Question Bank

SME Business Division

1. What is the usual tenure of a term loan?

A. 6 months
B. 2 years
C. 5 years
D. Both B & C

2. What is the usual tenure of a time loan?

A. 6 months
B. 3 months
C. 9 months
D. All of the above

3. Which of the following will not fall under SME?

A. M/s. Alam Enterprise
B. Mohammed Liakat Ali
C. Lily Corporation
D. Kamal & sons

4. What is the minimum manpower requirement for a service concern to be SME?

A. 150
B. 100
C. 120
D. 200

5. What is the minimum manpower requirement for a manufacturing concern to be SME?

A. 100
B. 120
C. 150
D. 250

6. How many broad categories are there in SME?

A. 2
B. 3
C. 4
D. 5

7. Which of the following falls under SME broad category?

A. Trading
B. Service
C. Manufacturing
D. All of the above

8. How many loan classification categories are there?

A. 2
B. 4

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C. 5
D. 6

9. How long it takes for an overdue loan to become Sub Standard (SS)?
A. 2 months
B. 3 months
C. 6 months
D. None

10. Land and buildings are the primary security for CC(Hypo) Loan.
A. True
B. False

11. What does CIB stands for?

A. Customer Information Bureau
B. Credit Information Bureau
C. Credential Information Bureau
D. None

12. What will be the drawing power of a customer when stock value is Tk. 2.00 crore, margin: 25%?
A. Tk. 1.50 crore
B. Tk. 1.60 crore
C. Tk. 2.25 crore
D. Tk. 4.00 Crore

13. What is the single borrower funded limit of a bank?

A. 15% of bank’s capital
B. 25% of bank’s capital
C. 30% of bank’s capital
D. 35% of bank’s capital

14. What will be the required down payment for 1st time rescheduling a continuous loan of Tk. 2.00
crore?
A. 10%
B. 15%
C. 20%
D. 25%

15. Which of the following is a post import finance?

A. CC(Hypo)
B. LTR
C. SLC
D. HBL

16. Reschedule procedure must be completed within ____ after giving the required down payment.
A. 1 month
B. 2 months
C. 3 months

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 D. 4 months

17. At least how many years financial is required to prepare CRG?

A. 1 year
B. 2 years
C. 3 years
D. 5 years

18. What is the collateral value proportion to be considered for a property adjacent to City
Corporation?
A. 1.50 times
B. 1.25 times
C. 1.75 times
D. None

19. How many SME dedicated branches are there in UCBL?

A. 1
B. 2
C. 3
D. 4

20. In case of CC(Hypo), the godown of the customer remains in bank’s full control.
A. True
B. False

21. Highest ceiling of Loan Deposit Ratio is-

a) Maximum 80% ,
b) Maximum 88%,
C) Maximum 90%,
d) Maximum 70%

22. How many types of securities are available to secure loan-

a) 1
b) 2
c) 3
d) 4

23. How many parties are involved in guarantee?

a) 1
b) 2
c) 3
d) 4
24. How many types of charges are in practice to secure a loan-
a) 7
b) 3
c) 5
d) 6

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 25. Provisioning for SME loan is-
a) 0.25% of Limit
b) 5.00% of limit
c) 1.00% of limit
d) 0.50% of limit

26. LBPD is a -
a) Demand Loan
b) Time Loan
c) Term Loan
d) both A & B

27. Time loan is a forced loan-

a) True
b) False

28. What is the maximum tenor for OD(WO) finance-

a) 36 months
b) 18 months
c) 12 months
d) 24months

29. If the loan is overdue for more than 6 months it becomes-

a) SMA
b) SS
c) DF
d) BL

30. Post dated cheque is a charge document-

a) True
b) False

31. Which one of the following is not a negotiable instrument?

a) Cheque
b) Bill of Exchange
c) Pay Order
d) All of the above

32. What is the primary security of HBL(Com) ?

a) Post dated Cheque
b) Personal Guarantee
c) Land & Building
d) All of the above

33. Which of the following facility is funded?

a) Bank Guarantee
b) LBPD
c) Acceptance

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d) SLC/ULC

34. FERA Stands for:

A. Foreign Exchange Regulatory Act
B. Foreign Exchange Regulation Act
C. Foreign Exchange Regulation Amendment
D. Foreign Exchange Regulatory Authority

35. What is the primary security of LIM -

a) Imported Stock
b) Personal Guarantee
c) Post dated Cheque
d) both a & C

36. Which party possesses the ownership of the leased product in lease finance?
a) Bank
b) Client
c) Both Bank & Client
d) 3rd party Vendor

37. Assignment of bill is a primary security of –

a) OD (WO)
b) BG
C) OD(EM)
d) Bid Bond

38. If the loan is fully secured by government / international Bank Guarantee then the numeric
grade of CRG would be-
a) 3
b) 5
c) 4
d) 1

39. If the CRG score of a firm is 66 then the grade is-

a) Good
b) Acceptable
c) Marginal
d) Doubtful

40. Pledge as a method of charging securities are defined in:

(A) Transfer of Property Act
(B) Contract Act -1872
(C) Sale of goods Act

41. Charging Securities means:

(A) Becoming owner of the security.
(B) Making security available as a cover for the said advance

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(C) Selling /liquidating of the securities for adjustment of the loan without intimation/ approval of any
other parties.

42. Which one of the following statement is true?

(A) Bank can easily sanction any amount of loan to a company with adequate security
(B) Bank can sanction as loan only 15% of its total capital to a single borrower
(C) Bank can make loans and advances against the security of its own share only when face value of
such

43. In a contract of guarantee, there are three parties. They are:

(A) Promisor / Promisee / guarantee.
(B) Promisee / guarantee / contractor.
(C) Debtor / creditor / guarantor.

44. Can Public Limited Company give guarantee?

(A) Yes, if it’s Memorandum permits
(B) Yes, if Registrar of Joint Stock Companies gives permission in writing
(C) Yes, Controller of Capital Issues permits

45. An advance or any portion of an advance or interest thereon remaining overdue for one year or
more but less than three years should be classified:
(A) Substandard
(B) Doubtful
(C) Bad

46. In case of 'Cash Credit' advance:

(A) Both the limit and the drawing power are variable
(B) Limit is fixed but the drawing power is variable
(C) Drawing power is fixed but limit is variable

47. Floating charge is a charge over the present and future assets of a Company:
(A) No
(B) Yes

48. Advances are traditionally divided into following categories:

(A) Cash Credit, Overdraft and Loan
(B) Loan, Cash Credit, Overdraft, Bill Purchased & discounting

49. Cash Credit (CC) is a separate account having drawing power and a limit for drawing but no validity
period:
(A) True
(B) False

50. Pledge and hypothecation are related to movable properties and mortgage relates to immovable
properties-
(A) True
(B) False

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 51. Classified loans and advances mean:
(A) Loans and advances which are overdue and sticky
(B) Loans and advances the recovery of which is uncertain and against which provision is to be made.
(C) Loans and advances which are considered as loss

52. In case of Hypothecation the possession of the merchandise is held with the:
(A) Banker / Lender
(B) Borrower
(C) Negotiator

53. In case of provision for running bill, maximum amount of OD(W/O) finance will be –
(a) 40% of W/o value
(b) 50% of W/o value
(c) 35% of W/o value
(d) 30% of W/o value

54. What does ‘UPAS’ stand for:-

(a) Unique Payment At Sight
(b) Universal Payment At Sight
(c) Usance Payment At Sight
(d) None of the above

55. In case of cash credit (CC) facility, ownership of stock remains with –
(a) The borrower
(b) The Bank
(c) Both (a) & (b)
(d) None of the above

56. For adjustment purpose, management can extend the validity of a credit facility maximum –
(a) Upto 3 months
(b) Upto 5 months
(c) Upto 9 months
(d) Upto 6 months

57. Letter of Disclaimer is required in case of:-

(a) Own godown
(b) Rental godown
(c) Both (a) & (b)
(d) None of the above

58. What does ‘SWIFT’ stand for:-

(a) Society for Worldwide International Financial Transaction
(b) Society for Worldwide International Financial Telecommunication
(c) Society for Worldwide Interbank Financial Telecommunication

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(d) Society for Worldwide Interbank Financial Transaction

59. In case of OD(EM) facility, if tender value is Tk.4.00 lac and margin is 25%, then the Pay Order (PO)
to be issued for:-
(a) Tk.3.00 lac
(b) Tk.4.00 lac
(c) Tk.5.00 lac
(d) None of the above.

60. What does ‘RJSC & F’ stand for:

(a) Registrar of Joint Stock Corporations & Farms
(b) Registrar of Joint Security Companies & Farms
(c) Registrar of Joint Stock Companies & Firms
(d) Register of Joint Stock Companies & Farms

61. For financing to any drug store, the following document(s) is/are required-
(a) Trade license
(b) Drug license
(c) Both (a) & (b)
(d) None of the above

62. Which type(s) of financing a Bank can provide to a contractor?

(a) OD(W/O)
(b) OD(EM)
(c) BG(BB/PG)
(d) All of the above

63. Fund confirmation certificate from work awarding authority is required for the following facility:-
(a) OD(G)
(b) CC(H)
(c) HBL(Com.)
(d) OD(W/O)

64. For credit purchase of a commodity, a customer may require following credit facility from a Bank-
(a) HBL(Com.)
(b) OD(EM)
(c) OD(W/O)
(d) BG(PG)

65. For collateral located outside Pourashava, the coverage should be:
(a) 1.25 times of the proposed limit
(b) 1.80 times of the proposed limit
(c) 1.40 times of the proposed limit

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(d) 1.75 times of the proposed limit

66. Which of the following is a continuous loan?

(a) HBL(Com.)
(b) Time loan
(c) CC(H)
(d) Lease Finance

67. What does ‘LTR’ stand for:

(a) Long Term Recovery
(b) Liability against Trust Receipt
(c) Loan against Trust Receipt
(d) None of the above

68. What does ‘LIM’ stand for:

(a) Liability against Imported Merchandise
(b) Loan against International Merchandise
(c) Loan against Imported Merchandise
(d) None of the above

69. If cost of construction of a building is Tk.5.00 crore and HBL(Com.) facility is provided for Tk.3.00
crore, what is the Debt-Equity Ratio?
(a) 90 : 10
(b) 70 : 30
(c) 60 : 40
(d) 50 : 50

70. What does ‘SPC’ stand for:

(a) Sustainable Property Certificate
(b) Security Perfection Certificate
(c) Both (a) & (b)
(d) None of the above.

71. What is the basic difference between OD (Gen) and CC (Hypo)?

A. Stock
B. Security
C. Capacity
D. None of the above

72. Current Ratio is

A. Quick assets / total liability
B. Current assets /current liability
C. External Equities / Internal equities
D. All of the above

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73. How many types of lien
A. 03
B. 05
C. 06
D. 02

74. What does CAMELS stands for ?

A. Capital adequacy , asset qualification ,Men power, Earnings , Liquidity & sensitivity to market
B. Capacity adequacy , Asset Quality , Management equality ,liability & sensitivity to market
75. Capital adequacy, Asset quality , Management Earnings, Liquidity & sensitivity to market
76. None of the Above

77. What is Gross Profit Margin?

A. Gross profit / Total sales
B. Net Profit / Total sales
C. Operating profit / total sales
D. None of the above

78. What amount is required in 1st time reschedule of a Term Loan?

E. 10 % of Overdue or 15% of Outstanding.
F. 15 % of Overdue or 10% of Outstanding.
G. 30 % of Overdue or 20% of Outstanding.
H. All of the above

79. There are 10 terms in Incoterm-2010 .

C. True
D. False

80. What is the Maximum tenure of PAD ?

E. 30 days
F. 21 days
G. 45 days
H. None

81. Shipping Document is the primary security of SLC

A. True
B. False

82. UCPDC stands for

E. Uniform Customs and practice for Documentary Credit
F. Uniformed Customs and practice for Documentary Credit
G. Unified Customs and practice for Documentary Credit
H. None

83. OAP is a Forced Loan

A. True
B. False

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 84. Negotiable instrument Act enforced at
E. 1981
F. 1881
G. 1901
H. 2001
85. Bank Guarantee and LC are two forms of non-funded facilities.
A . True
B. False

86. Which rule is currently used in Bank to Bank reimbursement under Documentary Credit?
E. URR 525
F. URR 725
G. URR 600
H. None

87. Memorandum of association defines objects of Company’s existence and operations

A . True
B. False

88. FUBS stands for

E. Flexcube uniformed Banking System
F. Flexcube Universal Banking System
G. Flexible Uniformed Banking System
H. None

89. Maximum what % of current remaining time to maturity of a term loan may be extended ?
A. 35 %
B. 25 %
C. 10 %
D. None

90. Lien is mainly?

(A) 2 kinds
(B) 3 kinds
(C) 4 kinds
(d) 5 kinds

91. Who can be a Minor Account Holder?

(A) Age Below 20 years.
(B) Age below 18 years
(C) Age below 22 years.
(d) Age below 25 years

92. Loan can be defined by:

(A) Fixed Monthly Installments.
(B) Fixed Asset & Liabilities.

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(C) Stock & Collateral.
(d) Receivable & Payable.

93. Banks grant advances to the borrowers for purchase of Machineries in which mode?
(A) CC(H)
(B) OD(Gen)
(C) LTR
(D) Lease- Finance.

94. Which term can be use in respect of “Discounting of Bills”:

(A) Usance Bills.
(B) Uncollected Bills.
(C) A & B.
(d) Demand Bills.

95. Letter of Continuity is taken from whom?

(A) Proprietor.
(B) Supplier.
(C) Owner of the Shop & Godown premises.
(d) Wife of the proprietor.

96. In practice which liability can be continue for a long period??

(A) Hire Purchase
(B) Lease Finance
(C) Car Loan
(d) CC (Hypo)

97. Temporary Overdraft can be allowed on which account?

(A) Current Account.
(B) Saving Account.
(C) SOD Account.
(d) None of above.

98. Which type of Advance can be repayment without any specific date?
(A) LTR.
(B) LIM.
(C) CC(Hypo).
(d) OAP

99. Memorandum of Association is necessary for which type of Business formation?

(A) Private Limited Company.
(b) Partnership Firm.
(c) Proprietorship Firm
(d) A& B.

100. “Form XII” reflects what?

(A) Partners.
(B) Fixed Assets

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(C) Floating Assets.
(D) Change of Directors & Shares.

101. What does “BRPD” means?

(A) Banking Regulation & Policy Department.
(B) Bank Rules & Policy Department
(C) Bangladesh Rural Policy Development.
(d) None of above.

102. What can also be defined as a part of “Syndication Loan”?

(A) Large Loan
(B) Long Term Loan.
(C) Bridge Finance.
(D) Temporary Overdraft.

103. In a Mortgage what is specified? :

(A) Loan limit.
(B) Loan Period
(C) Interest Rate
(D) Immovable Property.

104. “Assignment” can be charged on which type of finance?

(A) OD(GEN)
(B) OD(Work Order)
(C) OD(Ernest Money)
(D) Loan against imported merchandise.

105. Which type of Charge does not give power to sale but only to retain the property?
(A) Hypothecation
(B) Lien
(C ) Pledge
(D) Set-off)

106. Public Limited Company or Private limited Company which is a subsidiary of a Public
Limited company, can borrow more than the aggregate of the Total: -
(A) Paid up capital & Free Reserve
(B) Fixed Assets.
(C) Floating Assets.
(D) Total value of Sharers.

107. By what document a Joint Stock Company defines objects of it’s existence and operations?
(A) Form Xii
(B) Memorandum of Association.
(C) Memorandum of Articles.
(D) B&C

108. Bad Loans & Advances make impact on:

(A) Income

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(B) Profit
(C) Reserve
(D) Bank’s Capital.

109. Once repaid in full or in part, cannot be drawn again is :

(A) Loan
(B) Advance
(C) Financial Instrument.
(D) All of Above.

110. The weight of relationship risk in CRG Report is…….

a) 10%
b) 12%
c) 18%
d) 50%

111. For continuous loan maximum tenure shall be…….

a) 1 year
b) 2 year
c) 6 month
d) 3 month

112. In measuring creditworthiness, “Capacity” refers to

a) Willingness to repay the borrowed amount

b) Ability to run business & generate sufficient cash
c) Financial Strength
d) None of the above

113. Under which loan facilities, ownership of stock remains to the customer?

a) CC(H)
b) CC(P)
c) Both
d) None of the above

114. In case of Export, single customer exposure may be…….of bank’s total capital

a) 35%
b) 50%
c) 40%
d) None of the above

115. Which of the following may not be eligible for lending?

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a) Public Limited Company
b) Govt. Organization
c) Semi-Govt. Organization
d) All of the abovementioned concerns are eligible for lending

116. Number of Manpower required to be considered as a “Small Enterprise” (manufacturing

concern)is ………

a) 10-25
b) 25-99
c) 100-250
d) 50-100

117. If the amount of fixed asset (excluding land & building ) and number of manpower of a
manufacturing organization are 29 Crore and 240 people respectively , the manufacturing
concern is a ……
a) Small enterprise
b) Medium Enterprise
c) Large Enterprise
d) None of the above

118. What is the elaboration of ALCO?

a) Annual Loan Co-assessment

b) Assessment of Land Collateral
c) Asset Liability Management Committee
d) None of the above

119. Details of CC(H):

Limit 50 Lac
Credit Summation 218 Lac
FSV of Collateral Security 86 Lac

Recycle Times & Coverage are……..

a) 4.36 times & 1.72 times respectively
b) 1.72 times & 4.36 times respectively
c) 0.23 times & 0.59 times respectively
d) None of the above

120. When a Banker purchases a sight bill and credit the bill amount less Bank’s charge to the
account of the drawer and realize the bill amount on presentation is called Bill Purchased.
a) True
b) False

121. When a Banker purchases a usance bill and credit the bill amount less interest on the
expired term to the account of the drawer is called the Bill Discounted.

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 a) True
b) False

122. Repayment Capacity shall be measured based on Cash Flow rather the Collateral
Security.
a) True
b) False

123. According to the regulatory guidelines Bank can reduce 1.5% higher or lower than the
mid rates circulated.
a) True
b) False

124. In addition to the valuation of the Relationship Officer/Manager, the same collateral
must be valued and verified by an enlisted surveyor of the Bank if the total credit facility to the
concerned customer exceeds Tk 25.00 lac (Taka Twenty Five Lac).
a) True
b) False

125. A manufacturing concern which will use the fund for own utilization is eligible for ULC
a) True
b) False

126. Which of the following is not a method of creation on charge of securities?

a. Pledge
b. Set-Off
c. Lien
d. Over Draft

127. The rules and regulations for the internal administration of a company is called :
a. Rules of association
b. Constitution of association
c. Regulations of association
d. Articles of association

128. Which of the following is a non-funded credit facility?

a. Lease financing
b. Hire Purchase
c. Letter of Credit
d. Micro Credit

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129. Which of the following is the maximum limit of extension of regular term loan?
a. 25% of the remaining term to maturity
b. 20% the remaining term to maturity
c. 30% the remaining term to maturity
d. 15% the remaining term to maturity

130. What does SPC stand for?

a. Self Protection Certificate
b. Security Perfection Certificate
c. Safety Perfection Compliance
d. Security Protection Certificate

131. Which of the following is a must in case of third party security?

a. Post dated cheques
b. Personal Guarantee of the proprietor
c. Personal Guarantee of the spouse
d. Letter of consent

132. Insurance regarding hypothecation of stock is to be made in the name of :

a. Bank
b. Customer
c. Jointly in the name of Bank and Customer
d. None of the above

133. What does CRG stand for?

a. Credit Risk Grading
b. Credit Risk Grouping
c. Collateral Risk Grading
d. Collateral Risk Grouping

134. What does LBPD Stand for?

a. Local Bill Purchased Discounted

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 b. Legal Bank Perfection Certificate
c. Local Bank Purchased Document
d. Local Bill Purchased Deal

135. What Does EOL stand for?

a. Excess of Limit
b. Excess Over Limit
c. Equity over lending
d. Excess of Liability
136. Which of the following document is mandatory for limited concern?
a. Memorandum of article
b. Share Position
c. Legal Vetting
d. Surveyor Report

137. What does LTR stand for?

a. Letter of Tender Receipt
b. Letter of Trust Receipt
c. Liability of Tender Receipt
d. None of the above
138. What is the basis of provisioning if the outcome is zero?
a. 20% of outstanding
b. 15% of outstanding
c. 10% of outstanding
d. 25% of outstanding
139. What does CAR stand for?
a. Capital Adequacy Ration
b. Capital Advance Ratio
c. Collateral Advance Rate
d. Collateral Adequacy Ratio
140. Which of the following is a characteristic of Lien?
a. Lien does not give power of sale but only to retain the property.

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 b. Lien gives the power of sale.
c. Lien does not give the power to retain the property
d. None of the above

141. In case of CC (Pledge), the godown of the customer remains in bank’s full control.
A. True
B. False

142. What is the minimum manpower requirement for a Trading concern to be SME?
A. 30
B. 25
C. 15
D. 10

143. Land & Buildings are the primary security for HBL (Gen) Loan.
A. True
B. False

144. What is the full form of IGPA?

A. Irrevocable General Power of Attorney
B. International Guideline Provision of Authentication
C. Implied Guideline Power of Authorization
D. Inherent General Provision of Authorization

145. What is the current version of UCPDC?

A. 100
B. 800
C. 600
D. 500

146. What is the Full form of UCPDC?

A. Uniform Correlation & Provision for Documentary Collection
B. United Customs & Preamble for Documentary Collection
C. Uniform Customs & Practice for Documentary Credit
D. Uniform Cohesion & Preference for Document Collection

147. Rescheduled Amount Should be repaid in ___________ installments.

A. Quarterly
B. Monthly
C. Fortnightly
D. Yearly

148. If the amount of defaulted installments is equal to the amount of 03(monthly)

installments, the loan will be-
A. SMA

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B. SS
C. DF
D. BL

149. Networth is the amount of difference between-

A. Asset & Liabilities
B. Liabilities & Equity
C. Equity & Asset
D. Liabilities & Asset

150. Percentage of provisions to be kept for SME-

A. 0.50
B. 0.20
C. 0.25
D. 0.70

151. There are ______ Grading in terms of CRG-

A. 03
B. 09
C. 08
D. 04

152. RJSC & F stands for-?

A. Registered Joint Stock Companies & Firm
B. Registrar Joint Stock Compilation & Formation
C. Registrar Joined Stock Companies & Firm
D. Registrar Joint Stock Companies & Firm

153. FBPD stands for-?

A. Foreign Bill procurement & Discontinued
B. Foreign Bill persuasion & Discontinued
C. Foreign Bill purchased & Discounted
D. Foreign Bill purchased & Division

154. FCUBS stands for-?

A. Flex cube Universal Banking System
B. Foreign Uniform Banking System
C. Flex cube United Banking Solution
D. None of the above

155. All Un Classified loan other than SMA & CL will be treated as______?
A. Superior
B. Standard
C. Special Mention Account
D. Bad/Loss

156. Which Loans will have to be reported to the CIB of Bangladesh?

A. Superior

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B. Standard
C. Special Mention Account
D. Bad/Loss

157. Which loan is large loan?

A. 10% of total capital
B. 5 % of total capital
C. 12.50% of total capital
D. None of the above

158. EnvRR stands for?

A. Environmental Risk Rating
B. Eligible Risk Rating
C. Entrepreneur Risk Rating
D. None of the above

159. PAD stands for?

A. Payment Against Draft
B. Payment Against Demand
C. Purchase Against Document
D. Payment Against Document

160. Full form of RSD?

A. Riot, Strike & Demolition
B. Risk, Steal, Demurrage
C. Riot, Safety, Damage
D. None of the above

161. Current Ration means?

A. Current Asset/Current Liabilities
B. Current Asset/Current Equities
C. Current Asset/Quick Asset
D. None of the above

162. Which one is forced loan?

A. OD (G)
B. OAP
C. HBL (Com)
D. All of the above

163. Valuation of stock is done by?

A. Cost price
B. Market price
C. Cost price or Market price whichever is higher
D. Cost price or Market price whichever is lower

164. Which is the Primary Security for LC?

A. Margin

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B. Shipping Documents
C. Personal Guarantee
D. None of the above

165. CC (H) Drawing determined by?

A. Limit
B. Drawing Power
C. Limit or Drawing Power whichever is lower
D. Limit or Drawing Power whichever is higher

166. The purpose of OD (EM) is

A. To participate in a bid/tender
B. To participate in auction
C. All of the above
D. None of the above

167. Primary security of OD (G) is

A. Stock
B. Account Receivables
C. FDR
D. None of the above

168. Credit Rating Report is mandatory for facilities above

A. 2.00 crore
B. 1.00 crore
C. 0.50 crore
D. None of the above

169. Third Party Valuation is mandatory for land value above

A. 20.00 lac
B. 50.00 lac
C. 25.00 lac
D. None of the above

170. Full form of BLA is

A. Branch Legal Advisor
B. Branch legal Advocate
C. Bank Legal Advisor
D. Bank Legal Advocate

171. ETP stands for

A. Effective Treatment Plant
B. Efficient Treatment Plant
C. Effluent Treatment Plant
D. None of the above

172. Maximum Non-funded exposure for RMG is

A. 50% of total capital

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B. 20% of total capital
C. 15% of total capital
D. 35% of total capital

173. Which one is indirect charges-

A. Hypothecation
B. Lien
C. Set-off
D. Mortgage

174. Which one is indirect charges-

A. Hypothecation
B. Lien
C. Set-off
D. Mortgage

175. NEC stands for -

A. Non Encumbered Certificate
B. Non Enclosure Certificate
C. Non Encryption Certificate
D. Non Encumbrance Certificate

176. Disbursement Authority required for -

A. 3.00 Crore
B. 1.00 Crore & above
C. 5.00 Crore
D. None of the above

177. What does ‘ULC’ stands for:-

(e) Unique Letter of Credit
(f) Universal Letter of Credit
(g) Usance Letter of Credit
(h) None of the above

178. For loan regularization purpose, the Management can extend the validity of a
continuous credit facility for a period –
(e) Upto 03 months
(f) Upto 05 months
(g) Upto 09 months
(h) Upto 06 months

179. Primary security for Sight Letter of Credit (SLC) is:-

(a) Sipping document and title of imported goods.
(b) Cash margin
(c) Charge documents

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 (d) MICR Cheque

180. For financing to any Real Estate Developer company, which of the following documents
are required to be obtained -
(e) REHAB membership
(f) Details of Projects (already completed, ongoing and upcoming)
(g) Credit rating report
(h) All of the above

181. Which of the following working capital loan facility best suits a Customer, engaged in
trading of perishable items?
(e) Lease Finance
(f) Overdraft (Genearl)
(g) Import finance
(h) None of the above

182. For collateral located outside pouroshabha, the coverage should be:
(a) 1.20 times of the proposed limit
(b) 1.15 times of the proposed limit
(c) 1.25 times of the proposed limit
(d) 1.75 times of the proposed limit

183. Which of the following is not a continuous loan?

(e) Overdraft (General)
(f) Lease Finance
(g) CC(H)
(h) None of the above

184. In CRG which is not a parameter of Financial Risk?

E. Leverage
F. Liquidity
G. Security Coverage
H. Profitability

185. Which is the parameter of Business Risk in CRG?

E. Age of Business
F. Business Outlook
G. Business Experience
H. Both A & B

186. How Many Components are there in CRG?

E. 3
F. 4
G. 5

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H. 6

187. The weight (Percentage) of Business Risk in CRG is……?

E. 50
F. 18
G. 12
H. 10

188. In Case of Collateral Security valuation of immovable property for facility exceeding Tk.25.00 lac
shall be done by Bank’s enlisted Surveyor.
I. True
J. Service

189. Which is not a Demand Loan?

E. PAD
F. LIM
G. PC
H. OD

190. The Interest Rate of Agricultural Credit as per Bangladesh Bank Agricultural Credit Policy
is….?
E. 13%
F. 11%
G. 14%
H. None of the above

191. Corporate Guarantee is……?

I. Personal Security
J. Collateral Security
K. Support Security
L. All of the above

192. Which is not an indirect Loan?

E. LC
F. LBPD
G. FBPD
H. PAD

193. Assessment of working capital is important for __________.

A. Smooth operation
B. Profit Maximization
C. All of the above
D. None of the above

194. Which is not a component of Working Capital?

E. Cash in hand
F. Depreciation

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G. Current asset
H. Debtor’s Value

195. Agricultural Finance can be done via Micro Finance Institution (MFI).
I. True
J. False

196. Managing Director has authority to increase or decrease Interest Rate by……….% when
mid rate prevails.
E. 1.00%
F. 1.50%
G. 2.00%
H. None of the above

197. Which is not a defaulted loan?

I. Bad and Loss
J. Substandard
K. SMA
L. Doubtful

198. Provision is required against Classified Loan as Sub Standard.

E. 50%
F. 20%
G. 100%
H. None of the above

199. Bad /Loss Loan having 100% provisions may be written off.
I. False
J. True

200. Which is not a Charge Form?

A. Letter of Pledge
B. Counter Guarantee
C. Single Promissory Note
D. All are Charge Form

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