BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Trustee and beneficiary
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Debtor and Creditor
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Principal and agent
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Lesser and lessee
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Detailed explanation-1: -The legal relationship between a customer and the bank is based on contract and is generally classified as a debtor-creditor relationship. This means that when a bank or other type of ADI accepts money from a customer it does so as a borrower on terms that may be implied.
Detailed explanation-2: -a) Banker is only a debtor in respect of customer’s money: The debtor and creditor relationship of banker and customer has certain features: A banker is a debtor, when he holds his customer’s deposit. But he is a privileged, Honored or dignified debtor.
Detailed explanation-3: -The relationship between the banker and the customer is therefore that of a creditor and a debtor.
Detailed explanation-4: -A bank owes money to its depositors-that is why it is called debtor. On the other hand, a bank grants loans and all those who have taken loan owe money to banks. That is why a bank is also called creditor. A bank is a debtor for its depositors and creditor for its loan holders.