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Auction proceeds must be kept in:

A. Non-interest account
B. Profit-bearing account in NBP
C. Any private bank account
D. Treasury account only
Correct Answer: B. Profit-bearing account in NBP

When property is auctioned, especially in a legal context, the proceeds must be handled responsibly to ensure transparency and potential returns. Keeping auction proceeds in a profit-bearing account in NBP (National Bank of Pakistan) is a standard practice. This ensures the funds are secure, managed by a national institution, and generate profit, which is crucial if the funds need to be returned to an acquitted party later.

  • A non-interest account would mean the funds do not grow, which could be detrimental if they are held for an extended period.
  • Any private bank account lacks the specific governmental oversight and security often required for such funds.
  • A Treasury account only might not always be profit-bearing, and NBP is often specifically designated for such purposes.

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