ASPI

REGROUPOFCOL
LEGESWAZ
IRABAD
PRINCI
PLE
SOFBANKI
NG
PROF
.ADI
LME
HMOODJ
OVI
NDAH

SHORTQUE
STI
ONS:

Q1:Wh atiscomme rci

alBank?
Ans:ABa nkerisad ea
leri
nc api
t
alormo r
ep r
operl
yad ea
leri
nmo ney .
Heisanint
er
me di
at
e
pa
rtybe t
weentheb or
rowerandle
nd e
r.
Q2:Wh atiscent
ralBank?
Ans:Ac ent
ralbanki
sab ank,whi
chc ont
ro
lscr
edit
.Iti
sknowna sce
n t
ralba
nk.
Q3:Ho wwa swo r
dBa nkr
uptderi
ved?
Ans:Th eearl
yb ank
e r
strans
act
edt h
eirmoneylendi
nga c
ti
vit
i
esa ndb enc
hesinthema r
ket
pl
ace.Ifanyb a
nkerwasn oti
nthep osi
ti
ontopayh i
sdebt
s,thenthecredi
to
rsusedtobrea
k
hi
sb encha ndhewa sconsi
dere
da sinsol
vent
.Nowad ays,i
fanyban kfa
cesthi
ssi
tuat
io
n,it
i
sc a
ll
edb ankrupt
.
Q4:Wh atisme a
nt b
yMi nt?
Ans:Mintisap l
acewh er
eme t
al
li
ca n
dp ape
rmo neyi
sp r
oducedli
keroyalmin
t.
Q5:Ther ol
eo fwhic
hp eopl
eisconsider
edimport
antfo
rtheevolut
i
o nofbank.
Ans:Thero l
eoffol
lowi
ngfourisconsi
dere
dv e
ryimport
antf
ortheevolut
i
ono fba
nk.
1.Ki
ng s
2.Merchants
3.Mon eylender
s
4.Goldsmiths
Q6:De f
ineE x
changeBa nk
.
Ans:Th es
eb anksprovi
deforei
gne x
changetoimport
er
sa ndexport
ersofthecount
ry.The
y
al
soc onvertth
el oc
alcu r
ren
cyint
of ore
igncur
rencyandv i
cev e
rsa.{e.
g.}
,We st
er
nu ni
on
Banketc.

Q7:
Def
ines
avi
ngbank
.
An
s:Th
esear
etheb
anks,
whi
cha
ree
sta
bli
she
dtoe
nco
ura
gea
ndc
oll
ect
thes
cat
t
ere
dsa
vi
ng
ofpoorandmi ddlec l
assp eopl
e{ e.
g.}Nat
ionalSavi
ngcent
ersandpostoff
i
ces.
Q8:Defi
neMo rt
ga geb a
n k.
Ans:Theseb anksp rovi
del oa
n stope o
pleagai
n s
tthei
rmovableandimmo v
abl
ep rop
ert
yli
ke
gol
d,sil
ver,house, shopa ndlandetc.
{e.
g}Mo rt
gagebankofAustr
al
iaandSpai
ne tc
.
Q9:Defi
nec onsume rbanks.
Ans:Theseb anksa reestabl
is
h edtofaci
li
t
atetheconsumer
sforp u
rchas
ingconsumergoods
.
Normall
y,theselo ansa reterme dasn onp roduct
i
veloan.Thereisnoc onsumerbankin
Paki
st
an.T hecomme rci
albanksa r
ep erf
or
mi n
gt h
efunct
ion
so fcons
ume r
sbanki
n g.
Q10:Defi
n eMi cr
o f
inanceBa nk.
Ans:Thema ino b j
ecti
veo fmi cr
ofi
n a
nceb anki
ngist ome etthefi
nanci
alne e
do fsmal
l
busi
nessc ommu nit
yl i
kes hopkeepe
rs,smallt
rader
sandfar
me r
se t
c.
Q11:Defi
n eCo nsorti
umBa nk.
Ans:Thesea r
et h
eb ank
se sta
b l
ishe
da ndrunb ysomeo t
herbanks
.Me mberbanksfr
omthei
r
owns ourcesp rovi
d ethef undso fc ons
orti
umb ank.Theseb a
nksp r
ovidefi
n a
ncetob i
g
busi
nessh ousesan dindustr
iestome ett
heirl
ongtermrequi
rement
s.
Q12:Defi
n eSch oolb an
k .
Ans:Theseb anksa ree sta
bli
shedt od e
vel
o pthehabi
tofs a
vingamongs cho
o lchi
l
dren
.In
t
hissyst
emo fbank i
ngth ebanko f
fi
cial
sprovi
deb ank
ingf
acil
it
i
estostudent
satthei
rscho
ols
.
Thi
ssy s
temi sn otp r
evai
linginPa k
ista
n.Thefirs
tschoolb
ankwa sBelo
itsav
ingBank,whi
ch
wasesta
blishedinUSAi n1 882.
Q13:Nameo fBan kAc c
o rd
ingtoRe gist
ra
ti
o n?
Ans:1 .
Sc hedule
dBa nk
2
. NonSc he dul
edBa nk
Q14:Namet het y
p esOf De ve
lopme ntBank?
Ans:1 .Ag r
ic
u l
turalDevelopme ntBank.
2
. I
nd u
s t
ri
al Developmentbank.
3
. Regi
o nalDe ve
lopme ntbank.
4
. I
nter
n at
iona l
De vel
opme ntbank.
Q15:Nameo fBan kAc c
o rd
ingtoo wn e
rshi
p?
Ans:1.
Go vern
me n tbank
2
. Pri
vateb ank.
Q16:Nameo fbankAc co r
dingtoinco r
pora
tion
?
Ans:1 .Ch ar
tere
re dbank
2
. Stat
utor
yb ank
.
Q17:Defi
n eInvestme ntBank.
Ans:The s
ea r
et heb ankswh i
chp r
o vi
dec apit
alt
od if
fe
rentc ompanie
sb yp u
rchasin
gt hei
r
shar
esa nda lsof i
nancef orthep urch as
ea nds al
eo fsecuri
ti
eslikestoc
ksa nds h
a r
es.For
exa
mp l
e ,At
lasIn vest
men tBan klt
de tc.
Q18:De f
ineGo v t
.Ba n
k.
Ans:Thesea retheb anks,wh i
cha reo wnedb ycent
ralorprovin
cialgover
nmentofanyc ount
ry.
TheGo ver
nme nt i
sr es
po nsi
b l
etof r
a mea ndco nt
ro
lthepoli
c i
esofthesebanksandithass o
le
ri
ghtt
or ecei
v eallbenef
itsandp r
ofi
t {e.
g}F WBLe t
c.
Q19:Wh atisme antbyp r
ivateb a
n k?
Ans:Thesea ret heb a
nks,wh icha reo wnedb ythepeopleo fanyco u
ntr
y.Thep e
o pl
e(share
hol
ders)electthed i
rect
orst oframea n dcontr
o lt
hepo l
i
ciesa n
dt h
e yal
sosharethep r
ofi
tsor
l
osseso ft
hes eb ankse.
g( Ban kAlfahL t
d.andSo ner
iBankL tdetc)
.
Q20:De f
ineDo me sti
c(Lo calBank )
.
Ans:Theseb anksa reown eda ndc ontrol
l
edb ytheg o
vernme ntort
h epeopl
eo ft
hec ount
ryin
whi
cht heyarep r
o v
idetheb an ki
ngs e r
vi
ces{ e.
g}Na t
ion
alBa nkofPa ki
st
anAn dHa bi
bb ank
l
tdetc
.
Q21:De f
inefo r
e i
gnb anks.
Ans:Theseb ank sareno town eda ndc ontr
oll
e dbythego vern
me ntorpeopl
eo ft
h atcount
ry
i
nwh i
cht heya r
ep r
ovi
dingt heb anki
n gservi
ces(e.
g)ci
tyban kandb ar
clay
sBa nk(Pl
C)e t
c.
Q22:De f
ineCo o per
a t
i
veBa n k.
Ans:The s
eb anksa r
es etupt op rovi
d ecredi
tfaci
li
ti
estos ma l
lfar
me r
sa ndindust
ria
li
ststo
ra
isethei
rinco me sleve
l.Th eseb anksa r
eforme dundercoo perat
i
v esoci
et
iesAct19 2
5.They
maybes ched ul
e dorn ons chedul
e d(e .
g)Pun j
abProvi
ncialBanketc.
Q.23:Wh atareth eobli
gati
o nso fagricul
tur
al Devel
opment Bank?
Ans:1 -Dev el
o pme n
to fAgricul
tured epa
rtme nt
2-Prov i
dingloanstof armers
Q.24:Wh atareth eobli
gati
o nso findustr
ialDe v
elo
pme ntBan k
?
Ans:1 .Deve l
op mentof i
ndu st
ryd epart
me nt
2.Providingloanstoin dust
rial
ists
Q25:Wh atareth estageso festabli
sh mentof Bank?
Ans:1 .Promo ti
o n
2.I
nco rporat
ion
3.Arr
a ngeme ntofcap i
tal
4.Certi
fi
c at
eo fcomme n cemen t
Q26:Na meth etyp e
so fBa nkAc coun t
?
Ans:1.Cu r
ren tAccount
 2.Savi
ngAc co unt
3.Fix
edDe po si
tAccou nt
.
Q27:De f
ineCu rr
ent Account.
Ans:Inthisacc oun
tmo neyc anb ed eposi
t
eda ndwit
hdrawnfr
omb ankata nyti
med u
rin
g
ba
n ki
ngh ours.
Q28:De f
ineSav i
ngAc coun t
.
Ans:Ana ccountinwh ichdep osi
tsc a
nb emadeo nl
yupt ocer
ta
inli
mitandthec u
stomersis
notal
lowedt owi t
hdrawt hea mou ntf
roms uchaccou
nttwiceort
h r
i
ceawe ekiscal
ledPLS
sa
vinga cc
o u
nt.
Q29:De f
ineFixedDe po s
itAccou nt
.
Ans:Inthisaccount,mo neyisd epo s
itf
orafixedper
iodofti
me.Highrat
eo fin
ter
estispai
d
onthisd eposi
t.Withinthep eri
o d,theaccounthol
der
sa renotent
it
ledtowi t
hdr
awmo ney
f
romth eaccounts.
Q30:De f
ineForeignCu rre
n cyacc o
u nt
.
Ans:Th i
sa c
co unti
so penedi nforei
g ncur
rencyins
teadoflo
calcurr
ency.InPakis
tanthis
ac
co u
n tcano nlyo p e
nedi nn o minat
edb r
anchesofc ommerc
ialbanks
.F orei
gncu r
rency
ac
co u
n tcanbeo p
en edinformo fsavi
ng,fi
xedandcurre
ntAccount
s.Thi
sa ccoun
tisexcept
f
romz akatandtax.
Q31:Wh atkindo fbusinessdo esac omme r
ci
alb a
nkdoes?
Ans:1 .Accept
sDe po si
ts
2.Advanceslo a
ns
Q32:Wh atkindo fl
oa nscomme r
c i
albanksi
ssue?
Ans:1 .Loanso nbas i
so f
T i
mep er
iod
2.Loanso nb asi
sof i
ssuan c
e

Q33
:Whatar
ethetype
sofloan
sac
cor
din
gtote
rms?
An
s:1.Demandloa
ns
2.Shor
tte
rmsloan
s
3.Medi
umt e
rmsloan
s
4.Lon
gtermsloa
ns
5.Pr
oje
ctloa
ns.
Q34
:De
s c
ri
bestheki
ndsofloa
nsa
cco
rdi
ngtoi
ssu
e.
An
s:1.byove
rdra
ft
2.Cas
hc r
edi
t
 3
.ByDisc
ount
ingofB/
E
4
.byMo r
tg
age
5
.BYo p
eni
ngloansA/
C.
Q35
:Defi
neDemandloan
.
An
s:Thesear
etheloa
ns,whi
chcanbedeman
d e
db yt
heba
nkatanyt
ime
.Gen
era
ll
y,t
hes
e
l
oan
sa r
eiss
uedtori
chandtr
ustwor
thyp
eopl
e.The
secanb
ere
c o
vere
doronl
umpsumo r
i
nst
al
lmentb
asi
sacco
rdi
ngtot
hed e
si
reofb
orr
owers
.

Q36:Defi
n eShortTermloans:
Ans:Thesel o
ansa r
ei ssuedtome etthed a
ytod ayrequi
rementsofthebusi
nessforthe
per
iodupt o1year.
Q37:Defi
n eMe di
umT ermloan:
Ans:Theseloansareg i
ventopu r
chas
er awma t
er
ia
l a
ndt omeettheadmini
st
ra
ti
vee xpe
nses
f
ortheperiodof1to5 yea
rs.
Q38:Defi
n elongTermloan:
Ans:Theseloansa r
eg i
vent opurcha
sef i
xedasse
tsandp r
opert
yf o
rtheperi
odo f1to1 0
yea
rs.Bankc h
argesthehighrat
eo fi
nt
e r
estt
hanono t
hertyp
eso fl
oans.
Q39:Defi
n eProj
ectfi
nanceloans:
Ans:Thesea retheloans,wh i
cha r
eissuedb yth
eb ankstoc omple
tetheproj
ectsofbig
i
ndustr
ies.
Q40:Defi
n eCashCred i
t
:
Ans:Banksa l
sog i
vec as
hc redi
tagai
n s
tcurre
ntasset
ss uc
ha ssharesandbondse t
c.The
amounto floa
ni str
ansf
erredtothea mountofcust
omer.Theb ankchar
gesint
erestonthe
ut
il
ize
do rwith
drawna mountonly.
Q41:Defi
n eopencreditac
cou n
t?
Ans:Inthisme t
hodb ankopensloana cco
untinthenameo fit
sc us
tomerin
ste
ado fgiv
ing
cas
ha sloan.
Q42:Defi
n ebankoverdra
ft:
Ans:Banksa l
lowtheirtr
ustf
ulcusto
me r
st odrawmo r
et ha
nt hedeposi
tthe
yh av
ei nthei
r
bankaccounts
.Banksc h
argeint
e r
esto
no verdr
afto
nd ai
lybasi
s.I
nmo der
nb an
kin
go verd
raf
t
f
aci
li
tyisknowna srunni
ngfinance.
Q43:Defi
n eMo r
tgageloan.
Ans:Banksg r
antloa
na gai
nstthesecuri
tyofdi
ff
ere
ntimmo va
b l
eormo va
bleass
etslik
eland
pro
p e
rt
ya ndg ol
de t
c.Ge ne
rall
y,l
oansareg r
ant
edforalongp er
iodofti
meu nd
ermo rt
gage
orple
dge.
Q44:Discount
ingo fb i
ll
.
Ans:Discount
i
n go fbil
lsof exc
h angeme ansthatbanka cc
eptsthebil
l assecur
it
yforgra
nti
ng
l
oan.Itisals
os ourceo fin
c omef ortheba nkbecaus
ei tal
waysd educt
san omin
al a
ccoun
tas
di
scounti
ngc har
ges .Butiti
sn otabl
eth atbankaccep
tso nl
yreputedandc lea
rbil
lofexch
ange.
Q45:De f
inemo net
a r
yp oli
cy.
Ans:Mo neta
ryp oli
cyr efe
rst otheme asureswh i
chth ecentr
alb a
n ko fac ount
rytak
esin
cont
roll
i
n gthemo neya n
dc r
e di
ts upplyint hec o
u ntr
ywi t
hav iewt oa chi
evespeci
fi
c
eco
n omicobje
c t
iv
e s.
Q46:De f
inecl
earingh ouse.
Ans:Cleari
ngh ousei sthatdepart
me nto fcentr
albankwh er
et herepresent
ati
vesofmemb e
r
banksandfina
n c
ialinsti
tut
i
o nsgathertoc l
earthei
raccount.
Q.4
7 :Defi
neRe gi
stered/Listed/Sc h
e dul
e dBank.
Ans:Bankwh i
chi sre gi
ste
redint helistofc e
ntr
albanka ndfoll
owsth einst
ruct
ionsgi
venby
cen
tralbank.
Q48:wh i
chd ocume ntisatt
achedt othea ppli
cat
ionfortheregis
tra
ti
o no fbank
.
Ans:1.Me morandumo fbank
2.Art
ic
leso fbank
3.Prospect
us.
Q.4
9 :Defi
nen on-r
e gist
ered/non -
lis
ted/n on-sc
hedul
e dBank.
Ans:Bankwh i
chi sn otregi
ster
e dinthelistofcent
ralbankan dfol
lowst heins
tr
ucti
onsgi
ven
bycentr
albank.
Q50:De f
ineMe mo r
an dumo f b
a nk.
Ans:Iti
sad ocume nt
, whichdeterminesther i
ght
s,powe r
sando bjec
tso fbank.
Q51:De f
ineArt
icl
e so fbank.
Ans:Iti
sas econdi mp ort
antdo cumen tofthebankwh ichincl
udesther ule
sa n
dr egu
lat
i
ons
nec
e ssa
rytoruntheb ankandtog o v
ernth eint
er
n a
lorganiz
at
ion.
Q52:De f
ineprospectus.
Ans:T h
isd oc
ume nti sadvert
isedb yab ankforrai
si
n gthec api
tal
.Int hi
sg e
neralpubl
i
cis
i
nvi
tedtop ur
chases hares.
Q53:De f
inebala
n ces heet
.
Ans:Intheb al
ances h e
eto fbank,co mpa r
isonofassetsandl i
abi
li
t
iesi sma d
et ochec
kthe
pac
eo ffi
nanci
alpo si
tionandp rogresso f
ab ank.
Q54:De f
inepassb ook.
Ans:Pa ssbooki sab ookinwh ic
hk e
e psther e
cordo fa l
lreceipt
sa ndp ayment
so fa
cus
tome rs
.Thisboo kisissuedtoc urr
en tsavi
ngaccountholderdeman d.
Q55:DefineBankDraf
t.
Ans:Bankd ra
fti
sad ocume ntdrawnb yoneb ankupono nanot
herbankorit
so t
hero
ff
ic
e,
whi
chc ontai
nsanorderf
orthep aymentofspeci
fi
edamo unt
.
Q.5
6 :HowCo mme r
cialba
n kscreat
eE mploymentincountr
y?
Ans:Co mme r
ci
albanksplayv i
talrol
eine mp l
oymentcreat
i
onbya gr
ic
ult
ureandindu
str
i
al
dev
e l
opme nt
.
Q.5
7 :Defi
neb a
nkRe ser
ves.
Ans:Banks av
essomep orti
ono fit
sfundstofulf
i
llinst
antnee
dsofcust
ome r
siscal
l
edbank
re
serves
.
Q.5
8 :Ho wma nywa y
sb ankma yh a
vereserves
?
Ans:1 .Reser
vekeptbystat
eb ank
2.Cashres
ervekeptbyb ank
3.Recei
vab
lesfr
omo therbanks
Q.5
9 :Defi
necapit
alre
serve.
Ans:Reservewhi
chb ank
sk eepsaveforunusualsi
tua
ti
onso ut
ofi
tsbusi
nesspro
fi
t.
Q.6
0 :Wh ati
sthei
mp actofdoubled i
scoun
tingofbil
lsonc o
mme r
ci
albankrese
rves
?
Ans:Ifsta
tebankprovid
esf aci
l
it
yo fdoubledisc
o un
tin
gt ocommerc
ia
lb a
n k
s,th
enithol
ds
l
essba n
kr ese
rve
s,becausebankc anrece
iveamoun t
incaseofne
edfromcentr
alban
k.

Q61:
Wr i
tedownt heme t
hodo fcr
eat
ingcredi
tbycomme r
ci
albank
.
Ans
:1.Di
scounti
ngo fbi
ll
s.
2.Supplyofloan
s.
3.byma ki
nginvest
me n
t.
Q62:
Wh atisunderwri
ti
ng?
Ans
:Theg uar
an t
eegivenbyb a
nkton ewlyopen
edcorpor
at
iontopur
chaseuns
oldsh
aresof
co
rpor
ati
ontofulf
il
lmini
mu ms ubs
cri
pti
on.
Q.
63:Wha ti
sch ec
kingaccount
?
Ans
: Ac countinwh ic
hd eposit
or
su sec heque
stowi t
hdra
wa mountiscal
le
dc hec
kin
g
ac
count
.e.g.curr
entaccou
nt a
nds a
vin
ga ccoun
tetc
.
Q.
64:Wha ti
stherateorrat
ioofdeduct
iono fz
akato
ncu r
ren
taccount
?
Ans
:Zakati
sn otdeduct
edo nth
eb al
anceo f
curr
enta
ccount
.
Q.
65:I
nwh ichformo rt
ypeo facc
ountafo r
ei
gncurr
encyacc
ountcanbeopene
d?
Ans
:Forei
gnc urr
encyaccountc
anb eopenedinfor
mo f
savi
ng,fi
xedorcu
rre
ntacc
ount
.
Q.
66:whichaccountisexemptedfr
omt axandzaka
t?
Ans:Forei
g ncu r
rencya c
c o
unt isex empte
dfromtaxandz ak
at.
Q.6
7 :Defi
n epa yinslip.
Ans:Thisb ookc onta
insp r
int
eds l
ipswh ene
veracustomer’
swantstod e
posi
tcasho rchequ
e
i
ntotheb ank;h eh astofil
lupas l
ip.Thi
sd ul
lyfi
l
ledsli
pinp r
esent
e dtocash
ieralongwit
h
t
hemo n
e y
.
Q.6
8 :Type so fd ocume nt
sp ro vi
d edb ybanktoc usto
me ront heo pen
ingo fcurr
e ntor
sav
inga ccount.
Ans:(i
)Pa y-i
n-sli
p (
ii)Pa ssBook (i
i
i)ChequeBook
Q45:Definep r
o moters.
Ans:Theya rethep er
s onswhowo rkfortheest
abli
shmentofabank.
Q69:Definec hequeb ook/che qu e
.
Ans:Cheq ueb ookisap rin
tedb o okwh i
chisis
suedtoe v
erynewa c
cou n
thold
ero radema n
d
exc
ludingfi
x edd eposi
t.Eachp ageo fthi
siscal
ledcheque.
Q.7
0 :Namep art
ieso fCheque?
Ans:Therea r
et hreema i
np ar
tieso fcheque:
1.Dr awer(Cu stomer)
2.Drawee( Bank)
3.Pa yee
Q.7
1 :Defi
n eDr awero fc
h eque( Customer).
Ans:Thep ersono rinsti
tut
iont hatho l
dstheaccoun
tina nybank
,an dbankpaysthea mount
onordero fthataccountholdertoh imo ranyot
h e
rperson.
Q.7
2 :Defi
n eDr aweeo fcheque( Ban k)
.
Ans:Theb a nksinwh i
chd r
awe rh oldstheaccoun
ta n
di ssu
esthec hec
ktob anktop ayth
e
amount.
Q.7
3 :Defi
n ethePa yeeo fchequ e.
Ans:Thep ersono rinsti
t
u t
ewh or eceive
stheamo untofcheq
ue.Receive
rmayb etheaccount
hol
derora nyo therperson.
Q74:Wr i
ted ownt hek i
ndso fch eque.
Ans:1 .
Bea r
erc heque.
2.Orderc heque.
3.Crossc heque.
Q75:Defineb earerchequ e
.
Ans:Iti
sac he que,wh i
chinvo l
v esn orest
ri
ct
ionanda nypers
onc anwithd
rawmo n e
yf r
om
t
heb ankwithou tgi
vingh i
siden t
if
icat
ion.
Q76:Defineo rdercheq u
e .
Ans
:F o
rthepayme n
tofthi
sche
q ue,
theban
kdemand
,ide
nti
f
ica
ti
onfro
mt h
ep a
yeet
ocert
i
fy
t
henamewr i
tt
eno nthecheq
ue.Noan yo
the
rpers
onexc
eptpa
yeecanwit
hdra
wmo n
eyfr
om
t
hebank.
Q77:Def
inecro
ss e
dc he
que.
Ans
:Iti
sat y
pic
al c
hequeonwhichthedr
awerd
rawst
wotr
ansv
ersepar
al
le
lli
nes.
The
seli
nes
st
andforsomei nst
ruct
i
ons.Th
e secheq
uesaremuchsaf
erasc o
mp a
redtotheor
deror
be
arerche
ques.
Q78:Nameo t
hertype
so fc
hequ
e s.
Ans
:1 .l
ostc
heque
2.For
gedc heq
u e
3.Pastd
atedcheque
4.Ant
idatedcheque
5
.Outdatedcheque
6.Tra
vel
er’
sc h
eque
7.Bla
nkch e
que
8.Opencheque
9.Marke
dc heque

Q79:Wh a
tisal o
stcheq ue?
Ans:I
f t
hetrueaccountholde
rlo
stit
schequeandrepor
tstothebankthe
nth eche
quewi l
lbe
consi
der
eda slos
tchequ e.
Q80:Wh a
tisforgedche que
?
Ans:I
fap ersonwh oha snoA/Cintheb a
nkissu
esac hequeo rt
hechequeisissuedo na
cl
osedA/C,t henthec hequewil
lbec ons
ide
redasf org
edc hequ
e sandtheb ankwillbe
acc
eptit.
Q81:De f
inepostpatedc he
que?
Ans:I
tisach eq
ue,wh i
chb ea
rsala
tert
hanthedat
eo f
issu
e .
Inf
ecti
tisconsi
dere
da sB/E.
Q82:Defi
nea nt
i-
datedc heq
ue?
Ans:Thechequeswh i
chi snoten
cashedacco
rdi
ngtod at
ewrit
tenonitbuttheper
iodo fsi
n
monthshasno t
beene xpir
edfr
omthed a
teofi
ssui
ngchequecall
edanti
datedchequ
e .
Q83:Defi
neo ut
-dat
edc heque?
Ans:Afte
rthee xpi
ryo fsi
xmo nt
hsfro
mt hedat
eofissuanc
et h
ech eq
uewi l
lbeconsider
ed
asoutdat
edc hequ
e .
Q84:Defi
netravel
er’
sch eque
?
Ans:Thepeoplewhot r
a v
elfr
omo n
ep l
acetoanot
herorfr
omo necountr
ytoa no
the
ru sethi
s
ch
e qu
e.Thischequeareissuedb ytheb an
ko nwh i
chas peci
fi
edamo unti
swrit
ten.
Q85:Defi
neblankch e
q ue?
Ans:I
tisac h
equewh ichthereisnoa nyd e
script
io
no fanyd a
teornoa mountisme nt
i
onedit
meansthed r
awero fthec hequeo nlysignsthec hequethesechequesareo nlyis
suedfo
r
t
hosepeoplewhoa redependable.
Q86:Defi
neope n
edc hequ e
?
Ans:Thechequewh i
chisn otcr
o ssediti
scall
edo pench e
q u
eitmaybeb eare
ro rord
er.
Q87:Defi
nema rk
edc heque?
Ans:I
fthereisas poto finko rcoloronth ec h
equet henthechequewillbec once
dedas
marke
dc heque.
Q88:Defi
nedishonoredc he
qu e?
Ans:Theb ankd oesn o taccepta nyc hequef orthep aymentthenitisc o ns
ide
redas
di
shonore
dc heque.
Q89:Defi
nedishonoro fcheque?
Ans:I
fbankdeniesp a
yingamo unto fcheq
ued uetoa nycert
ai
nr e
asoniti
sc al
l
edd is
honorof
ch
e qu
e.
Q90:Defi
nehon or
edc heque?
Ans:Thechequeacceptedbytheb ankforthep ay
me nti
tiscal
ledhonor
edc heque.
Q91:Defi
nehon or
edo fcheque?
Ans:I
fbankpaysamo untofch e
q uethi
sa c
ti
oni scal
ledh o
n o
redofcheque.
Q92:Defi
nemu ti
l
atedc heque?
Ans:I
fthechequeistornint
op i
e c
e sareseemt ohavebe e
ntornwil
lbea c
cepta
b l
e.
Q93:Defi
newa sh
e dcheq ue
?
Ans:I
fthedescri
pti
ono famo untdateorsignatur
eisn otcl
earonchequed uetowa s
hthanit
i
sc a
ll
edwa sh
edc heque.
Q94:Defi
neplai
nc heque?
Ans:I
tisachequeo nwh ic
hn op ar
tic
ulari
nformati
oniswritt
enorgiv
en.
Q95:Defi
nelocalcheque?
Ans:Ac h
equewillbec onsi
dereda slocali
fthed r
awera nddra
weea ndthepayeeb el
ongst
o
t
hes a
mec ount
ryithastwok i
n ds
1.Govtche
q u
es
2.Pri
va
techeques
Q96:Defi
neGo vtcheque?
Ans:I
tisachequesu setosett
lethetransa
cti
on softh
eg overn
me nto
fsamec ountry
.
Q97:Defi
nepri
v a
tec heque?
Ans
:Th
ec h
equei
ss
uedi
sre
cei
vedf
ort
hep
ri
va
tet
ra
nsa
cti
ono
fin
div
idu
also
rin
sti
t
uti
onso
f
sa
mecoun
ty.

Q98:
Defi
nef
orei
gnche
que?
Ans
:Iti
sacheq
ueis
suedaga
ins
tth
etr
ansa
cti
ono
ftwod
if
fe
ren
tco
unt
ri
esf
ort
her
ece
ipta
nd
pa
ymenti
tha
stwoki
ndsth
atar
egiv
enbl
ow:
 Gover
nmentc
heque

 Pr i
vat
echeque
Q99:
De fi
nefo
rei
gnGo v
ernmentche
que?
Ans
:itisacheq
uewh i
chisis
suedandacc
ept
edbygo
vt.
ins
ti
tu
ti
onsoft
wod
if
fe
ren
tcoun
tr
ie
s
f
ort
heirtr
ansa
cti
ons.
Q100
: Defi
nef
orei
gnpri
vatecheq
ue?
Ans
:itisachequewhi
chisissu
edandaccep
tedb
ypri
va
tei
nsti
t
uti
onsa
ndi
ndi
vi
dual
soft
wo
di
f
fer
ent c
ount
ri
esfort
hei
rtra
nsac
ti
ons.
Q101
: Sta
tere
asonsofdi
shonori
ngacheque
?
I nsuf
fi
ci
entf
unds

 Po
st-
dat
edc
heq
ue

 Ou
t-d
ate
dch
equ
e

 Amo
unt
inwo
rdsa
ndf
i
gur
esd
if
fe
r

 Al
t
ern
ati
onn
ots
ign
ed

I
rr
egu
lare
ndo
rse
men
t

 Cu
sto
mer
’
sins
ani
t
y

 Gar
ni
she
eord
er
Q1
02:
List
outt
heel
emen
tso
fch
equ
e?
a)Nameof
bank

b
)Da
te

c
)Na
tur
eof
acc
oun
t

d
)Ac
cou
ntn
umb
er

e
)Ch
equ
enu
mbe
r
 f
)Pa
yee

g)Wo r
dbear
erororder
Q103:WhatismeantbyEnd or
sement?
Ans
:E ndo
rsementmeanstowr i
t
eh i
sn amewit
ho rwit
houtword
so nth
eb a
ckofapape
ror
doc
ume nt
forconf
ir
mati
ono rcer
ti
fi
ca
tio
n.
Q104:WhatismeantbySimp l
eEndorse
me nt
?
Ans
:E ndor
sementme a
nstowr it
eh i
sn amewith
o u
tanywo rd
so nthebac
ko fapap
eror
doc
ume nt
forconf
ir
mati
ono rcer
ti
fi
ca
tio
n.
Q105:Wh a
t i
sme a
n t
bysp eci
alEndor
sement?
Ans
:Wh il
etransf
er
ri
ngthec hequetoap e
rso
ni ft
heo wnerorhol
derwri
test
henameo f
en
dorseebeforehissig
naturethenthee ndor
sementissaidtob espec
ialorco
mp l
et
e
en
dorsement
.
Q106:Def
inepart
i
alendor
se mentofacheque?
Ans
:E ndo
rsementinwhic
ho nl
yap ort
i
o nofamounti
se ndor
sedins
tea
do ff
ul
lamountof
ch
eque.
Q.
107:Defi
nec r
ossi
ngofch eq
ue?

Ans:Chequeo nwhichthedrawerdrawstwotran
s v
ers
ep ar
al
lelli
nes.Somet
imesdra
weronl
y
dr
awsline
s,s ometi
mesme nt
i
onswo rds“NOTNE GOTIABLE”or“PAYE EA/CONLY”bet
ween
l
in
e s.
Q108:Wh atisme antbyspeci
alcrossi
ngofac heque
?
Ans:Whereac hequebearsacro
ssitsfar
ewithaddit
i
ono ft
hen ameo fban
kerwit
horwi
tho
ut
t
hewo r
dn otnegoti
abl
e,thenchequeshallb
ed ee
me dcros
seds pec
iall
y.
Q109:Def
ineNe goti
abl
einstr
ume nt
s?
Ans:Ani nst
rume ntinwr i
ti
ngc ont
aini
nga nu ncondi
ti
onalo r
der,sig
nedb ythemaker
,
di
rect
in
gac e
rtai
np er
sontop ayac ert
ai
ns umo fmoneyonlytoo rtotheord
erofacer
tai
n
pe
rsonortotheb ear
ero f
theinst
rument,a
nd emandoratafixedfu
tureti
me.
Q110:Def
ineNo n-Negoti
abl
einstr
ume nt
?
Thelet
te
ro fcred
iti
sawr it
teninst
rumentis
suedb ythebuyer
’sbanka ut
hor
iz
ingt
hesel
le
rto
dr
awina c
co r
dancewithcert
ai
ntermsa ndcondi
ti
ons.
Q111:Wri
tek i
nds0 fbi
llofexch
ang e
?
Ans:

1
.Ac
cor
di
ngt
opl
ac
e
 2
.Ac
cor
di
ngt
oob
jec
t

3
.In
lan
dbi
l
l

4
.Fo
rei
gnb
il
l

5
.Tr
adeb
il
l

6
.Ac
commo
dat
i
onb
il
l

7
.Si
ght
bil
l

8
.Ti
meb
il
l

Q112
:De f
ineb i
llofexchange?
Ans
:Bil
lso fexchangeisad oc
ume nt
,wh i
chc on
tai
nstheorderofcr
edito
ro rsel
lerfo
rdebt
or
ou
rbuyertop ayac er
tai
nsu mof moneytoortoac er
ta
inperson
.
Q113
:De f
ineAc commo dat
ionbill
sofexchange?
Ans
:Thisb il
l
so fe x
changed o
esn otinvo
lveanytrad
etransact
i
on,itisis
su edanda c
cept
ed
on
lyfo
ra ccommo dati
onpurpose.
Q114
:Na mep art
ieso fbi
l
lo fe
xch a
nge?
Ans
:Therea r
ethreema i
np ar
ti
eso fbi
ll
o f
exchange:
1.Dr awer.
2.Drawe e
3.Pa yee
Q115
:De f
ineDr awer:
Ans
:thepartywhod rawsthebil
liscal
le
dDr awerorth
eMa ker.
Q116
:De f
ined r
awe e:
Ans
:Theyp art
ytowh omt hebi
llisaddr
essedoronwh omt h
eb i
lli
sdrawn.
Q117
:De f
inep ayee.
Ans
:Thep art
ytowh omt hebil
lismadep ay
able.I
tmayb edra
werora nyot
h erper
son.
Q118
:De f
ineE ndorser
.
Ans
:Heisap e
rsonwh otransf
err
edtherigh
tstorecei
vetheamountofbil
ltoa no
therper
son.
Q119
:De f
ineE ndorsee?
Ans
:Heisap er
so ntowhomt herig
htstorecei
vetheamountofbi
llhasbeentransf
err
ed.
Q120
:De f
ineAc ceptor
:
Ans
:Hei sap er
so nwhoa ccept
stheb i
ll
.Oftenthedraweracce
ptstheb i
llbutifanyoth
er
pa
rt
yacceptstheb il
lonthebehalfofdr
awerfort
hep a
yme ntofbi
l
lond ueda t
ethanthi
spart
y
i
scons
ide
redasAcc
ept
or
.
Q12
1:Wri
ted o
wnthec
har
act
er
is
ti
cso
fbi
l
lso
fex
cha
nge
.
An
s:
1.inwri
ti
ng
2.Uncondit
i
ona
lor
der
2.Cert
ainamou
nt

3
.Si
gna
tur
eso
fdr
awe
r

4
.Pa
rt
ia
lpa
yme
nt

5
.Re
ven
ues
tamp

6
.Ac
cep
tan
ce

7.Si gnat
ur
eo fdrawe r
Q122:Defi
neDome sti
c/localbil
l.
Ans
: Ab i
l
l,whi
chisd r
a wn, acce
p t
edandpai
dintheo n
ec ou
ntr
ytheni
tiscal
ledinl
andbi
llof
ex
changeorloca
l b
il
l.
Q123:Defi
nefor
eignb i
llo fexchange.
Ans
:Ab i
ll
,whic
hi sd rawn ,inon ecoun
tr
ya ndac
c ep
tedinanot
hercount
ry.Ther
ea r
etwo
t
ypesofbil
l
.
1.F orei
gnsightbil
l
2.F orei
gnTimeb il
l
Q124:Defi
neaccept
edb i
ll.
Ans
: Thebi
llsi
gnedb yd r
a werforthepur
pos
eo fa
ccepta
nceiscal
l
edaccept
edb i
l
l.
Q125:Defi
neun-Acceptedb i
ll
.
Ans
:T hisb i
l
lwh i
chi sn otsi
g nedorn o
ta cc
eptedb ydrawe
r.Thisb i
l
lisc onsi
dere
d
di
shonore
do nthebasiso fnon-accept
anc
e.
Q126:Defi
neDishonoredb i
ll
:
Ans
: Thebi
llnotpa
ido nd u edat
ei sca
ll
eddi
s h
onor
e dbi
ll
.
Q127:Defi
neHon o
redBi ll
/Pa i
dBill
:
Ans
: I
ftheamountofb i
llisp ai
do nduedat
etheni
tiscal
ledhonor
edbil
lorPai
db i
l
l.
Q128:Defi
nedis
c o
un t
e db il
l:
Ans
:Itthed r
awero fbillreceiv
et heamountofbi
llfr
omb ankbef
oreit
sma tur
it
ytheniti
s
ca
ll
edd i
scount
edbil
l.
Q129:Defi
neDiscount.
Ans
:T h
ea mountb a
nkdeduct
sfromt heamoun
to fbi
llofe
xch
angeag
ain
stse
rvi
ceof
di
sc
ounti
ngofbi
l
l.
Q130
:Defi
neTre
a s
urybi
ll
.
Ans
:TheTrea
sur
yb il
li
sad o
cumentinwhic
hthegov
ern
me n
tpr
omi
sest
opayace
rt
ai
ns u
m
of
mo ne
ytoapersonorbus
ine
ssconcer
n.
Q131
:Advant
agesofbi
ll
ofexcha
nge.
Ans
:
1.T r
adedev
elopmen
t.
2.E a
syset
tl
ementofpa
yment
so rre
cei
pts
.
3.Proofofc
redi
t.

4
.Fa
ci
li
t
yof
dis
cou
nti
ng.

5 .Progr
essofban
king
.
Q132:Par
ti
esofPromis
sorynot
e.
Ans:1.Dr
awer 2
.Payee
Q.1
3 3:
DrawerofPr
omissor
yn ot
e.
Ans:Thepers
onwh owri
testhepro
mis
sor
ynot
ean
dpromi
set
opayamoun
theisl
i
abl
eto
amountofbi
l
l.
Q.1
3 4:
PayeeofPro
missor
yn ot
e.
Ans:Theper
sonwhoenti
tl
edtorec
ei
veamou
nto
fpr
omi
ss
o r
yno
teh
eiscr
edi
t
or.
Q135:Sta
tet
hetypesofpr
o mi
ssor
ynot
e.
Ans:

In
land/l
oca
l/Domes t
icpromi
ssor
ynote
.
a)I n
d i
vi
dualpr
omissorynot
e.
b)J oi
ntpromis
sor
yn ote.
Forei
gnp r
omissor
yn ote.
a.I n
d i
vi
dualpr
omissory.
b.J oi
ntpromis
sor
yn ote.
Q136
: Domest
ic/Loca
l Promi
ssor
yNote
.
Ans
:Ifthemarker(
drawer)andth
epayeebel
ongtosa
meco
untr
ythe
niti
sca
ll
edDome
sti
c/
Lo
calpromi
ssor
yn ot
e.
Q137
: Def
inef
oreig
np romiss
orynot
e.
Ans
:Ifthemarker(dr
awe r
)andthepay
eeb e
lon
gt ot
wod
if
fe
rentc
ount
ri
est
heni
ti
scal
le
d
f
ore
ignpromis
sorynot
e .
Q138:Indi
v i
dualPromissor
yn ote
.
Ans:Wh e
nt hereisonlyoned r
awero fpr
o mis
sorynote,a
nds ol
el
yli
a bl
etopayamo u
nt.
Ifhe
doesnotpaythea mo unt
credi
torma ysueh i
m.
Q.1
3 9:Jo
in tpr
omi s
sorynote.
Ans:Wh ent her
ea retwoareo rmo r
ed r
awe r
so fpro
missor
yn ot
e,andtheyarejoi
nt
lyl
iab
le
t
op ayamo unt
.Iftheydon o
tp ayth
ea mou ntc
redit
ormayfi
lesui
tagains
tthem.
Q.1
4 0:Defi
neDe ma ndbil
lofexchange.
Ans:thema t
uri
tyd at
eisn o
tme n
ti
on e
do ns uc
hb il
l
,d r
aweehastop aytheamountofbi
l
lat
t
imewh eneverbil
lispres
entedforpaymen t
.
Q.1
4 1:Defi
neT i
meBi llofe
xcha ng
e .
Ans:If
thea mounto ft
imebil
lispaidattheexpi
ryof f
i
xedfut
ureti
me, whi
chiswri
tt
enonbil
l.
Q.1
4 2:Defi
neRe t
iri
ngo fbi
ll
.
Ans:Wh e
nd raweep aysamount o
fb i
ll
beforematur
it
yd a
te.Thi
swil
lb ecal
l
edret
iri
ngofbi
ll
.
Q143:Defi
n eRe b
a t
e.
Ans:Rebateistheamo untofconcessi
onwh i
chisg i
venbythedra
we r(cr
edit
or
)igint
hecase
i
fdrawer(Debtors
)p ayst
heamo unto f
bil
lb ef
or
et h
ema t
uri
typer
iodso fb
il
l.

Q144
:Defi
net
h eRenewalb
il
lofex
chan
ge.
An
s:Ift
hedrawerrec
eiv
esnewb i
l
lfr
omdrawe
einp
lac
eofo
ldb
il
li
fno
tpa
ido
ndu
eda
te
t
heniti
sca
ll
edrenewedbi
llo
fexc
hange
.
Q145
:Wh a
tar
et hepar
ti
esofba
nkdra
ft
?
An
s:
a.Se n
d e
rofmoney
b.Drawer

c
.Dr
awe
e

d
.Pay e
e
Q.
146
:Li
stofel
ementsofBankdra
ft
.
An
s:( i
) Na meof bank
(i
i
) I ssuanc
ed at
e
(i
i
i) Se r
ial
Nu mber
(i
v) Na meof Paye
e
(v
) Na meof Paye
e’
sBank
(v
i) Amo unto f
Draf
t
Q.
147
:Typeso
fBank’
sCu stome
r.
An
s:(i
) in
div
idu
alcust
omer
(i
i) J oi
ntcus
tomer
(i
ii
) Bu si
nes
sinst
it
ut
ion
s
(i
v) Go vti
nst
it
uti
ons
(v) Co oper
at
iv
einst
it
ut
ion
s
Q.
148:
Wh i
chdocu
me nt
sarebei
ngiss
uestofi
xedde
posi
tAcc
ounth
olde
r?
An
s:Re c
eip
tofacco
untordeposi
tsl
ipcont
ai
ningt
er
msa n
dc o
ndi
ti
onsab
outa
cco
unta
re
i
ss
uedbybankt
ofi
xeddeposi
tac
countho
lder
.
Q14
9:Li
stoutt
hety
peso f
bankdr
aft
?
An
s:
ORDERBANKDRAF T.

a
)In
lan
dba
nkd
raf
t

b)Fore
ignba
nkdr
af
t
CROSSE
DBANKDRAFT
a)Inl
andba
nkdr
af
t
b)Fore
ignba
nkdr
af
t

Q150.
De f
i
neb anksle
tterofcredi
t?
Ans
:Byb ank
erslet
tero fcred
itweme anthelet
ter
swh ic
hab ankissue
sinthefavorofa
pa
rt
icu
larpersonsothat hema ygetace r
ta
inamo un
tofmo neyf
romitsanyot
herbank.Bank
i
ssue
st he
selet
ter
stot hepeoplefort
heirt
ransact
i
ontra
d edea
li
nga n
drecr
eat
ion
a l
jour
neys.
Q151:Whatarethekindso fbankslet
t
ero fcr
edit
?
a)Co mme rci
all
e t
t
ero f
credit
.
b)Pe r
son al\
pri
vat
elett
ersofcre
d i
t
.
Q152:Def
inecomme rciall
ett
erofcredi
t.
Ans
:Th el
ette
ro fcr
editi
sac ommi t
men tontheparto
fthebuyer
’sbankt
op a
yora c
ceptdra
ft
dr
awnu ponitpr
ovide
dd onotexceedas pec
if
iedamount.
Q153:Def
inepriv
atelett
erof c
redit
.
Ans
:Pe opl
ewh oe nj
o yrecrea
ti
ono rprivat
etri
pstotheforei
gnc o
untr
ie
sdon’tl
iketotak
e
ca
shtoa voi
dthec hanceso fl
o s
so rthef
t.Soino r
dertofaci
li
t
atesuchpeop
led u
rin
gt he
ir
j
ourn
eyb ankis
suev a
riouskindofcredi
tlet
ter
swh i
charecal
le
dp r
iva
tele
tt
erofc
redi
t.
Q154:Def
inetr
a v
eler
’slett
erofcredi
t.
Ans
:Itisalett
erwhichisi s
suedtoa nytra
vel
ertofaci
l
itat
ehimfin
anci
al
lydur
ingjour
ney.I
n
t
hi
slet
te
rabanko
rder
sit
smanyoth
erbr
anch
esoth
erco
unt
i
est
opa
yap
art
i
cul
ara
mou
ntt
oa
sp
eci
fi
cper
sonwho
senameiswr
it
te
ninthel
et
te
r.
Q155
:Desc
ri
beth
ek i
ndsof
pers
onall
et
te
rofcr
edi
t?

An
s:

a
.Tr
ave
ler
s’l
et
te
rof
cre
dit
.

b
.Ci
r
cul
arn
ot.

c
.Tr
ave
lerc
heq
ue.

d.Cr edi
t c
ard.
Q.
156:De f
inecredi
tCreati
on.
Ans
:Lo an
sc re
atedeposit
sa n
ds imila
rl
yd epo
s i
t
sc r
eat
eloans.
Q157:Defi
nec i
rcu
larn ot
e?
Ans
:T hec i
rcul
arn ot
ei ss u
chn on-n e
g ot
i
a b
leinst
rumenttha
tab ankiss
uetoa l
lo fi
ts
br
anchesa ndo f
fi
ceso fo t
herc ountr
ie
s.T hi
sn ot
eisi s
suedtog i
vefinan
cia
landt othe
t
ra
vel
ersd ur
ingthei
rjourney.
Q158:Defi
nep ost
alorder?
Ans
:Po st
alo r
derisav eryeasymo deoftr
an s
fer
ri
ngmo neyfr
omo nepla
cetoanotherwi
th
t
hehelpo fpostoff
ices.Theh olderofpostalord
ercanrecei
vethemo ne
yf r
omp ostof
fi
ce
pos
tal
o r
derc a
na l
sob ecross
ed .
Q159:Defi
neimp or
tersandexp ort
e r
s?
Ans
:Th ep e
rsonwh ob uysgood sfromaf or
eigncount
ryiscal
le
di mport
er.Theper
sonwh o
se
ll
sgo odstoothe
rc ount
ryiscall
e dexpor
ter
.
Q.
160:wh i
chlett
ero f
c r
editi
smo rerel
i
ableinint
erna
ti
onaltr
ade?(I
mp ortan
de x
port
)
Ans
:Re vo
c a
bleL.Cismo rerel
iableinin
terna
tio
nalt
rade(i
mportande x
port
).
Q161:Defi
nemo neyo rde
r?
Ans
:Mo neyo r
derisanotherdr
a wnb yonep ostof
f
iceonanothe
rforthepaymentofmoney.
Q162:Towh omT rave
ler’
slet
tero fcr
editar
eissue?
Ans
:Travele
r’
slett
ersofcredi
tareissuestotour
ist
sgoo ut
si
decountryfo
rsakeofto
u r
i
s m.
Q163:Defi
nep a
rti
eso fl
ett
erof credi
t?
Ans
:
a)I mporte
rsbank
b)E xport
ersbank
 c
)Imp
ort
er

d)E xporte
r
Q164:De f
ineI OWEYOU?
Ans:Itiswr i
tt
end ocumenti
nwh i
chthed eb
torwri
tt
enwo r
d swit
hh i
ssigna
turethatIOWE
YOUme ans.Iamy ourdebt
or.Inthi
sstat
ementnei
thercr
editper
io
dn orpro
miseforp a
yment
i
swr i
tt
en.
Q165:De f
ineSt ockc er
ti
fi
cat
e.
Ans:itisap r
ooft hatbear
erofc er
ti
fi
cat
eh asshar
eina nyb u
sin
essa ndal
soh ass h
arein
pr
ofi
t andlosso ft
h atbusi
ness
. Amountofcer
ti
fi
cat
eisme n
ti
o ne
do nit
.
Q166:Pa r
ti
e sof comme rc
iall
ett
erofcred
it.
Ans:(i
)imp ort
er
(
ii
)Ba nko fimp or
te
r
(
ii
i)Ex p
o r
ter
(
iv)Ba nkof expor
ter
Q.1
6 7:Kindso fco mme r
ci
alle
tterofcr
edi
t.
Ans:
(i
) Cl eanlett
ero fcr
edit
(i
i
) Do cume nt
a r
yL .C
(i
i
i) Co nfi
rme dL .C
(i
v) u n–c o
n f
ir
me dL .
C
(v
) Re vocableL .C
(v
i) I rrevocabl
eL .
C
(v
ii
) Re dc l
auseL .
C
(v
ii
i
)Gr e e
nc lauseL .
C
Q168:De f
inec l
eanl et
terofcr
ed i
t?
Ans:Iti
sth atl
ett
e rofcredi
ti
nwh i
chnoco nd
it
ionat
ta
c h
edtot h
eb i
ll
a n
dtheexporterha
sn o
nee
dt od eposi
t t
heb il
lofla
dinginvoi
ceandthepaper
so fi
nsuran
cepo l
i
cytogethismo ne
y.
Q169:De f
ineDo cu mentar
ylet
tero f
cred
it
?
Ans:Ad ocume ntarylet
te
rofcreditpr
ovi
desthatt
hedraf
tdrawnunderiti
stobea c
co mpan
ied
byd i
ff
erentd o
c ume nt
srela
ti
ngt othemerchandi
seE.G.bi
lloflad
ing,i
nvoi
cea ndinsur
ance
pol
icyetc.
Q170:De f
inec onfi
rme dlet
te
ro fcre
dit
?
Ans:Ac onfi
rme dlett
erofcred
itisconf
ir
me difi
ti
sadd e
dthec onf
i
rmati
onoftheint
ermedi
ary
bankbywh ichthat bankal
sob i
n dsi
tse
lfbygivi
ngunder
tak
ingtohonorthedra
ftdrawnunder
i
t.
Q171: Whichty peo fL.Ci su sedb ytrade r
si nPa ki
st
an?
Ans:Ac onfi
rme dL .Cisu sedb yPa ki
st
a nitr
ad e
rsforInt
ernati
on alTr
ade.
Q172: Def
ineu n–c on f
irmedl ett
ero fcred i
t?
Ans:Inc aseo fthislett
ero fc r
e di
tinterme diar
yb ankfor
wa rdsth elet
t
ero fcredita d
viseo r
not
ifi
esthelett
e ro fcr
ed i
ttoth ebe nefi
ciarybu tdoesn ot
a ssumea n
dlia
b i
li
tyinthisreg
ard.
Q173: Def
inere voc a
b l
ele t
tero fcredit
?
Ans:Th epayme ntofth i
sl e
ttero fcreditisn otc o
nfi
rmedb eca usetheba nkori mport
ermay
canceloralt
eritsc ontent
sa ta nytimed uet oa nyreason
.
Q174: Def
ineirrev ocabl
el et
tero fcredit?
Ans:Th epayme n tofthislet
tero fcreditisc onf
irmedb e
cau seb ankortr
a dercann o
tcancelor
al
teri
t bef
orep ayme nt.Sot hi
sl et
tero fcrediti
smo r
erel
iableinin t
erna
ti
on a
l t
rade.
Q175: Def
inefixe dlett
ero fcred i
t?
Ans:T hi
sl et
tero fc redi
ti si s
sue df o
rap art
icul
artra
nsa ct
iono rforth ep a
yme ntoffix
ed
amo u
n tanditisa utomatical
lyca ncell
eda ttheco mplet
i
ono f t
ransact
ionorp ayme nt
.
Q176: Def
inere volvi
n glett
ero f c
re di
t?
Ans:Al t
hought hi
sl et
tero fc reditisi ssuedf orpaymen to fas peci
fi
ca moun t
,b u
ta tt
he
completi
ono fallthetransacti
o nitisauto matica
ll
yr e
n e
wedf orthes amesp eci
fi
ca mount.
Q177: Def
ines pe ci
allett
ero f c
red i
t?
Ans:Th i
slett
ero fc r
ed i
tisr est
rict
e dinitso perati
ontoap arti
c ul
arint
ermed i
aryb a
nk,named
i
nle t
t
ero fcre
d i
t thi
sb anka ctsasa d v
isi
n ga swe l
lasnegoti
a t
ingb ank.
Q178: Def
inefre el
yn eg ot
iableletterofc r
e di
t?
Ans:Un dert hisl et
tero fc reditth ee xporterc a
ng etth emo neyb ys howingc oncern
ed
docume nt
stoa n yb a
n k.Thisb ankma yb ed i
ff
erentf
romthei nformator
yo radvi
singb a
nk.
Q179: Def
inetra nsfe
rab l
eletterof credit
?
Ans:Th elet
tero fc r
editwh oser eceive
rh asful
lr i
ghtt
oe ndo r
s eiti
sc a
lledtransfe
rabl
elet
ter
ofcre
d i
t.
Q180: Def
inere dc la
u selett
e rofc redi
t?
Ans:Inthislet
tero fcred i
tthei nt
erme diaryb ankcanp r
ovidelo antoexporterf
o rpacki
ngand
t
ransporta
ti
ono fg oods.T hes tat
eme ntc ontai
ningthed et
ailo forderi
ss pe c
ial
lywrit
tenwit
h
re
di nk.
Q181: Def
ineg ree nclausesl et
tero fcr
e dit?
Ans:Itisthed eve l
opedf ormo fredc l
a usele t
t
e rofcre
ditinwh i
chthee xport
erc angetlo
an
notonlyforpack i
n gortransp ort
ati
o nbu talsoforstor
agea swe ll
.
Q182: Def
ineb ac ktob ackletterof cr
ed i
t?
Ans:Int hi
slett
ero fcredi
tther eceiverofmo ne yisn otthesendero fgoods.Itmeansthe
benef
iciar
yisnotthea ct
ualsup pli
er.Hep r
oduceso ropenshisownl et
terofc
reditt
oh i
sbank
ando nthestr
engtho fi
tg e
tso peneda noth
erlett
e rofcredi
tinthefavoroft
heactualsupp
li
ers
.
Q183: Defi
nePre-Sh i
pme ntfi
n ance.
Ans:Ex po
rt
erc a
ng et pr
e-shipme ntfi
nancesforp acki
ng,h a
ndli
ngan dmo ve
me nteve
nf o
rthe
pur
c haseofme r
chand i
se.
Q.
1 84:De f
i
neBa nks ta
teme ntinli
uo f pr
ospectus.
Ans:ift h
eb ankisn otinp o s
iti
ont os ubmitp rospect
usa tthetimeo fregist
ra
ti
on,then
st
ateme nto
fli
uo fprospect
u siss e
n tt
or eg
ist
rarc ontai
ni
n gesse
n t
ia
ls.
Q.
1 85:De f
i
nec er
ti
ficat
eo fincorporat
ion.
Ans:ifregi
st
rarf
indsa l
lthed ocume ntsri
ghtanda l
lfor
ma li
t
ieshavedo ne.
Thenh eis
suesthe
cer
ti
fi
ca t
eofincor
po r
a t
i
ont op romoters.
Q.
1 86:De f
i
neL et
tero fcomme ncemen tofbus
ine ss.
Ans:Af t
erget
tingc ert
if
i
c a
teo fi n
c or
po r
at
ione veryp ubli
cb an
kh ast og e
tco mmen c
ement
cer
ti
fi
ca t
etost
a r
tbu si
ness.
Q.
1 87:De f
i
nePr omo t
ers.
Ans:Th eper
sonswh owo r
kfo rest
a bl
ishmentofb ankisca l
l
edpromo t
e r
s.
Q.
1 88:De f
i
neMe rch ant
s.
Ans:Th emerchant
swe r
ec onsidereda sver
yricha n dresponsi
bl
ep eopleduetog oodrep
ute
ofdeali
ngsinmo ney.
Q.
1 89:De f
i
nemo n eylenders/Seth.
Ans:Mo neylender
swe rerichp eoplewh ostar
tedt olendthei
rsurpl
usmo n
eyton eed
yp eop
le
oninteres
tbasi
s.
Q.
1 90:De f
i
neGo lds mit
h.
Ans:Pe opl
econsideredthema sho nestandtr
u stwo rt
hy.Theywe r
ep eopl
ewh on ur
tur
edthe
banki
ngs yst
ems t
artedb yme rchants.
Q.
1 91:De f
i
neCr edit
.
Ans:thewo r
dc r
editd e
ri
v e
df romL ati
nwo rd.Wh ichme ansthecapabili
t
yo fo
ne ’
stopayback
hi
sd ebts.
Q192: Defi
nefore
igne xchange ?
Ans:Th emeansa ndme thodsb ywh ichrig
h t
stowe al
thex p
ress
e dintermsofthecurre
ncyof
onec ount
ryarecon ver
tedintorightstowealt
hi nt er
mso f t
hecurre
n cyofanot
hercountr
yare
knowna sfor
eignexc ha
ng e.
Q.
1 93:Me t
hodso fforei
gnp ayme nt.
Ans:( 1) L et
terofCred i
t
 (
2) F
ore
ignBil
lofEx
chan
ge
(
3) F
ore
ignBankdra
ft
(
4) T
rav
ell
i
ngcheque
(
5) I
nt
er
nati
ona
lmo ne
yorde
r
(
6) F
ore
ignExcha
ngeDeal
er

Q.
194 :
Wh atisexchangec o
ntro
l pol
ic
y ?
Ans
: I
tref
erstotheme asure
s,whichgo v
ernme nt
of aco
untr
ytake
sfori
nfl
uen
cin
gt hefor
ei
gn
ex
changerate.
Q.
195 :
Wh atareob j
ecti
vesofExchangecontrol
?
Ans
:
1 .Toc heckthefl
ightofca
pit
al
2 .Stabi
li
tyinexchangerat
es
3 .Top r
o t
ecthomei ndus
tr
y
4 .Top r
o moteeconomicgrowth
5 .Favorabl
eb al
anceofpayme n
t
Q196:Defi
neforeignexchangerat
e?
Ans
: Theexchangerateist
hep r
iceofunitoff
orei
gnc ur
re
ncyinte
rmsofdomest
iccurr
ency
.
Q.
197 :
T y
peso ffor
e i
gne x
changerate
.
Ans
:
a.Sp ot r
ate
b.I nt
er-bankrat
e
c.F orwardrate
d.Of f
ici
alrat
e
e.Se ll
ing/
Bu yi
ngrat
e
Q.
198 :
De f
i
n eSp otRate.
Ans
:T heratewh ichisp rev
ail
i
ngi nt h
ema rk
eta tpa
rt
icul
arti
me.Ifyougot od e
ale
rof
cu
rrenc
ya s
kh ima boutexch
angeratethatr
ateiscal
ledspo
trat
e.
Q.
199 :
De f
i
n eint
er-bankrat
e.
Ans
:T herateatwh ic
ht hecent
ralandc omme rc
ialban
kssell
sandb uyf
ore
ignc ur
ren
cyto
ea
cho t
heriscall
edinter
-bankra
te.
Q.
200 :
Wh enF orei
gne xcha
ngerateisinfavorofcount
ry?
Ans
:Wh e
nt hed emando fcur
rencyo fanyco un
tr
yh avi
ngincr
eas
ingtr
endthe
ni ti
sinthe
f
avorofcount
ry.
Q.
201:Causeso fchangesinthee x
changer a
te.
Ans
:( 1
) Ch angesinPrices
(
2 ) Ch angesinImp or
tsandE x
p or
ts
(
3 ) Ca pit
almome nts
(
4 ) I n f
lu
en c
eo fBanks
(
5 ) I nfl
uenceof s
pe c
ulat
i
o n
Q.
202:Howc ap i
ta
lmo mentinfl
uencesexchanger at
e?
Ans
:Capit
alfl
o wstendtoa p
p r
eci
atethevalueofthec u
rrencyofthecapi
tali
mp o
rt
ingcount
ry
an
dd ep
reci
atethev al
ueofthecurre
n c
yo fcapi
talexpor
ti
n gcount
ry.
Q.
203:HowBa nkrat
einfl
uencestheex c
ha n
g erat
eo fcountry
?
Ans
:ifbanksrateri
s e
srelat
ivetoothercountri
es,mo r
ef un
d swil
lfl
owin t
othecount
ryfr
om
ab
roadtoe ar
nh i
ghi n
teres
tr a
te.Dema ndo fdo mest
icc ur
renc
ywi l
lmo veinfavorofthe
co
untr
y.
Q.
204:expl
aint h
eme thodof st
andsti
l
lagreeme ntofexchangecontr
ol.
Ans
:Un derthiss yst
em,e i
therthes horttermd ebtisc onver
tedintolongtermd ebtor
pr
ovi
si
onisma defori
tsgradualr
epaymen t
.
Q.
205:Howt herateofexchangeisd e
terminedun dergoldstand
a r
d.
Ans
:underg ol
ds t
an da
rd,therat
eo fexchangeisap oi
n twherethequanti
t
yo fgol
dc o
ntai
ns
i
nthecoi
nso ftwod i
ff
ere
n tcount
ri
esisequ a
l.
Q.
206:Lis
tdo wntheme thodso fdet
ermini
nge xchangerate.
Ans
:( i) Go ldStandar
ds yst
em
(
ii
) Pu rchasi
ngp o
we rpar
it
ytheory
Q.
207:Defi
neMo ney.
Ans
:Al lthi
ng sg ener
all
ya c c
epte
db yp ubli
ca sme d i
umo fe xchange,aut
h o
ri
zedb y
Gove
rnmentof par
ti
cula
rstat
e.
Q.
208:Defi
neMo neyMa r
ket.
Ans
:Ma r
ketinwh i
chfundsa r
eb orr
oweda ndlentforper
iodo foneyearorl
essthanoneyear
.
Q.
209:Defi
neCa pit
a l
ma r
ket.
Ans
:Ma r
ketinwh i
chfundsa r
eb orr
oweda ndlentforape r
iodoveroneyear.
Q.
210:Lis
tdo wnthei n
sti
tut
ionso f
mo neyma rket
.
Ans
:( i) Ce ntr
alBank
(
ii
) Co mme rci
alBank
(
ii
i) No n-bankfi
nanciali
nt
ermed i
ar
ies
(
iv) Di sc
o unth
o us
e sandbil
lbroker
s
(
v) Ac cepta
nceHo uses
Q.211:Defi
neBi l
lbro ker
s.
Ans:billbrokerso perateinu nderdevelopedmo neyma rket
.Th e
ya ctasinter
media
ri
es
bet
we e
nb orr
owe rsan dlendersbyd is
counti
ngb il
lofexch
angeatnominalcommissi
on.
Theyactasintermed i
ariesbetweenb orr
owe r
sa ndlender
sb ydis
count
ingb i
l
lofexcha
ngeat
nominalcommi ss
ion.
Q.212:Defi
ned iscount houses.
Ans:Ind eve
lop e
dmo n eyma rket
s,pri
vatec ompani
eso per
atedis
counth ou
ses;th
eyactas
i
nter
me dia
ri
esb e
twee nb orr
owe rsa n
dl endersb ydis
counti
ngb i
llofexchangeatnomina
l
commission.
Q213:Ex p
lai
nt heroleo fdiscounthousesa ndb i
l
l b
roker
sinmo neymarkets
.
Ans:bil
lbrokerso perat
ei nun derdevel
ope dmo neyma r
ket
,andd i
scou
n thouse
so pe
rat
ein
underdevel
ope dmo ne yma r
ket.Theyactasi nt
ermedi
ari
esb e
tweenborr
owe r
sandlend
ersby
di
scounti
ngb i
llofexch angeat nominalc
ommi ssion.
Q.214:Descri
bet hefun ct
iono fnearmone yinmo neymarket
.
Ans:( i) e conomi zi
ngtheu seo fc
ash.
(
ii
) e aseintransfer
ri
n gfunds.
(
ii
i) h el
pi nc omme r
c eandindustry
Q.215:Lis
tdo wntheq ual
it
ieso forga
niz
e dmo neyma r
ket.
An s
:( i
) Ce ntr
al bank
(
ii
) Or ganizedb a
nkings yst
em
(
ii
i) Sp ecial
izedsub-ma rket
s
(
iv) Un if
ormi nter
est
(
v) E la
sti
city
Q.216:Postoffi
ces avi
n gbank.
Ans:commu nityofu nderdevel
o pedarea
sh avinglac
ko fmodernbanki
ngf a
cil
i
ti
es,t
op r
ovi
de
t
hemb an k
ingfaci
li
ti
e sp ostof
fi
cep rov
idesb an
kingfaci
l
it
iesandal
sop r
ovi
d el
oans.
Q.217:Defi
neNa ti
on al
izat
ion.
Ans:T r
ansfero fan yp ropert
yo rinst
i
tuti
onf romp ri
vateownershi
ptos t
at
e/go
ver
nme n
t
owners
h i
p.
Q.218:Causeso fnati
o nal
izat
ion.
Ans:( i) i n e
ffe
ctivecentr
a lbankcont
rol
(
ii
) L oanstor el
ati
ves
(
ii
i) Mi suseo fcredi
t
(
iv) Pr ot
ectiono fbl
ackmo n
ey
(
v) i mp ropera l
loc
ationof f
unds
Q.
219
:Expla
intheme rit
so fnati
onal
iz
ati
on.
An
s:(i
)fai
rdi
str
ibut
iono floans
(i
i
)contr
o l
ove rexpenses
(i
i
i)Pri
celesss er
vic
es
(i
v)In
creas
ei ne mployment
Q.
220
:Expla
inthede me r
it
so fnati
onal
i
zat
io
n.
An
s:(i
)L oweff
ic
iencyo femp l
oyees
(i
i
)L owL ev
e lofcomp eti
ti
on
(i
i
i)Pol
it
ical
Pr essur
e
(i
v)Corr
upti
ona ndbadd ebt
s
(v
)Diff
ic
ult
ying et
ti
ngloan
Q.
221
:In1974s ma l
lb anksme rge
dintola
rge
rbank
s,i
nth
isre
sul
twhi
chf
iveban
kscame
i
nt
oexi
st
ence?
An
s:( i
) Na t
i
on alBanko fPaki
st
an
(i
i
) Ha bi
bBa nkL i
mi t
ed
(i
i
i) Un i
te
dBa nkLimited
(i
v) Mu sl
imCo mme rci
alBank
(v
) Al li
edb ankof Paki
sta
n
Q.
222
:Anythreebank sgotn at
iona
li
zed.
An
s:(i
) Na t
i
on alBanko fPaki
st
an
(i
i
) Ha bi
bBa nkL i
mi t
ed
(i
i
i) Un i
te
dBa nkLimited
Q.
223
:Defi
nePrivat
izati
ono fbanks.
An
s:Tr
ansf
erofanyp roper
tyo ri
nsti
t
uti
onfr
omg o
ver
nme
ntown
ers
hipt
opr
iv
ateo
wners
hip
.
Q.
224
:Namea nythrees peci
ali
zedbank.
An
s:( i
) Ag r
ic
u l
turaldevel
opmentbank
(i
i
) I ndust
rialdevelopmentba
nk
(i
v) F ederalco op
e r
ati
vebank
Q.
225
:Namea nythreep ri
vatebanks.
An
s:( i
) As k
aricomme r
cialba
nk
(i
i
) Ba n
kAl fal
ah
(i
i
i) Ba n
kAl -Habi
b
Q.2
2 6
:Namea nythreeforei
gnb a
n ks
.
Ans:( i
) Ci tyBa nk
(i
i) Ba nkAlfal
ah
(i
ii
) Al -baraka
(i
v) PL C
(v) St andardCh ar
ter
edB ank
Q.2
2 7
:Named epartmentsofsta
teb a
nkso fPaki
sta
n.
Ans:
i.De pt.
of I
ssu
a nc
en ot
es
i
i.Ba nki
ngDe pt
.
ii
i.E xcha
ngeratecontr
oldept.
iv.Re sea
rchDep t
v.T ra
ini
ngd e
pt
Q.2
2 8
:Capit
al Divi
siono fi
ndust
ri
a lde
velopme ntb
ank.
Ans:5 7%f ederalGo vt
36%s tateban kofPaki
sta
n
7%p rovinci
al Govt
Remainingtop u
bli
ccorpor
a t
io
ns
Q.2
2 9
:Defi
neRi ba.
Ans:I
tisanAr abicwo r
d.Itme ansincr
ease,g r
owt
ho rexpan
sion
.Itmeanst
h eadd
it
io
nal
amountwhi
chal enderrecov
e r
sfr
o mtheb orr
oweraccor
di
ngtothefi
xedra
teov
e ra
ndabove
t
hep r
inc
ipa
ls um.
Q.2
3 0
:whicha mo unt c
onsid
e r
eda si
nter
est?
Ans:
oi fiti
sc al
cula
tedonp re
-det
erminedrat
e
oI thasn orelat
i
o ns
hipwiththeriskofpr
ofi
torlos
sthata
ne nt
er
pri
seord
ina
ri
ly
faces
Q.2
3 1
:whent hein t
erestconcep
tisendedinPa kis
tan
?
Ans:In1979firstti
met r
ansact
ionsofint
ere
s t
isendedinNI
T ,
HBFC,CPandSBFC.
Q232:Whenwa sp r
o f
it&lossshari
ngd e
p osi
tsint
rod
ucedinPaki
st
an.
st
Ans:Fr
om1 J anuary1 981
,Profi
tandlossshari
ngsavi
ngandter
md epos
it
swerein
tr
oduc
ed.

Q.
233
:Wh
ati
sQa
rz-e
-Ha
sna
?
Ans
:ban kspayloantod eservi
ngp eopl
eforthei
rne e
dsli
kema r
ria
g eloa
n ,
educat
ionloa
na nd
he
alt
hloana ndd oesnotch ar
gei n
ter
estonit,andd e
mandsp r
inci
palamo u
ntifbo
rroweri
sin
t
heposit
iontop ay.
Q234:Defi
neHi r
ePu r
chase.
Ans
:Th eb a
nkp ur
ch as
esth especif
ie
dg oodsandh ir
esthe
mt ocli
entsonthep e
ri
odical
i
nst
al
lme nt
s.Ba n
ksc har
gef ai
rretur
no nactu
al c
ost o
fgoodshir
e d
.
Q.
235:De fi
neIsla
mi cdevelopme ntbank(I
DB).
Ans
:T hisban kwase sta
b li
shedinp ursuan
ceo fthed ec
lar
ati
onis s
uedb yac onfer
enc
eo f
f
in
ancemi ni
sterofMu sl
imc ountri
esheldinJeddah(KSA)inZilQadah1 39
3.
Q.
236:F unct
ionsof I
DBs.
Ans
: (
i) I tprovide
sf i
nanceandloanstome mberMu sl
imc ount
ri
es.
(
ii
) I tp r
o vi
desac hannelforthef or
ei
gnt r
adea mo ngme mb erMu s
li
m
c
oun t
ries
.
Q.
237:De fi
neh yp
o t
h e
cati
o n.
Ans
:Wh enp ers
ont akeloanf r
o mb ankbyg ivi
ngp r
opert
ya ssecurit
y.Onl
yp ossess
ionis
t
ra
nsfe
rredrathert
h anown ersh
ip.
Q.
238:De fi
neBu yi
nga nds el
li
n gofsecuri
ti
es.
Ans
:Bu yinga ndselli
ngo fs h
a r
es,bondsa ndg over
nmentb o
n dsins t
ockma r
ketiscal
led
t
ra
deo fsecurit
i
es.
Q.
239:Pa rt
i
e sofsecuri
ty.
Ans
:( i
) Bo r
rower
(i
i) Bo r
rowee
(i
ii
) Gu a
ran t
or
Q.
240:De fi
nep r
ivi
lege.
Ans
:Itistherightofle
n d
e rtoho l
dthep r
oper
tyo fBor
roweeincaseh edoesn
’tpayamountof
l
oanback.Th i
srig
h tre
ma i
n stheri
g h
t o
f l
enderunti
lamounti
su npaid
.
Q.
241:De fi
neMa rku p.
Ans
:Ba nkp u r
chasesa s
s et
so rs omethi
ngfo rit
sc ust
omersa nds al
ethemt oc ust
omers
ha
vin
gs uit
ableprof
itatcertai
nma rkuponb a
sisoffutu
repayments.
Q.
242:De fi
neMa rkDo wn.
Ans
:Inthisca s
ec ust
ome rsaleshistr
ansf
erabl
eo rnon-t
ra
nsfer
ableproper
tytobankonb as
is
oft
hi
sa greementthatcust
o merwo ul
db uytha
t pr
op e
rt
yb a
ckinn e
arfutur
e.
Q.
243:Me thodsof I
n t
ere
s tfr
eeb anki
ng/Isl
amicb ank
ing.
Ans
:( i
) Sa vingc ha
rg es
(i
i) L e
asing
 (
iii
) Hi r
ep urcha
se
(
iv) Sp ecialFa
cil
i
ti
es
Q.
244:Na mea n
yt woc en
tra
lbanks.
Ans
:( i) St at
eBa nkofPaki
st
an
(
ii) Ba nko fEngl
and
(
iii
) Re serveBankofIndi
a
Q.245:Typesof Comme rc
ialba
nks.
Ans
:( i) L i
sted/Schedul
edBank (i
i
) No n-Li
st
ed/Non-
Sched
ule
d
Q.246:Anytwoe xamp l
esofComme rc
ialba
nks.
Ans
:( i
) Mu sl
imCo mmerci
alBank
(
ii) Ha b i
bBa n
kL i
mit
ed
(
iii
) Re serveBankofIndi
a
Q.
247:De f
ineaPe rs
o na
lGuarant
ee.
Ans
:
Q.
248:De f
ineCredit
/Loan.
Ans
:i f ap e
rsontakeslo
ano nthi
scondi
ti
onth
athewo ul
drep
aythi
samounti
nnearf
utu
re.
Q.
249:
Ans
:
Q.
250:De f
ineIs
lamicBa nk
ing.
Ans
:inthissyst
e mb ankoper
a t
esandrende
rsser
vi
ces,acc
ordi
ngtothesha
ri
ahofIs
la
m.In
t
hi
ss y
stemb anko pe
rate
sa c
cordi
ngtotheru
leofsh
areinpro
fi
tandlo
ss.
Q.
251:De f
ineIs
lamicBa nk
.
Ans
:Ban kwh ic
ho p
e r
at
esa ndrender
ss e
rvi
ces
,accor
dingtotheshar
ia
ho fI
sl
am.Inthi
s
sy
ste
mb a
n koperat
esaccord
ingtother
uleofsha
rei
np r
o f
i
tandlo
ss.
Q.
252:Na meo fI
s l
amicbanks.
Ans
:( i) Me eza
nBa nkLt
d
(
ii) Du b a
iIsl
amicBank