Question # 1

Main uses of bank funds are

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Advancing loans

Direct investment

Both a and b

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

If the bank refuses to pay the amount of cheque.

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Discounting

Crossing

Dishonoring

None of these

The numebr of parties in a cheque are.

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Two

Five

Four

Three

The document which reveals the ownership of goods kept on port:

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Bill of lading

Dock warrant

Delivery order

Railway receipt

Negotiable instruments are defined by Act.

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1881

1857

1694

1935

The word credit has been derived from a latin word.

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Credo

Credere

Creditor

None of these

Cheque is a credit instrument.

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Partial negotiable

Negotiable

Non negotiable

None of these

Popular types of loan issued by the bank according to term are

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Two

Three

Four

Five

The loan which can be demanded at any time are called

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Short term loans

Demand loans

Overdraft

All the above

The loan which is granted by by bank to account holder on temporary basis called

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Cash credit

Overdraft

Demand loan

None 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

Security is a powerful tool that ensure the repayment of:

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Deposit

Debt

Interest

None of the above

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

Which of the following is a highly marketable security

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Document of title to goods

Shares and debentures

Immovable property

All the above

The types of credit instrument are.

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Four

Two

three

None of these

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