 1: Drawer: the person who draw the bill. Drawee:the person in whose favour the bill drawn. Payee:the persons to whom the payment is made. Cheaque: A bill of exchange drawn on a specfied bank and not expressed to be payable,otherwise then on demand .

Mr. Nadeem insured shop @ 3% for 3 years, the depreciation rate is 5% yearly. If he paid on amount of Rs. 21000 as the first premium, what is the worth of his shop. If he got a claim of Rs. 200,000 after two years, how much benfits did he get?

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A company borrowed Rs. 6,600 from Bank Alfalah at 8% simple markup per annum.How much did the company owe to the bank at the end of the 11 months?

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What is Formula of Calculation of Profit?

• Ans 1: The rates of Profit are declared by bank on six month or on annual basic. Profit(simple)=Principle*time*rate/100

What is Online Banking?

• Ans 1: Electronic based banking services provided by devices such as ATM ,.POSs,Automated Clearing House,Network,Internet or Wire.In other words, online banking is a system of transmitting and executing instruction for banking transtions in a real time through electronic telecommunications and computerized links between bank and customers via telephone line satelite or automated teller machines.

What is Pay Order?

• Ans 1: Pay order is like a cheaque,issued by bank on the request of its customer or in payment of its own expenses or dues,drawn on itself,to pay a specified sum of money to the order of specfied person.Pay Orders are usually issued by the bank on receipt of full amount involved.which means it would not be retruned unpaid due to lack of funds.it is also called banker cheaque of cahseri's cheaque.

What is Fixed/Time Deposit Acount?

• Ans 1: Fixed or time deposit acount, as the name implies are deposits kept with a bank in an acount for a certain period of time ranging from 3month to 5 years.

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What is Commercial Banking?

• Ans 1: A banking business which is related to the accepting of deposits,advancing and undertakes other services for its client is caled commercial banking.

What is Foreign Currency Acounts?

• Ans 1: A foreign Currency acount is the acount maintained with the bank in foreign currency,like Dollars,Pounds,Euro etc.Foreign Currency acounts can be operated in Current Saving,Fixed accounts.Rate of profit in a foreign acount is very nomial as compared to local currency accounts.

A bank increased the rate of profit from 3.5% to 4% per annum. Find how much more profit Saeed would recieve if he deposited Rs. 6400 in the bank for 6 months at the new profit rate.

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What are the Parties of bill of Exchange?

• Ans 1: Drawer: the person who draw the bill. Drawee:the person in whose favour the bill drawn. Payee:the persons to whom the payment is made. Cheaque: A bill of exchange drawn on a specfied bank and not expressed to be payable,otherwise then on demand .

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Ms. Maria bought an insurance policy @ 3.25% for her car for 3 years. Her 1st premium is Rs. 26000. Tell price of her car. Also calculate the amounts of her 2nd and 3rd premium.

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How long would Rs. 1250 to be deposited at 6% per year simple profit to gain Rs. 750 simple profit?

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Define Types of Bank acounts?

• Ans 1: Current Acount : Very popular accounts with high degree of liquidity.
• Ans 2: Saving Acount : An important source of fund for the bank.
• Ans 3: Fixed Acount : An attractive source of funds for long term lending and investment purposes.

What is Credit Card?

• Ans 1: A card indicating that the holder has been granting a line of credit.It enables the holder to make purchases or with draw cash up to prearranged ceiling.The credit granted can be settle in fully by the end of a specified periodor can be settled in parts.with the balance taken as extended credit.

What is Pay Order?

• Ans 1: Pay order is like a cheaque,issued by bank on the request of its customer or in payment of its own expenses or dues,drawn on itself,to pay a specified sum of money to the order of specfied person.Pay Orders are usually issued by the bank on receipt of full amount involved.which means it would not be retruned unpaid due to lack of funds.it is also called banker cheaque of cahseri's cheaque.

Mr. Nadeem insured shop @ 3% for 3 years, the depreciation rate is 5% yearly. If he paid on amount of Rs. 21000 as the first premium, what is the worth of his shop. If he got a claim of Rs. 200,000 after two years, how much benfits did he get?

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XYZ Bank charges 2.25% per month simple markup on presonal loans. If Ali borrows Rs. 6,400 for a period of 2 years / month, find the total markup he has to pay to XYZ Bank.

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What is Commercial Banking?

• Ans 1: A banking business which is related to the accepting of deposits,advancing and undertakes other services for its client is caled commercial banking.

In a certain years Javed puts Rs. 600 in a private bank at the end of March and Rs. 400 in the same bank at the end of June. The bank offers 3% per annum simple profit rate. Find the total amount Javed recieves from the bank at the end of December in the year.

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What is Credit Card?

• Ans 1: A card indicating that the holder has been granting a line of credit.It enables the holder to make purchases or with draw cash up to prearranged ceiling.The credit granted can be settle in fully by the end of a specified periodor can be settled in parts.with the balance taken as extended credit.

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A bank increased the rate of profit from 3.5% to 4% per annum. Find how much more profit Saeed would recieve if he deposited Rs. 6400 in the bank for 6 months at the new profit rate.

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Find compound profit on Rs. 600 for 4 year at 6 percent per annum.

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What is Online Banking?

• Ans 1: Electronic based banking services provided by devices such as ATM ,.POSs,Automated Clearing House,Network,Internet or Wire.In other words, online banking is a system of transmitting and executing instruction for banking transtions in a real time through electronic telecommunications and computerized links between bank and customers via telephone line satelite or automated teller machines.

What is Formula of Calculation of Profit?

• Ans 1: The rates of Profit are declared by bank on six month or on annual basic. Profit(simple)=Principle*time*rate/100

Mr. Adil bought a running business worth Rs. 10,00,000 and got a cliam of Rs. 500,000for actual damages. How much loss had he recovered through insurance?

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What is Fixed/Time Deposit Acount?

• Ans 1: Fixed or time deposit acount, as the name implies are deposits kept with a bank in an acount for a certain period of time ranging from 3month to 5 years.

Find out the compound markup on Rs. 250,000 for one year @ 14% compounded annually.

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What is Commercial Banking?

• Ans 1: A banking business which is related to the accepting of deposits,advancing and undertakes other services for its client is caled commercial banking.

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Mr. Ahmad Ali insured his house worth Rs. 75,00,000 @ 2% for 4 years, calculate the amount paid in 4 years. While the rate of depreciation is 10% yearly.

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A bank increased the rate of profit from 3.5% to 4% per annum. Find how much more profit Saeed would recieve if he deposited Rs. 6400 in the bank for 6 months at the new profit rate.

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What is Foreign Currency Acounts?

• Ans 1: A foreign Currency acount is the acount maintained with the bank in foreign currency,like Dollars,Pounds,Euro etc.Foreign Currency acounts can be operated in Current Saving,Fixed accounts.Rate of profit in a foreign acount is very nomial as compared to local currency accounts.