Rates of interest to be charged against various forms of advances are determined by:ģ6. (C) Target for business, deposit, advance and profitģ5. (A) Target for deposit, advance and income Performance of Budget of a branch includes A Bank can sanction loan to a single party upto a maximum amount ofģ4. Provision for Bad debts is made out ofģ3. (C) Loans and advances which are considered as lossģ2. (B) Loans and advances the recovery of which is uncertain and against which provision is to be made (A) Loans and advances which are overdue and sticky Pledge and hypothecation are related to movable properties and mortgage relates to immovable properties. Drawing power in a CC account is determined within sanctioned limit on the basis ofģ0. Pledge is one of the methods of charging securities against loans and advances and is defined in:Ģ9. Bank Credit includes all loans and advances (Cash Credit, Overdraft, PAD/LIM) and also bills purchased and discounted:Ģ8. (C) Executed properly, correctly stamped, undated & blankĢ7. (A) Properly executed by the competent parties, correctly stamped, Registered with competent authority when necessary and not barred by Law of Limitation (B) Executed by anybody and correctly stamped (B) Loan, Cash Credit, Overdraft, Bill Purchased & discounting Advances are traditionally divided into following categories: (C) Security, Safety, Purchase, Person & CapitalĢ5. (B) Security, Safety, Purchase, Spread & National Interest (A) Safety, Security, Liquidity & Profitability of the fund (C) The INSOLVENCY (Bankruptcy) Act 1997 only (A) ARTHA RIN ADALAT AIN 1990 and the INSOLVENCY (Bankruptcy) Act 1997 For recovery of stuck-up loans and Advances, Banks can take legal action under: Pledge and Hypothecation relate to Movable property and Mortgage relates to Immovable propertyĢ3. (B) Loans, Overdrafts, Cash Credits and all other advances covered by eligible / approved securities.Ģ2. The following advances are secured advances: Advances are of two types viz: “Secured” and “Unsecured”. (C) Pledge, Hypothecation, Mortgage and set-offĢ1. (B) Pledge, Hypothecation, Mortgage, Lien and Assignment (A) Registration, set-off, possession, and power of Attorney The common modes of creation of charge over the securities against loans and advances are: (C) Drawing power is fixed but limit is variableĢ0. (B) Limit is fixed but the drawing power is variable In case of ‘Cash Credit’ advance: (A) Both the limit and the drawing power are variable Banker’s right to cancel advance at any time with or without intimation is acknowledged by the borrower by signing:ġ9. (C) Yes, minor can borrow himself and bind himself with the bankġ8. (B) No, guarantee is not enforceable as minor is the borrower Can a minor be sanctioned an overdraft secured by guarantee: (C) The shares are fully paid and quoted in stock exchange.ĩ. (B) The shares are fully paid but not quoted in stock exchange. (A) The shares are partly paid because these are safe While giving loans against security of shares, one of the points a bank ensures that: (C) Can be brought under pledge if customers consents.Ĩ. (B) Can never be brought under pledge since it is violation of contract. (A) Be brought under pledge by a bank, if desired. Goods as security under Hypothecation can: (C) No, unless necessary documents are signed by both the persons names of whom are appearing on the FDR.ħ. (B) No, because FDR is in the names of two persons (A) No, because either or survivor clause bars the bank Will you give loan against a Fixed Deposit Receipt jointly held by two persons with the instructions: payable to either or survivor? Mortgage, a mode of charging security, has been defined in:Ħ. (C) A bailment of goods as security for payment of debt or performance of a promise.ĥ. (B) The right to retain a particular commodity in respect of which the debt arose. (A) A charge against property for an amount of debt where neither ownership nor possession is passed on to the creditor. When a manufacturer wants to borrow money on the security of raw materials or stock-inprocess which are in the process of being manufactured into finished products, bank prefers:Ĥ. (C) Both property and goods and securities.ģ. (A) Goods and securities until debt is satisfied Lien, one of the modes of charging securities, is the right to retain: (C) Overdraft is allowed on current account whereas cash credit is a separate account.Ģ. (A) Overdraft is always subject to limit whereas cash credit has no limit (B) Overdraft is allowed on any kinds of account whereas cash credit is allowed on current account. One of the differences between overdraft and cash credit is:
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