Question : Which of the following is a feature of a credit card?
Option 1: High-interest rate
Option 2: Pre-approved credit limit
Option 3: Fixed repayment scheduled
Option 4: No annual fee
Correct Answer: Pre-approved credit limit
Solution : b). Pre-approved credit limit
A pre-approved credit limit is a feature of a credit card. When a credit card is issued, the cardholder is assigned a pre-approved credit limit by the issuing bank. This credit limit represents the maximum amount of money that can be borrowed using the credit card. The cardholder can make purchases or withdraw cash up to this limit and is required to repay the borrowed amount within a specified period. The credit limit is determined by various factors, including the individual's creditworthiness and income. Therefore, the correct answer is option b). Pre-approved credit limit.
Option 1: High interest rate
Option 2: No credit limit
Option 3: No annual fee
Option 4: No penalty for late payment
Question : Which of the following is not a feature of a term loan?
Option 1: Fixed interest rate
Option 2: Fixed repayment schedule
Option 3: Collateral security
Option 4: No maturity period
Question : Which of the following is a feature of a term loan?
Option 1: Flexible repayment period
Option 2: Interest rate is fixed for the entire tenure
Option 3: High interest rate
Option 4: No collateral required
Question : Which of the following is a feature of a debenture?
Option 1: Low-risk investment
Option 2: Fixed-rate of interest
Option 3: No maturity period
Option 4: High liquidity
Question : Which of the following is not a feature of a fixed deposit account?
Option 2: Fixed maturity period
Option 3: Flexible withdrawal option
Option 4: Penalty for premature withdrawal
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