Loans & Banking Concepts

Which of the following is a source of lending for banks?

• Equity capital

• Deposits from the public

• Retained earnings

• Sale of fixed assets

The principle of lending which emphasizes repaying ability is known as:

• Liquidity

• Profitability

• Safety

• Diversification

A loan given against the security of movable property is called a:

• Hypothecation

• Mortgage

• Pledge

• Lease

Which type of loan is granted for a short period usually up to 1 year?

• Term Loan

• Overdraft

• Demand Loan

• Personal Loan

When interest and/or installment of principal remains overdue for more than 90 days, the asset is classified as:

• Standard Asset

• Sub-standard Asset

• Doubtful Asset

• Non-Performing Asset (NPA)

Which of the following loans is not typically considered a priority sector loan?

• Agriculture loan

• Education loan

• Housing loan

• Foreign currency loan

The rate at which the RBI lends to commercial banks is called:

• Reverse Repo Rate

• Statutory Liquidity Ratio

• Repo Rate

• Bank Rate

Provisioning is made in the bank's books for:

• Administrative expenses

• Performing assets

• Non-performing assets

• Asset appreciation

The reverse repo rate is:

• The rate at which banks borrow from RBI

• The rate at which RBI borrows from banks

• The rate at which banks lend to customers

• None of the above

A mortgage is a security created on:

• Movable property

• Immovable property

• Bank deposit

• Bonds and shares