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BANK LENDING QUIZ

Total questions: 16

Worksheet time: 11mins

Name
Class
Date
1.

Banks are financial intermediaries between

a)

Debtors and borrowers

b)

Debtors and creditors

c)

Surplus and deficit units

d)

Individual and corporate

2.

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

a)

Borrowers who take on financing

b)

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

c)

Interest normally charged at agreed rate-floating

d)

Normally loan period is 9 years

3.

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

a)

Character, Capacity, Capital, Conditions, Collateral

b)

Character, Capacity, Capital, Conditions, Commitments

c)

Character, Capacity, Capability, Conditions, Capital

d)

Commitments, Capacity, Capability, Conditions, Collateral

4.

The following factors affected Loan assessment, EXCEPT

a)

Industry and economic outlook

b)

Value of the customer

c)

Repayment capacity

d)

Appearance of the customer

5.

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

a)

Dividend income

b)

Owner and guarantors of the business

c)

Liquidation of assets

d)

Cash flow generated through business operation

6.

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

a)

Bank’s database

b)

Customer’s application form

c)

Another bank’s internal database

d)

Business journal

7.

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

a)

Bursa Malaysia

b)

New York Stock Exchange

c)

London Stock Exchange

d)

Private Limited Companies

8.

A good security needs to have the attribute of

a)

Volatility (Mudah berubah)

b)

Enforceability (Boleh dikuatkuasakan)

c)

Efficiency (Bersifat cekap)

d)

Restrictiveness (Bersifat membatasi)

9.

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

This statement refer to?

a)

Bills.

b)

Letters.

c)

Telephone calls.

d)

Collection agencies.

10.

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

a)

Personal meeting

b)

Collection agencies

c)

Lien holder’s caveat

d)

Personal Visits

11.

Prior to creating a legal charge, it is important to conduct a land search at the relevant land office. Which of the following is the purpose of conducting a land search?

a)

To protect the bank’s interest.

b)

To make sure that proper and complete legal documentation is in order.

c)

To ascertain approval from bank’s approving authority.

d)

To determine the restriction in interest and conditions affecting the document of title.

12.

Which of the following is the purpose of loan agreement?

a)

To standardize the loan products.

b)

To determine the amount of loan eligible to the borrowers.

c)

To allow bank lender to add additional terms and conditions that may not appear in standard documents.

d)

To impose additional charge on loan agreement.

13.

Under Bank Negara Malaysia, when borrowers ignore the cooperative workouts and those liquidated collaterals are insufficient to cover the outstanding loan owed to the bank is refer to _________________.

a)

Non-performing loans

b)

Bad loans

c)

Bankruptcy

d)

Reduced loans

14.

List down THE TYPES OF LOAN on the following market structures of loan:


Consumer loan

a.

b.

c.

d.

4 lines
15.

List down FIVE (5) Islamic financing products

4 lines
16.

List down THE TYPES OF LOAN on the following market structures of loan:


Commercial loan

a.

b.

c.

d.

e.

4 lines