BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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That of a debtor and a creditor
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Primarily that of a debtor and a creditor
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That of a creditor and a debtor
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Both A and B
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Detailed explanation-1: -When he deposits money in his bank account, he becomes a creditor to the bank. The bank becomes the debtor. The obligations of the bank to carry further business from the deposits of the consumer are solely dependent on their own choice.
Detailed explanation-2: -Generally, for borrowing money, a debtor goes to the creditor. But in case of bank deposit, the creditor goes to the debtor for giving the amount. iii. Normally, a debtor is required to repay the debt of his own but a banker need not repay the deposit to the depositor of his own.
Detailed explanation-3: -General banking relations have two categories, primary and subsidary relations. A primary banking relationship is a relationship between a bank and its customers.
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.
Detailed explanation-5: -The relationship between the banker and the customer is therefore that of a creditor and a debtor.