Answer to Question #303216 in Finance for Andrick Angel

Question

1.What is the difference between real property and personal property? 5marks

2. What are two functions of the security acquired by the bank? 4marks

3. A bank has implied and common law rights in it's relationship with the customer, highlight and explain five rights that the bank has. 10marks

Answer 1

1.Personal property is anything that can be moved. It's anything that can be owned, with the exception of land. Real estate is immovable property, which includes land and anything linked to it.

2.-Marketable securities are frequently purchased by banks to hold in their portfolios; they are typically one of two main sources of revenue, along with loans. Investment securities used as collateral by banks can be either equity (shares of a company's ownership) or debt securities.

-Banks benefit from investment securities because they provide liquidity as well as earnings from realized capital gains when they are sold. These investment instruments can often help banks achieve their pledge requirements for government deposits if they are investment-grade. Investment securities can be used as collateral in this situation.

3.

1. Right to Fair Treatment: The consumer and the Bank both have the right to be treated with respect. When offering and delivering financial products, the consumer should not be treated unfairly on the basis of gender, age, religion, caste, or physical ability.

2. Right to Transparency, Fairness, and Honest Dealing: The Bank should make every effort to ensure that the contracts or agreements it signs are clear, easy to understand, and effectively conveyed to the general public. The product's price, associated hazards, terms and conditions that govern use throughout the product's life cycle, and the customer and Bank's duties should all be properly communicated.

3. Right to Suitability: Products should be suitable for the customer's demands and based on an assessment of the customer's financial situation and comprehension.

4. Right to Privacy: Customers' personal information should be kept private unless they have given their explicit consent, such information is required by law, or it is provided for a specified commercial purpose (for example, to credit information firms).

5. Right to Redress and Compensation for Grievances: Customers have the right to hold the Bank accountable for the products they are sold, as well as to have a clear and simple manner to have any justified complaints addressed. The supplier should also make it easier to resolve complaints about third-party products it sells.