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 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.

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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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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What is Negotiable Instruments?

• Ans 1: The word "negotiable" means transfer for consideration whereas the word "instrument" means written documents in written which create a right in a favour of some person and which is freely transferable by delivery of edorsment.A negotiable instrument means a promissory note,a bill of exchange or cheaque payable either to the order or bearer of the instrument.

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What is PLS Saving Acount?

• Ans 1: In Pakistan, the Profit and loss sharing (PLS) saving account was introduces in January,1982.PLS Saving account can be opened with small amount.

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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.

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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 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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Mr. Javeed brough an insurance policy against his car worth Rs. 8,50,000 @ 4.25% for 3 years. What total amount will he pay as premium, if he had not claimed and damages during the period? Where depreciation is 10%.

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What is processing Fee?

• Ans 1: Processing fee or charges are the amount deducted by the bank to process the request of the client for financing of vehicle.

Calculate the amount to be received by the heirs of an insured if he died 2 year after buying the policy while the amount of policy = Rs. 50,000 premium is fixed @ 4.2% yearly policy fee @ 0.3% Family income contract @ 0.6% Maturity period = 22 years Bonus @ 4.5% and Rs. 6000 yearly income is promised by the company.

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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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Explain Bank Draft.

• Ans 1: An Order to pay money,draw by one branch of a bank upon another branch of the same bank for an amount of money payable to or order of payee or on demand.The bank draft has an important advantage over a cheque as it would not be dishonered for lack of funds since it is funded instument.

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

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What is processing Fee?

• Ans 1: Processing fee or charges are the amount deducted by the bank to process the request of the client for financing of vehicle.

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Calculate the amount to be received by the heirs of an insured if he died 2 year after buying the policy while the amount of policy = Rs. 50,000 premium is fixed @ 4.2% yearly policy fee @ 0.3% Family income contract @ 0.6% Maturity period = 22 years Bonus @ 4.5% and Rs. 6000 yearly income is promised by the company.

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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 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.

Explain Life Insurance.

• Ans 1: Life insurance is a contract where in a maturity period is agreed between the parties to pay a sim equal is original amount and the profit,which is called bonus.Otherwise it is paid on death or in case of accident etc,whereever comes earlier.A person can also get an insurance policy against old age any disability,the amount of which may range from 10% to 50& of the income of the insurer.

Find the compound profit on Rs. 54000 for one year at 12% per annum.

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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 is meant by Bill of Exchange?

• Ans 1: A bill of Exchange is an instrument in writing containing an unconditional order,signed by the maker ,directing a certain person to pay a certain amount only to or to the order of a certain person or the bearer of the instruments.

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.

At what annual rate of profit would a sum of Rs.680 will increase to Rs. 850 in 3 years and 4 months?

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Explain Bank Draft.

• Ans 1: An Order to pay money,draw by one branch of a bank upon another branch of the same bank for an amount of money payable to or order of payee or on demand.The bank draft has an important advantage over a cheque as it would not be dishonered for lack of funds since it is funded instument.

How many types of bank acounts?

• Ans 1: There are three major types of bank acounts which can be maintained with bank to keep the deposit or surplus fund.
  
  1. Current Acount
  2. Saving Acount
  3. Fixed Acount

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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 Leasing/Financing?

• Ans 1: Lease is a contract whereby the owner of an asset,the lessor,gives the hirer,the lesses.
  There are two types of lease avaible to the business firms.

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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At what annual rate of profit would a sum of Rs.680 will increase to Rs. 850 in 3 years and 4 months?

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What is Down Payment?

• Ans 1: The customers is required to deposit the dwon payment with the bank aslong with application form.

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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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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How many types of bank acounts?

• Ans 1: There are three major types of bank acounts which can be maintained with bank to keep the deposit or surplus fund.
  
  1. Current Acount
  2. Saving Acount
  3. Fixed Acount

Mr. Javeed brough an insurance policy against his car worth Rs. 8,50,000 @ 4.25% for 3 years. What total amount will he pay as premium, if he had not claimed and damages during the period? Where depreciation is 10%.

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What is processing Fee?

• Ans 1: Processing fee or charges are the amount deducted by the bank to process the request of the client for financing of vehicle.