1,2 & 3 Flashcards
What is the legal definition of a bank?
There isnt one
If a banker discloses details of a customers account to another customer what have they done?
Breached their basic duties
Banks are authorised and regulated by which organisation?
FCA - Financial conduct authority
A partnership is defined as?
Two or more people conductiong business together with a view of profit
What constitues to good customer relations?
Trust, confidence and integrity
What are current account used for?
Accounts throguh which sales income is lodged and from which bills are paid
What is an advantage of a term loan?
Spreads the cost other the asset over its expected life.
How can currency exposure be reduced?
Arrange a forward contract to sell currency it is due to receive.
What is BACS?
Bankers automated clearing services
What best describes an overdraft?
A type of pending to cover the day to day flyctuating needs of a business
What is a feature of a PLC?
It must have at least 2 directors
What is the key component of your lending decision?
The character and ability of the borrower
On the death of a parter what action should be taken?
Stop operations on the account and intimate a claim on the estate of the deceased
What are the characteristics of a private limited company?
It restricts the rights of shareholders to transfer their shares
What is the liability of a partner for the firms debt?
Joint and severally with other partners
What is joint and several liability?
Any partner has unlimited liability for the debts of the partnership
Mock
Who has responsibility for the Financial Services Compensation Scheme?
The Prudential Regulatory Authority and the Financial Conduct Authority
Mock
Who would not be considered to be one of the foundation stones of banking?
a) Trust
b) Confidence
c) Integrity of dealing
d) Creditworthiness
d) Creditworthiness
A partnership is which of the following?
a) Two or more people conducting business together with a view to profit
b) An individual carrying on business using a name other than his own
c) Two or more people who get together to form a private limited company
d) Two or more people who get together to share a common interest
a) Two or more people conducting business together with a view to profit
Mock
How can a borrowing company protect itself against rising interest rates?
By arranging a fixed rate loan
Mock
For what purpose do banks commonly use their customers’ deposits?
To lend to other customers
Mock
On a business account with an overdraft facility how does the bank calculate interest?
On the day-to-day balance of borrowing outstanding on the account
Mock
On a business account with an overdraft facility how does the bank calculate interest?
On the day-to-day balance of borrowing outstanding on the account
Mock
The Articles of Association are essentially….
the contract between the shareholders and the company.
