What ACH stands for?

Correct Answer: In ?Bill Purchase? the loan will be created for the full value of the draft and the interest will be recovered when the actual payment comes For example, a ?Sight draft? is presented for which the loan is created for 100% of the draft value The money is received after 7 days, and then the interest will be recovered for 7 days along with the principal amount

Correct Answer: ?Endorsing cheque? ensures that the cheque get deposited into your account only It minimizes the risk of theft Normally, in endorsing cheque, the cashier will ask you to sign at the back of the cheque The signature should match the payee The image over here shows the endorsed cheque

Correct Answer: Foreign draft is an alternative to foreign currency; it is generally used to send money to a foreign country It can be purchased from the commercial banks, and they will charge according to their banks rules and norms People opt for ?foreign draft? for sending money as this method of sending money is cheaper and safer It also enables receiver to access the funds quicker than a cheque or cash transfer

Correct Answer: The repayment of the loan by instalment to cover principal amount with interest is known as ?Amortization?

Correct Answer: Overdraft protection is a service that is provided by a bank to their customer For instance, if you are holding two accounts, saving and credit account, in the same bank Now if one of your accounts does not have enough cash to process the cheques, or to cover the purchases The bank will transfer money from one account to another account, which does not have cash so to prevent check return or to clear your shopping or electricity bills

Correct Answer: Line of credit is an agreement or arrangement between the bank and a borrower, to provide a certain amount of loans on borrower?s demand The borrower can withdraw the amount at any moment of time and pay the interest only on the amount withdrawn For example, if you have $5000 line of credit, you can withdraw the full amount or any amount less than $5000 (say $2000) and only pay the interest for the amount withdrawn (in this case $2000)

Correct Answer: Match one person's savings with another person's investment

Correct Answer: inversely with the price level

Correct Answer: 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.

Correct Answer: 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.