Credit, Debt, and Finance

Yes, delinquency means when loan payments are not paid according to the terms of the agreement or promissory note.

Escrow is a legal concept in which a financial instrument or an asset is held by a third party on behalf of two other parties that are in the process of completing a transaction. The funds or assets are held by the escrow agent until it receives the appropriate instructions or until predetermined contractual obligations have been fulfilled. Money, securities, funds and other assets can all be held in escrow.

Sources of information for underwriting The first stage in any numerical (or statistical) analysis is the collection of data. When pricing a risk, an underwriter should gather as much information as possible to aid accurate assessment. Sources of information for underwriter are:

i. Proposal form or underwriting presentation ii. Risk surveys iii. Historic claims experience data

The capital of IMF (International Monetary Fund) is made up by contributions from member nations. Each member country is assigned a quota based on its economic size and position in the global economy. Member nations pay their quota subscriptions in full, with part paid in reserve assets and part in their own currency. These quota contributions form the core of IMF's financial resources, which are then used to provide financial assistance to member countries facing balance of payments problems.

A usurer is someone who lends money at excessively high interest rates, often illegally. Graziers raise livestock, acrobats perform gymnastic feats, and numismatists collect coins.

Treasury bills are money market instruments to finance the short term financial requirements of the Government of India. These are discounted securities and are issued at a discount to face value. All three are the components of internal debt of a country.

The Money Market is the market for short-term debt instruments (maturity less than one year). It deals specifically in short-term loans and investments, including treasury bills, commercial papers, and certificates of deposit. While call money and treasury bill markets are subsets, the money market is the broader category.

Correct answer is (4). 

The word 'owes' is the third person singular form of 'owe', which means to be indebted to someone or something. It expresses a state of having an obligation or debt to another person or entity. Option A correctly identifies that 'owes' indicates being indebted.

CRR stands for Cash Reserve Ratio - the percentage of deposits that banks must keep with the Reserve Bank. It's a key monetary policy tool. The other options are incorrect - C stands for Cash, R for Reserve, and R for Ratio (not Rate).

Bank rate is a quantitative credit control tool as it directly affects the cost of borrowing and money supply. Moral suasion is qualitative, while regulation of consumer credit and margin requirements are selective credit controls, not general quantitative tools.

According to RBI prudential norms for asset classification, debts overdue for more than 18 months are classified as 'doubtful assets'. Standard assets are performing loans (overdue up to 12 months). Sub-standard assets are overdue for 12-18 months. Loss assets are those identified as uncollectible with little recovery value. The 18-month threshold marks the transition from sub-standard to doubtful category, indicating higher credit risk and requiring higher provisioning by banks.

The International Monetary Fund's capital is composed of contributions from its member nations, known as quotas. These quotas are based on each country's economic size and determine their voting power and access to resources. The IMF does not primarily rely on borrowings or credit/debit financing for its basic capital structure.

Usury is the practice of lending money at illegally high rates of interest - charging excessive interest that exploits borrowers. The correct answer precisely defines this financial term.

Explanation: Debts are seen by the promptness with which the debtors meet their obligations. When the debts are not recovered for a long time by the seller of goods and services the chances of recovery seems to be bleak. That is why, we treat the debtors which are older than 6 months and above are not recognized as current assets. However, it does not mean that they are not recoverable. .