12th class Principle of Banking chapter 7 Short Question with answers for ICOM part 2 Principle of Banking Chapter 7

Question # 1

What are demand loans.

Ans 1: These loans have no fixed determine period and can be demanded by bank at any time. Generallyk these lonas are issued to rich and trust worthy people.

Question # 2

What are teh important terms of loans.

Ans 1: Lien: According to section 171 of contract act 1872, lien means the legal or equities right of lender on the borrower's property, which has been kept as security againts a certain loan.
Ans 2: Pledge: According to section 172 of contract act 1872, pledge in acutal delivery or right as weel as the possession of the good to the bank against cetain lona. the ownership of the property remasins with the pledger . In case of non paymnet the banker serves a notice.
Ans 3: Hypothecation: In case of hypoothercation goods are made available as security for the bad debts without transerring them to the lender. It means the possession and ownershp of goods remain with the borrower.
Ans 4: Mortage: Mortagage is written agreemnet between borrower and the lender for obtaining loan against immoveable property.

Question # 3

What is the secured loans.

Ans 1: The loans which are granted agaisnt certainvaluables as security are called secured loans.

Question # 4

What are the major sources of bank funds.

Ans 1: 1- Bank's own capital 2- Deposits from customers
Ans 2: 3- Loan from other banks 4- Reserve funds.

Question # 5

What precautions should be kept in mind by the bank while advancing loans.

Ans 1: 1- Resonable sale price 2- Safety of loan 3- Diversification of loan.
Ans 2: 4- Incerese in value 5- Durability 6- Liquidity

Question # 6

What is the princples of advancing loan.

Ans 1: 1- Peinciple of security 2- Princi;le of safety
Ans 2: 3- Principle of liquidity 4- Principal of diversity
Ans 3: 5- Principle of income 6- Principal of repayment

Question # 7

Define Security

Ans 1: when a bank of any financial insitution advances loan to a party. it takes some valuable as security against debt.

Question # 8

Define continuous gurantee.

Ans 1: In such type of guranteee the gurantor promises to re pay all the loans taken by the borrower form time to time.

Question # 9

What are the qualities of a good security.

Ans 1: Un disputed, increase in price , Sources of income , Durabiliyt
Ans 2: Low storage cost, Easy saleable, liquidity.

Question # 10

What is the unsecrued loans.

Ans 1: The loans which are not granted against certain valuables as security are called unseured loans.

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12th class Principle of Banking chapter 7 short question with answers for ICOM part 2 Principle of Banking Chapter 7

Online Short Questions For Chapter 7 "ICOM Part 2 Principles of Banking Chapter 7 Short Questions Preparation "

Principles of Banking (E.M) - ICOM Part 2 Principles of Banking Chapter 7 Short Questions Preparation

What are demand loans.

What are teh important terms of loans.

What is the secured loans.

What are the major sources of bank funds.

What precautions should be kept in mind by the bank while advancing loans.

What is the princples of advancing loan.

Define Security

Define continuous gurantee.

What are the qualities of a good security.

What is the unsecrued loans.

Prepare Complete Set Wise Questions For Chapter 7 "ICOM Part 2 Principles of Banking Chapter 7 Short Questions Preparation "

Set 1

ICOM Part 2 Principles of Banking Chapter 7 Short Questions Preparation - Set 1

What are demand loans.

What are teh important terms of loans.

What is the secured loans.

What are the major sources of bank funds.

What precautions should be kept in mind by the bank while advancing loans.

What is the princples of advancing loan.

Define Security

Define continuous gurantee.

What are the qualities of a good security.

What is the unsecrued loans.

12th Principles of Banking Chapter 7 Test

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