Tag: commercial studies

Questions Related to commercial studies

Standard and Poor's is a Credit Rating Agency of international repute. Which of the following is one such agency of Indian origin?

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

  1. IBA

  2. BASEL

  3. SEBI

  4. CRISIL

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Correct Option: D

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

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

  1. Only (A)

  2. Only (B)

  3. Only (C)

  4. All (A), (B) and (C)

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Correct Option: A
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.

Which of the following is not an institutional credit agency?

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

  1. Cooperative Society

  2. Moneylender

  3. Commercial Banks

  4. Regional Rural Banks

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Correct Option: B
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.

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

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

  1. Capital Expansion

  2. Credit Expansion

  3. Credit Control

  4. Credit Creation

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Correct Option: D

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

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

  1. Personal loan

  2. Corporate loan

  3. Business loan

  4. Education loan

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Correct Option: D

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?

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

  1. Public Sector Banks

  2. Small Banks

  3. Urban Cooperative Banks

  4. Private Banks

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Correct Option: C

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

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

  1. Placement of funds

  2. Layering of funds

  3. Integration of funds

  4. All of a), b) and c)

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Correct Option: D

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

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

  1. Money lenders

  2. Public sector nanks

  3. Private sector banks

  4. Regional rural banks

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Correct Option: A

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?

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

  1. Line of Credit

  2. Loan to Client

  3. Letter of Credit

  4. Loan against Credit

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Correct Option: C

Bad advances of a Bank are called _____________.

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

  1. bad debt

  2. book debt

  3. non-performing assets

  4. out-of-order accounts

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Correct Option: C