Tag: commercial studies

Quizzes (186) Questions (1136)

Questions Related to commercial studies

Multiple choice commercial studies money loans from banks and financial institutions introduction to money - barter system owned fund and borrowed fund

Which of the following correctly describes what sub-prime lending is?
A. Lending to the people who cannot repay the loans
B. Lending to the people who are high-value customers of the banks.
C. Lending to those who are not a regular customer of a bank

  1. Only (A)

  2. Only (B)

  3. Only (C)

  4. All (A), (B) and (C)
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Subprime lending means giving loans to people who may have difficulty maintaining the repayment schedule, sometimes reflecting setbacks, such as unemployment, medical emergencies, etc.

Multiple choice commercial studies money loans from banks and financial institutions introduction to money - barter system owned fund and borrowed fund

Which of the following is not an institutional credit agency?

  1. Cooperative Society

  2. Moneylender

  3. Commercial Banks

  4. Regional Rural Banks
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Moneylenders are informal finance providers who are not registered under the government, as such, they fall under non-institutional credit agency. 

They may be rich farmers, friends or relatives from whom a person takes a loan on oral basis.

Multiple choice commercial studies money loans from banks and financial institutions introduction to money - barter system owned fund and borrowed fund

The power of the commercial banks to expand deposits through expanding their loans and advances is known as which of the following?

  1. Capital Expansion

  2. Credit Expansion

  3. Credit Control

  4. Credit Creation
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Credit creation is the process by which commercial banks expand the money supply by lending out a portion of their deposits, keeping only a fraction as reserves.

Multiple choice commercial studies money loans from banks and financial institutions introduction to money - barter system owned fund and borrowed fund

Which of the following services/products of banks is specially designed and launched to help students?

  1. Personal loan

  2. Corporate loan

  3. Business loan

  4. Education loan
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Education loans are specifically designed to provide financial assistance to students for their tuition and related academic expenses.

Multiple choice commercial studies money loans from banks and financial institutions introduction to money - barter system owned fund and borrowed fund

The working group set up by the RBI has suggested the launch of an Emergency Fund Facility Scheme for banks. This scheme will help which of the following types of banks?

  1. Public Sector Banks

  2. Small Banks

  3. Urban Cooperative Banks

  4. Private Banks
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The RBI has historically focused on strengthening Urban Cooperative Banks (UCBs) through various schemes, including liquidity support mechanisms like the Emergency Fund Facility.

Multiple choice commercial studies money loans from banks and financial institutions introduction to money - barter system owned fund and borrowed fund

Which of the following is part of the process of money laundering?

  1. Placement of funds

  2. Layering of funds

  3. Integration of funds

  4. All of a), b) and c)
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Money laundering involves three stages: placement (introducing illicit cash into the financial system), layering (moving funds to disguise the source), and integration (returning the funds to the economy as legitimate).

Multiple choice commercial studies money loans from banks and financial institutions introduction to money - barter system owned fund and borrowed fund

Which of the following is not the part of the scheduled banking structure in India?

  1. Money lenders

  2. Public sector nanks

  3. Private sector banks

  4. Regional rural banks
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Scheduled banks are those listed in the Second Schedule of the RBI Act. Moneylenders are informal and are not part of the scheduled banking structure.

Multiple choice commercial studies money loans from banks and financial institutions introduction to money - barter system owned fund and borrowed fund

Bank issues a letter to beneficiary on behalf of its constituents like guarantee for making payment on their behalf on fulfilment of its terms and conditions. What is this arrangement known in banking context?

  1. Line of Credit

  2. Loan to Client

  3. Letter of Credit

  4. Loan against Credit
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A Letter of Credit is a document issued by a bank that guarantees a buyer's payment to a seller will be received on time and for the correct amount.