Question 1
A commercial borrower presents annual Net Operating Income (NOI) of £500,000. Its total annual debt service requirements (principal repayments plus interest) equal £250,000. What is the borrower's Debt Service Coverage Ratio (DSCR)?
Correct Answer:
2.00x
Question 2
A company has Current Assets of £600,000, of which Inventory accounts for £200,000. Its Current Liabilities stand at £300,000. What are the company's Current Ratio and Quick Ratio (Acid-Test Ratio) respectively?
Correct Answer:
Current Ratio = 2.00x; Quick Ratio = 1.33x
Question 3
A corporate trading customer reports Operating Profit (EBIT) of £1,200,000 and total annual bank interest expense of £300,000. What is the Interest Coverage Ratio?
Correct Answer:
4.00x
Question 4
A business balance sheet shows Total Senior & Junior Debt of £4,000,000 and Total Shareholders' Equity of £2,000,000. What is the Debt-to-Equity Ratio?
Correct Answer:
200% (2.00x)
Question 5
A manufacturing firm reports Current Assets of £850,000 and Current Liabilities of £500,000. What is the firm's Net Working Capital?
Correct Answer:
£350,000
Question 1
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About this Exam

Prepare with the Professional Banker Diploma - Credit & Lending Practice Questions - Professional Banker Diploma - Credit & Lending (Chartered Banker Institute) Exam practice quiz. This question bank includes 100 questions covering credit, borrower, company, days, and debt. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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Professional Banker Diploma - Credit & Lending Practice Questions - Professional Banker Diploma - Credit & Lending (Chartered Banker Institute) Exam

This practice set contains 100 questions from the matching question bank and focuses on credit, borrower, company, days, and debt. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

This is an independent study resource intended for practice and review; it is not an official examination or an endorsement by any organization named in the title.

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