Top 50+ Solved Securities for Advances MCQ Questions Answer
Q. Which one of the following is the ratio of the loan principal to the appraised value?
a. Combined Loan To Value: (CLTV) ratio
b. Loan-to-Value Ratio
c. Mortgage Loan
d. Statutory Liquidity Ratio
Q. What is the product of the share price and number of the company's outstanding ordinary shares?
a. Market Capitalization
b. Market Price
c. Market Trend
d. Treasury Stock
Q. Which one of the following pools money from various investors in order to purchase securities?
a. Fund derivative
b. Money fund
c. Mutual fund
d. Pension fund
Q. Which one of the following is the rate at which the RBI lends money to commercial banks in the eventof any shortfall of funds?
a. Benchmark Prime Lending Rate
b. Annual Percentage Rate
c. Bank Rate
d. Repo Rate
Q. When financial institutions and banks undertake activities related to banking like investment, issue ofdebit and credit card etc then it is known as _____________________.
a. Internet banking
b. Universal banking
c. Virtual Banking
d. Wholesale banking
Q. Collateral securities can be _____?
a. Tangible
b. Intangible in the shape of personal guarantee of a third party
c. security given to get credit facilities/loan
d. All of the above
Q. The Short-Term Crop Loan given to Farmers are generally for a period of _____?
a. 3 months
b. 6 months
c. 9 months
d. 12 months
Q. Which of the following is a borrowing facility/loan advance _____?
a. Term finance
b. Performance guarantee
c. Bill received under letter of credit
d. All the above
Q. Pledge of advance is made against ______?
a. Gold
b. Commodities
c. Coins and notes
d. All the above
Q. Which of the following are covered under pledge?
a. Actual delivery of the goods
b. Factory type pledge
c. Constructive delivery of the goods
d. All the above
Q. What is the minimum period of medium and long-term loans?
a. 12 months
b. 18 months
c. 24 months
d. 36 months
Q. The most risky charge from a banker’s point of view is ______?
a. Pledge
b. Hypothecation
c. Mortgage
d. Lien
Q. An equitable mortgage can be created in respect of _______?
a. Government securities
b. Real estate
c. Wheat in a godown
d. Life Policies
Q. A charge where there is neither the transfer of ownership nor the possession is called ______?
a. Hypothecation
b. Lien
c. Pledge
d. Mortgage
Q. The liability of the mortgager is gradually reduced in the case of _______?
a. Equitable mortgage
b. Legal mortgage
c. Usufructuary mortgage
d. Conditional mortgage