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06 Hints Class Quiz Securities and Charges
06 Hints Class Quiz Securities and Charges
06 Hints Class Quiz Securities and Charges
1. A partnership firm has been allowed a cash credit pledge limit of Rs.5 lac for which it
maintains stocks of Rs.8 lac but obtains insurance for Rs.6 lac. A hire has occurred
due to which stock worth Rs.1 lac have been damaged. What is the amount of claim
which the insurance company would settle for this loss:
a. Rs.1 lac
b. Rs.80000
c. Rs.75000
d. Rs.50000
e. Rs.25000
2. Your branch has sanctioned a cash credit limit of Rs.12 lac to a trading firm with 40
% margin against the goods in trade. To avail this limit fully, what should be amount
of stocks with the party:
a. Rs.20 lac
b. Rs.18 lac
c. Rs.16 lac
d. Rs.14 lac
e. Rs.12 lac
3. When banks sanction credit facilities, they insist on margin from the borrowers also,
which means:
a: Market value of security less amount of loan is known as margin
b: Contribution of the borrower from long term sources in the business
c: Current assets minus current liabilities
d: a to b
e: a to c
4. Margin maintained by the bank on the securities depends on:
a. The price fluctuations of security
b. Credit reputation of the party
c. RBI/banks own guidelines for certain securities
d. All the above
5. In what respect, a charge of hypothecation is different from pledge. The goods are:
a. In possession of bank but ownership with the borrower
b. Both the possession and ownership rest with borrower
c. Neither the possession nor the ownership is with the bank
d. Both (b) and (c) above
e. There is no difference and both are similar
6.
a. Hand over the possession of the security when asked by the bank
1
b. The bank according to its will, can convert hypothecation into pledge at any time by giving
notice
c. Hypothecated goods are with the borrower as a trustee for the bank
d. A and b
e. a to c
7. Through a charge on assets:
a. The banker becomes the owner of the security
b. The bank gets certain rights in the security
c. Security is transferred in favour of the bank
d. Rights can be enforced without court intervention
e. None of the above
8. After the conversion of hypothecation into pledge the bank will have the same right
as that of:
a. Pledgee
b. Mortgagee
c. Pledger
d. Hypothecatee
e. Hypothecator
9. Which of the following mortgages is not required to be registered with Registrar of
Assurances?
a. Equitable mortgage
b. Simple mortgage
c. Registered mortgage
d. Legal mortgage
e. All of the above
10. On which among the following, the charge of assignment cannot be created
a. Land and building
b. Plant and machinery
c. Claim on a Debtor
d.
a and b above