Indian Banking Different Types of Securities, Creation of Charges And Other Lending Related Matters

Indian Banking Different Types of Securities, Creation of Charges And Other Lending Related Matters

  1. Which of the following is fund based credit limit?

a. Letter of Credit
b. Performance Guarantee
c. Financial Guarantee
d. Cash Credit
Ans : Cash Credit
2. Which of the following is an immovable asset?
a. Machinery
b. Furniture
c. Stock
d. Land
Ans : Land
3. Charger On immovable properties is known as……………
a. Pledge
b. Hypothecation
c. Lien
d. Mortgage
Ans : Mortgage
4. EMDTD stands for …………
a. Equal Mortgage by deed of title deposit
b. Equitable Mortgage by Deposit of Title Deeds
c.Equitable money Deposit of Title Deeds
d. None of the above
Ans : Equitable Mortgage by Deposit of Title Deeds
5. Charge on movable properties can be created by way of …………
a. Mortgage
b. Pledge
c. Hypothecation
d. Both A & C
e. Both B & C
Ans : Both A & C
6. Charge on movable assets, where the possession of assets will be with the borrower is known as …………..
a. Mortgage
b. Pledge
c. Hypothecation
d. Both A & C
e. Both B & C
Ans : Hypothecation
7. Charge on movable assets, where the possession of assets will be with lending Bank is known as …………..
a. Mortgage
b. Pledge
c. Hypothecation
d. Both A & C
e. Both B & C
Ans : Pledge
8. In case of V Wheels loan, the charge on vehicle is created by way of …………….
a. Mortgage
b. Pledge
c. Hypothecation
d. Both A & C
e. Both B & C
Ans : Hypothecation
9. In case of Jewel  loan, the charge on ornaments is created by way of ……………..
a. Mortgage
b. Pledge
c. Hypothecation
d. Both A & C
e. Both B & C
Ans : Pledge
10. In case of V Home Loan, the charge on the land & Building is created by way of …………..
a. Mortgage
b. Pledge
c. Hypothecation
d. Both A & C
e. Both B & C
Ans : Mortgage
11. Most popular method in India is  Mortgage by Deposit of Titles which is commonly known as …………..
a. Equitable Mortgage
b. English Mortgage
c. Simple Mortgage
d. Usufructuary Mortgage
Ans : Equitable Mortgage
12. In case of LTD, the charge on the deposits is created by way of ……………………..
a. Mortgage
b. Pledge
c. Hypothecation
d. Lien
e. Assignment
Ans : Lien
13. In case of V Rent Scheme, the charge on the future rent receivables is created by way of ………………
a. Mortgage
b. Pledge
c. Hypothecation
d. Lien
e. Assignment
Ans : Assignment
14. When DOC 5 is obtained for the demand loans, the period of limitation is three years from :
a. Date of execution of document
b. Date of default
c. Date of Sanction
D. Due date of each installment
Ans :  Date of execution of document
15. Which of the following document is obtained in case of Jewel Loan?
a. DOC 6
b. DOC 35
c. DOC 38
d. DOC 53
Ans : DOC 6
16. As per Bank’s Lending Policy objectives, which of the following is not true?
a. Streamline the existing Credit Risk Management
b. High yielding Credit
c. Move towards risk based pricing
d. Optimize the Risk Return Trade off
e. None of the above
Ans : None of  the above
17. As per Prudential Exposure Norms, generally, the maximum exposure cap for single borrowers is …………………
a. 10 % of capital funds
b. 20 %  of capital funds
c. 15 % of capital funds
d. 25 % of capital funds
Ans : 15 % of  capital funds
18. As per Prudential Exposure Norms, generally, the maximum exposure cap for group exposure  is …………………
a. 10 % of capital funds
b. 20 %  of capital funds
c. 15 % of capital funds
d. 40 % of capital funds
Ans : 40 % of  capital funds
19. As per Bank’s Lending policy, the maximum exposure cap for commercial loans to individual borrower is …………………
a. Rs. 5.00 Crore
b. Rs. 10.00 Crore
c. Rs. 15.00 Crore
d. Rs. 20.00 Crore
Ans : Rs. 5.00  Crore
20. As per Bank’s Lending policy, the maximum exposure cap for commercial loans to sole trading concern and association of person is  …………………
a. Rs. 5.00 Crore
b. Rs. 10.00 Crore
c. Rs. 15.00 Crore
d. Rs. 20.00 Crore
Ans : Rs. 20.00 Crore
21.  As per  Bank’s Lending policy, the maximum exposure cap for commercial loans to partnership firms, clubs and Association is ………
a. Rs. 50 .00 Crore
b. Rs. 10.00 Crore
c. Rs. 15.00 Crore
d. Rs. 20.00 Crore
Ans : Rs. 50 .00 Crore
22. As per  Bank’s Lending policy, the maximum exposure cap for commercial loans to registered societies and trusts is ……..
a. Rs. 40 .00 Crore
b. Rs. 10.00 Crore
c. Rs. 15.00 Crore
d. Rs. 20.00 Crore
Ans : Rs. 40 .00 Crore
23. As per  Bank’s Lending policy, the maximum exposure cap for commercial loans to limited liability partnership is …………..
a. Rs. 40 .00 Crore
b. Rs. 10.00 Crore
c. Rs. 15.00 Crore
d. Rs. 20.00 Crore
Ans : Rs. 20.00 Crore
24. Achievement level  of policy Sector will be considered from the figures of ……….. of previous year.
a. Last Friday of March
b. Last Reporting Friday of March
c. Last day of March
d. Any one of the above
Ans :  Last day of March
25.The interest rates on bank’s contribution to RIDF or any other Fund, periods, of deposits, etc., shall be fixed by ………….from time to time
a. Government of India
b. Reserve Bank of India
c. NABARD/ SIDBI, as the case  may be
d. A Committee by IBA
Ans : Reserve Bank  of India
26. As per our lending policy, Ideal level of current ration is ………… & hurdle level of current ratio in case of existing borrower is ……..
a. 1.33 : 1 & 1.25 : 1
b. 1.25 : 1 & 1 : 1
c. 1.5 : 1 & 1.33 : 1
d. 1.1 : 1 & 1.25 : 1
Ans : 1.25 : 1 & 1 : 1
27. What is the minimum ( Ideal ) level of Promoter Contribution, in case of Term Loan/Project finance?
a. 25%
b. 30%
c. 20%
d. 15%
Ans : 25%
28. As per Vijaya Bank lending policy, ideal average DSCR is
a. 1.5 : 1
b. 2 : 1
c. 1.25 : 1
d. None of these
Ans : 1.5 : 1
29. As per Vijaya Bank lending policy, hurdle  average DSCR is
a. 1.5 : 1
b. 2 : 1
c. 1.25 : 1
d. None of these
Ans : 1.25 : 1
30. As per Vijaya Bank lending policy, the benchmark TOL/ TNW ratio is ……. and hurdle TOL / TNW ratio is…….
a. 4:1 & 2:1
b. 2:1 & 4 :1
c. 3: 1 & 4 : 1
d. 3: 1 & 5 : 1
Ans : 3: 1 & 4 : 1

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