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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 Interest is charged only on the amount actually withdrawn and not on the amount sanctioned.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.
APPEARS IN
संबंधित प्रश्न
Write a word or a term or a phase which can substitute the following statement:
A slip used for depositing cash and cheque in the Bank account.
Select the correct answer from the options given below and rewrite the statement.
A company usually opens _____________ account in a bank.
Select the correct answer from the options given below and rewrite the statement.
Bank provides overdraft facility to ___________ account holder.
Select the correct answer from the options given below and rewrite the statement.
__________ account is suitable to salaried people.
Match the pairs.
| Group ‘A’ | Group ‘B’ |
| a) Lost cheque | 1) Board of Directors |
| b) Appointment of Banker | 2) Higher rate of interest |
| c) Cash credit | 3) Used for depositing cash and cheque |
| d) Fixed Deposit Account | 4) Stop Payment |
| e) Savings Account | 5) Restrictions on withdrawals |
| f) Pay-in-slip | 6) Separate Account |
| g) Overdraft facility | 7) Current Account |
| 8) Recurring Account | |
| 9) Shareholders | |
| 10) No interest is paid | |
| 11) Used for withdrawing amount from account | |
| 12) Long term credit facility | |
| 13) Certain restrictions on withdrawals | |
| 14) Dealing in foreign exchange |
Write a word or a term or a phase which can substitute the following statement:
Negotiable Instrument which can be discounted with the bank.
State whether the following statement is true or false :
Bank overdraft facility is a long term facility.
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 | __________ |
Select the correct option from below
| Group ‘A’ | Group ‘B’ |
| ________________ | Current Account |
Answer in one sentence:
What do you mean by stop payment of cheque?
Attempt the following:
Write a letter to the bank to stop payment of cheque.
Distinguish between the following:
Fixed deposit account and recurring deposit account
Explain the following term/concept:
Stop payment of cheque
Explain the following term/concept:
Letter of Credit
Explain the following term/concept:
Discounting of Bills
Explain the following term/concept:
Cash Credit.
