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    Question

    Banks prepare a CMA Report as part of the credit

    appraisal process . What is the full form of CMA Report?  
    A Credit Maintenance Appraisal Report Correct Answer Incorrect Answer
    B Cash Maintenance Arrangement Report Correct Answer Incorrect Answer
    C Credit Management Appraisal Report Correct Answer Incorrect Answer
    D Credit Monitoring Arrangement Report Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Credit Monitoring Arrangement (CMA) format is a report on the Past and Projected Performance of the applicant. It has an aim to understand Financial Health. It also provides information as to how the applicant has procured funds and used them in past 2 years and how it will be done in the next 3 years. Basically, CMA ensures sanctioning of funds to sound businesses only.   

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