Quiz-11

1.Banks are required to classify NPA accounts

a) into 2 categories i.e. doubtful and loss accounts

b) into 3 categories i.e. sub-standard, doubtful and loss accounts c) into 4 categories i.e. special mention accounts, sub-standard, doubtful and loss accounts

d) into 4 categories i.e. standard accounts, sub-standard, doubtful and loss accounts

e) into 5 categories i.e. special mention accounts, standard accounts, sub-standard, doubtful and loss accounts

2.A company is sanctioned certain working capital limits by 3 banks under a formal consortium arrangement.  In such cases, the ratio of charge over the securities, will be as per the:

a) Balance in the limits allocated under the consortium

b) Limit sanctioned by the individual banks

c) Balance outstanding even where allocated limit exceeded

d) Limit allocated or sanctioned whichever is higher

e) Limit allocated or sanctioned whichever is lower

3.The number of banks which can participate in consortium advance is:

a) Two

b) Three

c) Five

d) Ten

e) No minimum or maximum is prescribed

4.For the purpose of exposure, the exposure in loans is to be taken as under:

a) in case of cash credit or overdraft, the sanctioned limit

b) in case of letter of credit or bank guarantee, the sanctioned limit

c) in case of TL sanctioned limit but if TL fully disbursed, then outstanding balance

d) all the above

e) None of the above

5.Which of the following accounts is not exempted from application of exposure ceiling norms?

a) weak / sick units

b) food credit

c) State govt. guaranteed accounts

d) Loan against deposits

e) None of the above

6.What is the exposure ceiling under group exposure for single borrower and borrowing group, as a percent of capital fund?

a) 10% and 30%

b) 10% and 40%

c) 15% and 30%

d) 15% and 40%

e) 15% and 50%

7.On which of the following types of loans, the loan system of credit delivery is not applicable?

a) advances to rehabilitation units

b) advances to manufacturing of mass consumption goods

c) advances for seasonal industry

d) export credit proposal

e) a, c and d

8.Which of the following organisations, provide credit history of the borrowers?

a) CIBIL

b) SEBI

c) RBI

d) CCIL

e) None of the above

9.Which of the following is not part of prudent guidelines issued by Reserve Bank of India?

a) income recognition

b) asset classification

c) loan recovery rules

d) provisioning norms

e) none of the above

10.In respect of documents signed jointly and severally, the bank can seek recourse in the Court against:

a) all

b) any one

c) all separately

d) All or any of the above

e) At the discretion of the Court

Ans.

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