Description : The permission given to a bank customer to draw cheques in excess of his current account balance is called - (1) a personal loan (2) an ordinary loan (3) discounting a bill of exchange (4) an overdraft
Last Answer : (4) an overdraft Explanation: Overdrafts is an extension of credit from a lending institution when an account reaches zero. An overdraft allows the individual to continue withdrawing money even if the ... available balance goes below zero. In this situation the account is said to be "overdrawn."
Description : A trad-able form of loan is normally termed as ________ A. Certificate of Deposit (CD) B. Inter Bank term Money C. Bill Re-discounting D. Debt Instrument E. None of the Above
Last Answer : D. Debt Instrument Explanation: A trad-able form of loan is normally termed as a Debt Instrument. They are usually obligations of issuer of such instrument as regards certain future cash flow representing Interest & Principal, which the issuer would pay to the legal owner of the Instrument.
Description : "Legal Tender Money" refers to : (1) Cheques (2) Drafts (3) Bill of exchange (4) Currency notes
Last Answer : (4) Currency notes Explanation: Legal tender is a medium of payment allowed by law or recognized by a legal system to be valid for meeting a financial obligation. Paper currency and coins are common ... tender in many countries. Legal tender money is a type of payment that is protected by law.
Description : “Legal Tender Money” refers to : (1) Cheques (2) Drafts (3) Bill of exchange (4) Currency notes
Last Answer : Currency notes
Description : Consider the following schemas: Branch = (Branch-name, Assets, Branch-city) Customer = (Customer-name, Bank-name, Customer-city) Borrow = (Branch-name, loan-number, customer account-number) Deposit = ... )) (C) πcustomer-name(σbalance> 10000(Borrow)) (D) σcustomer-name(σbalance> 10000(Borrow))
Last Answer : (A) πcustomer-name(σbalance> 10000(Deposit))
Description : A commercial bank law creates credit only if it has - (1) Cash in the vault (2) Excess reserves (3) Permission of Reserve Bank of India (4) (4) Cooperation of other banks
Last Answer : (1) Cash in the vault Explanation: A commercial bank is a profitseeking business, dealing in money and credit. It is a financial institution dealing in money in the sense that it accepts deposits of ... received as the deposits to needy people. So it creates credit from the cash deposits with it.
Description : A commercial bank law creates credit only if it has (1) Cash in the vault (2) Excess reserves (3) Permission of Reserve Bank of India (4) Cooperation of other banks
Last Answer : Cash in the vault
Description : The law regarding negotiable instruments is contained in __________ A. The Bill of exchange Act 1881 B. The Banking Regulation Act 1949 C. Cheques Act, 1881 D. The Negotiable Instruments Act, 1881
Last Answer : D. The Negotiable Instruments Act, 1881 Explanation: The Negotiable Instruments Act, 1881 – An Act to define and Law relating to negotiable instruments which are Promissory Notes, Bills of Exchange and cheques.
Description : RBI has imposed a fine of Rs 1 crore on which of the following banks for flouting bill discounting norms? A) Syndicate Bank B) United Bank of India C) Indian Overseas Bank D) UCO Bank E) Vijaya Bank
Last Answer : D) UCO Bank Explanation: Reserve Bank of India has told state-run Uco Bank to pay Rs 1 crore penalty for flouting bill discounting norms which allowed current account holders siphon out funds.
Description : Which of the following is not a type of Bank credit 1. Loan 2. Fixed deposit 3. Overdraft 4. All of these 5. None of these
Last Answer : Fixed deposit
Description : 1 Cash Balance ₹ 56,000 Bank Overdraft ₹ 11,000
Last Answer : Enter the following transaction of Mr. Chavan in a cash book with cash and bank column for the month ... cash and electricity bill ₹ 7,400 by cheque.
Description : Bank overdraft means ___________ balance of Bank A/c.
Last Answer : Bank overdraft means ___________ balance of Bank A/c. (a) Debit (b) Credit (c) Positive (d) Nil
Description : Bank money refers to - (1) currency notes (2) coins (3) gold bullions (4) cheques
Last Answer : (4) cheques Explanation: There are two types of money in a fractional-reserve banking system, currency originally issued by the central bank, and hank deposits at commercial banks: (1) ... created in the banking system through borrowing and lending) - sometimes referred to as chequebook money.
Description : The bank cheques are processed by using - (1) OCR (2) MICR (3) OMR (4) PMR
Last Answer : (2) MICR Explanation: Magnetic Ink Character Recognition, or MICR, is a character recognition technology used primarily by the banking industry to facilitate the processing of cheques and makes up the ... are printed in special typefaces with a magnetic ink or toner, usually containing iron oxide.
Description : The bank cheques are processed by using (1) OCR (2) MICR (3) OMR (4) PMR
Last Answer : MICR
Description : Bank money refers to (1) currency notes (2) coins (3) gold bullions (4) cheques
Last Answer : cheques
Description : How to Recover Bank Account Overdraft Fees?
Last Answer : WaitOnce you notice that you have an overdraft charge, you will need to wait until you know it has been posted. It does not matter if you see the charge online or if you just notice that your ... you do not need to worry about it for now.Call Customer ServiceOnce your overdraft fee and your deposit
Description : A. Bank overdraft B. Bills Payable C. Account Payable D. Retain earning
Last Answer : D. Retain earning
Description : hat posses general acceptability? (a) Bill of exchange (b) Bond © Money (d) Bank draft
Last Answer : © Money
Description : Explain the following concept: Discounting of Bill
Last Answer : Explain the following concept: Discounting of Bill
Description : What is Bill Discounting?
Last Answer : M1 provides an online discounting and Trade Receivable Discounting System. It is a digital platform to support micro, small and medium enterprises (MSMEs) to get their bill financed at a competitive ... at cheaper rates through banking and factoring companies.To know more about us visit our website:
Description : he practice of discounting accommodation bills is known as ________ a. Night bill b. Kite flying c. Knight bill
Last Answer : b. Kite flying
Description : Distinguish between the following: Loan and Overdraft
Last Answer : Distinguish between the following: Loan and Overdraft
Description : What is the difference between a loan and an overdraft?
Last Answer : an overdraft is over drawing on a current account in excess of the credit balance whilst a loan is the act of lending or borrowing, for temporary use with permission
Description : Which of the following is a non-current liability a) Mortgage loan b) Bank balance c) Outstanding salary d) None of these
Last Answer : a) Mortgage loan
Description : What adjustment is made while using the Discounted Cash Flow method to value cyclical companies? a) Normalize earnings b) Use high discount rate c) Use bank rate for discounting d) Use high growth rate
Last Answer : a) Normalize earnings
Description : The debit balance of Pass Book represents overdraft.
Last Answer : State whether the following statement are True or False with reason : The debit balance of Pass Book represents overdraft.
Description : Overdraft means _________ balance of Pass Book.
Last Answer : Overdraft means _________ balance of Pass Book. (a) opening (b) debit (c) credit (d) closing
Description : A primary objective of dual exchange rates is to allow a country the ability to insulate its balance of payments from net: A. Current account transactions B. Unilateral transfers C. Merchandise trade transactions D. Capital account transactions
Last Answer : D. Capital account transactions
Last Answer : D. Capital account transaction
Description : If you are a cosigner for someone to buy a car the car is reposses you are willing to pay the balance oon the car, but the finance company refuses to release the bill of sell and the balance left on the loan. I am willing to pay the balance what do I do ?
Last Answer : You should speak with the manager of the finance company and explain that you are willing to pay the car off and keep your credit in good standing.
Description : If an unpaid article sent to BO is returned as undelivered the article will be a) Returned to sender after deducting the amount of postage from the cash and stamp balance of BO b) Returned ... taking suitable entry in unpaid postage account in BO d) Returned to sender simply as ordinary letter
Last Answer : c) Returned to sender after simply taking suitable entry in unpaid postage account in BO
Description : i. A slip is used for depositing cash and cheque in the Bank account. ii. Permission to withdraw excess amount from Current Account.
Last Answer : Write a word or a term or a phrase that can substitute each of the following statement: ... Instrument which can be discounted with the bank.
Description : What does ECS in banking transactions stand for? (1) Excess Credit Supervisor (2) Extra Cash Status (3) Exchange Clearing Standard (4) Electronic Clearing Service
Last Answer : (4) Electronic Clearing Service Explanation: Electronic Clearing Service is a mode of electronic funds transfer from one bank account to another bank account using the services of a Clearing ... tax, etc or for loan installments of financial institutions/banks or regular investments of persons.
Description : What does ECS in banking transactions stand for ? (1) Excess Credit Supervisor (2) Extra Cash Status (3) Exchange Clearing Standard (4) lectronic Clearing Service
Last Answer : lectronic Clearing Service
Description : Which one of the following items is not included in the current account of India's Balance of Payments? (1) Short-term commercial borrowings (2) Non-monetary gold movements (3) Investment income (4) Transfer payments
Last Answer : (2) Non-monetary gold movements Explanation: Balance of payments (BoP) accounts are an accounting record of all monetary transactions between a country and the rest of the world. These ... factor income (earnings on foreign investments minus payments made to foreign investors) and cash transfers.
Description : Which one of the following items is not included in the current account of India’s Balance of Payments ? (1) Short-term commercial borrowings (2) Non-monetary gold movements (3) Investment income (4) Transfer payments
Last Answer : Non-monetary gold movements
Description : Overdraft facility is given only to current depositors.
Last Answer : Justify the following statement: Overdraft facility is given only to current depositors.
Description : Overdraft facility is allowed to Proprietor’s Personal A/c.
Last Answer : State whether the following statement are True or False with reason : Overdraft facility is allowed to Proprietor’s Personal A/c.
Description : An EEFC account can be held only in the form of a ________ A. Current Account B. Savings Bank Account C. loan Account D. All of the Above E. None of the Above
Last Answer : A. Current Account Explanation: An EEFC(Exchange Earners‘ Foreign Currency Account) account can be held only in the form of a current account. No interest is payable on EEFC accounts.
Description : If you want to ensure that your money will be secured if cheques sent are wasted in the post, you should A) Always pay by cash B) Cross your Cheques ‘Account Payee only, Not Negotiable.’ C) Always get the money in person D) Not use the postal service in future
Last Answer : Answer: B
Description : Overdraft facility is allowed to __________ account.
Last Answer : Overdraft facility is allowed to __________ account. (a) saving (b) recurring (c) current (d) fixed deposit.
Description : If the addressee of ordinary article is not traceable and address of the sender is not noted on the article a) The article is kept in office undelivered b) The beat postman tries to find out ... in deposit for 7 days d) The article may be destroyed with permission of Postmaster / Sub postmaster
Last Answer : c) The deposit PA forward it RLO after passing remark in red ink after keeping in deposit for 7 days
Description : What is bank overdraft ?
Last Answer : If the bank gives the owner of the current account a chance to withdraw the excess money from his deposit, he is called an overdraft. In this case the opportunity to withdraw money up to a certain limit is provided.
Description : (i) Stock in trade, Bank overdraft, Bills receivable.
Last Answer : Find the odd one : (i) Stock in trade, Bank overdraft, Bills receivable. (ii ... Income received in advance, Prepaid Expenses, Outstanding Expenses.
Description : Interest on bank overdraft is recorded on _________ side of Pass Book.
Last Answer : Interest on bank overdraft is recorded on _________ side of Pass Book. (a) debit (b) credit (c) any (d) both
Description : Interest on overdraft charged by the bank is recorded in the cash column.
Last Answer : State whether the following statement are True or False with reason : Interest on overdraft charged by the bank is recorded in the cash column.
Description : What is meant by Bank Overdraft?
Last Answer : What is meant by Bank Overdraft?
Description : Which of the following is an example of fraudulent financial reporting? a. The treasurer diverts customer payments to his personal due, concealing hisactions by debiting an expense account, thus ... the company and neglects to return them; the cost is reported as a miscellaneous operating expense
Last Answer : Company management changes inventory count tags and overstates ending inventory, while understating cost of goods sold
Description : Am I responsible for the dentist bill if my son accidentally causes an injury to his friend's tooth while playing with an air soft gun? The other boy had permission to play and did not have a the proper mouth guard.
Last Answer : I think it might depend on 1. whose supervision they were under 2. if the boy was told to wear a mouth guard 3. the parent/guardian of that child new that their child was not equipped with the proper protection and still allowed it.