BANK LENDING QUIZ

Banks are financial intermediaries between

• Debtors and borrowers

• Debtors and creditors

• Surplus and deficit units

• Individual and corporate

The following are the characteristics of Hire Purchase for consumer loan EXCEPT

• Borrowers who take on financing

• Penalty is imposed on overdue installments with its interest charged on a daily basis

• Interest normally charged at agreed rate-floating

• Normally loan period is 9 years

Which of the following is TRUE about 5’Cs credit?

• Character, Capacity, Capital, Conditions, Collateral

• Character, Capacity, Capital, Conditions, Commitments

• Character, Capacity, Capability, Conditions, Capital

• Commitments, Capacity, Capability, Conditions, Collateral

The following factors affected Loan assessment, EXCEPT

• Industry and economic outlook

• Value of the customer

• Repayment capacity

• Appearance of the customer

The source of repayment in a financing project proposal should generally be from

• Dividend income

• Owner and guarantors of the business

• Liquidation of assets

• Cash flow generated through business operation

Credit information of customers can be appropriately obtained from various sources EXCEPT through

• Bank’s database

• Customer’s application form

• Another bank’s internal database

• Business journal

As collaterals, shares are divided into quoted and unquoted shares. The following is the quoted shares, EXCEPT

• Bursa Malaysia

• New York Stock Exchange

• London Stock Exchange

• Private Limited Companies

A good security needs to have the attribute of

• Volatility (Mudah berubah)

• Enforceability (Boleh dikuatkuasakan)

• Efficiency (Bersifat cekap)

• Restrictiveness (Bersifat membatasi)

“Done when borrower fails to act on letters sent".

This statement refer to?

• Bills.

• Letters.

• Telephone calls.

• Collection agencies.

Which of the following is collection techniques that requires a banker to visit borrowers personally to demand payment?

• Personal meeting

• Collection agencies

• Lien holder’s caveat

• Personal Visits