CSEET · Business Communication · Common Business Terminologies
A customer in Pune asks the bank to transfer money to another bank account in Chennai on the same day, in real time, for an amount of Rs 5,00,000. Which electronic payment system is designed for such large-value, real-time gross settlement transfers?
RTGS, or Real Time Gross Settlement, is the system meant for large-value transfers. It settles each payment individually and in real time, so money moves between banks on the same day. A demand draft, cheque truncation and a passbook entry do not do this.
- ARTGSCorrect
- BCheque truncation
- CDemand draft
- DPassbook entry
Explanation
RTGS (Real Time Gross Settlement) settles each transaction individually and in real time, and is meant for large-value transfers. A demand draft is a paper instrument and is not settled in real time. Cheque truncation only speeds up cheque clearing by using images, and a passbook entry merely records transactions.
Did you get it right without looking?
One question tells you little. A timed set on Common Business Terminologies shows your real accuracy, how long you take and where you lose marks.
More Common Business Terminologies questions
- Which of the following is the best meaning of the business jargon 'blind copy' (bcc) when Neha sends a tender notice to five vendors and als…
- In office terminology, a 'memorandum' (memo) is best described as:
- A company gives a retailer a reduction of 2% on the invoice price if payment is made within 10 days of the invoice date. In business termino…
- A company's board decides to 'outsource' its payroll processing to an external agency. What does outsourcing mean here?
- A 'letter of credit' issued by a bank in an export transaction chiefly serves to:
- In banking, the term 'KYC' refers to: