EASY
Bihar Cooperative Bank Assistant Mains
IMPORTANT
Earn 100

Under the Nayak Committee's Turnover method for working capital, the current ratio is:

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Important Questions on Loan Policy and Loan Documentation

EASY
Bihar Cooperative Bank Assistant Mains
IMPORTANT
Hand Book Of Banking Information>Chapter 2 - Loan Policy and Loan Documentation>TEST YOUR SELF>Q 30
Under 2nd method of lending of Tandon Committee, the current ratio is:
EASY
Bihar Cooperative Bank Assistant Mains
IMPORTANT
Hand Book Of Banking Information>Chapter 2 - Loan Policy and Loan Documentation>TEST YOUR SELF>Q 31
What does the term 'kite-flying' means?
EASY
Bihar Cooperative Bank Assistant Mains
IMPORTANT
Hand Book Of Banking Information>Chapter 2 - Loan Policy and Loan Documentation>TEST YOUR SELF>Q 32

Banks sanctions a Working Capital term loan for which of the following purposes?

a. To provide a margin for the term loan

b. To provide a margin for working capital

c. To provide money for daily expenses of all kinds

d. To provide funds for meeting urgent expenses of working capital

e. None of the above

EASY
Bihar Cooperative Bank Assistant Mains
IMPORTANT
Hand Book Of Banking Information>Chapter 2 - Loan Policy and Loan Documentation>TEST YOUR SELF>Q 1
If a banker allows an advance by keeping 25% margin and the amount of loan is Rs. 1 lac, the value of security would be:
EASY
Bihar Cooperative Bank Assistant Mains
IMPORTANT
Hand Book Of Banking Information>Chapter 2 - Loan Policy and Loan Documentation>TEST YOUR SELF>Q 2
Firm trading in goods and services takes an insurance policy for various risks for Rs. 15 lacs, whereas they maintain average inventory in the range of Rs.20 lac. Unfortunately, a fire takes place, and the goods worth Rs.4 lac are destroyed. What will be the amount of insurance claim the party will be able to obtain from the insurance company in case their claim is accepted:
HARD
Bihar Cooperative Bank Assistant Mains
IMPORTANT
Hand Book Of Banking Information>Chapter 2 - Loan Policy and Loan Documentation>TEST YOUR SELF>Q 3
A business firm has been sanctioned working capital limits of ₹6 lac at 25% margin by the bank and book debt limit of₹4  lac at 50% margin. What will be the total margin requirement to avail the limit fully?
EASY
Bihar Cooperative Bank Assistant Mains
IMPORTANT
Hand Book Of Banking Information>Chapter 2 - Loan Policy and Loan Documentation>TEST YOUR SELF>Q 4
An MSE has been sanctioned working capital limits against the actual level of stock which normally remains around 30% of the annual sale. The annual sales are Rs.100 lac. What should be the value of insurance policy if the limit is Rs.22.50 lac, by maintaining 25% margin on stocks? 
EASY
Bihar Cooperative Bank Assistant Mains
IMPORTANT
Hand Book Of Banking Information>Chapter 2 - Loan Policy and Loan Documentation>TEST YOUR SELF>Q 5
Your branch has sanctioned working capital limit of Rs.9 lac to a partnership firm which submits stock report with stocks worth Rs. 28 lac and sundry creditors of Rs.18 lac. The margin in the account is only 20%, the unit being an SS1 unit. What is the maximum amount up to which the limit can be allowed to be availed by the party?