A trade finance instrument not supported by bank guarantee is called   O a. Irrevocable LC   O b. Revocable LC   O c. Forfaiting   O d. Open accoun

Q: Vhen a bank grants a consumer loan to someone, it leads to: O a. an indirect flow of funds Ob. Oc a…

A: Consumer loans are a type of loan offered by banks and other financial institutions to individuals…

Q: secured line of credit: Select one: a. is backed up by pledged assets b. is not backed up by pledge…

A: At the time of providing the facility of the line of credit, the financial institution has…

Q: Which of the following is not a Money Market Instrument? a. Commercial Paper b. Debentures c.…

A: Money market is related to short term debt instruments and not long term debt instruments.

Q: Which of the following are the instruments of money market? Select one a Certificate of deposits…

A: Money market fundamentally alludes to a part of the monetary market where monetary instruments with…

Q: Examples of off-balance-sheet activities include foreign exchange market transactions. Oborrowing…

A: Option b. Borrowing from other banks:Reason: Borrowing from other banks typically appears on the…

Q: Commercial loan agreements should contain which of the following: a. representations b. fees and…

A: A commercial loan agreement is an agreement between the borrower and the lender. The lender provides…

Q: Identify which one of the following is also called as Fixed deposit account? a. Demand deposit b.…

A: Fixed deposit accounts are fixed deposit accounts have fixed MATURITY period and can be withdrawn…

Q: accounts are not transferrec to Realization Account? O a. Bank overdraft O b. Reserve fund O c.…

A: Option D is the correct Answer i.e All Options are Correct.

Q: Bills payable and promissory notes are negotiable instruments and are used mostly to replace_____…

A: Bills Payable and promissory notes are negotiable instruments issued for accounts payables. These…

Q: A foreign currency loan is a typical example for   O a. Currency Risk   O b. Interest rate risk…

A: A foreign currency loan is one in which you borrow money in a foreign currency, such as Swiss…

Q: Bank loans often are arranged under existing lines of credit. What is a line of credit? How does a…

A: LiabilitiesLiabilities are referred to as the obligations of the business towards the creditors for…

Q: Which of the following is NOT commonly regarded as being a credit policy variable? * Collection…

A: “Since you have asked multiple question, we will solve one question for you. If you want any…

Q: Which one of the following is not a money market instrument?  A.     Treasury bill  B.…

A: Money market instruments are investment securities having a maturity life less than one year. These…

Q: The purpose of a negative pledge on the borrower's assets in an unsecured bank loan agreement is to

A: Negative pledge is included in contracts to prevent the borrower from using their assets to obtain…

Q: Risk-weighted assets increase Risk-weighted assets decrease

A: Step 1 Risk assets are calculated by adding the amount of risk to the appropriate risk weight of the…

Q: Which one of the following is NOT the standard covenants in loan contracts? a. Audit fee b. Actions…

A: In this question, we must understand what a loan covenant is. A loan covenant is a clause mentioned…

Q: Which of the following assets would be considered least liquid? Group of answer choices A savings…

A: A liquid asset is one that can be quickly converted into cash by being sold to an interested party…

Q: Buyers credit is issued in   O a. Home currency of the borrower   O b. INR   C. Foreign…

A: Buyer's credit is a credit facility where a short term loan is financed to the importer of goods and…

Q: NSF results in a bank crediting one’s account. True or false

A: Non-sufficient funds in banking terms means that there is not enough money in the account to pay the…

Q: A guarantee issued by an FI that obligates the FI to pay if the purchaser of the letter defaults on…

A: Under stock market, there are two different markets working. One is primary market under which the…

Q: refers to the possibility that the debtors supported by bank credit are unable or unwilling to repay…

A: Commercial banks are providers of funds and financing to their customers who are in need of funds.…

Q: Which of the following statement is not true about Central bank? a. It ensures stable financial…

A: Central bank is the lender of last resort.

Q: do not earn

A: Non- Banking Financial Institutions - NBFCs are financial institutions that provide bank-related…

Q: When a depositor can take out more than the amount of funds, he/she has within an account is known…

A: Solution:- Taking out more funds means withdrawing more funds than the actual balance in the bank…

Q: . Accounts receivable financing is the term used to describe which of the following types of loans…

A: In Accounts receivable financing companies make a collateral of its account receivables to get loan…

Q: Which of the following is not likely cause of Default? Select one: a.Lack of compliance with loan…

A: The term “Default” in terms of a loan refers to the failure of repayment of the loan by the borrower…

Q: Interbank borrowings are borrowings among banks are non-collateralized loans among banks are subject…

A: Every Bank is  required to hold an adequate amount of liquid assets, such as cash, to maintain its…

Q: A deposit institution can offset its liquidity risk to reduce its net deposit drains by reducing its…

A: Option A When a deposit institution faces liquidity risk, it can reduce its net deposit drains by…