CAIIB 2020 Retail Banking Mock Tests Set 7

Which of the following statement is correct w.r.t mortgagee’s right to appoint receiver with court’s permission?

I) mortgagee can appoint receiver with court’s permission in case of simple mortgaged

II) mortgagee can appoint receiver with court’s permission in case of equitable mortgaged

III) mortgagee can’t appoint receiver with court’s permission in case of simple mortgaged

IV) mortgagee can’t appoint receiver with court’s permission in case of equitable mortgaged


Options are :

  • Only II,III
  • Only III,IV
  • Only I,II
  • All of the above viz. I to IV

Answer :Only III,IV

CAIIB 2020 Retail Banking Mock Tests Set 8

On default by a mortgagor, in case of mortgage by conditional sale the mortgage has the right to sue for a decree from the court to the effect that the former be debarred forever to get back the mortgaged property. Such a right is called ________


Options are :

  • Right of sale.
  • Right of conditional Sale.
  • Right of Foreclosure.
  • Right of conditional Foreclosure.

Answer :Right of Foreclosure.

Where a mortgagor creates more than one equitable mortgage over the same property in favour of two financing institutions, the institution in whose favour the mortgage is created _______, has priority of charge.


Options are :

  • first
  • last
  • Both will have equal priority.
  • None of the above.

Answer :first

Where a mortgagor has created separate registered mortgages over the same property in favour of two or more financing institutions, the priority of charge will be determined with reference to the date of the execution of the deeds which has been duly registered within _______ of execution (not the date of registration).


Options are :

  • 3 months
  • 4 months
  • 6 months
  • 8 months

Answer :4 months

CAIIB 2020 Bank Financial Management Mock Tests Set 1

Where a mortgagor gives the same property in equitable mortgage to one financing institution and in registered mortgage to another financing institution-


Options are :

  • the priority of charge is determined with reference to the date of execution of title deeds in equitable mortgage and the date of deposit of registered mortgage deed.
  • the priority of charge is determined with reference to the date of deposit of title deeds in equitable mortgage and the date of execution of registered mortgage deed. With registered mortgage superior in priority as compared to equitable mortgage.
  • the priority of charge is determined with reference to the date of deposit of title deeds in equitable mortgage and the date of execution of registered mortgage deed.
  • the priority of charge is determined with reference to the date of deposit of title deeds in equitable mortgage and the date of execution of registered mortgage deed.

Answer :the priority of charge is determined with reference to the date of deposit of title deeds in equitable mortgage and the date of execution of registered mortgage deed.

Where immovable property (of which land is the main constituent) is taken as security (primary or collateral) either by way of registered mortgage or equitable mortgage, which of the following aspects should be looked into-


Options are :

  • Tenure of land.
  • Valuation of land
  • Title of land
  • All of the above.

Answer :All of the above.

To ascertain whether the land is freehold, leasehold or state-owned is termed as


Options are :

  • Tenure of land.
  • Nature of Land
  • Type of Land
  • Mode of Land

Answer :Tenure of land.

CAIIB 2020 Bank Financial Management Mock Tests Set 10

Under ________, the owner is the absolute owner of the land; he is only liable for payment of rates, taxes and assessments to Government and local authorities.


Options are :

  • Free hold
  • Leasehold
  • State-owned
  • All of the above.

Answer :Free hold

In _________, the land is held for the period and on the terms and conditions contained in an instrument called ‘Deed of Lease’


Options are :

  • Free hold
  • Leasehold
  • State-owned
  • All of the above.

Answer :Leasehold

In the case of _________, the ownership vests with the State or Central Government as the case may be and the holder of such land will be entitled to occupancy rights only.


Options are :

  • Free hold
  • Leasehold
  • State-owned
  • All of the above.

Answer :State-owned

CAIIB 2020 Bank Financial Management Mock Tests Set 11

Where the land is not of recent acquisition, it is very important to assess the value of the land in line with the present market trend. Which of the following steps help in this-


Options are :

  • Personal inspection.
  • Comparison with recent sales of similar properties in the neighborhood.
  • Enquiries from parties having a good knowledge of local and values.
  • all of the above.

Answer :all of the above.

What should be done in case where is conclusive proof that original title deeds have been destroyed or irretrievably lost?


Options are :

  • Certified copies of the title deeds issued by the local municipality/municipal corporation should be accepted in such cases.
  • Certified copies of the title deeds issued by the Registrar of deeds should be accepted in such cases.
  • Certified copies of the title deeds issued by the Registrar of Assurances should be accepted in such cases.
  • Certified copies of the title deeds issued by the local MP should be accepted in such cases.

Answer :Certified copies of the title deeds issued by the Registrar of Assurances should be accepted in such cases.

In view of the priority of the Government’s rights over the mortgage in Bank’s favour in the event of the borrower keeping the land revenue/other public dues in arrears, it is necessary to ensure that -


Options are :

  • All land revenue and municipal taxes due on the immovable property have been paid upto date.
  • All land revenue and municipal taxes accruing or falling due, subsequent to the creation of the mortgage are paid promptly in future.
  • No income tax dues are outstanding, to avoid any claim of priority under section 295 of the income Tax Act.
  • all of the above

Answer :all of the above

CAIIB 2020 Bank Financial Management Mock Tests Set 12

The task of investigation of title and scrutiny of title deeds should be entrusted to advocates/ solicitors and specific categorical opinion should be obtained on which of the following points-

I) Whether the documents of title are complete in all respects and sufficient to convey a clear, absolute and marketable title to the property.

II) Whether the property offered as security to the bank is unencumbered/unattached.

III) Whether the documents examined and based on which the opinion is furnished , from a complete set of documents of the subject property and deposit of these create a charge on the property.

IV) Whether the persons seeking to secure the property to the bank have a clear and marketable title thereto and are legally capable of creating the charge thereon in favour of the bank.


Options are :

  • Only II,III
  • Only III,IV
  • Only I,II
  • All of the above viz. I to IV

Answer :All of the above viz. I to IV

The title deeds submitted by the applicants need to be examined to detect any fake/forged title deeds. Which of the following points must be remembered while handling title deeds?

I) Schedule of property and Registration of the document: It is necessary to verify the Schedule of the property where it is situated and the Registration of the same with the Sub-Registrar Office concerned. Any discrepancy could indicate forgery/fraud.

II) Stamp Duty affixed on the document and the consideration shown in the document: It is necessary to verify the consideration paid in the document and also verify the Stamp Duty affixed on the document.

III) Affixation of the stamps, cancellation and date of execution: It is necessary to verify the source of purchase of stamps and its cancellation and also the execution of the document. The execution of the document should be subsequent to the cancellation of stamps/date of purchase.

IV) Examine security marks on the stamp paper, which are visible only on a close examination. The stamp paper should not be mutilated.


Options are :

  • Only II,III,IV
  • Only III,IV
  • Only I,II,III
  • All of the above viz. I to IV

Answer :All of the above viz. I to IV

With respect to registration of charge with CERSAI on security charge. Registration should be made on-line within _______of creation of equitable mortgage.


Options are :

  • 15 days
  • 30 days
  • 45 days
  • 60 days.

Answer :30 days

CAIIB 2020 Bank Financial Management Mock Tests Set 13

______ relates to post-sanction activities, dealing with proper documentation, disbursement, in a manner, to ensure the proper end use of funds, periodical inspection, follow-up of recovery, restructuring of loan if needed, etc.


Options are :

  • Monitoring.
  • Observing
  • Analysis
  • None of the above.

Answer :Monitoring.

Which of the following are some of the monitoring aspects related to retail loans?

I) Check that the sanction letter contains complete particulars, records all covenants fully and is signed by authorized bank officials.

II) Check if the letter has been signed off by the borrower/guarantor acknowledging/agreeing to the terms and conditions.

III) Check that all the documents are complete in all particulars, with no blanks left and that these have been signed by the bank representative and borrower/guarantors.

IV) Check that required registration of documents has been done.

V) Check that insurance policy is in place.


Options are :

  • Only II,III,V
  • Only III,IV,V
  • Only I,II,III
  • All of the above viz. I to V

Answer :All of the above viz. I to V

A home loan may have to be restructured in which of the following circumstances -

I) Unforeseen event/major illness/social functions requiring significant outlay of funds in the family of the borrower or any other circumstance that affect the repayment capacity.

II) In case of salaried class, borrowers who are on “loss of pay” due to lock out/strike/disciplinary action/ delay payment of salary by employer.

III) Delayed completion of housing project.

IV) Death/Disability of the borrower.


Options are :

  • Only II,IV
  • Only III,IV
  • Only I,II
  • All of the above viz. I to IV

Answer :All of the above viz. I to IV

CAIIB 2020 Bank Financial Management Mock Tests Set 14

Annual credit rating includes which of the following parameters -

I) Record of repayment during the past 12 months.

II) Documentation as per sanctioned terms.

III) Percentage of security coverage of the outstanding loan.

IV) Land value as percentage of total property value (guidance value).


Options are :

  • Only I,IV
  • Only III,IV
  • Only I,II,III
  • All of the above viz. I to IV

Answer :All of the above viz. I to IV

Which of the following precautions should be used in case of fabricated ITRs/Salary Slips/Balance Sheets Etc.?


Options are :

  • Verification of salary slips with employer.
  • Salary amount should be compared with Bank Statement.
  • Insist for IT assessment orders – cross verification.
  • All of the above

Answer :All of the above

What precautions must be used in case of Mis-representation of end use of loan or siphoning off funds?


Options are :

  • Payment can be made direct to the seller – in case of purchase
  • Payment can be made direct to the builder – in case of construction
  • Regular inspection plays an important role. For construction purpose, every subsequent stage of loan is to be released only after inspection and ensuring that the loan amount with stipulated margin has already been used for the purpose.
  • all of the above

Answer :all of the above

CAIIB 2020 Bank Financial Management Mock Tests Set 2

The process of converting future sums into their present equivalents is known as-


Options are :

  • Discounting
  • Compounding
  • Annuity.
  • None of the above.

Answer :Discounting

______ is used to determine the future value of present cash flows, whereas discounting is used to determine the present value of future cash flows.


Options are :

  • Discounting
  • Compounding
  • Annuity.
  • None of the above.

Answer :Compounding

The ______allows you to determine the number of years before your money doubles whether in debt or investment.


Options are :

  • Rule of 24
  • Rule of 48
  • Rule of 72
  • Rule of 128

Answer :Rule of 72

CAIIB 2020 Bank Financial Management Mock Tests Set 3

Suppose, you borrowed ?. 14,000 at 8% interest. How much time it would take for the debt to double to ?. 28,000, if you did not make any payment.


Options are :

  • 9
  • 10
  • 11
  • 12

Answer :9

______ is essentially series of fixed payments required from you or paid to you at a specified frequency over the course of a fixed period of time.


Options are :

  • Discounting
  • Compounding
  • Annuity.
  • None of the above.

Answer :Annuity.

In ________, Payments are made/received at the end of each period.


Options are :

  • Ordinary Annuity
  • Annuity Due
  • Pre- Annuity.
  • None of the above

Answer :Ordinary Annuity

CAIIB 2020 Bank Financial Management Mock Tests Set 4

In ________, Payments are made/received at the beginning of each period.


Options are :

  • Ordinary Annuity
  • Annuity Due
  • Pre- Annuity.
  • None of the above

Answer :Annuity Due

The Present Value Factor(PVF) for 4 years @11% per annum?


Options are :

  • 0.73
  • 0.66
  • 0.59
  • 0.53

Answer :0.66

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