Friday, 6 September 2019

Asset Classification-6 , Banking Fundamentals to Know for students.


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Asset Classification- 6 


1. State whether the following statements are true or false.
a. A loan that is not producing its stated Principal and interest payments is an asset which is not producing income is called a Non-performing Asset.
 b. Doubtful assets are considered not collectible.
c. Doubtful assets are not considered NPA.
d. Substandard Assets are considered NPA.

2. SARFAESI Act not applicable in_______
1.  House property          2. Machinery         3. Agricultural land                 4.KVP
3. When NPA considered in case of long duration crops_________
1.  4 crop season
2.  2 crop season
3.  3 crop season
4.  1 crop season
5.  None of the above
4. In PVR 'P' Stands for____________
1.  payment
2.  provident
3.  provisioning
4.  None of these
5.  all of these
5. NPA implemented under the recommendation of which committee______________
1.  Sivaraman committee
2.  Narshimham committee
3.  K P committee
4.  None of these
5.  all of these
6. In CPB, 'C' Stands for__________
1.  Counter
2.  Circle
3.  Certificate
4.  Countercyclical
5.  None of the above
7. SARFAESI Act was passed in the year____________
1.  2005
2.  2013
3.  2002
4.  2001
5.  2012




8. When the outstanding balance is more than drawing power and the account become out of order is know as____________
1.  hold on account
2.  dormant account
3.  irregular account
4.  Demat account
5.  None of the above
9. When NPA considered in case of long duration crops_________
1.  1 crop season
2.  2 crop season
3.  3 crop season
4.  4 crop season
5.  None of the above
10. When RBI started the implementation of NPA guidelines_____________
1.  1990
2.  1991
3.  1992
4.  1995
5.  None of the above

11. Under asset classification of NPA accounts above one year but up to three years assets due know as_____________
1.  substandard assets
2.  standard assets
3.  doubtful assets
4.  bad debts
5.  Loss assets
12. n terms of circular dated 1.12.2009 a provisioning coverage ratio on gross NPA is prescribed by RBI is____________
1.  100%
2.  90%
3.  60%
4.  40%
5.  None of the above
13. What is the provisioning percentage of standard assets_____________
1.  0.10%
2.  0.20%
3.  0.40%
4.  0.60%
5.  None of the above

14. If anyone fails to meet its payment obligations to the lender even when it has the capacity to honor the obligations is known as________
1.  Drawer
2.  Drawee
3.  Wilful defaulter
4.  spot defaulter
5.  None of the above
15. Which committee recommended wilful loan defaulter___________
1.  Narasimhan committee
2.  shivraman committee
3.  S. S. Kohli committee
4.  P.K Nayak committee
5.  None of the above
16. When reserve price would have to be arrived__________
1.  before the valuation exercise
2.  before the taxation
3.  after the valuation exercise
4.  All of these
5.  None of the above


17. How many days notice period given after taking possession on movable and immovable properties__________
1.  30 days
2.  60 days
3.  90 days
4.  180 days
5.  365 days
18. Corporate debt restructuring system guidelines were revised in Dec 2005 by__________
1.  S. Gopinath committee
2.  S.P. Nath committee
3.  S.N. Mundra
4.  K.R. Gopalkrishnan
5.  None of the above
19. Central Govt. Can reduce the DRT amount to_________
1.  1 lac
2.  2 lac
3.  3 lac
4.  5 lac
5.  None of the above



20. Under which section applies to DRT against possession notice issued by the bank_________
1.  sec 12
2.  sec 17
3.  sec 19
4.  sec 20
5.  None of the above
21. How many days' notice required for possession___________
1.  30 days
2.  60 days
3.  90days
4.  180 days
5.  365 days
22. Under lok Adalat amount jurisdiction upto__________
1.  10 Lacs
2.  20 Lacs
3.  50 Lacs
4.  1 crore
5.  None of the above




23. Banks required to classify NPA account in_________
1.  1 category
2.  3 category
3.  4 category
4.  5 category
5.  None of the above
24. what is a limit of the loan under which SARFAESI Act not eligible or applicable__________
1.  1 lac
2.  2 lac
3.  3 lac
4.  5 lac
5.  None of the above
25. In which year Basel Implementation started?
1.  1st April 2010
2.  1st April 2013
3.  1st April 2014
4.  1st April 2015
5.  None of the above




26. When RBI supervises Basel implementation bank-wise is know as?
1.  ICAAP
2.  SREP
3.  SRAP
4.  SRDP
5.  None of the above
27. When BASEL will be fully implemented?
1.  Mar-17
2.  Mar-18
3.  19-Mar
4.  Mar-20
5.  None of the above
28. Main motive of Basel accord is________
1.  increase Risk-weighted assets
2.  Decrease portfolio income
3.  increase Risk tolerance level
4.  decrease in portfolio income
5.  None of the above



29. Which department set up by RBI to collect, store, and disseminate credit data to banks on credit exposures of Rs.5 crore and above_______
1.  CRILC
2.  CIBIL
3.  CRISIL
4.  ICRA
5.  None of the above

30. DRTs can entertain cases for recovery for Rs ______.
I.10 lakhs and above
II.20 lakhs and above
III.50 lakhs and above
IV.100 lakhs and above
31. Loans up to  _______ can be settled through Lok Adalats.
I. 2 lakh
II. 5 lakh
III. 10 lakh
IV.20 lakh
32. SARFAESI Act is applicable for loans outstanding upto Rs ___________
I. 10 lakh
II. 5 lakh
III. 2 lakh
IV. 1 lakh

33. A substandard asset is one which has remained NPA for a period less than or equal to ___________.
I. 12 months
II. 6 months
III. 90 days
IV. 180 days
34. Charging of interest at monthly rests would/would not change overdue under NPA.
I.would make overdue of 90 days from monthly interest debiting
II.would make overdue 90 days from the previous quarter ending
III.both of above
IV.none of above
35. When will a loan be NPA?
I.interest and/or loan installments overdue for more than 90 days
II.A/c is out of order for more than 90 days in case of overdraft/cash credit
III. Bill remains overdue for more than 90 days in BP/BD
IV.All of the above
36. A "Standard Asset" of a bank is defined as an asset which is ______________
I.not a non-performing asset (NPA)
II.a doubtful asset
III.a loan asset
IV.none of these
37. A loan or advance of a bank is defined as "Doubtful" when it has remained in Sub-standard category for a period of at least:
I.6 months
II.12 months
III.3 months
IV.18 months
38. A loan or advance of a bank is defined as "Non-Performing Asset"(NPA) when it remains overdue or out of order for a period of:
I.90 days
II.less than 90 days
III.more than 90 days
IV.more than 180 days
39. Loans and advances of banks appear in their balance sheets on the side of :
I.liabilities
II.assets
III.income
IV.expenses

40.State whether the following statements are true or false.
a. The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act was enacted in 2004 in India.
b. The Fair Practices Code for Lenders was finalized on the basis of the recommendations of the working group on Lenders’ Liability Laws constituted by the Government of India, Reserve Bank of India in consultation with the Government, some banks and financial institutions.

Answers:-

1. a.TRUE   B. F  C.F   D.F     2. III    3. IV    4. III    5.II      6. IV  7. III    8. III   9. I   10. III    11. III     12. III     13. III  14. III     15. I     16.  IIII     17. I   18.I     19.   I     20. II        21. II        22. II     23. II    24.I 25..II     26.II    27.III    28.III   29.  I    30. II 31. IV     32.IV      33.I      34. II       35.IV     36.I     37. II     38.  III         39.  II    40.    A. F    B. T







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