BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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For trading in shares of companies
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For having mobile banking facilities
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For taking retail loans from banks
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For non resident account
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Detailed explanation-1: -Demat accounts are primarily used to hold the bought shares. In case you want to buy or sell a specific share, you need to login to your Demat and trading account, which is also linked to your bank account.
Detailed explanation-2: -Detailed Solution. The correct answer is Shareholders have to open this account to buy and sell shares.
Detailed explanation-3: -And considering the fact that shares and other financial securities are currently required to be in the dematerialized form, a demat account is necessary to be able to buy and sell shares on the stock market.
Detailed explanation-4: -Demat Account is short for dematerialisation account and makes the process of holding investments like shares, bonds, government securities, Mutual Funds, Insurance and ETFs easier, doing away the hassles of physical handling and maintenance of paper shares and related documents.
Detailed explanation-5: -Just like the demat account, a trading account is a must for investing in the stock market . This is because to trade in the stock markets, you need to be registered with the stock exchange.