Hello Aspirants,
Welcome to Banking Awareness Quiz in AffairsCloud.com. Here we are creating quiz covering important questions which are common for all the bank exams and other competitive exams.
- A provision in some loans that allows the borrower to change the interest rate from fixed to variable or Vice Versa is termed as __________
A. Convertible Bond
B. Convertible Clause
C. Convertible Security
D. None of the Above
Answer & Explanation
B. Convertible Clause
Explanation:
A provision that can be found on some bonds allowing the bondholder to exchange their debt into common stock. - CRAR stands for _________
A. Capital to Risk-Weighted Assets Ratio
B. Capital to Risk Assets Ratio
C. Credit Rating-Weighted Assets Ratio
D. Credit Rating Assets Ratio
Answer & Explanation
A. Capital to Risk-Weighted Assets Ratio
Explanation:
The Capital Adequacy Ratio (CAR) or Capital-to-Risk weighted Assets Ratio (CRAR) is a measure of a bank’s capital. It is expressed as a percentage of a bank’s risk weighted credit exposures. It is used to protect depositors and promote the stability and efficiency of financial systems around the world. - An index that is used to determine interest rates and/or changes of interest rates of certain types of loans is known as _________
A. Covenant
B. CRAR
C. COFI
D. CRAs
Answer & Explanation
C. COFI
Explanation:
A cost of funds index or COFI is a regional average of interest expenses incurred by financial institutions, which in turn is used as a base for calculating variable rate loans. - _________ are long term corporate bonds that are unsecured in nature.
A. DCF
B. Debentures
C. Covenant
D. CRAs
Answer & Explanation
B. Debentures
Explanation:
A long-term security yielding a fixed rate of interest, issued by a company and secured against assets are known as debentures. - A type of loan, where the bank or the lending institution provides the borrower with a loan that helps the borrower to pay off his all previous debts is termed as ________
A. Debt Recovery
B. Debt Settlement
C. Debt Management
D. Debt Consolidation
Answer & Explanation
D. Debt Consolidation
Explanation:
Debt consolidation is a form of debt refinancing that entails taking out one loan to pay off many others. - An account for which a bank acts as an uninterested third party is termed as _______
A. Savings Account
B. Current Account
C. Reserve Account
D. Escrow Account
Answer & Explanation
D. Escrow Account
Explanation:
An escrow account is a temporary pass through account held by a third party during the process of a transaction between two parties. Definition: An escrow account is a temporary pass through account held by a third party during the process of a transaction between two parties. - The unpaid principal balance of a loan on property divided by the asset’s appraised value is termed as ______
A. Liquidity Adjustment Facility
B. Loss Given Default(LGD)
C. Loan to Value(LTV)
D. Long term liabilities
Answer & Explanation
C. Loan to Value(LTV)
Explanation:
The loan-to-value (LTV) ratio is a financial term used by lenders to express the ratio of a loan to the value of an asset purchased. The term is commonly used by banks and building societies to represent the ratio of the first mortgage lien as a percentage of the total appraised value of real property. - A signed undertaking from one party containing a promise to pay a stated sum to a specified person or a company is known as ________
A. Power of Attorney
B. Promissory Note
C. Purchasing Power Parity
D. None of the Above
Answer & Explanation
B. Promissory Note
Explanation:
A promissory note is a legal instrument in which one party (the maker or issuer) promises in writing to pay a determinate sum of money to the other (the payee) - __________ is a transfer of property to its real owner, once the loan or mortgage is paid off.
A. Reconveyance
B. Repossession
C. Recurring Billing
D. Revalidation
Answer & Explanation
A. Reconveyance
Explanation:
The transfer of real property that takes place when a mortgage is fully paid off and the land is returned to the owner free from the former debt. - Which of the following is defined as the difference between current assets and current liabilities?
A. Venture Capital
B. Working Capital
C. Equitable Mortgage
D. None of the Above
Answer & Explanation
B. Working Capital
Explanation:
The capital of a business which is used in its day-to-day trading operations, calculated as the current assets minus the current liabilities.
AffairsCloud Recommends Oliveboard Mock Test
AffairsCloud Ebook - Support Us to Grow
Govt Jobs by Category
Bank Jobs Notification