<<12345678910111213141516171819202122232425>> 1. What is a critical aspect of credit delivery for selecting the right borrower?Assessing the borrower's income levelEvaluating the borrower's social statusConducting a credit appraisalReviewing the borrower's spending habitsQuestion 1 of 25 2. What is one of the questions that need to be addressed before a bank lends money?How much profit can the borrower make?What is the borrower's credit score?How will the bank recover the money in case of default?How quickly can the borrower repay the loan?Question 2 of 25 3. In the context of creating a charge on securities, what does the term "charge" refer to?The interest rate applied to the loanThe legal claim the bank has over the securitiesThe monthly installment paid by the borrowerThe amount of money lent to the borrowerQuestion 3 of 25 4. What is one consideration regarding the disbursement of a loan?The borrower's spending habitsWhether the borrower has a good credit historyWhether the loan amount should be credited to the borrower's account or disbursed in another mannerThe borrower's social statusQuestion 4 of 25 5. What is the primary purpose of signing documents by borrowers and guarantors in the context of lending?To establish the bank's liability in a court of lawTo ensure timely repayment of the loanTo confirm the borrower's income levelTo assess the borrower's spending habitsQuestion 5 of 25 6. What should be ensured about the parties executing the documents?They should have a good credit historyThey should have the necessary authority and capacity to enter into a contractThey should be registered with the Reserve Bank of IndiaThey should have a high social statusQuestion 6 of 25 7. In case of companies, what should be done within 30 days from the date of execution of the documents?The documents should be sent to the Reserve Bank of IndiaThe documents should be registered with the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI)The charge should be registered with the Registrar of Companies (ROC)The charge should be registered with the Sub-registrarQuestion 7 of 25 8. Which authority should charge over aircraft be registered with, according to the provided text?Reserve Bank of IndiaCentral Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI)Director General of Civil AviationMercantile Marine DepartmentQuestion 8 of 25 9. What is the primary purpose of obtaining personal guarantees of directors?To ensure that the directors have a stake in the company's successTo provide additional security against default in case of companies with satisfactory financial conditionsTo ensure continuity of management and protect against changes in managementTo prevent directors from making changes in the management structureQuestion 9 of 25 10. When might personal guarantees be relevant for public limited companies other than those rated as first class?When the advance is on a secured basisWhen the advance is on an unsecured basisWhen the company's financial position is satisfactoryWhen the company's financial position is not satisfactoryQuestion 10 of 25 11. What stipulation should be incorporated into the bank's terms and conditions for sanctioning credit limits?The borrowing company will pay a commission to the guarantorsThe guarantors will not receive any consideration, directly or indirectly, from the borrowing companyThe borrowing company will receive a fee for providing guaranteesThe guarantors will receive a fee for providing guaranteesQuestion 11 of 25 12. In what situation might payment of remuneration to guarantors by way of guarantee commission be permitted?When the assisted concerns are doing wellWhen the existing guarantors are connected with the managementWhen the new management's guarantee is available and adequateWhen the existing guarantors are no longer connected with the management and their continuance is essentialQuestion 12 of 25 13. In the 'Hypothecation' method, who typically retains possession of the goods?BankBorrowerGodown keeperTrusteeQuestion 13 of 25 14. What is the term used to describe the borrower's possession of goods under 'Pledge'?Constructive possessionActual possessionBank possessionTrust possessionQuestion 14 of 25 15. What is the term used when two or more banks formally arrange to finance the working capital needs of a borrower?Single bankingLead bankingConsortium arrangementSole bankingQuestion 15 of 25 16. What role does the "Lead bank" typically play in a consortium arrangement?Providing all the fundingArranging periodic meetings and leading assessment and documentationMonitoring the borrower's account onlySharing information with other banksQuestion 16 of 25 17. What action did the Reserve Bank of India advise banks to take to address concerns about information sharing in consortium and multiple banking arrangements?Withdrawal of regulatory prescriptionsIntroduction of stricter lending criteriaStrengthening information backup and exchange among banksLimiting the number of banks involved in such arrangementsQuestion 17 of 25 18. What is the primary purpose of loan syndication?To increase the borrower's credit limitTo reduce the risk associated with lending to a borrowerTo increase the interest rate charged on the loanTo simplify the loan application processQuestion 18 of 25 19. What role does the "Lead bank" play in loan syndication?Providing all the fundingLiaison work and arranging sanctions on behalf of the borrowerSetting the interest rate for the loanAppraising the borrower's proposalQuestion 19 of 25 20. When a borrower mandates a lead bank to arrange for sanctions for the total loan amount, what does the lead bank do?Approaches various banks with the details and appraises the proposalApproves the loan amount without consulting other banksProvides the entire loan amount directly to the borrowerCharges a syndication fee from the borrowerQuestion 20 of 25 21. What do participating banks do in the loan syndication process?Determine the syndication feeAppraise the borrower's proposal and make a decisionProvide all the funding for the loanCharge interest on the loanQuestion 21 of 25 22. What is a common practice for lead banks to charge from the borrower in loan syndication?Interest rateLoan processing feeSyndication feeCollateral securityQuestion 22 of 25 23. What is the primary purpose of creating appropriate charges over securities before disbursing a loan?To ensure the borrower's business successTo prevent misutilization of banking systemsTo facilitate customer delightTo safeguard the bank's interests in case of defaultQuestion 23 of 25 24. What is the primary benefit of Straight-Through Processing (STP) in lending?Increased overhead expenditureDecreased business volumeReduction in manual data entry and verificationSlower loan processing timesQuestion 24 of 25 25. Why is synchronizing and integrating ST software with the core banking solution important?To increase overhead expenditureTo create conflicts between different systemsTo facilitate error-free judgment of credit propositionsTo slow down the loan processing timeQuestion 25 of 25 Loading...
