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. |
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
View Solution play_arrowquestion_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 the above done clear
View Solution play_arrowquestion_answer3) 'Sub-prime lending' is a term applied to the loans made to
A) these borrowers who do not have a good credit history done clear
B) those who wish to take loan against the mortgage of tangible assets done clear
C) those who have a good credit history and are known to bank since 10 years done clear
D) Both [a] and [b] done clear
E) None of the above done clear
View Solution play_arrowquestion_answer4) In banking parlance, 'Sub-prime' refers to
A) landing by banks at rates below PLR done clear
B) funds raised by banks at sub-libor rates done clear
C) group of banks which are not rated as prime banks as per bankers almanac done clear
D) lending done by banks / FIs to customers not meeting with normally required credit appraisal standards done clear
E) None of the above done clear
View Solution play_arrowquestion_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 the above done clear
View Solution play_arrowquestion_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
View Solution play_arrowA) 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
View Solution play_arrowquestion_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 the above done clear
View Solution play_arrowA) Software exports done clear
B) Small business loans done clear
C) Education loans done clear
D) Small industries loan done clear
E) None of the above done clear
View Solution play_arrow| 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. |
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
View Solution play_arrowquestion_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 the above done clear
View Solution play_arrowA) 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 the above done clear
View Solution play_arrowquestion_answer13) Which of the following is a retail banking product?
A) Home loans done clear
B) Working capital finance done clear
C) Corporate term loans done clear
D) Infrastructure financing done clear
E) Export credit done clear
View Solution play_arrowquestion_answer14) Life insurance in its modern form came to India from England in the year
A) 1818 done clear
B) 1896 done clear
C) 1905 done clear
D) 1907 done clear
E) 1919 done clear
View Solution play_arrowA) 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
E) None of these done clear
View Solution play_arrowquestion_answer16) Banks have the lowest lending levels in the ................. part of India.
A) Central done clear
B) North-Eastern done clear
C) Southern done clear
D) Western done clear
E) Northern done clear
View Solution play_arrowA) 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
View Solution play_arrowquestion_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
View Solution play_arrowquestion_answer19) Loans and advances a bank, provides come under which of the following category?
A) Assets done clear
B) Liabilities done clear
C) Costs done clear
D) All of these done clear
E) None of these done clear
View Solution play_arrowA) Personal loan done clear
B) Corporate loan done clear
C) Educational loan done clear
D) Mortgage loan done clear
E) None of these done clear
View Solution play_arrowA) 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
View Solution play_arrowquestion_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
View Solution play_arrowA) 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
View Solution play_arrowA) 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
View Solution play_arrowA) participation done clear
B) consortium done clear
C) syndication done clear
D) multiple banking done clear
E) None of these done clear
View Solution play_arrowA) cheque done clear
B) bankdraft done clear
C) promissory note done clear
D) insurance done clear
E) None of the above done clear
View Solution play_arrowA) 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
View Solution play_arrowquestion_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 these done clear
E) None of these done clear
View Solution play_arrowquestion_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
View Solution play_arrowA) standard done clear
B) sub-standard done clear
C) doubtful done clear
D) loss done clear
E) None of these done clear
View Solution play_arrowA) one done clear
B) two done clear
C) three done clear
D) four done clear
E) None of these done clear
View Solution play_arrowA) Car loan done clear
B) Housing loan done clear
C) Personal loan done clear
D) Education loan done clear
E) Infrastructure loan done clear
View Solution play_arrowA) 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
View Solution play_arrowquestion_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. |
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
View Solution play_arrowquestion_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
View Solution play_arrowquestion_answer36) Which of the following does not qualify as priority sector lending?
A) Agricultural lending done clear
B) Education loans done clear
C) Auto loans done clear
D) Loans to small scale sector done clear
E) Housing loan done clear
View Solution play_arrowquestion_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
View Solution play_arrowA) 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
View Solution play_arrowquestion_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
View Solution play_arrowquestion_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
View Solution play_arrowquestion_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 these done clear
E) None of these done clear
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