Exercise Quiz & Test – 26
1. Which of the following is NOT a correct statement?
a. Interest rates on unsecured loans is higher than the secured loans
b. Mortgage Loan is a kind of secured loan
c. Credit Card is a kind of secured loan
d. Unsecured loans are given out on the basis of credit worthiness of the borrowers
2. “No Risk, No reward”. This quote is most closely associated with__?
a. Risk Diversification
b. Collateral Damage
c. Risk-return trade-off
d. None of the above
3. In which among the following accounts, no cheque book is issued?
a. Minor Account
b. Joint Account
c. Illiterate Account
d. Non Resident Account
4. What is the priority sector loan target has been given to the foreign banks operating in India in terms of agriculture loans?
d. No specific target
5. Which among the following are often described as Double Financial Repression for Banks in India?
a. Priority Sector Loans and Cash Reserve Ratio
b. Priority Sector Loans and Statutory Liquidity Ratio
c. Cash Reserve Ratio and Statutory Liquidity Ratio
d. Statutory Liquidity Ratio and Margin Requirements
6. In banking language, which among the following is called Contingent Liability of the banks?
a. Fund based lending
b. Non fund based lending
c. Priority sector lending
d. Statutory pre-emptions
7. In terms of agricultural loans in India, the short term credit refers to the loans made for a period less than __:
a. 1 year
b. 15 Months
c. 18 Months
d. 24 Months
8. To call a loan NPA, the interest or instalment of principal should remain overdue for a minimum period of more than __?
a. 60 Days
b. 90 Days
c. 120 Days
d. 180 Days
9. What is the loan limit for education under Priority Sector Lending (PSL) for studying in India and abroad respectively?
a. Rs. 20 lakh, Rs. 10 Lakh
b. Rs. 10 lakh, Rs. 20 Lakh
c. Rs. 25 lakh, Rs. 25 Lakh
d. Rs. 20 lakh, Rs. 25 Lakh
10. Who monitors Priority Sector Lending (PSL) in commercial banks?
a. Reserve Bank of India (RBI)
b. Small Industries Development Bank of India (SIDBI)
c. National Bank for Agriculture and Rural Development (NABARD)
d. Government of India (GOI)