BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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In banking parlance, ‘Sub-prime’ refers to
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landing by banks at rates below PLR
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funds raised by banks at sub-libor rates
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group of banks which are not rated as prime banks as per bankers almanac
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lendingdone by banks/FIs to customers not meeting with normally required credit appraisal standards
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Explanation:
Detailed explanation-1: -Banks grant advance loans on securities that can be converted and marketed into cash easily within short notice. This is referred to as liquidity in terms of bank lending. Banks only put those securities in the investment portfolio that can provide an adequate amount of liquidity to them.
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