BNK · S01Revision: Introduction to ‘Banking’, Modern Banking System, Key Financial terms, Types of Banks & Financial InstitutionsAsked in 7 of 7 papers (Jun ’22, Dec ’22, Jun ’23, Dec ’23, Jun ’24, Jan ’25, Jun ’25)
Which interpretation of section 5(b) is most accurate where money is accepted from the public for investment, is repayable only after a fixed twelve-month term, and is then withdrawable by payment order?
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AIt can never be banking because every banking deposit must be repayable immediately on demand
BFixed-term repayment does not by itself exclude banking because the definition covers repayment ‘on demand or otherwise’, provided the other statutory limbs are met
CIt is banking only if every depositor is a government department
DWithdrawal by payment order prevents the activity from being banking
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