Reference no: EM132603952

Question 1: Which one of the following is/are agency services rendered by the banks on behalf of their customers?

a. Execution of standing orders

b. Collection and payment of credit instruments

c. Acts as a trustee

d. All

Question 2: Which one of the following is not correct about exchange banks?

a. Buy and sell foreign currency

b. Accept and collect foreign bills of exchange

c. Finance mostly for domestic trade of a country

d. None

Question 3: Two or more banks may jointly provide large term loans to the borrower against a common security. Such loans are called ________________.

a. Participation loans

b. Consortium finance

c. Syndication loan

d. All

Question 4: Which one the following not correct about current deposit?

a. These deposits cannot be withdrawn at any time.

b. Also known as demand deposits.

c. No interest is allowed.

d. Cheques are used to withdraw the amount.

Question 5: Which one of the following is considered as sources of banks' income?

a. Interest on Loans

b. Commission

c. Interest on Investments

d. All