1. Which of the following statements is true? i. Term deposits are non-transaction deposits ii. Cheques can be issued on short-term deposits iii. All term deposits are interest bearing deposits
A. (i) only
B. (ii) only
C. (iii) only
D. (i) and (iii)
2. The credit policy laid down by the top management of a bank does not deal with?
A. Credit risk management
B. Pricing of the credit products
C. Appraisal of time and demand deposits
D. Documentation standards
3. The disadvantage associated with leasing company is?
A. Low costs
B. Flexibility in payments
C. Eliminates the risk of obsolescence
D. High competitions because of entry to all financial institutions
4. Which of the following is not a function of the agent bank in loan syndication?
A. Ensuring the compliance of conditions precedent under the loan agreement
B. Determining the LIBOR interest rate for each interest rate
C. Planning for future syndication of loans
D. Receiving notices relating to cancellation of any part of the loan
5. Which of the following is not a phase/step in the formation of loan syndication?
A. Finalization of supply agreement
B. Identify the needs of the borrower
C. Preparation of information memorandum
D. Invite other banks to participate
6. Which of the following theory is associated with the financial system in the economic growth?
A. Retributive theory
B. Reformative theory
C. Financial repression theory
D. Jurisdictional theory
7. Which of the following is not a financial intermediary in the financial markets?
A. Pension funds
B. Credit unions
C. Life insurance companies
D. Small scale service institute
8. Which of the following is not a function of a commercial bank?
A. Registration of charges and mortgages
B. Transactions services
C. Asset transaction
D. Real-time Gross Settlement
9. Lenders may not provide trade-offs to the borrowers on the basic term of consumer installment credit relating to?
A. Interest rate
B. Maturity of the loan
C. Maturity of the deposit
D. Quantum of finance
10. Which of the following is the risk associated with the retail banking?
A. Strong recovery strategy
B. Definite lending limits
C. Effective credit process and proposals
D. Inadequate risk pricing