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