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advances general

Total questions: 25

Worksheet time: 13mins

Name
Class
Date
1.

the loan policy is an embodiment of the bank's approach to

a)

sanctioning, managing and monitoring credit risk

b)

sanctioning, managing and monitoring market risk

c)

sanctioning, managing and monitoring operational risk

d)

all the above

2.

the provisions of the current loan policy of our bank are applicable to the _______

a)

domestic operation of the bank

b)

domestic as well as international operations of the bank

c)

commercial advances of the bank

d)

fund based & non-fund based advances portfolio of the bank

3.

which of the following is mitigant for credit concentration risk?

a)

aviling of insurance cover to mitigate risk

b)

slowdown of the lending by the banker

c)

sector wise lending limits

d)

obtaining adequate collateral security to mitigate the risk in credit

4.

the bank's aggregate exposure to capital market should not exceed _____ of the net worth of the bank on a solo and consolidated basis

a)

40%

b)

10%

c)

5%

d)

2%

5.

according to the loan policy of SBI the maximum aggregate credit facility (FB+NFB) for an indivisual borrrower against specified securities in RS.

a)

25 CR

b)

50 CR

c)

100 CR

d)

No limit

6.

as per bank's loan policy document, the maximum aggregate credit facilities (fund based and non fund based) to non-corporate borrowers (e.g partnership, associations etc.) is:

a)

RS.10 CRORES

b)

RS.50 CRORE

c)

RS.100 CRORE

d)

RS.500 CRORE

7.

advances with exposures of above RS.50 CRORE and other than those accounts and groups indentified for CAG relationship are handled by

a)

R AND DBG

b)

CCG

c)

MCG

d)

SARG

8.

What is the cut of limit of advances for reporting the borrower as willful defaulter

a)

RS.10.00 LAC AND ABOVE

b)

RS.25.00 LAC AND ABOVE

c)

50.00 LAC AND ABOVE

d)

RS.1.00 CRORE AND ABOVE

9.

Cash generation/cash profit or cash accrual means

a)

profit+depreciation

b)

profit less depreciation

c)

net profit

d)

none of these

10.

the various disclosure in the balance sheet of banks aim at

a)

supervision

b)

inspection

c)

monitoring

d)

transperency

11.

as per MSMED Act 2006 medium enterprises (Mfg) are those having investment in plant and machinery above

a)

RS 5 CRORES UPTO RS.10 CRORES

b)

RS.5 CRORE

c)

RS.10 CRORES UPTO RS.50 CRORES

d)

RS.50 CRORES UPTO RS. 100 CRORES

12.

The loss before depreciation is called

a)

net loss

b)

actual loss

c)

accumulated loss

d)

cash loss

13.

non fund facilities at the whole bank level should not exeed ______ of fund based exposure

a)

50%

b)

100%

c)

150%

d)

200%

14.

the aggregate exposure to all "large borrowers" should not exeed _______ of bank's tire I capital

a)

100%

b)

200%

c)

500%

d)

800%

15.

facility rating under CRA is applicable for advances above

a)

RS1.00 CR

b)

RS.5.00 CR

c)

RS.10.00 CR

d)

RS.50.00CR

16.

the renewal of cash credit limit sanctioned by bank, particularly the cash credit limit, is repaid out of

a)

half yearly basis

b)

quarterly basis

c)

annual basis

d)

Bi-anual basis

17.

legal audit is mandatory for all advances with exposure

a)

RS.1.00 CRORE and above

b)

RS. 5.00 crore and above

c)

RS.10.00 crore and above

d)

RS. 50.00 crore and above

18.

capital adequacy return is required to be submitted by branches

a)

yearly

b)

half-yearly

c)

quarterly

d)

monthly

19.

the term liquid surplus used in computing working capital denotes

a)

net working capital

b)

sulprus from operation

c)

cash andd bank balance

d)

surplus of its over long term uses

20.

under nayak committee turn over method for working capital, the current ratio

a)

1.33:1

b)

1.25:1

c)

1:1

d)

0.8:1

21.

quick assets can be calculated as

a)

CA-Stock-prepaid expenses

b)

CA-BD- cash

c)

BD+cash prepaid expenses

d)

none of these

22.

MPBF (maximum permissible bank finance) has been replaced with _____ method

a)

ABF

b)

Cash

c)

turnover

d)

operating cycle

23.

the bank guarantees are covered under

a)

sale of goods act

b)

indian contract act

c)

N.I.Act

d)

companies act

24.

break even analysis is useful to find out

a)

sales turnover

b)

net profit

c)

no profit no loss sales

d)

none of these

25.

bank cannot give loan against his own shares under which act

a)

bank regulation act

b)

RBI Act

c)

NI act

d)

SEBI Act