Commerce Questions and Answers – Part11
101. What is business cycle?
A recurring sequence of changes business activity.
102. What is a Bank?
According to Prof: John pagets “no one or nobody coporate or otherwise can be a banker who does not open current accounts; pay cheques drawn on himself and collect cheques for costomers”.
103. What is an exchange bank?
Exchange banks extent financial assistance to foreign trade and deal in foreign exchange.
104. What is Quantitative credit control?
Quantitative credit controls are used when it wants to control the total supply of money
105. What is Qualitative credit control?
Qualitative credit controls are used when it wants to control the use of funds made available by the commercial banks to customers
106. What is Open market operation?
Open market operations imply the purchase and sale of government securities by the Central Bank in the open market.
107. What is V.R.R.?
Variable Reserve Ration
108. Define Endorsement?
’Endorsement’ or ‘indorsement’ is the act of signing the name of the maker of the holder of a negotiable instrument for the purposes of negotiation.
109. What is Sans Frais endorsement?
It is an endorsement where the endorser specifies that the endorsee or any subsequent holder need not incur any expense on the instrument on his account.
110. What is facultative Endorsement?
In a facultative endorsement, the endorser waives some of his rights, like the right to receive notice of dishonor.