• Banking Quiz – 6

    51 When multiple banks form a group to collectively satisfy a high funding requirement of a borrower is called?
      A) Syndicated loan
      B) Term Loan
      C) Revolving Loan
      D) None of These
       
    52 The loan provided for financing of long term assets is normally called as?
      A) Syndicated loan
      B) Term Loan
      C) Revolving Loan
      D) None of These
       
    53 Which is not a demand deposit account?
      A) Savings Account
      B) Fixed Account
      C) Negotiable Order of Withdrawal (NOW) Account
      D) Money Market Account
       
    54 The rate at which the central bank provides money to the other financial institutions or banks is termed as?
      A) Bank Rate
      B) Savings Rate
      C) Fixed Deposit rate
      D) Reverse Repo Rate
       
    55 Loans where the borrower can withdraw the money within his credit limit,  repay some or all part of the outstanding amount and can borrow again over the tenure of the loan is termed as?
      A) Syndicated loan
      B) Term Loan
      C) Revolving Loan
      D) None of These
       
    56 In which method banks develop their own statistical model to calculate the operational risk?
      A) Standardized Approach
      B) Basic Indicator Approach
      C) Measurement Approach
      D) None of These
       
    57 As per Basel 3 norms, Banks are required to hold ___ of common equity
      A) 7.5%
      B) 5.5%
      C) 5%
      D) 2.5%
       
    58 Letter of Credit is mainly used in?
      A) cross-border trade
      B) Provide bank guarantee for tenders
      C) provide loans to exporters at subsidized rate
      D) None of These
       
    59 Which letter of credit is used for repeated import of same type of goods by the same importer over a period of time?
      A) Back-to-Back
      B) Revolving Credit
      C) Irrevocable
      D) Standby Credit
       
    60 When a company sells its account receivables to a third party or a bank at a discount for some immediate money to finance its urgent cash requirements, is called as?
      A) Factoring
      B) Bank Guarantee
      C) Revolving Loan
      D) Revolving Credit

     

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