Thakur Ke Haath
Full form of KYC
Know Your Customer/ Client
Commercial banks are further divided into 2 categories. What are they?
Public Sector and Private Sector Banks
A pan card is mandatory for account opening. (True/False)
False
Do you need to be a citizen to open bank account in a country? Justify.
No
Sometimes people live and work in a country but aren’t citizens. Even if someone isn’t a country's citizen, they’re allowed to have an account at a bank. To open the account, they’ll need specific forms of identification like their passport or an identification card from the government in their home country
What is another name for Income Statement?
Profit and loss statement
Statement of operations
Name the types of accounts in a bank.
Savings Account
Current Account
What is Simpl?
A new age payment method similar to credit card.
What is 50: 30 : 20 budgeting?
50% of income should go to needs,
30% of income should go to wants, 20% should go to savings and investments.
In Commercial banks, its members are the owners and customers of the bank. (True/ False)
False
What are 6 stakeholders of a business?
Customers, Employees, Investors, Suppliers, Communities, Government
What are the 2 benefits of net-banking?
Ease of transactions, convenience
List three avenues of cashless exchanges.
Debit Card
Credit Card
Lazy pay
Simpl
Internet Banking
What identification or information would you need to open an account at a bank?
Proof of Identity
Proof of Address
What is interest?
It is the cost of borrowing money
What is the basic equation of Accounting that always holds true?
Assets = Liability + Capital/ Equity
What is a Bank? (detailed definition)
Banks are financial intermediaries.
They accept deposits and grants loans.
Name the factors on which the value of EMI depends.
Principal amount
Rate of interest
Duration of loan
Difference between cheques and demand drafts.
Demand drafts are more secure compared to cheques. It acts as a guarantee of transaction.
DDs are issued in situations where the parties are unknown to each other and lack trust.
What is the role of Central Bank in an economy? Mention any 2.
Printing of currency
Deciding interest rates
Regulating other banks
What are two different categories of insurances?
Life insurance and General insurance
Should RBI print any amount of currency to meet the liquidity needs if India? Justify
No
Because printing of too much of currency will lead to Hyperinflation and country's economy will suffer
What is a Cashless Economy?
An economy where transactions are aided by digital modes of payment and there is no use of physical modes.
Mention the 3 Golden rules of accounting.
Debit the receiver, Credit the giver
Debit what comes in, credit what goes out
Debit all expenses and losses, credit all income and gains
Personal assets of the partners in a Partnership firm are protected in case of bankruptcy. True or False?
Justufy
False
Partners of a firm have unlimited liability
What is the term used for the situation when someone misses the loan repayment deadline?
It is called Default