SOLVED CAIIB COMBINED PAPER 24:
1. Net worth = Rs 20 lac, Term liabilities = Rs 30 lac. Fixed Assets = Rs 48 lac and current assets = Rs 75 lac. If there is no intangible assets or the non current assets, calculate it's net working capital.
a. 1 lac
b. 2 lac
c. 3 lac
d. 4 lac
Ans - b
Explanation:
Here Net worth = capital + reserve = 20 lac
Since capital is a kind of liability hence liability = 20 lac
Liabilities = 30+20 = 50 lac
Assets = 48+75 = 123 lac
But as per balance sheet, Total assets = Total liabilities
Hence liabilities must also be 123 lac
So, out of 123 lac ( 123-50 = 73 ) i.e 73 lac will be CL
Hence NWC = CA-CL
= 75 - 73
= 2 lac
2. No collateral security is required for loan under MSME for manufacturing/production and providing or rendering of services upto Rs.
a. 1 lakh
b. 2 lakhs
c. 5 lakhs
d. 10 lakhs
Ans - C
3. Advances against pledge/hypothecation of agricultural produce sanctioned to farmers on or after 01.04.2013 upto Rs.... are covered under priority sector.
a. 10 Lakhs
b. 15 Lakhs
c. 25 Lakhs
d. 50 Lakhs
Ans - d
4. Which of the following statements is not true for an infrastructure project?
a. It has long gestation period
b. It reduces the risk for the lender as his funds get assured deployment for a long time.
c. The debt equity ratio is normally high for an infrastructure project
d. The implementation period is usually long
Ans - b
5. What bank should do to avoid asset-liability maturity mismatch that may arise out extending long tenor to infrastructure projects ?
a) Return on investment
b) Break- even analysis
c) Liquidity support from IDFC
d) Take-out financing arrangement
Ans - d
6. Equitable mortgage can be created ......
a. Anywhere in India.
b. Only at the place where the advance is granted.
c. Only at notified towns in India.
d. Only at the Head Office of the bank.
Ans - c
7. Capital is Rs. 300 lac, Reserves Rs. 50 lac, Term loan Rs. 400 lac, Bank cash credit Rs. 300 lac, Trade creditors Rs. 50 lac, provisions Rs. 50 lac, Net fixed assets Rs. 400 lac, inventories Rs. 200 lac, cash Rs. 50 lac, Receivables Rs. 200 lac, goodwill Rs. 50 lac. What is current ratio?
a. 1:1.17
b. 1:1.12
c. 1.12:1
d. 1.17:1
Ans - c
Explanation :
CA= 50+200+200= 450
CL= 300+50+50=400
CR= CA:CL= 450:400
i.e 1.12:1
8. Drawing power is calculated ......
a. On the basis of credit worthiness of the borrower.
b. By deducting margin from the value of the securities offered by the party.
c. Only on the basis of the limits sanctioned.
d. None of these.
Ans - b
9. In order to avoid the problem in delay in realization of bills, bank may take advantage of improved computer/communication network called .........
a. GUI
b. SFMS
c. ETF
d. SWIFT
Ans - b
10. MR. Raj want to invest some money by buying some stocks of ABC co. How can he assess the financial statement of the ABC co.?
a. by balance sheet
b. by EPS
c. by financial statement
d. all
Ans - d
11. As per company act the maximum period of financial period is ......
a. 9 Months
b. 12 Months
c. 15 Months
d. 18 Months
Ans - c
12. Sanctioned limit = Rs 3 lacs, Stocks = Rs 6 lacs, creditors = Rs 2 lacs, Mortgage of property = 50 lacs, margin = 30%. Calculate the DP.
a. 3 lacs
b. 5 lacs
c. 2 lacs
d. 4 lacs
Ans - a
Bcz DP is never beyond the sanctioned limit.
a. 1 lac
b. 2 lac
c. 3 lac
d. 4 lac
Ans - b
Explanation:
Here Net worth = capital + reserve = 20 lac
Since capital is a kind of liability hence liability = 20 lac
Liabilities = 30+20 = 50 lac
Assets = 48+75 = 123 lac
But as per balance sheet, Total assets = Total liabilities
Hence liabilities must also be 123 lac
So, out of 123 lac ( 123-50 = 73 ) i.e 73 lac will be CL
Hence NWC = CA-CL
= 75 - 73
= 2 lac
2. No collateral security is required for loan under MSME for manufacturing/production and providing or rendering of services upto Rs.
a. 1 lakh
b. 2 lakhs
c. 5 lakhs
d. 10 lakhs
Ans - C
3. Advances against pledge/hypothecation of agricultural produce sanctioned to farmers on or after 01.04.2013 upto Rs.... are covered under priority sector.
a. 10 Lakhs
b. 15 Lakhs
c. 25 Lakhs
d. 50 Lakhs
Ans - d
4. Which of the following statements is not true for an infrastructure project?
a. It has long gestation period
b. It reduces the risk for the lender as his funds get assured deployment for a long time.
c. The debt equity ratio is normally high for an infrastructure project
d. The implementation period is usually long
Ans - b
5. What bank should do to avoid asset-liability maturity mismatch that may arise out extending long tenor to infrastructure projects ?
a) Return on investment
b) Break- even analysis
c) Liquidity support from IDFC
d) Take-out financing arrangement
Ans - d
6. Equitable mortgage can be created ......
a. Anywhere in India.
b. Only at the place where the advance is granted.
c. Only at notified towns in India.
d. Only at the Head Office of the bank.
Ans - c
7. Capital is Rs. 300 lac, Reserves Rs. 50 lac, Term loan Rs. 400 lac, Bank cash credit Rs. 300 lac, Trade creditors Rs. 50 lac, provisions Rs. 50 lac, Net fixed assets Rs. 400 lac, inventories Rs. 200 lac, cash Rs. 50 lac, Receivables Rs. 200 lac, goodwill Rs. 50 lac. What is current ratio?
a. 1:1.17
b. 1:1.12
c. 1.12:1
d. 1.17:1
Ans - c
Explanation :
CA= 50+200+200= 450
CL= 300+50+50=400
CR= CA:CL= 450:400
i.e 1.12:1
8. Drawing power is calculated ......
a. On the basis of credit worthiness of the borrower.
b. By deducting margin from the value of the securities offered by the party.
c. Only on the basis of the limits sanctioned.
d. None of these.
Ans - b
9. In order to avoid the problem in delay in realization of bills, bank may take advantage of improved computer/communication network called .........
a. GUI
b. SFMS
c. ETF
d. SWIFT
Ans - b
10. MR. Raj want to invest some money by buying some stocks of ABC co. How can he assess the financial statement of the ABC co.?
a. by balance sheet
b. by EPS
c. by financial statement
d. all
Ans - d
11. As per company act the maximum period of financial period is ......
a. 9 Months
b. 12 Months
c. 15 Months
d. 18 Months
Ans - c
12. Sanctioned limit = Rs 3 lacs, Stocks = Rs 6 lacs, creditors = Rs 2 lacs, Mortgage of property = 50 lacs, margin = 30%. Calculate the DP.
a. 3 lacs
b. 5 lacs
c. 2 lacs
d. 4 lacs
Ans - a
Bcz DP is never beyond the sanctioned limit.