Credit:

1. The limitation period of loan covered by a registered mortgage deed is -

A. Three years
B. Twelve years
C. Fifteen years
D. Twenty years
2. Which of the following is the weakest method of charging security?
A. A Pledge
B. Mortgage
C. Hypothecation
D. Assignment
3. Transfer of possession of physical security is essential in the case of -
A. Lien
B. Mortgage
C. Pledge
D. Both (a) and (C)
4. Which of the following is not an intangible asset?
A. Goodwill
B. Copyright
C. Land
D. Trademark
5. In case of hypothecation, the banker has -
A. The possession of goods
B. Right to sell the goods
C. A specific interest in the goods
D. None of the above rights
6. Pledge can be created by -
A. Actual delivery
B. Constructive delivery
C. Symbolic delivery
D. Any of the above methods.
7. The Letter of Continuity should be taken in the case of -
A. Advances to companies
B. Overdraft or Cash Credit Account
C. Time barred advances
D. Accounts of the deceased borrowers
8. A floating charge means –
A. a charge of the assets of a company which is being floated
B. a charge on the shares of a company
C. a charge on the current assets of the company which are constantly changing
D. None of the above
9. Principles of sound lending mean:
 A. Safety, Security, Liquidity & Profitability of the fund
B. Security, Safety, Purchase, Spread & National Interest
C. Security, Safety, Purchase, Person & Capital
D. None of the above.
10. Bank Conduct Classification of Loan Activities as per BRPD circular
A. Monthly
B. Quarterly
C. Half yearly
D. Yearly
11. What is the percentage of provision kept for Doubtful Loans and Advances?
A. 5% of base for provision
B. 20% of base for provision
C. 50% of base for provision
D. 100% of base for provision
12. Calculate the eligible security of the Land and Building Mortgaged with the Bank.
A. 100% of market value
B. 75% of market value
C. Maximum 50% of market value
D. Maximum 50% of market forced sell value
13. Under what section of Negotiable Instrument Act we file criminal case?
A. Section 12
B. Section 112
C. Section 138
D. Section 133
14. Which one is not the irregularities in case of approving Loans and Advances
A. Over or Under Invoicing
B. Inadequate Security Stipulation
C. Undue Influence
D. Estimation of the cost of the project and means of finance
15. Which of the following is termed as earning asset
A. Deposit/Borrowing
B. Cash and Liquid Reserve
C. Investment
D. Capital
16. The pattern of the operating cycle follows __________.
A. Cash, procurement of RM, Work in process, Stock of FGs, Receivables, Cash
B. Procurement of RM, Work in process, Stock of FGs, Receivables, Cash
C. Cash, Work in process, procurement of RM, Receivables, Stock of FGs,
D. Cash, procurement of RM, Stock of FGs, Work in process, Receivables
17. At least how many years financial is required to prepare CRG?
A. 1 year
B. 2 years
 C. 3 years
D. 5 years
18. The Primary Security of Overdraft (work order) is
A. Mortgage of Land & Building
B. Hypothecation of Stock
C. Personal Guarantee of the Proprietors/Directors
D. Assignment of Bill.
19. For collateral located outside Pourashava, the coverage should be:
A. 1.25 times of the proposed limit
B. 1.80 times of the proposed limit
C. 1.40 times of the proposed limit
D. 1.75 times of the proposed limit
20. What does ‘SPC’ stand for:
A. Sustainable Property Certificate
B. Security Perfection Certificate
C. Both (a) & (b)
D. None of the above.
21. What is the basic difference between OD (Gen) and CC (Hypo)?
A. Stock
B. Security
C. Capacity
D. None of the above
22. Current Ratio is
A. Quick assets / total liability
B. Current assets /current liability
C. External Equities / Internal equities
D. All of the above
23. The right of set – off is nothing but a ______.
A. right to sell.
B. right to retain.
C. right to combine
D. right to appropriate
24. Which type of Advance can be repayment without any specific date?
A. LTR.
B. LIM.
C. CC(Hypo).
D. OAP
25. CC (H) Drawing determined by?
A. Limit
B. Drawing Power
C. Limit or Drawing Power whichever is lower
D. Limit or Drawing Power whichever is higher
26. What is the rate of provision on Off-Balance Sheet exposures?
A. 0.25% on total exposure
B. 1.00% after deducting cash margin/eligible collateral
C. 1.00% on total exposure
D. 2.00% on total exposure
27. Liquidity Ratio indicates to meet future-
A. Short term financial obligation;
B. Long term financial obligation;
C. Both Short and Long term financial obligation;
D. None of the above.
28. Asset Utilization (Activity) Ratio indicates to meet-
A. Short term financial obligation;
B. Long term financial obligation;
C. Working Capital obligation;
D. None of the above.
29. Debt Service Coverage Ratio indicates to meet-
A. Interest Servicing obligation;
B. Principal Servicing obligation;
C. Both Interest & Principal Servicing obligation;
D. None of the above.
30. Interest Coverage Ratio indicates to meet-
A. Interest Servicing obligation;
B. Principal Servicing obligation;
C. Both Interest & Principal Servicing obligation;
D. None of the above.
31. Which one of the following is true about loan write-off?
A. 100 percent provision is required before write-off
B. It is done for cleaning balance sheet
C. Loan amounting taka upto 50,000 can be written-off without filing suit
D. All of these
32. Which of the following is true for base for provision calculation?
A. Outstanding loan - balance of interest suspense
B. Outstanding loan - balance of interest suspense - value of eligible securities
C. Outstanding loan - value of eligible securities
D. None of these
33. Economic aspect of a project deals with-
A. Private cost and benefit
B. Central bank's cost and benefit
C. Social cost and benefit
D. Direct foreign investors' cost and benefit
34. Which of the following is known as horizontal analysis?
A. Common size analysis
 B. Scenario Analysis
C. Ratio analysis
D. Trend Analysis
35. Line of credit is term frequently used in business terminology .it refers to-
A. The use of credit facility in the operational activities
B. The maximum amount of loan an organization can avail
C. The basis on which credit can be utilized
D. The limits set for acquiring credit
36. Ratios are mathematical indicators which are calculated by comparing two values, financial
ratios help in-
A. Estimating the company’s gross profit
B. Understanding the financial workings of the company
C. Analysing the financial statements
D. Understanding the internal working structure in the company.
37. Which of the following is the probability that market interest rates will change and cause it to
have lower profits or a decrease in the value of its equity?
A. Credit risk
B. Market risk
C. Strategic risk
D. Interest rate risk
38 Which of the following is used as the highest layers in credit approval process?
A. Source of cash flows
B. Type of borrower
C. Value and type of collateral
D. Amount and type of claim
39. Which of the following is an important tool in monitoring and controlling credit risk?
A. Holistic rating
B. Interval rating
C. Internal risk rating
D. Analytical rating
40. Which of the following are to be followed by commercial banks to risk management?
A. Basel I norms
B. Basel II norms
C. Basel III norms
D. Solvency II norms
41. What is factoring?
A. An easy way of rising capital from a factoring company by small business
B. Selling of account receivables on a contract basis for cash payment to factor before it is
due.
C. An arrangement for raising short term money against prepaid expenses
D. A method of discounting a loan term bills.
42. Which one of the following is the ratio of the loan principal to the appraised value?
A. Combined loan to value (CL IV) ratio
B. Loan to value ratio
C. Mortgage loan
D. Statutory liquidity ratio
43. ALM approach emphasize more on –
A. Asset management
B. Liquidity management
C. Liability management
D. Coordinated approach to assets and liabilities
44. As regard ratings and aggregate quantitative score in ICRR, which of the following is not true?
A. Aggregate score of 80 or greater is excellent.
B. Aggregate score of 70 or greater but less than 80 is good.
C. Aggregate score of 60 or greater but less than 75 is marginal.
D. Aggregate score less than 60 is unacceptable.
45. IRR is the discount rate is which –
A. NPV = 0
B. NPV ≠ 0
C. NPV ≤ 0
D. NPV ≥ 0
46. Restrictions on the respite of loans have been imposed under which section of the Bank
Company Act, 1991 (as amended in 2013)
A. Section 14A
B. Section 27
C. Section 26A
D. Section 28
47. Quantitative Credit controls do not include-
A. Bank Rate
B. CRR
C. BB Directives
D. Open market operations
48. The primary objectives of Nationalizations of banks was-
A. Improving credit facilities
B. Improving security of deposits
C. Financing in Industries
D. Consolidating the economy
49. Pricing of the Loan is set by?
A. CRMD
B. Corporate Banking Division
C. ALCO
D. General Banking Division
50. Maximum what % of current remaining time to maturity of a term loan may be extended?
A. 35 %
B. 25 %
C. 10 %
D. None
1 2 3 4 5 6 7 8 9 10
B C D C C B B C A B
11 12 13 14 15 16 17 18 19 20
C C C D C A C D D B
21 22 23 24 25 26 27 28 29 30
A B C C C C A C C A
31 32 33 34 35 36 37 38 39 40
D B C D B C D B C B
41 42 43 44 45 46 47 48 49 50
B B D C A D C A C B