Question : Which of the following is not a type of non-performing asset (NPA)?
Option 1: Substandard assets
Option 2: Standard assets
Option 3: Doubtful assets
Option 4: Loss assets
Correct Answer: Standard assets
Solution : The correct answer is (b). Standard assets
Non-performing assets (NPAs) are loans or advances that have stopped generating income for the lender, typically due to the borrower's default or inability to make timely payments. NPAs are categorized based on their level of impairment.
Standard assets are loans or advances that are not classified as NPAs. These assets are performing well and the borrower is making timely payments of principal and interest. They do not exhibit signs of financial distress or default.
Option 1: Substandard asset
Option 2: Doubtful asset
Option 3: Good asset
Option 4: Loss asset
Option 2: Doubtful assets
Option 3: Bad assets
Option 4: Perfect assets
Question : What is the full form of NPA?
Option 1: Non-Performing Assets
Option 2: Non-Productive Assets
Option 3: Non-Profitable Assets
Option 4: None of the above
Question : Which of the following is a feature of a non-performing asset (NPA)?
Option 1: High credit rating
Option 2: Low risk
Option 3: Interest income is not received for a certain period of time
Option 1: Non-Performing Asset
Option 2: National Payment Association
Option 3: National Pension Account
Option 4: Non-Payment Authority
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile