• Banking Quiz -55

    541 Which of the following is an income for a bank?
      A) Depreciation on bank’s property
      B) Interest on inter bank borrowings
      C) Profit on revaluation of investments
      D) Provisions made on account of write-offs
    542 A lease is treated as a capital lease
      A) If Lease life exceeds 75% of life of asset
      B) If there is a transfer of ownership to lessee at the end of lease term
      C) If there is an option to purchase the asset at “bargain price” at the end of lease term
      D) All of the above
    543 Which of the following statements is true?
      A) The special purpose vehicle (SPV) purchases the assets from the borrower directly during the securitization
      B) The originator and obligor are the same persons in securitization process
      C) Administrator collects the payments due from the obligor and passes it to the SPV and follows with defaulters
      D) Mortgage based securitization provides high yields to the investor
    544 Which is not an advantage of equipment leasing
      A) Possible tax benefit
      B) Fixed payments
      C) Fixed interest rate
      D) Floating interest rate
    545 The Disadvantage of Branch Banking is
      A) Leads to Uniform Structure of Interest Rates
      B) Diversification of Risks
      C) Facilitates the penetration of best banking services to the far flung areas of the nation
      D) excessive centralization
    546 Which of the following factors is not required to be considered to analyze the repayment capacity of a borrower?
      A) Working capital management
      B) Personal educational qualifications
      C) Financial leverage
      D) Interest rate risk management
    547 The following type of LC can be emended or cancelled at any time  by the importer with out of the consent of the exporter.
      A) Revolving LC
      B) Stand by LC
      C) Revocable LC
      D) Irrevocable LC
    548 Deposit Guarantee is used for which purpose?
      A) to eliminate lack of foresight
      B) to eliminate moral hazard
      C) to eliminate speculation
      D) None of the above
    549 Which of the following is the risk associated with the retail banking?
      A) Strong recovery strategy
      B) Definite lending limits
      C) Effective credit process and proposals
      D) Inadequate risk pricing
    550 Which of the following is true about high yield debts?
      A) Offers a highly flexible and less restrictive financing alternative for may companies
      B) Used to meet longer term fixed rate financing needs related to working capital, refinancing, recapitalizations, acquisitions or capital expenditures.
      C) Non- investment grade debt instruments
      D) All of the above


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