10 Questions
What is the purpose of a credit score?
To determine the eligibility for a loan or credit card
What is the purpose of collateral in a loan?
To reduce the risk for the lender in case of default
What is the difference between a fixed rate and a floating rate loan?
Fixed rate loans have a constant interest rate throughout the loan tenure, while floating rate loans have interest rates that change
What is the purpose of a documentation fee?
To determine the credit worthiness of the customer
What is the purpose of an MICR code?
To identify the bank and branch where the cheque was issued
What is the primary purpose of the National Electronic Funds Transfer (NEFT) system?
To transfer funds between different banks or within the same bank
Which of the following statements about the base rate is correct?
It is the minimum rate at which a bank can lend to its customers
What is the primary purpose of a linked account?
To facilitate fund transfers between accounts within the same bank
What is the purpose of a balance transfer in the context of credit cards?
To transfer the outstanding balance from one credit card to another
What is the purpose of a credit history?
To record a customer's past behavior regarding loans
Test your knowledge on banking terms such as NEFT, Linked Account, and Base Rate. Learn about electronic fund transfer, linked accounts, and minimum lending rates set by banks.
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