Banking Questions and Answers with Fundamentals to Know. Series -35

BC / BF EXAM (IIBF) Series -35 ( PROBABLE QUESTIONS AND ANSWERS )

Chapter-7

Read the questions and statements properly and choose the correct options.

1. The name of the charge created while advancing against LIC policy is____________

A.      assignment

B.      lien

C.      pledge

D.      set off

2. Loan against minor's term deposit;

A.      can be granted if the documents are signed if the minor has completed the age of 14 years

B.      cannot be granted under any circumstances as the minor does not have the contractual capacity

C.      can be granted to the guardian of the minor, if it is for the necessities of the minor

D.      can be granted only with the permission of the court

3. In the case of assignment of LIC Policy as a security to an advance, the assignment is not complete unless a notice of an assignment is given to the insurance company.

A.      True

B.      False

4. To the above notice of assignment may be given either by the assignor or by the assignee.

A.      True

B.      False

5. There is more risk for the bank when the hypothecation charge created by a company is registered with the ROC.

A.      True

B.      False

6. One of the essential requirements of a pledge is the actual or constructive delivery of the goods pledged by the pledger to the pledgee.

A.      True

B.      False

7. The limitation period for filing suit for sale of immovable property is thirty years from the date mortgage debt becomes due.

A.      True

B.      False

8. Banks have to file a suit before the Debt Recovery Tribunal for recovery, if the amount due is Rs _______ lakh and above.

A.      20

B.      10

C.      15

D.      5

9. ______________is a transfer of interest in immovable property to secure an advance.

A.      collateral

B.      enforcement

C.      mortgage

D.      security

10. Which of these is NOT considered while conducting the Valuation of Property?

A.      Location of Land

B.      Updated UIDAI

C.      Age of the building

D.      Cost incurred for construction

Chapter-8

Read the questions or statements carefully and choose the correct options.

1. Kisan Cards are issued for_______________

A.      short term only

B.      for term loans only

C.      for both the short term and term loan

D.      for meeting domestic expenses only

2. Under the farm mechanization scheme, the loan is given for________________

A.      providing irrigation facilities

B.      cultivation expenses

C.      purchase of farm equipment

D.      for digging wells

3. Advances to weaker sections "interalia" include _________________

A.      Individual women beneficiaries up to Rs 2 lakh per borrower

B.      Distressed persons other than farmers, with loan amount not exceeding Rs 2 lakh per borrower to prepay their debt to non-institutional lenders

C.      Overdrafts uptoRs 5000 under PradhanMantri Jan DhanYojana accounts

D.      Artisans, village, and cottage industries where individual credit limits do not exceed Rs 2 lakh

4. The scheduled commercial banks are expected to enlarge credit to the priority sector and ensure that priority sector advances constitute _______________ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher.

A.      eighteen percent

B.      forty percent

C.      twelve percent

D.      twenty-five percent

5. Educational loans should include only loans and advances granted to individuals for educational purposes up to Rs ________ for studies in India, to be classified as a priority sector.

A.      seven and a half lakh

B.      ten lakh

C.      fifteen lakh

D.      twenty lakh

6. Housing Loans granted to individuals up to Rs __________ for construction of the house (excluding loans granted by banks to their employees) at non-urban centers are treated as priority sector advances.

A.      five lakhs

B.      ten lakhs

C.      twenty lakhs

D.      fifteen lakhs

7. Under MSME, loans in the manufacturing sector for micro enterprises does not exceed Rs ________ lakh

A.      50

B.      30

C.      25

D.      20

8. Under MSME, loans in the service sector for micro enterprises does not exceed Rs ________ lakh

A.      5

B.      15

C.      10

D.      20

9. Under Renewable Energy, for individual household the loan limit will be Rs ________lakh per borrower.

A.      20

B.      10

C.      15

D.      5

10. No loan related and adhoc service charges/inspection Charges should be levied on priority sector loans up to Rs 25000/-

A.      True      B.False

Bold option is correct answer.