Explanation

• A crossed cheque has two parallel lines on it.
• Cannot be cashed over the counter; must be deposited into a bank account.
• Provides extra security against theft or misuse.
• Commonly used for safe transactions.

Last verified on 15-02-2026

Explanation

• A salary slip shows the regular income of an individual.
• It serves as proof of the source of funds for account opening.
• Required for compliance with banking and anti-money laundering rules.

Last verified on 15-02-2026

Explanation

• A letter of thanks is sent to show appreciation to the customer.
• Strengthens customer-bank relationship and trust.
• Focus is on courtesy and goodwill after account opening.

Last verified on 15-02-2026

Explanation

• An inoperative deposit is one with no transactions for 10 years.
• Banks cannot hold it indefinitely and must transfer it to the State Bank of Pakistan.
• Ensures proper regulation and safety of dormant funds.
• Protects customers’ rights while maintaining banking accountability.

Last verified on 15-02-2026

Explanation

• A walk-in customer uses banking services without holding an account.
• They can deposit or encash cheques, pay bills, or use teller services.
• Not a debtor or creditor, since no account is maintained.
• Common in daily banking for non-account holders.
• Helps banks serve occasional or temporary clients efficiently.

Last verified on 15-02-2026

Explanation

• A sub-branch provides basic banking services to customers.
• Functions include cash deposits and withdrawals, group lending, and handling remittances.
• Issuing a Letter of Credit (LC) is a complex trade finance function, done by main branches only.

Last verified on 15-02-2026

Explanation

• Agents act as intermediaries between banks and customers in branchless banking.
• Their main task is handling deposits (cash-in) and withdrawals (cash-out).
• They do not usually approve loans or make policies.
• Helps provide banking services in areas without physical branches.

Last verified on 15-02-2026

Explanation

• Branchless banking provides banking services without physical branches.
• It targets people in rural or remote areas without access to banks.
• Services are offered via mobile phones, agents, or ATMs.
• Helps increase financial inclusion and accessibility.

Last verified on 15-02-2026

Explanation

• Real interest rate shows the true return after accounting for inflation.
• Important for investors, savers, and lenders to know actual gains.

Additional information:

• Formula: Real Interest Rate ≈ Nominal Rate − Inflation Rate
• Example: If nominal interest is 10% and inflation is 4%, real interest = 6%.

Last verified on 15-02-2026

Explanation

• Real interest rate is the return after adjusting for inflation.
• Shows the true gain for investors or savers.
• Different from nominal interest rate, which ignores inflation.

Last verified on 15-02-2026