CREDIT QUESTIONS SUMMARIZED (FINAL DOSE)  a charge of the assets of a company which is being

1. The limitation period of loan covered by a registered floated

mortgage deed is -  a charge on the shares of a company
 Three years  a charge on the current assets of the company which
 Twelve years are constantly changing
 Fifteen years  None of the above
 Twenty years 12. In case of hypothecation, the banker has -
2. Which of the following is the weakest method of  The possession of goods
charging security?  Right to sell the goods
 A Pledge  A specific interest in the goods
 Mortgage  None of the above rights
 Hypothecation 13. In case of hypothecation, insurance charge for the goods
 Assignment are borne by
3. Transfer of possession of physical security is essential in  The borrower
the case of -  The bank
 Lien  The borrower and the bank jointly
 Mortgage  None, since no insurance is required
 Pledge 14. In case of default by the borrower, the banker can sell
 Both (a) and (C) the pledged goods -
4. Which of the following is not an intangible asset?  Immediately
 Goodwill  After issuing notice to the borrower
 Copyright  After obtaining court’s order
 Land  With the consent of the borrower.
 Trademark 15. The limitation period for filing of suit for sale of
5. A banking company cannot hold any immovable mortgaged property is -
property, not acquired for its own use for a period  3 years;
exceeding -  years;
 5 Years  10 years;
 7 Years  12 years.
 10 Years 16. Pledge can be created by -
 None of these  Actual delivery
6. Continuing security clause is inserted in case of -  Constructive delivery
 term loans  Symbolic delivery
 cash credits (only for Cash Credit, Overdraft  Any of the above methods.
or bill discounting) 17. The Letter of Continuity should be taken in the case of -
 mortgage loans  Advances to companies
 None of the above  Overdraft or Cash Credit Account
7. The end-use of funds can reasonably be ensured in case  Time barred advances
of -  Accounts of the deceased borrowers
 term loans 18. Mortgage other than by way of deposits of title deeds
 cash credits should be registered with -
 bills discounted and purchased  The Sub-Register
 None of the above  The Register of Companies
8. All goods should be physically checked at least once in -  The Register of Co-operative Societies
 a month  Registrar of Firms.
 6 month 19. The best option of charge to finance a car, for personal
 a year use by an individual, by a bank would be -
 None of the above  Pledge
9. Liquid assets include -  Mortgage
 cash in hand and balances with other banks  Hypothecation
 investments in shares and stocks  None of the above
 loans and advances 20. For creating charge on work-in-process of a borrowing
 None of the above unit, the most appropriate charge will be -
10. In case of pledge, the possession of the security is with -  Hypothecation
 the debtor  Pledge
 the Bank  Mortgage
 the third party  None of the above.
 None of the above 21. The right to retain goods or property of a debtor for the
11. A floating charge means - debt is known as -
 Set-off
  Lien 34. An advance or any portion of an advance or interest
 Appropriation thereon remaining overdue for one year or more but
 None of the above. less than three years should be classified:
22. Commercial Banks provide credit only to -  Substandard
 Trade and Industry  Doubtful
 Agriculture and Trade  Bad & Loss
 Trade, Agriculture and Industry 35. In case of 'Cash Credit' advance:
 None of the above  Both the limit and the drawing power are variable
23. Short-term Credit needs are for a period between -  Limit is fixed but the drawing power is variable
 Up to 1 year  Drawing power is fixed but limit is variable
 5 to 10 years 36. The common modes of creation of charge over the
 More than 10 years securities against loans and advances are:
 None of the above  Registration, set-off, possession, and power of
24. Medium Term Credit needs are for a period between - Attorney
 2 to 5 years  Pledge, Hypothecation, Mortgage, Lien and
 5 to 10 years; Assignment
 More than 10 years;  Pledge, Hypothecation, Mortgage and set-off
 None of the above 37. Principles of sound lending mean:
25. Long Term Credit needs are for a period between -  Safety, Security, Liquidity & Profitability of the fund
 Over 5 years  Security, Safety, Purchase, Spread & National Interest
 5 to 10 years  Security, Safety, Purchase, Person & Capital
 More than 10 years 38. Letter of disclaimer is taken from:
 None of the above  Borrower
26. The term gross working capital is used for -  Guarantor
 Total current assets  Owner of rented godown / premises
 Total of current assets and current liabilities 39. Provision for Bad debts is made out of
 Current assets – current liabilities;  Income
 None of the above.  Profit
27. In a contract of guarantee, the liability of the guarantor is:  Reserve
 Always primary 40. A Bank can sanction loan to a single party upto a
 Always tertiary maximum amount of
 Always secondary  20 % of its capital
28. Total assets minus outside liabilities is:  15 % of its capital
 Working capital  10 % of its capital
 Profit 41. Rates of interest to be charged against various forms of
 Capital advances are determined by:
29. In case of Pledge, delivery of goods to the banker:  Bank's own policy
 May be actual or constructive.  As per directives of Bangladesh Bank
 Must be actual.  Mutual Agreement with the borrower
 Must be constructive. 42. In case of Hypothecation the possession of the
30. Letter of Continuity is taken in case of: merchandise is held with the:
 Cash Credit or Overdraft.  Banker / Lender
 Pledge or Hypothecation.  Borrower
 Term Loan.  Negotiator
31. Charging Securities means: 43. Hypothecation is called as:
 Becoming owner of the security.  Fixed charge
 Making security available as a cover for the said advance  Floating charge
 Selling / liquidating of the securities for adjustment of the  None of the above
loan without intimation/approval of any other parties. 44. Lien, one of the modes of charging securities, is the right
32. Pledge as a method of charging securities are defined in: to retain:
 Transfer of Property Act  Goods and securities until debt is satisfied
 Contract Act -1872  Property mortgaged to the bank
 Sale of goods Act  Both of above
33. Banker's right to cancel advance at any time with or 45. Mortgage, a mode of charging security, has been defined
without intimation is acknowledged by the borrower by in:
signing:  Transfer of Property Act, 1882
 D.P. Note  Sale of Goods Act, 1876
 Letter of request  Negotiable Instruments Act, 1881
 Letter of arrangement/ Sanction letter 46. In case of loan against gold ornaments the charge should
be created by:
  Hypothecation 58. For financing a project bank selects the following type of
 Pledge advance:
 Mortgage  Cash Credit (Hypothecation)
47. Cash credit is allowed generally against  Secured Overdraft
 Pledge or Hypothecation of goods  Term Loan
 Immovable property 59. Drawing Power in CC (Pledge) facility is calculated on the
 Tangible security basis of:
48. In case of Hypothecation, the banker customer  Limit & Stock
relationship is:  Stock & Margin
 Baylor -Bailee  Stock, Margin & Limit
 Debtor -Creditor 60. Counter Guarantee is taken from:
 Pledgor -Pledgee  Beneficiary
49. Installment basis repayment is allowed in:  Principal Debtor
 Cash credit account  Guarantor
 Overdraft account 61. In case of advance against pledge of goods of a limited
 Loan account company, charge should be registered with:
50. In case of transport loan the charge should be created by:  Registrar of Joint stock company within 21 days
 Hypothecation  Controller of Capital Issues within 21 days
 Pledge  Registration of such charge is not required
 Mortgage 62. The borrowing power of a Company is to be determined
51. The period of limitation for filling a suit for recovery of by:
money lent under a Demand Promissory Note is:  Memorandum of Association
 Three years from the date of execution of the  Articles of Association
document  Certificate of Incorporation
 Seven years from the date of execution of the 63. Equitable Mortgage means:
document  Registered mortgage for token amount
 Twelve years from the date of execution of the  Legal mortgage for full amount
document  More deposit of Title Deed
52. While you are granting loan against Life insurance Policy, 64. In case of an advance allowed to a limited company
the charge should be: against legal mortgage of land of its own, the property is
 Set -Off to be registered with:
 Assignment  The Sub-Registrar Office / District Registrar
 Lien Office
53. For filing suit against a defaulter borrower under  The Registrar of the Joint Stock Company
'Insolvency Act' the amount claim of the Creditor(S)  Both of the above
should be at least: 65. Principles of sound lending are followed by the bankers:
 Tk. 3.00 Lac  To minimize risk
 Tk. 5.00 Lac  To maximize profit
 Tk. 7.00 Lac  None of the above
54. As per" Artha Rin Adalat Act, 2003" the bank/debtor 66. Lien is created over the securities held by the bank
should go to the following court for appeal against the through:
decree:  Letter of Lien
 Supreme Court  Demand Promissory Note
 District Judge Court  Letter of Disclaimer
 High Court 67. In a guarantee, the liability of the surety is:
55. For classification purpose Secured Overdraft falls under  Absolute
the following category:  Primary
 Demand Loan  Conditional
 Continuous Loan 68. When a loan is to be repaid within 3 (three) years, it
 Term Loan should be regarded as:
56. A defaulter borrower may apply to the court to declare  Short Term Loan
him "Insolvent" if he fails to repay loan amounting not  Medium Term Loan
less than:  Demand Loan
 Tk. 5,00,000/- 69. Which one of the charge documents is required for all
 Tk. 2,00,000/- types of advances?
 Tk. 20,000/-  Demand Promissory Note
57. Project financing decision emphasis’s on  Letter of Continuity
 Ability to procure revenue from the project  Letter of Undertaking
 Volume of production, capacity utilization, etc. 70. Loan which is not backed by any security is called:
 Government policy  Bad Loan
  Risky Loan  Retired Judge
 Clean Loan  None of the above
71. Under which act a document is not acceptable to the 81. Specify the period of time when filing of 2nd Execution
court as an evidence of contract between the banker and Case barred by Law?
customer due to under stamping:  1 Year
 The Contract Act, 1872  5 Year
 The Artha Rin Adalat Act, 2003  6 Year
 The Stamp Act, 1899  180 Days
72. CIB Report is to be obtained about a new customer for 82. Bank Conduct Classification of Loan Activities as per BRPD
granting loan amounting to: circular
 More than Tk. 1.00 crore  Monthly
 More than Tk. 50.00 Lac  Quarterly
 Any amount  Half yearly
73. Which is the unclassified Loan?  Yearly
 SMA 83. Calculate the provision for SMA Loans and advances for
 SS outstanding Tk.50,00,000/-Where interest suspense
 DF Tk.2,00,000/- and eligible security Tk.60,00,000/-
 BL  Tk.2,50,000/-
74. How does base for provision calculated in respect of  NIL
Classified Loan?  Tk.2,40,000/-
 Based on total outstanding  Tk.90,000/-
 Total outstanding minus interest suspense 84. In case of Fixed Term Loans, repayable in more than five
 Total outstanding minus interest suspense years, if the amount of defaulted installment is equal to or
minus eligible security more than the amount of installment due for 24 months.
 Total outstanding minus eligible security Which category of classification shall it fall?
75. What is the percentage of provision kept for Doubtful  DF
Loans and Advances?  BL
 5% of base for provision  SMA
 20% of base for provision  None of these
 50% of base for provision 85. Calculate the eligible security of the Land and Building
 100% of base for provision Mortgaged with the Bank.
76. When shall a continuous loan be past due/overdue?  100% of market value
 After the date of expiry  75% of market value
 After 3 month of expiry date  Maximum 50% of market value
 After 6 month of expiry date  Maximum 50% of market forced sell value
 After last payment date 86. What percentage has to be made as down payment of a term
77. In case of availing fresh facility from other bank or financial loan rescheduled for 3th time?
institution what are the conditions have to be fulfilled?  15% of overdue installment or 10% of total
 15% of compromise amount including down outstanding, which is less
payment as per guideline  30% of overdue installment or 20% of total
 15% of compromise amount excluding down outstanding, which is less
payment as per guideline  20% of overdue installment or 15% of total
 15% of compromise amount excluding down outstanding, which is less
payment as per guideline and NOC  50% of overdue installment or 30% of total
 15% of compromise amount including down outstanding, which is less
payment as per guideline and NOC 87. What shall be the amount of down payment for continuous
78. 2nd Execution Case to be filed within ________ of filing the 1 st loan Tk.1,10,00,000?
Execution Case.  15% of outstanding
 1 Year  10% of outstanding
 5 Year  Tk.15.00 lac
 Year  Tk.11.00 lac
 180 Days 88. When no fresh facility will be allowed till the full settlement of
79. Section 33 is about _______ compromise amount?
 Summon Notice  Any interest waiver
 Auction Notice  Any principal waiver
 Execution of Decree  2nd time rescheduled loan
 Show Cause Notice  None of these
80. Who can be a Mediator? 89. Auction Notice Under Section -12 of Artha Rin Adalal,
 Plaintiff’s Lawyer 2003 to be arranged before filing _______.
 Defendants Lawyer  Artha Rin Execution Case
  Artha Rin Suit  Use the excess provision of other Loans and
 C R Case advances
 Civil Suit  Debiting the Income account of the current
90. What is the specific Time Period for submitting Mediation year.
Report?  None of the above.
 90 99. Under what section of Artha Rin Adalat Ain 2003 Bank
 60 publish auction notice?
 30  Section 34
 15  Section 11
91. 1st Execution Case to be filed within __________ of  Section 12
obtaining Decree from the Lower Court.  Section 46
 1 Year 100.What is the provision requirement for writing-off loan?
 2 Year  50%
 6 Month  20%
 90 Days  5%
92. Artha Rin Ain, 2003 contain _____ Imprisonment of  100%
_____. 101.Under what section of Negotiable Instrument Act we file
 Civil, 7 Month criminal case?
 Criminal, 6 Month  Section 12
 Civil, 6 Month  Section 112
 Criminal, 7 Month  Section 138
 Section 133
93. What criteria from the following is not considered to 102.The loans that become repayable on demand by the bank
classify a loan account as per Bangladesh Bank will be treated as ____________.
Guidelines?  Continuous Loan
 Date of Sanction  Demand Loan
 Date of Expiry  Forced LIM, PAD
 Qualitative Judgment  None of the Above
 Period of Past due/overdue. 103.The interest Accrued on classified loan will be credited to
94. Why bank write-off their classified loans and advances?  Income Account
 To initiate more efforts to recovery the  Interest Account
loans  Suspense Account
 To Clean-up the Bank’s Balance from  Interest Suspense Account
Classified exposure. 104. Which body of a Bank has the authority to declassify a
 To improve the assets quality. loan that was classified by inspection Team of Bangladesh
 All of the above Bank?
95. To recover the classified loan all classified loans and  Board of Directors
advances are categorized into three stages on priority on the  Executive Committee
basis of _______?  Audit Committee
 Value of collaterals and borrowers  All of the above.
worthiness 105. If a borrower deposit full or part of the due in a classified
 Stages of classification and loans and account, what shall be realized first?
advances category.  Interest Amount
 Borrower’s intention and worthiness.  Principal Amount
 All of the above.  Interest & Principal Amount
96. Which of the following body have the authority to allow  Only Principal Amount.
remission of interest to ensure early recovery? 106. Charging of interest will cease in which type of Classified
 Executive Committee Account?
 Audit Committee  Special Mention Account
 Board of Directors  Sub Standard Account
 All of the above.  Doubtful Account
97. Which is Called NPL?  Bad & Loss Account.
 SMA 107. Short-term Micro-Credit will include any micro-credits not
 Standard Loan exceeding __________ and repayable within 12(twelve)
 Unclassified Loan Months.
 Classified Loan.  Tk. 15000
98. How do bank write-off its bad loan, if provision remains  Tk. 25000
short fall?  Tk. 35000
 Keeping 100% provision against the loan  Tk. 45000
108. What’s the procedure of serving Summon?
  Registered Post(A) c). Letter of Pledge
 Unregistered Post(B) d). Both b and c
 News Paper Publication(C) 119.The liability of the Guarantor is
 A & C. a). Primary
109.A debtor makes default in payment of a bank and which b). Co-extensive with that of principal debtor
type of risk is this for a lending bank: c). Secondary
a). Liquidity Risk d). None of these
b). Interest Risk 120.Which one is not associated with fraud
c). Operational Risk a). Deceive
d). Credit Risk b). Promise
110.Which type of risk arises before a bank that trades in c). Concealment
government securities d). Unethical Conduct
a). Liquidity Risk 121.Which one is not the irregularities in case of approving
b). Credit Risk Loans and Advances
c). Market Risk a). Over or Under Invoicing
d). Trade Risk b). Inadequate Security Stipulation
111.When financial instution and banks undertake activities c). Undue Influence
related to banking like investment, issue of debit and d). Estimation of the cost of the project and means of
credit card etc. then it is known as finance
a). Internet Banking 122.Which of the following is termed as earning asset
b). Virtual Banking a). Deposit/Borrowing
c). Universal Banking b). Cash and Liquid Reserve
d). Wholesale Banking c). Investment
112.CRG is not required for d). Capital
a). Consumer Credit 123.ABC Ltd. Sold Tk. One Million of their products in 2015. If
b). STAC( Short Term Agricultural Credit the fixed and variable cost of each of the product is Tk. 75
c). Micro Credit and Tk. 25 respectively, what is the total quantity of the
d). All of the above production?
113.Mortage is applicable in case of a). 1000
a). Moveable and immovable property b). 10000
b). Immovable property only c). 40000
c). Movable property only d). None of these
d). All of the above 124.XYZ company taken a loan five million for one year @
114.Neither possession nor ownership transferred to the bank 10% per annum to counterparty. What will be the
in case of amount of the quarterly interest that to be recovered
a). Pledge a). 10000
b). Mortgage b). 50000
c). Hypothecation c). 12500
d). Set off d). 25000
115.The new Capital Adequacy Framework prescribed for the 125.Total Current assets and current liabilities of a trading
banks commodity known as firm are Tk. 2 million and 0.50 million respectively. What
a). FERA Guidelines is the current ratio of the firm?
b). BASEL Policy a). 4:1
c). CBS Policy b). 4:2
d). RTGS Policy c). 2:1
116.The object of Limitation Act is d). None of these
a). to put the party in joint 126.Which one of the following is not included in Tier-I
b). to enter into an agreement with the party capital?
c). to release the party from his liability a). Paid-up Capital
d). to prescribe the period within which right can be b). Statutory Reserve
enforced in a court of law c). General Provision
117.Execution suit under Artha Rin Adalat Scheduled to be d). Retained Earnings
filed with in 127.Classified loan is categorized under
a). 160 days a). 3
b). 180 days b). 4
c). 360 days c). 5
d). None of them d). None of these
118.Which one is not a charge document 128.In CRG what should be the score of acceptable category
a). D.P Note a). 85+
b). Mortgage b). 75 – 84
 c). 65 – 74 140. Guarantor is liable only when-
d). 55 – 64 a). The principal debtor has defaulted to pay
129.Maintenance of general provision and SMA in case of b). The creditor has exhausted his remedy against the
Consumer Finance Scheme is principal debtor
a). 2% c). The guarantor is called upon to pay on default by the
b). 2.5% principal debtor
c). 5% d). After the expiry of the limitation period of guarantee
d). None of these
130.Maintenance of Specific Provision in case of SS/DF of 141. A bank is unable to pay its short term deposits because
Short Term Agricultural Credit and Micro Credit is the bank’s fund is long term investments. The risk
a). 20% derived in this case is known as-
b). 50% a). Market Risk
c). 5% b). Operational Risk
d). 100% c). Liquidity Risk
131.Down payment requirement of term loans for the 1 st time d). Interest Rate Risk
rescheduling is 142. Ability of an organization to pay-off the current
a). 15% of the overdue installments or 10% of the total obligations is measured by-
outstanding amount of loan whichever is less a). Coverage Ratio
b). 30% of the overdue installments or 20% of the total b). Activity Ratio
outstanding amount of loan whichever is less c). Liquidity Ratio
c). 20% of the overdue installments or 10% of the total d). Growth Ratio
outstanding amount of loan whichever is less 143. Under which section of Artha Rin Adalat Ain, 2003
d). None of these responsibility has been financial institutions to dispose
132.A project loan will be accepted when of property of borrower before filling of suit-
a). IRR is 10% a). Section 8
b). NPV is positive b). Section 10
c). NPV is negative c). Section 9
d). None of these d). Section 12
133.What is the single borrower exposer limit of a bank? 144. Which one of the following is not included in Tier II
a). 15% of the bank’s capital Capital?
b). 25% of banks capital a). General Reserve
c). 30% of banks capital b). Asset revaluation reserve
d). 35% of banks capital c). All preference shares
134.Any continuous loan will be classified as SS if it is past d). Exchange Equalization
due/overdue 145. Which one of the following is not the capital budgeting
a). for 2 months or beyond but less than 3 months technique?
b). for 3 months or beyond but less than 6 months a). Discounted payback period
c). for 6 months or beyond but less than 9 months b). NPV
d). for 9 months or beyond but less than 12 months c). Break-even analysis
135.What is the primary security of LIM? d). IRR
a). Imported stock 146. General provisioning requirement for off balance sheet
b). Post datedcheque item is-
c). Personal Guarante a). 5.00% of limit
d). Both a and b b). 0.05% of limit
136.What will be the drawing power of a customer when c). 1.00% of limit
stock value is Tk. 2 crore and required margin is 25% d). 0.15% of limit
a). Tk. 1.50 Crore 147. Which of the following is not included in three pillars of
b). Tk. 1.60 Crore BASEL-?
c). Tk. 2.25 Crore a). Minimum capital requirement
d). Tk. 4.00 crore b). Supervisory review
137. What is the maximum tenor for any continuous loan? c). Core banking solution
a). 6 months d). Market discipline
b). 9 months 148. Under the Basel -II framework market discipline falls
c). 12 months under which of the following pillar?
d). 18 months a). Pillar-I
138.Debt Service Coverage Ratio indicates to meet b). Pillar- II
a). Interest servicing obligation c). Pillar-III
b). Principal Service obligation d). None of the above
c). Both interest and Principal Service obligation 149. Which one is not the irregularities in case of approving
d). None of these loans and advances?
 a). Over or under invoicing b) Evaluation and expression of opinion
b). Inadequate security stipulation c) Test compliance with laws, policies and procedures etc.
c). Undue influence d). Effective supervision and monitoring
d). Estimation of the cost of the project and means of 161. Based on capital budgeting technique decision rule,
finance which project should be chosen?
150. Which one of the following is not true? a). The project having NPV greater than zero
a). At present CRR is 6.50% b). The project having payback period greater than given
b). All banks are to maintain SLR @ 13.00% standard time
c). At present Bank rate is 5.00% c). The project having IRR lower than the cost of capital
d). Call money rate is not always fixed d). Anyone
151. Classified loan is categorized under- 162. Execution suit under Artha Rin Adalat Ain’2003 should
a). 3 categories be filed within-
b). 5 categories a). 120 days
c). 4 categories b). 180 days
d). None of these c). 360 days
152. Which of the following is non funded credit? d). None of these
a). CC pledge 163. Which one of the following is not a charge document?
b). Bill purchase and discounting a). D.P note
c). Letter of credit b) Letter of revival
d). Both (b) and (c) c). Letter of continuity
153. What is the single borrower exposure limit of a bank? d). Assignment
a). 15% of Bank’s capital 164. Down payment requirement of term loan for the 1st time
b). 35% of Bank’s capital rescheduling is-
c). 25% of Bank’s capital a). 10% of the total outstanding or 15% of the overdue
d). None of these installment of the loan, whichever is less.
154. Loan would be classified as doubtful if- b). 20% of the total outstanding or 30% of the overdue
a). There is a negative net worth and working capital installment of the loan, whichever is less
b). Uncertain collateral coverage c). 10% of the total outstanding or 25% of the overdue
c). Full recovery depends upon unlikely events installment of the loan, whichever is less
d). All of the above d). None of these
155. Current ratio is calculated through- 166. CRG is not required for-
a). Current assets – current liabilities a). Consumer credit
b). Current assets + current liabilities b). Micro credit
c). Current assets /current liabilities c). Short term Agricultural credit
d). Current liabilities / Current assets d). All of these
156. IRR is the discount rate at which- 167. Which of the following is the formula of burden
a). NPV>0 coverage?
b). NPV<0 a). Funded income divided by operating expense
c). NPV= 0 b). Non interest income divided by interest expense
d). NPV> 1 c). Non interest income divided by operating
157. Which one(s) of the following symptoms of a non- expense/non interest expense
performing project? d). interest expense divided by operating expense
a). Slow turnover 168. A company has a net income of (BDT) 35 million, if the
b). Underutilization of capacity company pays out BDT 1 million preferred dividend and
c). Going out of production has 10 million shares for half of the year and 15 million
d). All of the above shares for the whose half of EPS would be-
158. Credit investigation includes- a). BDT 1.92
a). Collection and analysis of information b). BDT 1.00
b). Making of recommendation/decision c). BDT 2.00
c). Credit review and monitoring d). BDT 0.96
d). Both (a) and (b) 169. Which one of the following is an example of leverage
159. Which of the following does not constitute a line of Ratio?
defense against banking risk? a). Debt to total asset ratio
a). Quality management b). Debt equity ratio
b). Good macroeconomic environment c). Debt to capital ratio
c). Portfolio diversification d). All of these
d). Owner’s capital 170. Which of the following ratio(s) is/are considered
160. What is the role of internal auditors in the risk while assessing liquidity of a borrower?
management of bank? a) Acid – Test ratio
a) Set policies b) Sales Turnover
 c) P/E Ratio 1. 18 months
d) Debt-Equity Ratio 2. 12 months
171. As per regulatory guideline, for which of the 3. 09 months
following customers Credit Rating is mandatory? 4. 06 months
a) Having exposure of Tk. 30.00 lac 179. If a Demand loan is classified as Sub-standard and it
b) Having exposure of Tk. 30.00 lac and above is rescheduled for the Second time, what would be the
c) Having exposure of Tk. 1.00 crore and above maximum time limit for the loan from the date of
d) None of the above rescheduling?
172. What is the maximum number of times the f) 24 months
validity of a credit facility (unclassified) can be g) 18 months
extended? h) 12 months
a) 02 i) 9 months
b) 03 180. If a Demand loan is classified as Doubtful and it is
c) 05 rescheduled for the Third time, what would be the
d) None of the above. maximum time limit for the loan from the date of
173. For a trading concern which of the following is rescheduling?
the most important performance indicator? 1. 18 months
a) Inventory Turnover 2. 12 months
b) Fixed Asset Turnover 3. 09 months
c) Safety Margin 4. 06 months
d) Debt coverage ratio 181. If a Demand loan is classified as Bad/Loss and it is
174. What is the maximum rate of interest that can be rescheduled for the First time, what would be the
charged by any PCBs to Loan to Agriculture & Rural maximum time limit for the loan from the date of
sector as per BRPD circular no. 17 dated 21.12.014 of rescheduling?
Bangladesh Bank? a) 24 months
a) 13% b) 18 months
b) 14% c) 12 months
c) 12% d) 09 months
d) 10% 182. If a Term loan is classified as Sub-standard and it is
175. If a Continuous loan is classified as Sub-standard and rescheduled for the First time, what would be the
it is rescheduled for the First time, what would be the maximum time limit for the loan from the date of
maximum time limit for the loan from the date of rescheduling/expiry date?
rescheduling? a) 24 months
a) 24 months b) 36 months
b) 18 months c) 12 months
c) 12 months d) 09 months
d) 9 months 183. If a Term loan is classified as Sub-standard and it is
rescheduled for the Third time, what would be the
176. If a Continuous loan is classified as Sub-standard and maximum time limit for the loan from the date of
it is rescheduled for the Third time, what would be the rescheduling/expiry date?
maximum time limit for the loan from the date of 1. 18 months
rescheduling? 2. 12 months
a) 24 months 3. 09 months
b) 18 months 4. 06 months
c) 12 months 184. If a Term loan is classified as Doubtful and it is
d) 6 months rescheduled for the Second time, what would be the
177. If a Continuous loan is classified as Doubtful and it is maximum time limit for the loan from the date of
rescheduled for the Second time, what would be the rescheduling/expiry date?
maximum time limit for the loan from the date of 1. 18 months
rescheduling? 2. 12 months
b) 24 months 3. 09 months
c) 18 months 4. 06 months
d) 12 months 185. If a Term loan is classified as Bad/Loss and it is
e) 09 months rescheduled for the First time, what would be the
178. If a Continuous loan is classified as Bad/Loss and it is maximum time limit for the loan from the date of
rescheduled for the Third time, what would be the rescheduling/expiry date?
maximum time limit for the loan from the date of e) 24 months
rescheduling? f) 18 months
 g) 12 months 3. Cash payment of at least 30% of the overdue
h) 09 months installment or 50% of the total outstanding amount
186. If a Term loan is classified as Bad/Loss and it is of loan, whichever is less;
rescheduled for the Third time, what would be the 4. Cash payment of at least 30% of the overdue
maximum time limit for the loan from the date of installment or 50% of the total outstanding amount
rescheduling/expiry date? of loan, whichever is more;
1. 18 months 191. Which section of Bank Company Act 1991 (Amended
2. 12 months up to 2013) clearly spells out the definition of Defaulter?
3. 09 months 1. 27 (Ka Ka)
4. 06 months 2. 15 (Ka Ka)
187. Term to maturity of a term loan may be extended 3. 5 (GA GA)
subject to which of the following conditions? 4. 26 (Gha)
1. The loan must be performing 192. Which Act has forbidden Banks to extend loan &
2. The decisions should be made at the level where the advances to defaulter(s) ?
loan was originally sanctioned 1. Bangladesh Bank Order 1972
3. The maturity date may be extended by a period of 2. Bank Company Act 1991
time not exceeding 25% of the current remaining 3. Money Loan Court Act 2003
time to maturity. 4. The Bankers’ Book Evidence Act, 1891
4. All of the above 193. Which of the following statement is true for Cash
188. Bank will consider the application for first time Credit (Hypo) facility…..
rescheduling into consideration upon receiving 1. Both possession and title of the goods resides with
……………………….. the Bank.
1. Cash payment of at least 15% of the overdue 2. Both possession and title of the goods resides with
installment or 10% of the total outstanding amount the Customer.
of loan, whichever is less; 3. Possession of Goods resides with the Customer but
2. Cash payment of at least 15% of the overdue the title of the goods resides with the Bank.
installment or 10% of the total outstanding amount 4. Possession of Goods resides with the Bank but the
of loan, whichever is more; title of the goods resides with the Customer.
3. Cash payment of at least 10% of the overdue 194. Which of the following statement is true for Cash
installment or 15% of the total outstanding amount Credit (Pledge) facility…..
of loan, whichever is less; 1. Both possession and title of the goods resides with
4. Cash payment of at least 10% of the overdue the Customer.
installment or 15% of the total outstanding amount 2. Both possession and title of the goods resides with
of loan, whichever is more; the Bank.
189. Bank will consider the application for second time 3. Possession of Goods resides with the Customer but
rescheduling into consideration upon receiving the title of the goods resides with the Bank.
……………………….. 4. Possession of Goods resides with the Bank but the
1. Cash payment of at least 30% of the overdue title of the goods resides with the Customer.
installment or 20% of the total outstanding amount 195. As per CRG manual, if a loan is Substandard, it is to
of loan, whichever is less; be reviewed at least
2. Cash payment of at least 30% of the overdue 1. Annually
installment or 20% of the total outstanding amount 2. Quarterly
of loan, whichever is more; 3. Monthly
3. Cash payment of at least 20% of the overdue 4. Bi-weekly
installment or 30% of the total outstanding amount 196. What is the maximum tenor for any continuous
of loan, whichever is less; loan?
4. Cash payment of at least 20% of the overdue 1. 06 months
installment or 30% of the total outstanding amount 2. 09 months
of loan, whichever is more; 3. 12 months
190. Bank will consider the application for third time 4. 18 months
rescheduling into consideration upon receiving 197. As per which section of Bank Company Act 1991
……………………….. (amended up to 2013), Banks are forbidden to extent
1. Cash payment of at least 50% of the overdue any credit facility to a defaulter?
installment or 30% of the total outstanding amount 1. 27 (Ka Ka)
of loan, whichever is less; 2. 15 (Ka Ka)
2. Cash payment of at least 50% of the overdue 3. 5 (GA GA)
installment or 30% of the total outstanding amount 4. 26 (Gha)
of loan, whichever is more;
198. The Short Term Agriculture and Micro Credit if not 207. What is the financial threshold applicable for Small and
repaid within the fixed expiry date for repayment will be Medium Enterprises (SMEs) for Environmental Risk
considered past due\overdue Rating?
1. immediately 1. BDT 2.0 million.
2. after three months of the expiry date 2. BDT 2.5 million.
3. after six months of the expiry date 3. BDT 2.75 million.
4. after nine months of the expiry date 4. BDT 3.00 million.
199. Any continuous loan will be classified as “Substandard” 208. What is the financial threshold applicable for Real
if it is past due\overdue for Estate for Environmental Risk Rating?
1. for 02 months or beyond but less than 03 months 1. BDT 2.5 million.
2. for 03 months or beyond but less than 06 months 2. BDT 5.0 million.
3. for 06 months or beyond but less than 09 months 3. BDT 7.5 million.
4. for 09 months or beyond but less than 12 months 4. BDT 10 million.
200. Any continuous loan will be classified as “Doubtful” if it 209. Repayment Capacity of a business shall be
is past due\overdue for measured based on-
1. for 02 months or beyond but less than 03 months i. Cash Flow
2. for 03 months or beyond but less than 06 months ii. Collateral Security
3. for 06 months or beyond but less than 09 months iii. Clean CIB report
4. for 09 months or beyond but less than 12 months iv. Net worth of Directors
201. Any continuous loan will be classified as “Bad/Loss” if it 210. All of the followings are used to measure Term
is past due\overdue for Loan performance, except
1. for 09 months or beyond i. Enhancement of Repayment period
2. for 12 months or beyond ii. Number of Installment & Amount Overdue
3. for 18 months or beyond iii. Numbers of rescheduling
4. for 24 months or beyond iv. Debt-equity ratio
202. Any Demand loan will be classified as “Substandard” if it 211. As per CRM policy of the Bank, tenor of work
is past due\overdue for order financing is-
1. for 02 months or beyond but less than 03 months i. up to 12 months
2. for 03 months or beyond but less than 06 months ii. up to 24 months
3. for 06 months or beyond but less than 09 months iii. up to 36 months
4. for 09 months or beyond but less than 12 months iv. up to 48 months
203. Any continuous loan will be classified as “Doubtful” if it 212. To assess the eligibility of the customer for OD
is past due\overdue for (WO), following information are required for work order
1. for 02 months or beyond but less than 03 months financing, except-
2. for 03 months or beyond but less than 06 months a. Work awarding authority
3. for 06 months or beyond but less than 09 months b. Value of the work order
4. for 09 months or beyond but less than 12 months c. Status of progress of existing work
204. Any continuous loan will be classified as “Bad/Loss” if it d. Value of stock
is past due\overdue for 213. Following ratios are very important in Project
1. for 09 months or beyond Financing except?
2. for 12 months or beyond a) current ratio
3. for 18 months or beyond b) profitability ratio
4. for 24 months or beyond c) debt equity ratio
205. A classified demand loan having outstanding of Tk. 4.00 d) debt service coverage ratio
crore is under process for rescheduling for the first time. 214. Which is shown in details of the credit facility of
What would be the required down payment? a proposal?
a) Purpose
1. 5% of overdue amount but not less than 10.00 lac. b) Validity / Expiry
2. 10% of overdue amount but not less than 15.00 lac. c) Mode of Disbursement
3. 15% of overdue amount but not less than 20.00 lac. d) Nature of Credit Facility
4. 20% of overdue amount but not less than 25.00 lac. e) All of the above
206. A classified Continuous loan having outstanding of Tk. 215. Bill deduction rate against work order financing
6.00 crore is under process for rescheduling for the first does not depend on-
time. What would be the required down payment? a) value of work order
1. 5% of overdue amount but not less than 50.00 lac. b) Type of Work
2. 10% of overdue amount but not less than 65.00 lac. c) interest rate
3. 15% of overdue amount but not less than 70.00 lac. d) OD (WO) amount
4. 20% of overdue amount but not less than 75.00 lac.
216. Net working capital refers to- d. CAMELS rating of the Bank
a) total assets minus fixed assets 225. The Managing Director’s delegation for approval
b) current assets minus current liabilities of credit is being determined by the –
c) current assets minus inventories a. Bangladesh Bank
d) current assets b. Board of Directors
217. A loan amounting ______ % or above of Bank’s capital is c. Executive Committee of BoD
Large Loan. d. Audit Committee of BoD
a. 10% 226. _________ facility is provided on behalf of a
b. 15% customer as a commitment of future payment.
c. 35% a. Term Loans
d. 56% b. Cash Credit
218. Creation of different type of charges on a c. Overdraft
company to be done at ____________. d. Guarantee
a. Magistrate court
b. Sub-Registrar’s Office 227. Valuation of immovable property for facility
c. Land survey office exceeding Tk. _________ shall be done by Bank’s
d. Registrar of Joint Stock Companies & Firms enlisted Surveyor.
219. A customer wants to enjoy Cash Credit (H) a. Tk. 10.00 Lac
facility mortgaging land located within Narayangonj City b. Tk. 20.00 Lac
Corporation. In such case, the Forced Sale Value (FSV) of c. Tk. 25.00 Lac
the collateral should be _______ times of credit facility d. Tk. 50.00 Lac
sought by the customer. 228. . Post-dated cheque is generally an example of
a. 1.75 ____________.
b. 1.50 a. Charge document
c. 1.25 b. Primary security
d. 1.00 c. Collateral security
220. A customer wants to enjoy Cash Credit (H) d. Support security
facility mortgaging land located within pourashava area. 229. . All charge documents and mortgage documents
In such case, the Forced Sale Value (FSV) of the collateral should be vetted by ____________.
should be _______ times of credit facility as per credit a. Surveyor
policy. b. Legal counsel (BLA)
e. 1.75 c. Head of Branch
f. 1.50 d. Insurers
g. 1.25 230. Under the Single Borrower Exposure Limit, the
h. 1.00 Bank may allow non-funded limit to a customer
221. Cheque book is issued to the customer against maximum _______of Bank’s capital. (The customer is not
__________ to withdraw money. engaged in export business.)
a. Term Loan a. 10%
b. Continuous Loan b. 15%
c. Letter of Guarantee c. 20%
d. Overdraft (Work order) d. 35%
222. The pricing of Bank’s products is fixed/revised 231. Recurring debit transaction is not allowed against ______
through a committee is known as – except interest, incidental charges, etc.
a. Asset Liability Committee a. Term Loan
b. Management Committee b. Cash Credit (Hypo)
c. Head Office Credit Committee c. Overdraft General
d. Executive Committee d. Cash Credit Pledge
223. Rescheduling of Credit is done as per the circular 232 . If the constituent of working capital is “stock of work in
issued from ____________of Bangladesh Bank. process”, then it should be valued on the basis of ______,
a. Department of Off-site Supervision a. At Cost of goods sold
b. Department of Banking Inspection b. At market value
c. Banking Regulation & Policy Department c. At retail cost
d. Department of Financial Institutions & Markets d. At wholesale value
233. Except _______ are components of working capital.
224. Single Borrower Exposure Limit is determined on
i. Debtors’ value
the basis of ________. ii. Depreciation
a. Outstanding of loan and advances of the Bank iii. Cash in hand
b. Capital of the Bank iv. Stock
c. Classified loan of the Bank
 234 . Assessment of working capital is important for B. 4
__________. C. 5
i. Smooth operation D. 6
ii. Expansion of Business 245. How long it takes for an overdue loan to become Sub
iii. Long-term fund requirement Standard (SS)?
iv. None of the above A. 2 months
235. The pattern of the operating cycle follows __________. B. 3 months
a. Cash, procurement of RM, Work in process, Stock of C. 6 months
FGs, Receivables, Cash D. None
b. Procurement of RM, Work in process, Stock of FGs, 246. What does CIB stands for?
Receivables, Cash A. Customer Information Bureau
c. Cash, Work in process, procurement of RM, B. Credit Information Bureau
Receivables, Stock of FGs, C. Credential Information Bureau
d. Cash, procurement of RM, Stock of FGs, Work in D. None
process, Receivables 247. What will be the drawing power of a customer when stock
236. The higher the stock turnover, the ____________ the value is Tk. 2.00 crore, margin: 25%?
working capital requirement. A. Tk. 1.50 crore
a. Equal B. Tk. 1.60 crore
b. Lower C. Tk. 2.25 crore
c. Higher D. Tk. 4.00 Crore
d. All of the above 248. What is the single borrower funded limit of a bank?
237. Credit approval authority of the Board of Directors is A. 15% of bank’s capital
i. Unlimited B. 25% of bank’s capital
ii. Funded Tk 15 crore & Non Funded Tk 35.00 C. 30% of bank’s capital
crore. D. 35% of bank’s capital
iii. Upto Single borrower exposure limit 249. What will be the required down payment for 1 st time
iv. Funded 15% of Capital & Non Funded 35% of rescheduling a continuous loan of Tk. 2.00 crore?
Capital. A. 10%
238. The Primary Security of Cash Credit loan is B. 15%
i. Mortgage of Land C. 20%
ii. Hypothecation of Stock D. 25%
iii. Post dated cheque 250. Reschedule procedure must be completed within ____ after
iv. Insurance. giving the required down payment.
239. The Primary Security of Overdraft (work order) is A. 1 month
i. Mortgage of Land & Building B. 2 months
ii. Hypothecation of Stock C. 3 months
iii. Personal Guarantee of the Proprietors/Directors D. 4 months
iv. Assignment of Bill. 251. At least how many years financial is required to prepare CRG?
240. What is the usual tenure of a term loan? A. 1 year
A. 6 months B. 2 years
B. 2 years C. 3 years
C. 5 years D. 5 years
D. Both B & C 252. What is the collateral value proportion to be considered for a
241. What is the usual tenure of a time loan? property adjacent to City Corporation?
A. 6 months A. 1.50 times
B. 3 months B. 1.25 times
C. 9 months C. 1.75 times
D. All of the above D. None
242. How many broad categories are there in SME? 253. How many SME dedicated branches are there in UCBL?
A. 2 A. 1
B. 3 (Trading,Service,Manufacturing) 50,100,250 B. 2
C. 4 C. 3
D. 5 D. 4
243. Which of the following falls under SME broad category? 254. Highest ceiling of Loan Deposit Ratio is-
A. Trading a) Maximum 80% ,
B. Service b) Maximum 88%,
C. Manufacturing C) Maximum 90%,
D. All of the above d) Maximum 70%
244. How many loan classification categories are there? 255. How many types of securities are available to secure loan-
A. 2 a) 1
b) 2 267. In case of cash credit (CC) facility, ownership of stock
c) 3 remains with –
d) 4 (a) The borrower
256. How many parties are involved in guarantee? (b) The Bank
a) 1 (c) Both (a) & (b)
b) 2 (d) None of the above
c) 3 268. For adjustment purpose, management can extend the
d) 4 validity of a credit facility maximum –
257. How many types of charges are in practice to secure a loan- (a) Upto 3 months
a) 7 (b) Upto 5 months
b) 3 (c) Upto 9 months
c) 5 (d) Upto 6 months
d) 6 269. Letter of Disclaimer is required in case of:-
258. Provisioning for SME loan is- (a) Own godown
a) 0.25% of Limit (b) Rental godown
b) 5.00% of limit (c) Both (a) & (b)
c) 1.00% of limit (d) None of the above
d) 0.50% of limit 270. In case of OD(EM) facility, if tender value is Tk.4.00 lac
259. What is the primary security of HBL(Com) ? and margin is 25%, then the Pay Order (PO) to be issued for:-
a) Post dated Cheque (a) Tk.3.00 lac
b) Personal Guarantee (b) Tk.4.00 lac
c) Land & Building (c) Tk.5.00 lac
d) All of the above (d) None of the above.
260. Which party possesses the ownership of the leased 271. What does ‘RJSC & F’ stand for:
product in lease finance? (a) Registrar of Joint Stock Corporations & Farms
a) Bank (b) Registrar of Joint Security Companies & Farms
b) Client (c) Registrar of Joint Stock Companies & Firms
c) Both Bank & Client (d) Register of Joint Stock Companies & Farms
d) 3rd party Vendor 272. For financing to any drug store, the following
261. If the loan is fully secured by government / international document(s) is/are required-
Bank Guarantee then the numeric grade of CRG would be- (a) Trade license
a) 3 (b) Drug license
b) 5 (c) Both (a) & (b)
c) 4 (d) None of the above
d) 1 273. Which type(s) of financing a Bank can provide to a
262. If the CRG score of a firm is 66 then the grade is- contractor?
a) Good (a) OD(W/O)
b) Acceptable (b) OD(EM)
c) Marginal (c) BG(BB/PG)
d) Doubtful (d) All of the above
263. Pledge as a method of charging securities are defined in: 274. Fund confirmation certificate from work awarding
(A) Transfer of Property Act authority is required for the following facility:-
(B) Contract Act -1872 sec 126 (a) OD(G)
(C) Sale of goods Act (b) CC(H)
264. Charging Securities means: (c) HBL(Com.)
(A) Becoming owner of the security. (d) OD(W/O)
(B) Making security available as a cover for the said advance
(C) Selling /liquidating of the securities for adjustment of the loan 275. For credit purchase of a commodity, a customer may
without intimation/ approval of any other parties. require following credit facility from a Bank-
265. In a contract of guarantee, there are three parties. They are: (a) HBL(Com.)
(A) Promisor / Promisee / guarantee. (b) OD(EM)
(B) Promisee / guarantee / contractor. (c) OD(W/O)
(C) Debtor / creditor / guarantor. (d) BG(PG)
266. In case of provision for running bill, maximum amount of 276. For collateral located outside Pourashava, the coverage
OD(W/O) finance will be – should be:
(a) 40% of W/o value (a) 1.25 times of the proposed limit
(b) 50% of W/o value (b) 1.80 times of the proposed limit
(c) 35% of W/o value (c) 1.40 times of the proposed limit
(d) 30% of W/o value (d) 1.75 times of the proposed limit
277. Which of the following is a continuous loan?
(a) HBL(Com.) (C) Stock & Collateral.
(b) Time loan (d) Receivable & Payable.
(c) CC(H) 288. Banks grant advances to the borrowers for purchase of
(d) Lease Finance Machineries in which mode?
278. If cost of construction of a building is Tk.5.00 crore and (A) CC(H)
HBL(Com.) facility is provided for Tk.3.00 crore, what is the Debt- (B) OD(Gen)
Equity Ratio? (C) LTR
(a) 90 : 10 (D) Lease- Finance.
(b) 70 : 30 289. Letter of Continuity is taken from whom?
(c) 60 : 40 (A) Proprietor.
(d) 50 : 50 (B) Supplier.
279. What does ‘SPC’ stand for: (C) Owner of the Shop & Godown premises.
(a) Sustainable Property Certificate (d) Wife of the proprietor.
(b) Security Perfection Certificate 290. In practice which liability can be continue for a long period??
(c) Both (a) & (b) (A) Hire Purchase
(d) None of the above. (B) Lease Finance
280. What is the basic difference between OD (Gen) and CC (C) Car Loan
(Hypo)? (d) CC (Hypo)
A. Stock 291. Temporary Overdraft can be allowed on which account?
B. Security (A) Current Account.
C. Capacity (B) Saving Account.
D. None of the above (C) SOD Account.
281.Current Ratio is (d) None of above.
A. Quick assets / total liability 292. Which type of Advance can be repayment without any specific
B. Current assets /current liability date?
C. External Equities / Internal equities (A) LTR.
D. All of the above (B) LIM.
282. How many types of lien (C) CC(Hypo).
A. 03 (d) OAP
B. 05 293. Memorandum of Association is necessary for which type of
C. 06 Business formation?
D. 02 (A) Private Limited Company.
283. What does CAMELS stands for ? (b) Partnership Firm.
A. Capital adequacy , asset qualification ,Men power, (c) Proprietorship Firm
Earnings , Liquidity & sensitivity to market (d) A& B.
B. Capacity adequacy , Asset Quality , Management 294. “Form XII” reflects what?
equality ,liability & sensitivity to market (A) Partners.
C. Capital adequacy, Asset quality , Management Earnings, (B) Fixed Assets
Liquidity & sensitivity to market (C) Floating Assets.
D. None of the Above (D) Change of Directors & Shares.
284. What is Gross Profit Margin? 295. What can also be defined as a part of “Syndication Loan”?
A. Gross profit / Total sales (A) Large Loan
B. Net Profit / Total sales (B) Long Term Loan.
C. Operating profit / total sales (C) Bridge Finance.
D. None of the above (D) Temporary Overdraft.
285. What amount is required in 1st time reschedule of a Term 296. In a Mortgage what is specified? :
Loan? (A) Loan limit.
E. 10 % of Overdue or 15% of Outstanding. (B) Loan Period
F. 15 % of Overdue or 10% of Outstanding. (C) Interest Rate
G. 30 % of Overdue or 20% of Outstanding. (D) Immovable Property.
H. All of the above 297. “Assignment” can be charged on which type of finance?
286. Maximum what % of current remaining time to maturity (A) OD(GEN)
of a term loan may be extended? (B) OD (Work Order)
A. 35 % (C) OD (Ernest Money)
B. 25 % (D) Loan against imported merchandise.
C. 10 % 298. Which type of Charge does not give power to sale but only to
D. None retain the property?
287. Loan can be defined by: (A) Hypothecation
(A) Fixed Monthly Installments. (B) Lien
(B) Fixed Asset & Liabilities. (C) Pledge
(D) Set-off A. Cost price
299. Bad Loans & Advances make impact on: B. Market price
(A) Income C. Cost price or Market price whichever is higher
(B) Profit D. Cost price or Market price whichever is lower
(C) Reserve 311. CC (H) Drawing determined by?
(D) Bank’s Capital. A. Limit
300. Once repaid in full or in part, cannot be drawn again is : B. Drawing Power
(A) Loan C. Limit or Drawing Power whichever is lower
(B) Advance D. Limit or Drawing Power whichever is higher
(C) Financial Instrument. 312. The purpose of OD (EM) is
(D) All of Above. A. To participate in a bid/tender
301. The weight of relationship risk in CRG Report is……. B. To participate in auction
a) 10% C. All of the above
b) 12% D. None of the above
c) 18% 313. Primary security of OD (G) is
d) 50% A. Stock
302. In measuring creditworthiness, “Capacity” refers to B. Account Receivables
a) Willingness to repay the borrowed amount C. FDR
b) Ability to run business & generate sufficient cash D. None of the above
c) Financial Strength 314. Credit Rating Report is mandatory for facilities above
d) None of the above A. 2.00 crore
303. What is the basis of provisioning if the outcome is zero? B. 30 lac and above
a. 20% of outstanding C. 0.50 crore
b. 15% of outstanding D. None of the above
c. 10% of outstanding 315. Third Party Valuation is mandatory for land value above
d. 25% of outstanding A. 20.00 lac
304. What is the full form of IGPA? B. 50.00 lac
A. Irrevocable General Power of Attorney C. 25.00 lac
B. International Guideline Provision of Authentication D. None of the above
C. Implied Guideline Power of Authorization 316. Full form of BLA is
D. Inherent General Provision of Authorization A. Branch Legal Advisor
305. Rescheduled Amount should be repaid in ___________ B. Branch legal Advocate
installments. C. Bank Legal Advisor
A. Quarterly D. Bank Legal Advocate
B. Monthly 317. Which one is indirect charges-
C. Fortnightly A. Hypothecation
D. Yearly B. Lien
306. There are ______ Grading in terms of CRG- C. Set-off
A. 03 D. Mortgage
B. 09 318. NEC stands for -
C. 08 A. Non Encumbered Certificate
D. 04 B. Non Enclosure Certificate
307.All Un Classified loan other than SMA& CL will be treated as- C. Non Encryption Certificate
______? D. Non Encumbrance Certificate
A. Superior 319. For loan regularization purpose, the Management can
B. Standard extend the validity of a continuous credit facility for a period –
C. Special Mention Account (e) Upto 03 months
D. Bad/Loss (f) Upto 05 months
308. Which Loans will have to be reported to the CIB of (g) Upto 09 months
Bangladesh? (h) Upto 06 months
A. Superior 320. Which of the following working capital loan facility best
B. Standard suits a Customer, engaged in trading of perishable items?
C. Special Mention Account (e) Lease Finance
D. Bad/Loss (f) Overdraft (Genearl)
309. Full form of RSD? (g) Import finance
A. Riot, Strike & Demolition (h) None of the above
B. Risk, Steal, Demurrage 321. For collateral located outside pouroshabha, the coverage
C. Riot, Safety, Damage should be:
D. None of the above (a) 1.20 times of the proposed limit
310. Valuation of stock is done by? (b) 1.15 times of the proposed limit
 (c) 1.25 times of the proposed limit 333. If yearly operating expense of a firm is Tk.100.00 lac and no.
(d) 1.75 times of the proposed limit of operating cycle per year is 4, working capital requirement of
322. Which of the following is not a continuous loan? that firm will be-
(e) Overdraft (General) □ Tk.20 lac
(f) Lease Finance □ Tk.25 lac;
(g) CC(H) □ Tk.50 lac;
(h) None of the above □ None of the above.
323. In CRG which is not a parameter of Financial Risk? 334. Which of the followings is part of Current Asset?
E. Leverage □ Inventories
F. Liquidity □ Marketable Securities;
G. Security Coverage □ Receivables;
H. Profitability □ All of the above.
324. Which is the parameter of Business Risk in CRG? 335. Which of the followings is not a part of Current Liability?
E. Age of Business □ Accounts Payables
F. Business Outlook □ Short Term Loan;
G. Business Experience □ CC (H);
H. Both A & B □ Advance to suppliers.
325. How Many Components are there in CRG? 336. A customer has CC (H) limit of Tk. 120 Crore from our Bank.
A. 3 How much stock the customer must have to withdraw the full
B. 4 amount if margin is 40%?
C. 5 a) Tk. 300 crore
D. 6 b) Tk. 120 crore
326. The weight (Percentage) of Business Risk in CRG is……? c) Tk. 200 crore
A. 50 d) Tk. 180 crore
B. 18 Hints:100-40=60
C. 12 60=100=100/60*120=200
D. 10 337. A customer has CC (H) limit of Tk. 40.00 crore at 30% margin.
327. Corporate Guarantee is……? On a particular day the customer has stock of Tk. 30 crore. What is
E. Personal Security the drawing power of the customer?
F. Collateral Security a) Tk. 28 crore
G. Support Security b) Tk. 12 crore
H. All of the above c) Tk. 40 crore i.e. the whole limit
328. Assessment of working capital is important for d) Tk. 21 crore
__________. Hints: 30-30%=20.70=21
A. Smooth operation 338.Which one of the following is a clean loan?
B. Profit Maximization a) A Term Loan of Tk. 10 crore against collateral security of Tk.
C. All of the above 15.00 crore
D. None of the above b) A Demand Loan of Tk. 10 crore against collateral property of
329. Managing Director has authority to increase or decrease Tk. 12.00 crore
Interest Rate by……….% when mid rate prevails. c) A Time Loan of Tk. 10 crore without any collateral security
E. 1.00% d) A Continuous Loan of Tk. 5 crore against collateral security of
F. 1.50% Tk. 3 crore
G. 2.00% 339. Which one of the following is an example of Leverage
H. None of the above ratio?
330. Which is not a defaulted loan? a) Debt to total asset ratio
E. Bad and Loss b) Debt-Equity ratio
F. Substandard c) Debt to capital ratio
G. SMA d) All of the above
H. Doubtful 340. Which one is the correct formula of Cash Conversion
331. Provision is required against Classified Loan as Sub Cycle?
Standard. a) Inventory Turnover in Days + Receivables Turnover in Days –
E. 50% Payable Turnover in Days
F. 20% b) Inventory Turnover in Days + Receivables Turnover in Days
G. 100% c) Inventory Turnover in Days + Payable Turnover in Days -
H. None of the above Receivables Turnover in Days
332. Net working capital= d) Receivables Turnover in Days - Payable Turnover in Days
□ CA (Current Asset); 341. How many types of inventories are there in a
□ CL (Current Liability); manufacturing company?
□ CA-CL; a) One
□ None of the above. b) Two
c) Three c) Operating Activities, Financing Activities & Investing Activities
d) Four d) Operating Activities & Financing Activities
342. Which one is the correct formula to calculate Debt 351. A company has current liabilities of Tk.10 crore, long-
Service Coverage Ratio? term liabilities of Tk. 7 crore, current assets of Tk.15.00 crore and
a) EBITDA/(Interest + Current Maturity of Long-Term Debt) fixed assets of Tk.10 crore. What is the current ratio of the
b) EBIT/Interest company?
c) EBITDA/ Current Maturity of Long-Term Debt a) 1.50
d) EBITDA/Interest b) 1.47
343. A person has applied for a loan from our Bank for Tk. 10.00 c) 2.14
crore and offered landed properties to secure the loan. The d) 1.42
landed properties are located outside City Corporation area but 352. According to CRG template, which of the following is a
within Municipality/Pouroshova. What should be the Forced Sale component of Relationship Risk?
Value (FSV) of the mentioned properties? a) Experience
a) Tk. 12.50 crore b) Security Coverage
b) Tk. 15.00 crore c) Succession
c) Tk. 17.50 crore d) Account Conduct
d) Tk. 10.00 crore 353. According to CRG template, which of the following is not
Hints:10*1.50=15 a component of Business/Industry Risk?
344. A customer has CC (H) limit of Tk. 10.00 crore, SLC limit a) Size of Business
of Tk. 10.00 crore and LTR limit of Tk. 5.00 crore. What is the b) Industry growth
maximum amount of EOL the customer can avail over his CC (H) c) Market competition
limit? d) Team work
a) 10% of CC(H) limit i.e. Tk. 1.00 crore 354. Lending based solely on general standing and reputation
b) 10% of composite limit i.e. Tk. 2.50 crore of the borrower is known as:
c) 10% of total funded limit i.e. Tk. 1.50 crore a. Name Lending.
d) None of the above b. Customer Lending
Hints:CC10+LTR 5=15*10%=1.5 c. Company Lending
345. Which one of the following will not be treated as Default d. Fame Lending
loan? 355. Pricing of the Loan is set by?
a) Substandard a. CRMD
b) Doubtful b. Corporate Banking Division
c) Bad & Loss c. ALCO
d) All of the above are default loan d. General Banking Division
346. What is the rate of provision on Off-Balance Sheet 356. Renewal of credit proposal should be sent before
exposures? a. 02 months before expiry
a) 0.25% on total exposure b. 03 months before expiry
b) 1.00% after deducting cash margin/eligible collateral c. SMA status
c) 1.00% on total exposure d. Quarter end
d) 2.00% on total exposure 357. CRG is an important tool for which of the followings?
347. When interest is not charged in a loan account? a) Credit Risk Pricing
When the loan is classified as- b) Credit Risk Measurement
a) Substandard c) Credit Risk Mitigation
b) Doubtful d) Credit Risk Monitoring
c) Bad & Loss 358. Which of the following mode of charge is much used in
d) Interest is charged in all cases. Syndication loan?
348. If a credit facility is supported by Guarantee of other a) First Charge
Banks or by Government Guarantee, the Managing Director can b) Floating Charge
approve loan up to: c) Pari-passu charge
a) Whole limit d) Fixed Chrage
b) Tk. 10.00 crore 359. Which of the followings is a part of credit report
c) Tk. 15.00 crore analysis?
d) Tk. 7.50 crore □ Managerial Aspect;
349. Which one of the following is liquidity ratio? □ Technical Aspect;
a) Current Ratio □ Financial Aspect;
b) Quick Ratio □ All of the above.
c) Cash Ratio 360. Which of the followings is not primary source of credit
d) All of the above. investigation?
350. What are the parts of Cash Flow Statement? □ Personal Interview;
a) Operating Activities & Investing Activities □ Physical visit;
b) Investing Activities & Financing Activities □ Loan Application Form;
□ Financial Report. (c) Both (a) and (b)
361. Which of the followings is not secondary source of credit (d) Neither (a) nor (b).
investigation? 373. What is Risk?
□ Account Statement; a. Uncertainty of expected/budgeted outcome
□ CIB Report; b. Certainty of expected/budgeted outcome
□ Loan Application Form; c. Both (A+B)
□ Financial Report. d. None of the above
362. Liquidity Ratio indicates to meet future- 374. Common Equity Tier-1 capital does not include-
□ Short term financial obligation; a. Paid up Capital
□ Long term financial obligation; b. General Reserve
□ Both Short and Long term financial obligation; c. Retained earnings
□ None of the above. d. General Provisions
363. Asset Utilization (Activity) Ratio indicates to meet- 375. Treasury Bills are sold by
□ Short term financial obligation; a. Bangladesh Bank
□ Long term financial obligation; b. Security Exchange Commission
□ Working Capital obligation; c. Dhaka Stock exchange
□ None of the above. d. National Savings Bureau
364. Debt Service Coverage Ratio indicates to meet- 376. RWA denotes:
□ Interest Servicing obligation; a. Revenue Weight Analysis
□ Principal Servicing obligation; b. Risk Weighted Asset
□ Both Interest & Principal Servicing obligation; c. Risk Weighted Adequacy
□ None of the above. d. Risk Weightier Authority
365. Interest Coverage Ratio indicates to meet- 377. What does ECAI stand for?
□ Interest Servicing obligation; a. External Credit Assessment &Insurance
□ Principal Servicing obligation; b. External Credit Analysis Action
□ Both Interest & Principal Servicing obligation; c. External Credit Assessment Institution
□ None of the above. d. External Credit Analysis institution
366. Which indicates the profitability Ratio- 378. What does RMP stand for?
□ Gross Profit Margin; a. Risk Management Paper
□ Net Profit Margin; b. Review of Monetary Policy
□ Return on Equity; c. Both (A+B)
□ All the above. d. None of the above
367. Which does not indicate the Asset Utilization Ratio- 379. What does stand for CRAR in Basel-III?
□ Receivables Turnover; a. Capital to Risk- Weighted Asset Ratio
□ Payable Turnover; b. Credit Risk Assessment Report
□ Inventory Turnover; c. Both (A+B)
□ Return on Asset. d. None of the above
368. IRR is a return when NPV is- 380. According to BASEL-III, risk weight claims for equivalent to BB
□ =0; rating Grade- 1 rated customer is-
□ >0; a. 50%
□ <0; b. 20%
□ None of the above. c. 25%
369. A project is financially viable when NPV is-? d. 100%
□ =0; 381. Market Risk as exerted from BASEL-III is formed of ---
□ >0; a. Price risk
□ <0; b. Rate of return risk
□ None of the above. c. Exchange rate risk
370. Break Even Point is related to…. ? d. All of these
□ Project Finance 382. Statutory Deposit with Bangladesh Bank includes-
□ Working Capital Finance; a. CRR
□ Bridge Finance; b. SLR
□ None of the above. c. Both a & b
371. Capital Budgeting is a part of: 383. How many pillars are there in Basel III?
(a) Investment Decision A. 3
(b) Working Capital Management B. 4
(c) Marketing Management C. 5
(d) Capital Structure D. 6
372. Capital Budgeting deals with: 384. BIS stands for-
(a) Long-term Decisions a. Bank for International Settlement
(b) Short-term Decisions b. Bank for International Strategy
 c. Bank for Inter-nation Settlement 396. How many risk factors considered under stress testing-
d. None a. 4
385. The pillar ‘Market discipline’ implies to- b. 5
a. Credit disclosure c. 6
b. Public disclosure d. 3
c. Supervision 397. ICAAP stands for-
d. None a. Internal Capital Adequacy Assessment Process
386. As per Basel III ‘MCR’(Minimum Capital Requirement) now b. Internal Capital Assessment Adequacy Process
follows- c. Both a & b
a. Standardized Approach d. None
b. Basic indicator approach 398. Result of Stress Testing is submitted to -
c. Both a & b a. BRPD
d. None of the above b. DOS
387. Tier -I capital encompass in Basel -III - c. FSD
a. Common Equity Tier-1 d. None
b. Additional Tier-1 399. Basel –III is reported to the following Departments of BB -
c. Both a & b a. BRPD
d. Supplementary capital b. DOS
388. Tier II capital in Basel III includes- c. FSD
a. Dividend Equalisation Reserve d. None
b. General Reserve 400. Implementation of Basel –III in Bangladesh will complete
c. Both a & b at -
d. General Provisions a. 2019
389. Common equity Tier-1capital involve to the following one b. At the end of 2019
a. Paid up capital c. 2018
b. General provision d. 2020
c. Both a & b 401. National as well as International requirement of Minimum
d. None Capital Requirement as per Basel –III accord is -
390. In rating client getting equivalent to BB rating 2, risk weight - a. 10%, 8%
a. 20% b. 8%, 10%
b. 30% c. 8%, 10.50%
c. 50% d. None of the Above
d. 100% 402. Tier 1 Capital is also known as -
391. In rating client getting equivalent to BB rating 3 & 4, risk a. Going-Concern Capital
weight - b. Gone-Concern Capital
e. 20% c. Common Equity Capital
f. 30% d. None of the Above
g. 50% 403. Tier 2 Capital is also known as -
h. 100% a. Going-Concern Capital
392. In rating of the client If the client is un rated , risk weight – b. Gone-Concern Capital
a. 20% c. Common Equity Capital
b. 50% d. None of the Above
c. 100% 404. Components of Common Equity Tier 1 Capital are -
d. 125% a. Statutory Reserve
393. The client having worst performance having BB rating 5 or 6 b. General Reserve
risk weight- c. Retained Earnings
a. @ 50% d. All of the Above
b. @ 100% 405. Liquidity Coverage Ratio should be -
c. @ 150% a. Less than 100
d. @ 120% b. Greater than 100
394. Basel’ is c. Equal or Greater than 100
a. name of a Bank of Switzerland d. Equal or Less than 100
b. name of a city of Switzerland 406. Basel III implementation process starts from
c. name of a organization of Switzerland a. January, 2013
d. name of a community of Switzerland b. January, 2014
395. Stress Testing is carried out on- c. January, 2015
a. Quarterly basis d. January, 2016
b. Half Yearly Basis 407. Full implementation of Basel III in Bangladesh will be
c. Yearly Basis initiated.
d. Monthly Basis a. January, 2019
 b. January, 2020
c. January, 2021
d. January, 2022
408. What percentage of Risk Weighted Asset should be kept in
Common Equity Tier 1 capital under Basel III.
a. < 4.50%
b. > 4.50%
c. ≥ 4.50%
d. ≤ 4.50%
409. What percentage of Leverage Ratio should be kept under
Basel III.
a. 3%
b. 2%
c. 5%
d. 4%
410. What percentage of Liquidity Coverage Ratio should be kept
under Basel III.
a. ≥100%
b. ≤100%
c. >100%
d. <100%