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Your results are here!! for" JAIIB Paper 2 Module B Quiz 4 "
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Question 1 of 20
1. Question
Which statement correctly describes minor borrower?
Correct
Correct answer: Apply legal-capacity rules and bank policy before considering a facility. Contractual capacity is a legal issue; minors are not ordinary adult borrowers. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
Incorrect
Correct answer: Apply legal-capacity rules and bank policy before considering a facility. Contractual capacity is a legal issue; minors are not ordinary adult borrowers. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
Unattempted
Correct answer: Apply legal-capacity rules and bank policy before considering a facility. Contractual capacity is a legal issue; minors are not ordinary adult borrowers. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
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Question 2 of 20
2. Question
A credit officer is reviewing minor borrower. Which approach is most appropriate?
Correct
Correct answer: Apply legal-capacity rules and bank policy before considering a facility. Contractual capacity is a legal issue; minors are not ordinary adult borrowers. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
Incorrect
Correct answer: Apply legal-capacity rules and bank policy before considering a facility. Contractual capacity is a legal issue; minors are not ordinary adult borrowers. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
Unattempted
Correct answer: Apply legal-capacity rules and bank policy before considering a facility. Contractual capacity is a legal issue; minors are not ordinary adult borrowers. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
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Question 3 of 20
3. Question
For JAIIB purposes, which option best explains minor borrower?
Correct
Correct answer: Apply legal-capacity rules and bank policy before considering a facility. Contractual capacity is a legal issue; minors are not ordinary adult borrowers. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
Incorrect
Correct answer: Apply legal-capacity rules and bank policy before considering a facility. Contractual capacity is a legal issue; minors are not ordinary adult borrowers. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
Unattempted
Correct answer: Apply legal-capacity rules and bank policy before considering a facility. Contractual capacity is a legal issue; minors are not ordinary adult borrowers. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
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Question 4 of 20
4. Question
Which action follows sound banking practice in a case involving minor borrower?
Correct
Correct answer: Apply legal-capacity rules and bank policy before considering a facility. Contractual capacity is a legal issue; minors are not ordinary adult borrowers. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
Incorrect
Correct answer: Apply legal-capacity rules and bank policy before considering a facility. Contractual capacity is a legal issue; minors are not ordinary adult borrowers. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
Unattempted
Correct answer: Apply legal-capacity rules and bank policy before considering a facility. Contractual capacity is a legal issue; minors are not ordinary adult borrowers. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
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Question 5 of 20
5. Question
Which principle should guide a bank when dealing with minor borrower?
Correct
Correct answer: Apply legal-capacity rules and bank policy before considering a facility. Contractual capacity is a legal issue; minors are not ordinary adult borrowers. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
Incorrect
Correct answer: Apply legal-capacity rules and bank policy before considering a facility. Contractual capacity is a legal issue; minors are not ordinary adult borrowers. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
Unattempted
Correct answer: Apply legal-capacity rules and bank policy before considering a facility. Contractual capacity is a legal issue; minors are not ordinary adult borrowers. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
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Question 6 of 20
6. Question
Which statement correctly describes 5 Cs of credit?
Correct
Correct answer: Character, capacity, capital, collateral and conditions. The 5 Cs are complementary dimensions used to evaluate borrower and transaction risk. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
Incorrect
Correct answer: Character, capacity, capital, collateral and conditions. The 5 Cs are complementary dimensions used to evaluate borrower and transaction risk. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
Unattempted
Correct answer: Character, capacity, capital, collateral and conditions. The 5 Cs are complementary dimensions used to evaluate borrower and transaction risk. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
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Question 7 of 20
7. Question
A credit officer is reviewing 5 Cs of credit. Which approach is most appropriate?
Correct
Correct answer: Character, capacity, capital, collateral and conditions. The 5 Cs are complementary dimensions used to evaluate borrower and transaction risk. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
Incorrect
Correct answer: Character, capacity, capital, collateral and conditions. The 5 Cs are complementary dimensions used to evaluate borrower and transaction risk. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
Unattempted
Correct answer: Character, capacity, capital, collateral and conditions. The 5 Cs are complementary dimensions used to evaluate borrower and transaction risk. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
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Question 8 of 20
8. Question
For JAIIB purposes, which option best explains 5 Cs of credit?
Correct
Correct answer: Character, capacity, capital, collateral and conditions. The 5 Cs are complementary dimensions used to evaluate borrower and transaction risk. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
Incorrect
Correct answer: Character, capacity, capital, collateral and conditions. The 5 Cs are complementary dimensions used to evaluate borrower and transaction risk. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
Unattempted
Correct answer: Character, capacity, capital, collateral and conditions. The 5 Cs are complementary dimensions used to evaluate borrower and transaction risk. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
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Question 9 of 20
9. Question
Which action follows sound banking practice in a case involving 5 Cs of credit?
Correct
Correct answer: Character, capacity, capital, collateral and conditions. The 5 Cs are complementary dimensions used to evaluate borrower and transaction risk. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
Incorrect
Correct answer: Character, capacity, capital, collateral and conditions. The 5 Cs are complementary dimensions used to evaluate borrower and transaction risk. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
Unattempted
Correct answer: Character, capacity, capital, collateral and conditions. The 5 Cs are complementary dimensions used to evaluate borrower and transaction risk. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
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Question 10 of 20
10. Question
Which principle should guide a bank when dealing with 5 Cs of credit?
Correct
Correct answer: Character, capacity, capital, collateral and conditions. The 5 Cs are complementary dimensions used to evaluate borrower and transaction risk. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
Incorrect
Correct answer: Character, capacity, capital, collateral and conditions. The 5 Cs are complementary dimensions used to evaluate borrower and transaction risk. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
Unattempted
Correct answer: Character, capacity, capital, collateral and conditions. The 5 Cs are complementary dimensions used to evaluate borrower and transaction risk. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
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Question 11 of 20
11. Question
Which statement correctly describes repayment capacity?
Correct
Correct answer: Analyse cash flows, income and existing debt obligations. Capacity measures whether the borrower can repay from available and expected cash generation. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
Incorrect
Correct answer: Analyse cash flows, income and existing debt obligations. Capacity measures whether the borrower can repay from available and expected cash generation. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
Unattempted
Correct answer: Analyse cash flows, income and existing debt obligations. Capacity measures whether the borrower can repay from available and expected cash generation. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
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Question 12 of 20
12. Question
A credit officer is reviewing repayment capacity. Which approach is most appropriate?
Correct
Correct answer: Analyse cash flows, income and existing debt obligations. Capacity measures whether the borrower can repay from available and expected cash generation. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
Incorrect
Correct answer: Analyse cash flows, income and existing debt obligations. Capacity measures whether the borrower can repay from available and expected cash generation. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
Unattempted
Correct answer: Analyse cash flows, income and existing debt obligations. Capacity measures whether the borrower can repay from available and expected cash generation. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
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Question 13 of 20
13. Question
For JAIIB purposes, which option best explains repayment capacity?
Correct
Correct answer: Analyse cash flows, income and existing debt obligations. Capacity measures whether the borrower can repay from available and expected cash generation. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
Incorrect
Correct answer: Analyse cash flows, income and existing debt obligations. Capacity measures whether the borrower can repay from available and expected cash generation. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
Unattempted
Correct answer: Analyse cash flows, income and existing debt obligations. Capacity measures whether the borrower can repay from available and expected cash generation. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
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Question 14 of 20
14. Question
Which action follows sound banking practice in a case involving repayment capacity?
Correct
Correct answer: Analyse cash flows, income and existing debt obligations. Capacity measures whether the borrower can repay from available and expected cash generation. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
Incorrect
Correct answer: Analyse cash flows, income and existing debt obligations. Capacity measures whether the borrower can repay from available and expected cash generation. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
Unattempted
Correct answer: Analyse cash flows, income and existing debt obligations. Capacity measures whether the borrower can repay from available and expected cash generation. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
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Question 15 of 20
15. Question
Which principle should guide a bank when dealing with repayment capacity?
Correct
Correct answer: Analyse cash flows, income and existing debt obligations. Capacity measures whether the borrower can repay from available and expected cash generation. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
Incorrect
Correct answer: Analyse cash flows, income and existing debt obligations. Capacity measures whether the borrower can repay from available and expected cash generation. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
Unattempted
Correct answer: Analyse cash flows, income and existing debt obligations. Capacity measures whether the borrower can repay from available and expected cash generation. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
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Question 16 of 20
16. Question
Which statement correctly describes CMA data?
Correct
Correct answer: Financial statements, projections and working-capital analysis. CMA data supports financial and working-capital analysis where required under bank norms. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
Incorrect
Correct answer: Financial statements, projections and working-capital analysis. CMA data supports financial and working-capital analysis where required under bank norms. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
Unattempted
Correct answer: Financial statements, projections and working-capital analysis. CMA data supports financial and working-capital analysis where required under bank norms. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
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Question 17 of 20
17. Question
A credit officer is reviewing CMA data. Which approach is most appropriate?
Correct
Correct answer: Financial statements, projections and working-capital analysis. CMA data supports financial and working-capital analysis where required under bank norms. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
Incorrect
Correct answer: Financial statements, projections and working-capital analysis. CMA data supports financial and working-capital analysis where required under bank norms. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
Unattempted
Correct answer: Financial statements, projections and working-capital analysis. CMA data supports financial and working-capital analysis where required under bank norms. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
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Question 18 of 20
18. Question
For JAIIB purposes, which option best explains CMA data?
Correct
Correct answer: Financial statements, projections and working-capital analysis. CMA data supports financial and working-capital analysis where required under bank norms. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
Incorrect
Correct answer: Financial statements, projections and working-capital analysis. CMA data supports financial and working-capital analysis where required under bank norms. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
Unattempted
Correct answer: Financial statements, projections and working-capital analysis. CMA data supports financial and working-capital analysis where required under bank norms. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
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Question 19 of 20
19. Question
Which action follows sound banking practice in a case involving CMA data?
Correct
Correct answer: Financial statements, projections and working-capital analysis. CMA data supports financial and working-capital analysis where required under bank norms. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
Incorrect
Correct answer: Financial statements, projections and working-capital analysis. CMA data supports financial and working-capital analysis where required under bank norms. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
Unattempted
Correct answer: Financial statements, projections and working-capital analysis. CMA data supports financial and working-capital analysis where required under bank norms. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
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Question 20 of 20
20. Question
Which principle should guide a bank when dealing with CMA data?
Correct
Correct answer: Financial statements, projections and working-capital analysis. CMA data supports financial and working-capital analysis where required under bank norms. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
Incorrect
Correct answer: Financial statements, projections and working-capital analysis. CMA data supports financial and working-capital analysis where required under bank norms. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.
Unattempted
Correct answer: Financial statements, projections and working-capital analysis. CMA data supports financial and working-capital analysis where required under bank norms. The distractors are incorrect because they conflict with the applicable lending, legal, risk-management or operational principle. In practice, officers should also check the latest RBI directions, the relevant statute and their bank‘s current approved policy.