Bank Deposits and Loans Quiz

Cash credit = Type of loan where the borrower can withdraw money up to a certain limit against some security. Overdraft = Allows the account holder to withdraw money from the bank even if the account balance is zero. Ordinary or clean Loan = A standard type of loan provided by the bank without any specific collateral security. Discounting of bills = Process of selling a bill of exchange to a bank at a discount before it is due.

Fixed deposits = Require money to be deposited for a fixed period and cannot be withdrawn early Current deposits = For traders and businessmen who make frequent payments and do not earn interest Savings deposits = Aim to encourage small savings and have restrictions on withdrawals Cash credit accounts = Allow the bank to make payments exceeding the available balance, resulting in a negative bank balance

Overdraft = Occurs when a purchase or check exceeds the available balance, resulting in a negative account balance Ordinary or clean loan = Considered low risk for the lender and typically requires a good credit history, stable income, and collateral Cash credit = Allows payments exceeding the available balance Default = In the event of this, the lender can seize the collateral and sell it to recoup their losses

<p>Good credit history, stable income, and collateral = Typically required for an ordinary or clean loan History of repaying debts on time, stable and reliable income, and pledged collateral = Typically required for loans exceeding the available balance Stable income and reliable income = Typically required for cash credit and overdraft Seizure of collateral in case of default = Typically a consequence of defaulting on a loan</p> Signup and view all the answers

<p>Personal Banking Services Department = Meeting the needs of individuals, such as opening bank accounts and issuing credit cards Corporate Banking Department = Meeting the needs of companies and institutions by providing bank account management and commercial credit services Credit and Loan Department = Handling loan and credit applications from customers and providing necessary consultations Investment and Financial Planning Department = Helping clients achieve their financial goals by providing investment and financial planning services</p> Signup and view all the answers

<p>Ordinary or clean loans = Typically have lower interest rates and are less risky for the lender High-risk loans = Have higher interest rates and pose a greater risk for the lender Personal loans = Example of ordinary or clean loans Auto loans = Example of ordinary or clean loans</p> Signup and view all the answers

<p>Discounting of bills = Financial transaction in which a business sells its outstanding invoices to a third-party financier at a discounted price Handling loan and credit applications = Responsibility of the Credit and Loan Department Determining the requirements and types of payment = Part of the Credit and Loan Department's responsibilities Helping clients achieve their financial goals = Responsibility of the Investment and Financial Planning Department</p> Signup and view all the answers

<p>Invoice discounting = Also known as discounting of bills, involves selling outstanding invoices to a third-party financier at a discounted price Third-party financier = Entity that assumes responsibility for collecting payments from a business's customers after purchasing outstanding invoices at a discounted price Outstanding invoices = Unpaid invoices that a business sells to a third-party financier at a discounted price High-risk loans = Type of loans with higher interest rates and greater risk for the lender</p> Signup and view all the answers