National Institute of

Bank Management

Dashboard  My courses  CRD MGMT  MODULE II : CREDIT OPERATIONS

 EOM II: TEST: 07-01-2023

Started on Saturday, 7 January 2023, 1:16 PM

State Finished
Completed on Saturday, 7 January 2023, 1:46 PM
Time taken 30 mins 14 secs
Grade 59.00 out of 60.00 (98%)

Question 1 Correct Mark 0.50 out of 0.50

A clean loan is one which is without primary security and

_____________ 

Select one:

a. Does not require any collateral

b. Purpose of loan is clearly specified

c. Is risk free due to government guarantee

d. Has a clear title for asset collateral

Question 2 Correct Mark 0.50 out of 0.50

Bank loans to PACS and LAMPS are recognized as

Select one:

a. Farm credit

b. None of the given options

c. Ancillary activities

d. Agriculture infrastructure

Question 3 Correct Mark 0.50 out of 0.50

Banks are mandated not to accept collateral security from

micro and small enterprises for loans up to

Select one:

a. Rs 10.0 lakhs

b. Rs 5.0 lakhs

c. Rs 20.0 lakhs

d. Rs 15.0 lakhs

Question 4 Correct Mark 0.50 out of 0.50

Financial closure for a project marks the end of its

Select one:

a. Construction phase

b. Economic life

c. Operations Phase

d. Development phase
Question 5 Correct Mark 0.50 out of 0.50

For taking over a home loan, a bank must ensure that

Select one:

a. The loan is provided by another bank only

b. Borrower is a deposit customer of the bank

c. The loan is a standard asset

d. Borrower is residing in the property

Question 6 Correct Mark 0.50 out of 0.50

Which one of the following determines the MCLR for a bank?

Select one:

a. Bank itself

b. Finance Ministry

c. Indian Banks Association (IBA)

d. Reserve Bank of India

Question 7 Correct Mark 0.50 out of 0.50

The number of debits in a month in KCC is limited to

Select one:

a. 20

b. No limits

c. 15

d. 25
Question 8 Correct Mark 0.50 out of 0.50

What does the acronym EPC stands for

Select one:

a. Engineering and Project Company

b. Engineering, Procurement and Construction

c. Engineering and Procurement Consultants

d. Engineering and Purchase Contract

Question 9 Correct Mark 0.50 out of 0.50

Which one amongst the following is not a determinant in the

calculation of MCLR

Select one:

a. Negative carry on CRR

b. Average cost of funds

c. Operating cost

d. Tenor premium

Question 10 Correct Mark 0.50 out of 0.50

Which one of the crop season is based on monsoon rains

Select one:

a. Rabi

b. All the given options

c. Zaid

d. Kharif
Question 11 Correct Mark 0.50 out of 0.50

Which one of the following does not fall under long term
agriculture credit from banks

Select one:

a. Purchase of fertilizers

b. Reclamation of land

c. Sinking of borewell

d. Purchase of pump set

Question 12 Correct Mark 0.50 out of 0.50

Which one of the following is a external source of finance

involves ownership of the company

Select one:

a. Government grants

b. Bank overdraft

c. Trade credit

d. Share issues

Question 13 Correct Mark 0.50 out of 0.50

Which one of the following is a internal source of finance for a

corporate

Select one:

a. Hire purchase

b. Bank loan

c. Leasing

d. Debt collection
Question 14 Correct Mark 0.50 out of 0.50

Which one of the following is necessary for banks in order to

offer a clean loan

Select one:

a. Guarantor

b. Primary security

c. Purpose to be clearly specified

d. Secondary security

Question 15 Correct Mark 0.50 out of 0.50

Which one of the following is needed for extending guarantee

under CGTMSE:

Select one:

a. External risk rating of borrower

b. Third party guarantee for asset financed

c. Primary security of asset financed

d. Collateral security for asset financed

Question 16 Correct Mark 0.50 out of 0.50

Which one of the following is not required for the appraisal of a

housing property

Select one:

a. Title deed

b. Map of the property

c. Approved plan by local body

d. Registered sale agreement

Question 17 Correct Mark 0.50 out of 0.50

Which one of the following must be the last repayment as per

the the Waterflow Diagram for a project

Select one:

a. Reserves

b. Service interest

c. Available for shareholders

d. Service debt

Question 18 Correct Mark 0.50 out of 0.50

Which one of the following retail loans does not require

disclosure of income by borrower

Select one:

a. Credit card

b. Home loan

c. Vehicle loan

d. Gold loan

Question 19 Correct Mark 0.50 out of 0.50

Which one of the following would a bank not do while taking

over a home loan

Select one:

a. Change from fixed rate to floating rate

b. Provide a higher quantum of loan

c. Pay service charge to the originating bank

d. Charge a lower rate of interest

Question 20 Correct Mark 0.50 out of 0.50

Working capital demand loans are usually provided for a period

of

Select one:

a. 9 months

b. 3 months

c. 6 months

d. 12 months

Question 21 Correct Mark 1.00 out of 1.00

According to RBI guidelines, what is the minimum of

infrastructure loan eligible for takeout financing 

Select one:

a. Rs 5000 crore

b. Rs 2500 crore

c. Rs 1000 crore

d. Rs 500 crore

Question 22 Correct Mark 1.00 out of 1.00

Bank can disburse part of housing loan to a builder based on

Select one:

a. As per demand made by builder

b. As per agreement

c. As per stage of completion

d. Any of the given options

Question 23 Correct Mark 1.00 out of 1.00

Creation of charge against the security of movable assets,

wherein the possession of the security remains with the
borrower itself is known as 

Select one:

a. Mortgage

b. Possession

c. Pledge

d. Hypothecation

Question 24 Correct Mark 1.00 out of 1.00

For a vehicle loan where the asset is hypothecated to a bank,

the bank establishes lien with

Select one:

a. The dealer

b. The transport authorities

c. The borrower

d. The guarantor

Question 25 Correct Mark 1.00 out of 1.00

For arriving at the crop loan limit under KCC, what is the
additional increase over cost of cultivation allowed for the
purpose of farm maintenance

Select one:

a. 10%

b. 20%

c. 25%

d. 15%
Question 26 Correct Mark 1.00 out of 1.00

For which one of the following is the cover under CGTMSE is

not available: (i) Self Help Groups (ii) Retail traders (iii)
Educational institutions (iv) All the above

Select one:

a. (iii) only

b. (iv) only

c. (i) only

d. (ii) only

Question 27 Correct Mark 1.00 out of 1.00

In order to become eligible for a bank loan, the minimum credit

score that a borrower must obtain in CIBIL Report is

Select one:

a. 750

b. 450

c. 500

d. 600

Question 28 Correct Mark 1.00 out of 1.00

In the intermediary model, a bank will take credit guarantee

under CGTMSE for loans given to

Select one:

a. Small banks lending to micro-enterprises

b. Individual micro-enterprises

c. NBFCs onlending to micro-enterprises

d. Group of micro-enterprises
Question 29 Correct Mark 1.00 out of 1.00

In which one of the following cropping pattern, one crop

continues to be on the field throughout the year

Select one:

a. Mono cropping

b. All the given options

c. Perennial cropping

d. Annual cropping

Question 30 Correct Mark 1.00 out of 1.00

In which one of the following retail loans can the borrower pay
the entire interest and principal at the end of the tenure

Select one:

a. Gold loan

b. Personal loan

c. Vehicle loan

d. Home loan

Question 31 Correct Mark 1.00 out of 1.00

Margin for education loan of greater than Rs 4 lacs for study in

India is

Select one:

a. 15%

b. 10%

c. Nil

d. 5%
Question 32 Correct Mark 1.00 out of 1.00

The acronym PERT for a project relates to

Select one:

a. Project Ownership

b. Project Finance

c. Project Revenues

d. Project Management

Question 33 Correct Mark 1.00 out of 1.00

The annual service fee to be paid to the credit guarantee fund

trust for a loan size upto Rs 5.0 lakh is

Select one:

a. 1.25%

b. 0.75%

c. 0.50%

d. 1.00%

Question 34 Correct Mark 1.00 out of 1.00

The CGTMSE scheme is a

Select one:

a. Open scheme

b. Closed scheme

c. Targeted scheme

d. Limited scheme
Question 35 Correct Mark 1.00 out of 1.00

The guarantee cover under CGTMSE commences from the

date of

Select one:

a. Disbursement of the loan

b. Approval of guarantee

c. Sanction of the loan

d. Payment of guarantee fee

Question 36 Correct Mark 1.00 out of 1.00

The insurance premium under KCC is shared between the

bank and borrower in the ratio of

Select one:

a. 1:1

b. 1:2

c. 2:1

d. 1:3

Question 37 Correct Mark 1.00 out of 1.00

The JLA scheme is applicable for lending to a single borrower

with aggregate credit limits

Select one:

a. Rs 150 crores and above

b. Rs 250 crores and above

c. Rs 200 crores and above

d. Rs 100 crores and above

Question 38 Correct Mark 1.00 out of 1.00

The lock-in-period from either the date of last disbursement of

loan or the date of the credit guarantee cover coming into force
is

Select one:

a. 6 months

b. 12 months

c. 3 months

d. 18 months

Question 39 Correct Mark 1.00 out of 1.00

The main purpose of setting up an SPV for a project is

Select one:

a. Insulate the sponsor company from any risks arising in

the project.

b. Create a company for a new line of business

c. Bring together project management expertise

d. All the given options

Question 40 Correct Mark 1.00 out of 1.00

What is the maximum guarantee cover available for micro-

enterprises with loans above Rs 50 lakh and upto Rs 200 lakh

Select one:

a. Rs 150 lakh

b. Rs 100 lakh

c. Rs 50 lakh

d. Rs 82.5 lakh
Question 41 Correct Mark 1.00 out of 1.00

Which of the following information is not the purpose of a

Search Report

Select one:

a. Verifying the existence of a property

b. Verifying the history of transfer of a property

c. Verifying the current ownership of a property

d. Verifying the status of construction on a property

Question 42 Correct Mark 1.00 out of 1.00

Which of the following insurance is not available with a KCC

Select one:

a. Accident Insurance

b. Life Insurance

c. Crop Insurance

d. Health Insurance

Question 43 Correct Mark 1.00 out of 1.00

Which one of the following can be considered to be the senior

most claimant of cash flows in a project

Select one:

a. Subscribers of long term bond

b. Loans from export credit agencies

c. Commercial banks lending to the project

d. Debt taken from public sector

Question 44 Correct Mark 1.00 out of 1.00

Which one of the following is considered to be an allied activity

for the purpose of bank credit to agriculture

Select one:

a. Cold storage development

b. Watershed development

c. Vermi-composting

d. Dairy farming

Question 45 Correct Mark 1.00 out of 1.00

Which one of the following is not included in the concession

agreement for a project

Select one:

a. Ownership

b. Operations

c. Development

d. Construction

Question 46 Correct Mark 1.00 out of 1.00

Which one of the following is not likely to impact the credit

score of a borrower

Select one:

a. Credit utilization rate

b. Annual income

c. Payment history

d. Number of inquiries
Question 47 Correct Mark 1.00 out of 1.00

Which one of the following is the definition, in terms of

investment in equipment, of medium enterprise in service
sector under the MSMED Act 2006

Select one:

a. More than Rs 10 lakhs and upto Rs 200 lakhs

b. More than Rs 200 lakhs up to Rs 500 lakhs

c. More than Rs 500 lakhs up to Rs 1,000 lakhs

d. More than Rs 25 lakhs and upto Rs 500 lakhs

Question 48 Correct Mark 1.00 out of 1.00

Which one of the following is the difference between a project

company in the BOOT model and another in BOT model

Select one:

a. Raising the required finance

b. Transferring the project

c. Ownership of the facility

d. Operating the facility

Question 49 Correct Mark 1.00 out of 1.00

Which one of the following mode of finance is most closer to

renting a asset

Select one:

a. Mortgage

b. Hire purchase

c. Leasing

d. Trade credit
Question 50 Incorrect Mark 0.00 out of 1.00

Which one of the following types of risk does the CPM method
aim to manage

Select one:

a. Cost overrun

b. Ancillary supplies

c. Offtake risk

d. Time overrun

Question 51 Correct Mark 2.00 out of 2.00

According to Nayak Committee method, working capital credit

limits may be computed as minimum 20% of their estimated
annual turnover for SSI units whose credit limit is upto

Select one:

a. Rs 2 crore

b. Rs 5 crore

c. Rs 7.5 crore

d. Rs 10 crore

Question 52 Correct Mark 2.00 out of 2.00

According to RBI, beyond what amount of working capital limit,

only a part of the loan can be availed as cash credit

Select one:

a. Rs 25 crore

b. Rs 10 crore

c. Rs 20 crore

d. Rs 5 crore
Question 53 Correct Mark 2.00 out of 2.00

In respect of CGTMSE, no collateral or third party guarantee is

required for a single borrower having fund and non-fund based
facilities from Scheduled Commercial Banks, up to

Select one:

a. Rs 10 lakh

b. Rs 200 lakh

c. Rs 5 lakh

d. Rs 50 lakh

Question 54 Correct Mark 2.00 out of 2.00

Pari-passu charge in regards to the assets of a borrowing

company means

Select one:

a. Equal rights for charge

b. None of the given options

c. Equal rights for charge and proportionate amount

d. Equal rights for charge and equal amount

Question 55 Correct Mark 2.00 out of 2.00

Partial credit enhancement for corporate borrowers is

essentially a

Select one:

a. Working capital loan

b. Contingent line of credit

c. Bridge loan

d. Term loan
Question 56 Correct Mark 2.00 out of 2.00

The Title Deed is different from a Sale Agreement in regards of

Select one:

a. Counter parties related to the property involved

b. Registration with Land Registry Office

c. All the given options

d. Transfer of ownership of the asset

Question 57 Correct Mark 2.00 out of 2.00

Upto what level of KCC limit are banks allowed to waive

margin/security requirements.

Select one:

a. Rs 1.00 lakh

b. Rs 5.00 lakh

c. Rs 2.00 lakh

d. Rs 3.00 lakh

Question 58 Correct Mark 2.00 out of 2.00

Which of the following is not true about take out financing for a
project

Select one:

a. It can be obtained after project has begun commercial

operations

b. It can be obtained after construction of the project

c. It is a long term source of finance

d. It enables management of asset liability tenor mismatch

Question 59 Correct Mark 2.00 out of 2.00

Which one of the following is the correct representative for

FOIR

Select one:

a. Equated Monthly Installment to Net take home salary

b. Equated Monthly Installment to Gross take home salary

c. Equated Monthly Income to Net take home salary

d. Equated Monthly Income to Gross take home salary

Question 60 Correct Mark 2.00 out of 2.00

Which one of the following is the first step in the tendering

process for a project

Select one:

a. Request for Proposal

b. Bid submission

c. Request for Expression of Interest

d. Request for Qualification