Thursday, 6 April 2017

Banking Questions Test (MCQ)- 43

1. Objective of credit monitoring is . . .
a) Ensuring maintenance of high quality credit portfolio
b) Ensuring that the borrowers bring in more business to the Bank

c) Appraise the performance of credit department
d) None of the above

2. One of the effective monitoring tools in credit monitoring is
a) Collateral Security of more than 100% loan value
b) Obtaining references from respectable persons about the borrower
c) Periodic stock inspection
d) None of the above

3. Adverse features/warning signals in the operations of a loan account can be . . …..
a) Delayed submission of stock statements and other information
b) Delayed payment of installments and interest
c) Frequent bouncing of cheques /frequent requests for overdrawing
d) All of the above

4. Two of the assets to be verified during stock verification are
a) Fixed assets and non-current assets
b) Stocks and book debts
c) Capital and free reserves
d) None of the above

5. The main aim of supervision and follow up in credit monitoring is
a) Ensure full capacity utilization
b) Regular submission of MIS
c) Ensuring end use and safety of funds lent
d) None of the above

6. A NPA is a loan or advance (Non-agricultural loans) where
a) Interest and/or installment of principal remain overdue for a period of more than 90 days
b) Interest and/or installment of principal remain overdue for a period of more than 180 days
c) Interest and/or installment of principal remain overdue for a period of more than 270 days
d) None of the above
7. A cash credit account will become NPA if …
a) Remains out of order for more than 90 days  
b) Stock statement not submitted for 60 days
c) Account not reviewed for 3 months
d) All of the above

8. An asset is classified as sub-standard
a) If the asset has remained NPA for a period less than or equal to 18 months
b) If the asset has remained NPA for a period less than or equal to 12 months
c) If the asset has remained NPA for a period between 12 months and 15 months
c) None of the above

9. If unsecured assets are classified as sub standard it will attract an additional provision of
a) 2% of the total outstanding
b) 5% of the total outstanding
c) 10% of the total outstanding
d) None of the above

10. Unsecured portion of a doubtful asset will attract a provision of…
a) 25% of unsecured portion
b) 50% of unsecured portion
c) 100% of unsecured portion

d) None of the above

Answer-
1
2
3
4
5
6
7
8
9
10
a
c
d
b
c
a
a
b
c
c


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