BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following is defined as a central location for keeping securities on deposit?
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Institutions
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Depository
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Instrument
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None of the above
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Explanation:
Detailed explanation-1: -Debt Market-1. The term is defined as a central location for keeping securities on deposit.
Detailed explanation-2: -The only difference is that a bank holds cash or funds on your behalf whereas the depository holds shares and other securities on your behalf. What exactly does a bank do for you? The bank holds funds in a bank account while the depository holds securities in an account.
Detailed explanation-3: -Deposit for shares (DFS) This basically arises when shareholders contribute more funds into the business in excess of the existing authorised & issued share capital.
There is 1 question to complete.