Module 1- ICICI

Which of the following is the most fundamental principle of lending?

• Interest Rate Flexibility

• Safety

• Loan Size

• Collateral Value

Liquidity in lending refers to:

• Profit earned on loans

• Easy approval process

• Reducing tax liability

• Borrower’s ability to repay on time

Which financial ratio helps evaluate repayment ability from cash flow?

• DSCR

• IRR

• ROI

• NPV

Lending to a borrower for investing in the stock market violates which principle?

• Liquidity

• Profitability

• Safety

• Purpose of Loan

A primary security refers to:

• Guarantor’s asset

• Asset purchased using the loan

• Fixed Deposit of borrower

• Insurance policy

Credit rating agencies like CRISIL help banks in ensuring:

• Liquidity

• Profitability

• Safety

• Diversification

Which principle focuses on ensuring returns from a lending activity?

• Liquidity

• Profitability

• Safety

• Selection of Borrower

CIBIL score is primarily used to assess

• Net worth of the borrower

• Purpose of the loan

• Repayment history and creditworthiness

• Legal compliance

Which of the following is an example of collateral security?

• Inventory purchased

• Machinery financed

• Property not related to loan purpose

• Cash flow from sales

Which principle helps in reducing exposure to sector-specific risks?

• Profitability

• Diversification

• Safety

• Liquidity