Practice General Topics in Finance Questions and Answers

• As per RBI guidelines, 'High Risk' customers must have their KYC updated at least once every: 
• In a 'Working Capital' loan, the difference between Current Assets and Current Liabilities is known as: 
• Which of the following is a 'Charge' created on Movable Assets where the possession remains with the borrower? 
• Which ratio is most critical for a Credit Officer to assess the repayment capacity of a Term Loan? 
• What is the maximum loan amount under the 'Mudra' Shishu scheme? 
• 'Factoring' is a financial service that involves the purchase of: 
• A 'Letter of Credit' (LC) is a payment mechanism used primarily in: 
• Which of the following ratios is the best indicator of a company's ability to meet its immediate short-term obligations without relying on the sale of inve...
• In credit monitoring, what does 'SMA-2' classification imply regarding a loan account? 
• What is the 'Margin' in the context of a bank loan? 
• The SARFAESI Act, 2002 is NOT applicable to which of the following? 
• Under the Insolvency and Bankruptcy Code (IBC), what is the maximum time limit (including extensions) for completing the Corporate Insolvency Resolution Pr...
• What is the minimum default amount required to initiate insolvency proceedings under the IBC as of the current 2024–2026 norms? 
• In a 'Pledge', what is the legal relationship between the Bank and the Borrower? 
• Which of the following is a 'Primary Security' for a working capital loan? 
• Under the PMFME scheme, what is the maximum subsidy provided for a micro-food processing unit? 
• Which of the following is NOT a category under the MUDRA scheme? 
• For a loan to be classified under 'Agriculture - Infrastructure' category of PSL, the limit per borrower is: 
• The 'Interest Subvention Scheme' for short-term crop loans is available for loans up to: 
• What is a 'Nostro' account? 
• Which organization provides credit insurance to Indian exporters? 
• What is the 'EEFC' account? 
• Which of the following is a component of 'Tier 2' Capital? 
• 'Haircut' in the context of collateral valuation refers to: 
• What is 'Countercyclical Capital Buffer' (CCyB)? 
• What is the maximum limit for a single transaction through UPI (General)? 
• 'TReDS' is an electronic platform for facilitating the financing of: 
• 'Account Aggregator' (AA) framework in India is regulated by: 
• What is 'Float' in banking? 
• A 'Hybrid' instrument is one that: 
• What is the 'Base Rate' system replaced by for new loans since 2016? 
• Under 'Assignment', which of the following is usually transferred to the bank? 
• 'Gearing Ratio' is another name for which of the following? 
• The 'Banking Ombudsman' can pass an award for compensation for mental agony/harassment up to: 
• Consider the following statements regarding the Cash Reserve Ratio (CRR): 1. Banks earn interest on the CRR balances maintained with the RBI. 2. An increas...
• Regarding the SARFAESI Act, 2002, consider these statements: 1. It allows banks to auction properties without the intervention of a court. 2. It can be inv...
• Consider the following statements about Basel III norms: 1. Pillar 2 focuses on Supervisory Review Process. 2. Common Equity Tier 1 (CET1) is the highest q...
• Regarding Non-Performing Assets (NPAs), evaluate these statements: 1. An account is classified as Doubtful if it has remained in the sub-standard category ...
• Consider the following regarding Priority Sector Lending (PSL): 1. Export credit is considered a category under PSL. 2. Loans to MSMEs for activities like ...
• Evaluate the statements on the Banking Ombudsman Scheme: 1. There is no fee for filing a complaint before the Ombudsman. 2. The Ombudsman can act as a medi...