National Institute of

Bank Management
1 

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

 EOM II: TEST: 15-08-2021

Started on Sunday, 15 August 2021, 10:49 AM

State Finished
Completed on Sunday, 15 August 2021, 11:39 AM
Time taken 49 mins 46 secs
Grade 50.50 out of 60.00 (84%)

Question 1 Correct Mark 0.50 out of 0.50

A clean loan is one without a primary security and which

Select one:

a. Does not require any collateral

b. Is risk free due to government guarantee

c. Purpose of loan is clearly specified

d. Has a clear title for asset collateral

Question 2 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 3 Correct Mark 0.50 out of 0.50

The acronym LAMPS stands for

Select one:

a. Large Sized Adivasi Multipurpose Cooperative

Societies

b. Large Multi Purpose Cooperative Societies

c. None of the given options

d. Large Agricultural Multipurpose Cooperative

Societies

Question 4 Correct Mark 0.50 out of 0.50

The commercial operation date for a project marks the

end of

Select one:

a. Operations Phase

b. Economic life

c. Development phase

d. Construction phase

Question 5 Correct Mark 0.50 out of 0.50

The characteristic of a company that a member cannot

be the owner of the company's assets is known as

Select one:

a. Limited liability

b. Separate legal entity

c. Separate property

d. Separate management
Question 6 Correct Mark 0.50 out of 0.50

What does the acronym EPC stands for

Select one:

a. Engineering and Procurement Consultants

b. Engineering, Procurement and Construction

c. Engineering and Project Company

d. Engineering and Purchase Contract

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. 15

c. 25

d. No limits

Question 8 Correct Mark 0.50 out of 0.50

Which one of the following crop season occurs during

monsoon rains

Select one:

a. Kharif

b. Zaid

c. Rabi

d. All the given options

Question 9 Correct Mark 0.50 out of 0.50

Which one of the following committees proposed

adoption of cluster based approach for financing MSME
sector

Select one:

a. Ganguly Committee

b. Chakrabarty Committee

c. Kapur Committee

d. Nayak Committee

Question 10 Correct Mark 0.50 out of 0.50

The acronym PAIS stands for

Select one:

a. Personal Accident Insurance Scheme

b. Personal Asset Insurance Scheme

c. Property Asset Insurance Scheme

d. Personal Accident Insurance Scheme

Question 11 Correct Mark 0.50 out of 0.50

Which one of the following is a external source of finance

for a corporate:
(i) Bank overdraft

(ii) Share issues

(iii) Trade credit

(iv) All the above

Select one:

a. (iv)

b. (iii) only

c. (i) only

d. (ii) only
Question 12 Incorrect Mark 0.00 out of 0.50

Which one of the following will be paid last as per the the
Waterflow Diagram for a project

Select one:

a. Service debt

b. Available for equity

c. Reserves

d. Service interest

Question 13 Incorrect Mark 0.00 out of 0.50

Which one of the following determines the MCLR for a

bank

Select one:

a. Finance Ministry

b. Indian Banks Association

c. Bank itself

d. Reserve Bank of India

Question 14 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. Provide a higher quantum of loan

b. Change from fixed rate to floating rate

c. Charge a lower rate of interest

d. Pay service charge to the originating bank

Question 15 Incorrect Mark 0.00 out of 0.50

Working capital demand loans are usually permitted for

a period of

Select one:

a. 1 month

b. 3 months

c. 12 montghs

d. 6 months

Question 16 Incorrect Mark 0.00 out of 0.50

Which one of the following is not included in the

calculation of MCLR

Select one:

a. Risk premium

b. Marginal cost of borrowings

c. Return on networth

d. Tenor of the loan

Question 17 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. Approved plan by local body

c. Registered sale agreement

d. Map of the property

Question 18 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. Bank loan

b. Hire purchase

c. Leasing

d. Debt collection

Question 19 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. Home loan

b. Gold loan

c. Vehicle loan

d. Credit card

Question 20 Incorrect Mark 0.00 out of 0.50

Which one of the following is needed for extending

guarantee under CGTMSE

Select one:

a. Collateral security for asset financed

b. Primary security of asset financed

c. External risk rating of borrower

d. Third party guarantee for asset financed

Question 21 Correct Mark 1.00 out of 1.00

A bank must invoke the guarantee in respect of credit

facility from date of NPA, and after lock-in period, within
a maximum period of

Select one:

a. 60 days

b. One year

c. 180 days

d. 90 days

Question 22 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 1000 crore

b. Rs 5000 crore

c. Rs 500 crore

d. Rs 2500 crore

Question 23 Correct Mark 1.00 out of 1.00

Bank can disburse part of housing loan to a builder

(i) As per demand made by builder

(ii) As per agreement

(iii) As per stage of completion

(iv) All the above

Select one:

a. (ii) only

b. (i) only

c. (iii) only

d. (iv)
Question 24 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. Hypothecation

b. Pledge

c. Possession

d. Mortgage

Question 25 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. NBFCs onlending to micro-enterprises

b. Group of micro-enterprises

c. Individual micro-enterprises

d. Small banks lending to micro-enterprises

Question 26 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. Home loan

c. Vehicle loan

d. Personal loan
Question 27 Correct Mark 1.00 out of 1.00

In which one of the following retail loans is the primary

security is not the asset purchased with the loan

Select one:

a. All the given options

b. Vehicle loan

c. Gold loan

d. Home loan

Question 28 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. 5%

b. Nil

c. 15%

d. 10%

Question 29 Correct Mark 1.00 out of 1.00

Service fee is paid to the credit guarantee fund trust by

the

Select one:

a. Lending bank

b. There is no service fee

c. Individual borrower

d. Both borrower and bank

Question 30 Correct Mark 1.00 out of 1.00

The acronym CPM related to project management

stands for

Select one:

a. Concession for Project Management

b. Construction Project Management

c. Critical Path Method

d. Contract for Project Monitoring

Question 31 Correct Mark 1.00 out of 1.00

The CGTMSE scheme operating in India operates as a

Select one:

a. Targeted scheme

b. Open scheme

c. Closed scheme

d. Limited scheme

Question 32 Correct Mark 1.00 out of 1.00

The guarantee cover under CGTMSE commences from

the date of

Select one:

a. Sanction of the loan

b. Payment of guarantee fee

c. Approval of guarantee

d. Disbursement of the loan

Question 33 Correct Mark 1.00 out of 1.00

The insurance premium for PAIS 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 34 Incorrect Mark 0.00 out of 1.00

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

Select one:

a. Create a company for a new line of business

b. Insulate the sponsor company from any risks

arising in the project.

c. Bring together project management expertise

d. All the given options

Question 35 Correct Mark 1.00 out of 1.00

The maximum credit score that a borrower can obtain in

Experian Report is

Select one:

a. 750

b. 1250

c. 850

d. 950
Question 36 Correct Mark 1.00 out of 1.00

What are the prepayment charges for a floating rate

home loan

Select one:

a. 0.25% of balance outstanding

b. Nil

c. 0.50% of balance outstanding

d. 2% on balance outstanding

Question 37 Correct Mark 1.00 out of 1.00

What is the maximum guarantee cover available for

micro-enterprises with turnover upto Rs 5 lakh to Rs 50
lakh

Select one:

a. Rs 50.00 lakh

b. Rs 37.5 lakh

c. Rs 22.5 lakh

d. Rs 42.5 lakh

Question 38 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 history of transfer of a property

b. Verifying the current ownership of a property

c. Verifying the status of construction on a property

d. Verifying the existence of a property

Question 39 Incorrect Mark 0.00 out of 1.00

Which of the following insurance is not available with a

KCC

Select one:

a. Health Insurance

b. Accident Insurance

c. Life Insurance

d. Crop Insurance

Question 40 Incorrect Mark 0.00 out of 1.00

Which of the following is not true for a SPV

Select one:

a. It is set as subsidiary of a sponsor company

b. It is a legal entity

c. It does not have any office, employee or

management

d. It has a perpetual life

Question 41 Correct Mark 1.00 out of 1.00

Which of the following is not true for CGTMSE

Select one:

a. No primary security should be obtained by the

bank

b. Cover for both term loan and working capital

credit

c. Loans given by MLIs only are eligible for

guarantee cover

d. Guarantee cover for both fund and non fund

facilities
Question 42 Correct Mark 1.00 out of 1.00

Which one of the following can be considered to be

funded by medium term credit for agriculture

Select one:

a. Seeds

b. Fertilizer

c. Tractor

d. Pump set

Question 43 Correct Mark 1.00 out of 1.00

Which one of the following can be considered to be the

most subordinated category of debt for a project

Select one:

a. Loans from export credit agencies

b. Public sector debt

c. Loan from commercial banks

d. Long term bonds issued by project company

Question 44 Correct Mark 1.00 out of 1.00

Which one of the following education loan can be

classified under priority sector

Select one:

a. Loan upto Rs 20 lakh given to individuals for

higher education abroad

b. Loan upto Rs 100 lakh given to educational

institutions

c. Loan upto Rs 20 lakh given to individuals for

higher education in India

d. Loan upto Rs 200 lakh given to educational

institutions
Question 45 Correct Mark 1.00 out of 1.00

Which one of the following is not a feature available to a

project company in a BOT model

Select one:

a. Operating the facility

b. Owning the facility

c. Transferring the project

d. Raising the required finance

Question 46 Correct Mark 1.00 out of 1.00

Which one of the following is the basis for determining

KCC limit to a farmer

Select one:

a. Farmer's family income

b. Extent of area cultivated and crop

c. Amount of tangible collateral

d. Net worth of the farmer

Question 47 Correct Mark 1.00 out of 1.00

Which one of the following is the definition of an small

enterprise in the manufacturing sector under the
MSMED Act 2006

Select one:

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

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

c. More than Rs 25 lakhs

d. More than Rs 10 lakhs

Question 48 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. Leasing

b. Trade credit

c. Hire purchase

d. Mortgage

Question 49 Correct Mark 1.00 out of 1.00

Which one of the following plants is a perennial crop

Select one:

a. Wheat

b. Papaya

c. Pulses

d. Rice

Question 50 Correct Mark 1.00 out of 1.00

Which one of the following risk is not related to

construction phase of a project

Select one:

a. Ancillary supplies

b. Time overrun

c. Cost overrun

d. Offtake risk
Question 51 Incorrect Mark 0.00 out of 2.00

Banks arrive at eligibility for a loan based on

Select one:

a. Equated Monthly Income to Gross take home

salary

b. Equated Monthly Income to Net take home

salary

c. Equated Monthly Installment to Gross take home

salary

d. Equated Monthly Installment to Net take home

salary

Question 52 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 2.00 lakh

b. Rs 3.00 lakh

c. Rs 5.00 lakh

d. Rs 1.00 lakh

Question 53 Incorrect Mark 0.00 out of 2.00

The Title Deed is different from a Sale Agreement in

regards of

Select one:

a. Registration with Land Registry Office

b. All the given options

c. Counter parties related to the property involved

d. Transfer of ownership of the asset

Question 54 Correct Mark 2.00 out of 2.00

Partial credit enhancement provided to corporates is

essentially a type of

Select one:

a. Bridge loan

b. Working capital loan

c. Contingent line of credit

d. Term loan

Question 55 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 right for charge and equal amount

b. None of the above

c. Equal rights for charge and proportionate

amount

d. Equal right for charge

Question 56 Correct Mark 2.00 out of 2.00

In the take-out method of providing finance, a loan can

be taken out of books of a financing bank by another
bank

Select one:

a. After commissioning of the project

b. After payback of the project

c. After breakeven of the project

d. After a pre fixed period

Question 57 Correct Mark 2.00 out of 2.00

In respect of CGTMSE no collateral and no third party

guarantee for fund based and non fund based credit
facilities up to

Select one:

a. Rs 50 lakh

b. Rs 5 lakh

c. Rs 200 lakh

d. Rs 10 lakh

Question 58 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 7.5 crore

b. Rs 5 crore

c. Rs 10 crore

d. Rs 2 crore

Question 59 Correct Mark 2.00 out of 2.00

According to RBI, upto what percentage of working

capital limits above Rs.250 crore can be sanctioned as
cash credit

Select one:

a. 100%

b. 80%

c. 50%

d. 25%
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 Expression of Interest

b. Request for Qualification

c. Bid submission

d. Request for Proposal