Tuesday, 13 August 2019

Banking Questions and Answers with Fundamentals to Know. Series-36


Chapter-9; Kisan Credit Card Scheme;

1. Kisan Credit Cards are issued for a period of _______________________.
A.      one year
B.      three years
C.      five years
D.      seven years
2. 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
3. Kisan Cards are issued to farmers to enable them to ____________________
A.      withdraw money from ATM in rural branches
B.      purchase farm equipment
C.      purchase agricultural implements on credit from dealers
D.      meet their cultivation needs and non-farm requirements, including the purchase of inputs and other short term requirements and working capital requirements for allied activities.
4. Which group is eligible for Kisan Credit Card Scheme?
A.      tenant farmers
B.      oral lessees
C.      share croppers
D.      all of these
5. What is the additional limit towards cost escalation/increase in the scale of finance for every successive year?
A.      50%
B.      10%
C.      30%
D.      25%
6. Drawing limit for short term cash credit should be fixed based on the cropping pattern and the amounts for crop production, repairs, and maintenance of farm assets.
A.      True
B.      False
7. The _______________period may be fixed by banks as per the anticipated harvesting and marketing period for the crops for which a loan has been granted.
A.      insurance
B.      liability
C.      repayment
D.      assets
8. _________________ security may be obtained at the discretion of Bank for loan limits above Rs 1 lakh in case of non-tie-up and above Rs 3 lakh in case of tie-up advances.
A.      Collateral
B.      Lateral
C.      Mutual
D.      Registered
9. In the case of disbursement of Loans, there should be no restriction on the number of debits and credits.
A.      True
B.      False
10. Hypothecation of crops up to card limits of Rs 1lakh as per the extant _________ guidelines.
A.      SBI
B.      RBI
C.      CBI
D.      UBI
Chapter-10; Cash Flows of a Small Borrower
1. In a Bank's Balance Sheet, loans and advances will appear in ____________column.
A.      Liabilities
B.      Assets
C.      Capital
D.      Income
2. Assets= Liabilities+_________________
A.      profit
B.      interest
C.      capital
D.      loan
3. Which of the following statements is NOT correct?
A.      a cash flow statement is for a particular period
B.      in monthly cash flow, the statement, all cash inflows, and cash outflows during that month are taken into account
C.      in a monthly cash flow statement, the closing cash balance is equal to profit in that month
D.      cash inflows in a month may not always be more than the cash outflows in that month
4. Which of the following statements is NOT correct?
A.      repayment of loan installment is taken as a cash outflow in the cash flow statement
B.      depreciation is taken as a cash outflow in the cash flow statement
C.      interest payment to the bank is taken as a cash outflow in the cash flow statement
D.      cash received on the sale of scrap is taken as a cash inflow in the cash flow statement
5. Which of the following is not reflected as a cash outflow in the cash flow statement?
A.      transport charges paid on bringing the material to the factory
B.      purchase of material by cash payment
C.      purchase of material on credit
D.      payment of telephone bill
6. Income - Operating Expenses= ______________
A.      Profit
B.      Loss
C.      Operating profit
D.      Operating loss
7. The actual flow of income and expenditure is known as _________ flow.
A.      rent
B.      wage
C.      interest
D.      cash
8. Which of these affect the cash flows?
A.      Debtors
B.      Inventory
C.      Bank Loan
D.      Capital Expenditure
E.       All of these
9. Understanding, clearly the projected cash flows will help the lender to assess the amount of loan to be extended as also decide about the disbursement schedule.
A.      True
B.      False
10. Complete the statement; "Profit is a myth but cash is a ______________"
A.      viability
B.      reality
C.      decision
D.      interest

Bold option is correct answer.

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Lendings-8 , Banking Fundamentals to Know for Students.

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