Banking And Financial Institutions - Practice Test

[#846] If credit facility applied for is rejected, the reasons therefore should be briefly mentioned in the:

(A) Loan Applications Received and Disposal Register

(B) Opinion Reports

(C) Loan Rejection Register

(D) None of the above

Correct Answer

(A) Loan Applications Received and Disposal Register

[#847] Which of the following is considered 'good money' according to Gresham's law?

(A) Alternative currency

(B) Standard currency

(C) Representative money

(D) None of the above

Correct Answer

(B) Standard currency

[#848] Match the items of List-I with the items in List-II and suggest the correct option. List-I List-II a. Interbank call market 1. Money market b. Commercial Bills 2. Promissory note c. Commercial paper market 3. Short-term maturity d. Treasury bills 4. Government papers

(A) a-1, b-2, c-4, d-3

(B) a-3, b-1, c-2, d-4

(C) a-1, b-3, c-4, d-2

(D) a-4, b-3, c-2, d-1

Correct Answer

(B) a-3, b-1, c-2, d-4

[#849] Which of the following statements is not correct:

(A) The rising interest rate increases the discount rate on cash flows and decreases the market value of that Asset

(B) Falling interest rates decrease the market value of Assets or Liabilities

(C) When a Bank holds longer term assets than liabilities and if interest rate rises, the market value of Assets falls by more amount than liabilities

(D) The above C may lead to economic loss

Correct Answer

(B) Falling interest rates decrease the market value of Assets or Liabilities

[#850] A sub-standard asset refers to:

(A) Remaining NPA for less than or equal to 12 months

(B) Remaining NPA for more than 12 months

(C) Where the loss has been identified by the bank

(D) When loan is overdue for a period of 1 year

Correct Answer

(A) Remaining NPA for less than or equal to 12 months

Banking And Financial Institutions - Study Mode

[#846] If credit facility applied for is rejected, the reasons therefore should be briefly mentioned in the:

Correct Answer

[#847] Which of the following is considered 'good money' according to Gresham's law?

Correct Answer

[#848] Match the items of List-I with the items in List-II and suggest the correct option. List-I List-II a. Interbank call market 1. Money market b. Commercial Bills 2. Promissory note c. Commercial paper market 3. Short-term maturity d. Treasury bills 4. Government papers

Correct Answer

[#849] Which of the following statements is not correct:

Correct Answer

[#850] A sub-standard asset refers to:

Correct Answer