Advertisements
Advertisements
Question
Explain the following term/concept:
Cash Credit.
Solution
(1) Under this arrangement, a banker asks the borrower to open a separate account. Then bank places sanctioned loan amount to the credit of this account. The customer is allowed to withdraw from this account as and when he needs money and is allowed to deposit in his account any surplus that he has.
The customer is charged interest on the actual am0unt utilised by him.
(2) Cash credit arrangement is for a longer period than an overdraft. The customer can save interest by depositing the excess amount not needed and withdrawing the amount as and when he needs it. This system of lending is very popular only in India among traders, industrialists, etc. Bank demands some tangible securities such as stock of raw material, finished goods, etc
APPEARS IN
RELATED QUESTIONS
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.
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.
Write a word or a term or a phase which can substitute the following statement:
The type of account for which higher rate of interest is paid to bank depositors..
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 :
Board resolution is not required to open the Current Account with the bank.
State whether the following statement is true or false :
Banks grant long term loans only.
Find the odd one:
Complete the sentence:
A financial institution which receives deposits and lends money is called as __________
Select the correct option from below
| Group ‘A’ | Group ‘B’ |
| Primary Function | __________ |
Answer in one sentence:
Which facility is given to Current Account holder?
Attempt the following:
Write a letter to bank for opening a current account
Justify the following statement:
There is a difference between Loans and Advances given by the Bank.
Explain the different types of deposits
Explain the following term/concept:
Stop payment of cheque
Explain the following term/concept:
Demand Deposits
Explain the following term/concept:
Bank
Explain the following term/concept:
Loans
