Jaiib Principle & Pactice Of Banking Final Mock

51 Questions | Total Attempts: 31

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Jaiib Principle & Pactice Of Banking Final Mock

B. P. SARKHEL Ex-Faculty Central Bank Of India. Time: 2 hours. No Negatives, Take the Certificate ,Find your grey area and reviseMay copy the Test to your database


Questions and Answers
  • 1. 
    Factor in factoring refers to
    • A. 

      Purchase goods as per sales of goods Act

    • B. 

      Conduct auction of goods

    • C. 

      Purchase receivables created out of sales of goods and services

    • D. 

      All

    • E. 

      None

  • 2. 
    Factoring is a service that is concerned with the financing and collection of account receivable generally in domestic
    • A. 

      True

    • B. 

      False

  • 3. 
    Factoring is an arrangement for
    • A. 

      Management of receivables

    • B. 

      Maintaining sales ledgers and submitting sales accounts

    • C. 

      Collecting debt

    • D. 

      All

  • 4. 
    Factoring can be
    • A. 

      With recourse

    • B. 

      Without recourse

    • C. 

      Either

    • D. 

      Neither

  • 5. 
    With recourse factoring refers to
    • A. 

      The client of the factor continues with his responsibility

    • B. 

      The factors of the client takes the entire responsibilities and makes the client free

    • C. 

      In India all factoring are with recourse

    • D. 

      In with recourse factor will pay not 100% but maximum 85% of the invoice to the client/seller

    • E. 

      1+3+4

  • 6. 
    Factor collects dues from the purchase(client's debtor on due date) and pays to the client(seller/creditor)
    • A. 

      True

    • B. 

      False

  • 7. 
    The balance payment is paid by the factor to the client /seller after recovering from the client's debtor/purchaser
    • A. 

      True

    • B. 

      False

  • 8. 
    The factor recovers financial charges from the client for funds prepaid to the later
    • A. 

      True

    • B. 

      False

  • 9. 
    Factors are entitled to service charges for maintenance of sales receivables
    • A. 

      True

    • B. 

      False

  • 10. 
    Factor may or may not incumbent credit risk
    • A. 

      True

    • B. 

      False

  • 11. 
    Factoring enables companies to sale their outstanding book debts against cash
    • A. 

      True

    • B. 

      False

  • 12. 
    There are two types of factoring,Recourse factoring and Without recourse factoring
    • A. 

      True

    • B. 

      False

  • 13. 
    Under recourse factoring , while the factor fails to collect the dues from the debtor of the client, the factor will recover the amount already paid to the client
    • A. 

      True

    • B. 

      False

  • 14. 
    In non recourse factoring the factor provides both finance and credit protection
    • A. 

      True

    • B. 

      False

  • 15. 
    In non-recourse factoring factors bear the risk of bad debts on failure to collect the dues from the purchaser / client's debtor.
    • A. 

      True

    • B. 

      False

  • 16. 
    A factor operates by buying from the client/selling company, their invoiced debts.This purchase by the factor is usually done providing credit protection to the client and bear    responsibility of credit control/collection and sales accounting work and thereby facilitating the management of the client company to concentrate on production and sales without being concerned with already sold receivables
    • A. 

      True

    • B. 

      False

  • 17. 
    Domestic factoring refers to  management of receivables emanated from domestic trade
    • A. 

      True

    • B. 

      False

  • 18. 
    Under domestic factoring the bills receivable is met up by the factors to the seller drawers on acceptance by the buyer/drawees as a prepayment of about 80% of invoiced value after deducting factor's discount at normal rate of interest for the usance period to the client supplier and the balance invoice value shall be paid to the client on collection from the purchaser
    • A. 

      True

    • B. 

      False

  • 19. 
    When the purchaser of the client seller fails to  pay the due amount on due date, the client supplier shall make good to the factor of the payment
    • A. 

      True

    • B. 

      False

  • 20. 
    Mutual Fund organization is licensed by RBI but mutual fund instruments are regulated by SEBI
    • A. 

      True

    • B. 

      False

  • 21. 
    Common Equity under Basel III should be 4.5 % as per Basel but it should be 5.5 % as per RBI.
    • A. 

      True

    • B. 

      False

  • 22. 
    Minimum Tier I capital & Capital Conservation Buffer under Basel III for banks in india should be 8 % whereas as per Basel it should be 7 %
    • A. 

      True

    • B. 

      False

  • 23. 
    CCB & CCCB in Basel III stands for:
    • A. 

      Capital Conservation Buffer / Counter Cyclical Capital Buffer

    • B. 

      Credit conservation buffer & counter cyclical credit buffer

    • C. 

      Credit creation buffer & capital & credit conservation buffer

    • D. 

      None

  • 24. 
    LCR in Basel III stands for:
    • A. 

      Limit Coverage Ratio

    • B. 

      Liquid Credit Ratio

    • C. 

      Liquidity Coverage Ratio

    • D. 

      None

  • 25. 
    Common Equity under Basel II is min.--------------------------%
    • A. 

      2

    • B. 

      2.5

    • C. 

      3.5.

    • D. 

      4.5

    • E. 

      5.5