The legal relationship between a bank and its depositors is most similar to that
ID: 391331 • Letter: T
Question
The legal relationship between a bank and its depositors is most similar to that of a:
Debtor and creditor.
Employer and employee.
Agent and principal.
Landlord and tenant.
The term "banking day" is best defined as:
All days in a calendar year in which banks observe holidays.
That part of any day when banks offer reduced interest rates on small business loans.
A designated day in the work week in which banks will provide certain services to the public.
That part of any day on which a bank is open to the public for carrying on substantially all banking functions.
A.)Debtor and creditor.
B.)Employer and employee.
C.)Agent and principal.
D.)Landlord and tenant.
Explanation / Answer
Part A)
The answer to the first question is option A) Debtor and Creditor
When a person deposits money in the bank account the bank becomes the owner of the funds and the person becomes the creditor. The banks also allow its depositors to save in a term deposit and hence they (depositors) willingly allow the bank to lend money to other. This relationship will be defined as depositor lending money to the bank and the bank will be the debtor to the depositor.
Part B)
The answer to the second question - Banking day is defined is:
Option D) That part of any day on which bank is open to the public for carrying on substantially all banking functions
On the banking day, the banks perform all its functions. It generally doesn't include weekend days and legal holidays. It is open for business to the general public.
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