Tag: commercial studies

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Questions Related to commercial studies

Multiple choice commercial studies money loans from banks and financial institutions introduction to money - barter system owned fund and borrowed fund

The approach of 'Micro-Credit' or 'Banking with the poor' is comparatively a new concept in the field of rural credit. This approach has been tried very successfully in which of the following countries?

  1. Bangladesh

  2. India

  3. China

  4. Japan
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Microcredit is generally considered to have originated with the Grameen Bank founded in Bangladesh in 1983.

Muhammad Yunus is a Bangladeshi social entrepreneur, banker, economist, and civil society leader who was awarded the Nobel Peace Prize for founding the Grameen Bank and pioneering the concepts of microcredit and microfinance.

Multiple choice commercial studies money loans from banks and financial institutions introduction to money - barter system owned fund and borrowed fund

The most important reason for an investor to prefer a Bank deposit is _________.

  1. The credit worthiness of the Bank.

  2. The Bank does not invest in the securities.

  3. The Bank offers a guarantee.

  4. All of the above.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Creditworthiness is how a lender determines that you will default on your debt obligations, or how worthy you are to receive new credit. Your creditworthiness is what creditors look at before they approve any new credit to you.

Banks offer lower interest rates on saving account as compared to term deposits. It is because of this reason, investors opt for term deposit accounts.

Multiple choice commercial studies money loans from banks and financial institutions introduction to money - barter system owned fund and borrowed fund

If credit facility applied for is rejected, the reasons therefore should be briefly mentioned in the __________.

  1. loan applications received and disposal register

  2. opinion reports

  3. loan rejection register

  4. none of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

If the credit facility applied for in a bank is rejected due to any reason, then it is the responsibility of the respective bank to state the reasons briefly on the loan application received by the bank from the account holder and on the disposal register thereafter. 

Multiple choice commercial studies money loans from banks and financial institutions introduction to money - barter system owned fund and borrowed fund

Which of the following refers to sub prime mortgage?

  1. Lending done by banks at rates below PLR

  2. Funds raised by the banks at sub-Libor rates

  3. Group of banks which are not rated as prime banks as per Banker's Almanac

  4. Lending done by financing institutions including banks to customers not meeting with normally required credit appraisal standards
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Subprime mortgage lending refers to providing loans to borrowers who have poor credit histories or do not meet the standard creditworthiness requirements, often at higher interest rates.

Multiple choice commercial studies money loans from banks and financial institutions introduction to money - barter system owned fund and borrowed fund

Which one is related with micro financing?

  1. SHG

  2. Anganwadi workers

  3. Women Entrepreneurs

  4. None of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A Self Help Group (SHG) is a financial intermediary committee usually composed of 10–20 local women or men who provide financial assistance to its members by providing them finance in the a minimal interest rate. It is a part of micro financing as the amount of the loan is very minimum due to small group of people. 

Multiple choice commercial studies money loans from banks and financial institutions introduction to money - barter system owned fund and borrowed fund

In case of Term Loans, the period of limitation is calculated as three years from ________.

  1. date of documents

  2. date of sanction

  3. date of default

  4. due date of each installment
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A term loan is a monetary loan that is repaid in regular payments over a set period of time. Term loans usually last between one and ten years, but may last as long as 30 years in some cases. A term loan usually involves an unfixed interest rate that will add additional balance to be repaid.

For term loans payable in installments, the limitation period is 3 years for each installments, starting on the due date of each such installments.

Multiple choice commercial studies money loans from banks and financial institutions introduction to money - barter system owned fund and borrowed fund

Which of the following is considered an informal method of getting credit/finance?

  1. Internet banking

  2. Branch visits

  3. Going to moneylenders

  4. Telebanking
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Informal credit sources are those outside the regulated banking system. Moneylenders operate outside the formal regulatory framework of the central bank.

Multiple choice commercial studies money loans from banks and financial institutions introduction to money - barter system owned fund and borrowed fund

As published in various newspapers, the Experian Credit Information Company of India is going to launch its operation in India soon. At present the only credit information bureau functional in India is

  1. AMFI

  2. ICRA

  3. CIBIL

  4. CRISIL
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

CIBIL (Credit Information Bureau (India) Limited) was the first credit information company established in India to maintain credit records of individuals.