- In terms of Banking Terminology, Affinity Card refers to: The Credit Cards that are linked to special organizations.
Explanation: Credit cards linked to special organizations like sports clubs, exclusive clubs and charities. Affinity credit cards can also help raise funds, when a part of income from every transaction goes toward the benefit of relevant organization.
- In terms of lending operations of the banks, what does the acceptance letter signify: That the terms of loan have been accepted by the borrower.
Explanation: Acceptance letter is the letter that a borrower or applicant gives to the lender after reading the terms of the loan. This letter denotes the borrower’s willingness to accept the loan offer within a particular time frame.
- In context with banking, a dormant account is a bank account in which there have not been any transactions for: 2 Years.
Explanation: A dormant account or an inoperative account is a bank account in which there have not been any transactions for two years.
- In context with banking in India, a Custodial Account is created for :Minor Persons.
Explanation: Custodial account is created for the benefit of a minor with an adult as the custodian.
- In terms of Banking Industry, Consolidation Loan refers to: Combining the loans taken from different banks into a single loan account.
Explanation: A person, if owes money to several creditors, he / she can combine payments and balances into a single account with one creditor. This is called Loan Consolidation or Debt Consolidation.
- As per the Reserve Bank of India directives, interest on loans and advances is compounded in India on which basis: Monthly.
Explanation: Compound interest is the Interest which is calculated not only on the initial principal but also the accumulated interest of prior periods. The more frequently interest is compounded, the higher the effective rate.
- Which terms is used for property or other items that are pledged to pay off a loan if payments are not made according to the contract :Collateral.
Explanation: Collateral is an asset pledged to a lender to guarantee repayment. Collateral could include savings, bonds, insurance policies, jewellery, property or other items that are pledged to pay off a loan if payments are not made according to the contract.
- If a bank ties up with a retail vendor and then both of them sponsor a credit card, then such card would be known as : Co- Branded Card.
Explanation: It is a special type of credit card which is sponsored by both the credit card issuing company and the participating retail company or vendor. Co-branded credit card carries special deals and savings from the participating merchants.