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question_answer1)
Which of the following correctly describes what sub-prime lending is?
I. Lending to the people with less than ideal credit status. |
II. Lending to the people who are high value customers of the banks. |
III. Lending to those who are not a regular customer of a bank. |
Select the correct answer using the codes given below:
A)
Only I done
clear
B)
Only II done
clear
C)
Only III done
clear
D)
All of these done
clear
E)
None of these done
clear
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question_answer2)
Sub-prime refers to
A)
lending done by banks at rates below PLR done
clear
B)
funds raised by the banks at sub libor rates done
clear
C)
group of banks which are not rate as prime banks as per banker's almanac done
clear
D)
lending done by financing institutions including banks to customers not meeting with normally required credit appraisal standards done
clear
E)
None of these done
clear
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question_answer3)
Commercial banks create credit in the form of
A)
secondary deposits done
clear
B)
primary deposits done
clear
C)
tertiary deposits done
clear
D)
both [a] and [b] done
clear
E)
None of these done
clear
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question_answer4)
A cheque presented for payment after three months from the date of the issue is called
A)
anti-Dated Cheque done
clear
B)
post-dated Cheque done
clear
C)
stale Cheque done
clear
D)
All of the above done
clear
E)
None of these done
clear
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question_answer5)
Which of the following aspects are outlined by the loan policy of a bank?
A)
Rating standards done
clear
B)
Lending procedures done
clear
C)
Financial covenants done
clear
D)
All of the above done
clear
E)
None of these done
clear
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question_answer6)
An unsecured loan extended by one corporate to another is called
A)
commercial papers done
clear
B)
treasury bill done
clear
C)
inter-corporate deposits done
clear
D)
certificates of deposits done
clear
E)
All of the above done
clear
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question_answer7)
Since acceptance of deposits and granting of loans are the two general functions of a bank, the relationship arising out of these two main activities is known as
A)
principal and agent relationship done
clear
B)
financer and financee relationship done
clear
C)
bailor and bailee relationship done
clear
D)
general relationship done
clear
E)
specific relationship done
clear
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question_answer8)
Which of the following lendings qualifies as a priority sector loan?
A)
Loan for purchase of gold for marriage of daughter done
clear
B)
Loan for consumer durables done
clear
C)
Housing loan done
clear
D)
Loan for purchase of tractor done
clear
E)
None of these done
clear
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question_answer9)
Which one of the following does not qualify as priority sector lending by commercial banks?
A)
Software exports done
clear
B)
Small business loans done
clear
C)
Education loans done
clear
D)
Small industries loan done
clear
E)
None of these done
clear
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question_answer10)
As reported in various newspapers, many banks have revised their interest rates on home loans, car loans and other such Credit Functions of Banks loans. Which of the following phenomenon prompted these banks to make such an upward revision in their interest rates?
I. RBI has revised the CRR and other such rates upward, which has created a liquidity crunch in the market. |
II. Stock markets in the country are showing very high fluctuations as visible through their indexes. As a result, banks have lost a huge amount of money in-trading. Banks now want to recover that money by increasing their interest rates. |
III. Banks are in need of a huge amount of money, as they have to give revised pay to all its employees. |
Select the correct answer using the codes given below
A)
Only I done
clear
B)
Only II done
clear
C)
Only III done
clear
D)
All of these done
clear
E)
None of these done
clear
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question_answer11)
Bancassurance is
A)
an insurance scheme to insure bank deposits done
clear
B)
an insurance scheme exclusively for the employees of banks done
clear
C)
a composite financial service offering both banking and insurance products done
clear
D)
a bank deposit scheme exclusively for employees for insurance companies done
clear
E)
None of these done
clear
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question_answer12)
Which of the following schemes is launched specifically for helping senior citizens to avail loan by mortgage of their residential property?
A)
English Mortgage Scheme done
clear
B)
Senior Capital Loan Scheme done
clear
C)
Reverse Mortgage Loan Scheme done
clear
D)
Senior Citizen Personal Loan Scheme done
clear
E)
None of these done
clear
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question_answer13)
A merchant bank is a company that deals mostly in
A)
international finance done
clear
B)
business loans for companies done
clear
C)
underwriting done
clear
D)
All of the above done
clear
E)
None of these done
clear
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question_answer14)
Which of the following statements is/are correct?
i. Merchant banks help corporations issue securities through private placements. |
ii. Investment banks underwrite and sell securities to the general public through IPOs. |
A)
i only done
clear
B)
ii only done
clear
C)
Both i and ii done
clear
D)
None of these done
clear
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question_answer15)
In case of a debt taken by a married woman, her husband will be liable for debt only if the debt is taken
A)
with his consent or authority done
clear
B)
for the supply of necessaries of life to the wife, in case the husband defaults in supplying the same to her done
clear
C)
Both [a] and [b] done
clear
D)
Either [a] or [b] done
clear
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question_answer16)
General utility services of banks include
A)
issue of traveller's cheques done
clear
B)
underwriting securities issued by government, public or private bodies done
clear
C)
purchase and sale of foreign exchange done
clear
D)
All of the above done
clear
E)
None of these done
clear
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question_answer17)
Bank loan against property requires the asset to be free from encumbrances. What does it mean?
A)
The asset to be free from liability done
clear
B)
The asset to be properly registered done
clear
C)
The property to be fully constructed done
clear
D)
The asset should not have multiple owners done
clear
E)
None of these done
clear
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question_answer18)
In bank's parlance, credit risk in lending is
A)
default of the banker to maintain CRR done
clear
B)
default of the banker to maintain SLR done
clear
C)
default of the banker to release credit to the customer done
clear
D)
default of the customer to repay the loan done
clear
E)
None of these done
clear
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question_answer19)
Which of the following provides information about economic position of its customers to traders?
A)
Letters of references done
clear
B)
KYC forms done
clear
C)
Bank letters done
clear
D)
both [a] and [c] done
clear
E)
None of these done
clear
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question_answer20)
Which of the following statements is/are correct about an overdraft?
i. It is issued against security in current account. |
ii. The borrower is given the facility of borrowing only as much as he requires. |
A)
(i) only done
clear
B)
(ii) only done
clear
C)
Both (i) and (ii) done
clear
D)
None of these done
clear
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question_answer21)
Which of the following is a payment and settlement system used by the banks in India?
A)
Liquidity adjustment facility done
clear
B)
Real time gross settlement done
clear
C)
Forward rate agreements done
clear
D)
Central depository service done
clear
E)
Negotiated dealing system done
clear
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question_answer22)
Bridge loans refer to
A)
loans granted to construction companies for construction of bridges done
clear
B)
loan granted to PWD for construction of bridges over rivers done
clear
C)
interim finance allowed by banks to their customers, pending disbursement of term loans by financial institutions done
clear
D)
loan granted to railway for construction of bridges done
clear
E)
None of these done
clear
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question_answer23)
The right to retain possession only of those goods in respect of which the dues have arisen is called
A)
particular lien done
clear
B)
general lien done
clear
C)
right of set off done
clear
D)
All of these done
clear
E)
None of these done
clear
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question_answer24)
Land development banks provide long- term credit for schemes of basic importance to agriculture as
A)
minor irrigation purposes like wells, dug-cum-bore wells, tubewells, pump sets and irrigation tanks done
clear
B)
mechanisation of agriculture i.e., loans for purposes of tractors, power tillers, threshers, etc done
clear
C)
land reclamation, soil conservation, plantation of fruit orchards, dairy development schemes etc involving heavy expenditure done
clear
D)
Both [a] and [b] done
clear
E)
All of these done
clear
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question_answer25)
When more than one bank is allowing credit facilities to one party in co-ordination with each other under a formal arrangement the arrangement is generally known as
A)
participation done
clear
B)
consortium done
clear
C)
syndication done
clear
D)
multiple banking done
clear
E)
None of these done
clear
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question_answer26)
A Bill of Exchange in which a bank orders its branch or another bank, as the case may be, to pay a specified amount to a specified person or to the order of the specified person is called
A)
cheque done
clear
B)
bank draft done
clear
C)
promissory note done
clear
D)
insurance done
clear
E)
None of these done
clear
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question_answer27)
Which of the following is not considered as negotiable instrument under the Negotiable Instruments Act, 1881?
A)
Bill of Exchange done
clear
B)
Promissory Note done
clear
C)
Share Certificate done
clear
D)
Cheque Payable to Bearer done
clear
E)
Cheque with 'Not Negotiable' crossing done
clear
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question_answer28)
As per guidelines of Reserve Bank of India, a new private sector bank
A)
shall be subject to prudential norms in regard to income recognition, asset classification and provisioning, capital adequacy, etc. done
clear
B)
shall have to observe priority sector lending targets as applicable to other domestic banks done
clear
C)
will be required to open rural and semi- urban branches done
clear
D)
All of the above done
clear
E)
None of these done
clear
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question_answer29)
Initial repayment holiday given to a borrower for repayment of loan is called is
A)
subvention done
clear
B)
moratorium done
clear
C)
re-schedulement done
clear
D)
amortisation done
clear
E)
EMI done
clear
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question_answer30)
In case where the loan is sanctioned by the bank against the borrower submitting the fake/forged documents and thus, playing fraud on the bank, such a loan is to be treated in the bank's books as a........ asset, even when there is recovery in the account as per the repayment schedule approved by the bank at the time of sanctioning the loan.
A)
standard done
clear
B)
sub-standard done
clear
C)
doubtful done
clear
D)
loss done
clear
E)
None of these done
clear
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question_answer31)
A loan granted for short-term crops will be treated as NPA, if the instalment of principal or interest thereon or both remain overdue for..... crop season(s).
A)
one done
clear
B)
two done
clear
C)
three done
clear
D)
four done
clear
E)
None of these done
clear
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question_answer32)
Which of the following is not considered one among the loans under Retail Banking?
A)
Car loan done
clear
B)
Housing loan done
clear
C)
Personal loan done
clear
D)
Education loan done
clear
E)
Infrastructure loan done
clear
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question_answer33)
When banks make advances to limited companies against their assets, the required forms are to be presented to the Registrar companies within.............. from the date of execution.
A)
21 days done
clear
B)
30 days done
clear
C)
1 month done
clear
D)
2 months done
clear
E)
None of these done
clear
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question_answer34)
Which of the following is the correct definition of the term commercial papers?
I. It is nothing but the popular name of the judicial stamp papers used to register financial transactions. |
II. It is one of the instruments through which corporates raise debt from the market. |
III. It is the name of the 'Certificate of Deposits' (CD) provided by the bank to its retail customers. |
Select the correct answer using the codes given below:
A)
Only I done
clear
B)
Only II done
clear
C)
Only III done
clear
D)
Both I and II done
clear
E)
All of these done
clear
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question_answer35)
Which of the following means of lending is considered as a priority sector loan?
A)
Loan for purchase of gold for marriage of daughter done
clear
B)
Car loan done
clear
C)
Housing loan done
clear
D)
Loan for purchase of tractor done
clear
E)
Education loan done
clear
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question_answer36)
Term deposits, which are payable only after the expiry of the specified period, are also called
A)
time deposits done
clear
B)
demand deposits done
clear
C)
current deposits done
clear
D)
short credit done
clear
E)
None of these done
clear
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question_answer37)
Which of the following would be treated as an unsecured loan?
A)
Agricultural loan done
clear
B)
Personal loan done
clear
C)
Educational loan done
clear
D)
Vehicle loan done
clear
E)
Housing loan done
clear
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question_answer38)
The rate of interest banks charge its main/ major and prime customers is popularly called as
A)
Risk Premium done
clear
B)
Prime Lending Rate done
clear
C)
Repo Rate done
clear
D)
Reverse Repo Rate done
clear
E)
Cost of Fund done
clear
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question_answer39)
Which of the following is not an activity of merchant banking in India?
A)
The management of the customers securities done
clear
B)
The management of the portfolio done
clear
C)
The management of projects and counselling as well as appraisal done
clear
D)
The management of underwriting of shares and debentures done
clear
E)
None of the above done
clear
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question_answer40)
The industrial Finance Corporation of India provides loans to
A)
government companies only which are in core sector (i.e., power generation, steel, coal and cement, etc) done
clear
B)
newly established industries in backward districts done
clear
C)
industries in private sector done
clear
D)
joint stock companies and cooperative societies engaged in the manufacturing and processing of goods done
clear
E)
None of the above done
clear
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question_answer41)
When a loan is granted by a bank for purchase of white goods it is called
A)
Consumption loan done
clear
B)
White goods loan done
clear
C)
Consumer durable loan done
clear
D)
All of the above done
clear
E)
None of these done
clear
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question_answer42)
Which of the following statements is/are correct about bills of exchange?
i. It represents a promise to pay a fixed amount of money at a specific point of time in future. |
ii. It can also be encashed earlier through discounting process of a commercial bank. |
iii. It acknowledges an amount of money owed in consideration of goods received. |
A)
(ii) only done
clear
B)
(i) and (iii) done
clear
C)
(i) and (ii) done
clear
D)
(i), (ii) and (iii) done
clear
E)
None of these done
clear
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