BANKING GENERAL KNOWLEDGE
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Loan
|
|
|
Check
|
|
|
Checking account
|
|
|
Debit card
|
Detailed explanation-1: -The term loan refers to a type of credit vehicle in which a sum of money is lent to another party in exchange for future repayment of the value or principal amount. In many cases, the lender also adds interest or finance charges to the principal value which the borrower must repay in addition to the principal balance.
Detailed explanation-2: -There are two main parts of a loan: The principal–the money that you borrow. The interest–this is like paying rent on the money you borrow.
Detailed explanation-3: -When you borrow money, interest is the cost of doing so and is typically expressed as an annual percentage of the loan (or amount of credit card borrowing). When you save money it is the rate your bank or building society will pay you to borrow your money. The money you earn on your savings is also called interest.