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प्रश्न
Explain the following terms/concept:
Advances
उत्तर
(1) A credit facility provided by the bank to its customers for a shorter period is called advances. Advances are usually granted by the bank to the business to meet the day-to-day requirements of a business. Interest is charged only on the amount actually withdrawn and not on the amount sanctioned.
(2) The amount received by the bank by way of deposits through various accounts is utilized for granting advances or loans to trade and industry. The bank adopts the following devices to advance short term finances:
i) Bank overdraft, (ii) Cash credit, and (iii) Discounting Bills of Exchange.
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संबंधित प्रश्न
Select the correct answer from the options given below and rewrite the statement.
Bank is a _______ institution
Select the correct answer from the options given below and rewrite the statement.
Generally Interest is not paid on ___________ deposit account
Write a word or a term or a phase which can substitute the following statement:
The slip which is used for withdrawing money from Savings Account.
State whether the following statement is true or false :
Generally no interest is paid by bank on Current Account.
State whether the following statement is true or false :
In cash credit, customers account is credited by bank with sanctioned amount
State whether the following statement is true or false :
Board resolution is not required to open the Current Account with the bank.
State whether the following statement is true or false :
Bank overdraft facility is a long term facility.
State whether the following statement is true or false :
It is necessary to instruct the bank to stop payment of a cheque which is lost.
Complete the sentence:
A financial institution which receives deposits and lends money is called as __________
Complete the sentence:
A facility under which a customer can overdraw money from his account is called as ___________.
Select the correct option from below
| Group ‘A’ | Group ‘B’ |
| Primary Function | __________ |
Answer in one sentence:
What do you mean by stop payment of cheque?
Distinguish between the following:
Loan and overdraft
Explain the following term/concept:
Stop payment of cheque
Explain the following term/concept:
Current deposits
Explain the following term/concept:
Savings Deposits
Correct the underlined word and rewrite the following sentence:
Under Cash Credit facility businessman /Accountholder can overdraw from his account.
Explain the following term/concept:
Loans
Choose the Correct Answer.
The Local Area Banks are promoting ______
