CREDIT QUESTIONS SUMMARIZED (2020) @iq_1

1. The limitation period of loan covered by a registered mortgage deed is -

 Three years
 Twelve years
 Fifteen years
 Twenty years
2. Which of the following is the weakest method of charging security?
 A Pledge
 Mortgage
 Hypothecation
 Assignment
3. Transfer of possession of physical security is essential in the case of -
 Lien
 Mortgage
 Pledge
 Both (a) and (C)
4. Which of the following is not an intangible asset?
 Goodwill
 Copyright
 Land
 Trademark
5. A banking company cannot hold any immovable property, not acquired for its own use for
a period exceeding -
 5 Years
 7 Years
 10 Years
 None of these
6. Continuing security clause is inserted in case of -
 term loans
 cash credits (only for Cash Credit, Overdraft or bill discounting)
 mortgage loans
 None of the above
7. The end-use of funds can reasonably be ensured in case of -
 term loans
 cash credits
 bills discounted and purchased
 None of the above
8. All goods should be physically checked at least once in -
 a month
 6 month
 a year
 None of the above
9. Liquid assets include -
 cash in hand and balances with other banks
 investments in shares and stocks
 loans and advances
 None of the above
10. In case of pledge, the possession of the security is with -
 the debtor
 the Bank
 the third party
 None of the above
 CREDIT QUESTIONS SUMMARIZED (2020) @iq_2

11. A floating charge means -

 a charge of the assets of a company which is being floated
 a charge on the shares of a company
 a charge on the current assets of the company which are constantly changing
 None of the above
12. In case of hypothecation, the banker has
 The possession of goods
 Right to sell the goods
 A specific interest in the goods
 None of the above rights
13. In case of hypothecation, insurance charge for the goods are borne by
 The borrower
 The bank
 The borrower and the bank jointly
 None, since no insurance is required
14. In case of default by the borrower, the banker can sell the pledged goods -
 Immediately
 After issuing notice to the borrower
 After obtaining court’s order
 With the consent of the borrower.
15. The limitation period for filing of suit for sale of mortgaged property is -
 3 years;
 years;
 10 years;
 12 years.
16. Pledge can be created by -
 Actual delivery
 Constructive delivery
 Symbolic delivery
 Any of the above methods.
17. The Letter of Continuity should be taken in the case of -
 Advances to companies
 Overdraft or Cash Credit Account
 Time barred advances
 Accounts of the deceased borrowers
18. Mortgage other than by way of deposits of title deeds should be registered with -
 The Sub-Register
 The Register of Companies
 The Register of Co-operative Societies
 Registrar of Firms.
19. The best option of charge to finance a car, for personal use by an individual, by a bank
would be -
 Pledge
 Mortgage
 Hypothecation
 None of the above
20. For creating charge on work-in-process of a borrowing unit, the most appropriate charge
will be -
 Hypothecation
 Pledge
 Mortgage
 None of the above.
 CREDIT QUESTIONS SUMMARIZED (2020) @iq_3

21. The right to retain goods or property of a debtor for the debt is known as -
 Set-off
 Lien
 Appropriation
 None of the above.
22. Commercial Banks provide credit only to -
 Trade and Industry
 Agriculture and Trade
 Trade, Agriculture and Industry
 None of the above
23. Short-term Credit needs are for a period between -
 Up to 1 year
 5 to 10 years
 More than 10 years
 None of the above
24. Medium Term Credit needs are for a period between -
 2 to 5 years
 5 to 10 years;
 More than 10 years;
 None of the above
25. Long Term Credit needs are for a period between -
 Over 5 years
 5 to 10 years
 More than 10 years
 None of the above
26. The term gross working capital is used for -
 Total current assets
 Total of current assets and current liabilities
 Current assets – current liabilities;
 None of the above.
27. In a contract of guarantee, the liability of the guarantor is:
 Always primary
 Always tertiary
 Always secondary
28. Total assets minus outside liabilities is:
 Working capital
 Profit
 Capital
29. In case of Pledge, delivery of goods to the banker:
 May be actual or constructive.
 Must be actual.
 Must be constructive.
30. Letter of Continuity is taken in case of:
 Cash Credit or Overdraft.
 Pledge or Hypothecation.
 Term Loan.
31. Charging Securities means:
 Becoming owner of the security.
 Making security available as a cover for the said advance
 Selling / liquidating of the securities for adjustment of the loan without
intimation/approval of any other parties.
 CREDIT QUESTIONS SUMMARIZED (2020) @iq_4

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

 Transfer of Property Act
 Contract Act -1872
 Sale of goods Act
33. Banker's right to cancel advance at any time with or without intimation is acknowledged
by the borrower by signing:
 D.P. Note
 Letter of request
 Letter of arrangement/ Sanction letter
34. 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:
 Substandard
 Doubtful
 Bad & Loss
35. In case of 'Cash Credit' advance:
 Both the limit and the drawing power are variable
 Limit is fixed but the drawing power is variable
 Drawing power is fixed but limit is variable
36. The common modes of creation of charge over the securities against loans and advances
are:
 Registration, set-off, possession, and power of Attorney
 Pledge, Hypothecation, Mortgage, Lien and Assignment
 Pledge, Hypothecation, Mortgage and set-off
37. Principles of sound lending mean:
 Safety, Security, Liquidity & Profitability of the fund
 Security, Safety, Purchase, Spread & National Interest
 Security, Safety, Purchase, Person & Capital
38. Letter of disclaimer is taken from:
 Borrower
 Guarantor
 Owner of rented godown / premises
39. Provision for Bad debts is made out of
 Income
 Profit
 Reserve
40. A Bank can sanction loan to a single party up to a maximum amount of
 20 % of its capital
 15 % of its capital
 10 % of its capital
41. Rates of interest to be charged against various forms of advances are determined by:
 Bank's own policy
 As per directives of Bangladesh Bank
 Mutual Agreement with the borrower
42. In case of Hypothecation the possession of the merchandise is held with the:
 Banker / Lender
 Borrower
 Negotiator
43. Hypothecation is called as:
 Fixed charge
 Floating charge
 None of the above
 CREDIT QUESTIONS SUMMARIZED (2020) @iq_5

44. Lien, one of the modes of charging securities, is the right to retain:
 Goods and securities until debt is satisfied
 Property mortgaged to the bank
 Both of above
45. Mortgage, a mode of charging security, has been defined in:
 Transfer of Property Act, 1882
 Sale of Goods Act, 1876
 Negotiable Instruments Act, 1881
46. In case of loan against gold ornaments the charge should be created by:
 Hypothecation
 Pledge
 Mortgage
47. Cash credit is allowed generally against
 Pledge or Hypothecation of goods
 Immovable property
 Tangible security
48. In case of Hypothecation, the banker customer relationship is:
 Baylor -Bailee
 Debtor -Creditor
 Pledgor -Pledgee
49. Installment basis repayment is allowed in:
 Cash credit account
 Overdraft account
 Loan account
50. In case of transport loan the charge should be created by:
 Hypothecation
 Pledge
 Mortgage
51. The period of limitation for filling a suit for recovery of money lent under a Demand Promissory
Note is:
 Three years from the date of execution of the document
 Seven years from the date of execution of the document
 Twelve years from the date of execution of the document
52. While you are granting loan against Life Insurance Policy, the charge should be:
 Set -Off
 Assignment
 Lien
53. For filing suit against a defaulter borrower under 'Insolvency Act' the amount claim of the
Creditor(S) should be at least:
 Tk. 3.00 Lac
 Tk. 5.00 Lac
 Tk. 7.00 Lac
54. As per" Artha Rin Adalat Act, 2003" the bank/debtor should go to the following court for appeal
against the decree:
 Supreme Court
 District Judge Court
 High Court
55. For classification purpose Secured Overdraft falls under the following category:
 Demand Loan
 Continuous Loan
 Term Loan
 CREDIT QUESTIONS SUMMARIZED (2020) @iq_6

56. A defaulter borrower may apply to the court to declare him "Insolvent" if he fails to repay loan
amounting not less than:
 Tk. 5,00,000/-
 Tk. 2,00,000/-
 Tk. 20,000/-
57. Project financing decision emphasis’s on
 Ability to procure revenue from the project
 Volume of production, capacity utilization, etc.
 Government policy
58. For financing a project bank selects the following type of advance:
 Cash Credit (Hypothecation)
 Secured Overdraft
 Term Loan
59. Drawing Power in CC (Pledge) facility is calculated on the basis of:
 Limit & Stock
 Stock & Margin
 Stock, Margin & Limit
60. Counter Guarantee is taken from:
 Beneficiary
 Principal Debtor
 Guarantor
61. In case of advance against pledge of goods of a limited company, charge should be registered
with:
 Registrar of Joint stock company within 21 days
 Controller of Capital Issues within 21 days
 Registration of such charge is not required
62. The borrowing power of a Company is to be determined by:
 Memorandum of Association
 Articles of Association
 Certificate of Incorporation
63. Equitable Mortgage means:
 Registered mortgage for token amount
 Legal mortgage for full amount
 More deposit of Title Deed
64. In case of an advance allowed to a limited company against legal mortgage of land of its own,
the property is to be registered with:
 The Sub-Registrar Office / District Registrar Office
 The Registrar of the Joint Stock Company
 Both of the above
65. Principles of sound lending are followed by the bankers:
 To minimize risk
 To maximize profit
 None of the above
66. Lien is created over the securities held by the bank through:
 Letter of Lien
 Demand Promissory Note
 Letter of Disclaimer
67. In a guarantee, the liability of the surety is:
 Absolute
 Primary
 Conditional
 CREDIT QUESTIONS SUMMARIZED (2020) @iq_7

68. When a loan is to be repaid within 3 (three) years, it should be regarded as:
 Short Term Loan
 Medium Term Loan
 Demand Loan
69. Which one of the charge documents is required for all types of advances?
 Demand Promissory Note
 Letter of Continuity
 Letter of Undertaking
70. Loan which is not backed by any security is called:
 Bad Loan
 Risky Loan
 Clean Loan
71. Under which act a document is not acceptable to the court as an evidence of contract between the
banker and customer due to under stamping:
 The Contract Act, 1872
 The Artha Rin Adalat Act, 2003
 The Stamp Act, 1899
72. CIB Report is to be obtained about a new customer for granting loan amounting to:
 More than Tk. 1.00 crore
 More than Tk. 50.00 Lac
 Any amount
73. Which is the unclassified Loan?
 SMA
 SS
 DF
 BL
74. How does base for provision calculated in respect of Classified Loan?
 Based on total outstanding
 Total outstanding minus interest suspense
 Total outstanding minus interest suspense minus eligible security
 Total outstanding minus eligible security
75. What is the percentage of provision kept for Doubtful Loans and Advances?
 5% of base for provision
 20% of base for provision
 50% of base for provision
 100% of base for provision
76. When shall a continuous loan be past due/overdue?
 After the date of expiry
 After 3 month of expiry date
 After 6 month of expiry date
 After last payment date
77. In case of availing fresh facility from other bank or financial institution what are the conditions
have to be fulfilled?
 15% of compromise amount including down payment as per guideline
 15% of compromise amount excluding down payment as per guideline
 15% of compromise amount excluding down payment as per guideline and NOC
 15% of compromise amount including down payment as per guideline and NOC
78. 2nd Execution Case to be filed within ________ of filing the 1st Execution Case.
 1 Year
 5 Year
 Year
 180 Days
79. Section 33 is about _______
 Summon Notice
 Auction Notice
 CREDIT QUESTIONS SUMMARIZED (2020) @iq_8

 Execution of Decree
 Show Cause Notice
80. Who can be a Mediator?
 Plaintiff’s Lawyer
 Defendants Lawyer
 Retired Judge
 None of the above
81. Specify the period of time when filing of 2nd Execution Case barred by Law?
 1 Year
 5 Year
 6 Year
 180 Days
82. Bank Conduct Classification of Loan Activities as per BRPD circular
 Monthly
 Quarterly
 Half yearly
 Yearly
83. Calculate the provision for SMA Loans and advances for outstanding Tk.50,00,000/-Where
interest suspense Tk.2,00,000/- and eligible security Tk.60,00,000/-
 Tk.2,50,000/-
 NIL
 Tk. 2,40,000/-
 Tk.90,000/-
84. In case of Fixed Term Loans, repayable in more than five years, if the amount of defaulted
installment is equal to or more than the amount of installment due for 24 months. Which category of
classification shall it fall?
 DF
 BL
 SMA
 None of these
85. Calculate the eligible security of the Land and Building Mortgaged with the Bank.
 100% of market value
 75% of market value
 Maximum 50% of market value
 Maximum 50% of market forced sell value
86. What percentage has to be made as down payment of a term loan rescheduled for 3th time?
 15% of overdue installment or 10% of total outstanding, which is less
 30% of overdue installment or 20% of total outstanding, which is less
 20% of overdue installment or 15% of total outstanding, which is less
 50% of overdue installment or 30% of total outstanding, which is less
87. What shall be the amount of down payment for continuous loan Tk.1,10,00,000?
 15% of outstanding
 10% of outstanding
 Tk.15.00 lac
 Tk.11.00 lac
88. When no fresh facility will be allowed till the full settlement of compromise amount?
 Any interest waiver
 Any principal waiver
 2nd time rescheduled loan
 None of these
89. Auction Notice Under Section-12 of Artha Rin Adalat-2003 to be arranged before filing __.
 Artha Rin Execution Case
 Artha Rin Suit
 C R Case
 Civil Suit
 CREDIT QUESTIONS SUMMARIZED (2020) @iq_9

90. What is the specific Time Period for submitting Mediation Report?
 90
 60
 30
 15
91. 1st Execution Case to be filed within ____of obtaining Decree from the Lower Court.
 1 Year
 2 Year
 6 Month
 90 Days
92. Artha Rin Ain, 2003 contain _____ Imprisonment of _____.
 Civil, 7 Month
 Criminal, 6 Month
 Civil, 6 Month
 Criminal, 7 Month
93. What criteria from the following is not considered to classify a loan account as per Bangladesh
Bank Guidelines?
 Date of Sanction
 Date of Expiry
 Qualitative Judgment
 Period of Past due/overdue.
94. Why bank write-off their classified loans and advances?
 To initiate more efforts to recovery the loans
 To Clean-up the Bank’s Balance from Classified exposure.
 To improve the assets quality.
 All of the above
95. To recover the classified loan all classified loans and advances are categorized into three stages
on priority on the basis of __________?
 Value of collaterals and borrower’s worthiness
 Stages of classification and loans and advances category.
 Borrower’s intention and worthiness.
 All of the above.
96. Which of the following body have the authority to allow remission of interest to ensure early
recovery?
 Executive Committee
 Audit Committee
 Board of Directors
 All of the above.
97. Which is Called NPL?
 SMA
 Standard Loan
 Unclassified Loan
 Classified Loan.
98. How do bank write-off its bad loan, if provision remains short fall?
 Keeping 100% provision against the loan
 Use the excess provision of other Loans and advances
 Debiting the Income account of the current year.
 None of the above.
99. Under what section of Artha Rin Adalat Ain 2003 Bank publish auction notice?
 Section 34
 Section 11
 Section 12
 Section 46
100. What is the provision requirement for writing-off loan?
 50%
 CREDIT QUESTIONS SUMMARIZED (2020) @iq_10

 20%
 5%
 100%
101. Under what section of Negotiable Instrument Act we file criminal case?
 Section 12
 Section 112
 Section 138
 Section 133
102. The loans that become repayable on demand by the bank will be treated as--.
 Continuous Loan
 Demand Loan
 Forced LIM, PAD
 None of the Above
103. The interest Accrued on classified loan will be credited to
 Income Account
 Interest Account
 Suspense Account
 Interest Suspense Account
104. Which body of a Bank has the authority to declassify a loan that was classified by inspection
Team of Bangladesh Bank?
 Board of Directors
 Executive Committee
 Audit Committee
 All of the above.
105. If a borrower deposit full or part of the due in a classified account, what shall be realized first?
 Interest Amount
 Principal Amount
 Interest & Principal Amount
 Only Principal Amount.
106. Charging of interest will cease in which type of Classified Account?
 Special Mention Account
 Sub Standard Account
 Doubtful Account
 Bad & Loss Account.
107. Short-term Micro-Credit will include any micro-credits not exceeding _______and repayable
within 12(twelve) Months.
 Tk. 15000
 Tk. 25000
 Tk. 35000
 Tk. 45000
108. What’s the procedure of serving Summon?
 Registered Post(A)
 Unregistered Post(B)
 News Paper Publication(C)
 A & C.
109. A debtor makes default in payment of a bank and which type of risk is this for a lending
bank:
a). Liquidity Risk
b). Interest Risk
c). Operational Risk
d). Credit Risk

110. Which type of risk arises before a bank that trades in government securities
 CREDIT QUESTIONS SUMMARIZED (2020) @iq_11

a). Liquidity Risk

b). Credit Risk
c). Market Risk
d). Trade Risk
111. When financial instution and banks undertake activities related to banking like
investment, issue of debit and credit card etc. then it is known as
a). Internet Banking
b). Virtual Banking
c). Universal Banking
d). Wholesale Banking
112. CRG is not required for
a). Consumer Credit
b). STAC( Short Term Agricultural Credit
c). Micro Credit
d). All of the above
113. Mortage is applicable in case of
a). Moveable and immovable property
b). Immovable property only
c). Movable property only
d). All of the above
114. Neither possession nor ownership transferred to the bank in case of
a). Pledge
b). Mortgage
c). Hypothecation
d). Set off
115. The new Capital Adequacy Framework prescribed for the banks commodity known as
a). FERA Guidelines
b). BASEL Policy
c). CBS Policy
d). RTGS Policy
116. The object of Limitation Act is
a). to put the party in joint
b). to enter into an agreement with the party
c). to release the party from his liability
d). to prescribe the period within which right can be enforced in a court of law
117. Execution suit under Artha Rin Adalat Scheduled to be filed with in
a). 160 days
b). 180 days
c). 360 days
d). None of them
118. Which one is not a charge document
a). D.P Note
b). Mortgage
c). Letter of Pledge
d). Both b and c
119. The liability of the Guarantor is
a). Primary
b). Co-extensive with that of principal debtor
c). Secondary
d). None of these

120. Which one is not associated with fraud

a). Deceive
 CREDIT QUESTIONS SUMMARIZED (2020) @iq_12

b). Promise
c). Concealment
d). Unethical Conduct
121. Which one is not the irregularities in case of approving Loans and Advances
a). Over or Under Invoicing
b). Inadequate Security Stipulation
c). Undue Influence
d). Estimation of the cost of the project and means of finance
122. Which of the following is termed as earning asset
a). Deposit/Borrowing
b). Cash and Liquid Reserve
c). Investment d). Capital
123. ABC Ltd. Sold Tk. One Million of their products in 2015. If the fixed and variable cost of
each of the product is Tk. 75 and Tk. 25 respectively, what is the total quantity of the
production?
a). 1000
b). 10000
c). 40000
d). None of these
124. XYZ company taken a loan five million for one year @ 10% per annum to counterparty.
What will be the amount of the quarterly interest that to be recovered
a). 10000
b). 50000
c). 12500
d). 25000
125. Total Current assets and current liabilities of a trading firm are Tk. 2 million and 0.50
million respectively. What is the current ratio of the firm?
a). 4:1
b). 4:2
c). 2:1
d). None of these
126. Which one of the following is not included in Tier-I capital?
a). Paid-up Capital
b). Statutory Reserve
c). General Provision
d). Retained Earnings
127. Classified loan is categorized under
a). 3
b). 4
c). 5
d). None of these
128. In CRG what should be the score of acceptable category
a). 85+
b). 75 – 84
c). 65 – 74
d). 55 – 64
129. Maintenance of general provision and SMA in case of Consumer Finance Scheme is
a). 2%
b). 2.5%
c). 5%
d). None of these

130. Maintenance of Specific Provision in case of SS/DF of Short Term Agricultural Credit
and Micro Credit is
a). 20%
 CREDIT QUESTIONS SUMMARIZED (2020) @iq_13

b). 50%
c). 5%
d). 100%
131. Down payment requirement of term loans for the 1st time rescheduling is
a). 15% of the overdue installments or 10% of the total outstanding amount of loan
whichever is less
b). 30% of the overdue installments or 20% of the total outstanding amount of loan
whichever is less
c). 20% of the overdue installments or 10% of the total outstanding amount of loan
whichever is less
d). None of these
132. A project loan will be accepted when
a). IRR is 10%
b). NPV is positive
c). NPV is negative
d). None of these
133. What is the single borrower exposer limit of a bank?
a). 15% of the bank’s capital
b). 25% of banks capital
c). 30% of banks capital
d). 35% of banks capital
134. Any continuous loan will be classified as SS if it is past due/overdue
a). for 2 months or beyond but less than 3 months
b). for 3 months or beyond but less than 6 months
c). for 6 months or beyond but less than 9 months
d). for 9 months or beyond but less than 12 months
135. What is the primary security of LIM?
a). Imported stock
b). Post datedcheque
c). Personal Guarante
d). Both a and b
136. What will be the drawing power of a customer when stock value is Tk. 2 crore and
required margin is 25%
a). Tk. 1.50 Crore
b). Tk. 1.60 Crore
c). Tk. 2.25 Crore
d). Tk. 4.00 crore
137. What is the maximum tenor for any continuous loan?
a). 6 months
b). 9 months
c). 12 months
d). 18 months
138. Debt Service Coverage Ratio indicates to meet
a). Interest servicing obligation
b). Principal Service obligation
c). Both interest and Principal Service obligation
d). None of these
140. Guarantor is liable only when-
a). The principal debtor has defaulted to pay
b). The creditor has exhausted his remedy against the principal debtor

c). The guarantor is called upon to pay on default by the principal debtor
d). After the expiry of the limitation period of guarantee
 CREDIT QUESTIONS SUMMARIZED (2020) @iq_14

141. A bank is unable to pay its short term deposits because the bank’s fund is long term investments.
The risk derived in this case is known as-
a). Market Risk
b). Operational Risk
c). Liquidity Risk
d). Interest Rate Risk
142. Ability of an organization to pay-off the current obligations is measured by-
a). Coverage Ratio
b). Activity Ratio
c). Liquidity Ratio
d). Growth Ratio
143. Under which section of Artha Rin Adalat Ain, 2003 responsibility has been financial institutions
to dispose of property of borrower before filling of suit-
a). Section 8
b). Section 10
c). Section 9
d). Section 12
144. Which one of the following is not included in Tier II Capital?
a). General Reserve
b). Asset revaluation reserve
c). All preference shares
d). Exchange Equalization
145. Which one of the following is not the capital budgeting technique?
a). Discounted payback period
b). NPV
c). Break-even analysis
d). IRR
146. General provisioning requirement for off balance sheet item is-
a). 5.00% of limit
b). 0.05% of limit
c). 1.00% of limit
d). 0.15% of limit
147. Which of the following is not included in three pillars of BASEL-?
a). Minimum capital requirement
b). Supervisory review
c). Core banking solution
d). Market discipline
148. Under the Basel -II framework market discipline falls under which of the following pillar?
a). Pillar-I
b). Pillar- II
c). Pillar-III
d). None of the above
149. Which one is not the irregularities in case of approving loans and advances?
a). Over or under invoicing
b). Inadequate security stipulation
c). Undue influence
d). Estimation of the cost of the project and means of finance
150. Which one of the following is not true?
a). At present CRR is 6.50%
b). All banks are to maintain SLR @ 13.00%
c). At present Bank rate is 5.00%
d). Call money rate is not always fixed

151. Classified loan is categorized under-

a). 3 categories
 CREDIT QUESTIONS SUMMARIZED (2020) @iq_15

b). 5 categories
c). 4 categories
d). None of these
152. Which of the following is non funded credit?
a). CC pledge
b). Bill purchase and discounting
c). Letter of credit
d). Both (b) and (c)
153. What is the single borrower exposure limit of a bank?
a). 15% of Bank’s capital c). 25% of Bank’s capital
b). 35% of Bank’s capital d). None of these
154. Loan would be classified as doubtful if-
a). There is a negative net worth and working capital
b). Uncertain collateral coverage
c). Full recovery depends upon unlikely events
d). All of the above
155. Current ratio is calculated through-
a). Current assets – current liabilities
b). Current assets + current liabilities
c). Current assets /current liabilities
d). Current liabilities / Current assets
156. IRR is the discount rate at which-
a). NPV>0
b). NPV<0
c). NPV= 0
d). NPV> 1
157. Which one(s) of the following symptoms of a non- performing project?
a). Slow turnover
b). Underutilization of capacity
c). Going out of production
d). All of the above
158. Credit investigation includes-
a). Collection and analysis of information
b). Making of recommendation/decision
c). Credit review and monitoring
d). Both (a) and (b)
159. Which of the following does not constitute a line of defense against banking risk?
a). Quality management
b). Good macroeconomic environment
c). Portfolio diversification
d). Owner’s capital
160. What is the role of internal auditors in the risk management of bank?
a). Set policies
b). Evaluation and expression of opinion
c). Test compliance with laws, policies and procedures etc.
d). Effective supervision and monitoring
161. Based on capital budgeting technique decision rule, which project should be chosen?
a). The project having NPV greater than zero
b). The project having payback period greater than given standard time
c). The project having IRR lower than the cost of capital
d). Anyone

162. Execution suit under Artha Rin Adalat Ain’2003 should be filed within-
a). 120 days
 CREDIT QUESTIONS SUMMARIZED (2020) @iq_16

b). 180 days

c). 360 days
d). None of these
163. Which one of the following is not a charge document?
a). D.P note
b) Letter of revival
c). Letter of continuity
d). Assignment
164. Down payment requirement of term loan for the 1st time rescheduling is-
a). 10% of the total outstanding or 15% of the overdue installment of the loan,
whichever is less.
b). 20% of the total outstanding or 30% of the overdue installment of the loan, whichever
is less
c). 10% of the total outstanding or 25% of the overdue installment of the loan, whichever
is less
d). None of these
166. CRG is not required for-
a). Consumer credit
b). Micro credit
c). Short term Agricultural credit
d). All of these
167. Which of the following is the formula of burden coverage?
a). Funded income divided by operating expense
b). Non-interest income divided by interest expense
c). Non-interest income divided by operating expense/non-interest expense
d). interest expense divided by operating expense
168. A company has a net income of (BDT) 35 million, if the company pays out BDT 1 million
preferred dividend and has 10 million shares for half of the year and 15 million shares for the
whose half of EPS would be-
a). BDT 1.92
b). BDT 1.00
c). BDT 2.00
d). BDT 0.96
169. Which one of the following is an example of leverage Ratio?
a). Debt to total asset ratio
b). Debt equity ratio
c). Debt to capital ratio
d). All of these
170. Which of the following ratio(s) is/are considered while assessing liquidity of a borrower?
a) Acid – Test ratio
b) Sales Turnover
c) P/E Ratio
d) Debt-Equity Ratio
171. As per regulatory guideline, for which of the following customers Credit Rating is
mandatory?
a) Having exposure of Tk. 30.00 lac
b) Having exposure of Tk. 30.00 lac and above
c) Having exposure of Tk. 1.00 crore and above
d) None of the above

172. What is the maximum number of times the validity of a credit facility (unclassified) can
be extended?
a) 02
 CREDIT QUESTIONS SUMMARIZED (2020) @iq_17

b) 03
c) 05
d) None of the above.
173. For a trading concern which of the following is the most important performance
indicator?
a) Inventory Turnover
b) Fixed Asset Turnover
c) Safety Margin
d) Debt coverage ratio
174. What is the maximum rate of interest that can be charged by any PCBs to Loan to
Agriculture & Rural sector as per BRPD circular no. 17 dated 21.12.014 of Bangladesh Bank?
a) 13%
b) 14%
c) 12%
d) 10%
175. If a Continuous loan is classified as Sub-standard and it is rescheduled for the First time,
what would be the maximum time limit for the loan from the date of rescheduling?
a) 24 months
b) 18 months
c) 12 months
d) 9 months
176. If a Continuous loan is classified as Sub-standard and it is rescheduled for the Third time,
what would be the maximum time limit for the loan from the date of rescheduling?
a) 24 months
b) 18 months
c) 12 months
d) 6 months
177. If a Continuous loan is classified as Doubtful and it is rescheduled for the Second time, what
would be the maximum time limit for the loan from the date of rescheduling?
b) 24 months
c) 18 months
d) 12 months
e) 09 months
178. If a Continuous loan is classified as Bad/Loss and it is rescheduled for the Third time, what
would be the maximum time limit for the loan from the date of rescheduling?
1. 18 months
2. 12 months
3. 09 months
4. 06 months
179. If a Demand loan is classified as Sub-standard and it is rescheduled for the Second time,
what would be the maximum time limit for the loan from the date of rescheduling?
f) 24 months
g) 18 months
h) 12 months
i) 9 months

180. If a Demand loan is classified as Doubtful and it is rescheduled for the Third time, what
would be the maximum time limit for the loan from the date of rescheduling?
1. 18 months
 CREDIT QUESTIONS SUMMARIZED (2020) @iq_18

2. 12 months
3. 09 months
4. 06 months
181. If a Demand loan is classified as Bad/Loss and it is rescheduled for the First time, what
would be the maximum time limit for the loan from the date of rescheduling?
a) 24 months
b) 18 months
c) 12 months
d) 09 months
182. If a Term loan is classified as Sub-standard and it is rescheduled for the First time, what
would be the maximum time limit for the loan from the date of rescheduling/expiry date?
a) 24 months
b) 36 months
c) 12 months
d) 09 months
183. If a Term loan is classified as Sub-standard and it is rescheduled for the Third time, what
would be the maximum time limit for the loan from the date of rescheduling/expiry date?
1. 18 months
2. 12 months
3. 09 months
4. 06 months
184. If a Term loan is classified as Doubtful and it is rescheduled for the Second time, what
would be the maximum time limit for the loan from the date of rescheduling/expiry date?
1. 18 months
2. 12 months
3. 09 months
4. 06 months
185. If a Term loan is classified as Bad/Loss and it is rescheduled for the First time, what would
be the maximum time limit for the loan from the date of rescheduling/expiry date?
e) 24 months
f) 18 months
g) 12 months
h) 09 months
186. If a Term loan is classified as Bad/Loss and it is rescheduled for the Third time, what would
be the maximum time limit for the loan from the date of rescheduling/expiry date?
1. 18 months
2. 12 months
3. 09 months
4. 06 months
187. Term to maturity of a term loan may be extended subject to which of the following
conditions?
1. The loan must be performing
2. The decisions should be made at the level where the loan was originally
sanctioned

3. The maturity date may be extended by a period of time not exceeding 25%
of the current remaining time to maturity.
4. All of the above
 CREDIT QUESTIONS SUMMARIZED (2020) @iq_19

188. Bank will consider the application for first time rescheduling into consideration upon
receiving ………………………
1. Cash payment of at least 15% of the overdue installment or 10% of
the total outstanding amount of loan, whichever is less;
2. Cash payment of at least 15% of the overdue installment or 10% of the
total outstanding amount of loan, whichever is more;
3. Cash payment of at least 10% of the overdue installment or 15% of the
total outstanding amount of loan, whichever is less;
4. Cash payment of at least 10% of the overdue installment or 15% of the
total outstanding amount of loan, whichever is more;

189. Bank will consider the application for second time rescheduling into consideration upon
receiving ……………………….
1. Cash payment of at least 30% of the overdue installment or 20% of
the total outstanding amount of loan, whichever is less;
2. Cash payment of at least 30% of the overdue installment or 20% of the
total outstanding amount of loan, whichever is more;
3. Cash payment of at least 20% of the overdue installment or 30% of the
total outstanding amount of loan, whichever is less;
4. Cash payment of at least 20% of the overdue installment or 30% of the
total outstanding amount of loan, whichever is more;
190. Bank will consider the application for third time rescheduling into consideration upon
receiving ……………………….
1. Cash payment of at least 50% of the overdue installment or 30% of
the total outstanding amount of loan, whichever is less;
2. Cash payment of at least 50% of the overdue installment or 30% of the
total outstanding amount of loan, whichever is more;
3. Cash payment of at least 30% of the overdue installment or 50% of the
total outstanding amount of loan, whichever is less;
4. Cash payment of at least 30% of the overdue installment or 50% of the
total outstanding amount of loan, whichever is more;
191. Which section of Bank Company Act 1991 (Amended up to 2013) clearly spells out the
definition of Defaulter?
1. 27 (Ka Ka)
2. 15 (Ka Ka)
3. 5 (GA GA)
4. 26 (Gha)
192. Which Act has forbidden Banks to extend loan & advances to defaulter(s)?
1. Bangladesh Bank Order 1972
2. Bank Company Act 1991
3. Money Loan Court Act 2003
4. The Bankers’ Book Evidence Act, 1891
193. Which of the following statement is true for Cash Credit (Hypo) facility……?
1. Both possession and title of the goods resides with the Bank.
2. Both possession and title of the goods resides with the Customer.
3. Possession of Goods resides with the Customer but the title of the
goods resides with the Bank.
4. Possession of Goods resides with the Bank but the title of the goods
resides with the Customer.

194. Which of the following statement is true for Cash Credit (Pledge) facility….
1. Both possession and title of the goods resides with the Customer.
2. Both possession and title of the goods resides with the Bank.
 CREDIT QUESTIONS SUMMARIZED (2020) @iq_20

3. Possession of Goods resides with the Customer but the title of the goods
resides with the Bank.
4. Possession of Goods resides with the Bank but the title of the goods
resides with the Customer.
195. As per CRG manual, if a loan is Substandard, it is to be reviewed at least
1. Annually
2. Quarterly
3. Monthly
4. Bi-weekly
196. What is the maximum tenor for any continuous loan?
1. 06 months
2. 09 months
3. 12 months
4. 18 months
197. As per which section of Bank Company Act 1991 (amended up to 2013), Banks are
forbidden to extent any credit facility to a defaulter?
1. 27 (Ka Ka)
2. 15 (Ka Ka)
3. 5 (GA GA)
4. 26 (Gha)
198. The Short Term Agriculture and Micro Credit if not repaid within the fixed expiry date for
repayment will be considered past due\overdue
1. immediately
2. after three months of the expiry date
3. after six months of the expiry date
4. after nine months of the expiry date
199. Any continuous loan will be classified as “Substandard” if it is past due\overdue for
1. for 02 months or beyond but less than 03 months
2. for 03 months or beyond but less than 06 months
3. for 06 months or beyond but less than 09 months
4. for 09 months or beyond but less than 12 months
200. Any continuous loan will be classified as “Doubtful” if it is past due\overdue for
1. for 02 months or beyond but less than 03 months
2. for 03 months or beyond but less than 06 months
3. for 06 months or beyond but less than 09 months
4. for 09 months or beyond but less than 12 months
201. Any continuous loan will be classified as “Bad/Loss” if it is past due\overdue for
1. for 09 months or beyond
2. for 12 months or beyond
3. for 18 months or beyond
4. for 24 months or beyond
202. Any Demand loan will be classified as “Substandard” if it is past due\overdue for
1. for 02 months or beyond but less than 03 months
2. for 03 months or beyond but less than 06 months
3. for 06 months or beyond but less than 09 months
4. for 09 months or beyond but less than 12 months
203. Any continuous loan will be classified as “Doubtful” if it is past due\overdue for
1. for 02 months or beyond but less than 03 months
2. for 03 months or beyond but less than 06 months
3. for 06 months or beyond but less than 09 months
4. for 09 months or beyond but less than 12 months

204. Any continuous loan will be classified as “Bad/Loss” if it is past due\overdue for
1. for 09 months or beyond
2. for 12 months or beyond
 CREDIT QUESTIONS SUMMARIZED (2020) @iq_21

3. for 18 months or beyond

4. for 24 months or beyond
205. A classified demand loan having outstanding of Tk. 4.00 crore is under process for rescheduling
for the first time. What would be the required down payment?
1. 5% of overdue amount but not less than 10.00 lac.
2. 10% of overdue amount but not less than 15.00 lac.
3. 15% of overdue amount but not less than 20.00 lac.
4. 20% of overdue amount but not less than 25.00 lac.
206. A classified Continuous loan having outstanding of Tk. 6.00 crore is under process for
rescheduling for the first time. What would be the required down payment?
1. 5% of overdue amount but not less than 50.00 lac.
2. 10% of overdue amount but not less than 65.00 lac.
3. 15% of overdue amount but not less than 70.00 lac.
4. 20% of overdue amount but not less than 75.00 lac.
207. What is the financial threshold applicable for Small and Medium Enterprises (SMEs) for
Environmental Risk Rating?
1. BDT 2.0 million.
2. BDT 2.5 million.
3. BDT 2.75 million.
4. BDT 3.00 million.
208. What is the financial threshold applicable for Real Estate for Environmental Risk Rating?
1. BDT 2.5 million.
2. BDT 5.0 million.
3. BDT 7.5 million.
4. BDT 10 million.
209. Repayment Capacity of a business shall be measured based on-
i. Cash Flow
ii. Collateral Security
iii. Clean CIB report
iv. Net worth of Directors
210. All of the followings are used to measure Term Loan performance, except
i. Enhancement of Repayment period
ii. Number of Installment & Amount Overdue
iii. Numbers of rescheduling
iv. Debt-equity ratio
211. As per CRM policy of the Bank, tenor of work order financing is-
i. up to 12 months
ii. up to 24 months
iii. up to 36 months
iv. up to 48 months
212. To assess the eligibility of the customer for OD (WO), following information are
required for work order financing, except-
a. Work awarding authority
b. Value of the work order
c. Status of progress of existing work
d. Value of stock
213. Following ratios are very important in Project Financing except?
a) current ratio
b) profitability ratio
c) debt equity ratio
d) debt service coverage ratio

214. Which is shown in details of the credit facility of a proposal?

a) Purpose
b) Validity / Expiry
 CREDIT QUESTIONS SUMMARIZED (2020) @iq_22

c) Mode of Disbursement
d) Nature of Credit Facility
e) All of the above
215. Bill deduction rate against work order financing does not depend on-
a) value of work order
b) Type of Work
c) interest rate
d) OD (WO) amount
216. Net working capital refers to-
a) total assets minus fixed assets
b) current assets minus current liabilities
c) current assets minus inventories
d) current assets
217. A loan amounting ______ % or above of Bank’s capital is Large Loan.
a. 10%
b. 15%
c. 35%
d. 56%
218. Creation of different type of charges on a company to be done at ____________.
a. Magistrate court
b. Sub-Registrar’s Office
c. Land survey office
d. Registrar of Joint Stock Companies & Firms
219. A customer wants to enjoy Cash Credit (H) facility mortgaging land located within
Narayangonj City Corporation. In such case, the Forced Sale Value (FSV) of the collateral
should be _______ times of credit facility sought by the customer.
a. 1.75 c. 1.25
b. 1.50 d. 1.00
220. A customer wants to enjoy Cash Credit (H) facility mortgaging land located within
Pourashava area. In such case, the Forced Sale Value (FSV) of the collateral should be _______
times of credit facility as per credit policy.
c. 1.75
d. 1.50
e. 1.25
f. 1.00
221. Cheque book is issued to the customer against __________ to withdraw money.
a. Term Loan
b. Continuous Loan
c. Letter of Guarantee
d. Overdraft (Work order)
222. The pricing of Bank’s products is fixed/revised through a committee is known as
a. Asset Liability Committee
b. Management Committee
c. Head Office Credit Committee
d. Executive Committee

223. Rescheduling of Credit is done as per the circular issued from ____________of
Bangladesh Bank.
a. Department of Off-site Supervision
b. Department of Banking Inspection
 CREDIT QUESTIONS SUMMARIZED (2020) @iq_23

c. Banking Regulation & Policy Department

d. Department of Financial Institutions & Markets
224. Single Borrower Exposure Limit is determined on the basis of ________.
a. Outstanding of loan and advances of the Bank
b. Capital of the Bank
c. Classified loan of the Bank
d. CAMELS rating of the Bank
225. The Managing Director’s delegation for approval of credit is being determined by the –
a. Bangladesh Bank
b. Board of Directors
c. Executive Committee of BoD
d. Audit Committee of BoD
226. ______ facility is provided on behalf of a customer as a commitment of future payment.
A. Term Loans C. Overdraft
B. Cash Credit D. Guarantee
227. Valuation of immovable property for facility exceeding Tk. _________ shall be done by
Bank’s enlisted Surveyor.
a. Tk. 10.00 Lac
b. Tk. 20.00 Lac
c. Tk. 25.00 Lac
d. Tk. 50.00 Lac
228. Post-dated cheque is generally an example of ____________.
a. Charge document
b. Primary security
c. Collateral security
d. Support security
229. All charge documents and mortgage documents should be vetted by
a. Surveyor
b. Legal counsel (BLA)
c. Head of Branch
d. Insurers
230. Under the Single Borrower Exposure Limit, the Bank may allow non-funded limit to a
customer maximum _______of Bank’s capital. (The customer is not engaged in export
business.)
a. 10%
b. 15%
c. 20%
d. 35%
231. Recurring debit transaction is not allowed against ______ except interest, incidental charges, etc.
a. Term Loan
b. Cash Credit (Hypo)
c. Overdraft General
d. Cash Credit Pledge
232. If the constituent of working capital is “stock of work in process”, then it should be valued on the
basis of ______,
a. At Cost of goods sold
b. At market value

c. At retail cost
d. At wholesale value
233. Except _______ are components of working capital.
i. Debtors’ value
 CREDIT QUESTIONS SUMMARIZED (2020) @iq_24

ii. Depreciation
iii. Cash in hand
iv. Stock
234. Assessment of working capital is important for __________.
i. Smooth operation
ii. Expansion of Business
iii. Long-term fund requirement
iv. None of the above
235. The pattern of the operating cycle follows __________.
a. Cash, procurement of RM, Work in process, Stock of FGs, Receivables, Cash
b. Procurement of RM, Work in process, Stock of FGs, Receivables, Cash
c. Cash, Work in process, procurement of RM, Receivables, Stock of FGs,
d. Cash, procurement of RM, Stock of FGs, Work in process, Receivables
236. The higher the stock turnover, the ____________ the working capital requirement.
a. Equal
b. Lower
c. Higher
d. All of the above
237. Credit approval authority of the Board of Directors is
i. Unlimited
ii. Funded Tk 15 crore & Non Funded Tk 35.00 crore.
iii. Up to Single borrower exposure limit
iv. Funded 15% of Capital & Non Funded 35% of Capital.
238. The Primary Security of Cash Credit loan is
i. Mortgage of Land
ii. Hypothecation of Stock
iii. Post dated cheque
iv. Insurance.
239. The Primary Security of Overdraft (work order) is
i. Mortgage of Land & Building
ii. Hypothecation of Stock
iii. Personal Guarantee of the Proprietors/Directors
iv. Assignment of Bill.
240. What is the usual tenure of a term loan?
A. 6 months
B. 2 years
C. 5 years
D. Both B & C
241. What is the usual tenure of a time loan?
A. 6 months
B. 3 months
C. 9 months
D. All of the above
242. How many broad categories are there in SME?
A. 2
B. 3 (Trading, Service, Manufacturing) 50,100,250
C. 4
D. 5

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

A. Trading
B. Service
C. Manufacturing
 CREDIT QUESTIONS SUMMARIZED (2020) @iq_25

D. All of the above

244. How many loan classification categories are there?
A. 2
B. 4
C. 5
D. 6
245. How long it takes for an overdue loan to become Sub Standard (SS)?
A. 2 months
B. 3 months
C. 6 months
D. None
246. What does CIB stands for?
A. Customer Information Bureau
B. Credit Information Bureau
C. Credential Information Bureau
D. None
247. 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
248. 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
249. What will be the required down payment for 1 st time rescheduling a continuous loan of Tk. 2.00
crore?
A. 10%
B. 15%
C. 20%
D. 25%
250. Reschedule procedure must be completed within ____ after giving the required down payment.
A. 1 month
B. 2 months
C. 3 months
D. 4 months
251. At least how many years financial is required to prepare CRG?
A. 1 year
B. 2 years
C. 3 years
D. 5 years
252. 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

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

A. 1 C. 3
B. 2 D. 4
254. Highest ceiling of Loan Deposit Ratio is-
 CREDIT QUESTIONS SUMMARIZED (2020) @iq_26

a) Maximum 80%,
b) Maximum 88%,
C) Maximum 90%,
d) Maximum 70%
255. How many types of securities are available to secure loan-
a) 1
b) 2
c) 3
d) 4
256. How many parties are involved in guarantee?
a) 1
b) 2
c) 3
d) 4
257. How many types of charges are in practice to secure a loan-
a). 7 c). 5
b). 3 d). 6
258. 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
259. What is the primary security of HBL(Com)?
a) Postdated Cheque
b) Personal Guarantee
c) Land & Building
d) All of the above
260. Which party possesses the ownership of the leased product in lease finance?
a) Bank
b) Client
c) Both Bank & Client
d) 3rd party Vendor
261. 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
262. If the CRG score of a firm is 66 then the grade is-
a) Good
b) Acceptable
c) Marginal
d) Doubtful
263. Pledge as a method of charging securities are defined in:
(A) Transfer of Property Act
(B) Contract Act -1872 sec 126 (C) Sale of goods Act
264. Charging Securities means:
(A) Becoming owner of the security.
(B) Making security available as a cover for the said advance

(C) Selling /liquidating of the securities for adjustment of the loan without intimation/ approval of any
other parties.
265. In a contract of guarantee, there are three parties. They are:
(A) Promisor / Promisee / guarantee.
(B) Promisee / guarantee / contractor.
 CREDIT QUESTIONS SUMMARIZED (2020) @iq_27

(C) Debtor / creditor / guarantor.

266. 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
267. 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
268. 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
269. Letter of Disclaimer is required in case of:-
(a) Own godown
(b) Rental godown
(c) Both (a) & (b)
(d) None of the above
270. 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.
271. 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
272. 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
273. 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
274. 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)

275. 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)
 CREDIT QUESTIONS SUMMARIZED (2020) @iq_28

276. 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
(d) 1.75 times of the proposed limit
277. Which of the following is a continuous loan?
(a) HBL(Com.)
(b) Time loan
(c) CC(H)
(d) Lease Finance
278. 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
279. What does ‘SPC’ stand for:
(a) Sustainable Property Certificate
(b) Security Perfection Certificate
(c) Both (a) & (b)
(d) None of the above.
280. What is the basic difference between OD (Gen) and CC (Hypo)?
A. Stock
B. Security
C. Capacity
D. None of the above
281.Current Ratio is
A. Quick assets / total liability
B. Current assets /current liability
C. External Equities / Internal equities
D. All of the above
282. How many types of lien
A. 03
B. 05
C. 06
D. 02
283. 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
C. Capital adequacy, Asset quality, Management Earnings, Liquidity & sensitivity to market
D. None of the Above
284. 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

285. 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
286. Maximum what % of current remaining time to maturity of a term loan may be extended?
A. 35 %
B. 25 %
 CREDIT QUESTIONS SUMMARIZED (2020) @iq_29

C. 10 %
D. None
287. Loan can be defined by:
(A) Fixed Monthly Installments.
(B) Fixed Asset & Liabilities.
(C) Stock & Collateral.
(d) Receivable & Payable.
288. Banks grant advances to the borrowers for purchase of Machineries in which mode?
(A) CC(H)
(B) OD(Gen)
(C) LTR
(D) Lease- Finance.
289. Letter of Continuity is taken from whom?
(A) Proprietor. (C) Owner of the Shop & Godown premises.
(B) Supplier. (D) Wife of the proprietor.
290. In practice which liability can be continue for a long period??
(A) Hire Purchase
(B) Lease Finance
(C) Car Loan
(d) CC (Hypo)
291. Temporary Overdraft can be allowed on which account?
(A) Current Account.
(B) Saving Account.
(C) SOD Account.
(d) None of above.
292. Which type of Advance can be repayment without any specific date?
(A) LTR.
(B) LIM.
(C) CC(Hypo).
(d) OAP
293. Memorandum of Association is necessary for which type of Business formation?
(A) Private Limited Company.
(b) Partnership Firm.
(c) Proprietorship Firm
(d) A& B.
294. “Form XII” reflects what?
(A) Partners.
(B) Fixed Assets
(C) Floating Assets.
(D) Change of Directors & Shares.
295. What can also be defined as a part of “Syndication Loan”?
(A) Large Loan
(B) Long Term Loan.
(C) Bridge Finance.
(D) Temporary Overdraft.
296. In a Mortgage what is specified?
(A) Loan limit.
(B) Loan Period
(C) Interest Rate
(D) Immovable Property.
297. “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.
 CREDIT QUESTIONS SUMMARIZED (2020) @iq_30

298. 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
299. Bad Loans & Advances make impact on:
(A) Income
(B) Profit
(C) Reserve
(D) Bank’s Capital.
300. Once repaid in full or in part, cannot be drawn again is :
(A) Loan (C) Financial Instrument.
(B) Advance (D) All of Above.
301. The weight of relationship risk in CRG Report is…….
a) 10%
b) 12%
c) 18%
d) 50%
302. 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
303. 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
304. 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
305. Rescheduled Amount should be repaid in ___________ installments.
A. Quarterly
B. Monthly
C. Fortnightly
D. Yearly
306. There are ______ Grading in terms of CRG-
A. 03 C. 08
B. 09 D. 04
307.All Un Classified loan other than SMA& CL will be treated as______?
A. Superior
B. Standard

C. Special Mention Account

D. Bad/Loss
308. Which Loans will have to be reported to the CIB of Bangladesh?
A. Superior
B. Standard
C. Special Mention Account
D. Bad/Loss
309. Full form of RSD?
A. Riot, Strike & Demolition
B. Risk, Steal, Demurrage
 CREDIT QUESTIONS SUMMARIZED (2020) @iq_31

C. Riot, Safety, Damage

D. None of the above
310. 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
311. 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
312. 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
313. Primary security of OD (G) is
A. Stock
B. Account Receivables
C. FDR
D. None of the above
314. Credit Rating Report is mandatory for facilities above
A. 2.00 crore
B. 30 lacs and above
C. 0.50 crore
D. None of the above
315. 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
316. Full form of BLA is
A. Branch Legal Advisor
B. Branch legal Advocate
C. Bank Legal Advisor
D. Bank Legal Advocate
317. Which one is indirect charges-
A. Hypothecation
B. Lien
C. Set-off
D. Mortgage

318. NEC stands for -

A. Non Encumbered Certificate
B. Non Enclosure Certificate
C. Non Encryption Certificate
D. Non Encumbrance Certificate
319. For loan regularization purpose, the Management can extend the validity of a continuous credit
facility for a period –
A. Upto 03 months
B. Upto 05 months
C. Upto 09 months
D. Upto 06 months
 CREDIT QUESTIONS SUMMARIZED (2020) @iq_32

320. Which of the following working capital loan facility best suits a Customer, engaged in trading of
perishable items?
A. Lease Finance
B. Overdraft (General)
C. Import finance
D. None of the above
321. 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
322. Which of the following is not a continuous loan?
a. Overdraft (General)
b. Lease Finance
c. CC(H)
d. None of the above
323. In CRG which is not a parameter of Financial Risk?
a. Leverage
b. Liquidity
c. Security Coverage
d. Profitability
324. Which is the parameter of Business Risk in CRG?
a. Age of Business
b. Business Outlook
c. Business Experience
d. Both A & B
325. How Many Components are there in CRG?
A. 3
B. 4
C. 5
D. 6
326. The weight (Percentage) of Business Risk in CRG is……?
A. 50
B. 18
C. 12 D. 10
327. Corporate Guarantee is……?
E. Personal Security
F. Collateral Security
G. Support Security
H. All of the above
328. Assessment of working capital is important for __________.
A. Smooth operation
B. Profit Maximization

C. All of the above

D. None of the above
329. 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
330. Which is not a defaulted loan?
E. Bad and Loss
F. Substandard
 CREDIT QUESTIONS SUMMARIZED (2020) @iq_33

G. SMA
H. Doubtful
331. Provision is required against Classified Loan as Sub Standard.
E. 50%
F. 20%
G. 100%
H. None of the above
332. Net working capital=
□ CA (Current Asset);
□ CL (Current Liability);
□ CA-CL;
□ None of the above.
333. If yearly operating expense of a firm is Tk.100.00 lac and no. of operating cycle per year is 4,
working capital requirement of that firm will be-
□ Tk.20 lac
□ Tk.25 lac;
□ Tk.50 lac;
□ None of the above.
334. Which of the followings is part of Current Asset?
□ Inventories
□ Marketable Securities;
□ Receivables;
□ All of the above.
335. Which of the followings is not a part of Current Liability?
□ Accounts Payables
□ Short Term Loan;
□ CC (H);
□ Advance to suppliers.
336. A customer has CC (H) limit of Tk. 120 Crore from our Bank. How much stock the customer
must have to withdraw the full amount if margin is 40%?
a) Tk. 300 crore
b) Tk. 120 crore
c) Tk. 200 crore
Tk. 180 crore (Hints:100-40=60, 60=100=100/60*120=200)
337. A customer has CC (H) limit of Tk. 40.00 crore at 30% margin. On a particular day the
customer has stock of Tk. 30 crore. What is the drawing power of the customer?
a) Tk. 28 crore
b) Tk. 12 crore
c) Tk. 40 crore i.e. the whole limit
d) Tk. 21 crore
(Hints: 30-30%=20.70=21)

338.Which one of the following is a clean loan?

a) A Term Loan of Tk. 10 crore against collateral security of Tk. 15.00 crore
b) A Demand Loan of Tk. 10 crore against collateral property of Tk. 12.00 crore
c) A Time Loan of Tk. 10 crore without any collateral security
d) A Continuous Loan of Tk. 5 crore against collateral security of Tk. 3 crore
339. Which one of the following is an example of Leverage ratio?
a) Debt to total asset ratio
b) Debt-Equity ratio
c) Debt to capital ratio
d) All of the above
340. Which one is the correct formula of Cash Conversion Cycle?
a) Inventory Turnover in Days + Receivables Turnover in Days – Payable Turnover in Days
b) Inventory Turnover in Days + Receivables Turnover in Days
 CREDIT QUESTIONS SUMMARIZED (2020) @iq_34

c) Inventory Turnover in Days + Payable Turnover in Days - Receivables Turnover in Days

d) Receivables Turnover in Days - Payable Turnover in Days
341. How many types of inventories are there in a manufacturing company?
a) One
b) Two
c) Three
d) Four
342. Which one is the correct formula to calculate Debt Service Coverage Ratio?
a) EBITDA/(Interest + Current Maturity of Long-Term Debt)
b) EBIT/Interest
c) EBITDA/ Current Maturity of Long-Term Debt
d) EBITDA/Interest
343. A person has applied for a loan from our Bank for Tk. 10.00 crore and offered landed
properties to secure the loan. The landed properties are located outside City Corporation area but
within Municipality/Pouroshova. What should be the Forced Sale Value (FSV) of the mentioned
properties?
a) Tk. 12.50 crore
b) Tk. 15.00 crore
c) Tk. 17.50 crore
d) Tk. 10.00 crore
Hints:10*1.50=15
344. A customer has CC (H) limit of Tk. 10.00 crore, SLC limit of Tk. 10.00 crore and LTR limit
of Tk. 5.00 crore. What is the maximum amount of EOL the customer can avail over his CC (H)
limit?
a) 10% of CC(H) limit i.e. Tk. 1.00 crore
b) 10% of composite limit i.e. Tk. 2.50 crore
c) 10% of total funded limit i.e. Tk. 1.50 crore
d) None of the above
Hints:CC10+LTR 5=15*10%=1.5
345. Which one of the following will not be treated as Default loan?
a) Substandard
b) Doubtful
c) Bad & Loss
d) All of the above are default loan
346. What is the rate of provision on Off-Balance Sheet exposures?
a) 0.25% on total exposure
b) 1.00% after deducting cash margin/eligible collateral
c) 1.00% on total exposure
d) 2.00% on total exposure
347. When interest is not charged in a loan account?
When the loan is classified as-
a) Substandard
b) Doubtful
c) Bad & Loss
d) Interest is charged in all cases.
348. If a credit facility is supported by Guarantee of other Banks or by Government Guarantee,
the Managing Director can approve loan up to:
a) Whole limit
b) Tk. 10.00 crore
c) Tk. 15.00 crore
d) Tk. 7.50 crore
349. Which one of the following is liquidity ratio?
a) Current Ratio
b) Quick Ratio
c) Cash Ratio
 CREDIT QUESTIONS SUMMARIZED (2020) @iq_35

d) All of the above.

350. What are the parts of Cash Flow Statement?
a) Operating Activities & Investing Activities
b) Investing Activities & Financing Activities
c) Operating Activities, Financing Activities & Investing Activities
d) Operating Activities & Financing Activities
351. A company has current liabilities of Tk.10 crore, long-term liabilities of Tk. 7 crore,
current assets of Tk.15.00 crore and fixed assets of Tk.10 crore. What is the current ratio of the
company?
a) 1.50
b) 1.47
c) 2.14
d) 1.42
352. According to CRG template, which of the following is a component of Relationship Risk?
a) Experience c) Succession
b) Security Coverage d) Account Conduct
353. According to CRG template, which of the following is not a component of
Business/Industry Risk?
a) Size of Business
b) Industry growth
c) Market competition
d) Team work
354. Lending based solely on general standing and reputation of the borrower is known as:
a. Name Lending.
b. Customer Lending
c. Company Lending
d. Fame Lending
355. Pricing of the Loan is set by?
a. CRMD
b. Corporate Banking Division
c. ALCO
d. General Banking Division
356. Renewal of credit proposal should be sent before
a. 02 months before expiry
b. 03 months before expiry
c. SMA status
d. Quarter end
357. CRG is an important tool for which of the followings?
a) Credit Risk Pricing
b) Credit Risk Measurement
c) Credit Risk Mitigation
d) Credit Risk Monitoring
358. Which of the following mode of charge is much used in Syndication loan?
a) First Charge
b) Floating Charge
c) Pari-passu charge
d) Fixed Charge
359. Which of the followings is a part of credit report analysis?
□ Managerial Aspect;
□ Technical Aspect;
□ Financial Aspect;
□ All of the above.
360. Which of the followings is not primary source of credit investigation?
□ Personal Interview;
□ Physical visit;
 CREDIT QUESTIONS SUMMARIZED (2020) @iq_36

□ Loan Application Form;

□ Financial Report.
361. Which of the followings is not secondary source of credit investigation?
□ Account Statement;
□ CIB Report;
□ Loan Application Form;
□ Financial Report.
362. Liquidity Ratio indicates to meet future-
□ Short term financial obligation;
□ Long term financial obligation;
□ Both Short and Long term financial obligation;
□ None of the above.
363. Asset Utilization (Activity) Ratio indicates to meet-
□ Short term financial obligation;
□ Long term financial obligation;
□ Working Capital obligation;
□ None of the above.
364. Debt Service Coverage Ratio indicates to meet-
□ Interest Servicing obligation;
□ Principal Servicing obligation;
□ Both Interest & Principal Servicing obligation;
□ None of the above.
365. Interest Coverage Ratio indicates to meet-
□ Interest Servicing obligation;
□ Principal Servicing obligation;
□ Both Interest & Principal Servicing obligation;
□ None of the above.
366. Which indicates the profitability Ratio-
□ Gross Profit Margin;
□ Net Profit Margin;
□ Return on Equity;
□ All the above.
367. Which does not indicate the Asset Utilization Ratio-
□ Receivables Turnover;
□ Payable Turnover;
□ Inventory Turnover;
□ Return on Asset.
368. IRR is a return when NPV is-
□ =0;
□ >0;
□ <0;
□ None of the above.
369. A project is financially viable when NPV is-?
□ =0;
□ >0;
□ <0;
□ None of the above.
370. Break Even Point is related to….?
□ Project Finance
□ Working Capital Finance;
□ Bridge Finance;
□ None of the above.
371. Capital Budgeting is a part of:
(a) Investment Decision
(b) Working Capital Management
 CREDIT QUESTIONS SUMMARIZED (2020) @iq_37

(c) Marketing Management

(d) Capital Structure
372. Capital Budgeting deals with:
(a) Long-term Decisions
(b) Short-term Decisions
(c) Both (a) and (b)
(d) Neither (a) nor (b).
373. What is Risk?
a. Uncertainty of expected/budgeted outcome
b. Certainty of expected/budgeted outcome
c. Both (A+B)
d. None of the above
374. Common Equity Tier-1 capital does not include-
a. Paid up Capital
b. General Reserve
c. Retained earnings
d. General Provisions
375. Treasury Bills are sold by
a. Bangladesh Bank
b. Security Exchange Commission
c. Dhaka Stock exchange
d. National Savings Bureau
376. RWA denotes:
a. Revenue Weight Analysis
b. Risk Weighted Asset
c. Risk Weighted Adequacy
d. Risk Weightier Authority
377. What does ECAI stand for?
a. External Credit Assessment &Insurance
b. External Credit Analysis Action
c. External Credit Assessment Institution
d. External Credit Analysis institution
378. What does RMP stand for?
a. Risk Management Paper
b. Review of Monetary Policy
c. Both (A+B)
d. None of the above
379. What does stand for CRAR in Basel-III?
a. Capital to Risk- Weighted Asset Ratio
b. Credit Risk Assessment Report
c. Both (A+B)
d. None of the above
380. According to BASEL-III, risk weight claims for equivalent to BB rating Grade- 1 rated customer is-
a. 50%
b. 20%
c. 25%
d. 100%
381. Market Risk as exerted from BASEL-III is formed of ---
a. Price risk
b. Rate of return risk
c. Exchange rate risk
d. All of these
382. Statutory Deposit with Bangladesh Bank includes-
a. CRR b. SLR
b. SLR c. Both a & b
383. How many pillars are there in Basel III?
 CREDIT QUESTIONS SUMMARIZED (2020) @iq_38

A. 3
B. 4
C. 5
D. 6
384. BIS stands for-
a. Bank for International Settlement
b. Bank for International Strategy
c. Bank for Inter-Nation Settlement
d. None
385. The pillar ‘Market discipline’ implies to-
a. Credit disclosure
b. Public disclosure
c. Supervision
d. None
386. As per Basel III ‘MCR’ (Minimum Capital Requirement) now follows-
a. Standardized Approach
b. Basic indicator approach
c. Both a & b
d. None of the above
387. Tier -I capital encompass in Basel -III -
a. Common Equity Tier-1
b. Additional Tier-1
c. Both a & b
d. Supplementary capital
388. Tier II capital in Basel III includes-
a. Dividend Equalization Reserve
b. General Reserve
c. Both a & b
d. General Provisions

389. Common equity Tier-1capital involve to the following one

a. Paid up capital
b. General provision
c. Both a & b, d. None
390. In rating client getting equivalent to BB rating 2, risk weight -
a. 20%
b. 30%
c. 50%
d. 100%
391. In rating client getting equivalent to BB rating 3 & 4, risk weight -
e. 20%
f. 30%
g. 50%
h. 100%
392. In rating of the client If the client is un rated , risk weight –
a. 20%
b. 50%
c. 100%
d. 125%
393. The client having worst performance having BB rating 5 or 6 risk weight-
a. @ 50%
b. @ 100%
c. @ 150%
 CREDIT QUESTIONS SUMMARIZED (2020) @iq_39

d. @ 120%
394. Basel’ is
a. name of a Bank of Switzerland
b. name of a city of Switzerland
c. name of a organization of Switzerland
d. name of a community of Switzerland
395. Stress Testing is carried out on-
a. Quarterly basis
b. Half Yearly Basis
c. Yearly Basis
d. Monthly Basis
396. How many risk factors considered under stress testing-
a. 4
b. 5
c. 6
d. 3
397. ICAAP stands for-
a. Internal Capital Adequacy Assessment Process
b. Internal Capital Assessment Adequacy Process
c. Both a & b
d. None
398. Result of Stress Testing is submitted to -
a. BRPD
b. DOS
c. FSD
d. None

399. Basel –III is reported to the following Departments of BB -

a. BRPD
b. DOS
c. FSD
d. None
400. Implementation of Basel –III in Bangladesh will complete at -
a. 2019
b. At the end of 2019
c. 2018
d. 2020
401. National as well as International requirement of Minimum Capital Requirement as per Basel –III
accord is -
a. 10%, 8%
b. 8%, 10%
c. 8%, 10.50%
d. None of the Above
402. Tier 1 Capital is also known as -
a. Going-Concern Capital
b. Gone-Concern Capital
c. Common Equity Capital
d. None of the Above
403. Tier 2 Capital is also known as -
a. Going-Concern Capital
b. Gone-Concern Capital
c. Common Equity Capital
 CREDIT QUESTIONS SUMMARIZED (2020) @iq_40

d. None of the Above

404. Components of Common Equity Tier 1 Capital are -
a. Statutory Reserve
b. General Reserve
c. Retained Earnings
d. All of the Above
405. Liquidity Coverage Ratio should be -
a. Less than 100
b. Greater than 100
c. Equal or Greater than 100
d. Equal or Less than 100
406. Basel III implementation process starts from
a. January, 2013
b. January, 2014
c. January, 2015
d. January, 2016
407. Full implementation of Basel III in Bangladesh will be initiated.
a. January, 2019
b. January, 2020
c. January, 2021
d. January, 2022
408. What percentage of Risk Weighted Asset should be kept in Common Equity Tier 1 capital under
Basel III.
a. < 4.50%
b. > 4.50%
c. ≥ 4.50%
d. ≤ 4.50%

409. What percentage of Leverage Ratio should be kept under Basel III.
a. 3%
b. 2%
c. 5%
d. 4%
410. What percentage of Liquidity Coverage Ratio should be kept under Basel III.
a. ≥ 100%
b. ≤ 100%
c. > 100%
d. < 100%