Banking Question(Part-3)

Credit Administration and Documentation

                                                                                                          

   A. Tick the correct answer

1.  Principle of Internal Control in Credit will be justify by:

  a)  Relationship Manager Concept      b) Segregation of duty on analysis and implementation

  c)  Dual signature in the offer letter

         2.  Loss From the defective documentation of credit is defined as:

  a)   Market Risk       b)   Credit Risk           c) Operational Risk

3.     In case of working capital loan which collateral you would prefer?

  a)    Plant and Machinery       b) Receivables      c) Shares and debentures

4.     Which is least important for appraisal of the collateral?

  a)    Valuation                b)   Marketability       c)  Ownership

5.     Plant and Machinery is:

a.                      Hypothecated           b)  Registered          c)    Mortgaged                                                                                                                                                                                 

 B. True or False

1. Working capital loan provided against the assignment of receivables will have the risk of multiple Banking.

a) True                  b)  False

2.   Likely legal problem in land and building can be envisaged by the duration of time period of the title    

       Deed      

 a)True                  b)  False

Answer

 1.          B

2.          C

3.          B

4.          C

5.          B

1.          True

2.          True

 Remittance

A. Tick the correct answer:

1.    Nostro account means:

a)    Account of our bank with other banks      b) Account of other bank with our bank

2.    Which of the following card is used for remittance? 

            

a)    Debit card     b) Credit card      c) Both      d) None

3.    Test Key arrangement means: 

            

a)    Method of coding the message      b) method of decoding the message

c) Both              d) None

4.    A Bank Draft can be issued by

a) Bank        b) Any person       c) Both 

5.  The difference of buying and selling rate of foreign currency gives:

a) Trading profit/loss    b) Revaluation profit/loss

c)    General profit/loss     d) Remittance profit/loss                                                                  

B. True or False

1. Authenticated Messages can be exchanged in SWIFT, only when there is a bilateral Key Arrangement.

a) True                         b) False

2. It is necessary to have a Nostro Account at a correspondence bank to effect remittance payment.

a)    True                          b) False

     Answer                                                          

1. a
2. c
3. c
4. a
5. a

    True/False

1. True
2. False   

Interpretation of Bank Financial Statements and Relevant NRB Regulations

A. Tick the correct answer:

1.  Following Capital is shown in liability side of the Balance Sheet:

a) Authorized Capital     b) Issued Capital      c) Paid up Capital     d) None of these

2.  Which of the following is not a part of the core-capital:

a) Share Premium   b) Exchange equalization reserve   c) General Reserve   d) Paid up Capital

3.  Which of the following is not the Interest –Bearing Deposit:

a) Margin Deposit          b) Fixed Deposit      c) Saving Deposit    d) Call Deposit

4. Risk- Weighted Assets % age for Money at call is:

a) 10%         b) 20%             c) 50%              d) 100%

5. While doing CAMEL analysis, Loan Analysis falls under:

a) Capital     b) Assets         c) Earnings     d) Liquidity

B.   True or False

1. As per Nepal Rastra Bank regulation, by the end of FY 2066, all the commercial banks having operation in          Kathmandu must raise their core capital to NPR 2 Billion.

a) True                                b) False

2.  Money at Call is the Asset of the Bank.

a) True                               b) False  

Answer

1. c
2. b
3. a
4. b
5. b

True/False

1. a
2. b