Practice Test

Q1) NBFC means Show Answer

Q2) NBFC must have net own fund of Show Answer

Q3) Venture Capital Fund Companies are regulated by Show Answer

Q4) Nidhi Companies are regulated by Show Answer

Q5) Core Investment Companies, Infrastructure Debt Fund and Micro Finance Institution Show Answer

Q6) A systematically Important NBFC must Show Answer

Q7) Infrastructure Finance Company should have a Show Answer

Q8) NBFC-Non-Operative Financial Holding Company (NOFHC) is financial institution through which promoter/ promoter groups will be permitted to set up Show Answer

Q9) While calculating net own funds, amount of deposits with companies in the same group is deducted from own funds, to the extent such sum exceeds _____ of own funds. Show Answer

Q10) For the purpose of RBI Directors relating to Acceptance of Public Deposits, non-banking financial company means the non-banking institution which is a Show Answer

Q11) For sub-standard assets in the case of NBFC, a general provision of Show Answer

Q12) “Owned Fund” excludes Show Answer

Q13) Which agency regulates and supervises NBFCs? Show Answer

Q14) Which of the following statements is/are correct?
(1) NBFCs does not hold a banking license
(2) NBFC can issue Demand Drafts like banks
Show Answer

Q15) Consider the following statements.
(1) Chit Funds are type of NBFC
(2) All NBFCs are regulated by RBI
Which of the above statements is/are correct?
Show Answer

Q16) What is the minimum net owned funds (NOF) mandatory for a Infrastructure Finance Company (IFC) in India? Show Answer

Q17) What is the main business of Systematically Important Core Investment Company (CIC-ND-SI) in India? Show Answer

Q18) What is the cap on loan amount given out by a Non-Banking Financial Company – Micro Finance Institution (NBFC – MFI)? Show Answer

Q19) A Non-Banking Financial Company (NBFC) is a company registered under the Show Answer

Q20) For a company to register as a NBFC it should have a minimum net owned fund of Show Answer

Q21) Any NBFC is considered systematically important NBFC when its asset size is of Rs. _____ or more. Show Answer

Q22) Which of the following is true about NBFC?
(1) NBFC cannot accept demand deposits
(2) NBFC’s cannot issue cheques drawn on itself
(3) Deposit insurance facility of DICGC is not available to depositors of NBFCs
Show Answer

Q23) NBFCs are required to accept public deposit for a minimum period of _____ months? Show Answer

Q24) NBFCs are required to accept public deposit for a maximum period of _____ months? Show Answer

Q25) What is the present ceiling limit of interest rate that NBFCs can offer? Show Answer

Q26) Identify the false statement. Show Answer

Q27) For working as a NBFC a company must get itself registered with Show Answer

Q28) Chit Fund Companies are regulated under the Chit Fund Act, Show Answer

Q29) NBFC is registered under : Show Answer

Q30) NBFC have to follow RBI guidelines relating to Show Answer

Q31) The companies exempted from registration with RBI are Show Answer

Q32) Non-Banking Finance Company is defined by Show Answer

Q33) NBFC must have net owned fund of Show Answer

Q34) NBFC must have minimum one direction from Show Answer

Q35) Prescribed from for registration of NBFC is to be obtained from Show Answer

Q36) Application for registration in hard copy is submitted to Show Answer

Q37) NBFC must commerce its business after registration within Show Answer

Q38) NBFC based on assets are classified as : Show Answer

Q39) Infrastructure finance company has to deploy for infrastructure loans Show Answer

Q40) Infrastructure finance company must have minimum NOF of Show Answer

Q41) NBFC factor must minimum NOF of Show Answer

Q42) Infrastructure Debt fund – NBFC must have NOF of Show Answer

Q43) Income from NPA asset is recognized on Show Answer

Q44) Dividend income on shares is recognized on Show Answer

Q45) Interest on Debentures is recognized on Show Answer

Q46) Current Investment is Show Answer

Q47) Quoted current investment includes Show Answer

Q48) Long term investment are valued as per Show Answer

Q49) Interest becomes NPA when Show Answer

Q50) Bills discounted becomes NPA when Show Answer

Q51) The asset which does not show any credit weakness is a Show Answer

Q52) The asset which is NPA for a period not exceeding 18 months is Show Answer

Q53) The asset which remains sub-standard for a period exceeding 18 months is a Show Answer

Q54) In the case of Standard asset provisioning required is Show Answer

Q55) In case of Standard asset the provisioning requirement is Show Answer

Q56) In the case of Doubtful assets more than 3 years the provisioning requirement is Show Answer

Q57) In the case of loss asset, provisioning requirement is Show Answer

Q58) Intangible assets are Show Answer

Q59) Equity Capital is included in Show Answer

Q60) Non-convertible preference share capital is included in Show Answer

Q61) Free reserve are included in Show Answer

Q62) Tier II capital should Show Answer

Q63) CRAR ratio should be minimum Show Answer

Q64) Housing Finance Companies _____ exempt from Registration with RBI as NBFC. Show Answer

Q65) Merchant Banking Companies are required to be registered with _____. Show Answer

Q66) NBFC-D is systematically _____ if its assets size is less than Rs.500 crore. Show Answer

Q67) While calculating own funds, _____ of Intangible Assets is ______ paid –up equity capital. Show Answer

Q68) While calculating net own funds, Investments in shares of subsidiaries is _____ own funds. Show Answer

Q69) While calculating net own funds, loans to companies in the same group is _____ own funds. Show Answer

Q70) While calculating net own funds, deposits with companies in the same group is deducted from own funds, to the extent such sum exceeds _____ of own funds. Show Answer

Q71) The minimum level of liquid asset to be maintained by NBFCs is _____ percent of public deposits outstanding as on the last working day of the _____ preceding quarter. Show Answer

Q72) Doubtful asset, in case of NBFC-SI means an asset which has remained as _____ for a period not exceeding _____ months. Show Answer

Q73) Doubtful asset, in case of NBFC-NSI-ND means an asset which has remained as _____ for a period not exceeding _____ months. Show Answer

Q74) For provision on Lease Assets, Net Book Value means Overdue Instalment _____ Instalment not yet due. Show Answer

Q75) For provision on Lease Assets, Net Book Value means Overdue Instalment _____ Finance charges due but not yet collected. Show Answer

Q76) Depreciated Value of Leased Assets = Original Cost – Depreciation Charge @ _____ p.a. on _____ computed notionally. Show Answer

Q77) _____ investments shall be valued at cost or market value whichever is lower. Show Answer

Q78) _____ equity shares shall be valued at Cost or Break up value, whichever is lower. Show Answer

Q79) _____ _____ equity shares shall be valued at lower of Cost or Face value. Show Answer

Q80) Every NBFC shall separately disclose in its balance sheet the provisions made as per requirements _____ netting them from the income or against the value of assets. Show Answer

Q81) NBFCs cannot accept demand deposits. Show Answer

Q82) NBFCs can issue cheques drawn on itself. Show Answer

Q83) Mortgage Guarantee Companies have been notified as Non-Banking Financial Companies. Show Answer

Q84) NBFC cannot carry on any agricultural activity. Show Answer

Q85) NBFC cannot carry any purchase or sale of goods. Show Answer

Q86) NBFC cannot carry any purchase or sale of securities. Show Answer

Q87) Sub-broking companies must be registered with RBI. Show Answer

Q88) Core Investment Companies are always Non Deposit Taking Companies. Show Answer

Q89) Infrastructure Debt Fund NBFCs are never Deposit Taking Companies. Show Answer

Q90) Micro Finance Institutions are NBFC-ND. Show Answer

Q91) Only Deposit Taking NBFC can be systematically important. Show Answer

Q92) While calculating own funds, compulsorily convertible preference shares are ignored. Show Answer

Q93) While calculating own funds, Revaluation Reserves are added to paid up equity capital. Show Answer

Q94) Income on NPA shall be recognised only when it is actually realised. Show Answer

Q95) Income from debentures of corporate bodies shall be taken into account on cash basis. Show Answer

Q96) NBFC is basically a Banking Company Show Answer

Q97) NBFC is registered under Companies Act Show Answer

Q98) NBFC is registered under RBI Act. Show Answer

Q99) Venture Capital Fund is exempted from registration with RBI Show Answer

Q100) Merchant banking company must register with RBI Show Answer

Q101) NBFC must have NOF of Rs. 200 lakhs. Show Answer

Q102) A NBFC must have minimum one director of finance background Show Answer

Q103) Application for registration of NBFC is to be submitted to SEBI Show Answer

Q104) Application for registration of NBFC is to be submitted to RBI. Show Answer

Q105) NBFC must commence its business within 6 months of registration Show Answer

Q106) Infrastructure finance company has to deploy 50% of its total assets for infrastructure loans Show Answer

Q107) Infrastructure finance company must have minimum NOF of Rs. 300 lakhs Show Answer

Q108) NBFC factor must have minimum NOF of Rs. 500 lakhs Show Answer

Q109) Income from NPA asset is recognised on cash basis Show Answer

Q110) Income from NPA asset is recognised on accrual basis Show Answer

Q111) Interest on Debentures is recognised on cash basis. Show Answer

Q112) Dividend on share is recognised on cash basis Show Answer

Q113) Current investment is held for less than 12 months Show Answer

Q114) Interest become NPA when it remains for 6 months Show Answer

Q115) Bills discounted becomes NPA when it remains overdue for 9 months Show Answer

Q116) Standard Asset shows creditweakness Show Answer

Q117) Doubtful asset does not show any creditweaknees Show Answer

Q118) In the case of standard asset provision is required at 40 % Show Answer

Q119) Provision required for loss asset is 10% Show Answer

Q120) Provision required for sub-standard asset is 10% Show Answer

Q121) Equity capital is included in Tier I Capital Show Answer

Q122) Preference share capital is included in Tier II capital. Show Answer

Q123) Free reserve is included in Tier I capital Show Answer

Q124) Capital reserve is included in Tier I Capital Show Answer

Q125) CRAR ratio should be at least 15% Show Answer

Q126) Tier II capital should never exceed Tier I Capital Show Answer