Bird
0
0

Which pairing correctly matches the credit type with its usual duration?

hard Q10 of 15
Banking Awareness - Basics Of Banking & Banking Terminology
Which pairing correctly matches the credit type with its usual duration?
ALoan – Short-term; Advance – Long-term
BLoan – Long-term; Advance – Short-term
CLoan – On demand; Advance – Fixed tenure
DLoan – Working capital; Advance – Housing
Step-by-Step Solution

  1. Step 1: Compare duration

    The question tests correct duration matching.

  2. Step 2: Apply banking definitions

    Loans are long-term, advances are short-term.

  3. Final Answer:

    Loan – Long-term; Advance – Short-term → Option B

  4. Quick Check:

    Tenure-based distinction confirms correctness ✅
Quick Trick: Loan = long-term, Advance = short-term.
Common Mistakes:
  • Reversing loan and advance durations.
Master "Basics Of Banking & Banking Terminology" in Banking Awareness

Start learning the concept with an interactive lesson.

Learn

Want More Practice?

15+ quiz questions · All difficulty levels · Free

Free Signup - Practice All Questions
More Banking Awareness Quizzes
Basics Of Banking & Banking Terminology - Banking Risks (Introductory) - Quiz 11easy Basics Of Banking & Banking Terminology - Banking Risks (Introductory) - Quiz 7medium Basics Of Banking & Banking Terminology - Basic Banking Terminology - Quiz 8hard Basics Of Banking & Banking Terminology - Priority Sector Lending (Introductory Level) - Quiz 13easy Basics Of Banking & Banking Terminology - Functions of a Bank - Quiz 9hard Basics Of Banking & Banking Terminology - Credit Creation by Banks - Quiz 4medium Basics Of Banking & Banking Terminology - Assets vs Liabilities of a Bank - Quiz 9hard Basics Of Banking & Banking Terminology - Priority Sector Lending (Introductory Level) - Quiz 15medium Basics Of Banking & Banking Terminology - Types of Deposits (Basic Classification) - Quiz 5medium Basics Of Banking & Banking Terminology - Credit Creation by Banks - Quiz 2easy