Banking Awareness Quiz 4

Banking Awareness Quiz 4

1)

Which of the following cannot be securitized ?

A) Future rentals of a fishing boat
B) Hire purchase receivables
C) Future billings for an airline
D) Demand drafts received by the banker during clearing

2)

Service Area Approach (SAA) is associated with-----

A) Rural and Semi-urban branches of commercial banks
B) Urban branches of commercial banks
C) Branches of commercial banks situated in metro cities
D) Development banks

3)

Which of the following is not the service provided by the Small Industries Service Institute?

A) Providing entrepreneurship development programs
B) Developmental efforts
C) Financial support
D) Export promotion and liaison activities

4)

Which of the following is the parameter to recognize the SSI unit as sick unit ?

A) The erosion in the net-worth due to accumulated losses is up to 25% of its net worth during the previous account year
B) The erosion in the net-worth due to accumulated losses is up to 50% of its net worth during the previous account year
C) The unit should have been in commercial production for at least five years
D) Lack of updating in technological development

5)

Which of the following is a function of the agent bank relating to flow of money in the process of loan syndication ?

A) Receiving notices relating to cancellation of any part of the loan
B) Calling of loans in the event of default
C) Receiving the fee from the borrower and distributing among the participating banks
D) Receiving notices relating to transfers of banks

6)

The credit policy of a bank does not consist of_____

A) Lending policies
B) Quality control
C) Loan product mix
D) advertising of loan products

7)

Which of the following is not shown as an asset in the balance sheet of a Bank ?

A) Registrar of Issue
B) Registrar of Companies
C) Advertisement Agency
D) Investment Banker

8)

The important condition for granting license of banking companies is_____

A) Banking company need not plan to pay for future depositors
B) Banking company can plan for its capital structure once the license is granted
C) The business undertaken by the banking company should not frustrate the interest of public
D) The banking company can undertake business other than banking with the permission of annual general body

9)

The Shipping guarantee is a _____ .

A) Type of a letter of credit
B) Guarantee issued by the ship captain to the purchaser
C) Guarantee issued to the borrower towards the loan granted by the shipping company
D) Deferred payment guarantee issued by a banker at the request of the consignee when the documents are not received and goods are received, for facilitating the delivery of goods

10)

The important feature of an anticipatory letter of credit is that _______ .

A) The beneficiary under the letter of credit may receive payment even at the pre-shipment stage
B) The letter of credit can be used as back- to- back letters of credit
C) The beneficiary under the letter of credit may receive payment even at the post-shipment stage
D) The cash advance is not permitted against such letter of credits