Banking Awareness Quiz (Based on lending)



1. Collateral securities can be _____?
(a) Tangible
(b) Intangible in the shape of personal guarantee of a third party
(c) security given to get credit facilities/loan 
(d) All of the above
(e) None of the above

2. The Short-Term Crop Loan given to Farmers are generally for a period of _____?
(a) 3 months
(b) 6 months
(c) 9 months
(d) 12 months
(e) 15 months

3. Which of the following is a borrowing facility/loan advance _____?
(a) Term finance
(b) Performance guarantee
(c) Bill received under letter of credit
(d) All the above 
(e) None of the above


4. Pledge of advance is made against ______?
(a) Gold
(b) Commodities
(c) Coins and notes
(d) All the above 
(e) None of the above

5. Which of the following are covered under pledge?
(a) Actual delivery of the goods
(b) Factory type pledge 
(c) Constructive delivery of the goods
(d) All the above 
(e) None of the above

6. What is the minimum period of medium and long-term loans?
(a) 12 months
(b) 18 months
(c) 24 months
(d) 36 months
(e) None of the above

7.Which of the following is/are true about the “Sub-Prime Crisis”- a term which was in the news
recently?
(1) It is a Mortgage crisis referring to Credit default by the borrowers.
(2) Sub-Prime borrowers were those borrowers who were rated low and were high risk borrowers. 
(3) This crisis originated out of negligence in credit rating of the borrowers. 
(a) Only 1
(b) Only 2
(c) Only 3
(d) All of the above
(e) None of the above

8. NABARD re-finance is available to ______?
(a) Regional Rural banks
(b) Commercial banks
(c) State Co-operative banks
(d) Land Development bank
(e) All of these

9.Identify which among the following is not considered a Consumer loan product offered by Banks in India?
(a) Personal Loan
(b) Car Loan
(c) Consumer Durable Loan
(d) Bank Overdraft
(e) Home Loan

10. The most risky charge from a banker’s point of view is ______?
(a) Pledge
(b) Hypothecation 
(c) Mortgage 
(d) Lien  
(e) None of the above

11. An equitable mortgage can be created in respect of _______?
(a) Government securities
(b) Real estate
(c) Wheat in a godown
(d) Life Policies 
(e) None of the above

12.A charge where there is neither the transfer of ownership nor the possession is called ______?
(a) Hypothecation 
(b) Lien 
(c) Pledge
(d) Mortgage  
(e) None of the above

13.The liability of the mortgager is gradually reduced in the case of _______?
(a) Equitable mortgage 
(b) Legal mortgage 
(c) Usufructuary mortgage 
(d) Conditional mortgage 
(e) None of the above

14. These days Banks are offering Loans against Property? Under which business segment, this  activity may be categorized?
(a) Corporate Banking 
(b) Personal Banking 
(c) Merchant Banking
(d) Portfolio Management services 
(e) None of the above

15. What do we mean by “ECB” in financial terms?
(a) Essential Commercial Borrowings 
(b) Essential Credit & Borrowings 
(c) External Credit & Business
(d) External Commercial Borrowings 
(e) None of the above

Answers -

1. d
2. d
3. a
4. b
5. d
6. b
7. d
8. e
9. d
10. b
11. b
12. a
13. c
14. d
15. d

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