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Questions and Answers
Which of the following statements is true about Line of Credit?
Which of the following statements is true about Line of Credit?
- It is a preset amount of money that a bank has agreed to lend (correct)
- It is issued by one bank to another
- The company will have to pay interest on the amount for which line of credit has been issued
- It is issued mainly in case of international transactions
Which bank is not in the list of 'Domestic Systemically Important Banks'?
Which bank is not in the list of 'Domestic Systemically Important Banks'?
- ICICI Bank
- HDFC Bank
- State Bank of India (SBI)
- Axis Bank (correct)
Which statements are true regarding 'Letter of Credit'?
Which statements are true regarding 'Letter of Credit'?
- It is a form of bank guarantee (correct)
- It is an assurance that a buyer’s payment to a seller will be received on time
- It is a letter issued from a bank that the bank has agreed to lend
- It is an agreement between two companies for future business dealings
What is the purpose of RBI's 'Payments Infrastructure Development Fund'?
What is the purpose of RBI's 'Payments Infrastructure Development Fund'?
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What does Capital Adequacy Ratio (CAR) represent for banks?
What does Capital Adequacy Ratio (CAR) represent for banks?
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