BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Money Market
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Financial transaction
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Financial inclusion
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Non of the above
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Detailed explanation-1: -NBFC-Factor means a non-banking financial company fulfilling the Principal business criteria i.e. whose financial assets in the factoring business constitute at least 75 percent of its total assets and income derived from factoring business is not less than 75 percent of its gross income, has Net Owned Funds of Rs.
Detailed explanation-2: -Example of factoring in finance A company has a receivable from a customer of £2, 000 and sends an invoice to the customer on 09/05/2022. The payment period is 30 days, i.e. until 08.06. 2022. The company sells the receivable to a factoring company and agrees recourse factoring with it.
Detailed explanation-3: -The four main types of factoring are the Greatest common factor (GCF), the Grouping method, the difference in two squares, and the sum or difference in cubes.
Detailed explanation-4: -Definition: Factoring is a type of finance in which a business would sell its accounts receivable (invoices) to a third party to meet its short-term liquidity needs. Under the transaction between both parties, the factor would pay the amount due on the invoices minus its commission or fees.