Choose and encircle the right option:

1. Objectives of an Established Internal Loan Policy in a bank is to A. Provide sound base for opening new branches B. Provide sound role in achieving the business and socio-economic objectives C. Provide sound base for human resource retention in banks D. None of the above is true

2. Margin is one of the key principles of good landing which means all except

A.Adequate security or collateral b. Sufficient spread on bank loans c. To cover the fallback position in loan d. Carefully evaluate and valuate securities

3. If the loan security is__________ it requires low margin requirements a. Stable in value b. Easily marketable c. Liquid d. All of above

4. In case of charges for credit the person transferring the rights in property, debt or some receivable is called___________ and to whom rights are transferred is__________ a. Bailer, Bailee

b.Assignor, Assignee c.Guarantor, Guarantee d. Assurer, Assure

5. Bank's_______ is the process of generating funds to meet contractual or relationship obligations at reasonable prices at all times. New loan demands, existing commitments, and deposit withdrawals are the basic contractual or relationship obligations that a bank must meet. a.Interest rate risk management

b.Risk analysis c. Sensitivity Analysis

d.Liquidity management

6. Proprietary Trades are done by treasury a. On demand of a large client b. Only for foreign exchange transactions c. Are backed by a genuine trade demand d. For the bank's own account and capital gains

7. Which is true about Market Maker a.It avoids the risk of holding a certain number of a particular security b. It competes for customer order flow by displaying buy and sells quotations c. It transactions have no effect on the market d. It facilitates the market monitoring mechanism set by regulators

8.___________does not facilitate funds transfer; rather, it sends payment instructions, which must be settled by correspondent accounts that the institutions have with each other a. RTGS b. SWIFT c. SAIRE d. IBAN

9. Which of the following is incorrect about Real-Time Gross Settlement System a. Payment transaction is not subjected to any waiting period b. Transaction is settled on one to one basis without bundling or netting c.Typically used for high-value transactions that requires delayed clearing d. Usually operated by a country's Central bank

10. Following is not an exception to bank lien a. Securities for underwriting purpose b. Property was handed over to the bank for safety purpose

c.Securities left with bank against declined advances d. Bills of exchange in the possession of bank

11. Under________the lender takes the property. The lender receives income from the property until the money is paid back. The owner keeps the title deeds. a. Anomalous Mortgage

b.Usufructuary Mortgage c. Simple or Registered d. d.Conditional sale Mortgage

12. Hypothecation agreement can be converted into___________if required by bank by taking the possession of goods. a. Lien b. Pledge

c.Assignment

d.Set of

13. During bankruptcy proceedings of a company if all creditors are regarded equally, and will be repaid at the same time and at the same fractional amount as all other creditors. The situation stands for? a. Pari-Passu Charge b. Prorate Charge c. Equitable charge d. Floating charge