McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce (B Com) .
Chapters
| 1. |
The banker has a statutory obligation to......... |
| A. | Honour customers' cheque |
| B. | Exercise lien |
| C. | Maintain secrecy of his customers' accounts |
| D. | Honour customers' bill |
| Answer» A. Honour customers' cheque | |
| 2. |
The banker has a lien on........ |
| A. | Bonds given for collection |
| B. | Bonds given for safe custody |
| C. | Bonds left by mistake |
| D. | (a) and (b) together |
| Answer» A. Bonds given for collection | |
| 3. |
Neither possession nor ownership is transferred in.... |
| A. | Pledge |
| B. | mortgage |
| C. | Hypothecation |
| D. | none |
| Answer» C. Hypothecation | |
| 4. |
A mortgage can neither sue for foreclosure nor for sale of the property in............... |
| A. | English mortgage |
| B. | Usufructuary mortgage |
| C. | Mortgage by conditional sale |
| D. | none |
| Answer» B. Usufructuary mortgage | |
| 5. |
A banker's lien is........... |
| A. | general lien |
| B. | particular lien |
| C. | Negative lien |
| D. | none |
| Answer» A. general lien | |
| 6. |
A pledge can be made in respect of.... |
| A. | Shares |
| B. | Building |
| C. | Book debts |
| D. | none |
| Answer» A. Shares | |
| 7. |
A bank finances an agriculturist to buy a tractor. The loan is secured by: |
| A. | Hypothecation of the tractor |
| B. | Mortgage of the tractor |
| C. | Pledge of the tractor |
| D. | Assignment of the tractor |
| Answer» A. Hypothecation of the tractor | |
| 8. |
Bank A grants an overdraft to ABC Ltd against book debts. This is secured by: |
| A. | hypothecation |
| B. | pledge |
| C. | mortgage |
| D. | assignment |
| Answer» D. assignment | |
| 9. |
Mortgage is defined under |
| A. | contract act |
| B. | sale of goods act |
| C. | transfer of property act |
| D. | none of the above |
| Answer» C. transfer of property act | |
| 10. |
The mortgager transfers the mortgaged property to the mortgagee on the condition that it will be retransferred upon payment of mortgaged money. This is |
| A. | Simple mortgage |
| B. | English mortgage |
| C. | Equitable mortgage |
| D. | mortgage by conditional sale |
| Answer» B. English mortgage | |
| 11. |
In the case of a joint stock co the registration of a charge is not required with registrar of companies for |
| A. | Pledge of moveable property |
| B. | hypothecation of moveable property |
| C. | assignment of book debts |
| D. | mortgage of fixed assets |
| Answer» A. Pledge of moveable property | |
| 12. |
RAM a transporter has been granted a loan for purchase of a truck. You will create which of the following charge. |
| A. | Assignment |
| B. | a mortgage |
| C. | pledge |
| D. | hypothecation |
| Answer» D. hypothecation | |
| 13. |
Hypothecation is a mode of security provided in |
| A. | Indian contract act 1872 |
| B. | transfer of property act 1882 |
| C. | banking regulation act 1949 |
| D. | SARFAESI Act 2002 |
| Answer» D. SARFAESI Act 2002 | |
| 14. |
Under Hypothecation charge |
| A. | The ownership and possession of goods are with Bank |
| B. | The ownership is with borrower but possession is with Bank |
| C. | The ownership and possession are with borrower |
| D. | The ownership is with Bank but possession with borrower |
| Answer» C. The ownership and possession are with borrower | |
| 15. |
Stamp duty on which of the following documents does not vary from state to state. |
| A. | Mortgage of agreements |
| B. | hypothecation agreements |
| C. | guarantees |
| D. | bills of exchange |
| Answer» D. bills of exchange | |
| 16. |
Mortgage borrowers must pay 20 percent of the home’s purchase price at closing as a down payment. |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» B. False | |
| 17. |
As a fixed-rate mortgage nears maturity, the portion of the monthly mortgage payment that is applied to principal _________ while the amount that is applied to interest ___________. |
| A. | Decreases; increases |
| B. | Increases; decreases |
| C. | Does not change; decreases |
| D. | Increases; does not change |
| Answer» B. Increases; decreases | |
| 18. |
. _________ paid at closing can reduce the interest rate used to determine the monthly payments on a mortgage. |
| A. | Discount points |
| B. | Down payments |
| C. | Loan origination fees |
| D. | Amortization rates |
| Answer» A. Discount points | |
| 19. |
What type of mortgages are used to finance the acquisition of apartment complexes, townhouses, and condominiums? |
| A. | Commercial mortgages |
| B. | Single family mortgages |
| C. | Farm mortgages |
| D. | Multifamily dwelling mortgages |
| Answer» D. Multifamily dwelling mortgages | |
| 20. |
As part of a mortgage agreement, a financial institution places a lien on the property until the loan is paid in full. |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» A. True | |
| 21. |
Benefits of securitization include all of the following EXCEPT: |
| A. | Reduced credit risk |
| B. | Generation of income |
| C. | Greater reserve requirements |
| D. | Increased liquidity |
| Answer» C. Greater reserve requirements | |
| 22. |
FHA mortgages and VA mortgages are conventional mortgages. |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» B. False | |
| 23. |
When a financial institution sells a mortgage with recourse, the financial institution retains a credit risk liability in the event the buyer returns the mortgage. |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» A. True | |
| 24. |
Where a person pledges goods in which he has only a limited interest, the pledge is: |
| A. | Invalid to the extent of that interest |
| B. | Entire contract is invalid |
| C. | Valid to the extent of that interest |
| D. | Entire contract is valid |
| Answer» C. Valid to the extent of that interest | |
| 25. |
What is pledge: |
| A. | The bailment of goods as security for payment of a debt or performance of a promise |
| B. | The delivery of goods by one person to another for some purpose, upon a contract that they shall, when the purpose is accomplished, be returned or otherwise disposed of according to the direction of the person delivering them |
| C. | A contract by which one party promises to save the other from loss caused to him by the contract of the promisor himself, or by the conduct of any other person |
| D. | A contract to do or not to do something, if some event, collateral to such contract, does or does not happen |
| Answer» A. The bailment of goods as security for payment of a debt or performance of a promise | |
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