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Q:

What do you mean by ‘foreign draft’? 

Answer:



Q:

Commercial banks are funded through which of the following?

A) Stock holders B) Government funding
C) Services D) Customer deposits
 
Answer & Explanation Answer: D) Customer deposits

Explanation:

A commercial bank is a type of financial institution that accepts deposits, offers checking account services, makes business, personal and mortgage loans, and offers basic financial products like certificates of deposit (CDs) and savings accounts to individuals and small businesses. A commercial bank is where most people do their banking, as opposed to an investment bank.

 

Commercial banks are funded through customer deposits. These banks make money by providing loans and earning interest income from those loans. The types of loans a commercial bank can issue vary and may include mortgages, auto loans, business loans and personal loans. A commercial bank may specialize in just one or a few types of loans.

 

Customers who deposit money into these accounts effectively lend money to the bank and are paid interest. However, the interest rate paid by the bank on money they borrow is less than the rate charged on money they lend.

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Filed Under: Bank Interview - Accounting and Finance
Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

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Q:

Bad loans in banking terminology are generally known as

A) NPA's B) Prime loans
C) BPO's D) Prime Assets
 
Answer & Explanation Answer: A) NPA's

Explanation:

Bad loans in banking terminology are generally known as NPA's. A Non - performing Asset (NPA) is defined as a credit facility in respect of which the interest and installment of principal have remained 'past due' for a specified period of time.

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0 49
Q:

The value of money varies

A) inversely with the price level B) directly with the price level
C) directly with the volume of employment D) directly with the interest rate
 
Answer & Explanation Answer: A) inversely with the price level

Explanation:
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0 136
Q:

The primary Economic function of the Financial system is to

A) Providing experts advice to investors and savers B) Match one person's savings with another person's investment
C) Keeping interest rates low D) Match one person's consumpion expenditure with another person's capital expenditure
 
Answer & Explanation Answer: B) Match one person's savings with another person's investment

Explanation:

The primary Economic function of the Financial system is to match one person's savings with another person's investment.

As a key component of the financial system, banks allocate funds from savers to borrowers in an efficient manner. They provide specialized financial services, which reduce the cost of obtaining information about both savings and borrowing opportunities. These financial services help to make the overall economy more efficient.

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Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

0 62
Q:

Job cost sheets constitute the subsidiary ledger for the

Answer

The job cost sheets constitute the subsidiary ledger for the Work in Process Inventory Account.


A job cost sheet is a form used to record the costs chargeable to a specific job and to determine the total and unit costs of the completed job. Companies keep a separate job cost sheet for each job.

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Q:

Patents, Copyrights and Trademarks are examples of

A) Short-term investments B) Fixed assets
C) Long-term investments D) Intangible assets
 
Answer & Explanation Answer: D) Intangible assets

Explanation:

Intangible asset that consists of original creative work manifested in a tangible form that can be legally protected. Intellectual property consists of copyrights, patents, trade-marks and trade secrets. Examples include literary or artistic works, business methods and industrial processes.

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0 107
Q:

Most modern Banking Systems are based on

A) commodity money B) 100 percent reserves
C) fractional reserves D) money of intrinsic value
 
Answer & Explanation Answer: C) fractional reserves

Explanation:

Most modern banking systems are based on Fractional reserves.

 

Fractional-reserve banking is the practice whereby a bank accepts deposits, makes loans or investments, but is required to hold reserves equal to only a fraction of its deposit liabilities. Reserves are held as currency in the bank, or as balances in the bank's accounts at the central bank.

1. In a fractional reserve banking system banks can create money through the lending process.

2. A fractional reserve banking system is susceptible to bank panics.

3. Bank panics are a risk of fractional reserve banking, but are unlikely when banks are highly regulated and lend prudently.

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2 129
Q:

Bank Reconciliation Statement is prepared by

Answer

The Accountant typically prepares the Bank Reconciliation Statement using all transactions.


 


Bank Reconciliation Statement :


Bank reconciliation is a process which prepares a statement accounting for the difference between the cash balance in the cash account of a company and the cash balance according to its bank statement. This statement can help a company to verify that its bank account ending balance per the bank matches the balance on hand per the company's general ledger.

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