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Instructions:
Semester: VI
a. You Have 2:00Hrs to Complete This Test
Subject: BANKING THEORY
b. Write Your Name& Your ID Number on every Exam Paper You Use.
Lecturer: ABDINASIR AHMED ALI
c. Label Your Question Numbers Clearly and Correctly.
d. This Test Will Account for 40% of Semester Marks Date:
PART TWO:WRITE (T) in the bracket for true sentence or word (F) for false sentence
1. ( ) The process of credit creation takes place when banks provide loans and advances and accepts deposits.
2. ( ) A person who hasn’t an account in a bank in his own name and for whom a banker undertakes to provide
facilities as a banker is considered to be a customer.
3. ( ) Lien is a right of the bank to retain the goods of customer in his position until a debt due to him is paid.
4. ( ) The word overdraft means the act of drawing more than the money deposited in the bank account.
5. ( ) Unsecured loan is a loan in which the borrower pledges some asset as collateral for the loan.