Quiz-10

1.While considering loans for project financing, the promoters are required to bring in their share in the project as under:

a) 100% upfront

b) 75% upfront and remaining in stages

c) 40-50% upfront and remaining in stages

d) at the discretion of banks

e) None of the above

2.Which of the following categories of loans can be priced by banks without reference to the Base Rate?

a) DRI loans

b) Loans to members of staff

c) Loans to bank's depositors against their own deposit

d) All the above

e) None of the above

3.In case of Information Technology and Software development industry, the loans upto Rs.2 crores can be sanctioned as per:

a) MPBF method of Tandon Committee

b) Turnover method of Nayak Committee

c) Cash budget method

d) Any of the above

e) None of the above

4.Which of the following commodities are covered under RBI's restrictions under Selective Credit Control?

a) wheat and pulses

b) buffer stocks of sugar with sugar mills

c) imported oil and oil seeds

d) course grains

e) none of the above

5.With a view to preventing speculative holding of essential commodities with the help of bank credit and the resultant rise in their prices, RBI can impose restrictions on advances (called Selective Credit Control) against such commodities:

a) u/s 21 and 35 A of RBI Act

b) u/s 21 and 35 A of Banking Regulation Act

c) u/s 34 and 35 A of Banking Regulation Act

d) u/s 34 and 35 A of RBI Act

e) none of the above

6.Loans to senior officers or their relatives are required to be reported to Board of the bank.  For this purpose, the senior officer means an officer in _____________

a) scale IV or above

b) scale V or above

c) scale VI or above

d) scale VII

e) None of the above

7.Banks cannot grant loan to its own director, against which of the following security?

a) loans against govt. securities

b) life insurance policies

c) bank deposits

d) all the above

e) none of the above

8.A bank cannot grant any loans and advances on the security of its own shares under the provisions of 

a) Section 19(B) of Banking Regulation Act

b) Section 21(3) of Banking Regulation Act

c) Section 20(1) of Banking Regulation Act

d) Section 21(B) of Reserve Bank of India Act

e) None of the above

9.The base rate is required to be reviewed by banks at least ______.

a) once in a month

b) once in a quarter

c) once in a half year

d) once in a year

e) none of the above

10.In which of the following cases, an account becomes NPA?

a) where principal and / or interest in TL has become due and not paid by the borrower for 75 days

b) where the cash credit account has been out of order for more than 90 days

c) where the bill purchased / discounted has become overdue and continues to be overdue for 87 days

d) where amount remains unpaid for less than two crop seasons for long duration crop in case of all agriculture accounts

e) all the above

Ans:

1	2	3	4	5	6	7	8	9	10
c	d	b	b	b	a	d	c	b	b

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