Insurance Awareness - GK

1.The purpose of providing depreciation on the bank's property is

To reduce the profit of the bank to make usual allowances for annual wear and tear to enable the bank to recover this amount from the Reserve Bank of India to Strengthen the financial position of the bank

2.Bank Rate is

a rate of interest charged by the commercial banks from the borrowers for advances against Government Securities the lowest rate of interest charged by the commercial banks from the borrowers the rate at which the Reserve Bank of India would rediscount bills of exchange or other eligible commercial papers, the rate at which commercial banks discount bill of exchange for their customers.

3.In case of a Hindu Undivided Family, when Karta dies leaving overdraft account

old account is closed and a new account opened Fresh HUF letter is obtained all the co-partners will operate on the account None of the above

4.In the Balance Sheet of a bank, contingent liabilities are shown

on the liabilities side of the Balance Sheet by way of a deduction from the assets by way of a footnote in the Schedule on the assets side of Balance Sheet

5.When a cheque with forged drawer's signature is paid by the bank , the paying banker is

protected if the cheque is paid in good faith and without negligence protected if the forgery could not have been detected with the exercise of reasonable care and prudence not entitled to debit the drawer's account with the amount of the cheque liable to the drawer only if there has been no contributory negligence on the part of the drawer