Friday, 3 March 2017

QUIZ-2

                                       Quiz -2 


1.In which of the following, the cash credit or overdraft account does not become out of order but becomes NPA directly?
 a) where there is no credit for 90 days as on date of balance sheet although balance is within the limit & DP
b) where the credit is less than interest debited during the same period although balance is within the limit & DP
c) where the borrower has not submitted due stock report for 3 months
d) where account remains above the sanctioned limit or DP
e) where the limit has not been renewed for more than 6 months after it had fallen due for renewal


2.In a cash credit account, the party has not given due stock statement for the last 9 months.  The account is showing a balance of Rs.2.56 lacs with a limit of Rs.3 lacs and DP of Rs.2.80 lacs based on the last stock report.  The party has paid interest regularly.  The account is otherwise conducted as per terms of the sanction.  The account classification shall be:
a) standard account
b) out of order account
c) sub-standard account
d) at the discretion of the bank
e) None of the above


3.What is the net working capital (margin) requirement under second method of lending of Tandon Committee?
a) 25% of total current assets
b) 25% of total assets
c) 25% of working capital gap
d) 25% of total current liabilities
e) None of the above


4.A business firm has been sanctioned working capital limits of Rs.6 lacs at 25% margin by the bank and book debt limit of Rs.4 lacs at 50% margin.  What will be the total margin requirement to avail the limit fully?
a) 4 lacs
b) 5 lacs
c) 6 lacs
d) 6.5 lacs
e) 8 lacs

5.The guarantee given by a guarantor to secure a term loan falls under which of the following category?
a) performance guarantee
b) financial guarantee
c) specific guarantee
d) continuing guarantee
e) indefinite guarantee


6.A bank branch allows an advance to M/s. Deena Nath & Co. which is secured by guarantee of one Mr. Mahesh Chander.  The guarantee extends to a series of transactions.  Such guarantee is called:
a) performance guarantee
b) financial guarantee
c) specific guarantee
d) continuing guarantee
e) indefinite guarantee


7.The pledge is defined u/s ___ of Indian Contract Act:
a) 172
b) 272
c) 171
d) 372
e) 174


8.The charge on movable assets without possession to be created is charge known as:
a) Lien
b) Assignment
c) Mortgage
d) Hypothecation
e) Set off


9.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

10.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


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


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