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Quizzes (15) Questions (85)

Questions Related to banking

Multiple choice installments banking business and commercial activities economics maths

Under the __________ scheme, the article will not be owned by the buyer until and unless he/she has paid the complete purchasing price of the article.

  1. Interest

  2. Hire Purchase

  3. Loan

  4. Finance
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

$\Rightarrow$  Under the $Hire\, Purchase$ scheme, the article will not be owned by the buyer until and unless he\she has paid the complete purchasing price of the article.

$\Rightarrow$  Hire-purchase system is a special system of purchase and sale. When goods are purchased on hire purchase system, the purchaser pays the price in instalments, these instalments may be Monthly, Quarterly or yearly etc. 
$\Rightarrow$   Goods are delivered to the purchaser at the time of Hire Purchase Agreement but the purchaser will become the owner of goods only on payment of last instalments.
$\Rightarrow$  All instalments paid are treated a hire until the last instalment paid off.

Multiple choice installments banking business and commercial activities economics maths

What is hire purchase scheme?

  1. A method of buying goods through making instalment payments over time.

  2. A method of trading goods through making instalment payments over time.

  3. A method of buying goods through making interest payments over time.

  4. A method of buying goods through making money payments over time.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A hire purchase is a method of buying goods through making instalment payments over time.

Multiple choice installments banking business and commercial activities economics maths

The interest scheme in which companies reduce the amount of the instalments to promote sales is called as __________.

  1. Discount Sale
  2. $100\%$ Finance
  3. $0\%$ Interest
  4. $50\%$ Finance
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

$\Rightarrow$  The interest scheme in which companies reduce the amount of the installments to promote sales is called as $Discount\,Sale.$

$\Rightarrow$  Discounts  are reductions to a basic price of goods or services.
$\Rightarrow$  The purpose of discount sale is to increase short-term sales, to move out-of-date stock, to reward valuable customers, to encourage distribution channel members to perform a function, or to otherwise reward behaviors that benefit the discount issuer.

Multiple choice installments banking business and commercial activities economics maths

The instalment scheme in which companies take $4$ or $5$ instalments in advance is called as:

  1. $25\%$ Finance
  2. $75\%$ Finance
  3. $100\%$ Finance
  4. $0\%$ Interest
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The installment scheme in which companies take $4$ or $5$ installment in advance is called as : $0\%$ Interest

For $0$ percent loans, you pay no interest. That means you're borrowing money from a bank but paying no fee for the privilege of doing so. Essentially, $0$ percent interest gives you the chance to pay the same amount of money as a cash buyer, even though you're spreading your payments over a longer term.
It is the total cost of the article paid as loan to the buyer.
The interest collect $3-5$ months installments in advance.

Multiple choice installments banking business and commercial activities economics maths

A man buys an iPhone $6$ for Rs. $53{,}000$. He realizes that he cannot pay such a large amount of money right now, so he decides to pay Rs. $4{,}505$ monthly for $12$ months. This amount of Rs. $4{,}505$ is called as:

  1. Simple Interest

  2. Selling Price

  3. Principal Amount

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

$\Rightarrow$  A man buys an iPhone $6$ for $Rs.53,000.$ He realize the he cannot pay such a large amount of money right now, so he decides to pay $Rs.4,505$ monthly for $12$ months. This amount of $Rs.4,505$ is called as : $Installment.$

$\Rightarrow$  The monthly or period payment in installment purchase is termed as installment.
$\Rightarrow$   In the case of installment purchase, the purchase happens as soon as the agreement between the buyer and financing Difference between Hire Purchase vs. Installment Purchase company is entered into.
$\Rightarrow$  In installment purchase, purchase and ownership take place before the complete payment.

Multiple choice installments banking business and commercial activities economics maths

A certain number of tennis balls were purchased for Rs 450. Five more balls could have been purchased in the same amount if each ball cheaper by Rs 15. The number of ball purchased was __________

  1. 10

  2. 15

  3. 20

  4. 25
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Let's take number of ball purchased=x  for Rs 450.
As per question, 
$\frac { 450 }{ x }=\frac { (450) }{ x+5 }+15 $
$\frac { 30 }{ x } =\frac { 30 }{ x+5 } +1$
$30x+{ x }^{ 2 }+5x=30x+150$
${ x }^{ 2 }+15x-150=0$
${ x }^{ 2 }+15x-10x-150=0$
${ x }(x+15)-10(x+15)=0$
$(x-10)(x+15)=0$
So, x=10, and x=-15(not possible)
Answer (A) 10

Multiple choice installments banking business and commercial activities economics maths

_________ allows a customer to buy a product by paying only a part of the cash price, and the remaining amount can be paid in instalments.

  1. Instalment scheme

  2. hire purchase scheme

  3. loan scheme

  4. cash scheme
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Instalment scheme allows customers to pay a sum of money in small parts in a fixed period of time. A part of the amount of product is paid at the time of purchase and rest is paid in regular periodic instalments.

Multiple choice installments banking business and commercial activities economics maths

Which of the following does not give a difference between a hire purchase and a normal purchase?

  1. Timing of payment for asset.

  2. Quality of asset purchased.

  3. Legal ownership of asset.

  4. Total cost of asset.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Quality of asset purchased does not give a difference between a hire purchase and a nominal purchase