Public Deposits, Commercial Banks, Trade Credit

_____ refer to the deposits of money made by public with non-banking companies.

• Public Deposits

• Trade Credit

• Bank Overdraft

• Cash Credits

_______ direct advance made in lump sum which is credited to a separate loan account in the name of the borrower.

• Loan

• Cash Credit

• Bank Overdraft

Under ______ borrower withdraws the full amount in cash immediately & undertakes to repay it in one or more installments.

• Cash Credit

• Loan

• Bank overdraft

Under Cash Credit interest is to be paid on the whole amount from the date of sanction.

• True

• False

Loans granted for immediate need are called ____

• Contingency loan

• Transactional loan

_____ is a running account from which the amounts can be withdrawn & paid back from time to time, subject to the stipulated amount.

• Loan

• Cash credit

• Bank overdraft

When the cash is not backed up by any security, it is known as ______.

• Clean Cash Credit

• Secured Cash Credit

Under secured cash credit, the borrower submits promissory note, which is signed by two or more securities.

• True

• False

Under Cash Credit, the bank can refuse credit when the creditworthiness of the borrower is unsatisfactory or when there is shortage of funds.

• True

• False

In a _______, a customer having a current account with the bank is allowed to overdraw his account up to a specified amount.

• Cash credit

• Bank Overdraft

• Loans & Advance