PPB Mock Test-07

Case Laws on Responsibility of Collecting Bank (Unit – 7 : Mod -B)

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Welcome to your PPB Mock Test-07

1. A person purchased a lap top for Rs.30000 by raising a loan from the bank at 12% on simple rate of interest, payable in 2 years as weekly payment. The total amount of interest would be Rs.______ and the weekly instalment would be Rs.______.
2. When the balance as per the cash book is staring point, in the reconciliation, the amount of cheques issued and not presented are:
3. Which among the following is not correct in the context of annuity:
4. A person wants to have Rs.2 lac annually for 20 years by investing the amount in an annuity interest rate of 5%. He will have to invest:
5. A sinking fund can be created for using it for (a) pay a loan in lump sum (b) to redeem a bond (c) to buy new machinery (d) to replace a worn out equipment:
6. When the required rate of return is (less than / more than ) the coupon rate, the discount on the bond _______ as maturity approaches:
7. To make provision on bad debts, which of the following journal entry is correct:
8. When the future cash flow from a project is discounted, the project can be accepted if:
9. Internal rate of return (IRR) is the ________ rate at which the net present value of the cash flows from a project is _______.
10. The estimated value of an asset at which it can be dispose of after a given no. of years of useful life is called:

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