MULTIPLE CHOICE QUESTIONS ON PRIORITY SECTOR ADVANCES

1. Retail traders under Priority Sector can avail limits upto Rs

a) Rs 2 lakhs b) Rs 5 lakhs c) Rs10 lakhs d) Rs.20 lakhs
2. Oriinal cost o! e"uipment should not e#ceed Rs $$$$ under %icro &Service
'nterprises).
a) Rs 5 lakhs b) Rs10 lakhs c) Rs 20 lakhs d) Rs 50 lakhs
(. )he priority sector tarets are applicable to
a) *ll domestic commercial +anks b) *ll Public Sector +anks
c) *ll Scheduled commercial banks d) S+, and *ssociate +anks
-. .ousin /oans iven by the +ank to it0s o1n sta!! are treated as
a) Priority Sector *dvances b) 2on3priority sector advances
c) 4pto Rs.20 lacs treated as Priority Sector *dvances
d) 4pto Rs.10 lacs are treated as Priority Sector *dvances
5. %icro 5redit under Priority Sector covers loans to each borro1er not e#ceedin
a) Rs.25600073 b) Rs.15600073 c) Rs.50600073
d) Rs.8650073
8. One o! the !ollo1in roup o! borro1ers shall not !all under 9eaker Sections o!
Priority Sector:3
a) Small and %arinal ;armers b) +ene!iciaries under P%R<
c) +ene!iciaries under =R, Scheme d) +ene!iciaries under S>S< Scheme
?. 'ducational loans !or studies abroad shall be treated as Priority Sector /endin6
upto a limit o! :3
a) Rs.- lakhs b) Rs.10 lakhs c) Rs.20 lakhs d) Rs.15 lakhs
@. .ousin /oans in rural areas6 upto a limit o! are treated as lendins under
Priority Sector:3
a) Rs.20 lakhs b) Rs. 1 lakh c) Rs.2 lakhs d) Rs.10 lakhs
SBI SBLC HYD / Key to Success 63
A. )he taret !or ;orein banks under Priority Sector is..B o! *2+5 or o!!3
balance sheet e#posures 1hich ever is hiher:3
a) 1@B b) -0B c) (2B d) 10B
10. )he taret !or domestic commercial banks6 !or %icro 'nterprises advances is ..
B o! total advances to Small 'nterprises *dvances.
a) -0B b) (2B c) 22B d) 80B
11. )he taret !or domestic commercial banks6 !or e#port credit is.B o! *2+5 or
O!!3+alance Sheet '#posures 1hichever is hiher:3
a) 12B b) 10B c) 2o )aret d) 1@B
12. )he taret !or ;orein +anks under 9eaker Sections o! Priority Sector is B
o! *2+5 or O!!3+alance Sheet '#posures 1hichever is hiher:3
a) 2o )aret b) 12B c) 1@B d) 10B
1(. 9hile arrivin at *dCusted 2et +ank 5redit &*2+5) the !ollo1in is not included:3
a) ;resh investments in non3S/R bonds under .)% cateory
b) Outstandin ;52R&+) and 2R2R deposit balances
c) =eposits under R,=; 7 S'=;
d) 2one o! these
1-. One o! these is not a direct lendin under Priority Sector *dvances:3
a) /oans to Small and %arinal ;armers !or purchase o! land
b) *riculture Produce /oans upto Rs.10lacs per borro1er
c) /oans to distressed !armers indebted to non3institutional lenders
d) ;inance !or settin up *ri35linics and *ri3business units
15. One o! these is not an indirect lendin to ariculture under Priority Sector
*dvances:3
a) 50B o! loans outstandin under >eneral 5redit 5ards
b) =eposits placed under R,=; and S'=;
c) /oans to !armers throuh P*5S
d) /oans !or sprayin6 1eedin6 radin under taken by individuals
SBI SBLC HYD / Key to Success 64
18. ;inance to Small &Service) 'nterprises 1ill be treated as advances under Priority
sector6 i! the investment in e"uipment &oriinal cost e#cludin land and buildin
and !urniture6 !ittins and other items) is upto:3
a) Rs.10 lacs b) Rs.25 lacs c) Rs.2 crores d) Rs.20 lacs
1?. )he small and %icro &Service) enterprises shall not include the !ollo1in type o!
customers:3
a) Small road D 1ater transport operators
b) Retails )raders
c) Small +usiness 'nterprises
d) Pro!essional D Sel! employed Persons
1@. ,! the domestic banks do not achieve tarets under priority sector6 they have to
make contributions to:3
a) R,=; b) S'=; c) both R,=; and S'=; d) 2one o! these
1A. ,! the !orein banks do not achieved tarets under priority sector6 they have to
make contributions to:3
a) R,=; b) S'=; c) both R,=; and S'=; d) 2one o! these
20. S'=; means
a) Secondary 'ducation =evelopment ;und
b) Sel! 'mployment =evelopment ;und
c) Small 'ntrepreneurs =evelopment ;und
d) Small 'nterprises =evelopment ;und
ANSWERS TO MULTIPLE CHOICE QUESTIONS ON PRIORITY SECTOR
ADVANCES
Q. A Q. A Q. A Q. A Q. A Q. A Q. A Q. A Q. A Q. A
1 = 2 + ( 5 - + 5 5 8 + ? 5 @ * A 5 10 =
11 5 12 * 1( 5 1- = 15 = 18 5 1? + 1@ * 1A + 20 =
SBI SBLC HYD / Key to Success 65
MULTIPLE CHOICE QUESTIONS ON MSMED ACT
1. 9hat is ma#imum limit or oriinal cost o! plan and machinery6 upto 1hich a
manu!acturin enterprise 1ill be treated as a Small &%anu!acturin) 'nterpriseE
a) Rs.25 lacs b) Rs.10lacs c) Rs.2 crores d) Rs. 5 crores
2. *n unit 1ill be treated as a %edium &Service) 'nterprise6 i! the oriinal cost o!
e"uipment is upto Rs.5 crores in
a) Rural areas b) Semi3urban *reas c) 4rban D %etro areas
d) *ny population area
(. ;ilin o! memorandum is mandatory !or the !ollo1in types o! enterprises:3
a) %icro and Small &manu!acturin) enterprises
b) %edium &m!) enterprises
c) %edium 'nterprises &both m!. and service)
d) 2one o! the above
-. 9ithin a ma#imum o! ho1 many days6 the buyers have to make the payments !or
the oods and services received by them !rom %icro6 Small 'nterprisesE
a) 15 days b) (0 days c) 1 month d) 2 1eeks
5. 9hat is the penalty rate o! interest !or the delayed payments made to the %icro
and Small 'nterprisesE
a) *s per +ank Rate b) t1ice the +ank Rate
c) three times the +ank Rate d) *s per the contracted Rate
8. 9hat is the de!inition as per our +ank norms !or Small 'nterpriseE
a) *nnual )urnover upto Rs.25 crores
b) ,nvestment in e"uipment Rs.5 crores
c) *nnual )urnover upto Rs.5 crores
d) ,nvestment in e"uipment Rs. 2 crores
?. 9hat is the de!inition as per our +ank norms !or %edium 'nterpriseE
a) *nnual )urnover !rom Rs.5 crores upto Rs.25 crores
b) ,nvestment in e"uipment Rs.5 crores
c) *nnual )urnover !rom Rs. 5 crores upto Rs.50 crores
d) ,nvestment in e"uipment Rs. 2 crores
SBI SBLC HYD / Key to Success 66
@. ;or identi!yin a manu!acturin unit as a %icro6 small or medium enterprises6
!ollo1in is the criterion.
a) *nnual )urnover
b) Oriinal cost o! investment in Plant and machinery
c) Oriinal cost o! investment in '"uipment
d) )otal proCect cost
A. ;or identi!yin a servicin unit as a %icro6 small or medium enterprises6 !ollo1in is
the criterion.
a) *nnual )urnover
b) Oriinal cost o! investment in Plant and machinery
c) Oriinal cost o! investment in '"uipment
d) )otal proCect cost
10. *s per ,ncome )a# rules6 the amount o! overdue interest paid by any company to
micro or small enterprise is treated as
a) business income b) business e#penditure
c) non3business e#penditure d) non3deductible e#penditure
ANSWERS:
Q. A Q. A Q. A Q. A Q. A Q. A Q. A Q. A Q. A Q. A
1 = 2 = ( + - * 5 5 8 5 ? 5 @ + A 5 10 =
SBI SBLC HYD / Key to Success 67