Business Services Test - 3

Cash credit is a short-term source of finance. Under cash credit, the bank offers its customer to take a loan up to a certain limit.

The main motive of insurance is cooperation. Insurance is defined as the equitable transfer of risk of loss from one entity to another, in exchange for a premium.

CWC stands for Central Warehousing Commission.It is a premier Warehousing Agency in India, established during 1957 to provide logistics support to the agricultural sector and is one of the biggest public warehouse operators in the country offering logistics services to a diverse group of clients.

When a cheque is Account payee, it directs the Bank that cash cannot be withdrawn on this cheque, funds can be only tranferred from one bank account to another bank account.

The Insurance Act, 1938 is a law originally passed in 1938 in British India to regulate the Insurance sector. It provides the broad legal framework within which the industry operates.

The minimum period for Term policy is 1 Year and more. The death benefit of the policy is paid only if the insured dies during that period. If the insured lives beyond the term period, no death benefit is paid. Typically, there are no cash values or loan values for term life insurance.

When the maker or holder of negotiable instrument signs the same, otherwise than as maker, for the purpose of negotiation on the back or face thereof or on a slip of paper annexed thereto, or signs for the same purpose a stamped paper intended to be completed as a negotiable instrument, he is said to have endorsed the same and is called the endorser. Endorsement consists of the signature of the maker (or drawer) payee of a negotiable instrument with the intention of negotiation.

A money back policy is a more complex life insurance policy than a term plan or a standard life insurance. A normal term plan or standard life insurance covers death risk and assures to pay sum to the insured party on maturity. But a money back policy provides additionally certain amounts called survival benefits in addition to the sum assured and a bonus from the insurance company based on its performance.

Stale check is a check that is presented to be cashed or deposited at a bank six months or more after the date it was written. The date when the check is presented to be cashed or deposited in a bank account is known as the payment date

Life Insurance is a contract between an insurance policy holder and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money (the benefit) in exchange for a premium, upon the death of an insured person (often the policy holder).