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Revision - Credit

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

The advance which has immediate outlay of funds is called ______.

a)

Non-Fund based advance

b)

Secured Advance

c)

Fund based advance

d)

Unsecured Advance

2.

Which of the following is not one of the qualities of a good security?

a)

Stability

b)

Transferability

c)

Ascertainability

d)

Movability

3.

______ is defined as “Bailment of goods as security for payment of a debt or performance of promise.”

a)

Hypothecation

b)

Pledge

c)

Lien

d)

Assignment

4.

M/S Star India Pvt Ltd has availed credit facility to meet daily business needs. This facility provided by the bank is called as _________.

a)

Unsecured advance

b)

Working capital facility

c)

Non-fund based advance

d)

Term loan

5.

Recent trends in borrower's line of activity and changing economic conditions that might impact his financial positions and thereby the ability to repay refers to which 'C' of credit? 

a)

Condition

b)

Capacity

c)

Collateral

d)

Character

6.

Charge created over the movable assets where neither the ownership nor the possession of goods is transferred to the creditor, but an equitable charge is created in favor of banker is called _________.

a)

Pledge

b)

Hypothecation

c)

Lien

d)

Assignment

7.

Mrs. Sonia has availed housing loan from the bank. The tenure is 30 years. This facility is called as _______.

a)

Working Capital Facility

b)

Unsecured advance

c)

Non-fund based facility

d)

Term Loan

8.

Identify which one is not a basic principles of lending?

a)

Analysis

b)

Safety

c)

liquidity

d)

Profitability

9.

Willingness to repay – honesty, integrity, responsibility and attitude / commitment of the borrower to repay refers to which 'C' of credit?

a)

Condition

b)

Collateral

c)

Character

d)

Capital

10.

Creation of charge over the movable assets like land and building is called as:

a)

Mortgage

b)

Hypothecation

c)

Lien

d)

Assignment

11.

Letter of credit issued by  bank on behalf of M/s Auto India to M/s Germany Automobiles is a ______ facility.

a)

working capital facility

b)

Term Loan

c)

Fund based facility

d)

Non-fund based facility

12.

What is the maximum tenure for Personal Loan Repayment?

a)

24 Months

b)

36 Months

c)

60 Months

d)

48 Months

13.

What is the minimum & maximum amount of Gold loan which can be availed from YES Bank?

a)

Min - Rs.50,000  Max - Rs.25 lacs

b)

Min - Rs.25,000  Max - Rs. 50 lacs

c)

Min - Rs.50,000  Max - Rs.50 lacs

d)

Min - Rs.25000  Max - Rs.25 lacs

14.

To avail Gold Loan, Gold Ornaments have to be ________ with the bank.

a)

Hypothecated

b)

Mortgaged

c)

Pledged

d)

Assigned

15.

Choose the incorrect option wrt. Personal Loans.

a)

Personal Loans are usually “unsecured”

b)

Personal Loan are usually a medium-term in nature.

c)

The evaluation criteria for sanctioning such Loan include value of security offered by customer.

d)

Interest rates on such loan is higher than home loan, car loan or gold Loan as there is a greater risk involved.