Principle of Lending MCQs Principal of Lending Principal of Lending (Powered by Know With Hits) Time Left: 05:00 1. Which of the following is a key principle of lending? a) Liquidity b) Profitability c) Diversification d) All of the above 2. Why is the principle of “Safety” important in lending? a) To ensure the borrower can repay the loan b) To maximize profits c) To increase loan approvals d) To reduce operational costs 3. What does the principle of “Liquidity” in lending refer to? a) The ability of the lender to sell loans easily b) Ensuring that funds lent can be recovered quickly if needed c) The liquidity of the borrower d) The process of granting loans 4. How does “Diversification” help in lending? a) By concentrating loans in one sector b) By reducing risk through lending to multiple sectors c) By lending only to one type of borrower d) By increasing interest rates 5. What is the main objective of the principle of “Profitability” in lending? a) To ensure that loans generate income for the lender b) To increase the number of borrowers c) To offer loans at the lowest interest rates d) To focus only on high-risk borrowers Submit Answers Your Results: For more mock tests (paid), kindly reach us at contact@bankkumar.com
