Friday 30 June 2017

Banking Awareness,


Q1. __________ an asset, including a leased asset, becomes non­ performing when it ceases to generate income for the bank.
(a) NPA
(b) KCC
(c) NPV
(d) GDP
(e) GNP

Q2. NPA stands for- 
(a) National ­performing Assets 
(b) New ­performing Assets 
(c) Non ­production Assets 
(d) Non ­performing Assembly
(e) Non ­performing Assets

Q3. MUDRA is a financial institution has been set up by Government of India for development and refinancing micro-units’ enterprises. What is the meaning of "A" in MUDRA?
(a) Agency
(b) Association
(c) Assembly
(d) Agent
(e) Alert

Q4. MUDRA stands for- 
(a) Micro Units Development & Refinance Agent
(b) Medium Units Development & Refinance Association
(c) Micro Units Department & Refinance Agency 
(d) Micro Units Development & Refinance Agency
(e) Micro Unique Development & Refinance Assembly

Q5. India was one of the first in Asia to recognise the effectiveness of the EPZ model in promoting exports. EPZ stands for-
(a) Export Point Zone
(b) External Processing Zone
(c) Export Production Zone
(d) Export Processing Zone
(e) Export Processing Zonal

Q6. Asia's first EPZ was set up in-
(a) Kandla, Gujarat
(b) Indore, Madhya Pradesh
(c) Kolhapur, Maharashtra
(d) Kochin, Kerala
(e) Haridwar, Uttarakhand

Q7. NPA is a loan or an advance where interest and/or instalment of principal remain overdue for a period of more than ______ days in respect of a term loan.
(a) 100 days
(b) 30 days
(c) 90 days
(d) 60 days
(e) 120 days

Q8. NPA is a loan or an advance where?
(a) the instalment of principal or interest there on remains overdue for one crop season for long duration crops.
(b) the account remains ‘out of order’ in respect of an Overdraft/Cash Credit (OD/CC).
(c) the instalment of principal or interest there on remains overdue for two crop seasons for short duration crops.
(d) All of the above
(e) None of the above

Q9. The purpose of MUDRA is to provide funding to the non-corporate small business sector through various Last Mile Financial Institutions like-
(a) Banks
(b) NBFCs
(c) MFIs 
(d) All of the above
(e) None of the above

Q10. MUDRA Bank, a Non-Banking Finance Company as MUDRA Ltd has been set up as a subsidiary of............?
(a) SIDBI
(b) IDBI
(c) RBI
(d) NABARD
(e) SBI

Q11. In which among the following year Asia's first Export Processing Zone (EPZ) was set up?
(a) 1959
(b) 1971
(c) 1965
(d) 1956
(e) 1975

Q12. What is the meaning of "E" in SEZs?
(a) Essential
(b) Economic
(c) Electronic
(d) Effective
(e) None of the above

Q13. Banks are required to classify NPA further into the ___________ categories based on the period for which the asset has remained non­performing and the realisability of the dues.
(a) One 
(b) Three
(c) Two
(d) Four
(e) Six

Q14. Which among the following are not the categories of NPA?
(a) Sub­standard Assets
(b) Profit Assets
(c) Doubtful Assets
(d) Loss Assets
(e) None of the above

Q15. PMMY were launched on 08 April 2015 by the Hon’ble Prime Minister Narendra Modi. What is the full form of PMMY?
(a) Pradhan Manager MUDRA Yojana 
(b) Pradhan Mantri MUDRA Yatra 
(c) Pradhan Mantri MUDRA Yojana
(d) Pramukh Mantri MUDRA Yojana 
(e) None of the above


Solutions

S1. Ans.(a)
Sol. Non ­performing Assets (NPA) is an asset, including a leased asset, becomes non­ performing when it ceases to generate income for the bank.

S2. Ans.(e)
Sol. NPA stands for Non ­performing Assets.

S3. Ans.(a)
Sol. MUDRA, which stands for Micro-Units Development & Refinance Agency Ltd, is a financial institution being set up by Government of India for development and refinancing micro-units’ enterprises. 

S4. Ans.(d)
Sol. MUDRA, which stands for Micro-Units Development & Refinance Agency Ltd, is a financial institution being set up by Government of India for development and refinancing micro-units’ enterprises. It was announced by the Hon’ble Finance Minister while presenting the Union Budget for FY 2016. The purpose of MUDRA is to provide funding to the non-corporate small business sector through various Last Mile Financial Institutions like Banks, NBFCs and MFIs.

S5. Ans.(d)
Sol. India was one of the first in Asia to recognise the effectiveness of the Export Processing Zone (EPZ) model in promoting exports, with Asia's first EPZ set up in Kandla, Gujarat in 1965. 

S6. Ans.(a)
Sol. India was one of the first in Asia to recognise the effectiveness of the Export Processing Zone (EPZ) model in promoting exports, with Asia's first EPZ set up in Kandla, Gujarat in 1965. 

S7. Ans.(c)
Sol. A non ­performing asset (NPA) is a loan or an advance where interest and/or installment of principal remain overdue for a period of more than 90 days in respect of a term loan.

S8. Ans.(d)
Sol. A non ­performing asset (NPA) is a loan or an advance where;
1. interest and/or installment of principal remain overdue for a period of more than 90 days in respect of a term loan.
2. the account remains ‘out of order’ in respect of an Overdraft/Cash Credit (OD/CC).
3. the bill remains overdue for a period of more than 90 days in the case of bills purchased and discounted.
4. the instalment of principal or interest there on remains overdue for two crop seasons for short duration crops.
5. the instalment of principal or interest there on remains overdue for one crop season for long duration crops.
6. the amount of liquidity facility remains outstanding for more than 90 days, in respect of a securitisation transaction undertaken in terms of guidelines on securitisation dated February 1, 2006.
7. in respect of derivative transactions, the overdue receivables representing positive mark-to-market value of a derivative contract, if these remain unpaid for a period of 90 days from the specified due date for payment.

S9. Ans.(d)
Sol. MUDRA, which stands for Micro Units Development & Refinance Agency Ltd, is a financial institution being set up by Government of India for development and refinancing micro units’ enterprises. It was announced by the Hon’ble Finance Minister while presenting the Union Budget for FY 2016. The purpose of MUDRA is to provide funding to the non-corporate small business sector through various Last Mile Financial Institutions like Banks, NBFCs and MFIs. 

S10. Ans.(a)
Sol. MUDRA Bank, a Non Banking Finance Company as MUDRA Ltd has been set up as a subsidiary of SIDBI.

S11. Ans.(c)
Sol. India was one of the first in Asia to recognize the effectiveness of the Export Processing Zone (EPZ) model in promoting exports, with Asia's first EPZ set up in Kandla, Gujarat in 1965. With a view to overcome the shortcomings experienced on account of the multiplicity of controls and clearances; absence of world-class infrastructure, and an unstable fiscal regime and with a view to attract larger foreign investments in India, the Special Economic Zones (SEZs) Policy was announced in April 2000.

S12. Ans.(b)
Sol. SEZs stands for Special Economic Zones.

S13. Ans.(b)
Sol. Banks are required to classify non­performing assets further into the following three categories based on the period for which the asset has remained non­performing and the realisability of the dues:
1. Sub­standard Assets
2. Doubtful Assets
3. Loss Assets

S14. Ans.(b)
Sol. Banks are required to classify non­performing assets further into the following three categories based on the period for which the asset has remained non­performing and the realisability of the dues:
1. Sub­standard Assets
2. Doubtful Assets
3. Loss Assets

S15. Ans.(c)
Sol. PMMY stands for Pradhan Mantri MUDRA Yojana.

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