Consider the following statements:
Statement-I: Syndicated lending spreads the risk of borrower default across multiple lenders.
Statement-II: The syndicated loan can be a fixed amount/lump sum of funds, but cannot be a credit line.
Which one of the following is correct in respect of the above statements?

Options

(a)

Both Statement-I and Statement-II are correct and Statement-II explains Statement-I

(b)

Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I

(c)

Statement-I is correct, but Statement-II is incorrect*

(d)

Statement-I is incorrect, but Statement-II is correct

Answer

Answer not available

Economics › Banking Regulations

2022

With reference to the ‘Banks Board Bureau (BBB)’, which of the following statements are correct ?
1. The Governor of RBI is the Chairman of BBB.
2. BBB recommends for the selection of heads for Public Sector Banks.
3. BBB helps the Public Sector Banks in developing strategies and capital raising plans.
Select the correct answer using the code given below :

Options

(a)

1 and 2 only

(b)

2 and 3 only

(c)

1 and 3 only

(d)

1, 2 and 3

Answer

(B)

Economics › Banking Regulations

2020

“Gold Tranche” (Reserve Tranche) refers to

Options

(a)

a loan system of the World Bank

(b)

one of the operations of a Central Bank

(c)

a credit system granted by WTO to its members

(d)

credit system granted by IMF to its members

Answer

(D)

Economics › Banking Regulations

2020

What is the importance of the term “Interest Coverage Ratio” of a firm in India?
1. It helps in understanding the present risk of a firm that a bank is going to give loan to.
2. It helps in evaluating the emerging risk of a firm that a bank is going to give loan to.
3. The higher a borrowing firm’s level of Interest Coverage Ratio, the worse is its ability to service its debt.
Select the correct answer using the code given below:

Options

(a)

1 and 2 only

(b)

2 only

(c)

1 and 3 only

(d)

1, 2 and 3

Answer

(A)

Economics › Banking Regulations

2019

What was the purpose of Inter-Creditor Agreement signed by Indian banks and financial institutions recently?

Options

(a)

To lessen the Government of India’s perennial burden of fiscal deficit nd current account deficit

(b)

To support the infrastructure projects of Central and State Governments

(c)

To act as independent regulator in case of applications for loans of Rs. 50 crore or more

(d)

To aim at faster resolution of stressed assets of Rs. 50 crore or more which are under consortium lending

Answer

(D)

Economics › Banking Regulations

2019

Which of the following is not included in the assets of a commercial bank in India?

Options

(a)

Advances

(b)

Deposits

(c)

(e) Investments

(d)

d). Money at call and short notice

Answer

(B)

Economics › Banking Regulations

2019

The Chairman of public sector banks are selected by the

Options

(a)

Banks Board Bureau

(b)

Reserve Bank of India

(c)

Union Ministry of Finance

(d)

Management of concerned Bank

Answer

(A)

Economics › Banking Regulations

2018

Which one of the following best describes the term “Merchant Discount Rate” sometimes seen in news?

Options

(a)

The incentive given by a bank to a merchant for accepting payments through debit cards pertaining to that bank.

(b)

The amount paid back by banks to their customers when they use debit cards for ﬁnancial transactions for purchasing goods or services.

(c)

The charge to a merchant by a bank for accepting payments from his customers through the bank’s debit cards.

(d)

The incentive given by the Government to merchants for promoting digital payments by their customers through Point of Sale (PoS) machines and debit cards.

Answer

(C)

Economics › Banking Regulations

2018

With reference to the governance of public sector banking in India, consider the following statements:

1.Capital infusion into public sector banks by the Government of India has steadily increased in the last decade.
2.To put the public sector banks order, the merger of associate banks with the parent State Bank of India has been affected
Which of the statements given above is/are correct?

Options

(a)

1 only

(b)

2 only

(c)

Both 1 and 2

(d)

Neither 1 nor 2

Answer

(B)

Economics › Banking Regulations

2017

Which of the following statements best describes the- term ‘Scheme for Sustainable Structuring of Stressed Assets (S4A)’, recently seen in the news?

Options

(a)

It is a procedure for considering ecological costs of developmental schemes formulated by the Government.

(b)

It is a scheme of RBI for reworking the financial structure of big corporate entities facing genuine difficulties.

(c)

It is a disinvestment plan of the Government regarding Central Public Sector Undertakings.

(d)

It is an important provision in ‘The Insolvency and Bankruptcy Code’ recently implemented by the Government.

Answer

(B)