Banking and Bankcrupt Drive

Banking and Bankcrupt Drive

BANKING Q / A (Short) Q-1. How did bank cruppt drive? Ans. The early bankers had transacted their money landing activities on the benches in the market palce.if any banker are not in a conidition to pay his debts,the cridetors used to break his bench and he considered as unsolvent. Now in these days if any bank facing these kind of situation is called ‘’Bank currupt’’. Q-2.What is meant by Foreign Bank? Ans.These banks are not own and control by government and the peoples of the country.they provide there bank services for the people of their country. For Example; City Bank. Q-3.Define mortgage Bank? Ans.These banks provide loans against moveble and imovable property.generally the mortgage moveble properties are in the form of Gold,Silver and any Financial documents etc.the imovable properteis are shop,land and house etc. For Example; 1. The Mortgage Bank of England. 2.The Mortgage Bank of Spain. Q-4.What is meant by Cash Reserve? Ans.Accordin to D.G Loced:- ‘’The part of capital of any trading bank,financial corporation or institution it must be assential to keep deposit with Central Bank and keep it with it self that is called Cash Reserve’’. Q-5.What can be different forms of cash reserves of banks? Ans.The following are the different forms of cash reserves. 1.Cash in hand till money. 2.Cash with Central Bank. 3.Balances with other Banks. Q-6.Write down the method creating of credit by Commercial Bank? Ans.The following are the different methods of creating credit by commercial bank. 1.Advancing loans....

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