EASY
Bihar Cooperative Bank Assistant Mains
IMPORTANT
Earn 100

Working capital gap means:

a. Current assets less current liabilities

b. Current assets less current liabilities other than short term bank borrowing

c. Fixed assets less current assets

d. Difference of long term sources and uses

50% studentsanswered this correctly

Important Questions on Loan Policy and Loan Documentation

EASY
Bihar Cooperative Bank Assistant Mains
IMPORTANT
Which among the following does not match?
EASY
Bihar Cooperative Bank Assistant Mains
IMPORTANT

Under Nayak Committee Recommendations, the quantum of the contribution of the borrower is _____ of the projected annual sales.

a. 5%

b. 10%

c. 20%

d. 25%

e. Need-based to give a debt-equity ratio of 2:1

EASY
Bihar Cooperative Bank Assistant Mains
IMPORTANT

Borrowers contribute margin for Working Capital limits from:

a. Capital and Reserves

b. Term loans and Debentures

c. Surplus of long term sources over long term uses

d. Current Assets

EASY
Bihar Cooperative Bank Assistant Mains
IMPORTANT

Formula for calculating drawing power in cash credit accounts is:

a. Value of security less margin

b. Balance in the account plus margin

c. Value of security plus margin

d. None of the above

MEDIUM
Bihar Cooperative Bank Assistant Mains
IMPORTANT

Current assets of a company are Rs.800 lac and other current liabilities Rs.80 lac. If the amount of networking capital is Rs.170 lac what will be the amount of excess borrowing, as per 2nd method of lending:

a. Rs.120 lac

b. Rs.80 lac

c. Rs.50 lac

d. Rs.30 lac

EASY
Bihar Cooperative Bank Assistant Mains
IMPORTANT
Under the Nayak Committee's Turnover method for working capital, the current ratio is:
EASY
Bihar Cooperative Bank Assistant Mains
IMPORTANT
Under 2nd method of lending of Tandon Committee, the current ratio is:
EASY
Bihar Cooperative Bank Assistant Mains
IMPORTANT
What does the term 'kite-flying' means?