CAIIB BFM Sample Questions by Murugan for Dec 2015

March 21, 2018 | Author: Varun Shastry | Category: Debits And Credits, Banks, Investing, Business Economics, Banking
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www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.com - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected], [email protected], 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Facebook Groups oc k te st .c o ALL THE VERY BEST FOR YOUR EXAMS w w w .ja iib ca iib m SAMPLE QUESTIONS FOR CAIIB BANK FINANCIAL MANAGEMENT This collection of questions is contributed by so many persons. First of all we thank all of them for their valuable contribution. Though we had taken enough care to go through the questions, we request everyone to update yourself with the latest information through RBI website and other authenticated sources. In case you find any incorrect/doubtful information, kindly update us also (along with the source link/reference for the correct information). ………………………………………………………………………………………………………………………………………………………………… www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.com [email protected], [email protected], 09994452442 1 www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected], [email protected], 09994452442 ………………………………………………………………………………………………………………………………………………………………… st .c o m Bank Financial Management You had negotiated an export bill of your customer in May, 2015. This bill has been returned by the overseas buyer for some reasons and the AD has to debit his customer's account with Indian rupees. The rate to be applied will be ...... (i) Bills buying, (ii) Bills selling, (iii) TT selling oc k te a. Only (i) and (ii) b. Only (i) and (iii) c. Only (ii) and (iii) d. (i), (ii) and (iii) Ans - a ............................................. ca a. Only (i) and (ii) b. Only (i) and (iii) c. Only (ii) and (iii) d. (i), (ii) and (iii) iib m As per Basel III the investment of a bank in the capital of a banking or financial or insurance entity is restricted to which of the following: (i) 10% of capital funds (after deductions) of the investing bank, (ii) 5% of the investee bank's equity capital, (iii) 30% of paid up capital and reserves of the bank or 30% of paid up capital of the company, whichever is lower iib Ans - d ............................................. .ja Risk of having to compensate for non-receipt of expected cash flows by a bank is called ...... (i) Time risk, (ii) Credit risk w w w a. Only (i) b. Only (ii) c. Either (i) or (ii) d. Both (i) and (ii) Ans - a ............................................. 'Time risk' in the context of liquidity risk of an institution is not caused due to ...... (i) Systematic risk, (ii) Swaps and options, (iii) Temporary problems in recovery a. Only (i) and (ii) ………………………………………………………………………………………………………………………………………………………………… www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.com [email protected], [email protected], 09994452442 2 www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected], [email protected], 09994452442 ………………………………………………………………………………………………………………………………………………………………… st .c o m b. Only (i) and (iii) c. Only (ii) and (iii) d. (i), (ii) and (iii) Ans - a ............................................. Crystallisation of contingent liabilities in a bank is called ...... (i) Call risk, (ii) Credit risk oc k te a. Only (i) b. Only (ii) c. Either (i) or (ii) d. Both (i) and (ii) Ans - a ............................................. m RBI has put in place real time gross settlement system (RTGS) not to mitigate the ...... risk. (i) Market risk (ii) Operational risk, (iii) Strategic risk ca iib a. Only (i) and (ii) b. Only (i) and (iii) c. Only (ii) and (iii) d. (i), (ii) and (iii) iib Ans - d ............................................. .ja A bank has deposits worth 5,00,000 Crores. The interest rate on this is 10%. SRR to be maintained by the bank is 8%. What will be the effective cost to deposit? w w w a. 10.67% b. 10.87% c. 11.37% d. 11.67% Ans - b Explanation : From 500000 8 % should be made for SLR requirements So available fund for making loans(asset) = 500000 - 8% of 500000 ………………………………………………………………………………………………………………………………………………………………… www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.com [email protected], [email protected], 09994452442 3 www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected], [email protected], 09994452442 ………………………………………………………………………………………………………………………………………………………………… m = 500000 - 40000 = 460000 st .c o For this fund 460000 Bank is paying 10 % on 500000 Cost of fund is 50000 So in order to avoid any loss, Bank has to lend money at that interest rate which will cover this cost of funding, that is 50000 oc k te 50000 = 460000 × r /100 50000/460000 = r / 100 0.1087 = r / 100 r = 10.87 % ............................................. m On which of the following TT buying rate will be applied? (i) purchase of foreign DD drawn abroad, (ii) Payment of DO drawn on the paying bank, (iii) Conversion of proceeds of instruments sent for collection ca iib a. Only (i) and (ii) b. Only (i) and (iii) c. Only (ii) and (iii) d. (i), (ii) and (iii) Ans - c ............................................. iib On which of the following TT Selling rate will not be applied? (i) crystallization of overdue export bills, (ii) crystallization of overdue import bills, (iii) cancellation of outward TT/MT w w w .ja a. Only (i) and (ii) b. Only (i) and (iii) c. Only (ii) and (iii) d. (i), (ii) and (iii) Ans - c ............................................. A bank has computed its Tier I capital - Rs. 1000 Crores. Tier-II Capital - Rs 1200 Crores. RWAs for Credit Risk - Rs 15,000 Crores. Capital charge for market risk - Rs 600 Crores. Capital charge for operational risk - Rs 400 Crores. ………………………………………………………………………………………………………………………………………………………………… www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.com [email protected], [email protected], 09994452442 4 www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected], [email protected], 09994452442 ………………………………………………………………………………………………………………………………………………………………… m What would be the bank's total RWAs? st .c o a. 18,889 Crores b. 21,161 Crores c. 26,111 Crores d. 26,141 Crores oc k Solution : RWAs for Credit Risk = Rs 15,000 Crores RWAs for Market Risk = Rs 600/.09 = Rs 6,667 Crores RWAs for Operational Risk = Rs 400/.09 = Rs 4,444 Crores Total RWAs = 15000+6667+4444 = Rs 26,111 Crores te Ans - c iib m Tier I Capital = Rs 1,000 Crores Tier II Capital = Rs 1,200 Crores Total Capital = Rs 2,000 Crores Maximum tier II capital that can be taken into account for the purpose of CRAR is 100% of tier I capital. Tier-I CRAR = (Eligible Tier I ca capital funds) / (Total RWAs) = 1000/26111 = 3.83%. Total CRAR = (Eligible total capital funds) / (Total RWAs) = 2000/26111 = 7.66% .............................................. iib A claim of Rs. 49 lacs has been settled by ECGC in favour of a bank against default of Rs. 70 lacs. Subsequently the bank realizes Rs. 15 lacs with the collaterals available to the loan. What will be actual amount settled by ECGC after realization of security by the bank? w .ja a. Rs. 49 lacs b. Rs. 42.5 lacs c. Rs. 38.5 lacs d. Rs. 34 lacs w w Ans - c Explanation : ECGC had settled Rs. 49 lacs on default of 70 Lacs (That is 70% of the default amount). But Subsequent to that settlement, Rs. 15 lacs was realised through the security held. So, the claim amount from ECGC should be, 55 Lacs only from ECGC. And the ECGC had settled only 70 % of the claim amount. So, the settlement amount will be, 70% of Rs. 55 lacs = 5500000 x 70/100 = 38.5 lacs ………………………………………………………………………………………………………………………………………………………………… www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.com [email protected], [email protected], 09994452442 5 com...6000 Less Forward Discount of 3M (....20 days and 2 M Forward... 31...20 days.....com murugan0501@gmail................. 31...com.... 30 b....1971 c.......com..... 38. 34..6000-. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m So. 90 d..6000/6500 Forward 1M=3500/3000 2M=5500/3000 3M=8500/8000 Transit Period .. 35..6976 st .. . Rs... Ans – d iib m Explanation : Bcz. Find 2 M Forward Buying Rate...5 lacs . Spot Rate = 35............c o Spot Rate ..jaiibcaiibmocktest.8500-.6979 Ans.. www.....com.com. it is having Transit Period ...35... 60 c........ www....7500) = 34. admin@jaiibcaiibmocktest.... 20 days + 2M. 180000/d... 34. days. www..c ....... Exchange Margin .onlyforbankers.......... ………………………………………………………………………………………………………………………………………………………………… www.bankpromotionexams. iib a..com. w w w Asset in doubtful-I category – Rs...1971 b........... actual amount settled by ECGC = Rs. 500000/Realization value of security – Rs...15%.onlyforbankers.c . oc k te a.bankpromotionexams...15% of 34.... 09994452442 6 ..0521) i.ja Ans . admin@jaiibcaiibmocktest....... Rs....jaiibcaiibmocktest.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail. 500000/b.. Rs.www..... 180 ca Concessional rate of interest in post shipment finance is valid for first ............6976 d............0...... Rs......... 3 Month Forward Buying Rate will be applied. ..com....8500) Less Exchange Margin (...... 400000/What will be the provision requirement? a....com... 400000/c.......0521(0.... www.. 200000/Ans .e...... ...com. land development banks 3...... 2..bank market constitute benchmark rates because . www..... 2 and 3 c.... admin@jaiibcaiibmocktest. it carries a little risk (counterparty risk).. 3 and 4 d......com..... Authorized dealer Ans ..... www.b ………………………………………………………………………………………………………………………………………………………………… www.... banks (including co-operative banks) 2.... complementary d.. 2......... b...... iib m a. 09994452442 ………………………………………………………………………………………………………………………………………………………………… a...com.......com. it does not carry any risk at all. none of these Ans ..jaiibcaiibmocktest.....com.onlyforbankers... a. www..... 4 and 5 oc k 1. www. 1.jaiibcaiibmocktest..ja a. supplementary c. primary dealers 4. Tier 2 is also known as .onlyforbankers.. financial institutions 5..d . 3 and 4 b........com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected]... Central Banks b.com.... c..b .. 1....... Investment Funds/Banks d..... mutual funds players te Which of the following cannot participate in the call money market? st .. ca Ans ........ it is floating d.... admin@jaiibcaiibmocktest.. core b....c o m Which one is not a Foreign Exchange markets participant ? iib Interest rates prevailing in the inter .d ... Commercial Banks c.........bankpromotionexams. 09994452442 7 ...com murugan0501@gmail. none of these w w w Ans ........ capital...bankpromotionexams.www...com.. ... ... ………………………………………………………………………………………………………………………………………………………………… www..onlyforbankers.....bankpromotionexams.....e. w w w Factoring was introduced in India after the recommendations of .......www..........com.... Narasimhan b..com....com...bankpromotionexams....b .. the future period for which the price is worked out d.. no effect d....... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m When variation in market interest rate causes the NII to contract. iib a.. st ...d ........ a.... the basis risk would move ... Legal Risk ca Risk arising on account of human errors..... All of these iib m Ans ........com.. Kalyanasundaram c............... ............com........... committe..... faulty systems and procedures or lack of internal controls is called as .. www. infrastructure breakdown.. the banks. The term i. Operational Risk c.. Tandon d.............. technical faults.a ....jaiibcaiibmocktest.com... admin@jaiibcaiibmocktest.. Spot price of the currencies involved b........com... www........ www. Exchange Risk b......c o a.... against b.jaiibcaiibmocktest..com.......... none of these te Ans .onlyforbankers.. 09994452442 8 . None of these Ans .com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail........ in favor of c.. www. The Interest rate differentials for the currencies c.....b ....com murugan0501@gmail. The Forward price of a currency against another can be worked out with the following factors: oc k a... Market Risk d.... [email protected] Ans .. . ca iib ABC Co..a ... What account should ABC credit in the January entry? iib a.. www. follows the accrual basis of accounting and performs a service on account (on credit) in December... www... None of these Ans .000 c.. Decrease Owner's (Stockholders') Equity By 35.com.... 3 Ans ..com. Debit b............ In January ABC will debit Cash..com.jaiibcaiibmocktest.com............000 and credited Service Revenue for 35.jaiibcaiibmocktest. 5....com. www. 5... Either a or b d..... since cash was received...com [email protected] from Raj..000 with terms of net 30 days. None of the above ................b . The service was billed at the agreed upon amount of 35..c o a. 5 d...... [email protected] b...... Decrease Assets By 35...com.....www. 2.. ABC follows the accrual basis of accounting.... Owner's Equity d. ………………………………………………………………………………………………………………………………………………………………… www..... st ..com..c ...... debited Accounts Receivable for 35.. 09994452442 9 .com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected]..... Credit c...... 3 b.onlyforbankers.......00000 and to a......... Accounts Receivable b.com. In January ABC received the 40... The effect of this entry on the balance sheet of ABC is to increase assets by 35..... te What is the normal balance for stockholders' equity and owner's equity accounts? oc k a..000. www. and that in forfaiting .. Increase Owner's (Stockholders') Equity By 35.ja Ans ...bankpromotionexams....... w w w ABC Co.. ABC Co. Service Revenue c... None of these m Ans . admin@jaiibcaiibmocktest.... 3 c...b .... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m The number of parties involved in factoring is ............000 d....... 3.... performed services for Client Raj in December and billed Raj 40... .c o a......b .150 Vertical adjustment .......000 from a sole proprietorship or when a corporation declares and pays a 50...com..500 Exposure on retail assets . None of the above te Ans .jaiibcaiibmocktest... Owner's/Stockholders' Equity Decreases c.190 Capital charge for equity .... Either a or b d.com.....com..... admin@jaiibcaiibmocktest.. A bank has compiled following data for computing its CRAR as on 30 Sep 2014 w w w Tier I capital 2500 Tier ii capital 2000 RWA for credit risk other than retail assets (include 2000 crores of commercial real estate ....bankpromotionexams..com.. Both a and b d...com......jaiibcaiibmocktest.. Supplies Which of the following would normally be a current liability? m Ans ....com [email protected]...... Owner's/Stockholders' Equity Increases b. What is the other effect on the balance sheet? iib ca a. iib When an owner draws 50.. the asset Cash decreases by 50.b .. Note Payable Due In Two Years b..700 Total eligible financial collaterals available for retail assets .15 Horizontal adjustment ....1200 Capital charge for general market risk net position ....bankpromotionexams. Prepaid Insurance d........... oc k a.ja Ans .000 dividend.... Unearned Revenue c. www....com.com..com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected] . 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Which of the following would not be a current asset? st .8.www...10 ………………………………………………………………………………………………………………………………………………………………… www. admin@jaiibcaiibmocktest... Land c......35. Accounts Receivable b.000. www. 09994452442 10 .. www........ None of the above ....onlyforbankers..... www......450 Capital charge for specific risk . ... st .com.........com...a iib a.com..onlyforbankers.. answer the following questions...c ........ Rs...jaiibcaiibmocktest.. www.com.. 09994452442 ………………………………………………………………………………………………………………………………………………………………… Based on the data given above.390 The capital required for credit risk at minimum required rate as per RBI is .. oc k te a.... www. 3701 Crores d.... Rs.... Rs.onlyforbankers...... 8952 Crores d.....com..com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail.. 4585 Crores b.c o m Total capital charge for options .... Total Risk weighted assets for market risk w w w = 450+190+15+10+150+70 = 885/. 9833 Crores b. 4944 Crores b.com.com. www... 7156 Crores ………………………………………………………………………………………………………………………………………………………………… www. admin@jaiibcaiibmocktest... 3508 Crores iib = 8700-1200=7500 @ 75% =5625 35500+5625=41125 9%= 3701 Crs ... Rs. Rs.jaiibcaiibmocktest.....www... m Ans .... 9553 Crores c.... 4383 Crores c...... 09994452442 11 .bankpromotionexams. Rs. Rs........bankpromotionexams.. 4323 Crores c.. Rs.com.. Total weighted assets for operational risk is ... Rs.. Rs..09 = 9833 Crores ..495 Gross income for the year before previous year . a.ja Ans ....70 Gross income for the previous year .. 7156 Crores ca Total Risk weighted assets for market risk is ..450 Gross income for 2nd year before previous year . Rs. 9553 Crores d.. Rs..com murugan0501@gmail.. www.. admin@jaiibcaiibmocktest..... . oc k te a..c ..................com..ja Ans .. a....com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected] % d. www............. 25% of there Tier-I Capital or USD 10 million c........b iib m 41125+9833+4944 = 55902 4500/55902 = 8................ 25% of there Tier-I Capital or USD 10 million whichever is higher d. The CRAR of the bank as on 30th Sept 2014 is ................com............. 8..com......jaiibcaiibmocktest. 10. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Ans ..................www. Rs 20 Million c.... 9......jaiibcaiibmocktest................ iib a......c o 1335/3 =885/..... www..com................ Rs 50 Million d...... ca RBI has permitted banks to borrow and invest through their overseas correspondents in foreign currency subject to .com [email protected] % b........ 7.05 % c..... 09994452442 12 ............. w w w The treasury is run by a few specialist staff engaged in high value transaction per trn size generally not being ... Rs 10 Million b..com........ 25% of there Tier-I Capital b....c .049 ...23 % Ans ..bankpromotionexams...bankpromotionexams............. [email protected]..... www.. None of these Ans .........09 =4944 .... [email protected]................. ………………………………………………………………………………………………………………………………………………………………… www...onlyforbankers... 25% of there Tier-I Capital or USD 10 million whichever is lower .......com..a st .... www. .... Rs.. 10% d...10 = 90...com.90 d. 12% Ans .. 320000/c... www. total capital ratio should not be lower than..com..... 175000/Ans ......com..90 .c .c o a... 200000/d.50 Explanation : ca Interest rate = 10 % annual iib m Ans . 90.....c CPs are issued at discount prices. admin@jaiibcaiibmocktest. 500000/Realization value of security – Rs.b ………………………………………………………………………………………………………………………………………………………………… www.. 100) carrying an interest rate of 10 % and maturity of 1 year expressed as % of notional value? oc k a...com...com murugan0501@gmail. 100 b.. www. www.onlyforbankers..........9090 = 90.... then w w w .com. ... Rs.bankpromotionexams... te What would be the issue price of a CP (Face value of Rs.......com. Rs.. 96. st .bankpromotionexams.... 8% c.www. Rs.. 500000/b. 09994452442 13 ..... 92...jaiibcaiibmocktest.... 5% b.. [email protected].... Asset in doubtful category for 2 years – Rs.onlyforbankers.....com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail...... So if face value is 100....com.ja iib Issue price × (1+10%) = 100 Issue price × 1.15 c.. www. 300000/What will be the provision requirement? a.10 = 100 Issue price = 100/1.. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m As per the Basel-II norms.. ...c o Provision for secured portion of Doubtful Cat for 2 years = 40% Provision for unsecured portion of Doubtful Cat for 2 years = 100% Here...... a only d.... spread b.. a & b iib The difference between buying and selling rate is called . 09994452442 14 ...... Secured portion = Rs...... www..onlyforbankers....... all the above Ans ...... www. 200000 oc k te Provision = (300000 * 40/100) + 200000 = 120000 + 200000 = 320000 . www..jaiibcaiibmocktest..com......... profit c.... notice money b. Forward transactions b.com.... Tom transactions m All the exchange rates quoted on the screen or in print are for mentioned unless otherwise ................ Spot transactions d. [email protected] murugan0501@gmail...... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Explanation st ... term money d......onlyforbankers..... 300000 Unsecured portion = Rs....www... ………………………………………………………………………………………………………………………………………………………………… www.com.. ca Ans ....com....com......c ....... call money c..... iib a...com...d ..com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected]........ admin@jaiibcaiibmocktest........ w Ans ..bankpromotionexams...........bankpromotionexams...................com.... a. w w Placement of funds for overnight is called ..b ... www..ja a.......com.......... Cash transactions c.. . 320000/c...com......jaiibcaiibmocktest.. 55....com. to arrive at the TT Buying Rate applicable for the customer transaction. less our margin. 500000/b.......com.jaiibcaiibmocktest. www.... 48. [email protected] Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail.. Rs. 6 to 9 d.09.... . Rs......com... Departure ………………………………………………………………………………………………………………………………………………………………… www.... 9 to 12 Ans ... admin@jaiibcaiibmocktest.... www. Rs...... i..b .09 and sells at Rs 48.... www.. st . 200000/d.....onlyforbankers..09/11. as applicable.bankpromotionexams.www...21 b...11... 3 to 6 c...........000.. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Treasury discount bills of exchange..onlyforbankers.00 by TT for credit to your exporter's account.com..com murugan0501@gmail... Which of the following is not a category of incoterm? a.. meaning that market buys USD at Rs 48...ja Asset in doubtful category for 2 years – Rs. Say when USD/Rs is being quoted as 48.e......25 d.....com... of short term nature with a tenure of ... 175000/- Ans .. Rs. 1 to 3 b.....25.. What rate you will take to quote to the customer. 09994452442 15 . 55. .. www.... if the market is 55.. 55. months.........c o a..bankpromotionexams.Bank commission iib Ans .. oc k te Inflow of USD 200......... 500000/Realization value of security – Rs....b ......b Explanation : iib ca It will be purchase of USD from customer for which USD will have to be sold in the market. We shall have to quote rate to the customer on the basis of market buying rate..21/25? m a.. being advance payment for exports (credit received in Nostro statement received from New York correspondent).21-Bank commission c... 300000/What will be the provision requirement? w w w a. 55...com... com murugan0501@gmail... www...e... Export / import trade is regulated by the DGFT b.. 76.. GBP/USD 1.com.d ... Ans .ja a....... 77...... Compute Rate for Customer...... USD/INR 55.............. w .5480 b. i..com.bankpromotionexams..... sell Rupee.... www..16/18.000.. EXIM bank c.... Arrival d.... ………………………………………………………………………………………………………………………………………………………………… www... RBI regulates exchange control and receipt / payments of foreign exchange under FEMA guidelines d.com.......... 09994452442 16 ...bankpromotionexams.d Explanation : For retirement of import bill in GBP. ignore cash discount/premium.onlyforbankers.com..2682 w w Ans ..com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail. The registration number of the firm / company for international trade is known as BIC. iib Retirement of import bill for GBP 100.... we need to buy GBP..com.... to buy GBP we need to give USD and to get USD.1140 d. 77.onlyforbankers.. 76.........com.... www. Select the incorrect statement.6985 c....... Main carriage paid / unpaid c...... www..3965/75.... [email protected]. FEMA Ans . we need to buy USD against Rupee... [email protected]... oc k te a.. m Who publishes prime rates for major currencies on the monthly basis ? ca iib a.com..c ..00 by TT Margin 0.d .jaiibcaiibmocktest....... All are incoterm categories Ans .....www.. FEDAI d.. 09994452442 ………………………………………………………………………………………………………………………………………………………………… st .20%...c o m b.. DGFT regulates trade control through exim policy c... RBI b... PIO b...jaiibcaiibmocktest. (ii) and (iii) iib Debentures are not governed by .... www.com.. What is the amount of net NPA? a. Rate would be 77.1542..18.... ca a.... Only (i) and (ii) b........... 09994452442 ………………………………………………………………………………………………………………………………………………………………… st . Add Margin 0.com... Based on this information.. The GBP/INR rate would be 77......b .com... Only (ii) and (iii) d.....onlyforbankers.. admin@jaiibcaiibmocktest...... www.jaiibcaiibmocktest..com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail............ Gross NPA 10% and Net NPA 3%....... 09994452442 17 . (1........20% 0. Foreigner m Ans .18).bankpromotionexams... Resident Indian d.2682 for effecting import payment.. Rs 4000cr b. www...1542 = 77......1140. . admin@jaiibcaiibmocktest... (iii) Company Law iib Ans ... What is the amount of gross NPA? a.3975 USD....c o m At the given rates...com..... Thus the interbank rate for the transaction can be taken as 77.. Rs 4500cr c. GBP can be bought at 1. (ii) BR Act.. te Foreign citizen of Indian origin is called as . while USD can be bought at 55... (Bill Selling Rate)..bankpromotionexams........ answer the following quwstions? w w 1... Rs 5000cr d..3975 x 55.com.. oc k a...ja Balance sheet of a bank provides the following information: w Total advances Rs 50000cr...com murugan0501@gmail........ NRI c. www..... (i)...onlyforbankers.1140 + 0. . at which we can get GBP at market rates.... Rs 5500cr 2.com.www..com...... Rs 1000cr ………………………………………………………………………………………………………………………………………………………………… www...... Only (i) and (iii) c. (i) Law of Contract.1140.com..c .... Rs 4200cr w w w 7.ja a. Rs 4200cr iib 6.bankpromotionexams. 09994452442 ………………………………………………………………………………………………………………………………………………………………… st . Rs 3680cr c. What is the minimum amount of provision to be maintained to meet the PCR of 70%? . Rs 4000cr d. What is the provision on NPA accounts? m a. Rs 3500cr b. Rs 4500cr d.com.c o m b. Rs 3000cr b. including the standard accounts? ca a. Rs 3500cr b.jaiibcaiibmocktest. if all the standard loan account represent general advance? te a. What is the amount of provision for standard loans.onlyforbankers. RS 3500cr c.com. Rs 4000cr d. if all the standard loan account represent direct advances to agricultural? a.com.com. www. www.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail. Rs 150cr b. [email protected]. Rs 160cr c. Rs 1800cr 3.bankpromotionexams. RS 1200cr c.com. What is the amount of provision for standard loans. Rs 90cr b. What is the amount of provision for standard loans.com [email protected]. if all the standard loan account represent advances to SMEs sectors? ………………………………………………………………………………………………………………………………………………………………… www. Rs 135cr d. Rs 200cr oc k 4. Rs 3680cr c. Rs 180cr 8. www. Rs 5000cr iib 5. [email protected]. 09994452442 18 .5cr c.onlyforbankers. Rs 180cr d. Rs 1500cr d.com. www. Rs 112. What is the total amount of provisions on total advances. com. Rs 180cr c.5000 = 45000 Provision for standard loans (general advance) = 0. Rs 180cr 9.ja 2. What is the amount of provision for standard loans. c Net NPA = 50000 x 3 % = 1500 Cr w w w 3. Rs 112. 09994452442 ………………………………………………………………………………………………………………………………………………………………… st . Rs 450cr Solution : iib ca 1.Gross NPA = 50000 . c Stadard Accounts = Total advances .onlyforbankers.com. www.4% = 45000 x 0.(50000 x 10%) = 50000 .com murugan0501@gmail. c Gross NPA = 50000 x 10 % = 5000 Cr .www.jaiibcaiibmocktest. Rs 337.com. Rs 337. 09994452442 19 . www.5cr c. www. What is the amount of provision for standard loans.com. Rs 90cr b.onlyforbankers.bankpromotionexams.bankpromotionexams. Rs 180cr c.5cr d. [email protected]% = 180 Cr ………………………………………………………………………………………………………………………………………………………………… www. Rs 135cr d.com. Rs 450cr oc k 10. Rs 112.jaiibcaiibmocktest. if all the standard loan account represent advances to CRE-RH sectors? iib m a. if all the standard loan account represent advances to CRE sectors? te a.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected] o m a. Rs 112.com.com. [email protected] b. www.com.5cr b.5cr d. (50000 x 10%) = 50000 .25% = 45000 x 0.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected] Cr ………………………………………………………………………………………………………………………………………………………………… www.bankpromotionexams. 09994452442 20 .onlyforbankers. a Minimum amount of provision to be maintained to meet the PCR of 70% = Gross NPA x PCR = 5000 x 70% = 3500 Cr . www.jaiibcaiibmocktest.com.25% = 45000 x 0.com. www. 09994452442 ………………………………………………………………………………………………………………………………………………………………… te oc k 5.com.ja iib Provision for standard loans (direct advances to agricultural) = 0.com.5000 = 45000 Provision for standard loans (SMEs Sector) = 0.5 Cr w w w 8. admin@jaiibcaiibmocktest.(50000 x 10%) = 50000 .onlyforbankers. b Stadard Accounts = Total advances .jaiibcaiibmocktest.25% = 112.c o m 4.com. b Provision of NPA = (Gross NPA .Gross NPA = 50000 .25% = 112. b Provision on Total Advances = Provision of NPA + Provision for standard loans = 3500 + 180 = 3680 Cr st .Gross NPA = 50000 . www.com.com.3%) x 50000 = 7% x 50000 = 3500 Cr iib ca 7. admin@jaiibcaiibmocktest. www.www.com [email protected] NPA) x Total Advances = (10% .com. b Stadard Accounts = Total advances .5000 = 45000 m 6. ..........com....... (Banking with Dhanlaxmi Bank) an agriculture entrepreneur growing vegetables in green housetechnology in Khammam wants to update his farm house with modern machinery...jaiibcaiibmocktest...Small and Micro Enterprises CRE .. (i).com.......com.c o m 9. (iii) Removal of all trade barriers in the world w w w a.. (i) The process of integrating domestic market with global markets.... Mr Ram.. He is importing the same from a Chinese manufacturer M/s Zuanch LLC.. characterized by free capital flows and minimum regulatory intervention...Gross NPA = 50000 .... .bankpromotionexams. www. [email protected]. (ii) Full convertibility of all currencies in the world.......com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected].. Only (ii) and (iii) d..... www...75% = 45000 x 0....... Only (i) and (iii) c..... www... c Stadard Accounts = Total advances .com..RH . 09994452442 ………………………………………………………………………………………………………………………………………………………………… te Provision for standard loans (Commercial Real Estate (CRE) Sector) = 1% = 45000 x 1% = 450 Cr st .Commercial Real Estate (CRE) Sector CRE . 09994452442 21 .5 Cr iib SME ... d Stadard Accounts = Total advances .(50000 x 10%) = 50000 .Gross NPA = 50000 .....Commercial Real Estate – Residential Housing Sector (CRE-RH) .onlyforbankers.www....com....com [email protected] . Beijing who are banking with China ………………………………………………………………………………………………………………………………………………………………… www.. (ii) and (iii) Ans .ja Globalization does not refer to .. www.jaiibcaiibmocktest......(50000 x 10%) = 50000 .... [email protected] = 45000 ca iib Provision for standard loans (Commercial Real Estate (CRE-RH) Sector) = 0.com...bankpromotionexams.5000 = 45000 m oc k 10..75% = 337.. Only (i) and (ii) b. ...... (i).. 5 iib How many times... 09994452442 22 ..jaiibcaiibmocktest. Khammam b)Beneficiary of LC M/s Zaunch LLC c)LC Opening/ Issuing Bank Dhanlaxmi Bank d)Advising Bank/Confirm Bank Bank of China e)Negotiating bank China Development Bank f)Reimbursing Bank Bank of China in China . w w Verification and settlement of the deals concluded by the dealers is not performed by . ………………………………………………………………………………………………………………………………………………………………… www... Ans who is who oc k te a)Applicant of LC b)Beneficiary of LC c)LC Opening/ Issuing Bank d)Advising Bank /Confirming e)Negotiating bank f)Reimbursing Bank Ans : ca iib m a)Applicant of LC Mr Ram... www........ www. As such... Only (ii) and (iii) d......... www.com..com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected].. . (ii) Treasury administration.www..jaiibcaiibmocktest. a transferrable LC can be transferred? w Ans ...com... 09994452442 ………………………………………………………………………………………………………………………………………………………………… st .com....b ..onlyforbankers.. 3 d. Dhanlaxmi Bank’s China Foreign Correspondent Bank is Bank of China. [email protected]..... (i) front office.com.. Only (i) and (ii) b.. www.com.com..com [email protected] o m development Bank for total cost of US$ 4500. Mr Ram approaches Dhanlaxmi Bank for opening of Letter of Credit (Foreign) in FCY USD.. 2 c. admin@jaiibcaiibmocktest............ Only (i) and (iii) c............. (iii) Risk management a..................com.. (ii) and (iii) Ans ....bankpromotionexams..... Beijing......a ..... M/s Zaunch LLC has issued an invoice stating the sale transaction must be backed by LC.... 1 b.ja a.......... ... Both (i) and (ii) te Ans ........ among others.. ECGC iib a...... USD c.. Exporter c.com murugan0501@gmail. (ii) Net worth as per last balance sheet must not be below Rs 2 crore a. 10 b..onlyforbankers...onlyforbankers.... BP d.. m a........com. which of the following.... 09994452442 ………………………………………………………………………………………………………………………………………………………………… st ....... Only (i) b... www............ 30 d. [email protected].. RBI-FED d... 09994452442 23 .... oc k Which one of the following is not the member for contracts valued more than 100 crore of an inter working group at pre bid stage in deferred payment exports/project exports ..com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected]..% of total Operational Risk Capital Charge calculated under AMA...jaiibcaiibmocktest.......c o m As per RBI guidelines.. NZD b..... Only (ii) c.. admin@jaiibcaiibmocktest.... www. w w w The recognition of insurance mitigation is limited to ....jaiibcaiibmocktest.....com. is / are the principal requirements for issue of CP? (i) Issuing company should have minimum credit rating of P2.com...b .......ja Ans ....com....bankpromotionexams.. www........... EXIM bank b...............com.b . ………………………………………………………………………………………………………………………………………………………………… www.bankpromotionexams.....a . a.. www..... Euro ca Which of the following curency is not quoted as indirect quote (rate)? .......b ............. iib Ans ........ Either (i) or (ii) d.........com.... 50 Ans .....www... 20 c.... .......... Price b.. None of these iib Portfolio risk is called the risk at . Regional/Zonal level c....... m oc k a.......... 11 th c.. ....www.onlyforbankers.....com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected] ... Branch level b... www..com. 3 b... Ans ....... 15 th d......com........... The Forward price of a currency against another can be worked out with the following factors: a............... Value d........ Any one of the above Ans . ca a.. 6 iib Ans ..jaiibcaiibmocktest............... www..... Ratio c.. at which one currency is exchanged for another currency. 30 th Ans . te Under AMA approach (Estimated Probability of Occurrence)............. admin@jaiibcaiibmocktest.. Spot price of the currencies involved ………………………………………………………………………………………………………………………………………………………………… www. 5 d... www..com.. Aggregated level d.....day...com...com...........com [email protected] ....com............... 4 c..jaiibcaiibmocktest...bankpromotionexams..... Probability is mapped on scale of ......ja Sight bills drawn under import letters of credit would be crystallized on the. w w w a..... st ..... www...........com.....onlyforbankers. 10 th b... after the day of receipt if not yet paid.. 09994452442 24 ...c .c o a...bankpromotionexams.. admin@jaiibcaiibmocktest.. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Exchange Rate means the .c ..com.. ...... The Interest rate differentials for the currencies.com.........www........com... Higher the risk in a business..com.......... systemic c. All of these Ans ..com [email protected] . higher would be capital requirement c.......onlyforbankers.. m Which of the currencies are not been quoted as indirect rates? ca iib a... AUD Ans .........com.bankpromotionexams.b ... iib Which of the following statements is correct? w w w . FEDAI is a ..... Self oriented body d.............. Failure of the whole banking system is known as .e.. strategic b..... higher would be return expectation b... Statutory b.... The term i..onlyforbankers...........com. c............. 09994452442 ………………………………………………………………………………………………………………………………………………………………… st ....jaiibcaiibmocktest. www.... d........ YEN c........ higher would be capital requirement and higher would be return expectation d. oc k te a.. the future period for which the price is worked out.........com....... EURO d. None of the statements is correct Ans ... admin@jaiibcaiibmocktest... body. www..bankpromotionexams. risk.. GBP b.. [email protected] a.. operational ………………………………………………………………………………………………………………………………………………………………… www.. Higher the risk in a business... 09994452442 25 .......d ....com.......... www.c o m b....com...jaiibcaiibmocktest.....d ........ Higher the risk in a business............. Non-profit making body Ans ... bank d..com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail......... a.... Non-statutory c...... www....... jaiibcaiibmocktest...com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected]............. supplementary c................ funds placed after giving a notice of placement c.... funds placed overnight b....... 1 year.....com murugan0501@gmail.............. te a. The FIs can issue CDs for a period not less than _____ and not exceeding _____ from the date of issue. 10.... capital.. 7 days. 09994452442 26 ..com.....jaiibcaiibmocktest....d .................. core b... placement of funds beyond overnight but not exceeding 14 days w Ans .www.ja iib a...com.............c o m Ans .....com...bankpromotionexams......b .. 75 c. 09994452442 ………………………………………………………………………………………………………………………………………………………………… st . m a.. complementary d.............a ...... 1 year c. ..... 1 year...... 25 d.... www....... 6 months b... 100..onlyforbankers....... 50 Ans .. admin@jaiibcaiibmocktest....... 3 years d..com..... 25 b......... none of these oc k Ans ..c . admin@jaiibcaiibmocktest. 100.. 15 days...onlyforbankers. Tier 1 is also known as ... w w Banks can borrow and lend (under call money) overnight up to a maximum of ____ % and ____ % respectively of their capital funds. 5 years Notice money refers to .......bankpromotionexams.com... ………………………………………………………………………………………………………………………………………………………………… www.... www.. iib ca Ans .. www...... www.com... 50............. a..com... funds placed for periods in excess of 3 months but not exceeding 1 year d........c . ........... 09994452442 27 ... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Which of following documents does not contain Zero risk ? st ...... 2-b.. 5..05% b... 18% a............30% d..... 1-c. Operating Profit c.a .... 15% Commercial banking c..com.c . 6..... m a.............. Its modified duration is 5 years...... 1-b..... 1-a.... 12% Retail banking b...... www....com.... iib Ans ...onlyforbankers........com... 3.c o a..bankpromotionexams..com. 2-c.com... No Changes made d.. Investments in shares b...a .. ………………………………………………………………………………………………………………………………………………………………… www.... What is its McCauley's duration? w w w ...jaiibcaiibmocktest.... admin@jaiibcaiibmocktest..... 1-a...00% ca A bond with remaining maturity of 5 years is presently yielding 6%..onlyforbankers.........com.bankpromotionexams..www. The Net Interest Income has been replaced by . Net Profit b....... 3-b Ans ... 5... 3-a c...jaiibcaiibmocktest........... oc k te As per the Reserve Bank of India in the draft guidelines for implementation of the new capital adequacy framework has modified the Gross Income definition slightly... www..... 3-c b... 3-b d.... www..... www...com..com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail. 2-c.. Match the following beta factors with the business liness under standardised approach: Corporate finance a. [email protected] ......ja Ans .. 2-a. Investment in government bonds Ans ....77% c.com murugan0501@gmail. Investment in bonds and debentures c..... Investment in term deposit d. Interest Expended iib a. .....com.........a .. securities c.. oc k a.....www.......b ... O/N MIBOR c..com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail.... ………………………………………………………………………………………………………………………………………………………………… www.... call money b... st . 09994452442 28 ..b ....c o a......bankpromotionexams.......ja Ans ..........com...... [email protected] .onlyforbankers. www.........com...com murugan0501@gmail.......... currency b... iib a. notice money c.... both of these d.. rupee account d. .... Which of the following is external cost of currency? w w w a.......... www.... te The wisely used benchmark rate for floating rate debt paper as well as for OIS (Overnight Interest rate Swaps) is . www.... Purchase or sale of an asset or a currency.....com...... term money d.......... interest rate b..... not for an end-use but only for resale or repurchase of the same asset with a profit is known as ..com....jaiibcaiibmocktest. exchange rate c. all of these ca Volatility of exchange rates arises in case of ...........com... all of these Ans ..onlyforbankers. both of these d.jaiibcaiibmocktest...........com.bankpromotionexams.. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m ______ rates indicate liquidity available in the inter-bank market.. none of these Ans .......com... LIBOR b. www... none of these iib m Ans .. admin@jaiibcaiibmocktest........... ...c ....... 09994452442 ………………………………………………………………………………………………………………………………………………………………… st ..... w w w a.com.. oc k te a.com...... speculation d.... OTM d..bankpromotionexams...c o m a.... P + I Swap d.......c . The components of broad money (M3) are: a. ATM b............. hedging c. none of these Ans ..ja In _____ swap.. 09994452442 29 .... none of these Ans ...... www........com.........b .jaiibcaiibmocktest.... If the strike price is more than the forward rate in case of a call option.bankpromotionexams.com..com.... carry Ans ......... barrier option m An option without any conditionalities is called a .c .com.... PoS (Principal only Swap) b.........com........ CoS (Coupon only Swap) c. credit availed by central government from RBI ………………………………………………………………………………………………………………………………………………………………… www.....com.. stock option b........... iib Ans .onlyforbankers.. the borrower has completely eliminated the currency risk and interest rate risk (zero risk)...... plain vanilla option c.......com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail..... leverage b...... admin@jaiibcaiibmocktest. cash in currency chests with RBI and banks c. the option is known to be ..www..........com murugan0501@gmail..... www....... .... ITM c.......... www... cash in circulation with the public b.. iib ca a. www...onlyforbankers.. zero cost option d....... [email protected]. ........ RBI on behalf of GOI b...a .. CD attracts stamp duty...www. admin@jaiibcaiibmocktest.. www........jaiibcaiibmocktest...ja iib a.... The minimum amount for which a CD can be issued is Rs ... SEBI on behalf of RBI d..... c.. 2 lacs c......... www....a ...... te Which of the following statements regarding CD is not correct? st ..................c o Ans .... both a and b d....... 10 lacs Government securities are issued by .................. 09994452442 30 .com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail. which of the following...com.. CD is issued in demat form or as promissory notes.. 1 lac b..... GOI c.. ………………………………………………………………………………………………………………………………………………………………… www..... CCIL on behalf of GOI w w w Ans ... www.........com [email protected]. CD is not a negotiable instrument.................... is / are the principal requirements for issue of CP? a....onlyforbankers...com....jaiibcaiibmocktest... As per RBI guidelines...... . b.onlyforbankers.. admin@jaiibcaiibmocktest. none of these Ans ..com............ 5 lacs d. ca Ans .............bankpromotionexams....a ...com.. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m d... oc k Ans . currency in circulation............ d....com.... Net worth as per last balance sheet must not be below Rs 2 crore c....a . www.b .........com...... demand and time deposits with banks and post office saving deposits a...... iib m a. CD bears higher interest rate than deposits in the bank.com...bankpromotionexams.... among others..... Issuing company should have minimum credit rating of P2 b. ..........com.. www... 9000 crores d..... Rs...... www. 7800 crores w Ans – b w w RWA of mkt risk =200/. Tier – II Capital c. 09994452442 31 .com................ Rs..... Based on the data given above. capital charge for market risk and operational risk Rs...com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected] iib a. www. None of the above Risk of Reduction in Mark-to-Market value of equities is ...com...b .... Credit Risk d. [email protected]. 5000 crores..... Interest Rate Risk b.... Rs.com.c o a.08=2500 RWA ops risk =100/....onlyforbankers.com... 500 crores and Tier II capital Rs. Tier – III Capital d..... Tier – I Capital b..bankpromotionexams.com.jaiibcaiibmocktest. ………………………………………………………………………………………………………………………………………………………………… www...bankpromotionexams..........com.. st .. What are the total risk weighted assets? .... ca iib Given that Tier I capital is Rs.... 8750 crores c. answer the following questions... Rs... 7250 crores b.....com.jaiibcaiibmocktest.. Market Risk c.. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Redeemable Cumulative Preference shares comes under ......... oc k a. www. 800 crores and further given that RWA for credit risk Rs...b ................ [email protected]=1250 Total RWA = RWA credit risk+ RWA mkt risk+ RWA ops risk = 5000+2500+1250 = 8750 .... m Ans . 100 respectively.... Operational Risk te Ans ...www..... answer the following questions if the regulatory CAR is 8%.... 200 crores and Rs..com murugan0501@gmail. ....c ....... admin@jaiibcaiibmocktest... cr cr cr cr Ans ............ sub ordinatted debt 200 cr and credit balance in suspense a/c 30 cr (Total Being 63000) oc k Ans ... a. refinance from NABARD 150 cr. bills payable 50 Cr... 09994452442 ………………………………………………………………………………………………………………………………………………………………… Total amt of liabilities not to be included in computing DTLs in RS te a..jaiibcaiibmocktest..... 58300 d.onlyforbankers... 67100 iib iib Total amount of DTL on which CRR is to be maintained w . ………………………………………………………………………………………………………………………………………………………………… www.... www..... SB deposit 20500 cr....... admin@jaiibcaiibmocktest... Reserve 2150 cr.. borrowing from RBI nil.... 360 Ans .... term deposit from public 30800 cr.www.. 3300 cr c.....com..ja =6500+20500+30800+200+50+20+200+30 =58300 other than those not included while calculating DTL . 58100 b..onlyforbankers.jaiibcaiibmocktest....... 1110 cr. www... days..... 180 d..com....com... 4700 cr st .. 120 c...bankpromotionexams.. w w PCFC can be allowed initially for a maximum period of ..com murugan0501@gmail... term deposits from banks 1300 cr.. www..bankpromotionexams.... 4600 cr d....com... www.....com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail. 3250 cr b....com.com.... accrued 20 cr.. demand deposit 6500 cr...c o m Data relating to balance sheet as on 14 Mar 2015 banks reveals its capital at Rs.....d m (1100+2150+150+1300=4700) In time liabilities capital and reserve + refinance from NABARD + term deposit of banks are not to be included ....... borrowing from other institutions 200 cr. 90 b......c ca a.....com. 09994452442 32 ....com..... 63000 c. ..bankpromotionexams...jaiibcaiibmocktest......com murugan0501@gmail... www.. admin@jaiibcaiibmocktest. exim policy b....com.......... st ........... stop loss d..formulated by the .... RBI.... iib Which of the following risks is also known as price risk? ca a... exposure ceiling c....com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected] ... Standardized approach c.... RBI d... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Physical movements of goods into India is regulated by ......a . 21 b.com...jaiibcaiibmocktest.. 25 ………………………………………………………………………………………………………………………………………………………………… www.. days in case of demand bills..com.. trade policy Ans .. www. admin@jaiibcaiibmocktest...... 09994452442 33 .......b ......com........bankpromotionexams... ............c o a...... Basic Indicator Approach b.. DGFT.... credit d..com. market b. DGFT c.com...com... Advanced approach Ans .......... www..... exim policy.ja Which is not an approach to measure Credit Risk? w w w a....... Foundation approach d....... IRB (Internal Rating Based.......... country iib Ans . open position m Ans ......onlyforbankers.. IRB (Internal Rating Based... exim policy...www.....com.. www.......... liquidity c.... Concessional rate of interest for post-shipment finance is allowed for . a......onlyforbankers. deal size b......b . te Which of the following is not a trading limit in the context of foreign exchange? oc k a..... .onlyforbankers.. Accepting Collaterals b.com................... www..........ja a. Diversification of Advances Ans .. both a and c m Which of the following is not included in Tier II capital? iib Which of the following is not included in (risk) pricing ? ........jaiibcaiibmocktest.... 09994452442 34 ..d ......... Cost of Deploying funds b. Entering into Forward Contracts d...... Which of the following is not included in Tier I capital? te a.com.www.. 90 d... www...com......com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail. disclosed reserves b. disclosed reserves b... both a and c oc k Ans .com.b . undisclosed reserves c..onlyforbankers... undisclosed reserves c.com........ 180 st . admin@jaiibcaiibmocktest...... Profit Probabilities d...c ..com...............bankpromotionexams.... Credit Risk can't be mitigated by .com murugan0501@gmail.... ca Ans ..... iib a..bankpromotionexams...... Capital Charge w w w Ans ..jaiibcaiibmocktest. [email protected] ………………………………………………………………………………………………………………………………………………………………… www.... Operating Expenses c. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m c.. equity d..com. www.. www......b ................ Credit Derivatives c...........c o Ans ... equity d.................. a.. ..jaiibcaiibmocktest... Investment centre b...c o a.......c ....... Foreign Exchange Regulation Act c....... None of these Ans . Fund management department c.com....com.......... [email protected]. service centre d...04.. What is the important operational feature of integrated treasury ? a.. the NTP will be .. www... 25... interest risk (of banking book) c..2015 c...jaiibcaiibmocktest......... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m In case of a 90 days DA (Usance) bill in GBP tendered to the bank on 01.....2015....... 25..com... commercial bank .ja Ans ... all of these For the organization point of view treasury is considered to be . 24................04. www. 30...... admin@jaiibcaiibmocktest. strategic and business risks d.. 21......07.....c ......com. www. (date)..... st ..... 25... Which act relating to foreign exchange has replaced earlier one ? w w w a.. 30..com murugan0501@gmail.. Foreign Exchange Management Act b. 25.....bankpromotionexams......com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected] ...2015 te Ans ...04......www. liquidity risk b........ iib ca a.... oc k a.onlyforbankers....com...bankpromotionexams.2015 b....com.. days and NDD will be . Which of the following risks is not included in capital requirement under Basel II? iib m Ans . Having a common dealing room ………………………………………………………………………………………………………………………………………………………………… www....... www. Both the above d..2015 d.. 09994452442 35 ....a .....onlyforbankers... ...... oc k a..com.. whereas in Exchange traded derivatives........ OTC derivatives are for customers while Exchange traded derivatives are for banks c... forward premium or discount is exactly equal to the difference between ......... iib The value of a derivative is determined by .... 09994452442 ………………………………………………………………………………………………………………………………………………………………… st ..com......com.. www... front office and IT department d...... a..a .. In case of free currencies...com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected]..... Looking for interest arbitrage across currency markets and be in a position to shift swiftly.. ....c ........ FIMMDA d. front office..d . Having a common Mid/back offices c.. www. www.... their head office branches b. m Ans ......... treasury and head office c.... risk-free interest rate of the two currencies ………………………………………………………………………………………………………………………………………………………………… www. All the above Ans . 09994452442 36 ...... OTC derivatives are for hedging risks...com...ja One of the essential differences between an OTC and an Exchange traded derivative is . mid office and back office te For ensuring effective risk control. In OTC derivatives......... OTC derivatives are cheaper while Exchange traded derivatives are costly b...com......bankpromotionexams.........com.www.........jaiibcaiibmocktest.c o m b..... w w w a.... ca a......com........onlyforbankers....... counter party risk is totally absent d.......... the value of the underlying b. notional principal amount c.. FEDAI iib Ans .com murugan0501@gmail..... [email protected] ..... a placement in Rupee denominated commercial paper to lending in USD in global interbank market and also being to source funds in global markets and swap the funds into domestic currency or vice versa depending on market opportunities d..... admin@jaiibcaiibmocktest........ whereas Exchange traded derivatives are used for speculation Ans ...... RBI expects banks to facilitate functional segregation between ............ www.onlyforbankers.. counter party risk is prominent.jaiibcaiibmocktest. admin@jaiibcaiibmocktest............jaiibcaiibmocktest..........c .. 182 days T-bill c..........com.. Your importer customer has to retire his import bill. Full convertibility of all currencies in the world b........com.. Only (i) and (ii) b....com. oc k te a... Spot rate and Tom rate d. www..... admin@jaiibcaiibmocktest..... Removal of all trade barriers in the world c.......... www.....bankpromotionexams.com.....bankpromotionexams........ (iii) relative inflation w w w a....onlyforbankers.... Only (i) and (ii) b..........com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected]... Globalization refers to ..... (i)..onlyforbankers.. Only (i) and (iii) ………………………………………………………………………………………………………………………………………………………………… www............ Only (i) and (iii) c. (i) Bills buying..com.. The rate of exchange to be applied will not be ....jaiibcaiibmocktest.. (iii) TT selling a... (ii) stock markets and commodity markets.......b .. The process of integrating domestic market with global markets.c o m b....... 91 days T-bill b..... (ii) and (iii) Ans ......com murugan0501@gmail. 09994452442 ………………………………………………………………………………………………………………………………………………………………… st .a . 364 days T-bill d....... Only (ii) and (iii) d.com..... characterized by free capital flows and minimum regulatory intervention d... LIBOR and RBI reference rate Ans .com..........www..ja Which of the following are macro-economic factors? (i) GDP growth rate.. www.. Fixed rate of exchange for all currencies of the world Ans ......a .. m Which of the following T-bills are issued fortnightly on Wednesday preceding non-reporting Friday? ca iib a....... both b and c iib Ans .. (ii) Bills selling. .. inflation rate in both the countries c. 09994452442 37 ..... www.... ........com...... October 2004 d..........com...... (i)...onlyforbankers.....com.onlyforbankers. Only (ii) and (iii) d... www......... ca Ans .b ... the strike price is more than the market price c... ITM (in the money) c....... www. www......bankpromotionexams....com... [email protected] murugan0501@gmail.. iib m a..... a put option can never be in the money w w w Ans ..com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail. market for currency futures commenced in a....com...... the market yet to commence operations Ans ......c o Ans .. the option is known to be . ____ swap refers to paying interest in home currency at rates applicable to a foreign currency.. Swaptions d...a ...... the strike price is equal to the market price d.... In India. the strike price is less than the market price b...... www. August 1993 c..ja a..... Plain vanilla iib A put option is in the money (ITM) if ......bankpromotionexams... .. admin@jaiibcaiibmocktest.. OTM (out of money) d....www.....a ………………………………………………………………………………………………………………………………………………………………… www... If the strike price is same as the forward rate on the start date.. ATM (at the money) b.. Coupon c.....jaiibcaiibmocktest.... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m c.....b ..........a .... Quanto b..com.com. (ii) and (iii) st ... August 2008 b.. 09994452442 38 ...... none of these oc k Ans ..jaiibcaiibmocktest.... te a.. com.a ..bankpromotionexams.....com..... 5...bankpromotionexams.77 b.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected] iib a. w w w LEVERAGE RATIO = RSA/(TIER1+TIERII) = 22500/3500 = 6.com [email protected] ca LEVERAGE RATIO IS iib m DWAP = DA-W*DL = FIRST CALCULATE W=RSL/RSA=21000/22500=..c o m NET WORTH RS.com.... 0...10 DURATION OF GAP FOR BANK IS ESTAMATED AT oc k te a.... 6. 09994452442 39 ....com. 9. 09994452442 ………………………………………………………………………………………………………………………………………………………………… st ..com.onlyforbankers.... www. 14...... www.b ………………………………………………………………………………………………………………………………………………………………… www.933 = 1..68 d........97 b...80-..com.... 3.43 b... 4.80 DL WT MODIFY DURATION OF LIABILITY 1. MODIFY DURATION OF EQUITY IS a.jaiibcaiibmocktest...99 c. NONE Ans .. 0.... 6..62 d.77 .....com.www...933*1.. www. www..ja Ans .428 .... 15 c...33 d. [email protected] Ans ..jaiibcaiibmocktest.73 c... admin@jaiibcaiibmocktest. 1500 CRS T1 + T2 CAPITAL RS 3500 CRS RSA RS 22500 CRS RSL RS 21000 CRS DA WT MODIFY DURATION OF ASSETS 1.........onlyforbankers. 0..com.10 = 0........ ... admin@jaiibcaiibmocktest. www.... within a year m In the notice money (a money market instrument)...... www. none of these oc k Ans ......bankpromotionexams...........com.......com murugan0501@gmail..... on the next working day c........com......... ca Ans ...... within a fortnight d.... www. www... within a year w w w Ans ... on the same day b.....a . funds borrowed by banks need to be repaid ..933*6....www....jaiibcaiibmocktest.. Which of the following methods of calculating VaR does not need a variance / covariance matrix? te a.com... 10 lacs Ans – c ………………………………………………………………………………………………………………………………………………………………… www......c o m Modified duration = DGAP*leverage ratio = 0. on the next working day c... 09994452442 ………………………………………………………………………………………………………………………………………………………………… st . 1 lac b. historical simulation method b...... on the same day b...com.. ..99 .........com.......d ..... 5 lacs d..com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail. [email protected] a.........................onlyforbankers. iib a... a.. 2 lacs c... correlation method d......com.... 09994452442 40 .....bankpromotionexams..com....c . funds borrowed by banks need to be repaid .......... iib In the term oney (a money market instrument).onlyforbankers.....com. monte carlo simulation method c.. within a fortnight d.. The minimum amount for which CP is to be issued is Rs ...43 = 5.......... .... mid c. 7 days............b .......com. admin@jaiibcaiibmocktest........ 1 year Ans . 6 months b.. short b........ www...... 5 te Ans . Which of the following statements regarding CP is not correct? oc k a. 3 c. 4 d.com..... 09994452442 41 ...... long d... ………………………………………………………………………………………………………………………………………………………………… www.com.www. 6 months d.......... being a tradable instrument.. st .. CP is issued in the form of a promissory note....ja Ans ...a .. admin@jaiibcaiibmocktest...... 15 days...... iib m Ans ... www.....c o a. w w w The maturity period of CDs (Certificate of Deposit) issued by banks should not be less than _____ and not more than _____. years of 15% of positive annual gross income.. www...com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail.... a.. Indexed return on CP is used as a benchmark rate for _____ . CP..jaiibcaiibmocktest. carries liquidity risk........ Banks can invest in CP if it is issued in demat form d........ 15 days.....com.... b... c.onlyforbankers. all of these .bankpromotionexams.........term advances....com murugan0501@gmail..... iib ca a.......b .onlyforbankers.com. www..com. 7 days...com.d ..com.......... CP is a negotiable instrument.. from the date of issue. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Banks using the Basic Indicator approach must hold capital for operational risk equal to the average over the previous .......bankpromotionexams.......................jaiibcaiibmocktest. 1 year c.. 2 b.. ..... a..com murugan0501@gmail.... ………………………………………………………………………………………………………………………………………………………………… www.... interest c...com...a ca 2915 2905 1749 3150 iib A B C D ............ www.. This is known as .. by financial futures d...onlyforbankers.......c o a. liquidity iib m Ans .. w w w Debentures are classified as ..jaiibcaiibmocktest...........com.onlyforbankers........... market b....ja 5% of amt of DTL that is 58300 and 5% is 2915 ..d ..... www..www.... by using interest rate swaps b......... admin@jaiibcaiibmocktest..... Bank would require to maintain average CRR amounting to ......... oc k a.. maturity mismatch between assets and liabilities result in excess or shortage of liquidity.............. 09994452442 42 .com...bankpromotionexams.... www... Owned funds d. Short Term Loan c..com... te Since all assets and liabilities in the banking book are held until maturity.....jaiibcaiibmocktest.. Owned funds if raised from shareholders Ans .com.......com..a .....bankpromotionexams............. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Interest risk can be mitigated in which of the following way(s)? st .... www.... Long Term Debt b.... by forward rate agreements c........ admin@jaiibcaiibmocktest... risk.com........ if the rate of CRR is 5% Ans ......com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected] ...... operational d. ......com. none of these Ans ...... . Only (ii) c...... (ii) Interest rate swap.....com.....b .............jaiibcaiibmocktest.. www.... www...onlyforbankers...com........... ………………………………………………………………………………………………………………………………………………………………… www. Swaps iib m Ans .........................com........ Find the odd man out : oc k a.. risk.... .. Only (i) b....com.. iib a............ Options d. www. Value at Risk (VAR) c.....bankpromotionexams.c o a.. Settlement ca The risk of failure of the counter party before maturity of the contract and hence the exposure of the other party to cover the transaction at the ongoing market rates is the ....... a.....com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail.. [email protected] [email protected] Ans ....www. www............... (i) interest rate swap. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m A coupon Swap is defined as .. admin@jaiibcaiibmocktest.. w w w A mismatch in assets / liabilities and receivables / payables is . Exchange c..c .. 09994452442 43 ........ Gap d. Credit b............ where fixed rate is exchanged with floating rate st ... Pre settlement d. Either (i) or (ii) d.com.....bankpromotionexams..onlyforbankers. Futures b..... Both (i) and (ii) te Ans . Interest Ans ... where underlying benchmark interest rates are exchanged.b .... risk.com.........com..c .com..jaiibcaiibmocktest......... Liquidity c. Country b. .com.onlyforbankers.ja Mr.. 50. Loss of Rs..com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail... 60 days te What is the limit for crystallisation period? ca a..jaiibcaiibmocktest.onlyforbankers...... 30 days c............com.........com... 2000 having maturity after 02 months for Rs....... None of these Ans .. www...... w w w ...... Authorised dealers d.. www..com........ 45 days d. admin@jaiibcaiibmocktest... Profit of Rs............ per mile c.d ... www. 15000 b Explanation..... 30000 d.com..... oc k a..b ..www.... Loss of Rs.Category I was earlier known as ...com. so it is assumed that. iib Ans ...jaiibcaiibmocktest. chain rule d.. ………………………………………………………………………………………………………………………………………………………………… www... 15000 c. Restricted Money Changers c.. m Ans .. shares of A were priced at Rs.... On maturity.....com [email protected] ..... This is put option....... Profit of Rs. X purchases a put option for 300 shares of A with strike price of Rs. 1900..... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Authorised persons .. st . [email protected]. none of the above iib A proportion per thousand is called as ...c o a..com. 15 days b. www.... per cent b. Full Fledged Money Changers b.... 30000 b...bankpromotionexams.....com... 09994452442 44 .. What is the profit/lost for the individual on the transaction (without taking the interest cost and exchange commission into calculation)? a................ .com.......... risks in trading portfolio and . m He will sell 300 shares of A at a price of 2000 Total value of shares is = 600000 oc k VaR is used to measure and manage ...bankpromotionexams. 300 × 1900 = 570000 So profit of 30000 in the transaction. stress .........com.....b .b ......................15000 = 15000 . [email protected].... market...........com.... monte carlo simulation method c.. w Ans .. volatility d.. ………………………………………………………………………………………………………………………………………………………………… www.. te Then he will buy the total shares in the market at a price of 1900..............c o But he has to paid Rs.... stress testing b..... operational. 09994452442 ………………………………………………………………………………………………………………………………………………………………… st .bankpromotionexams.... www.............. back testing c... 50 per share to buy put options.com.......... simulation ca The process where model based VaR is compared with the actual performance of the portfolio is known as .. www....com.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail... credit. investment c.com.ja iib a. 09994452442 45 ..............onlyforbankers.... portfolio......com murugan0501@gmail...... www. m a..c .. market..... admin@jaiibcaiibmocktest..... =300 × 50 = 15000 Total profit or loss = 600000 . historical simulation method b.com....... legal d.onlyforbankers....com... all of these Ans . ........ iib Ans ......... w w Which method is also known as variance / covariance matrix method? a. correlation method d........570000 . business b.jaiibcaiibmocktest..jaiibcaiibmocktest.. www... .. TT selling ..... TT selling c.......... 30. scenario analysis c.. NDD....b .........normal movement in one or more market parameters? st ...........www.. admin@jaiibcaiibmocktest........ www.. simulation te Ans ...... Which of the following methods is the leading stress testing tecnique? iib m Ans ... 30.. oc k a..a .com...d . iib a. at the prevailing ....... rate... exim policy d...bankpromotionexams.. ………………………………………………………………………………………………………………………………………………………………… www. w w w Which of the following regulations governs payments of imports of goods into India on the basis of FEMA 1999? a.....com... exchange control regulations c...... 21...com.....jaiibcaiibmocktest...onlyforbankers..jaiibcaiibmocktest...c o a.ja Ans .......com. the period of crystalization is ....... trade regulations b... maximum analysis d............b .. TT buying b..........com murugan0501@gmail. www... 09994452442 46 . www...th day after the .com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail.......... EVT (Extreme Value Theory) ca FEDAI rules provide that in case of unpaid usance bills.....onlyforbankers....com...... back testing c.. volatility d. 30. NTP..... stress testing b....... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Which method is used to determine possible changes in the market value of a portfolio that could arise due to non . simple sensitivity test b... NTP. NTP...com... None of these Ans ...bankpromotionexams. [email protected]... TT buying d.com.... www........... . Credit Risk d.... It helps in assessing risk due to abnormal movement of market parameters d...onlyforbankers..... www...com. 3 months b.a . VaR is not enough to assess market risk of a portfolio... Operational Risk iib Basis Risks are type of .... 1 year Ans . m Ans .. 1 day................com....www....com.... 1 day.... ………………………………………………………………………………………………………………………………………………………………… www. st ........ Market Risk c.. oc k a..jaiibcaiibmocktest..... 100 bp c..bankpromotionexams...c o a....... for terms extending from ...... te Overnight inter-bank rates (difference between repo and reverse repo rates) should normally move within the bandwidth of .......com.. to .... www....... [email protected]..... 1 year d.............. 09994452442 47 ........ja Ans . 150 bp d..... [email protected].... It helps in calibrating VaR module b....c ........ 50 bp b.......... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Repo is used for lending and borrowing money market funds....... www.. 3 months. www..............onlyforbankers. Interest Rate Risk b.......jaiibcaiibmocktest.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail.. ... It is used as VaR measure is not accurate enough Ans ..... 200 bp iib ca a...... It helps as an additional risk measure c..com..com..com.c .c ... w w w a...........com murugan0501@gmail. 6 months c.... 1 day.. Stress testing is desirable because . .. ………………………………………………………………………………………………………………………………………………………………… www.. 3-b d..bankpromotionexams..............com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected]..... Market Risk c.......com.... income oc k Ans ........ 2-a... 3-c c..a ....... Basic Indicator Approach a...c . Standardised Approach b.. 1-a..... 3-a st ....com murugan0501@gmail.. Credit Risk d.. www.... The minimum capital that is required to be maintained c.. www. 2-a.. www. It helps in calibrating VaR module b.c .com..com... None of the above Basis Risks are type of ....com... Stress testing is desirable because a. The capital as specified by the regulatory authority is required to be maintained d. Under Basel II.....bankpromotionexams..... 2-b.. Operational Risk w Ans ..... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Match the following three methods to measure operational loss with the methods on which these are based: te a. www.com.. capital requirement under the accord is ca Ans .. income 3.... 09994452442 48 .jaiibcaiibmocktest...... 2-c.d . Operational loss 2................... w w VaR is not enough to assess market risk of a portfolio....jaiibcaiibmocktest.... 1-c.. 1-b....onlyforbankers.com.....c o 1.......... iib m a.onlyforbankers... It is used as VaR measure is not accurate enough Ans . The maximum capital that is required to be maintained b..... 1-b.......... It helps in assessing risk due to abnormal movement of market parameters d..www.... Advanced Measurement Approach c...ja iib a..com........... It helps as an additional risk measure c.. admin@jaiibcaiibmocktest.. 3-c b.. . Interest Rate Risk b.. admin@jaiibcaiibmocktest....... ... OTC derivatives are for customers while Exchange traded derivatives are for banks c...bankpromotionexams... Secondary market c. oc k a............ iib One of the essential differences between an OTC and an Exchange traded derivative is iib ca a...bankpromotionexams. counter party risk is prominent. The value of the underlying b..www.... Merchant banking business b.....com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail.... Notional principal amount c.. OTC derivatives are cheaper while Exchange traded derivatives are costly b..onlyforbankers........ FIMMDA d...onlyforbankers......com [email protected]. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m The value of a derivative is determined by st .. In OTC derivatives...c ............ www.jaiibcaiibmocktest.jaiibcaiibmocktest...com. OTC te Ans ....... Investment business d....... ………………………………………………………………………………………………………………………………………………………………… www.....com. [email protected] ...... whereas in exchange traded derivatives......com..............b ....... Open market d.. www........ risk arising from defaults in payments of principal and/or interest by the borrowers.c o a... OTC derivatives are for hedging risks whereas Exchange traded derivatives are used for speculation .. Trading business c. counter party risk is totally absent d. FEDAI Security dealers deals with of the following market...com..... m Ans .......... Asset side of the banking book generates . A treasury transaction with a customer is known as ..... Commercial banking Ans .... www....com..... Primary market b.... 09994452442 49 .. w w w a..ja Ans ..........com..... [email protected] .. www..com............... ..... Banking book is exposed to market risk because it is not open to market..com. 09994452442 50 . credit c....... risk.com murugan0501@gmail....... www... Ans .onlyforbankers.com.com..... only 3 ………………………………………………………………………………………………………………………………………………………………… www.... only 1 b.com.. www. only 1 b.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail. www.. iib ........ [email protected] iib a.. b...... default b.........jaiibcaiibmocktest...www. [email protected] . Select the correct sentence.. Banking book is not exposed to market risk because it is not open to market........c o m a. only 3 d.jaiibcaiibmocktest.........com. www. both 4 and 5 ca liquidity market operational credit or default interest m Which of the following risks the banking book is NOT exposed to? w Ans .... both a and b Ans ....com.....d ... 09994452442 ………………………………………………………………………………………………………………………………………………………………… st ... 1. market d..... interest a.. only 2 c.. d.onlyforbankers...d ..com.... market 2......... Banking book is exposed to market risk because it is open to market..bankpromotionexams. Banking book is not exposed to market risk because it is open to market.... w w Off balance sheet exposures is not exposed to .... liquidity 3..com...... c...... credit or default 4. operational 5. oc k te a...... ......c .... Funding risk..... liquidity d... call risk d........ liquidity d....... market Funding of long term assets by short term liabilities creates ... time risk and call risk are the types of ....................... reputation Ans ...onlyforbankers. ca Ans . a....... operational oc k Ans . credit c. ………………………………………………………………………………………………………………………………………………………………… www......www................. www... te a...com... both 2 and 4 d.............. risk. interest w Ans .. market b.................onlyforbankers....ja iib a.com.....c ..c ...com.. time risk c... funding risk b. risk.c ................... admin@jaiibcaiibmocktest...... 09994452442 51 .d ...com.com...bankpromotionexams...... none of these st .jaiibcaiibmocktest. www... www..c o Ans ......jaiibcaiibmocktest. iib m When a bank is unable to undertake profitable business opportunities when it arises... operational c.. w w The risk of settlement that arises due to time zone differences is known as ... risk occurs............. a.. herstatt d.....com......... . .. market b.. credit c..............com..com [email protected] Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail...... www. credit b...com....... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m c... [email protected]....... ........bankpromotionexams............com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail. England c.. maturity d.... www.com.... counterparty b..... Rewards of proper management of operational risks are a..www.jaiibcaiibmocktest...... admin@jaiibcaiibmocktest.......... all of these ca What are the parameters on which assets of a bank are classified? . www....com..d . w w w a.c o a... admin@jaiibcaiibmocktest. India iib m Ans ............... te Banks of which countries were permitted an extended period to be in confirmation to 1988 Basel Accord which were enforced a law by G-10 countries in 1992? oc k a....onlyforbankers... iib a.ja Ans .....jaiibcaiibmocktest.. 3 b.......com..... 80s d.d .... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Deregulation started in India in ....com.......... 5 d....... Bank assets are grouped under ......c ......... Japan d...bankpromotionexams.com... categories according to the credit risk they carry.............com......... 60s b... www.c ... st .com murugan0501@gmail..... 70s c. Lesser risk capital ………………………………………………………………………………………………………………………………………………………………… www. collateral c.... 4 c........... 90s Ans .com........ 09994452442 52 .. www...com...onlyforbankers......... American b... 7 Ans . ..a ...... www....com... quarterly Ans ... and (c) d. a.... admin@jaiibcaiibmocktest........ 20 d... banks were required to hold capital equal to .com.. 0 b. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m b........ 50 iib Bank debts are categorized at ..............com...c o Which of the following is true a...% risks.. 8 c.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected] a.... admin@jaiibcaiibmocktest.. w Ans ......com....... 10 c....... monthly c. a.... Cost reductions in operations c...bankpromotionexams. weekly b.... All of them b....com......... None of them c.....com murugan0501@gmail.% of the risk weighted value of assets...... www.d ... 9 d...jaiibcaiibmocktest..... basis..... www....... fortnightly d.. ………………………………………………………………………………………………………………………………………………………………… www..onlyforbankers..... ca Ans ... www...b ....com....... This requirement is still the same according to Basel II accord...jaiibcaiibmocktest....c ...... 13 ........ a.www......bankpromotionexams........ Competitive edge st ....... oc k According to 1988 Basel accord. and (b) te Ans ...onlyforbankers..com. 7 b... w w The country risk classification is updated and published by ECGC on .......... iib m a. 09994452442 53 .. st ... the sponsoring bank refers the proposal to EXIM bank for value not exceeding .......d ..bankpromotionexams........ the bank adds its confirmation to a foreign LC).... 150 crore d...... Restricted LC c. transfer guarantee d.......b ...... 15 years ... export finance guarantee c. What type of LC will be opened? iib Ans .......... w w w To approve finance against exports on deferred payment basis. admin@jaiibcaiibmocktest. 100 crore c... m a... 12 months..... up to a maximum period of ... Confirmed LC b...... 6 months.. Transferable LC ca Exchange Fluctuation Risk Cover Scheme is valid for a period beyond ... oc k The beneficiary of an LC insists that another bank should give guarantee for payment to the opening bank.onlyforbankers... Standby LC d....onlyforbankers.... 12 months. 200 crore Ans ..... www..jaiibcaiibmocktest....com...a .....ja Ans .com......... a.. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m When a bank in India binds itself to honor the drafts drawn by the beneficiary of the LC without recourse to it (i..c o a............. www..com.. 09994452442 54 ......... 3 years c....... 50 crore b.......com murugan0501@gmail....com.........bankpromotionexams.com..com...www. iib a. this guarantee is known as .c . packing credit insurance b............. [email protected]....... 15 months..com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail.... exchange fluctuation risk cover scheme te Ans ...jaiibcaiibmocktest.......... ………………………………………………………………………………………………………………………………………………………………… www. 12 years d. 1 year b.... www....com............ www... .....d . etc are known as ...bankpromotionexams...jaiibcaiibmocktest.....c o a.a ........b .. The same would be done at . Forward rate Ans .......... EVDLP (Export Vendor Development Lending Program) d.b ........ both a and b d........com...... st ..com.... TT selling rate c..... none of these iib a.. admin@jaiibcaiibmocktest..... ECS d...........com... EMF (Export Marketing Fund) b.........www.. a. iib Ans ..com........ Market price b..... turnkey projects b.... admin@jaiibcaiibmocktest.. must be crystallized into rupee liability......... www...com.. civil construction.com murugan0501@gmail. PLI (Product Liability Insurance) c..onlyforbankers...... 09994452442 55 ........ ...com. m a.. ………………………………………………………………………………………………………………………………………………………………… www.... oc k The projects which involve supply of equipment along with related services like design..... construction projects c. ABA ca If Mr Alex wants to send money to his brother Robin in US in Federal Reserve bank through FEDWIRE..ja Ans . www.......... None of these te Ans .. www....... RTGS c.....onlyforbankers.................... www.. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Registered Indian exporters who endeavour to export to OECD countries are eligible for support from EXIM bank under . w w w Export bills drawn in foreign currency. TT buying rate d..jaiibcaiibmocktest..... detailed engineering.... banks use a code / number known as ..... Swift b..com..bankpromotionexams.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected]. purchased/ Discounted/ negotiated.... ......... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m India switched to a floating exchange rate regime in . a. 100000.... 1000 b. Foreign banks d... Forex Brokers iib Which of the following is not a participant of foreign exchange markets participants? iib Ans ..com........ www........com.. 5000... 1 year d. 1973 b.... 2000 d............... www...c o a....... Central Banks b.c . st .. Statement showing balances in nostro and vostro accounts are submitted to the RBI in ....... 1000.. 15 months te Ans ....c .......com...........bankpromotionexams..... R Return ………………………………………………………………………………………………………………………………………………………………… www.com. 3 months b....... form..... 1993 d. w w w a.... www..com......... 5000 Ans .com. [email protected] murugan0501@gmail..... Commercial Banks c..... 1977 c...com........ www..com...jaiibcaiibmocktest....... 10000..ja RBI may impose a penalty of Rs ... for contravention of any direction under FEMA u/s 11(3) of FEMA 199This penalty is extended up to Rs ........onlyforbankers............com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail. ca a...bankpromotionexams..... oc k a....onlyforbankers....c . admin@jaiibcaiibmocktest.. ......jaiibcaiibmocktest...c ...... m Ans .. 2000 c... per day in case of continuing contravention. 6 months c..www. 09994452442 56 ........... 1997 The validity period of packing credit insurance is . ............ which are among them? (i) Capital adequacy. 1.. ………………………………………………………………………………………………………………………………………………………………… www. www.com. (i)..d ... www. BAL Statement c..bankpromotionexams.bankpromotionexams. oc k te a.. www.. Interest rate risk 3. 4 and 5 only Ans . 4 Ans .. BES Ans ..com.....www..com murugan0501@gmail. 2..................... 09994452442 57 .. Operational risk a...... 1 b...com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected] .. 2 c. (ii) and (iii) iib Ans .. (ii) Information system.... Only (i) and (iii) c.........ja 1.onlyforbankers.. A branch sanctions Rs 1 crore loan to a borrower.com... Only (i) and (ii) b.c o m b....... Liquidity risk 2.onlyforbankers..... [email protected] . admin@jaiibcaiibmocktest..... 3 d.... 4 and 5 only d.....com.......com.........com.... Buyers' credit or suppliers' credit for ....b .... m ALM system is built on three pillars..com....... years or above come under the category of ECB..... (iii) organization ca iib a.. www...... 1... Only (ii) and (iii) d.. Market risk 4................... which of the following risks the branch is taking? w w w .jaiibcaiibmocktest........ 09994452442 ………………………………………………………………………………………………………………………………………………………………… st .......com. Credit risk 5.. 2 and 3 only c.... 1..... XOS d..jaiibcaiibmocktest.... All of them b.. ..C ....com.... the market price of the security will be? m a......... 120 b... By applying the same formula... Market Risk c..... admin@jaiibcaiibmocktest. 140 iib Ans – b ca Explanation : Current Yield = Coupon Rate x 100/CMP Current Yield = 12 x 100/120 = 10% ...ja iib Now.a .. [email protected] c. 09994452442 ………………………………………………………………………………………………………………………………………………………………… st ....jaiibcaiibmocktest...www......... 09994452442 58 ..... ………………………………………………………………………………………………………………………………………………………………… www. we get : 9 = 12 x 100/CMP CMP = 1200/9 = 133...bankpromotionexams.. 109 d.....c o m Asset in doubtful category for 4 years – Rs.jaiibcaiibmocktest... oc k 12% government of India security is quoted at RS 120.. Operational Risk Ans .com..........com.3 . 500000/Realization value of security – Rs....... Rs.........com....com.. Credit Risk b...com.........bankpromotionexams. If interest rates go down by 1%.. www..... Rs.... 290000/c... 133.com.. 150000/- te Ans ...... w w w Which of the following risk is managed at Portfolio level? a.. Rs.........onlyforbankers. Liquidity Risk d... 500000/b... www.. Rs. www..com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected]. Interest rate goes down by 1% (That is 9%). 180000/d...com [email protected]. 300000/What will be the provision requirement? a.... www. .....com........ none of these ..... third day from today d....a .....jaiibcaiibmocktest. 09994452442 59 .. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Short term funds flow have maturity ..c o a..... www... w w w Rupee is convertible on current account as well as capital account owing to the relaxations allowed by RBI in the area of .www..com... ODI a.............. ECB 3. 1..... iib ca a..onlyforbankers........com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail... www... Automatic reinvestment in another bond on maturity d........... admin@jaiibcaiibmocktest... The exchange rates for forward sale or forward purchase are quoted . FDI 2..com....... both 3 and 1 d...................com.... none of these Ans ...bankpromotionexams... more than 6 months but less than 1 year b...... Absence of coupon iib m Ans . oc k a..jaiibcaiibmocktest.... Option to convert the bond in to equity on a fixed date or during a fixed period and the price is predetermined c. both 1 and 2 b...... Conversion of physical bonds into demat form b. www... ………………………………………………………………………………………………………………………………………………………………… www...............com murugan0501@gmail... less than 1 year c.d .com........com. all of these Ans . st .....b .. tomorrow c.onlyforbankers.bankpromotionexams.ja Ans . te The salient feature of convertible bond is ... www.................. both 2 and 3 c...com.. more than 1 year but less than 2 years d.............b .... [email protected]... today b....... . agent of issuing bank and authenticates LC 4) confirming bank d. www.onlyforbankers. Only (i) and (iii) c....... Market Risk 3.... Match the correct pair.2 and 4 c.onlyforbankers........... Only (i) and (ii) b... 09994452442 60 ... sellers bank or nominated by the opening bank 3) advising bank c. (i)......jaiibcaiibmocktest..bankpromotionexams.com.... st .. iib Change in interest rates will not affect ...... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Counter party Risk is a type of ....2 and 3 Ans . Interest Rate Risk b... oc k 1.....com....... 1..com.....c .....com.com murugan0501@gmail. (iii) Staff expenses w ...jaiibcaiibmocktest... (i) Net interest income........b . Credit Risk d............ Operational risk 4.. 1) buyers / importers / applicant a. on whose behalf LC is opened 2) negotiating bank b...www..com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail....... Only (ii) and (iii) d.. www...c . Operational Risk Ans .. All of them b. www.. Defined capital component te 1988 Capital Accord framework accounted for m Which of the following is true? ca iib a.com...3 and 4 d. www.... (ii) and (iii) w w Ans .. 1...... Credit risk 2... 1.... [email protected] a.. (ii) Other income...bankpromotionexams. [email protected] o a. pay on behalf of issuing bank ………………………………………………………………………………………………………………………………………………………………… www......... Market Risk c......... com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail............com..com.......onlyforbankers...........bankpromotionexams......d ..com.... Switzerland Ans ...bankpromotionexams. None of these ………………………………………………………………………………………………………………………………………………………………… www.c o m a... Credit risk b. Compare model results and actual performance c.b ...jaiibcaiibmocktest.......com [email protected]....... 1 ... te Back testing is done to iib Ans . admin@jaiibcaiibmocktest. Human error creates .www...com.D d........b ............. 09994452442 ………………………………………………………………………………………………………………………………………………………………… st .. www... All are correct pairs Ans ....ja a. admin@jaiibcaiibmocktest. Operational risk c... None of the above ca iib a...com... risk.... www..com.... New York b.. 2 .B b.. Paris c... w w w ... a.. Simply here and there c..........com..b .. oc k a.jaiibcaiibmocktest..... System risk m Ans ... www...... so that no gain or loss of interest accrues to either party is called ......com... 09994452442 61 ...C c. Test a model b....... Valuer Compense b...... The International Chamber of Commerce (ICC)was established in 1919 headquartered at ..... www......... The payments made in same day...... Market risk d. Brussels d...... Record performance d....... 3 . Either of a or b d............... Communication Risk is a type of .. w w VaR is not enough to assess market risk of a portfolio. www.com murugan0501@gmail... 09994452442 62 ..... It helps as an additional risk measure c....com.. www.. Credit Risk d.com..com. RBI c. It helps in calibrating VaR module b.... admin@jaiibcaiibmocktest...... Credit Risk d................a .....bankpromotionexams................com..jaiibcaiibmocktest.... ECGC oc k Ans .. Interest Rate Risk b......onlyforbankers.... Stress testing is desirable because a....com.jaiibcaiibmocktest.... m a..com.. EXIM bank b... It is used as VaR measure is not accurate enough Ans .........a ..................com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail..... Operational Risk w Ans . Market Risk c.com.... . admin@jaiibcaiibmocktest.... Operational Risk Basis Risks are type of ... Interest Rate Risk b.. www... Who manages Export Marketing Fund in India? te a....... iib ca Ans ........... Market Risk c.... ………………………………………………………………………………………………………………………………………………………………… www........www.d ..........onlyforbankers...............ja iib a.c ..c o m Ans ............... www.....c ...bankpromotionexams....... GOI d....... It helps in assessing risk due to abnormal movement of market parameters d.........................com... 09994452442 ………………………………………………………………………………………………………………………………………………………………… st ..... ...... From Saturday to Thursday (but function on Saturday and Sunday with restrictions) m Middle East or other Islamic Countries... From Monday to Saturday but are closed on Friday c. funding risk b... ....... www.......com... www.........onlyforbankers..com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail.......... .. i. te The NDD of the usance bill (foreign currency export bill) is . interest iib Ans ..... Forex markets usually operate . market b...com. days.....bankpromotionexams.... admin@jaiibcaiibmocktest.. liquidity d.d . market d..ja When assets are sold before their stated maturities.. usance period + 21 days NTP c........ risk arises.......... st .... 21 b..com murugan0501@gmail............com.........jaiibcaiibmocktest.........com.com...... 25 d.com... .. w w w a................... m oc k a. a............d .... risk occurs.......c o a... non receipt of expected cash inflow arises ... ca a. 09994452442 ………………………………………………………………………………………………………………………………………………………………… Ans .d . Turning of performing assets into NPA.onlyforbankers......d .jaiibcaiibmocktest.... credit c...... price b. www.e... From Monday to Sunday d..... iib When banks have more earning assets than paying liabilities............ 09994452442 63 . liquidity c. usance period + 25 days NTP Ans .. admin@jaiibcaiibmocktest. From Monday to Friday b.com.com..www..bankpromotionexams......... time risk ………………………………………………………………………………………………………………………………………………………………… www. www.... both a and c Ans ... www.....com... 21.. 25..04. call risk d. (i) With standard size..... market risk st . 30..b .. admin@jaiibcaiibmocktest. oc k te a..... ....04.......jaiibcaiibmocktest..com... (date).. risk.....com.......2015. 09994452442 64 ... 30...bankpromotionexams..........................04.. www. 360 d...www. Currency futures are forward contracts . Changing of interest rate of different assets.. 180 c...... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m c....c o Ans ...com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected] .ja Specific shipment short term policy cover against commercial and political risks involved in export of goods on short term credit not exceeding . liabilities and off-balance sheet items in different magnitude is termed as . basis c........2015 iib Ans ..2015 c.. Only (i) and (ii) b.com.b . Only (i) and (iii) ………………………………………………………………………………………………………………………………………………………………… www...........2015 b...... 25.....com.bankpromotionexams...........onlyforbankers.. m Suppose a sight bill is drawn in USD and is submitted to the bank on 01.... 21..... yield curve d... 120 b... (iii) Traded on the exchange a.. admin@jaiibcaiibmocktest..... www...b . gap b..... (ii) With standard maturity date. www...com......com [email protected]. 365 Ans .... w w w a....... 28..... 28. days. the NTP allowed will be __ days and NDD will be ..2015 d.jaiibcaiibmocktest..... embedded option Ans . ca iib a........ ...com murugan0501@gmail.. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m c. for credit and operational risk 10000 for market risk 4000 te Case study for calculation of capital for market risk m Based on the data given above.. 09994452442 65 ........ Capital fund ? a) 895 b) 1250 c) 1410 ………………………………………………………………………………………………………………………………………………………………… www......com..... [email protected]....... .... of 300 p n c p share 400 subordinate debt 300 r....onlyforbankers. [email protected]. Only (ii) and (iii) d. www..w.a. (i).... answer the following questions.... www......... www..com.....com..c o Ans ................. iib Tier-1 capital ? ca a) 900 b) 800 c) 750 d) 610 iib Ans – b .....jaiibcaiibmocktest.....onlyforbankers...... (ii) and (iii) st ..com..bankpromotionexams... www....com.. 300 prov and conti res 200 reveluation of res.www.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected] Tier-2 capital ? w w w a) 900 b) 800 c) 750 d) 610 Ans – d .....com........ oc k Bank has paid up capital 100 free res....com......com....d ........... .. and (c) d..com....... www............ and (b) Ans .. Competitive edge w w Which of the following is true a....... 09994452442 66 ....... [email protected] % Ans – d m CAR = T1+T2/RWA ...............com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail.. Cost reductions in operations c..com...bankpromotionexams..... All of them b........... www......com......www..... [email protected]... ...... iib Minimum capital to support credit and opr..com....onlyforbankers. a............. a....... ………………………………………………………………………………………………………………………………………………………………… www..a ...... None of them c........... Lesser risk capital b.......jaiibcaiibmocktest.com...c o Ans – c hint : Formula : Tier 1 + Tier 2 .. risk ? ca a) 900 b) 950 c) 1000 d) 1250 iib Ans – a . 09994452442 ………………………………………………………………………………………………………………………………………………………………… m d) 1575 st ................ Capital adequacy ratio ? oc k te a) 9 % b) 9........ www... www..onlyforbankers..ja Rewards of proper management of operational risks are w a.75 % c) 10...50 % d) 10.com.com..jaiibcaiibmocktest.....bankpromotionexams..com murugan0501@gmail.......... jaiibcaiibmocktest....c o a.....com.... risk...... Bid-Ask Spread d..com......Category II c...... 09994452442 67 ... w w w The seller of goods shipped the goods on time but due to some mistake....... Liquidity Ans .....com [email protected] III d.....com............... Such risk to the buyer is called a. Exchange Margin c.. [email protected]........... st ..... oc k a...c ...com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected] I b.c .........com........... Authorised Person ....d .............. te The gap between the buying rate and selling rate of a currency is called as . Credit d...ja Ans .com....bankpromotionexams....... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m The risk arising owing to non-enforceability of contract against a counter party is the .... Dealer's Margin b..Category IV ....jaiibcaiibmocktest..... Authorised Person . www.. Seller Risk b....... www..com. admin@jaiibcaiibmocktest. www.. Authorised Person .a . Market Risk d............com... ………………………………………………………………………………………………………………………………………………………………… www...onlyforbankers.......bankpromotionexams...... Shipping Risk Ans . iib Entities which are authorised only to buy foreign currency notes and traveller's cheques are known as …… iib ca a... the goods have been delivered at some other destination.onlyforbankers. Legal b. Authorised Person ......... None of the above m Ans ........ Systematic c.com......... www.......... Buyer risk c.... 1971 b........ [email protected] Less Forward Discount 1M (0. On 15th June.c w w Solution : ans: Bill Buying Rate (Ready) : Bill Date +20 days Spot Rate = 35...com..com. Exchange Margin ............com. (ii) cash inflow and outflow.2500) = 35....com.........20 days.. Transit period is 20 days and Exchange margin is 0..com.. 33.0.6000-....1971 c.15% of 35..bankpromotionexams. (i).........ja iib a.... Only (ii) and (iii) d. te Liquidity risk is reflected as ..com....1971 ca Spot Rate . st .... ... 36.......... 34.. (iii) NPAs.529) i...... ………………………………………………………………………………………………………………………………………………………………… www.....com.15%.. 09994452442 68 .15%..www..... The spot rate is 34. www...bankpromotionexams..1971 d.jaiibcaiibmocktest.... (ii) and (iii) iib m Ans .3500) Less Exchange Margin 0..1971 . Only (i) and (ii) b...com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail... Customer presented a sight bill for USD 100000 for Purchase under LC.. (i) Maturity mismatch. total assets and performing loans oc k a.....com... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Operations in forex carried to cover the risk of fluctuations in forex rates is called as . [email protected] ...... Arbitration c.0529(0...3500-.com [email protected] o a.jaiibcaiibmocktest.... Swap d.. Find Bill Buying Rate w Ans . Only (i) and (iii) c..onlyforbankers...... 35..15% (0.... 35.6000/6500 Forward 1M=3500/3000 2M=5500/3000 3M=8500/8000 Transit Period .. www.80/90. Speculation Ans ... www.e.. www...a ..onlyforbankers.....35..... Hedging b... bankpromotionexams..ja Inflow of USD 200.. What rate you will take to quote to the customer.21-Bank commission c.. Value iib Ans .37 How much amount will be credited to the account of the Exporter? Ans . www.0988 d...15 Less Exchange Margin O..b oc k =34..1..... admin@jaiibcaiibmocktest. if the market is 55... 55. www..... 28....... 09994452442 ………………………………………………………………………………………………………………………………………………………………… st .com.............40/1..21/25? a...com.00 by TT for credit to your exporter's account........ ca a.0512 te Solution : iib All rates quoted in foreign exchange are generally ____ rates. 44... 40...65/....onlyforbankers..onlyforbankers.... www..jaiibcaiibmocktest. ………………………………………………………………………………………………………………………………………………………………… www....com.. 09994452442 69 .80-0.com.....com [email protected] d..65 = 34.. [email protected] b..00/. www...60-0.. 34.80 Less discount .jaiibcaiibmocktest...1...www.. Forward d..com.com.25.com. . being advance payment for exports (credit received in Nostro statement received from New York correspondent)... 55.. 55.....97 Sep ..0988 b.0512 =34..57 Aug ....com..... Spot b.. w w w ......0988 m Forward differentials: July .0988 .15% i..e.....Bank commission b Explanation : It will be purchase of USD from customer for which USD will have to be sold in the market.. Tom c.a .....bankpromotionexams. Spot Rate = 34... 55..c o a.. m Bill Buying rate will be applied.0988 c.000.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail. ..25... Confirmed LC b. RBI b...... It's at the discretion of the beneficiary d..21.. NZD b.com....com.. w ....... 55... It is called ...com... FEDAI w w Ans .... as applicable... We shall have to quote rate to the customer on the basis of market buying rate.com.21/25.com....21 and sells at Rs 55.. Transferable LC Ans ... Such LC is not valid as it gives rise to higher risk ………………………………………………………………………………………………………………………………………………………………… www.................. meaning that market buys USD at Rs 55..jaiibcaiibmocktest........ 09994452442 70 .bankpromotionexams........... ........... a..c o m Say when USD/Rs is being quoted as 55... GBP d.... Euro oc k Ans .e..com murugan0501@gmail... No insurance is required b.. less our margin.........com.... USD c... to arrive at the TT Buying Rate applicable for the customer transaction... It should be 110% of CIF c...... [email protected] a........com.....www..................... www..c .jaiibcaiibmocktest.... i... iib The uniform rules for bank to bank reimbursement have been framed by .. admin@jaiibcaiibmocktest........ World bank c. Which of the following currency is not quoted as indirect quote (rate)? te a.. The amount of insurance is not stated in the LC and ....b ..... www......onlyforbankers..... www.onlyforbankers.....c . Red clause LC c. m An LC provides for warehouse storage of good and also pre shipment credit for the beneficiary..... www........bankpromotionexams. 09994452442 ………………………………………………………………………………………………………………………………………………………………… st .com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail...... Green clause LC d. ICC d..com.... ca iib a... ..00 lacs FBP (10 % margin on bill amount) Rs.2014. approaches the bank for granting credit facilities...00 lacs FUBD (15 % margin on bill amount) Rs. [email protected].. adjusts the PCL outstanding and credits the balance to the exporter's account.000..... to UK.00 CF... Interest on PCL recovered separately.. Bank charges interest at . 09994452442 ………………………………………………………………………………………………………………………………………………………………… Ans ..com.com.50 % thereafter.8.00. The USD/INR rates were as under: — 2.com.00..com..c o Right to buy at a fixed price on or before a fixed date in an option is called as ...20.. www...00 lacs..2014 he approaches the bank for releasing PCL against this order of USD 50.b . with shipment to be made by 15.com. st .com...com.85. after recovering interest up to notional due date. value date 27. 100...00 lacs m PCL/FBP/FUBD/FBN oc k A textile exporter.000.www.com - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail. w w w The documents are realized on 29. 50..6. The bank releases the PCL as per terms of sanction. 50... The documents are drawn on 30 days usance (D/A) as per terms of the order The bank discounts the documents at the days applicable rate..15. On 2. for exports of textiles. 09994452442 71 ..2014: Bill Buying 48.. He gets an order for USD 50. after deduction of foreign bank charges of USD 250.jaiibcaiibmocktest.8.. against the order for USD 50. .. www.8. bill Selling 48...92. 300 lacs during the last year and projected sales of Rs..2014. Put Option d.. Overdue interest is charged at 14...50 % upto 90 days and 10. ………………………………………………………………………………………………………………………………………………………………… www. The bank sanctions following facilities in the account: iib Sub limits: ca PCL (25 % margin on fob value) Rs.b ..com [email protected]. 100. m Facebook Groups a.10...6.40. 50.50%..00....2014.....500 lacs for the current year.2014... premium for 30 days was quoted as 04/06 paise....PCL.08.. Rs..... the exporter submits export documents for USD 48. Call Option c.onlyforbankers........ www.9.. — 31.. with estimated export sales of Rs.. and post shipment at 8... [email protected]. Bill selling 48....00 lacs FBN (nil margin) Rs........ www. Future Option te Ans .......dyed/hand printed. Option b..ja iib On 31..2014: TT buying 47..000.onlyforbankers.com. Bill buying 47.00. TT selling 48..10..50 % upto 180 days.bankpromotionexams. The bank adjusts the outstanding post shipment advance allowed against the bill on 31.. 18. www.. considering insurance and freight costs of 12%.com.200.85 (iii) 47.jaiibcaiibmocktest.10.90.e.2014 value date of credit 27.00 @ 48.c o 1.96 ca (i) Rs.000.10. www.98.com [email protected] Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected]) ………………………………………………………………………………………………………………………………………………………………… www. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Now answer the following: st . www.20 = Rs.2014 date of credit to nostro account 29.800.54.com.000 (iii) Rs.20.jaiibcaiibmocktest. Less margin 25% i.9.00 balance Rs 15.bankpromotionexams.720 iib m 3.com.less 12% for insurance and freight cost i. (i) (ii) (iii) (iv) notional due date 25.89 (ii) 47. What is the amount of post shipment advance allowed by the bank under FUBD.10. www.15.onlyforbankers. 19.00 .2014 Ans.000.00 (for value of the order. What exchange rate will the bank apply for purchase of the export bill for USD 48. 19.ja (i) (ii) (iii) (iv) iib 4. 09994452442 72 .bankpromotionexams.10.91 (iv) 47.20. What will be the notional due date of the bill submitted by the exporter: w w w 5.00 tendered by the exporter: oc k (i) 47. 15. 24.000 te 2. 22.com.912 (iv) Rs.200 = Rs.21.800 (iv) Rs.www.10. What is the amount that the bank allows as PCL to the exporter against the given export order. 21.e Rs. 289. 2410000.10.com.10.2014 25. 1: USD 50.com.10.com. will be charged up to. 19.728 (ii) Rs. [email protected] (iii) Rs. (i) Rs.2014 30.52. Total interest on the export bill discounted.600 (ii) Rs. admin@jaiibcaiibmocktest. Rs.2014 .90. for the bill submitted by the exporter: 30.600.2014 date of realisation 30.onlyforbankers.com.2014 27. ..00.. Only (i) and (ii) b.10....e.8. market risk iib a..Bill buying rate on 31. (i) The risks are dynamic... 23... m a... Rs.... (ii) and (iii) Ans – b ………………………………………………………………………………………………………………………………………………………………… www.bankpromotionexams.... www.. 25.e. (i).2014 te Ans 5: Interest is charged up to the date the funds have been credited to the banks nostro account. Only (ii) and (iii) d.. (ii) The composition of assets and liabilities is always changing. call risk d..d ....... i.jaiibcaiibmocktest. funding risk b...47.768.e.3.....00 Ans 4: Bill submitted on 31..ja Ans ...onlyforbankers. 09994452442 73 . 2: 47.e..c o Ans 3: USD 48...com...jaiibcaiibmocktest. In this case a dynamic management of hedge is necessary not because .com...drawn on 30 days DA plus normal transit period of 25 days 31.. time risk c. Only (i) and (iii) c.a ..bankpromotionexams..... Select the correct option...com [email protected] plus 30 days plus 25 days..... less 15% margin on DA bill.... www.. st .com.com.....com.........com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail.. i.56.www..com..onlyforbankers.. admin@jaiibcaiibmocktest..... .00 = Rs 19....000. admin@jaiibcaiibmocktest...... this being a DA bill...96 =Rs...2014 i.080. www.com.com.... 27... www..... total 55 days from 31. oc k Unanticipated withdrawal / non-renewal of deposits in wholesale or retail segment is called .02.. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Ans........2008 . MVE d. 345312.....00 @ 47.89 ..85 plus 4 paise premium for 30 days.... w w w Derivatives can be used to hedge aggregate risks as reflected in the asset-liability mismatches.....8..2014.... NII b. the effective date of credit is the value date of credit... i........ ......... (iii) A close monitoring of hedge is an RBI requirement a.8...2014...10. NIM c.. all are correct ca Interest Rate Risk refers to potential adverse impact on . iib Ans . ................... st .... (ii) and (iii) m Ans .... over night b.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected]. two days c...... ca a.. www. different maturity dates ………………………………………………………………………………………………………………………………………………………………… www. 14 days iib Ans .ja Term money refers to placement of funds for period not exceeding ..... www... Only (ii) and (iii) d... 01 yr b.. admin@jaiibcaiibmocktest.... (i)..com........c o a..... ISDA d.. IFEMA b...jaiibcaiibmocktest. 7 days d.com. w w w a.. Unexpected changes in the level of market interest rates due to ..... A stamped agreement devised by respective banks Ans .com murugan0501@gmail........ a...........d ... 03 yr d.......... .... Only (i) and (ii) b.onlyforbankers.......jaiibcaiibmocktest..............com..... iib Notice money refers to placement of funds for period not exceeding .....com......com....... (iii) EUR oc k a.. (ii) Rupee...c ....com... [email protected]... ICON c. www.... creates gap or mismatch risk......b ... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m The participants in the derivatives market generally exchange the following agreement .....a ....... www. 05 yr Ans . 09994452442 74 .. 02 yr c......com.www... different principal amounts b.......... Only (i) and (iii) c.. te Which of the following are free currency in the foreign exchange market? (i) USD.onlyforbankers..... 8.... LORO d...........c o Ans .a .bankpromotionexams.onlyforbankers.com.jaiibcaiibmocktest.. [email protected] [email protected] Capital charge for equity ..com..1200 Capital charge for general market risk net position ... 15% b.......... NOSTRO b...450 Gross income for 2nd year before previous year . 18% c.. 12% d....com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected] Total capital charge for options ...15 Horizontal adjustment .com...390 ………………………………………………………………………………………………………………………………………………………………… www......com.... [email protected] ........ "Our account is with you" refers to ...... www... all are correct st ...... VOSTRO c..... None of the above m What is the beta factor for corporate finance under Standardised approach? iib A bank has compiled following data for computing its CRAR as on 30 Sep 2014 w w w .70 Gross income for the previous year .450 Capital charge for specific risk .......700 Total eligible financial collaterals available for retail assets . 09994452442 ………………………………………………………………………………………………………………………………………………………………… m c. www....jaiibcaiibmocktest...150 Vertical adjustment ..com..bankpromotionexams....... ca Ans ..ja Tier I capital 2500 Tier ii capital 2000 RWA for credit risk other than retail assets (include 2000 crores of commercial real estate ....com.... te a. account.... different repricing dates d..35... Mirror oc k Ans ......495 Gross income for the year before previous year .. iib a..... www.....www. www..... 09994452442 75 ..500 Exposure on retail assets ....b ...onlyforbankers.com. 4383 Crores c....bankpromotionexams.ja iib = 450+190+15+10+150+70 = 885/...jaiibcaiibmocktest. 9553 Crores c. 4944 Crores b..... 09994452442 ………………………………………………………………………………………………………………………………………………………………… Based on the data given above. [email protected] =4944 ………………………………………………………………………………………………………………………………………………………………… www......com. 09994452442 76 ...... Rs. Total Risk weighted assets for market risk is ...onlyforbankers.. w w w Total weighted assets for operational risk is …… a.........com murugan0501@gmail........ 3701 Crores d.... answer the following questions.com........ Rs. st .09 = 9833 Crores ..... www.com. Rs. admin@jaiibcaiibmocktest. 9553 Crores d. 7156 Crores ca Ans .jaiibcaiibmocktest....www. Rs...... www. Rs. Rs. 8952 Crores d..com.. The capital required for credit risk at minimum required rate as per RBI is ... Rs.bankpromotionexams... Rs.... 3508 Crores m Facebook Groups Ans .onlyforbankers.... www..c oc k te = 8700-1200=7500 @ 75% =5625 35500+5625=41125 9%= 3701 Crs .. 9833 Crores b.. 4585 Crores b.com - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected]. Rs..com..... 7156 Crores Ans ...com.a Total Risk weighted assets for market risk ... Rs.c o a..... Rs. iib m a... 4323 Crores c. www.a 1335/3 =885/. Rs. com.. (i).......c .... w w w In a rising interest rate scenario... [email protected]. www..... www... (ii) and (iii) Ans .. Tier I capital adequacy ratio should be atleast 6 %) RWA is 55902 6 % of 55902 = 55902 x 6/100 = 3354.. ...... which of them following are least preferred? (i) Deposits with fixed rates and advances with fixed rates....com. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m The CRAR of the bank as on 30th Sept 2013 is …… st .. 10... Tier I capital is 2500...22 % d. 09994452442 77 .ja iib ca (As per RBI.....b .. ………………………………………………………………………………………………………………………………………………………………… www..bankpromotionexams.... Its tier I CRAR is more and exceeds requirement by 675 Crs b....35 % b.. 9.....com.com....049 .... 3354-2500=854 Tier I capital will be short fall by Rs.com. www.. Its tier I CRAR falls short by Rs 854 Crs d....com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail.... So..........onlyforbankers.c o a.......com... (iii) Deposits with floating rates and advances with fixed rates a.. Only (i) and (iii) c.23 % Ans .......www...b oc k te 41125+9833+4944 = 55902 4500/55902 = 8. The bank compares its tier I CRAR with minimum require tier I CRAR and finds iib m a....com.com.... Only (i) and (ii) b.. www.. 7..jaiibcaiibmocktest.... (ii) Advances with floating rate of interest and Deposits with fixed rate of interest...05 % c.. Its tier I CRAR is more and exceeds requirement by 355 Crs c....... admin@jaiibcaiibmocktest....... None of these Ans .... Only (ii) and (iii) d.bankpromotionexams.onlyforbankers.... 8. 854 Crores......com murugan0501@gmail..... ......c o a. iib ca a. Both a and b Ans .....com.. Futures c......com [email protected]...... Capital d.... packing credit insurance b.c ... www.com.com. admin@jaiibcaiibmocktest. Floating c......jaiibcaiibmocktest.. rates mechanism.... www... www...com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail........ scheme is available for payments specified in foreign currency (US dollar. exchange fluctuation risk cover scheme iib m Ans ...... Entering into Forward Contracts b...........com...ja Ans ..... All borrowings c.d ..... admin@jaiibcaiibmocktest.. Banking books does not include which of the following................ Both a and b d.. Forex Risk can be reduced by w w w a............com. Derivatives of Interest Rate Swaps d...com.......b . Fixed b.... Higher the risk-higher would be risk premium ………………………………………………………………………………………………………………………………………………………………… www.........bankpromotionexams. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m The value of the currency is decided by supply and demand factors for a particular currency in ........www... www...........d ....... a... All of these ... None of these te Ans ...jaiibcaiibmocktest...... st . oc k ... export finance gurantee c... Which of the following statements is correct? a.. etc).... Pound Sterling.bankpromotionexams. Euro .. All deposit and loans b.. 09994452442 78 .....com.com.... transfer gurantee d... .. Which of the following risk is managed at Unit level? Ans ...... all of these Ans ...... volatility c....com murugan0501@gmail...... if Time horizon is more...... None of these Ans .c o m b...b ...com.. More b......com..com........ iib Which method of risk measurement uses deviation of a target variable due to unit movement of a single market parameter (like change in interest rate or exchange rate or stock prices)? w w w ... www... [email protected] Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail........ volatility c.jaiibcaiibmocktest... oc k te a..... www. downside potential ………………………………………………………………………………………………………………………………………………………………… www...a .......ja a..com.....com....... Operational Risk c.onlyforbankers......www.... Which method of risk measurement combines sensitivity of target variables with the stability or instability of underlying parameters (like earnings or market value)? a. Higher the risk-lower would be risk premium c............... 09994452442 79 ................com....jaiibcaiibmocktest....com. sensitivity b........ downside potential d...... www..onlyforbankers....a . Lower the risk-higher would be risk premium d. Interest Rate Risk b..... 09994452442 ………………………………………………………………………………………………………………………………………………………………… st .. Liquidity Risk d. sensitivity b..... None of the statements is correct Ans . admin@jaiibcaiibmocktest........ Less c.bankpromotionexams......com...... None of these ca iib a... m Volatility will be . www.....a .. Equal d.. .......... Tier I capital adequacy ratio should be atleast 6 %) RWA is 55902 6 % of 55902 = 55902 x 6/100 = 3354. www.c o Ans .com.www. Volatility over a time horizon 'T' is calculated as follows: w w w a. 854 Crores... 3354-2500=854 Tier I capital will be short fall by Rs.......... www....... None of these oc k Ans . 09994452442 ………………………………………………………………………………………………………………………………………………………………… m d..... .jaiibcaiibmocktest..............com.onlyforbankers. upside potential d.... 8...com...jaiibcaiibmocktest.com murugan0501@gmail........... .....b . Its tier I CRAR is more and exceeds requirement by 675 Crs b..5%.. Volatility over a time horizon T = v Daily Volatility * T c..22 ………………………………………………………………………………………………………………………………………………………………… www.c te The bank compares its tier I CRAR with minimum require tier I CRAR And finds iib m (As per RBI. implicit volatility c... If daily volatility of a stock is 1.. Tier I capital is 2500. a......a ...... iib a...... admin@jaiibcaiibmocktest........ none of these ca Black and Scholes option pricing formula is used to calculate . [email protected] .. www.......ja Ans ....bankpromotionexams.............bankpromotionexams..com.... none of these st .......... sensitivity b... Its tier I CRAR is more and exceeds requirement by 355 Crs c......com. Volatility over a time horizon T = v Daily Volatility * vT Ans . 09994452442 80 .............. So..com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected].... www.. Volatility over a time horizon T = Daily Volatility * vT b.. Volatility over a time horizon T = Daily Volatility * T d...........com.. what would be its monthly volatility? a... Its tier I CRAR falls short by Rs 854 Crs d.com.... com. 4...Category I b...... none of these Ans .. m Currently RBI has extended fixed rate Repo of ___ days to improve liquidty of banks.onlyforbankers... 4..00 Cr... on the same day b. What is the annual projected turnover of the unit? w w w .....jaiibcaiibmocktest...... 2. www...... iib An SSI unit has been sanctioned Working Capital limit of Rs.com. admin@jaiibcaiibmocktest. www.c o m b.com. 30 b............. 09994452442 ………………………………………………………………………………………………………………………………………………………………… st .. Rs...... Authorised Person .60 Lac.. In the call money (a money market instrument)..www..... a............. 120 Ans ......a .. 09994452442 81 ...b . Authorised Person ..com.00 Cr. 3. d..74 d.. Ans ....com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail. www.... 5............com..bankpromotionexams.jaiibcaiibmocktest.. Entities which are authorised only to buy foreign currency notes and traveller's cheques are known as . Rs........ 90 d.......40 Cr... on the next working day c..... oc k te a....com [email protected] III ………………………………………………………………………………………………………………………………………………………………… www..........c .............00 Cr.... Rs.......b ... 60 c... Authorised Person .....Category II c...... c. within a year Ans ...50 c.bankpromotionexams....ja a.... Rs....... within a fortnight d...onlyforbankers. admin@jaiibcaiibmocktest. ca iib a.... 36. www.com. b.com... funds borrowed by banks need to be repaid .....com... ......www. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m d.com.......... Operational b...b ...... ………………………………………………………………………………………………………………………………………………………………… www... 15 days b........ Aug 2003 b.. 30 days c. Authorised Person ...com.....com. ca Ans ............. w w How forward rates are calculated? a... risk.com................. admin@jaiibcaiibmocktest.... By adding premium or discount to spot rates c.................c o Ans ....... te a.....com [email protected]...... Market c.....d ... 09994452442 82 .c ........c ......com........ Oct 2004 c.... Legal w Ans . Settlement d........... [email protected].. By deducting premium or discount from spot rates d... By adding premium to and deducting discount from spot rates Ans ...........ja iib a....jaiibcaiibmocktest.. RTGS has been fully activated by RBI from . Oct 2003 d............d ..onlyforbankers.....jaiibcaiibmocktest...com.... www...com.. 45 days d..............bankpromotionexams.............Category IV st ...... www. www.. By adding a mark up to spot rates b.....onlyforbankers.... iib m What is the maximum time period for crystallisation period? a... .... 60 days Failure of the counter party during the course of the settlement (due to time zone differences between the two currencies to be exchanged is the .com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail. www. Aug 2004 oc k Ans . .onlyforbankers.....com....... On the expiry of five banking days d. On the 10th day from the receipt of documents at the counters of the bank c...com...jaiibcaiibmocktest..c ... .. 09994452442 ………………………………………………………………………………………………………………………………………………………………… st ....4 × suare root of 25 = 0...4% c....4 × 5 =2% In worst case scenario yield will always increase.com [email protected].... www...c o a... te Systemic risk is the risk of oc k a.... So one day Var is.jaiibcaiibmocktest. www...com...bankpromotionexams. 4 = one day VaR × square root of 100 4 = one day VaR × 10 One day VaR = 0...... Failure of a bank...com... Ans ..4% b.. Failure of two banks simultaneously due to bankruptcy of one bank c.....bankpromotionexams.........c ..com.....com..www... ………………………………………………………………………………………………………………………………………………………………… www.................. Failure of entire banking system d... admin@jaiibcaiibmocktest..... www.4 % 25 day VaR = 0...... Increase in yield by 0...onlyforbankers.. Where a group of banks fail due to contagion effect m Ans .... .. admin@jaiibcaiibmocktest... What is the worst case scenario over 25 days? w w w 100 day VaR is 4 %..b ..... On the day of receipt of the Bill m An import bill not retired by the importer should be crystallized by the bank on what day? Ans ..... Decrease in yield by 2% iib A bank’s G sec portfolio has 100 day VaR at 95% confidence level of 4% based on yield.... Increase in yield by 2% d.......... On 21st day from the date of Bill of Lading b... Answer is increase in yield by 2 % .. Because this will decrease the market price or value.. www.com.. which is not adhering to regulations b...ja Solution : iib ca a..... Decrease in yield by 0.. 09994452442 83 ..com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail... .........jaiibcaiibmocktest... Direct exchange rate b....bankpromotionexams... www.. (i).. Swap c.... te A contract traded on an exchange to make or take delivery of a commodity is known as .... Future b.com.....com.....jaiibcaiibmocktest.. (ii) IRDA.com.....ja Treasury Bills are not issued by ..........com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail..... Fixed exchange rate d. Premium d.......a .... (i) RBI.. Floating exchange rate iib The value of the currency is decided by supply and demand factors for a particular currency under . Indirect exchange rate c... Option m Ans ... Three point arbitrage b...c o a.... www..... Only (i) and (iii) c..... st .. oc k a.com...www. iib Ans .. admin@jaiibcaiibmocktest.. Only (i) and (ii) b.. (ii) and (iii) Ans .. www.......com...com...... admin@jaiibcaiibmocktest... ca a.....d ..b ...... (iii) GOI w w w a..onlyforbankers.. www.......... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m An exchange of specific streams of payments over an agreed period of time is known as . ................ An arbitrage transaction conducted between two centers only is known as .. 09994452442 84 ....com............onlyforbankers.a ......... Future b.......... Premium d... Option Ans ......bankpromotionexams..com.. Swap c.com murugan0501@gmail............ Direct arbitrage ………………………………………………………………………………………………………………………………………………………………… www.......... Only (ii) and (iii) d... a.... ... None of the above oc k Ans ..........com...... www. Which of the currencies is not been quoted as indirect rates ? te a.com........ leveraging b....com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected]...... Translation exposure d.......com.com.. Ans .. Risk management d. www...... speculation c........ arbitrage ………………………………………………………………………………………………………………………………………………………………… www..onlyforbankers.. none of these Ans . Transaction exposure c. AUD st .. admin@jaiibcaiibmocktest.. Dealing room b.a ...bankpromotionexams....b . Of the three divisions... Foreign exchange risk b. the front office is also known as ........com murugan0501@gmail...... Treasury administration c.......jaiibcaiibmocktest....... YEN c.....com.... EURO d....... GBP b.... Operating exposure m The exposure relates to valuation of foreign currency assets and liabilities at the end of accounting year at current realizable values.. www.... 09994452442 85 ....... iib ca a.... w w w ..... Buying or selling an asset only for the purpose of making profit from movement of the asset price over a period of time is known as ..bankpromotionexams....... 09994452442 ………………………………………………………………………………………………………………………………………………………………… Ans .....b .................onlyforbankers..jaiibcaiibmocktest. Compound arbitrage d......... a.....c o m c.. iib The treasury is segragated into three main divisions....c .....www.com..com...... www...... [email protected] a.. .com................. CRR and SLR c.. the back office is also known as ................ none of these oc k Ans ..................com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected] [email protected].... forward c. settlement takes place on the third day (two working days from trade days).. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m d.b .... The treasury is segragated into three main divisions...com........... Treasury administration c... www..... .c . [email protected] iib a............... none of these Ans – b ………………………………………………………………………………………………………………………………………………………………… www...c o Ans . Of the three divisions...com.............bankpromotionexams..c ..... PLR and SLR b... 09994452442 86 . www. swap d.......... forward c...... swap b.....b .. te a.. Repo and CRR d..... admin@jaiibcaiibmocktest..... spot d...... A combination of two forward transactions is called a ..jaiibcaiibmocktest.jaiibcaiibmocktest.... Risk management d.. www... VaR and CRR w w w Ans .com. deployment st .. repo What are the two reserve requirements that treasury has to comply with? .. Dealing room b.. ca Ans ..... iib m a.. a.com... www......bankpromotionexams..... spot b.www.... securities market and foreign exchange operations Ans ...com.. Treasury administration c.... Dealing room b...c ..com.. Centralization of all back office operations of forex branches d.onlyforbankers.... Dealing room b.. 09994452442 87 ....com....... Treasury administration c.....ja Ans ......... www... w w w Integrated Treasury in Banking set up refers to .. Risk management d..... Risk management ....com [email protected] Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail.. the mid office is also known as ..........com. either of the two d. Of the three divisions........c ...... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m The treasury is segragated into three main divisions... Integration of money market. iib a...... m a.... from spot exchange rate........a . none of these te Ans ..... st ..bankpromotionexams.. a. www......... none of these ca Buying and selling is performed under .. iib Ans ... www. Computerization of all bank branches b...... oc k Forward exchange rates are arrived at on the basis of interest rate differentials of two currencies............... ………………………………………………………………………………………………………………………………………………………………… www...........bankpromotionexams.. Risk management c.jaiibcaiibmocktest..........d ....com..www. Computerization of all treasury operations c..... .. [email protected].. admin@jaiibcaiibmocktest... deducted c. www......onlyforbankers..........com.com..c o a. added b.... .... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m A bond having a McCauley’s duration of 8 Yr is yielding 10% at present.. (i)........ (iii) Rates are less favorable to the buyer of the currency ...... 250 c..ja Ans ........ 09994452442 88 . a..1) = 7.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail....... Risk of Reduction in Mark-to-Market value of equities is .com. Interest Rate Risk ………………………………………………………………………………………………………………………………………………………………… www......d m oc k te Modified duration is McCauley's duration discounted by one period yield to maturity Here we are talking McCauley's duration is 8 years............2727 Ans ...com.....jaiibcaiibmocktest.. www......www.. 200 b..com...c o a) 8.... (ii) Rates are generally quoted at discount to the spot rate..com...2727 ... Only (ii) and (iii) d.... www..com. ca iib a.... [email protected].... (ii) and (iii) iib Which of following statements are correct relating to TOD and TOM? (i) Rates are generally quated at a premium to the spot rate.bankpromotionexams.c .....% of bank’s Tier –I Capital w w w a...com. www.1) = 8/(1.........onlyforbankers.... Only (i) and (iii) c...............com [email protected] d) 7. Modified duration =McCauley's duration / ( 1 + yield ) = 8 /(1 + 10%) = 8/(1 +0...8181 b) 8.... 350 Ans .... www..com.jaiibcaiibmocktest....... Tier III capital will be limited to ........ What will be the modified duration? st ..bankpromotionexams........ [email protected] c) 7. Only (i) and (ii) b.b ....onlyforbankers.... 300 d.... . 15 months d.c o m b. Credit Risk d....jaiibcaiibmocktest... processing.................. 6 months b............ admin@jaiibcaiibmocktest. 09994452442 89 ...com....com....... insurance / guarantee...bankpromotionexams. 25000 m Ans .. purchasing or packing of goods meant for export against a firm order or LC qualifies for ... a...com.. oc k a.com.... Market Risk c......onlyforbankers....com murugan0501@gmail....... Export finance guarantee ………………………………………………………………………………………………………………………………………………………………… www.... www..... Operational Risk Ans ..... www. 18 months Ans .... . [email protected] . A loan given to an exporter for the manufacture.......www... 1 year c.com... ca a. www.. te If the exporter has opted for commercial and political risks cover.bankpromotionexams.. www. 1000 b.com.........com...... 15 lacs c... 10 lacs b..... failure of the LC opening bank in respect of exports against LC will be covered for the banks with World Rank up to ...onlyforbankers.d ....... 09994452442 ………………………………………………………………………………………………………………………………………………………………… st .............. 15000 d....a . in a year... iib Export turnover policy can be availed by exporters whose projected turnover is expected to exceed the premium payable to ECGC by ............... as per latest Banker's almanac.....b ............ 25 lacs iib Ans ....com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail............. 20 lacs d.. w w w a.. 2000 c...ja The validity period of export turnover policy is ........com.jaiibcaiibmocktest. . www... admin@jaiibcaiibmocktest. 8.com [email protected] What will be the annualized yield of the treasury bill face value Rs. 8..com.....bankpromotionexams... Transfer guarantee Ans ...............www.. oc k te a....com..com...26 Ans . None of the above Ans ...... ………………………………………………………………………………………………………………………………………………………………… www..com.. m Central Bank Governors of G-10 countries participate in the Basel Committee on Banking Supervision.. 1 lac with maturity after 85 days which is being traded at Rs 98000/-? w w w a. Redeemable Cumulative Preference shares comes under .............76 c. 11 c... .d ...com.. 13 iib Ans ..... Packing credit insurance d. Export performance indemnity c........ 09994452442 90 ... 8..b ......... 8........76 ....59 b.............com....bankpromotionexams.. Tier – II Capital c.... 10 b........... 12 d...... Total number of members is: ca iib a..... Tier – III Capital d..b Explanation : Fv-pp/pp x 365/85 [(100000-98000)/98000) x (365/85) = 8.... www....onlyforbankers... www.com. 09994452442 ………………………………………………………………………………………………………………………………………………………………… st .....19 d... admin@jaiibcaiibmocktest. Tier – I Capital b....c ...com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected] o m b.... www.jaiibcaiibmocktest..................com..... ............. iib m a..... next day d.com. www.....b ..... Only (ii) and (iii) d.jaiibcaiibmocktest.........bankpromotionexams.. w w In most banks......com murugan0501@gmail.. are integrated to various extents to manage the SLR regulations......www. 09994452442 91 .ja iib a. 0.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail......... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m An exposer of Rs 100 lakhs is backed by lien on fixed deposit of Rs 30 lakhs...bankpromotionexams... www.......com. (i) Low interest yielding currency.. (i) funds department.... Both (i) and (ii) Call money refers to placement of fund . Either (i) or (ii) d. admin@jaiibcaiibmocktest. Only (ii) c..c o a. (ii) and (iii) Ans .... (iii) treasury a.... ………………………………………………………………………………………………………………………………………………………………… www.................. 0........jaiibcaiibmocktest....... (i). oc k The interest rate differential is added to the spot rate of . ... same day b.. www....com.. .. .....c te Hair cut for collateral under banks FDR is 0........ Two days w Ans ...... admin@jaiibcaiibmocktest. 30 lakhs Ans ...........d ...00 lakh d..........com.... 70 lakhs b.... Only (i) and (iii) c.com..... overnight c.. Only (i) and (ii) b.70 lakh c..com.... There is no maturity mismatch.com...onlyforbankers. (ii) planning department.... What should be Hair cut for credit risk mitigation? st ......onlyforbankers.....a .....com. Only (i) b.. (ii) High interest yielding currency ca Ans ........ www.. .com...........com murugan0501@gmail. Rs 1056..com. capital requirement under the accord is a..67 million (b) 37. The minimum capital as specified by the regulatory authority is required to be maintained d..36 c..... PVIF (3%. None of the above Ans ... 1000*7% / 2 = 35........n) + F (PVIFkd.... the value of the bond to be ? (PVIFA (3%.36 ..14)=11.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected]= 37..onlyforbankers. The maximum capital that is required to be maintained b.04 ca Ans .jaiibcaiibmocktest...84 d....... ………………………………………………………………………………………………………………………………………………………………… www.. www............ Rs..33 is the factor to be used while calculating risk capital ....... Rs 1451.....com.c .... w w Under Basel II.661 = 395.com.b oc k Risk capital = 200 million* 0.........12 million Ans .28 million 2.jaiibcaiibmocktest.. admin@jaiibcaiibmocktest.. www. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m What is the risk capital if the traded value is of 200 million and volatility is 8%? st . 09994452442 92 . www...bankpromotionexams. it is semi annually. 1231.....661 iib m a.. The minimum capital that is required to be maintained c..........onlyforbankers.296 + 1000 * 0.72 b.......... Rs 1112.... [email protected]*2...com.28 million (c) 16..36 + 661 = 1056. 35*11...ja iib Bond valuation=i (PVIFAkd. www.com..14)=..... te Explanation : If the YTM is 6% and the coupon rate of 7% is payable semi-annually.com..b Explanation : w .c o (a) 18.....com. So..n) Since..296.00 million (d) 39.......www.bankpromotionexams... .....c .. higher would be capital requirement and higher would be return expectation d.jaiibcaiibmocktest............com...jaiibcaiibmocktest....com..... Higher the risk in a business... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Interest rate Risk can be reduced by ..... Higher the risk in a business... Tier – II capital should not be more than .. [email protected] murugan0501@gmail.......... Higher the risk in a business....20 ………………………………………………………………………………………………………………………………………………………………… www.. Entering into Forward Contracts c.... Mismatch risk . ABC co has following data as on 31-03-2015 Value in cr Paid up capital (for 2 crore share with face value of Rs 10) . 100 Ans . www... www..... www.......www. 75 d..com..................com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected] .bankpromotionexams...... higher would be capital requirement c....... 09994452442 93 ... Basis risk b............b . Derivatives of Interest Rate Swaps d... te Which of the following statements is correct? oc k a.. www............com... st . w w w a.....ja Ans ...... Premature payment of a term loan will result in which type of interest rate risk ? iib ca a... Diversification of Advances Ans ...... Accepting Collaterals b... 25 b....% of Total Capital.bankpromotionexams.com..com.. Yield curve risk c....b .onlyforbankers....... higher would be return expectation b....com....... 50 c..c o a.......com... Embedded option risk d....... None of the statements is correct iib m Ans .. admin@jaiibcaiibmocktest.. d .... 38 Cr b.08 Price earning ratio .. Rs.c o m Reserve .10 Tax ......... 2. The rating of the security migrates to A. 2 and 3 d..jaiibcaiibmocktest. 09994452442 ………………………………………………………………………………………………………………………………………………………………… st .. 1. admin@jaiibcaiibmocktest. 09994452442 94 ......bankpromotionexams.80 PBIDT . 1 and 2 c... Market liquidation risk ………………………………………………………………………………………………………………………………………………………………… www..12 Depreciation .. Market risk b...... 1 b....com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail.... obligor (borrower) 2..com.com [email protected]. 40 Cr c.. www....com. www...... industries w w w a. What is the risk that the bank has faced? a.com. 20 Cr iib ca PBIDT-I-D-T = 50-12-10-8 = 20 cr .... 42 Cr d.ja iib 1................ Rs..com.. 1..50 Paid interest ....onlyforbankers.onlyforbankers....60 Long term Loans .www.jaiibcaiibmocktest....10 On this basis..... geographical 3.com.. trades 4....com. .... Rs. www.. level. oc k a... ans the following qtns te Its net profit would be ... A bank holds a security that is rated A+....com. Rs. 3 and 4 Ans ... m Ans – d Diversification occurs at ...com.. www. admin@jaiibcaiibmocktest. .....com.. The rate of discount at which the present value equals the market price of a bond is known as YTM (Yield To Maturity).. transaction level b.......... futures c................ te a.. 09994452442 95 ...... ca Ans ... controlling the level of risk oc k Ans ...... Ans .jaiibcaiibmocktest.onlyforbankers.........com.. a.... d.....www..bankpromotionexams.......com murugan0501@gmail..... c. Duration is a weighted average measure of life of a bond........ Operational risk d......ja a....com....c o Ans .. Risks may arise at ..... [email protected].. www. both a and b d.............. www... Difference in the duration of assets and duration of liabilities is expressed as duration gap and is useful for macro-hedging of balance sheet risk......... The most critical function of risk management is ...d . iib m a... none of these iib Select the incorrect statement: w w w .....com..d ...... risk identification b. admin@jaiibcaiibmocktest.... estimating risk cost c.... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m c....com. where the time of receipt of a cash flow is weighted by the future value of the cash flow..jaiibcaiibmocktest..c ..... b.... Credit risk st .com... forward contracts b...onlyforbankers.. options ………………………………………………………………………………………………………………………………………………………………… www.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected] . www. MD (Modified Duration) indicates price sensitivity of a bond per unit of change in the yield levels. www. A contract to deliver foreign currency on a future date at a fixed exchange rate is known as .............. portfolio level c... measuring risk d...bankpromotionexams.... . w w Building up large volumes of business on relatively small capital is known as ............................. ………………………………………………………………………………………………………………………………………………………………… www.............com.onlyforbankers.. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m d..onlyforbankers......ja iib a...... b.......com...b .. te a... www. d.. 09994452442 96 .. Plain vanilla w Ans ...............com........ www...... admin@jaiibcaiibmocktest.. iib m a......com.. the buy-sell spread should be .. wider c.. www.com............... [email protected]. arbitrage c... Coupon c. www.... ______ swap refers to exchange of floating rate in one currency to fixed rate in another currency.. Select the incorrect statement: ca Ans ......com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail. The fixed rate of interest is always linked to a benchmark rate.....d .....bankpromotionexams.. leveraging Ans ...com murugan0501@gmail... swaps st . Swaptions d. none of these oc k Ans ....... derivative b.. FRA (Forward Rate Agreement) is for a single payment in future.www................com.....d .............a ....... equal d... The floating rate of interest is always linked to a benchmark rate.jaiibcaiibmocktest. a..... Quanto b....... ........ narrower b... IRS covers a series of periodical interest payments..c o Ans .......... For currency market to be more liquid....bankpromotionexams. swapping d... c......a .....jaiibcaiibmocktest. ... www..jaiibcaiibmocktest.bankpromotionexams.......... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Which of the following risks may occur at portfolio level in addition to transaction level? st .c o a........... 21 d.. www.d ...........bankpromotionexams.....com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail.. ca a. ………………………………………………………………………………………………………………………………………………………………… www...... w w w .jaiibcaiibmocktest. 09994452442 97 .....onlyforbankers... 30 iib Ans . all of these The value of derivative depends on ______ market.......... 14 b. operational d. ready te Ans . days from the date of shipment.. 30 Ans ... 7 b....www....... 14 c.com... spot b..... the shipping documents along with relative GR form must be submitted to an AD within ................com [email protected] ........ja AD should forward a detailed report to RBI on half-yearly basis in the form of BEF consisting of defaulter (importers) who do not submit bill of entry within __ days from the date of issue of registered reminder (which is 1 month from the date of remittance). admin@jaiibcaiibmocktest............. 28 d.. [email protected]...... In case of post shipment finance..... a.a ..b .. credit risk b........ market risk c. 21 c..com... oc k a.com..com..... TOM d.... www......com.......... iib m Ans .com.... www.com...... forward c... . www...com... and if the period is more than 3 years.. ECB. oc k a.com.... w w w An arbitrage transaction conducted between more than two centers is known as . Trade Credit................. ECB c...onlyforbankers......... None of these Ans ... ca Credit arranged by the importer from a bank / FI outside his country.....b ..... None of the above Ans ...com...................bankpromotionexams.bankpromotionexams.... None of these . a... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Credit directly extended by the overseas supplier of goods to the importer is called ....com murugan0501@gmail.... it is called .. PCFC b.....c ...... import letter of credit d...com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected]. 09994452442 98 .. Trade Credit d..........com......onlyforbankers.ja Ans . EBR... st ... supplier's credit b. trade credit iib m Ans ..... buyer's credit c... www....a ..... PCL..com.b .www... buyer's credit c.... to settle the payment of imports is called .. te If the overseas supplier of goods extends credit to the importer for a period of more than 6 months but for less than 3 years. import letter of credit d...... ………………………………………………………………………………………………………………………………………………………………… www.. [email protected]......... Simple arbitrage b...... Compound arbitrage d........jaiibcaiibmocktest.......c o a.. www. supplier's credit b..... Direct arbitrage c................. Here no period is prescribed.. iib a.........jaiibcaiibmocktest.. www. admin@jaiibcaiibmocktest. it is called .com.......... ........bankpromotionexams.. www....... .com. Account c.com murugan0501@gmail... www. up to US .. 30 cr c... ………………………………………………………………………………………………………………………………………………………………… www.................onlyforbankers.com.. www. st .ja Ans . Rs.... 2 b.. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m In Forex Markets. million per import transaction.....www..com... Book value of shares of the company as on 31-03-2015 w w w a. www..com............... 80 cr Ans – c Book value of shares = (paid up capital + reserve)/no of shares = (20+60)/2 = 40 ............bankpromotionexams..com. 10 d... for import of all items remissible under the Exim Policy. 09994452442 99 .... 3 months.. 10 cr b..... 20 iib Banks can approve proposals for availing buyer's credit for a period with maturity up to ........... 40 cr d........ 5 Ans .... 3 c. Reconciliation te Which is not a function of Back Office ? m Ans ..c ...d ....jaiibcaiibmocktest..com.....com. 10 b.. 1 year............ Rs..... 4 d.............. Rs.. ca iib a.... Rs...onlyforbankers... seconds. oc k a......... 6 months. [email protected] Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected] .......... 1 year. admin@jaiibcaiibmocktest. 20 c..c o a......com........ Deals b..jaiibcaiibmocktest... on an average the exchange rates of major currencies fluctuate every .... Funds position d. .... borrowing from other institutions 200 cr...... Rs... Either (i) or (ii) d.....com... demand deposit 6500cr.. Market price of the share of the co......... accrued 20 cr. Rs......com... 20 cr a....com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail.. Ans – b iib ca Market price = PER * EPS = 10*10 = 100 ...d ......... 10 cr Ans – d oc k te EPS=NPAT/paid up capital* face value = 20/20*10 = 10 ....com murugan0501@gmail... borrowing from RBI nil..... Rs............. Rs..... www.com. st .. iib m a......... Rs..c o a.onlyforbankers..com. www...com............. (ii) Carry lesser yields.onlyforbankers. 200 cr a. 300 cr SLR approved securities are .SB deposit 20500 cr... (i) Risk free instruments. Rs.... 09994452442 100 .....com... term deposit from public 30800 cr... bills payable 50 Cr.. www...bankpromotionexams.jaiibcaiibmocktest..ja a. ………………………………………………………………………………………………………………………………………………………………… www.. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m The earning per share would be .com. 40 cr a. 30 cr a... term deposits from banks 1300 cr. www. Both (i) and (ii) Ans . 100 cr a. refinance from NABARD 150 cr.. Only (i) b. Rs..... w w w . subordinated debt 200 cr and credit balance in suspense a/c 30 cr (Total Being 63000) Answer the following based on the data given above...com. Data relating to balance sheet as on 14 Mar 2015 banks reveals its capital at Rs 1110 cr... admin@jaiibcaiibmocktest... reserve 2150 cr....jaiibcaiibmocktest. 50 cr a. Only (ii) c...... Rs..... [email protected]...... com. 63000 c.....d te In time liabilities capital and reserve + refinance from NABARD + term deposit of banks not to be included oc k 1100+2150+150+1300 =4700 ...... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Total amt of liabilities not to be included in computing DTLs in Rs st .com... 2905 c...... Rs.. www.c o a.. 3150 Ans – c = 5% of 58300 = 2915 ........onlyforbankers...jaiibcaiibmocktest... Rs.. ......www... Rs........com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected]... admin@jaiibcaiibmocktest...... 3300 cr c..... www.bankpromotionexams....onlyforbankers.. www........ 58100 b......... 4600 cr d. 09994452442 101 .com.... www.... if the rate of CRR is 5% w w w a.com..com..........com..... 1749 d........ [email protected] Bank would required to maintain average CRR amounting to... 67100 ca Ans – c iib 6500+20500+30800+200+50+20+200+30=58300 other than those not included while calculating DTL ... 3250 cr b..com.. Total amount of DTL on which CRR is to be maintained m cr cr cr cr iib a.. 4700 cr Ans ..bankpromotionexams. 2915 b. ………………………………………………………………………………………………………………………………………………………………… www....jaiibcaiibmocktest...... Rs..... 58300 d.........com murugan0501@gmail. Rs. www......29 % b. 2500 crores 200/.jaiibcaiibmocktest...... Rs.com...........85 % w w w Ans ..com murugan0501@gmail.... admin@jaiibcaiibmocktest. 10.........bankpromotionexams..........bankpromotionexams....... www. Rs 2000 Cr c.........com.....c o a.1486 0.. 1000 crores b..... Rs... Rs 2500 Cr iib What is the Tier-I CRAR? . 09994452442 ………………………………………………………………………………………………………………………………………………………………… m What are the risk weighted assets for market risk? st ..1111 ………………………………………………………………………………………………………………………………………………………………… www.. 5... 14....71% . 11.. 1500 crores c..........jaiibcaiibmocktest..08 = 1250 Ans .......c TIER-I CRAR=Eligible tier-1 capital/(Total RWAs) = 500/8750 = 5. Rs 1000 Cr b. oc k What are the risk weighted assets for operational risk? te Ans –d Ans – c ca 100/.www..com. iib m a. Rs 1250 Cr d....42 % c...com.....onlyforbankers.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected] a.........com.. 2000 crores d.. www..71% d.... [email protected] =2500 .....com.onlyforbankers... www....... Rs.. What is the total capital adequacy ratio? 0...com..com. 09994452442 102 . oc k If there is an assets of Rs...........com. 120 in the doubtful-I cat and the realization value of security is Rs. 50 d.. RBI c..jaiibcaiibmocktest...... www... FEDAI d.. Deferred credits will appear on the balance sheet with the a..... 40 b.bankpromotionexams.......com...... www.....com......... www...com.. .. 45 c..... 100 only.. Rs....com.www...com [email protected].... admin@jaiibcaiibmocktest..... Rs... so 25% of realization value Rs...1143 0. Liabilities c.com. admin@jaiibcaiibmocktest. Assets b... BCBG Ans – a .....onlyforbankers....e Rs.. 25 and 100% of short Fall that is 120-100=20 so ans will be iib 20+25=45 .com.....com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail..... Owner's/Stockholders' Equity ………………………………………………………………………………………………………………………………………………………………… www. Tier-II of Rs. 60 Ans – b ca Since it a doubtful-I cat asset.c o Ans – c Total CRAR = Eligible Total capital/(Total RWAs) = 1000/8750 = 11.... Rs..bankpromotionexams.. www... 09994452442 103 . w w w a.100 i..ja The ultimate responsibility for designing and implementation of ICAAP lies with .onlyforbankers. . Banks' board of directors b........ 500Crore is taken for calculation (500+500=1000).1282 st . Rs.... what will be the provision requirement? iib m a.........jaiibcaiibmocktest......... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m 0........... So....42 % te (Remember here tier-II capital does not exceed 100 % of tier-I capital. ...... Market Risk d...... www.....com murugan0501@gmail.... www..onlyforbankers....d ......www.... Exchange Risk b..com. globally......b ...com...... www...... Measurement of risk b....onlyforbankers.......jaiibcaiibmocktest... From Monday to Sunday m Forex markets usually operate ..... Settlement Risk oc k Ans . Exchange rate risk b. Risk which arises due to inability or unwillingness of the counterparty to meet the obligations at maturity is called as . [email protected] Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m d.....com.. te a. Estimating the costs of risk d..com.. 09994452442 104 ............ Interest rate risk d......... [email protected]... From Monday to Saturday d.. From Monday to Thursday b................com...com.... None of the above st ........... iib a....... What kind of risk on settlements is covered by 'Herstatt Risk' for which BCBS was formed? a.....c o Ans – b .b .... Controlling the level of risk to an organization's capacity w w w Ans .......com..... iib What is the most critical function of Risk Management? .jaiibcaiibmocktest.. www....ja a............ Credit Risk c... From Monday to Friday c.bankpromotionexams......... None Ans – b ………………………………………………………………………………………………………………………………………………………………… www.. ca Ans ...... Identification of risks c.. except for the Middle East or other Islamic Countries... Time difference risk c.com....... .......com. forward options c. none of these Ans . Uncertainties in cash flow d............... www.com. www. www..jaiibcaiibmocktest. CRAR b....... Uncertainties resulting in adverse variation of profitability or outright losses b........... CSU d...........onlyforbankers.. In a period of six months (125 working days) how many times the loss on the portfolio may exceed Rs 500? iib ca a....com...com [email protected] o a...bankpromotionexams.com..... te Financial Risk is defined as oc k a.......... a.ja Ans .. Variations in net cash flows m Ans .... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m In case of Domestic banks risk weights are assigned depends on? st ... 09994452442 105 ....com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected] .d ... None Ans .. opportunity cost d.......www. 5 days c......c .......... 4 days b..... 6 days d....... iib 1 day VaR of a portfolio is Rs 500 with 95% confidence level. www......jaiibcaiibmocktest.. ………………………………………………………………………………………………………………………………………………………………… www.................. admin@jaiibcaiibmocktest. w w w Holder of a forwarded contract can not get the benefit of market rate.......com..bankpromotionexams........which is a disadvantage known as ..com. on the date of utilization . hedging b. Uncertainties that result in outright losses c..... 7 days ......... ECA c..... if it is better than the contracted rate.. [email protected] ...com..... ja The higher the risk...com.....jaiibcaiibmocktest.. w w w a......c ..com.com.... www. oc k a.... Return on equity b....... return expectation b... call option b...106 www....onlyforbankers..bankpromotionexams..gradation and concentration risk ………………………………………………………………………………………………………………………………………………………………… www.. Risk pricing d.....................bankpromotionexams. [email protected] .......com murugan0501@gmail. Down ..b .. . www. Default risk and systematic risk b... strike price d.. RAROC (Risk Adjusted Return On Capital) c...com.......com..... capital requirement c.......com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail. 09994452442 / ..... either of these d..... none of these iib The prefixed rate on which the call options or put options are executed is known as ...com...... m Ans ....... the higher would be ......a .......... a.... none of these Ans .. [email protected].. spot b.............com. both of these Ans .. 09994452442 ………………………………………………………………………………………………………………………………………………………………… st .com.. None of these te Which among the following is the key factor (most reliable tool) in investment decision? ca a. iib Ans ..............c o m Which of these gives a right to the holder to buy an underlying product (currency / bonds commodities) at a prefixed rate on a specified future date. cost price c... both a and b d..onlyforbankers................. Which of the followings are Components of portfolio risk are? a.... put option c.. www... www. .... 1 b. 12....... 10 c.. months and its coverage is ... months from the due date of payment..onlyforbankers..ja iib Small exporter policy is issued for a period of ..... 95...c ... 95.... 20 d.. 4...... future c..... 50 Ans ...com... Default risk and down -gradation risk st .www....... www.. option d........ www.. w w w a.... 12 d.. 6 Ans ....jaiibcaiibmocktest.. Interest rate risk b..... forward cover b... % if the loss is due to political risk and the waiting period for claim is ..com...com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected] murugan0501@gmail.......... Liquidity risk ………………………………………………………………………………………………………………………………………………………………… www.... www............ Operational risk c.com......com.. 12...... admin@jaiibcaiibmocktest. 95. 4 b..bankpromotionexams..bankpromotionexams...a ............. ..................... the projected export turnover for the period of 12 months should not exceed __ lacs.. 09994452442 107 ...com.....onlyforbankers... Strategic Risk is a type of a.c o Ans .com.... Concentration risk and intrinsic risk d..com...d ...d .. 95...... 12. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m c.... all of these oc k Ans . 100.. Which of the following is a tool to cover direct exchange risk? te a.. admin@jaiibcaiibmocktest...% where the loss is due to commercial risk and .. 4 c....... ca iib a.... www. 100.. m For small exporters.... 100.com..jaiibcaiibmocktest.... 100.... .com murugan0501@gmail. www...2727 ………………………………………………………………………………………………………………………………………………………………… www...d ...82% w w Ans .36% b) Bond price would fall by 4. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m d.....com.jaiibcaiibmocktest.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail. Mismatch risk c.1) = 7......... Modified duration =McCauley's duration / ( 1 + yield ) = 8 /(1 + 10%) = 8/(1 +0... te a........com....com....c o Ans .....82% d) Bond price would fall by 2........ None of these st . it faces....bankpromotionexams....com.....onlyforbankers. 09994452442 108 ...... Market risk d.......com........ www. OTC iib A bond having duration of 8 Yr is yielding 10% at present..com.... Basis risk b.......www....... Gold c.......... Life Insurance d...1) = 8/(1..d .. what would be the impact on price of the bond? w ......... If yield increase by . [email protected]%.. Which of following instruments not eligible for Credit risk Mitigation? ca Ans .ja a) Bond price would go up by 4.. A bank funds its assets from a pool of composite liabilities.36% c) Bond price would go up by 2. iib m a.jaiibcaiibmocktest..com.onlyforbankers.......... www... www.a .. Apart from credit and operational risks...com.. Liquidity risk oc k Ans . Cash b. [email protected] Modified duration is McCauley's duration discounted by one period yield to maturity Here we are talking McCauley's duration is 8 years. d ....36% ( ..bankpromotionexams.... 1..com murugan0501@gmail......... 4 and 5 only d............... 09994452442 109 ...........jaiibcaiibmocktest. 1.. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m % change in price =.............. Operational Risk Ans ...jaiibcaiibmocktest... 2.c o = . which of the following risks the branch is taking? . All of them b...... .....onlyforbankers.. Mirror d.3636 % = (-) 4.60%) = (-)4..... www..com...... www....36 % decrease in price....com......com...... [email protected]× (0.... ………………………………………………………………………………………………………………………………………………………………… www.com. te 'Your Account with Us' is called ..www...)means decrease in price 4. www.. Market risk 4....com... w w Counter party Risk is a type of ..... www........a . Market Risk c.. 1... account.. oc k a.. ... Vostro b. Credit Risk d....com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected]... 2 and 3 only c............. Interest rate risk 3..onlyforbankers. Loro m Ans . 4 and 5 only w Ans .....ja iib a...c ...... Nostro c.com. Liquidity risk 2... a.. Interest Rate Risk b..modified duration × yield change st .com. [email protected]..... ca 1..7................. Operational risk iib A branch sanctions Rs 1 crore loan to a borrower......... Credit risk 5.... ...com.. the EXIM bank offers: a..... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m 1988 Capital Accord framework accounted for st .www....bankpromotionexams........bankpromotionexams... www.. [email protected] .......com..jaiibcaiibmocktest...... .......com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail...... Credit risk 2...2 and 4 c... Interest Rate Risk b.. admin@jaiibcaiibmocktest. 1.onlyforbankers.....com...c o 1.......... iib m a. Compare model results and actual performance c..com.... credit to overseas importers to import from indian exporters d...b ... www.. 1. Operational Risk w w w Ans ........ Market Risk c.com.....onlyforbankers.. credit to indian exporter for offering deferred credit to overseas buyers c..... Operational risk 4....b .......2 and 3 oc k Ans ..... Credit Risk d.. Market Risk 3. Test a model b.ja a. www... Back testing is done to ca Ans ...com.. credit to indian importers to import from other countries. www..jaiibcaiibmocktest. Defined capital component te Which of the following is true? a.......com... Ans – d ………………………………………………………………………………………………………………………………………………………………… www. credit to indian exporters for manufacturing b.com murugan0501@gmail... Record performance d. 1..... All of them b.......... None of the above iib Communication Risk is a type of .3 and 4 d. 09994452442 110 .. Under supplier credit scheme.....com. com......com............ d...... (ii) Middle Office.....com murugan0501@gmail...... ………………………………………………………………………………………………………………………………………………………………… www... m a.. If an exporter needs to hedge receivables of USD 560.. Only (i) and (iii) c... all are correct .. (iii) Back office... a......... b... USD 1500 c...... from floating rate to fixed rate c.........onlyforbankers.....700. (i)..ja Ans ......jaiibcaiibmocktest.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected]. no such limit ca Select the incorrect statement. USD 2000 d.........www... w w w An interest rate swap is shifting of basis of interest rate calculation . The contract size in interest rate futures market is Rs 2 lacs...a .....com. www..... c..com.d ..bankpromotionexams. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Which are not responsible for the compliance with risk limits imposed by the management? (i) Front Office. www.. 09994452442 111 ...... all of these Ans ....jaiibcaiibmocktest...d ...... oc k What is the maximum amount of foreign currency coins that a person resident in India can possess or retain? iib Ans . Only (ii) and (iii) d... [email protected]............... www. from fixed rate to floating rate b.c o a.. st .. USD 1000 b.a .... aggregating to USD 561... fixed floating rate to floating rate d.... he would need to buy 561 forward sale contracts of USD 1000 each..... The contract size in futures market is USD 1000 and all settlements take place in Dollars..bankpromotionexams.000...... [email protected]. iib a. Only (i) and (ii) b..... (ii) and (iii) te Ans ......... www............... The small difference is called basis risk... .lead to inflation and reduction in money supply b....com murugan0501@gmail.... Which of them are important divisions of Treasuries? (i) Front Office.onlyforbankers... shortage of liquidity ........ A2 where the amount exceeds $25000 .. MIBOR c... st ... 21 Ans .............. [email protected] o a. A1 where the amount exceeds $500 b. iib To obtain foreign exchange for remittance abroad or use abroad or usee abroad by resident indian.com.. te Select the incorrect pair: oc k a.......... Fed Rate d..jaiibcaiibmocktest.......d .com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail......... A2 where the amount exceeds $5000 c. excess of liquidity .. LIBOR b... w w w a.com.. Import bills should be crystallized on the ...... which of the following application form is used: iib ca a..ja Ans . (iii) Rear office.. admin@jaiibcaiibmocktest........ a. 7 b............com.........th day......... none of these m Ans . absorption of liquidity by RBI ....com.....bankpromotionexams....com. 10 c. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m The benchmark rates for term lending for USD are generally ..... if not paid by the due date......com.jaiibcaiibmocktest..... (ii) Middle Office.... www...com.........bankpromotionexams...a ..lead to high interest rate and exchange rate c........onlyforbankers... www. 09994452442 112 ....increase in CRR and SLR requirement d... Only (i) and (ii) ………………………………………………………………………………………………………………………………………………………………… www.....d . 15 d....com... MIFOR Ans .... www.. www...b ....... A2 where the amount exceeds $500 d. ... 6-vii.. 4-ii...jaiibcaiibmocktest. 7 b..... 09994452442 ………………………………………………………………………………………………………………………………………………………………… st . Insignificant risk .. a. 180 d.. 2-iv..... 1-iii. 5-vi. from the due date of contract.. Overdue forward contracts should be automatically cancelled on the ...c o m b.a ....... 7-i w w w Ans .. 5-vi. 09994452442 113 . 4-ii.vii) C1 m Match the correct pair associated with country risks: ..com.com. 6-vi.jaiibcaiibmocktest. Only (ii) and (iii) d.. Moderate risk .. www... 3-i... 1-viii.d ………………………………………………………………………………………………………………………………………………………………… www.. None of these Ans .. 5-i..v) D 6.. www........ 1-iv...... 21 d.. Moderately low risk . High risk ... Very high risk .. (i). 2-v...bankpromotionexams......... Moderately high risk .. 7-iii c... oc k te a..... admin@jaiibcaiibmocktest... 6-v...iii) A1 4....th working day.i) C2 2....... 3-iii... 6-iii..com..com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail. 7-iii d.ii) B1 3.com.... 4-i.. 15 c..com.... 7-vii b.... 90 c. www.. 4-ii. 5-vii. days in case of usance bills.. 2-iv.vi) A2 7. 1-v..com murugan0501@gmail... (ii) and (iii) Ans ...... 25 b.a . 2-iv.....bankpromotionexams.a .onlyforbankers......ja a. Low risk .. admin@jaiibcaiibmocktest. 3-ii.com.. Concessional rate of interest for post-shipment finance is allowed for . 30 Ans .com...... iib ca iib 1..com.... www..onlyforbankers... 3-vi...www.......iv) B2 5. Only (i) and (iii) c.... ...bankpromotionexams.. www. Sovereign risk b.... www.bankpromotionexams..... www..com. BIC b...... OTC c....... 09994452442 114 .. would be crystallised.......... iib The fund which CCIL creates to cover outstanding of any participant in case of default is known as ........ Country risk c... .jaiibcaiibmocktest.. (ii) Middle Office. operational risk d.. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m How many countries have been placed in Restricted Cover Group I and how many in Group II? st .. 30th Ans .........com.... te ......com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail.... (i) Front Office.. www..... 10th c.. (iii) Back office....onlyforbankers. Systematic risk m Ans .......com.... 15th d.........www.. risk can be controlled by putting in place state of art system. ca a.. 13 c..... 20.. 7 b.. 10.....com [email protected] Sight bills drawn under Import letters of credit...........b ..com. SGF d...com....... if not paid by the .. [email protected] .c ... day.... do not maintain the overall risk of Treasury portfolio and monitors the liquidity and interest rate risks. 7th b..c o a. admin@jaiibcaiibmocktest.. 21... specified contingencies... 15 d.. oc k a... 9 Ans ..jaiibcaiibmocktest.. w w w a......com.. a... 20... ............ Only (i) and (ii) ………………………………………………………………………………………………………………………………………………………………… www................ RMC iib Ans ......com.onlyforbankers..c .......com.... factoring b......com... a.com... SEBI... 1 b.. The delivery period in case of option contract can not exceed beyond ..c .........jaiibcaiibmocktest..com.. www..c o m b.....ja For gold card status holder exporters. www.. ca iib a...... (ii) and (iii) Ans .............. 0... oc k te a..... to facilitate financing of medium term export bills through ..... 1. 120 b.....d .. 09994452442 115 ...com murugan0501@gmail...... www.. forfeiting c.. admin@jaiibcaiibmocktest......... 365 Ans ...........www. factoring ………………………………………………………………………………………………………………………………………………………………… www....... (i).... Exim bank......... 3 d.5 c... admin@jaiibcaiibmocktest..... ...... Exim bank..onlyforbankers..a . 2. 360 d... days........... m Banks are allowed to charge interest on PCFC and EBR for 180 days not exceeding __% over the benchmark (LIBOR /EURO LIBOR/EURIBOR).. 09994452442 ………………………………………………………………………………………………………………………………………………………………… st ...5 b.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected] .. 2.......com.. the concessive rate of interest on post shipment rupee export credit may be extended for a maximum period of ..0 d..... RBI has permitted ... 2 c..5 iib Ans ....jaiibcaiibmocktest..bankpromotionexams.com.. 4 Ans .. Only (ii) and (iii) d.com.....bankpromotionexams.. month...... Only (i) and (iii) c....com. w w w a.....com.... 180 c. www..................onlyforbankers.. . www...6000 = -2000 (loss of Rs. forfeiting st . Profit of Rs.36000 ....... 200 × 180 = 36000 But he has to paid Rs..bankpromotionexams. 09994452442 116 .jaiibcaiibmocktest.. 30 per share to buy put options....b ... www.... [email protected]... 130 and shares of B were priced at Rs... 100 having maturity after 03 months for Rs. 4000) w w w .ja Second one is a put option.. iib ca iib First one is a call option..com....40000 .jaiibcaiibmocktest.. He will sell 200 shares of A at a price of 200 Total value of shares is = 40000 Then he will buy the total shares in the market at a price of 180... so it is assumed that.onlyforbankers. 20 and also buy a put option for 200 shares of B with strike price of Rs...com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected]. 4000 b. Loss of Rs. 2000 c. 30... 4000-2000 = 2000 (Profit of Rs. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m d. so it is assumed that..... Loss of Rs. 4000 d.. =30 × 200 = 6000 So profit in this transaction will be 40000 .bankpromotionexams. 2000) So taking both the transactions.. te Mr. shares of A were priced at Rs. ………………………………………………………………………………………………………………………………………………………………… www.......com.. 200 having maturity after 03 months for Rs. IRDA.b m Explanation. 180.. Profit of Rs..8000 =4000 (Profit of Rs.... On maturity.com.. 2000 Ans ... 400 × 130 = 52000 But he paid the premium for call options @ 20 × 400 = 8000 So profit in this first transaction will be 52000 ....com.onlyforbankers....www.. What is the profit/lost for the individual on the transaction (without taking the interest cost and exchange commission into calculation)? oc k a......... www..c o Ans .. He will purchase 400 shares of A at a price of 100 Total value of shares is = 40000 Then he will sell the total shares in the market at a price of 130....com..... www. Raj purchases a call option for 400 shares of A with strike price of Rs.. 2000) . [email protected] murugan0501@gmail. ..com.. www..jaiibcaiibmocktest. Term loans carry fixed interest rate . SB an d TD are affected by change in interest rate.. Rate sensitive assts of the bank are Ans . current account deposit 30000.. term deposit.20000. negative gap c. 85000 d.. 10000 d.com. saving bank deposit 3000. positive gap b.onlyforbankers.. none Ans . 60000 d. zero gap w Ans . investment-15000. Cash credit .. bill purchased and investments are affected by change in interest rate.. 75000 c..onlyforbankers. marginal gap d. 7000 c. bills purchased =-20000.com murugan0501@gmail.. www..bankpromotionexams. reserves-6000... 63000 b.. www... term deposit 30000 and borrowings 3000 on the assts side the cash -6900.. 1000 b....bankpromotionexams..... 09994452442 117 .. Cr) capital 1000.b .....a m A Rate sensitive liabilities of the abnk are oc k te a.jaiibcaiibmocktest. 09994452442 ………………………………………………………………………………………………………………………………………………………………… st ..com.ja a. none ca iib a.b w w Tier-I capital of the bank a.. none Ans -c iib The above bank has ... Earning assets out of total assets are 90000 cr.. Total-100000...com.com.com... admin@jaiibcaiibmocktest.. ………………………………………………………………………………………………………………………………………………………………… www.www...c o m The balance sheet of x bank provide the following information as on 31 mar 2013 Rs . bal with banks-15000.. cash credit. term loans-20000 and fixed assets 3100.com.com. ..com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail.... admin@jaiibcaiibmocktest. 55000 b.. 93000 c. www. ... 4.com... oc k a.... [email protected]......... Long-term Liabilities d..com..... Option b....000.. Speculation te Ans .................... Current Assets b... Future Option iib m Ans ..com... 09994452442 118 ....com......... www. admin@jaiibcaiibmocktest.... www............ www. ………………………………………………………………………………………………………………………………………………………………… www.onlyforbankers... Swap d...000 c... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Taking advantage by selling and buying of a currency in two different markets to take advantage of price differential prevailing at these markets is called as .... None of the above ....com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail........ Arbitration c.... Hedging b...c ....com [email protected] ....... ABC's balance sheet of December 31 will show a liability of a...bankpromotionexams... Notes Payable could not appear as a line on the balance sheet in which classification? iib ca a... None of the above Ans – c . www...com..onlyforbankers. Right to sell at a fixed price on or before a fixed date in an option is called as ......... 40.www.......c o a..80..... hired Juanita Perez to begin working on January 2 at a monthly salary of 40...bankpromotionexams. w w w On December 1.........com. No Liability d... Put Option d...jaiibcaiibmocktest............jaiibcaiibmocktest....com. Call Option c..........000 b.. Current Liabilities c.... ABC Co..... st ..ja Ans – a .. .............. 10 c...... moderate risk Ans .... low risk c...onlyforbankers. [email protected].... OTC Ans ..com..com...... ca iib a... Mismatch risk c. oc k a....... it faces .....com......d .com [email protected] Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail.... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m ECGC of india classifies the country into seven categories.. Liquidity risk iib A bank funds its assets from a pool of composite liabilities... www..bankpromotionexams..... 21 d.....a .......onlyforbankers.d . Trading in currency and interest rate derivatives is restricted to ...... 09994452442 119 ......... Gold c. st .. www............. insignificant risk b........jaiibcaiibmocktest.. www..ja Ans .....com..... Cash b....... individuals ………………………………………………………………………………………………………………………………………………………………… www. 30 m Ans .. Apart from credit and operational risks. www....... moderately low risk d.. th day from the due date / notional due date..........www.. .......com..... Basis risk b...... in that B2 indicates ........... Which of following instruments not eligible for Credit risk Mitigation? w w w a.... te Export bill is generally crystallized on ......jaiibcaiibmocktest..... a.. Life Insurance d.. admin@jaiibcaiibmocktest... 07 b.c o a....d .bankpromotionexams...com....com... Market risk d..... . Export Credit Agency (ECA) c........c ...... Which of the following is not one of them? oc k te a..jaiibcaiibmocktest.. it would result in a .......000 per crore of face value b.....bankpromotionexams.com murugan0501@gmail............ a......... profit of Rs 16..com. [email protected]... Internal Rating Based (IRB) b...... options d.......... 09994452442 120 .... Risk Weighted Assets d......jaiibcaiibmocktest. loss of Rs 16..... www. If the yield on a bond with BPV of 2000 declines by 8 BPs. m Standardized Approach allows banks to measure Credit Risk in a Standardized manner based on ........ w .. volatility d...... authorised banks c.......... swaps Ans .com... www... External Credit Assessment.......d ...... www... none of these ………………………………………………………………………………………………………………………………………………………………… www..... futures c.... iib _______ is the variability of the price.....com..com.c o m b...onlyforbankers.... ca iib a.... There are basically three kinds of derivatives... forward contracts b.onlyforbankers. deal c... swap b....com. Ans ... duration w w Ans .ja a.b .... corporates d. 09994452442 ………………………………………………………………………………………………………………………………………………………………… st .bankpromotionexams.. none of these Ans ..........com.....www.....b .... upward or downward. www.. neither loss nor gain d..........000 per crore of face value c....com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail..... admin@jaiibcaiibmocktest.. none of these w Ans ...... admin@jaiibcaiibmocktest... monte carlo simulation method c.. all of these te Ans ..... www.bankpromotionexams.... www. Both (i) and (ii) In which method of calculating VaR...com....com..............com....... Only (ii) c..www.................com.................. monte carlo simulation method c.b ....onlyforbankers.com..ja iib a......a . correlation method d........jaiibcaiibmocktest...... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Ans ..... w w Under advanced IRB.... Either (i) or (ii) d..... none of these Ans . www......... suprvisor c.com. www... Only (i) b.. (i) Held-To-Maturity.........jaiibcaiibmocktest.... oc k The investments on the securities made to earn profits from the short-term price movements are classified under . admin@jaiibcaiibmocktest... historical simulation method b...... either of them d......onlyforbankers.. ....... (ii) Held for Trading ca Ans ................com murugan0501@gmail................ historical simulation method b..... who provides the inputs on the M? a........ the change in the value of a portfolio is calculated using a sample of randomly generated price scenarios. correlation method d.b ......c o Which of the following method is used to calculate VaR? a....... st .com.. iib m a.com.. 09994452442 121 ..d ..........bankpromotionexams.c ... ………………………………………………………………………………………………………………………………………………………………… www.... bank b.....com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail....... There is no default in payment of interest and installment in the term loan and bonds.......onlyforbankers.bankpromotionexams.. st ..c o a......... 4. b..... w w Under Standard Approach retail and SME exposures attract a uniform Risk weightage of .com. chain rule Ans ..20 Crores c...com....com.. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Under floating exchange rate... None of these w Ans – d .. iib m a.......com..........com. 100% Ans – a ..... www....... www.20 = 19.....com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail. 50% c............ 15 Crores as on 31-03-2015...com......d = 15+3+1.. 1.20 Crs is required to be classified as NPA.. As on 31-03-2015..20 Crores As per basel-II norms which one is not correct? . 85% d... www...20 Crores b.....com..bankpromotionexams. What will be the amount that will become NPA on account of this company? ca Ans .......... [email protected] Crores d... Rs... 16....... Tier-II capital is restricted to 100% of tier-I capital b...... market rate b..onlyforbankers............ja iib a. Rs... for a particular currency....jaiibcaiibmocktest.... the CC account with o/s balance of Rs 1.....com. Tier–III capital will be limited to 250% of tier–I capital d... supply and demand factors c. The bank has also subscribed to the bonds issued by the borrower company amounting to Rs.... Rs. floating exchange rate system d.jaiibcaiibmocktest... the value of the currency is decided by . 09994452442 122 .....20 . oc k te A company enjoys cash credit account with a bank.. Long term subordinate debit may not exceed 50% of tier I Capital c. 19..............b ...... It also has a term loan account with o/s balance of Rs.... Rs.... 75%. 3 Crores..... [email protected] [email protected]..... a. ………………………………………………………………………………………………………………………………………………………………… www... www.. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m ABC Co.....000.00...com... Both (i) and (ii) ca The securities contracted basically on account of long term investment relationships or for steady income and statutory obligations are classified under........com...... 60 c.bankpromotionexams....... admin@jaiibcaiibmocktest....... www.......... iib m Ans – b ...com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail.... www. 2..00.........jaiibcaiibmocktest....... 3.... oc k a... (i) Held-To-Maturity.. ………………………………………………………………………………………………………………………………………………………………… www..... days.......000 d.... 30 b..onlyforbankers.... w w w Concessional rate of interest in post shipment finance is valid for first ........... has current assets of 5..onlyforbankers.000...com..... c. 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Per day for which such contravention continues.. may be imposed......... iib Ans . 2000 ca Under FEMA.... m a..com.... Liquidity Risk b. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Where the results into a banking or financial crisis for the entire system on account of failure of a large bank...................... Settlement Risk c..bankpromotionexams.ja a......jaiibcaiibmocktest...... DGFT iib ....c o a.jaiibcaiibmocktest... www.. w Ans ........b ....... which may extend up to Rs.......com... Legal Risk te Ans .com... 1000 d..... admin@jaiibcaiibmocktest......... 500 c.... in case of continuing contravention an additional penalty.. it is called st ... for contravention of any direction or failure to file any return under this act. www.. ………………………………………………………………………………………………………………………………………………………………… www.www..onlyforbankers... 09994452442 124 ...... NCFM b........... Systematic Risk d......... NRO Ans ........com....com.com.c ..a/c with any authorised...com..........com.... RFCD d...c .... a....com murugan0501@gmail.. IRDA c.onlyforbankers.... NRE c... oc k ECGC provides credit insurance for export allowed by banks/exporters its policies and guarantees fall under the purview of . w w Un-spend foreign exchange can be deposited by the resident in the ... www.. ......com...onlyforbankers.. ca a.....com murugan0501@gmail.... once in a qtr b........b ....bankpromotionexams..c ......b ...... risk mitigation d. www. Ans ...... www...... admin@jaiibcaiibmocktest... swap b....... www....d .....onlyforbankers.......... RBI Ans . once in a yr d.www..............com........ risk measurement c. None of these Ans ....... Central finance ministry b.bankpromotionexams. pre-settlement ………………………………………………………………………………………………………………………………………………………………… www. Interest cost of funds locked in a trading position is called ... Central govt d. risk pricing b. once in half yr c..... Ministry of commerce c.........com......... a..... w w w a..jaiibcaiibmocktest. st .....com...com.. Negotiable instrument d.. None of these iib Debentures are governed by ......... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Govt security are issued by .com....jaiibcaiibmocktest. www.. admin@jaiibcaiibmocktest...... iib Ans .. Company Law c... ...ja All exposure limit are reviewed ... m oc k a......... risk control te The basis point value is associated with ...com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail..................... 09994452442 125 ..... Law of contract b.com..com..c o a.......... ...... 60 c.. www.... Cross Rate d.........c . ...bankpromotionexams...... www. 7 b..com. te a............ 30 b............. a...onlyforbankers....... 09994452442 126 ... ca Ans ......onlyforbankers.. Speculation st .. carry d........ Variable Rate iib Who publishes prime rates for major currencies on the monthly basis.. admin@jaiibcaiibmocktest.. Ex-im bank c... 120 oc k Ans ...... 90 d................ www... www.bankpromotionexams..com murugan0501@gmail... it is called .a .com. FEMA w w w Ans ..com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail. FEDAI d..... from the due date/notional due date...... Held for Trading Securities are normally sold in .....com.. 10 c..com....c ........c . [email protected]...... iib m a..www.. Export bill is generally crystallized on ... 21 d..... days.com......jaiibcaiibmocktest... Direct Rate b. When Foreign currency is fixed and value of home currency is variable.... Indirect Rate c....com.. 30 Ans ..................d ………………………………………………………………………………………………………………………………………………………………… www......jaiibcaiibmocktest.. RBI b.....c o Ans .ja a. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m c..com... .... (i)... Risk absorption capacity b. run on the bank d.. www.....bankpromotionexams.... Only (i) and (iii) c......jaiibcaiibmocktest.. 09994452442 127 .www.........com....... liquidation of the bank b...... Only (ii) and (iii) d.....com.......d .. (ii) and (iii) ca A situation where the depositor of a bank lose confidence in the bank and withdraw their balances immediately.....c o m Full fledged money changers are the firms/ organizations authorized to undertake ....onlyforbankers...... m a.... www. Only (ii) c....com..com.. Risk appetite Ans . [email protected] murugan0501@gmail. Both (i) and (ii) te Ans ......com.... ………………………………………………………………………………………………………………………………………………………………… www. failure of bank c..d ........ Risk taking capacity d... oc k Which of the following is correct regarding classification of correspondent accounts? (i) Nostro: Our account with you....bankpromotionexams.... Risk aversion capacity c.ja iib a.. out of the money w Ans ....onlyforbankers. coins and travellers' cheques from the public (ii) sale of foreign currency notes.......com.. coins and travellers' cheques to the public a....com. (i) purchase of foreign currency notes.... ..com..jaiibcaiibmocktest... Either (i) or (ii) d............ is called ..c .... 09994452442 ………………………………………………………………………………………………………………………………………………………………… st .. (iii) Loro: Their account with them iib Ans ...... w w The capacity of a bank or business organization to absorb losses on account of market risk.............. admin@jaiibcaiibmocktest.. www..d ............ Only (i) and (ii) b........com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail..... (ii) Vostro: Your account with us........... Only (i) b. www... a.. .... none of these Ans .b .....jaiibcaiibmocktest. the future period for which the price is worked out.c o a. 09994452442 128 ..com............ 21 te Ans . Central Banks b. d.com.... w w w The Forward price of a currency against another can be worked out with the following factors.... such risk is called …… iib Ans .... Market Risk d........com..onlyforbankers...bankpromotionexams...com. Commercial Banks c... www. www.. www. c..... m a.. The Interest rate differentials for the currencies... days of effecting the shipment of goods by AD.............www.......c ..ja Ans ........com...... Foreign banks d... buyer Risk c.....com................. ………………………………………………………………………………………………………………………………………………………………… www.... admin@jaiibcaiibmocktest... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Custom certified copy of invoice to be obtained and to be forwarded to RBI with in ..bankpromotionexams.. oc k On acceptance of an order for supply of goods to the buyer.com.......b ...com......d ..jaiibcaiibmocktest..e...... Investment Funds/Banks .. Spot price of the currencies involved b..com murugan0501@gmail.... admin@jaiibcaiibmocktest. 10 b..... the seller may face the situation of non acceptance of goods by the buyer.. 15 c... Pick up odd one a... The term i.........onlyforbankers....... 20 d.. seller Risk b....... www....... st .....com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail. Shipping Risk ca Foreign Exchange markets participants are except one iib a... c ... SEBI Ans .... Who issued Internal Control Guidelines (ICG) for Foreign Exchange Business ? w w w a. 1981 c... te Since 1973.......... www..jaiibcaiibmocktest. 09994452442 129 ..com. iib ca a.www. Valuer Compense b.com......c o a... a & b d............ so that no gain or loss of interest accrues to either party is called as....b ... [email protected]... Supply and demand factors c......com.......bankpromotionexams......... RBI c........ ………………………………………………………………………………………………………………………………………………………………… www..........d . Floating exchange rate system d... 1990 d......com...... www.. none of these ... admin@jaiibcaiibmocktest. Chain rule Ans ..... www... oc k a..jaiibcaiibmocktest.onlyforbankers....... simply here and there c.. Market rate b..... FEDAI b..... The payments made in same day... 1993 iib m Ans ...........ja Ans ........ st .......onlyforbankers. the world economies have adopted floating exchange rate system.......com.......for a particular currency... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Under floating exchange rate.bankpromotionexams........b ...... EX-IM bank d..com...com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail.. 1973 b..... India switched to a floating exchange rate regime in . www......com..com murugan0501@gmail...... the value of the currency is decided by .... .......jaiibcaiibmocktest.. Newyork b.. Seller Risk b.... switzerland .com. Swift b.. m a. 09994452442 130 ........ currency Ans ...onlyforbankers...a .....b .............c ..for funds in another currency at an agreed rate and on arranged basis.. Buyer Risk c...... Arrangement. currency b.. To exchange funds in one ... currency c.....com.. Brussels d...www...... CHIPS te Ans ..com.......... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m If Mr....bankpromotionexams.. www.com..... Contract. currency..... ………………………………………………………………………………………………………………………………………………………………… www.... the risk to the buyer under such a situation is called: iib Ans .. www.. www...... Paris c....com murugan0501@gmail...... Alex want to send money to his brother robin in US in Federal Reserve bank through FEDWIRE by using ............com.... RTGS c....d ...onlyforbankers..c o a....com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail.. Shipping Risk ca The International Chamber of Commerce (ICC)was established in 1919 headquartered at iib a..com...jaiibcaiibmocktest..... admin@jaiibcaiibmocktest......... st . w w w Foreign Exchange transaction is a .......ja Ans ...... ABA d...com.... code/number...... www....bankpromotionexams... Currency and arrangement d..... admin@jaiibcaiibmocktest.. oc k When seller fails to ship the goods on receipt of advance payment..... a. Market Risk d...com...... www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected], [email protected], 09994452442 ………………………………………………………………………………………………………………………………………………………………… st .c o a. A deficit in balance of payment leads to a stronger currency b. A higher economic growth leads to a higher import c. high interest attract foreign investment and local currency appreciated in the short run d. steady political conditions lead to a steady currency. m Which of the following is not a correct statement. Ans - a ............................................. te All foreign currency inward remittances upto ......, as per FEDAI guidelines, be converted immediately into Indian Rupees? oc k a. Rs. 50000 equivalent b. USD 10000 c. USD 5000 d. £ 1000 iib m Ans - c ............................................. In UCPDC-600 what does 600 mean? iib ca a. It has total 600 rules b. It is group of 600 countries c. Publication no 600 is the latest version d. It is amended 600 times since implemented .ja Ans - c ............................................. All rates quoted in foreign exchange are generally ...... rates. w w w a. Spot b. Tom c. Forward d. Value Ans - a ............................................. The schemes of ECGC are governed by ...... a. SEBI ………………………………………………………………………………………………………………………………………………………………… www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.com [email protected], [email protected], 09994452442 131 www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected], [email protected], 09994452442 ………………………………………………………………………………………………………………………………………………………………… st .c o m b. RBI c. IRDA d. ICC Ans - c ............................................. te Under the financial guarantees, banks are required to file with ECGC, a notice of default within ...... months from the due date or ...... month(s) from the date of recall, and the claims are to be filed within ...... months from the date of lodging default notice. oc k a. 2, 3, 5 b. 4, 1, 6 c. 4, 2, 3 d. 2, 4, 6 m Ans - b ............................................. ca a. open cover countries b. closed cover countries c. restricted countries d. None of these iib For a majority of countries, the corporation places a limit for covering political risks, such countries are referred to as ...... iib Ans - a ............................................. .ja Exim bank has been permitted by RBI to facilitate financing of medium term export bills through ...... w w w a. factoring b. forfeiting c. both of these d. none of these Ans - b ............................................. When the delivery under forex deal is completed on the 2nd working day following the date of contract the rate is called a. TT Rate ………………………………………………………………………………………………………………………………………………………………… www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.com [email protected], [email protected], 09994452442 132 www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected], [email protected], 09994452442 ………………………………………………………………………………………………………………………………………………………………… st .c o m b. Bills Rate c. Forward Rate d. Spot rate Ans - d ............................................. Forward Rate=Spot rate (+) ......(-)..... oc k te a. Discount, Commission b. Premium, Discount c. Premium, Commission d. Discount, Premium Ans - b ............................................. ca a. USD 1.00 million, 5, 1 b. USD 2.00 million, 5, 2 c. USD 1.00 million, 10, 3 d. USD 2.00 million, 10, 4 iib m To grant extension of an export bill beyond 12 months from the date of export, the total export outstanding of the exporter should not be more than USD ...... or __ % of the average of export realizations during the preceding __ years, whichever is higher. iib Ans - c ............................................. .ja In case of Rupee bills, the effective date of realization of an export bill is the date of ...... in banks's ...... account. w w w a. debit, vostro b. debit, nostro c. credit, vostro d. credit, nostro Ans - a ............................................. On the recommendations of the Finance Manager, the board of directors will accept the project if ...... a. Benefit Cost Ratio is less than one b. Net Present Value is greater than zero ………………………………………………………………………………………………………………………………………………………………… www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.com [email protected], [email protected], 09994452442 133 www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected], [email protected], 09994452442 ………………………………………………………………………………………………………………………………………………………………… m c. Internal Rate of Return is less than cost of capital d. Pay Back Period is greater than target period st .c o Ans – b ............................................. The balances in temporary foreign accounts (which are opened by participants in international trade fairs / exhibitions) have to be repatriated to India within ...... month from the ...... of the exhibition / trade fairs. oc k te a. 1, opening b. 1, closing c. 3, opening d. 6, closing Ans - b ............................................. iib m If there is an assets of Rs. 150 only in the doubtful-III cat and the realization value of security is Rs. 100 only, what will be the provision requirement. ca a. Rs. 50 b. Rs. 95 c. Rs. 110 d. Rs. 150 iib Ans – d .ja Since it a doubtful-III Cat asset, 100% provision is required for the entire asset. So, 150 is the right ans. ............................................. w w w Cumulative negative mismatches maximam charges taken for the period of 8-14 days in ALM risk will be ...... a. 5% b. 10% c. 15% d. 20% Ans – c ............................................. ………………………………………………………………………………………………………………………………………………………………… www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.com [email protected], [email protected], 09994452442 134 www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected], [email protected], 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Advance against export bill, when the shipment is already made, is called ...... st .c o a. PCL b. PCFC c. PSEF d. EBRD Ans - c ............................................. te Concessional rate of interest for post-shipment finance is allowed for __ days in case of demand bills. oc k a. 21 b. 25 c. 90 d. 180 m Ans - b ............................................. iib If there is an assets of Rs. 120 only in the doubtful-II cat and the realization value of security is Rs. 100 only, what will be the provision requirement ? iib ca a. Rs. 40 b. Rs. 50 c. Rs. 60 d. Rs. 70 .ja Ans – c Since it a doubtful-II Cat asset, so 40% realization value of Rs. 100 i.e Rs.40 and 100% of short Fall that is 120-100=20 so ans will be 0+20=60 ............................................. w w w Outstanding export dues can be written off by exporters and the prescribed period of realization can be extended provided the aggregate value of such exports bills written off does not exceed ...... % of the export proceeds during the ...... year. a. 5, 2 b. 1, financial c. 10, 3 d. 10, financial Ans - d ............................................. ………………………………………………………………………………………………………………………………………………………………… www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.com [email protected], [email protected], 09994452442 135 ........onlyforbankers.. To cover uncertainties related to the market d... Which of the following is a category or element of the balance sheet? iib ca a. Prepaid Insurance c.jaiibcaiibmocktest. vostro d..com [email protected] ..com....... [email protected] Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail.. debit. debit........ in the banks's ............... Basel-II prescribes that the housing loan portfolio shall be given the risk weight of.......... www..com.... Losses ... All of these Ans – b ...............c o a... nostro c. admin@jaiibcaiibmocktest...... credit.......com.. Gains c......bankpromotionexams. Which of the following is an asset account? w w w a.. 100% ………………………………………………………………………………………………………………………………………………………………… www..com...... Liabilities d..ja Ans – c ........ credit.... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m In case of foreign currency bills... a...onlyforbankers........ Expenses b.. Accounts Payable b.com....com.. a....jaiibcaiibmocktest.... the effective date of realization of an export bill is the date of .. www...com.. None of these iib m Ans – c ..... www.....www...... 09994452442 136 ........... vostro b.........bankpromotionexams. Unearned Revenue d... account.....com...... To cover total credit and market risk c. nostro te Ans . st .... To take over other banks b... www.... oc k Buffer capital means. onlyforbankers..... Interest rate Risk can be reduced by ... 09994452442 137 ............. www.. 75% d.bankpromotionexams...com.. commercial banks.ja If the payment is to made on a deferred payment arrangement...... An irrevocable LC..e. ca iib a.......... PCL Ans ....... Accepting Collaterals b... Entering into Forward Contracts c..........bankpromotionexams. 1 day....com.... 14 days m Commercial papers are short-term debt market paper issued by _____........ 6 months.com.... iib Ans .....onlyforbankers...c ....com [email protected] ..com............ 10000 b..jaiibcaiibmocktest....... 09994452442 ………………………………………………………………………………………………………………………………………………………………… st . Diversification of Advances Ans . a.. PCFC b......www... 1 year d.... trade credit d. it is treated as ..... Derivatives of Interest Rate Swaps d... 10 years b.c o m b. should be obtained if the amount of advance remittance (for import of goods) exceeds USD .. 35% c. with a minimum maturity of _____ and maximum maturity of .com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail. export credit c... None of the above Ans – c .com.com. Select the best combination.. financial institutions.. for a period exceeding 6 months and up to 3 years. www. RBI. www... admin@jaiibcaiibmocktest... w w w a........ admin@jaiibcaiibmocktest... 20000 ………………………………………………………………………………………………………………………………………………………………… www.. oc k te a...jaiibcaiibmocktest.................... 1 year......com.......c .... www.. corporates... 7 days..... 1 year c............ .. inter alia..com....... i... .......jaiibcaiibmocktest.com..... An FCNR deposit received from NRI in US $ can be viewed by the bank as....c ........com.. none of these oc k Ans ...d ...com...... borrow c... In reverse repo transaction..jaiibcaiibmocktest...... none of these w w w Ans .........com... futures c....com.......... iib Which of the following cannot participate in auction of T-bills? ...... ………………………………………………………………………………………………………………………………………………………………… www........ financial institutions d...com.... Rupee-dollar deposit d.. Euro-dollar deposit Ans – d ..........com murugan0501@gmail. swaps m A contract where the buyer has a right but no obligation to exercise the contract is known as . admin@jaiibcaiibmocktest.... 100000 st ..... options d. banks c.a ...bankpromotionexams...com..c o Ans ... www... te a....... 50000 d. www.. lend b.. www...........d . ca Ans ..bankpromotionexams.onlyforbankers...com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail.. forward contracts b..............onlyforbankers............. do nothing d....www...........ja a..com.. iib a....... admin@jaiibcaiibmocktest............ 09994452442 ………………………………………………………………………………………………………………………………………………………………… m c.................... individuals b...... www... 09994452442 138 . banks ____ from / to RBI.. Euro-rupee deposit b...... Petro-dolllar deposit c...... a........ Indirect exchange rate c..................com.com murugan0501@gmail.. Debit b.. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m What is the normal balance for an asset account? st .. Either a or b d.......ja Ans . www. Pre-settlement Risk d. Direct exchange rate b....... "Your account is with us" refers to .... it fails to settle... NOSTRO b..... admin@jaiibcaiibmocktest...... What kind of risk has arisen? oc k a... Credit c...... settlement Risk b. Fixed exchange rate d....... Mirror ........com...com.......com..com...........com..com. [email protected] . Mismatch Risk iib m Ans ... www.... Floating exchange rate Ans ... w w w a... account.......... LORO d.jaiibcaiibmocktest..jaiibcaiibmocktest...onlyforbankers........... ………………………………………………………………………………………………………………………………………………………………… www..........www.. www..... iib ca a...onlyforbankers. Due to delay in receipt of expected funds in nostro account..........c o a.. None of these Ans – a .........bankpromotionexams..... te A Party enters into a contract for sale of dollars and receives the rupees from the counter party.b . www............. Liquidity Risk c.......bankpromotionexams.. The value of the currency is decided supply and demand factors for a particular currency under......a ... VOSTRO c........com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected].... 09994452442 139 . . i. At the given rates.... NOSTRO b.. at which we can get GBP at market rates.3965/75....jaiibcaiibmocktest.. Sale Price c...... Rate would be 77. 55..d iib a. 77.onlyforbankers...com murugan0501@gmail. (1..jaiibcaiibmocktest.. The GBP/INR rate would be 77........ (Bill Selling Rate).com.www...1140 + 0.. 76.com.. st ....3975 USD and USD can be bought at Rs. Thus the interbank rate for the transaction can be taken as 77. ………………………………………………………………………………………………………………………………………………………………… www.. USD/INR 55...2682 for effecting import payment..1140...1140 d.. This price is called as ..... www.. 09994452442 140 . www....000.com... Strike Price "Their account is with them" refers to .. LORO d.... 76.18).... ignore cash discount/premium.... GBP/USD 1....18....1140. Mirror te Ans . VOSTRO c.. [email protected] .. Add Margin 0. iib m Ans ..... To buy GBP we need to give USD and to get USD..1542 = 77...com. GBP can be bought at 1......onlyforbankers...... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m An option may be exercised and the underlying stock may be bought or sold at a price. Compute Rate for Customer. ...00 by TT Margin 0.. account.3975 x 55..... we need to buy GBP...16/18.....c ... 77.. www.... ...ja Ans ..........1542. we need to buy USD against Rupee.com.com...... www..5480 b.. ca Retirement of import bill for GBP 100. Buy Price b...com.. oc k a...20%..com...bankpromotionexams.e....com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected]% 0..bankpromotionexams. Buy or sale price d.2682 Explanation : w w w For retirement of import bill in GBP. sell Rupee......c o a.6985 c.. admin@jaiibcaiibmocktest. Operational ………………………………………………………………………………………………………………………………………………………………… www..com.............. te A shadow account of the NOSTRO account maintained by the opening bank is called as ... Premium c. Loss Probabilities c....... Profit Potential and probability of occurrence d......c . www. Capital Charges Ans ... www.ja Which is not to be taken into account for pricing? w w w a...... Operating Expenses b..... www. Which type of risk arises When banks have more earnings assets than paying liabilities ? a... Potential Losses and Profit Potential b.. NOSTRO b........com.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail.. st ..com.jaiibcaiibmocktest........ 09994452442 141 ..... iib Downside potential has 2 components......com....... Margin Ans ..www...jaiibcaiibmocktest.......... Liquidity b.d ..c o a.......... ... Potential Losses and probability of occurrence c.com.......... oc k a.onlyforbankers........com. admin@jaiibcaiibmocktest.. LORO d... VOSTRO c. www...com...b ... ca a............. Charge b.... Mirror m Ans . Profit Probabilities d...com murugan0501@gmail.... They are ..b . Discount d...... None of the above iib Ans .....bankpromotionexams.bankpromotionexams. [email protected]. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m The cost one pay for an option is called as .....................com..... account... .I.b ..com [email protected] ... a...............II.com...com.com.. ca a... RBI has permitted banks to borrow and invest through their overseas correspondents........... TIer .. open..onlyforbankers.... The residual position of the bank at the end of the day ....... 09994452442 142 ... position and it involves ...I.II. liquidity iib m Banks generally do not maintain a stock of foreign currency for the purpose of merchant business...onlyforbankers.com.. capital.....com. 25.......jaiibcaiibmocktest..... 10 Ans ....... TIer . www. middle office d... Interest rate d....... 10 d. Market st .................com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail... oc k te a......... risk.overbought or oversold .com..... funding d. market b..c o Ans .. exchange c..... or USD . www.. w w w a..... swap ………………………………………………………………………………………………………………………………………………………………… www..bankpromotionexams.. iib Ans .. whichever is higher..... Treasury administration c. 50. admin@jaiibcaiibmocktest.. open. closed.. 1 b.is known as ...... [email protected]..... none of these Ans ..... open. in foreign currency subject to a ceiling of ...... % of their ... 25..ja The providing of information to the management (MIS) and to implement risk management systems is created by ............... ......bankpromotionexams.....d .. 5 c..... 50.. www.. The TOD (today) and TOM (tomorrow) rates are generally quoted at a discount to the . TIer .. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m c......www. million. Tier ......a . www..... rate............. Dealing room b. .com.. www...jaiibcaiibmocktest........ www... all of these Ans ...com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail..... admin@jaiibcaiibmocktest...... Statements 1 and 2 are correct c......com...com. www. ………………………………………………………………………………………………………………………………………………………………… www...... Loss provision m Capital charge component of pricing accounts for ca Which of the following is True? iib a.... 09994452442 143 . Low-risk investment b.com.com.www....... Investment in Post Office time deposit is oc k te a.... www. 09994452442 ………………………………………………………………………………………………………………………………………………………………… st ... admin@jaiibcaiibmocktest..bankpromotionexams..........jaiibcaiibmocktest.... All the statements are correct b....com..... Statements 2 and 3 are correct d.. iib 1...... downside potential d........... Internal generation of capital 3.. repo Ans ............d .........d ........ Statements 3 and 1 are correct .........com..bankpromotionexams.. Cost of capital 2....c o m b.d ........ spot d.......com.........onlyforbankers..... Medium-risk investment c. Zero-risk investment Ans ...ja Ans . forward c. sensitivity b... w w w Risks can be measured based on ......onlyforbankers...... a...... volatility c. High-risk investment d.....c ...com murugan0501@gmail...... .... it is possible to estimate .......bankpromotionexams. Market liquidity risk Ans ..com.... present c...2015 ………………………………………………………………………………………………………………………………………………………………… www.onlyforbankers. future d.... repo d.............04.. www.com. What is the risk that the bank is facing? w w w a.jaiibcaiibmocktest...b .com.. www.bankpromotionexams.................. 09994452442 144 . lending. none of these iib Derivates refer to _____ price. te Absorption of liquidity...com.. 25.... reverse repo iib Ans ...com... admin@jaiibcaiibmocktest... by RBI.. Ans . admin@jaiibcaiibmocktest...... ca a...c o a........ 09994452442 ………………………………………………………………………………………………………………………………………………………………… m With volatility...com. www....... borrowing.... Market risk b.ja A bank expects fall in price of a security if it sells it in the market...c ..onlyforbankers. upside potential b. .. past b.com murugan0501@gmail..... 21.com.... www...com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected] ..... the NTP will be __ days and NDD will be ... (date)....... none of these Ans .......2015 ..... Asset liquidation risk d..jaiibcaiibmocktest.....com.....04. downside potential c... of the target variable with a resonable accuracy................. reverse repo c.... is done through _____ from / to banks under a _____ transaction. lending..... m oc k a... repo b. Operational risk c..... st . both a and b d........ a... borrowing.www...c .... In case of a 90 days DA (Usance) bill in GBP tendered to the bank on 01... 2015 Ans .04.. m Any person who wants to make a remittance for imports.... 09994452442 ………………………………………………………………………………………………………………………………………………………………… st .. Post shipment finance in foreign currency is called .. 25.....jaiibcaiibmocktest...com. 09994452442 145 ..b .... 30....jaiibcaiibmocktest..... oc k te a. 9 d.onlyforbankers..... None of these Ans .... 12 Ans .........com.com.bankpromotionexams... 25.....com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail. 100000 iib Ans .2015 c... 3 b. www..com... PSEF ………………………………………………………………………………………………………………………………………………………………… www. www. w w w a... 50000 d......07.. 6 c.... [email protected].... .......com [email protected]... 24.com. 30..... [email protected] o m b........... a.........com.. www...d .onlyforbankers.. Concessional rate of interest for post-shipment finance is allowed for __ days in case of usance bills. 90 c...... EBRD b.... ca iib a...a ...2015 d.. 500 b.... 25 b..... 180 d...... 1000 c. www....... should make an application in form A1 to AD..04........ or its equivalent..c ........... 25... EEFC c......... exceeding USD ................com......ja The remittance against import should be completed not later than __ months from the date of shipment.bankpromotionexams...... .....bankpromotionexams. 7 d... [email protected].... iib m a.. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m d.. www.. 5 c..... 3 b...c o Ans ..b .......bankpromotionexams...ja a............jaiibcaiibmocktest......... a....... te a.33 iib If Daily Volatility is 1... 9 oc k Ans ......... www. Diversification of Advances Ans ..com.... w w Credit Risk can't be mitigated by ..c .... Crystilization b.c ...a ..........com.. ECGC classifies countries into __ categories according to the country risk... 8.............. Risk can be mitigate through ............ 9..onlyforbankers..com.....................com murugan0501@gmail... what will be the monthly Volatility ? w Ans .. ………………………………………………………………………………………………………………………………………………………………… www..22 d..com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail...... Portfolio risk d... 8.... Credit Derivatives c.. Diversification c.....com.........com.onlyforbankers....5%.. admin@jaiibcaiibmocktest... www.......com.com........ ca Ans .... b & c ...... Entering into Forward Contracts d..... PCFC st .. 9. Accepting Collaterals b...33 b......www.. 09994452442 146 ...... www...............22 c.b ..com. ... arbitrage c....com............. m a........ [email protected] murugan0501@gmail...... derivative d.. Investment in zero coupon bonds c. www.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail... Operating Expenses c.....b .com.ja Ans .onlyforbankers.... Investment in government securities b.. Zero variation in cash flow from investment d.... oc k Treasury uses a variety of money market instruments to optimize return on funds..profits accrue. Profit Probabilities d..... Investment in bank fixed deposit ..a ...onlyforbankers.c .... Corporate debt paper d......jaiibcaiibmocktest. as markets are imperfect............c ...... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m The benefit accruing to traders who play in different markets....com. st .......... 09994452442 147 .. www..............com...com... swap te Ans .... admin@jaiibcaiibmocktest. simultaneously .. Which of the following is not a money market instrument? ca Zero-risk investment implies iib Ans . is known as .... Certificate of deposit iib a....www........com.. CBLO c........ ………………………………………………………………………………………………………………………………………………………………… www.. www.... w w w Which of the following is not included in pricing ? a.... Treasury bills b........ www........ leverage b..bankpromotionexams.c o a..jaiibcaiibmocktest..........com.....com......... Capital Charge Ans .bankpromotionexams..... Cost of Deploying funds b... ......c .. Embedded option risk .. hedge d...... www... Intra-day... 2% b... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m While the exposure limits are generally left to the banks discretion.. arbitrage iib m Ans ....com.... www...c o a.......jaiibcaiibmocktest..com.....com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail... Market risk d....... www.com... [email protected] Ans .... Credit risk b..onlyforbankers............ 09994452442 148 ...........com [email protected]... admin@jaiibcaiibmocktest.. Credit risk .onlyforbankers.......... Liquidity risk c. insurance b........c .....www.. The most important and well pronounced risk in treasury is iib ca a.......... Counter party interbank exposure limits b..com.. overnight open position limit and stop loss limits d...... RBI has imposed which ceiling of total business in a year with individual brokers..com... Overseas borrowing limit prescribed by RBI Ans . oc k a. As per Basel–II norms which of the following approach is adopted in India.. swap c.......... 15% te Ans ... Select wrong match a.. Settlement and pre-settlement limits c......bankpromotionexams..c ......com... 5% c... st .......... The following limits in treasury are meant for controlling market risk w w w a.com..... 10% d.standard approach ………………………………………………………………………………………………………………………………………………………………… www... www.. Protection of risk in a transaction usually through derivatives product is called...bankpromotionexams..b .... bankpromotionexams........ Sources of funds b.. What should be value of the March/360 call as per the Black-Scholes Model? Assume that t=3 months.jaiibcaiibmocktest... Operational – basic indicator approach c.. admin@jaiibcaiibmocktest. Inflow of funds d...c o m b.... www.. Ans – b ...com. 09994452442 ………………………………………………………………………………………………………………………………………………………………… st . Market risk ... maximum loss and break-even associated with the strategy of simultaneously buying say March/340 call while selling March/ 360 call? 4. www.onlyforbankers..standard duration approach d... Show how to calculate the maximum profit.... Use of funds c... .www.....e......com murugan0501@gmail.. www. What are the relative pros and cons (i...... Stock Price : Rs. it simultaneously writes March 360 call and buys March 320/put? 5. What are the implications for the firm....com.A blank means no quotation is available oc k te a.....40 6.... What should be the value of the March/360 put if the put-call parity is working? ………………………………………………………………………………………………………………………………………………………………… www.. risk-free rate is 8 percent and the standard deviation is 0.... www.. List out the options which are out-of-the-money.... 09994452442 149 . [email protected] 2... An Asset is .....bankpromotionexams...com. None of these 1. if for instance. using (i)Feb/380 calls versus (ii) March 320/ calls ? w w w 3. None of these Ans – d .com.com.onlyforbankers..... 350 Calls Puts Strike Price Jan Feb March Jan 300 50 55 320 36 40 43 3 340 18 20 21 8 360 6 9 16 18 380 4 5 6 ...com.... risk and reward) of selling a call against the 5000 shares held....com... Feb 5 11 21 43 March 7 23 - iib ca iib m ABC Ltd Option Quotes....com..jaiibcaiibmocktest.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail..... c o 2) (i) If the firm sells Feb/380 call on 5000 shares.4207.07 σ =0..com.. www.0500) x (0. both the calls will be exercised and the profit will be { s-340-p1} – { s-360.. 15 The maximum loss will be the initial investment .18 6) If put..5000) = 0.07 + x 0.25..onlyforbankers.onlyforbankers.29...1535) = 0..320. 01765 = 353.000 now. 320 per share..com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected] – 0.. w w w ..e. 380 per share..20) = 0. p1-p2 = Rs.75 = Rs.com.000 now. we have P0 = C0 – S0 + E/ert Value of the March/360 put = 26.4207) = 0.. [email protected] x 0. 1 (net premium received) per pair of call and put..5000 + (0.40 √￣0. it will earn a call premium of Rs.0375) / 0..4404 Therefore N ( -0.. 320 and Rs.0.4801 = 0.com. However.0465) = 0.com.18 -350 + 353. 380.30 = Rs.5 The break even will occur when the gain on purchased call equals the net premium paid i.. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Solution: 1) Calls with strike prices 360 and 380 are out –of –the. 0465 d2 = 0...bankpromotionexams.4404 – 0.0500) x(0..money.0465/0..jaiibcaiibmocktest. the firm can execute the put option and ensure that its portfolio value does not go below Rs. 09994452442 150 . When s is greater than 360.call parity is working. thus limiting the upper value of the portfolio to Rs. st .5000 N (0.com.5185 N ( . 26..bankpromotionexams... (ii) If the firm sells March 320 calls on 5000 shares.p2 } = Rs.com murugan0501@gmail. 380..40 x Ö 0.2 = 0.320.5000 = 0.93 ..www..4207 + ( 0.5199 Therefore N( 0.25 r = 0. 25 = 360 / 1...com. p1 and p2 the call premia for March/ 340 and March/ 360 calls respectively.. if stock price goes above Rs.4390 = 181. oc k te 3) Let s be the stock price.e.75 C0 = 350 x 0..00) = 1..05) = 1 – 0. the call will be exercised and the stocks in the portfolio will have to be delivered/ sold to meet the obligation.0465 -0.15) = 0.0282 + 0. www.ja iib 5) S0 = 350 E =360 t =0.0.1535 Using normal distribution table N (0.. the firm will lose Rs... s-340 = p1 – p2 =5 Therefore s= Rs..jaiibcaiibmocktest.. www... N ( -0..0465/0. 380. It should however be prepared to forfeit the gains if the share price remains above Rs.com.5185 – 353. The risk however is that the firm will forfeit the gains that it would have enjoyed if the share price rises above Rs. www...25￣￣ = -0. [email protected] x 0. So long as the share price hovers between R.40)2 ln + 0. it will earn a call premium of Rs. ………………………………………………………………………………………………………………………………………………………………… www.480 – 155. i.40 350 (0.4390 E / ert = 360 / e0. 345 ca iib m 4) If the stock price goes below Rs.215.25 = ( -0.25 360 2 d1 = 0.com. ...jaiibcaiibmocktest. Interest rate of EURO is higher than interest rate of USd...com....onlyforbankers...... Accounts Receivable (asset) b... Forward rate of USD / INR is higher than spot rate.. c....000. ………………………………………………………………………………………………………………………………………………………………… www... Prepaid Services (asset) c.. a.com...... What will be the other account involved in the December accounting entry prepared by ABC (and what type of account is it)? iib Ans – a ......... d... www....com... Service Revenues (revenue) d... Domestic interest rate of Rupee is generally lower than interest rate of USd..com murugan0501@gmail. None of these Ans – b ...... none of these ..bankpromotionexams.com....com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail. correlation method d....jaiibcaiibmocktest....bankpromotionexams..... 09994452442 151 . In December ABC will debit Cash for 10.........onlyforbankers...... www.ja Ans . ABC uses the accrual basis of accounting..... Credit c....... Ans .. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m What is the normal balance for contra asset accounts? st . b. monte carlo simulation method c.c o a.. or Dollar on a forward date is worth more rupess than today.... Debit b.....com....... w w w Select the incorrect statement.www... The currency carrying higher rate of interest is always at a discount... www.com......... 10..c . m a.......................com... www. admin@jaiibcaiibmocktest... oc k te Client Jay pays ABC Co..b ........ Either a or b d.... historical simulation method b.. hence forward EURO is at a discount to USD.............. Unearned Revenues (liability) ca Which of the following methods of calculating VaR needs a variance / covariance matrix? iib a......000 in December for ABC to perform services for Jay in 45 days.com.. admin@jaiibcaiibmocktest... hence Rupee is at a discount to Dollar... ....... Account..... www......jaiibcaiibmocktest....com [email protected]... none of these Ans ..jaiibcaiibmocktest...c .. Direct Quote b.c o a.. b.. When the local currency is variable.. reconciliation etc d...... it is called as ..com... admin@jaiibcaiibmocktest.... Commercial invoice ………………………………………………………………………………………………………………………………………………………………… www.. a....... None of the above m Ans ............. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m If the strike price is less than the forward rate in case of a put option... www. Account. the option is known to be .......com.... [email protected]..... All the above Ans ... Processing of Deals. d.. A service branch to meet the requirement of customers of other branches/divisions to buy or sell foreign currency.......c ..... www...... te Which is not a function of the Mid Office ? oc k a.. Article 28 of UCP 600 deals with .onlyforbankers... Look after the compliance of various guidelines/instructions c..com... iib Which is not a function of the Forex dealing room? iib ca a....d .......... OTM d. www..com........ reconciliation etc ..onlyforbankers.com...........ja Ans .com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail........... Price Quotations d......www... Manage foreign currency assets and liabilities c...com.. Fund Manager for Nostro Accounts as also undertake proprietary trading in currencies. Home Currency c......bankpromotionexams.. w w w a....... 09994452442 152 .. ATM b..... Risk management for forex dealing operations b............... ITM c..... Processing of Deals....d .. st ... com........ Having a common dealing room b.com...c . All funds raised through deposits b.c .. 09994452442 153 . Having a common Mid/back offices c.com.....com [email protected]..... (ii) Bills Buying Rate... admin@jaiibcaiibmocktest...... iib Treasury in the normal course will manage ca a.. All the above Ans ..... www..... (iii) TT Selling Rate oc k a.... Disclaimers Ans ... admin@jaiibcaiibmocktest..... Merchant book and Trading book c.........com.. depending on market opportunities d.com........com.....bankpromotionexams...d .. www.. (ii) and (iii) m Ans .c o m b... Transport documents c..jaiibcaiibmocktest...................... a placement in Rupee denominated commercial paper to lending in USD in global interbank market and also being to source funds in global markets and swap the funds into domestic currency or vice versa... All deployment of funds through advances iib Ans ......... Insurance documents d......bankpromotionexams... 09994452442 ………………………………………………………………………………………………………………………………………………………………… st .b ..com....... ………………………………………………………………………………………………………………………………………………………………… www.....com.onlyforbankers......... ...... www........ Only (i) and (ii) b.. ALM book.... Only (ii) and (iii) d........... (i).ja What is the important operational feature of integrated treasury ? w w w a.. which of the following rates will not be applied? (i) TT Buying Rate.. Liquidity d... www....jaiibcaiibmocktest....... Only (i) and (iii) c.....com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail.. te When Nostro account of the bank is credited before the payment to the tenderer of foreign exchange. Looking for interest arbitrage across currency markets and be in a position to shift swiftly.onlyforbankers.... ....... www..a ........com. admin@jaiibcaiibmocktest... Operational risk in treasury Ans ..... iib ca a.d ...c o a. it is called .com..........www......ja Ans ...... Actual loss in portfolio b..com.... [email protected] Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail..... Indirect Rate c...c ...com... EBRD b.. www...com.....jaiibcaiibmocktest.... PCFC . Direct Rate b............. PSEF d...b .bankpromotionexams..... Both the above d.... www... Spot cum Forward Rate te Ans .....onlyforbankers... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Where the currency rate is not directly available for a particular currency and has to be worked out indirectly through some other currency....onlyforbankers.. Cross Rate d... Yield and price of a bond move a..... EEFC c......... None of these Pre shipment finance in foreign currency is called ..........com.... Probable loss in a portfolio within a time horizon at a given confidence level c...... In inverse proportion ………………………………………………………………………………………………………………………………………………………………… www....com... Foreign Exchange Regulation Act c.....com murugan0501@gmail. st ........ Which act relating to foreign exchange has replaced earlier one ? iib m Ans .............jaiibcaiibmocktest.... Loss or profit in a trading activity d....bankpromotionexams..... Value at risk( VaR) is a statistical measure to capture w w w a.. 09994452442 154 .... www.com. oc k a... Foreign Exchange Management Act b........ .............ja Why exchange rate for purchase or sale of foreign currency are most unfavourable? (i) Holding cost of currency is high......com murugan0501@gmail... ca iib a.. service centre d...com..a . Both (i) and (ii) Ans .c o m b.com.. www...bankpromotionexams...... iib Ans ...........com...bankpromotionexams.........jaiibcaiibmocktest. Globalization refers to oc k te a. (ii) Bank does not get any exchange commission w w w a.com........com........ 09994452442 ………………………………………………………………………………………………………………………………………………………………… st . www.. admin@jaiibcaiibmocktest.... Removal of all trade barriers in the world c.... commercial bank m For the organization point of view treasury is considered to be .....c . Reduction in profit potential ………………………………………………………………………………………………………………………………………………………………… www.. Only (i) b. . 09994452442 155 . Fixed rate of exchange for all currencies of the world Ans .......com... Fund management department c.onlyforbankers......... [email protected] .......... Only (ii) c.. Reduction of downside potential 2..a ............ The process of integrating domestic market with global markets............onlyforbankers.....com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected]......... As determined by bond issuer Ans . characterized by free capital flows and minimum regulatory intervention d. www...jaiibcaiibmocktest.... www....... Risk mitigation results in 1.......... In unrelated fashion d.www............. Investment centre b...... Either (i) or (ii) d.com... In direct proportion c. Full convertibility of all currencies in the world b. ................... www..000 with 95% confidence level.. A profit of Rs 1000 b. All the statements are correct b..jaiibcaiibmocktest.onlyforbankers..com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail...... iib a...a . Gap Risk d... borrowing and lending.. Mismatch Risk c..com. 4 days b....www.. 5 days c......... www............. What is the profit or loss suffered due to increase in yield? oc k a.... A loss of Rs 1000 d.bankpromotionexams...000? ...com.com.. In a period of six months (125 working days) how many times the loss on the portfolio may exceed Rs 500...jaiibcaiibmocktest... Movement Risk Ans ....ja Ans . www. [email protected] .com [email protected]............ 7 days ca 1 day VaR of a portfolio is Rs 500... The yield on the bond has increased by 5 basis points...d ......com.such mismatch is called: a.. www.. 09994452442 156 . ………………………………………………………………………………………………………………………………………………………………… www.com...............bankpromotionexams...onlyforbankers.. w w w When mismatched is created in assets and liabilities on account of forward purchase and sales..com... 6 days d.. liquidity Risk b........ te An 8-year 8% semi-annual bond has a BPV of Rs 125.. Statement 2 is correct d.......com... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Which of the following is True? st ....c ..c o a........ Both are incorrect Ans ........ admin@jaiibcaiibmocktest..... Statement 1 is correct c..... A profit of Rs 625 c......... A loss of Rs 625 iib m Ans .... . In indirect quotes.....25% c....com... Operational Risk c. local currency is variable. admin@jaiibcaiibmocktest...... Which of the following risk is managed at Unit level? ...... 5% b..com........ Futures c.... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Daily volatility of a stock is 0....... 09994452442 157 ........c ...d ... 2.......c ..... www..... local currency is fixed. www. local currency is fixed.58% d..d .. 0..... 1............com.......www. w w Forex Risk can be reduced by ........com..ja iib a. None of these 1...... www. 4....onlyforbankers. Derivatives of Interest Rate Swaps d.... a.. None of these w Ans .. ca Ans .com.. In direct quotes......jaiibcaiibmocktest..... 3...... ………………………………………………………………………………………………………………………………………………………………… www....... [email protected].. Interest Rate Risk b. What is its 10-day volatility? st .com. local currency is variable.....com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail........ iib m a) 1 and 2 b) 1 and 3 c) 2 and 3 d) 2 and 4 oc k Select the incorrect sentence / sentences from the following: te Ans ..................com murugan0501@gmail. In indirect quotes. In direct quotes..bankpromotionexams..com.. www.. Liquidity Risk d....onlyforbankers...com...bankpromotionexams............5%.......... Entering into Forward Contracts b.....c o a. Both a and b Ans .. 09994452442 158 ....... ………………………………………………………………………………………………………………………………………………………………… www... a bank would be called "outlier" if the bank is under ..... correlation method d...... 20 ca In which method of calculating VaR. monte carlo simulation method c.com murugan0501@gmail......... DSCR b.. www.........% or more..... w w w Ability of a business concern to borrow or build up assets on the basis of a given capital is called... Leverage Ans ....... reputation d.d . none of these ..............d ........ www..com....ja Ans . admin@jaiibcaiibmocktest. 10 b........com.. m a.............com...bankpromotionexams....com....com..........a .c o a.......onlyforbankers.. 3 b.. 100.. st .com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail. 10 d. the user doesn't have to make assumptions about correlation and dynamics of the risk factors because the simulation follows every historical move? iib a. 15 te Ans .... iib Ans ...onlyforbankers.. 100...jaiibcaiibmocktest.....bankpromotionexams......... for sale in other countries...... is realised in a maximum time of ....com...... 20 c.. good will c..com. 12 d..jaiibcaiibmocktest.... www.. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Goods exported to warehouse established outside India. oc k Under Supervisory Review Process. basis point interest rate shock and faces reduction in capital by ...... www........ admin@jaiibcaiibmocktest....... historical simulation method b.. 6 c. 200.www... months from the date of exports........... a. 200......d ..com. .... www.onlyforbankers.. in summary about the profit & loss a/c of the c bank w w w Interest earning Rs 120000 cr Other income Rs 1800 cr Profit on sale of fixed assets Rs 120 cr Income from sale of third party products Rs 80 cr On expenses side Interest expenses are Rs 8200 cr Operating expences Rs 3400 cr Provisions of Rs 1600cr Answer following ………………………………………………………………………………………………………………………………………………………………… www. oc k a..com. All deployment of funds through advances Ans ... Treasury administration c.com..............com......www. overnight VaR + vn d.... ca a.onlyforbankers...d .. www. www. admin@jaiibcaiibmocktest........ [email protected]..... overnight VaR + n b. none of these iib Verification and settlement of the deals concluded by the dealers is performed by . overnight VaR * n c.. www..com........ All funds raised through deposits b. ALM book.com. Merchant book and Trading book c.... overnight VaR * vn m Ans ... ..............jaiibcaiibmocktest. st . 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Treasury in the normal course will manage .............c o a..b .. te For longer periods... where 'n' is the period for which VaR is required....jaiibcaiibmocktest.....com........ iib Ans .com...b . 09994452442 159 .com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected]. VaR can be calculated as _____.......com [email protected]..... Liquidity d..........ja You have given the following information.. front office b...... Risk management d............. com [email protected]. st .. www.. 2800 cr Ans . 2400 cr d. 6000 cr Ans . 4400 cr c.c o a...com.a iib a. The risk weighted assets for operational risk under basel-II in the above case would be: w w w a.. 6000 cr b..www.. 600 cr c. oc k a. 2600cr m Ans .com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail... Rs 800cr b. 900 cr b. www.com.com. a. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Operating profit for the bank . 09994452442 160 .a iib Under basic indicator approach the bank would be required to allocate capital for operational risk under Basel-ii based on operations for one .. 4400 cr c. admin@jaiibcaiibmocktest. 4000cr d..com.bankpromotionexams.ja Ans . 592 cr ………………………………………………………………………………………………………………………………………………………………… www.bankpromotionexams. 11250 cr b.. admin@jaiibcaiibmocktest. 5000 cr d. 300 cr d 1200 cr ca year as.. 296 cr b. www..jaiibcaiibmocktest.c te Gross income for the purpose of working out capital charge for operational risk under Basel II would be . 90000 cr c.com.onlyforbankers.jaiibcaiibmocktest.a The allocation of capital for market risk under basel-II would be ..onlyforbankers.com. www. ... SDF b..... historical simulation method b.. FEDAI c.com..b ..onlyforbankers...... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m c...ja a....bankpromotionexams..... www...... correlation method d......com....com.jaiibcaiibmocktest...c o Ans -d .. none of these ca iib a.. 444 cr d.... Ans ... stock markets and commodity markets c......com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail.. monte carlo simulation method c.. www... admin@jaiibcaiibmocktest........... www............ relative inflation d.......... none of these m In which method of calculating VaR...... EXIM Bank b.......com....... ETX d.com...com. XOS iib If an export bill is not realised within the time limit prescribed by RBI.... Softex c.bankpromotionexams.....c ..onlyforbankers..d ........... correlations between risk factors and volatility of these factors? Ans ..... the user has to make assumptions about market structure. te a.. form. a..... Which of the following is not a macro-economic factor? oc k Ans ...... www......jaiibcaiibmocktest...... 09994452442 161 .com.. admin@jaiibcaiibmocktest.... BCBS d...... DGFT ………………………………………………………………………………………………………………………………………………………………… www........ Insufficient data to calculate the capital required st .....com murugan0501@gmail.... GDP growth rate b..... w w w . In india export trade is regulated by the ......www... the exporter can apply to AD for extension of time in ...com.... ...com............. www...com.... ca Ans . 09994452442 162 ..... 09994452442 ………………………………………………………………………………………………………………………………………………………………… st ......c ..d .........com.....ja iib a.com..................jaiibcaiibmocktest.... iib m a.................a .... Expiry date c.......... LORO d.. Per Cent c............ www....... Chain Rule b.........com.... LC will be treated as what type of LC? a..... NOSTRO b.. Per Mile d.......com. if nothing is mentioned...onlyforbankers....... Date on which the option is automatically exercised is called as ... Revocable LC b.. admin@jaiibcaiibmocktest. . which of the following is used: te a.. Irrevocable LC c..jaiibcaiibmocktest.. Maturity date d..............bankpromotionexams........c o m Ans .. VOSTRO c.. www.. Mirror w Ans ..com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail. Final date SBI account with citi bank in New Jersey in US $ is called as .....com [email protected]............. Value Rule oc k Ans .. www... For attaining a comparison or ratio between two quantities that are linked together through another and consist of a series of equations...............onlyforbankers..a .... Last date b.bankpromotionexams.... w w In terms of article 3 of UCP 600... Back to back LC Ans ........ Confirmed LC d.www....... ………………………………………………………………………………………………………………………………………………………………… www.com..... account.......... [email protected] ... He will purchase 500 shares of A at a price of 140 Total value of shares is = 70000 Then he will sell the total shares in the market at a price of 180..c o a... www..com..bankpromotionexams. What is the profit/lost for the individual on the transaction? m a....jaiibcaiibmocktest. By deducting premium or discount from spot rates d. www.... So for 03 months 12/4=3%) = 20000 × 3/100 = 600 Total premium + premium cost = 20000 + 600 = 20600 In total. admin@jaiibcaiibmocktest. 600 c.. By adding a mark up to spot rates b...bankpromotionexams........com. so it is assumed that... Loss of Rs. By adding premium or discount to spot rates c.....20600 = .onlyforbankers.... 20000 b.....600 ... st ...com.. www... 09994452442 ………………………………………………………………………………………………………………………………………………………………… Ans .com.. 09994452442 163 ....www. = 20000 .. w w w .. Taking interest cost @ 12% p......ja iib ca This is call option.....d Explanation.jaiibcaiibmocktest........ www.a..com murugan0501@gmail. . shares of A were priced at Rs. 180... Loss of Rs. Which is 40 × 500 = 20000 And the fund interest cost will be... Raj purchases a call option for 500 shares of A with strike price of Rs.. Profit of Rs.a.com. By adding premium to and deducting discount from spot rates m How forward rates are calculated? oc k te Mr. [email protected]... 40..d . 600 iib Ans .com....... But he has to pay the premium for call options..com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail.. 500 × 180 = 90000 So profit of 20000 in the transaction.... 20600 d.. ………………………………………………………………………………………………………………………………………………………………… www. 140 having maturity after 03 months at a premium of Rs...... Profit of Rs... 12% p. On maturity........com..com... What is the type of the risk that the bank has suffered? (i) Operational Risk...... Considering that all the standard loan accounts represent general advances....b .... iib a. Only (i) b. www......a .. Only (i) b..... (ii) Embedded Option Risk oc k a...com.onlyforbankers. Standardized approach c......151.........a .. [email protected] cr ………………………………………………………………………………………………………………………………………………………………… www.. www.. IRB (Internal Rating Based.com.jaiibcaiibmocktest. Either (i) or (ii) d.... what is the amount of provision for standard loan accounts: a) Rs...com. w w w International Bank has provided the following information relating to its advance portfolio as on Mar 31. Advanced approach Ans ......bankpromotionexams......com..bankpromotionexams. (i) Yield curve Risk. Either (i) or (ii) d... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Which is not an approach to measure Credit Risk? st ...com..c o a.160 cr b) Rs. www....com. Only (ii) c...40000 cr.com [email protected]. IRB (Internal Rating Based.. admin@jaiibcaiibmocktest.....jaiibcaiibmocktest....onlyforbankers.. Basic Indicator Approach b.. Gross NPA 9% and Net NPA 2%. 09994452442 164 .... answer the following questions? 01.... Based on this information...... Both (i) and (ii) iib m Ans ....com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail..... 2015: Total advances Rs..... (ii) Market Liquidation Risk .ja Ans .......... Foundation approach d........ www.... Both (i) and (ii) ca ABC bank suffers loss due to adverse market movement of a security.......com. Only (ii) c.... te Premature closing of a deposit will result in interest rate risk of type .. The security was held beyond the defeasance period. 60 cr d) Rs. 09994452442 165 . www. te 03. admin@jaiibcaiibmocktest. What is the total amount of provisions on total advances. Cannot be calculated.including the standard accounts? m 04.3200 cr c) Rs.2800 cr 05. [email protected] cr b) Rs.com. What is the amount of net NPA? .145.c o 02.com.bankpromotionexams.141.2945.3% c) 75.onlyforbankers.com.1200 cr d) Incomplete information.bankpromotionexams.20 cr d) Incomplete information.4000 cr b) Rs.com.2800 cr d) Incomplete information.3200 cr d) Rs. www. oc k a) Rs:3612.com.3200 cr c) Rs.ja iib a) Rs.jaiibcaiibmocktest.50 cr st .2880 cr ………………………………………………………………………………………………………………………………………………………………… www.com [email protected]. What is the provision coverage ratio for NPA? w w w a) 70% b) 74. www.3600 cr c) Rs. www. What is the provision on NPA accounts? a) Rs. 06.2840. Cannot be calculated.800 cr b) Rs. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m c) Rs.30 cr b) Rs. What is the minimum amount of provisions to be maintained by the bank to meet the provisioning coverage ratio of 70%? a) Rs.com.60 cr c) Rs.8% 07.com.onlyforbankers.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected] cr c) Rs.3600 cr b) Rs.2% d) 77. What is the amount of gross NPA ? ca iib a) Rs.www. ...... a.5 : 40000 X 2% = 800 cr iib Que ... (ii) FEDAI.onlyforbankers... oc k Que-3: Provision on NPA = Gross NPA 9% .... Que .2520 cr st ... www.....60 cr... (i) RBI......... w w Under Standard Approach retail and SME exposures attract a uniform Risk weightage of .jaiibcaiibmocktest..b .....bankpromotionexams..... (iii) Market forces .8% ca Que .bankpromotionexams. 75% c... www.. 80% d...... www..com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected] cr.ja iib a.....net NPA 2% = 7% i. www.6 : Total provision on NPA / Gross NPA = 2800/3600 = 77... 50% b...4% = 36400 x 0..e.... Hence total provision = 2945....com..com.............. Provision at 0. 40000 x 7% = 2800 cr. Only (i) and (iii) c..4% = 145.e......... 85% Ans .c o Answers: 1-c 2-c 3-b 4-b 5-a 6-d 7-d Explanations: Que-1: Standard account Total = 40000 cr — 9% NPA = 3600 cr. (i). ………………………………………………………………………………………………………………………………………………………………… www.com.7 : Gross NPA x 70% = 3600 x 70% = 2520 cr .. In India... admin@jaiibcaiibmocktest. [email protected] [email protected] .com.com.60 cr te Que-2: Provision on NPA = Gross NPA 9% .www.net NPA 2% = 7% i. 09994452442 166 .....com..jaiibcaiibmocktest.. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m d) Rs.. exchange rates are not decided by ..... Only (ii) and (iii) d........ = 40000 — 3600 = 36400 cr.4 : 40000 x 9% = 3600 cr m Que . (ii) and (iii) w Ans ... Provision on standard accounts Rs.... Only (i) and (ii) b...... 0000 x 7% = 2800 cr.........com... Premature payment of a term loan will result in ..... admin@jaiibcaiibmocktest.............. Market liquidation risk c....d ...com. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m A bank holds a security that is rated A+.. Basic Indicator Approach b. The composition of assets and liabilities is always changing d..com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail..... 09994452442 167 ... Embedded option risk c..... w w w Derivatives can be used to hedge aggregate risks as reflected in the asset-liability mismatches.... Yield curve risk b.c ... What is the risk that the bank has faced? st .... www......bankpromotionexams...ja Ans ... Operational risk d.onlyforbankers................... Standardized approach c.....jaiibcaiibmocktest... www...... Basis risk ..com... iib ca a..com....... oc k a... Mismatch risk d.. The risks are dynamic b..... [email protected] murugan0501@gmail..... IRB Foundation approach d......bankpromotionexams..........com.......com......... ………………………………………………………………………………………………………………………………………………………………… www.... A close monitoring of hedge is an RBI requirement Ans .com... www.........b ..........com...... www...com... Advanced Measurement approach te Ans .jaiibcaiibmocktest.www. Credit risk Which is not an approach to measure Operational Risk? iib m Ans ..c .. The rating of the security migrates to A.. Market risk b............. In this case a dynamic management of hedge is necessary' because a.c o a. New hedging tools arrive in the market c..... ....c . 09994452442 ………………………………………………………………………………………………………………………………………………………………… st ..jaiibcaiibmocktest.. credit default swaps.. discount . oc k a...b .. A stamped agreement devised by respective banks te The participants in the derivatives market generally exchange the following agreement m Ans . 75000 c. 400000/.b ... Deposits with floating rates and advances with floating rates d.. commission b...com.....jaiibcaiibmocktest... Good assets. www.. NPAs. admin@jaiibcaiibmocktest..... IFEMA b..com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected] Explanation : ………………………………………………………………………………………………………………………………………………………………… www. www............ w An advance of Rs.onlyforbankers... 55000 d.... 150000 b.......... The credit risk...... w w What will be the total provision in the account as on 31/03/2015? a.. iib Credit derivatives segregate from the assets through instruments known as and transfer the risk from the owner to another person who is in a position to absorb the credit risk for iib ca a....www. securitization.. ICON c.bankpromotionexams....has been declared sub standard on 31/05/2015..com..........ja Ans .. Income.. www... ISDA d... Advances with floating rate of interest and deposits with fixed rate of interest b.. It is covered by securities with realizable value of Rs.... the risk of erosion of Nil is on account of Ans ...... 50000 Ans ...com....c o a....com [email protected].. Deposits with floating rates and advances with fixed rates c.bankpromotionexams.com. 250000/-.. Deposits with fixed rates and advances with fixed rates m In a rising interest rate scenario. warrants...com. www... consideration d......onlyforbankers.com....com. 09994452442 168 .. admin@jaiibcaiibmocktest. The bad assets........ a fee c............. ......org... Sovereign risk b.onlyforbankers.com.....com... iib Ans .ja Ans . Back Office d... Para – 5.www.......... Legal risk d.25...c o m Sub standard assets will attract provision of 15 % for secured portion and 25 % for unsecured portion..jaiibcaiibmocktest.. .............. www..com.........c . Country risk c... [email protected]... Exchange Risk b..... oc k ... m a. So..............pdf” Page .. Legal Risk Ans ... www.........jaiibcaiibmocktest...........4.............in/rdocs/notification/PDFs/62MCIRAC290613.. is the possibility of a major bank failing and the resultant losses to counter parties reverberating into a banking crisis.. ………………………………………………………………………………………………………………………………………………………………… www. admin@jaiibcaiibmocktest... Please refer “http://rbidocs. Market Risk d..com..... www...........com..b . Systematic risk iib a...rbi.. 09994452442 ………………………………………………………………………………………………………………………………………………………………… st ... a......com. w w w Risk which arises out of adverse movement of market variables when the players are unable to exit the positions quickly is called as ......onlyforbankers..... www.....bankpromotionexams.... Forex Office c...com....... te = 15% of 250000 + 25% of of 150000 = 37500 + 37500 = 75000 ..com......... Forex Dealer b..... Mid Office ca Forex Operations do not include ....... 09994452442 169 ......com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected] murugan0501@gmail.... Operational Risk c.d . A profit of Rs 625 c...c .....d ...com.............. Operational risk c.onlyforbankers.. Improve if assets are revalued downwards c........... admin@jaiibcaiibmocktest... the current ratio of the company will: w w w a. iib ca a.......com murugan0501@gmail.... What is the profit or loss suffered due to increase in yield? . te A bank expects fall in price of a security if it sells it in the market.. 09994452442 170 ....ja Ans . Statements 3 and 1 are correct Ans . Asset liquidation risk d.com.....com. Improve if assets are revalued upward b...................com... Market risk b...... If a company revaluates its fixed assets...com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected]. Remain unaffected c. www.com....... A profit of Rs 1000 b..... Statements 2 and 3 are correct d...bankpromotionexams.... What is the risk that the bank is facing? oc k a...www... What is the normal balance for liability accounts? a........ www....jaiibcaiibmocktest.. www.. All the statements are correct b..com...............onlyforbankers. A loss of Rs 1000 d....bankpromotionexams..com........... Statements 1 and 2 are correct c.. www....c o a. Debit ………………………………………………………………………………………………………………………………………………………………… www. Market liquidity risk m Ans ......jaiibcaiibmocktest........... admin@jaiibcaiibmocktest... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Which of the following is True? st ....b ..d ... Undergo change only if liabilities are remaining constant Ans ... A loss of Rs 625 iib An 8-year 8% semi-annual bond has a BPV of Rs 12The yield on the bond has increased 5 basis points. .. NOSTRO b.. w w w a....c . .com..... Rs.. Mirror Ans ... at the money b..... www....... SEBI ………………………………………………………………………………………………………………………………………………………………… www..... Either a or b d. Rs.. Export credit in India is guaranteed by ..........com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected]. 09994452442 171 .. out of money c..onlyforbankers.... iib Ans ..onlyforbankers....... for citi bank is called as .. in the money d......................com.d ........... www....... VOSTRO c..com.. During the period... www..ja SBI account with citi bank in New Jersey in US $.com [email protected].. Government c.. admin@jaiibcaiibmocktest.......... any of the above iib When the strike price is below the spot price for the call option......b . 97 m Ans ...com...com..... LORO d....com......jaiibcaiibmocktest......www... 103 c. ca a..jaiibcaiibmocktest. www.. Rs.... a.. What is the acquisition cost to the FI per share? oc k a...... Rs..... the spot price of the stock decreases by Rs 3.. account. te A financial institution buys a specified no of futures at NSE on a stock Rs 100 each when spot price of the stocks Rs 110.......bankpromotionexams.. [email protected] .. the option is . At the maturity of the contract the FI takes delivery of the shares.. 107 b. 09994452442 ………………………………………………………………………………………………………………………………………………………………… st ..... 100 d. RBI b.....com.. Credit c........c o m b... None of these Ans ... www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected], [email protected], 09994452442 ………………………………………………………………………………………………………………………………………………………………… m d. ECGC st .c o Ans - d ............................................. XYZ Bank’s foreign correspondent maintaining a Nostro Rupee account with XYZ bank, wants to fund his account by purchase of Rs. 10.00 million, against US dollars. Assuming that the USD/INR interbank market is at 56.2380/2420, what rate would be quoted to the correspondent, ignoring exchange margin? oc k te a. 56.2380 b. 56.2400 c. 56.2420 d. 56.2425 Ans - a iib m The transaction is to sell Rs 10.00 million, against US dollars, and hence the XYZ Bank would quote the lower of the two rates, i.e. 56.2380 (Sell low maxim). ............................................. ca SBI account with citi bank in New Jersey in US $, is used by BOB. For BOB this account is called as ...... account. iib a. NOSTRO b. VOSTRO c. LORO d. Mirror .ja Ans - c ............................................. w w w The value of the currency is decided by supply and demand factors for a particular currency in ____ rates mechanism. a. Fixed b. Floating c. Both a and b d. None of these Ans - b .......................................................... ………………………………………………………………………………………………………………………………………………………………… www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.com [email protected], [email protected], 09994452442 172 www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected], [email protected], 09994452442 ………………………………………………………………………………………………………………………………………………………………… m When the strike price is equal to the spot price for the call option, the option is ...... st .c o a. at the money b. out of money c. in the money d. any of the above Ans - a ............................................. te CHIPS is a payment system in ...... oc k a. UK b. US c. Hong Kong d. China m Ans - b ............................................. iib FEDAI requires banks to undertake profit / loss evaluation of forex positions at the end of each ______. ca a. week b. month c. quarter d. year iib Ans - b .......................................................... .ja CHAPS is a payment system in ...... w w w a. UK b. US c. Hong Kong d. China Ans - a ............................................. If the volatility per annum is 25% and the number of trading days per annum is 252, find the volatility per day. a. 1.58% ………………………………………………………………………………………………………………………………………………………………… www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.com [email protected], [email protected], 09994452442 173 www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected], [email protected], 09994452442 ………………………………………………………………………………………………………………………………………………………………… st .c o m b. 15.8% c. 158% d. 0.10% Ans - a ............................................. Where the currency rate is not directly available for a particular currency and has to be worked out indirectly through some other currency, it is called oc k te a. Direct Rate b. Indirect Rate c. Cross Rate d. Spot cum Forward Rate Ans - c ............................................. iib m For attaining a comparison or ratio between two quantities that are linked together through another and consist of a series of equations, which of the following is used: ca a. Chain Rule b. Per Cent c. Per Mile d. Value Date iib Ans - a ............................................. .ja Which of the following positions are maintained by a foreign exchange dealer in a forex dealing room: w w w a. Dollar and Rupee position b. Balance of payment Position and forex Reserves position c. Fund Positions and Currency Positions d. Reserve position and forex position. Ans - c ............................................. Valuation of foreign exchange profits and losses by dealer is carried on the basis of: a. IBA approved accounting guidelines b. FEDAI prepared Uniform standard Account Procedure c. RBI framed valuation norms for foreign Exchange Transaction ………………………………………………………………………………………………………………………………………………………………… www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.com [email protected], [email protected], 09994452442 174 www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected], [email protected], 09994452442 ………………………………………………………………………………………………………………………………………………………………… m d. GDFT guidelines on valuation st .c o Ans - b ............................................. The quotation US $ 1 = Rs. 44.40 - Rs. 44.50 is: te a. average rate b. indirect rate c. direct rate d. cross rate oc k Ans - c ............................................. m Forward transaction in foreign exchange means a transaction in which delivery of foreign exchange doesn't take place ...... (i) on the second working day of the contract, (ii) on the next working day of the contract, (iii) beyond second working day of the contract ca iib a. Only (i) and (ii) b. Only (i) and (iii) c. Only (ii) and (iii) d. (i), (ii) and (iii) Ans - a ............................................. iib On account of Sale and purchase of various currencies there could be mismatch between assets and liabilities, which is called: w w w .ja a. Liquidity Risk b. Gap Risk c. Exchange Risk d. Market Risk Ans - b ............................................. The June 1999 Basel Committee on Banking Supervision issued proposals for reform of its 1988 Capital Accord (the Basle II Proposals). These proposals contained MAINLY. I) Settlement risk management II) Capital requirements III) Supervisory review ………………………………………………………………………………………………………………………………………………………………… www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.com [email protected], [email protected], 09994452442 175 www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected], [email protected], 09994452442 ………………………………………………………………………………………………………………………………………………………………… st .c o m IV) The handling of hedge funds V) Contingency plans VI) Market discipline a. I,III and VI b. II, IV and V c. I,IV and V d. II, III and VI te Ans - d ............................................. oc k Banks can allow resident individuals (who are banking with them) to book forward contracts up to a limit of USD ...... and with a maximum tenor of ...... only (provided the notional value should not exceed USD 100,100.00). iib ca Ans - a ............................................. m a. 100,000.00 and 1 year b. 100,000.00 and 2 years c. 10,000.00 and 1 year d. 100,000.00 and 1 year iib The failure of the counter party during the course of settlement due to time zone differences between the two currencies to be exchanged is not known as ...... risk. .ja a. Temporal b. Settlement c. Herstatt d. Exchange w w w Ans - d ............................................. As per Reserve Bank of India directives the Minimum Capital Adequacy Ratio and minimum Tier I capital the Modern Bank is required to maintain as on 31.03.2007 should be ...... respectively. a. 8% and 4% b. 9% and 4.5% c. 9% and 4.0% d. 12% and not specified ………………………………………………………………………………………………………………………………………………………………… www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.com [email protected], [email protected], 09994452442 176 bankpromotionexams............ iib m a.... Repo and reverse repo rates b..com...... Bank rate d......com..onlyforbankers...........com..... Automatic reinvestment in another bond on maturity d...........onlyforbankers. www....c o The exemptions from DTL include a............... st ......... www............ Overseas borrowings oc k The salient feature of convertible bond is te Ans ... www..b ..jaiibcaiibmocktest.b ... Conversion of physical bonds into demat form b. 09994452442 177 ....com...d ........ admin@jaiibcaiibmocktest.. ca Ans . securities market and foreign exchange operations w Ans . Transactions in CBLO with CCIL d..com.... ………………………………………………………………………………………………………………………………………………………………… www. w w The liquidity corridor that RBI uses to control short term interest rates is defined/dictated by a.c ........ Time deposits b. Foreign outward remittances in transit c.www.. [email protected]........ 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Ans .........com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected] ........... Computerization of all bank branches b........ Centralization of all back office operations of forex branches d... Absence of coupon Integrated Treasury in Banking set up refers to .... Call money market c.bankpromotionexams. SLR and CRR Ans .........ja iib a......................com......com murugan0501@gmail.. Computerization of all treasury operations c.. www.....jaiibcaiibmocktest.... Integration of money market.........com..... Option to convert the bond in to equity on a fixed date or during a fixed period and the price is predetermined c......... ... payment(DVP)for secondary market deals in equity and debt paper a.... admin@jaiibcaiibmocktest. st ..... ………………………………………………………………………………………………………………………………………………………………… www...... August 2003.... www.... iib a.. 6% iib m Ans .....com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail.. 10 th d.......onlyforbankers....com... NDS c.. IDRBT b.. 3% c.....com murugan0501@gmail. gross b......www........ www... gross.....onlyforbankers..............com.working day after the maturity date... 2% b...... October 2004..com...ja Ans ..... 09994452442 178 . gross. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m RTGS has been fully activated by RBI from . 5th b. net c.b ............ Where the settlements are on .... 7th c.. .....bankpromotionexams...... gross d.b ..com........... admin@jaiibcaiibmocktest.... net te Ans ..jaiibcaiibmocktest... basis rather than ... w w w The following institutions facilitate delivery vs. www.... NEFT Ans ....... October 2004....... of their NDTL? oc k a... RBI pays interest on the cash balances in excess of which of the following to bank...com....c ...com.b .. NSDL and CSDL d....com.. 15th ca All contract which have matured and have not been collected. net....bankpromotionexams.c o a. net.... day end settlement of cheques in clearing house....... 5% d.....jaiibcaiibmocktest....... shall be automatically cancelled on the .. www.........com.... August 2004.. www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected], [email protected], 09994452442 ………………………………………………………………………………………………………………………………………………………………… m All the exchange rates quoted on the screen or in print are for mentioned unless otherwise st .c o a. Forward transactions b. Cash transactions c. Spot transactions d. Tom transactions Ans - c ............................................. m Ans - d ............................................. oc k a. Their Head office branches b. Treasury and Head office c. Front office and IT department d. Front office, Mid office and back office te For ensuring effective risk control, RBI expects banks to facilitate functional segregation between iib A binding contract for purchase or sale at a future date is known as ...... contract. ca a. Future b. Swap c. Forward d. Legal iib Ans - c ............................................. .ja Foreign Exchange Management Act (FEMA) is administered by ...... (i) RBI, (ii) Govt. of India, (iii) SEBI w w w a. Only (i) and (ii) b. Only (i) and (iii) c. Only (ii) and (iii) d. (i), (ii) and (iii) Ans - a ............................................. Given the following Probability of occurrence = 4 Potential financial impact = 4 Impact of internal controls = 0% ………………………………………………………………………………………………………………………………………………………………… www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.com [email protected], [email protected], 09994452442 179 www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected], [email protected], 09994452442 ………………………………………………………………………………………………………………………………………………………………… m What is the estimated level of operational risk? st .c o a. 3 b. 2 c. 0 d. 4 Ans - b ............................................. oc k te When Nostro account of the bank is credited later than the payment to the tenderer of foreign exchange, which of the following rates will not be applied? (i) TT Buying Rate, (ii) Bills Buying Rate, (iii) TT Selling Rate iib Ans - b ............................................. m a. Only (i) and (ii) b. Only (i) and (iii) c. Only (ii) and (iii) d. (i), (ii) and (iii) ca Capital charge for credit risk requires input for PD, LGD, HAD and M. Under advanced IRB approach, who provide the input for LGD. iib a. Bank b. Supervisor c. Function provided by BCBS d. None of the above .ja Ans - a ............................................. w w w Calculate standard deviation of business b Cash flow 01 yr 02 yr 03 yr 04 yr 05 yr Business b 3 8 1 6 4 a. 3.40 b. 4.40 c. 2.70 d. 4.61 Ans - b ............................................. ………………………………………………………………………………………………………………………………………………………………… www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.com [email protected], [email protected], 09994452442 180 www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected], [email protected], 09994452442 ………………………………………………………………………………………………………………………………………………………………… m The risk arises due to crystallization of contingent liabilities. st .c o a. funding risk b. time risk c. call risk d. gap or mismatch risk Ans - c ............................................. oc k te As per the Reserve Bank of India in the draft guidelines for implementation of the new capital adequacy framework has modified the Gross Income definition slightly. The Net Interest Income has been replaced by iib Ans - a ............................................. m a. Net Profit b. Operating Profit c. No Changes made d. Interest Expended ca Which of following documents does not contains Zero risk ? iib a. Investments in shares b. Investment in bonds and debentures c. Investment in term deposit d. Investment in government bonds .ja Ans - a ............................................. w w w From the operational risk management point of view banking business lines have been grouped in how many major heads? a. 4 b. 3 c. 5 d. 2 Ans - b ............................................. ………………………………………………………………………………………………………………………………………………………………… www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.com [email protected], [email protected], 09994452442 181 www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected], [email protected], 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Return on Zero-Risk investment would be ...... as compared to other oppurtunities available in the market. st .c o a. High b. Low c. Equal d. Either Low or High te Ans - b ............................................. When return on business is worked out by netting the risk in business, it is called as? iib m Ans - c ............................................. oc k a. Return on investment b. Risk netted return on equity c. Risk adjusted return on investment d. Risk based system iib a. short b. mid c. long d. none of these ca Treasury essentially deals with ...... term funds flow. .ja Ans - a ............................................. Purchase or sale of a currency on a future date is known as ...... w w w a. swap b. forward c. spot d. repo Ans - b ............................................. Market Risk involves ...... a. Risk Identification ………………………………………………………………………………………………………………………………………………………………… www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.com [email protected], [email protected], 09994452442 182 www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected], [email protected], 09994452442 ………………………………………………………………………………………………………………………………………………………………… st .c o m b. Risk Measurement c. Risk monitoring and control d. All of them Ans - d ............................................. Pre-payment of Loan Amount or Withdrawal of deposit amount will add ...... risk. oc k te a. Credit Risk b. Funding Risk c. Embedded Option Risk d. Liquidity Risk Ans - c ............................................. m Due to vastness of the market, operating in different time zones, most of the Forex deals in general are done on ........ ca iib a. TOM basis b. SPOT basis c. Ready or cash d. Forward iib Ans - b ............................................. The forward premium and discount are generally based on the .........of the two currencies involved. w w w .ja a. Market rate b. Future rate c. Interest rate differentials d. Ready or cash Ans - b ............................................. In case banks have surplus liquidity, i.e., funds in excess of demand in the money market, they can _____ securities from / to RBI in exchange of cash deposit. a. buy b. sell c. do nothing with it ………………………………………………………………………………………………………………………………………………………………… www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.com [email protected], [email protected], 09994452442 183 .... foreign exchange.....com.. out of money c...........jaiibcaiibmocktest... GOI d........ at the money b.. te a.bankpromotionexams.....com..jaiibcaiibmocktest..com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected].... iib a.. a... www. is done through _____ from / to banks under a _____ transaction...... lending...... repo d.... w w When the strike price is below the spot price for the put option.. liquidity w Ans . reverse repo m Infusion of liquidity.... none of these st ........ credit d.. in the money d. securities......... domestic.........com...b ..... by RBI...........com [email protected].... [email protected] iib a. The deal size limit restrict the ...c ...........c o Ans ..... CCIL c....... ca Ans .. the option is .... RBI b.....bankpromotionexams.. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m d......a ......com.onlyforbankers....www....... risk on large deals............ www............ www..... 09994452442 184 . ………………………………………………………………………………………………………………………………………………………………… www........ money. any of the above Ans – b ... legal b.........com....b . market instrument issued by .. borrowing. SEBI oc k Ans .. reverse repo c.com. CBLO is a ........... operational c......... repo b.. . lending....... borrowing..... [email protected].. www.. . www..60 b.. .. iib Ans .ja The liquidity corridor that RBI uses to control short-term interest rates is defined / dictated by .2380/2420..com.. MIBOR ………………………………………………………………………………………………………………………………………………………………… www..com..com.... what rate would be quoted to the correspondent.a ... ATM b...... [email protected] [email protected] o m XYZ Bank’s foreign correspondent maintaining a Nostro Rupee account with XYZ bank........ a.71 d. 56. the option is known to be . The benchmark rates for overnight lending for USD are generally ..... i..00 million...jaiibcaiibmocktest.. ca a. Assuming that the USD/INR interbank market is at 56.com...00 million.....e....... 175438.2380 = USD 177815.... 09994452442 185 .. repo and reverse repo rates b.. OTM d. w w w a....07 c. wants to fund his account by purchase of Rs.com. Hence the XYZ Bank would quote the lower of the two rates....... www.. a.. against US dollars. ITM c....... www... bank rate d...bankpromotionexams.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail....... .......b .bankpromotionexams... 09994452442 ………………………………………………………………………………………………………………………………………………………………… st ..... if the deal is struck. 178571.71 to XYZ Bank USD Nostro account.. 177803...onlyforbankers.... 10. none of these iib If the strike price is less than the forward rate in case of a call option.2380.c oc k Explanation : m The transaction is to sell Rs 10.43 te Ans ... ignoring exchange margin? Calculate amount of USD XYZ Bank would receive in its USD Nostro account. SLR and CRR Ans . admin@jaiibcaiibmocktest..... the foreign bank would pay Rs.com....onlyforbankers........ If the deal is struck..com.. call money market c.jaiibcaiibmocktest. www..www.... 177815. 10000000/56....com.......... LIBOR b...... against US dollars.......... account a...com.. in the money d.... TARGET is a payment system in .. 09994452442 186 . When the strike price is above the spot price for the put option.. whether the provisions of UCP 600 apply to this credit? iib Ans .. UCP 600 applies with permission from ICC ca iib a.... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m c.. Yes.......jaiibcaiibmocktest........c . China m Ans ........ at the money b........ www. 2013........onlyforbankers..com.... Nostro account b........... [email protected]... www.........c o Ans . UK b. www.. The credit calls for shipment of 200 tonnes of good quality wheat cultivated in Punjab. w w w ........ oc k a. Only certain articles of UCP 600 apply to the credit d. out of money c..jaiibcaiibmocktest.. Europe d.......b ..com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected]. US c.......... Fed Rate d.. UCP 600 does not apply c... Loro account ………………………………………………………………………………………………………………………………………………………………… www.. the option is . No...........com murugan0501@gmail.. te A Bank received an LC for USD 2 Mio issued by MT 700 and opened on Jan 25........... MIFOR st .....bankpromotionexams.. it passes entries in its books at Mumbai through the . any of the above Ans . www....com..........com.. New York.. When it conducts transactions through this account.. Vostro account c.onlyforbankers. Yes....... [email protected] a......... By default.... UCP 600 applies to this credit b..c .www.......com....com.........c ........ SBI maintains USD account with Bank of America........ above USD 20 million and up to USD 500 million (with average maturity of 5 years) c.onlyforbankers.bankpromotionexams....... Luxembourg c. USD 20 million (with a minimum average maturity of 3 years) b.. iib m a.......... Dubai Ans .b .. Exporters who contribute not less than Rs........com.. Exporters who contribute not more than Rs.. Direct quotation b.....jaiibcaiibmocktest...01667 in Indian Rupee is an example of .. Exporters with turnover not exceeding Rs 10 lakhs per year b.... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m d....com.. Mumbai d. Exporters with turnover exceeding Rs 10 lakhs per year d...c ........bankpromotionexams............b .. None of these w w w Ans ... www....ja iib a..www....com... both a and b d. exchange and traded at two other places besides the place of listing OTC market in London and private placement market in USA........ The quotation of 1 Rs = $ 0...... a.......... www. 10 lakhs towards premium What is the maximum amount that can be availed under automatic route for ..... admin@jaiibcaiibmocktest....... Indirect quotation c.. 09994452442 187 ..com.....a .... Who is eligible to take Export turnover policy from ECGC? ca Ans .... 10 lakhs towards premium c...... GDRs are normally traded on .......... te a......com [email protected] Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail. www.c o Ans ......com. www..............com... Aggressive quotation oc k Ans .... Shanghai b..........com... Mirror account st .... admin@jaiibcaiibmocktest.......... Competitive quotation d.jaiibcaiibmocktest..b ………………………………………………………………………………………………………………………………………………………………… www..... ..... diamond exporters iib How many Diamond Dollar Accounts can an exporter maintain? ...com..jaiibcaiibmocktest......onlyforbankers............ja a......com..jaiibcaiibmocktest... Two accounts c.. etc) d.. both 1 and 3 c............ resident Indians. ca Ans .. Indirect quotation c. a person resident in India to keep his/her foreign currency assets (notes / traveller cheques.. 09994452442 188 ...bankpromotionexams.. te a...... GDR does not entitle the holder any voting rights. An RFC account can be opened by .com......... companies or firms to transact forex business..d ..onlyforbankers..bankpromotionexams.. admin@jaiibcaiibmocktest............. www.....com..... 09994452442 ………………………………………………………………………………………………………………………………………………………………… st .. returning Indians who were non residents earlier and are now returning to India for permanent settlement to keep their foreign currency assets held outside India.. c.d ... A holder of a GDR cannot convert it into the shares that it represents.....com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail..... b. Five w w w Ans . Competitive quotation d.a .. Only one b. Forex risk is associated with a GDR.. Aggressive quotation Ans . both 1 and 2 b.01667 in Indian Rupee is an example of ________ a.. both 3 and 4 oc k Ans .. with an AD..www.... The quotation of 1 Rs = $ 0. www... m Select the incorrect statement(s).com..com.... It is matter of discretion for the bank d.. Direct quotation b... iib m a... www..com.... www.. both 2 and 4 d..... [email protected] [email protected] ………………………………………………………………………………………………………………………………………………………………… www...c o The holder of a GDR gets voting right only when s/he converts them (GDR) into shares....com..... ..com... None of these m Ans .........jaiibcaiibmocktest. a.bankpromotionexams..com.. 10 lakhs towards premium m Who is eligible to take Export turnover policy from ECGC? Ans . ca a. The maximum temporary overdrawings permitted in NRE account is Rs 50.com.... ........... Rupee c...... NRE term deposit is opened for a minimum tenor of 1 year and for a maximum tenor of 3 years b... w w w a..com... Exporters who contribute not less than Rs. NRE account can be oponed jointly with a person resident in India d......ja Select the incorrect statement.....com..onlyforbankers... Exporters who contribute not more than Rs. NRE account is exempted from income tax.c .........com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail.... te Which of the following is not a free currency in the foreign exchange market? oc k a......... 09994452442 189 ....... admin@jaiibcaiibmocktest.. www.......... EUR d.b ....b ....c o a.....com.... iib Ans ....onlyforbankers... None of these iib Mirror accounts are shadows or reflections of ...... USD b.............. Select the incorrect statement.. Nostro d. www. Loro b... www.. Exporters with turnover not exceeding Rs 10 lakhs per year b..... admin@jaiibcaiibmocktest... 10 lakhs towards premium c....c ....000 Ans .bankpromotionexams.........jaiibcaiibmocktest. NRO account is exempted from income tax...... account............ Power of attorney can be granted by an NRE account holder to residents to operate this account b.......com [email protected].. 09994452442 ………………………………………………………………………………………………………………………………………………………………… st .... Vostro c. wealth tax and gift tax ………………………………………………………………………………………………………………………………………………………………… www... www.............. wealth tax and gift tax c.. Exporters with turnover exceeding Rs 10 lakhs per year d...com. .... Excess of Current Assets over Current Liabilities b...... 09994452442 ………………………………………………………………………………………………………………………………………………………………… Ans .....com........com - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected]. Nostro c......www........c ………………………………………………………………………………………………………………………………………………………………… www.......com.... Effective utilization of assets Ans . None of these w w w Ans .......... Restricted Money Changers c.bankpromotionexams...Category III was earlier known as ..........com murugan0501@gmail. On the day of receipt of the Bill ca Ans . Debt Service Coverage Ratio (DSCR) indicates .com...... On 21st day from the date of Bill of Lading b... admin@jaiibcaiibmocktest......... ......... An import bill not retired by the importer should be crystallized by the bank on what day? iib m a... Vostro b. www..........bankpromotionexams...... NRO account can be oponed jointly with a person resident in India d.... account....... www..... 09994452442 190 . On the 10th day from the receipt of documents at the counters of the bank c....... An amount up to Rs 1 lac can be repatriated out of funds held in NRO account m Facebook Groups oc k Ans .com......b ....b ..................ja a. www......d .. On the expiry of five banking days d.. In foreign exchange....... Mirror d.jaiibcaiibmocktest..........b .. Full Fledged Money Changers b.. 'Our Account with You' is known as ... iib Authorised persons .. te a....com......... Authorised dealers d...com.onlyforbankers......jaiibcaiibmocktest.. www.. Number of times surplus covers interest & instalments of Term Loans d. Number of times fixed assets cover borrowed funds c. Loro st ....onlyforbankers..com.c o c.. admin@jaiibcaiibmocktest...... a... (i)... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m A license to deal in foreign exchange to authorized dealers is not issued by ....... Rs..... Only (i) and (iii) c....com.. the .bankpromotionexams..www...... www.... iib a......c o a.. Only (ii) and (iii) d.... Interst rate differentials d. as per FEDAI guidelines...... (iii) FEDAI st ..........onlyforbankers... 50000 equivalent b..com.......... £ 1000 Ans . www... (ii) and (iii) ca In a perfect market..... (ii) and (iii) te Ans ..jaiibcaiibmocktest... Fixed exchange rate b......... is the basic factor in arriving at the forward rate............ Only (i) and (ii) b.... m a....com....c .com..... w w w All foreign currency inward remittances upto ..... Floating Exchange rate ..com.com [email protected]..... (ii) DGFT..... (ii) Dealer's Margin........com...bankpromotionexams........... be converted immediately into Indian Rupees? a. (i)..com.. oc k The difference between buying and selling rate quoted by an Authorised Dealer is not called as ...com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected] ..... Only (i) and (ii) b........ USD 5000 d.. 09994452442 191 ...... USD 10000 c.. Only (ii) and (iii) d....... ………………………………………………………………………………………………………………………………………………………………… www...ja Ans ... admin@jaiibcaiibmocktest.... (iii) Dealer's commission iib Ans ...c ........b . (i) RBI........ www. with no restriction on finance and trade. www.... Interest factor c..... admin@jaiibcaiibmocktest....... (i) Dealers spread..com. Only (i) and (iii) c.. com murugan0501@gmail... 1973 b.... www....com........bankpromotionexams... the margin contribution of the SSI unit is .com. [email protected] ...com.. iib As per the recommendations of Chore Committee banks have been asked to ensure .. 10% c... ...jaiibcaiibmocktest....c ...www............. 1934 c..... Foreign Exchange Management Act.............. www....jaiibcaiibmocktest........ 1999 d............ ………………………………………………………………………………………………………………………………………………………………… www..com.....onlyforbankers.... 20% d..... Adopt 2nd Method of lending d.. Liquidity Risk b.......... The 3 months premium on US $ is 0..c . 5% b. te Risk which arises due to mismatches in the maturity patterns of assets and liabilities is called as ....bankpromotionexams... % of the annual projected turnover......a .1949 Ans .... Banking Regulation Act..0% and swaps the same in to INR for 03 months for deployment in CPs @ 5%............... Relax norms prescribed by Tandon Committee c.....com.. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m All foreign exchange transactions in India are governed by : st . 25% Ans . Borrowers do not contribute more than 25% as margin iib Ans .... oc k a..ja As per Nayak Committee.. Settlement Risk m Ans .....com. Reserve Bank of India Act... A bank borrows US $ for 03 months @ 3...... 09994452442 192 ...com.5%. ca a.. Market Risk d.c o a.....com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail...... www.com..... Exchange Risk c....onlyforbankers.. www.. Borrowers deposit 50% of their net profit in time deposits b..... Foreign Exchange Regulation Act... w w w a.... admin@jaiibcaiibmocktest...... com. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m What is the margin(gain/loss) generated by the bank in the transaction? st .. all of these d. none of these Ans ............ Authorized dealar iib Which of the following is not a Foreign Exchange markets participant? iib Ans ..com [email protected]% Ans .onlyforbankers. admin@jaiibcaiibmocktest.. www.....5 % = 1.. www........ ca a.. 2 and 3 c..com. Commercial Banks c.bankpromotionexams.. banks or corporate entities relies on the follwing parameters: PD (Probability of Default) LGD (Loss Given the Default) EAD (Exposure at Default) M (Maturity) a..... 1.onlyforbankers. 3% c.... the IRB calculation of risk weighted assets for exposures to sovereigns.ja Capital charge computation is a function of the following parameters.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected]% as US $ is at premium. Central Banks b...d .jaiibcaiibmocktest. www.com.. w w w ......5%........0% ..com... But when bank repay its borrowing in $....c ………………………………………………………………………………………………………………………………………………………………… www..jaiibcaiibmocktest....5% d. [email protected]% . it gains 2% by interest rate margin here. 2% b...www..c m oc k te Explanation : Bank borrows US $ for 3 months @ 3% Same it will invest in CP for 3 months @ 5% So... 1 and 2 b.. 2...com.. Investment Funds/Banks d..com..5% extra because US $ will be costly by 0......com... it has pay 0. 09994452442 193 . www......... 2..c o a... In other words.......com. 1..0. So it will reduce bank gain by 0. bankpromotionexams....com..........c o a.....com..www....a .. ………………………………………………………………………………………………………………………………………………………………… www.. with no restriction on finance and trade....... www........ none of them d... www.. Five banking days Ans ....onlyforbankers..... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m In a perfect market..com..bankpromotionexams.............. both of them ca Under advanced IRB............... What is the time available for issuing bank for examination of documents under UCP600? a... www....onlyforbankers.. bank b.. w w w A Bank received an LC for USD 2 Mio issued by MT 700 and opened on Jan 25........com...com murugan0501@gmail.... the ...... correlation method d...... none of these iib a. www. suprvisor c.c . Interest rate differentials d..... oc k In which method of calculating VaR... the change in the value of the position is calculated by combining the sensitivity of each component to price changes in the underlying assets(s)? iib Ans ..... Reasonable time not exceeding 7 days c.com............ monte carlo simulation method c...jaiibcaiibmocktest. The credit calls for shipment of 200 tonnes of good quality wheat cultivated in Punjab..d ....com.jaiibcaiibmocktest...ja Ans ....... 21 days b....... Interest factor c.... st . admin@jaiibcaiibmocktest. historical simulation method b..... 2011......... m a. who provides the inputs on the EAD? . Fixed exchange rate b...com... 09994452442 194 ............ Floating Exchange rate te Ans .. is the basic factor in arriving at the forward rate.........com. [email protected] ................. Reasonable time not exceeding 7 banking days d...com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail..... . Gifts of goods.. ca An EEFC account can be opened by ..com......... returning Indians who were non residents earlier and are now returning to India for permanent settlement to keep their foreign currency assets held outside India..... Goods or software................... risk..................bankpromotionexams. 2.....com.....com........c o a. etc) d.. 3 d............. a....www......... valuing not over Rs....... w w The minimum and maximum period of FCNR deposits are . www.. when accompanied by a declaration by the exporter that they are not more than USD 50000 in value b...... admin@jaiibcaiibmocktest. 1.b ..com...onlyforbankers. Market c.. a person resident in India to keep his/her foreign currency assets (notes / traveller cheques.... [email protected] iib a... and ....... www...... valuing not over Rs.. Settlement d.. 5 Ans ..b ..... with an AD.com....50000 along with declaration of exports c... www... Legal iib Ans . 3 b.. m oc k Failure of the counter party during the course of the settlement (due to time zone differences between the two currencies to be exchanged)is the . www. 5 c.. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Which of the following shipments out of India are exempt from export declaration forms? st ...............bankpromotionexams.. resident Indians.com [email protected]. c.....500000 along with declaration of exports d.............. b... Goods not exceeding in value USD 10000 per transaction exported to Myanmar under bilateral trade agreement te Ans ....... years respectively.....com... Gifts of goods..... 1.c ... ………………………………………………………………………………………………………………………………………………………………… www. 09994452442 195 ... Operational b..com.... diamond exporters w Ans . a... ....onlyforbankers.....c .....jaiibcaiibmocktest.. 2....com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected]..... companies or firms to transact forex business.. .. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Select the incorrect statement (s) from the following (if any). [email protected]... Dealing room b..... a..... go short b. NRI cannot invest in any partnership firm as owners / partners.........bankpromotionexams. 2.....com... te a........... none of these Ability of a business concern to borrow or build up assets on the basis of a given capital is called .... Leverage w Ans ....... www.. w w All related book-keeping and submission of periodical returns to RBI is taken care by ....ja iib a. 1 & 3 c.d ..com......c o 1.............com.. www. good will c....... reputation d. Risk management d.... ...com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected]... www........ 4...b ....d ... 09994452442 196 . back office c...... www.................... st .. ………………………………………………………………………………………………………………………………………………………………… www....com [email protected]...... debt service coverage ratio b............. NRI cannot acquire shares or property by way of inheritance from a person resident outside India.. NRI can acquire property by purchase out of balances held in NRE accounts.... leverage d... none of these Ans ... 2 & 4 oc k Ans . iib m a. admin@jaiibcaiibmocktest.. When currency is bought.. 1 & 2 b........ 3..com.b ..onlyforbankers. the treasury is said to .. ca Ans ...com.www..jaiibcaiibmocktest....... NRI can acquire shares on repatriable basis.. go long c............com.....jaiibcaiibmocktest... 2 & 3 d...com. .....com. admin@jaiibcaiibmocktest. Negotiation c... (ii) purchase of foreign coins and travellers' cheques from the public.... 80% d........... LC.com......com... 75% c.. www....bankpromotionexams..... w w w The seller agrees to deliver to the buyer a specified security / currency or commodity on specified date... coins....... Only (i) and (ii) b.bankpromotionexams.. (ii) and (iii) te Ans .. www.. oc k An LC which facilitates financing to the supplier prior to shipment is known as .. swaps Ans .onlyforbankers... at a fixed price in .a . forward contracts b..com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail. 09994452442 197 . Red Clause b...c o m Restricted money changers are the firms/organizations authorized to undertake ..... ………………………………………………………………………………………………………………………………………………………………… www.............com.......... (i) purchase of foreign currency notes from the public......... futures c..www..... m a...jaiibcaiibmocktest. 50% b. Revocable iib a... 09994452442 ………………………………………………………………………………………………………………………………………………………………… st .. www....................... www..com.. . Back to Back d..com..............com..... options d.. Only (ii) and (iii) d............ (iii) sale and purchase of foreign currency notes. Only (i) and (iii) c....... admin@jaiibcaiibmocktest. travellers' cheques to / from the public a....com murugan0501@gmail...... a.. iib Ans ....com......ja Ans .onlyforbankers.b ......... 85% ca Under Standard Approach retail and SME exposures attract a uniform Risk weightage of ..c ... (i)..........jaiibcaiibmocktest....a .. . a. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m According to the mode of settlement..www.............ja Ans ......com..com... none of these te An American type option can be exercised .......onlyforbankers.onlyforbankers............com.. any time before the expiry period b......jaiibcaiibmocktest... [email protected]... [email protected]...... embedded option d.. 4 d. 5 Ans .. www. on the expiry date d..c o a. options are divided into ____ types.... short b..com. iib ca a... 3 c.. w w w Corprate debt paper refers to _____ .... www.... which are tradable..com...............bankpromotionexams... ...........d ...com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected]. both b and c Ans .a ......... Such options are called ______ and have a direct effect on pricing of the bond. long d.. medium c...... barrier option iib A convertible option may give the bond-holder option of converting the debt into equity on specified terms. www... st .....bankpromotionexams... plain vanilla option c..........term bonds and debentures issued by corporates and FI......... ………………………………………………………………………………………………………………………………………………………………… www.com [email protected] . any time after the expiry period c.... www... m Ans . stock option b..b .. oc k a.. 09994452442 198 ...............com.. 2 b........... ..com.. www...... iib VaR (Value at Risk) measure can be used to assess the following risks.... b. interest rate d... % of total Operational Risk Capital Charge calculated under AMA...... www.....jaiibcaiibmocktest....b ... Tier ___ capital bonds issued by banks fall under corporate debt paper..onlyforbankers. te Which of the following is not true regarding ETD (Exchange Traded Derivatives)? oc k a.................. HTM (Held Till Maturity) b.. c.c o a...d .....com.. 10 b. all of these Ans .com.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail. liquidity c.com... w w w a...... 1 ………………………………………………………………………………………………………………………………………………………………… www...com........onlyforbankers... st ......... Forward contracts traded on only organized future exchanges are known as future contracts.....d ...b .. as the pricing is not transparent.... currency b..... price iib Ans ..www. admin@jaiibcaiibmocktest. 20 c.. 50 Ans ........ It is mostly used for trading and speculation..... AFS (Available For Sale) c...bankpromotionexams...... Price is quoted by the bank.............. www... 30 d. a............ HFT (Held For Training) d.jaiibcaiibmocktest..com...... www.....com....... ca a. Counter party risk is not present.ja The recognition of insurance mitigation is limited to ......... Select the incorrect option....... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Bank's investment in government securities are classified in to ..com. [email protected] murugan0501@gmail. d... m Ans . 09994452442 199 ..bankpromotionexams... .......... ......... none of these Ans ..com.. At present...bankpromotionexams.. 2 c... admin@jaiibcaiibmocktest......... Only (i) b.....b ....... 3 d.. m Banks maintain their security accounts (exclusively for government securities) with RBI which is known as _____ account...bankpromotionexams. a...www. Both (i) and (ii) Ans ... 09994452442 ………………………………………………………………………………………………………………………………………………………………… st ...... ca iib a..............onlyforbankers.b .ja a.... www.......com. www.. BGL d.com.com.. Securities issued by governments are referred to as _____ which do not have any credit risk.... 09994452442 200 . oc k te a.com. M3 ÷ M1 ………………………………………………………………………………………………………………………………………………………………… www...com..... (i) Credit risk (ii) Market risk w w w ...... www........... www.......... SGL c..com.....c o m b...... CGL b.... gilt c........ Only (ii) c. money multiplier moves within a range of 3..com... admin@jaiibcaiibmocktest....................jaiibcaiibmocktest..jaiibcaiibmocktest.b ... demat A/C d. M1 * M2 b.. none of these iib Ans .b . Interest rate risk is a type of . yield Ans ......5 to 4 times........... Either (i) or (ii) d.... M2 + M3 c......... derivative b....com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected] murugan0501@gmail. This money multiplier is calculated as ..onlyforbankers...... .. floating rate to fixed rate c. M4 ÷ M2 st ... BR Act c..com..bankpromotionexams. admin@jaiibcaiibmocktest..... oc k te a........ Which of the following is not true regarding OTC? Ans .... floating rate to floating rate d.. There is no such limit Ans . www..... USD 100000 b...jaiibcaiibmocktest.. What is the limit up to which an individual is permitted to remit overseas without the approval of RBI? a.... Company Law d........com......com.jaiibcaiibmocktest... none of these w w w Ans .b ………………………………………………………………………………………………………………………………………………………………… www. iib Bonds are governed by . ca Ans .....a .d .. c.........c ..... Law of Contract b..... It is mostly used for hedging underlying risks..c o Ans . Settlement is mostly by physical delivery.. www.......... 09994452442 201 ............. none of these m ______ swap is also known as a basis swap.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected] ................. www...com..www...com......com......ja a.....onlyforbankers......... .. [email protected]... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m d.. iib a......... USD 200000 c.. It is a derivative product that can be directly negotiated and obtained from authorized banks and investment institutions.com murugan0501@gmail.. fixed rate to floating rate b.. www...............bankpromotionexams...onlyforbankers.. b. USD 500000 d... d.... No counter party risk at all. .......... 14 days iib m Ans .. www.onlyforbankers..bankpromotionexams.. admin@jaiibcaiibmocktest... 7 days d.bankpromotionexams.. www.com. admin@jaiibcaiibmocktest. Only (i) and (ii) b... Only (ii) and (iii) d....... Cross te Ans .....c o a. 03 yr d.. ………………………………………………………………………………………………………………………………………………………………… www. which rate will not be applied? (i) TT Buying Rate...b .........com murugan0501@gmail. rate is paid for each day.... (iii) Bills Selling Rate a... Only (i) and (iii) c....... iib ca a.... www..........a .. oc k a........... 09994452442 202 ........onlyforbankers...com.com.... (ii) TT Selling Rate............ www.......... two days c......jaiibcaiibmocktest..com.... TT d.... 01 yr b...ja Ans ...d .. st . 02 yr c. Term money refers to placement of funds for period not exceeding . but import bills are not handled.. LIBOR b.. Notice money refers to placement of funds for period not exceeding ..... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m In case of delay in payment of rupee settlement funds..com... (i)........ w w w When there is sale of foreign exchange.... 05 yr ...www....b .. the interest for delayed period at 2 % above the ......com............ (ii) and (iii) Ans ..........com...com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected].. MIBOR c...jaiibcaiibmocktest....... over night b.. .. iib Ans .... The interest rate differential is added to the spot rate of a............ c.. Rates are generally quoted at a premium to the spot rate d........... Downside potential ignores profit potential. m Ans . Probability of occurrence is one of the two components of downside potential.ja Which of the following statement is not correct relating to TOD and TOM? w w w a...com [email protected]............ portfolio based b.... Rates are generally quoted at discount to the spot rate b... www. IRDA Ans ........c o a.. RBI b... www....com.. ca a...onlyforbankers........a . Downside potential captures possible losses.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail....bankpromotionexams..com........................c .. [email protected] .. IMF d....... 09994452442 203 . b....onlyforbankers. none of these iib Risk pricing is . www.... te Select the incorrect statement(s): oc k a..... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Treasury Bills are issued by .......jaiibcaiibmocktest.jaiibcaiibmocktest.... Low interest yielding currency b. d. None of these Ans .com.... [email protected] . both a and b d. GOI c......com... Downside potential captures possible profits....... transaction based c. High interest yielding currency ………………………………………………………………………………………………………………………………………………………………… www....... st .............bankpromotionexams.. www...www.com..com..... Rates are less favorable to the buyer of the currency c....com..... ..... www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected], [email protected], 09994452442 ………………………………………………………………………………………………………………………………………………………………… m c. Both d. None of these st .c o Ans - A ............................................. Call money refers to placement of fund ... te a. same day b. overnight c. next day d. Two days oc k Ans - b ............................................. ca Ans - c ............................................. iib a. Spot transaction b. Forward transaction c. Swap transaction d. Convertible transaction m Buying of USD (with Rupees) in the market and selling same in forward market or vice versa is called ... iib Exchange rate risk can be avoided by entering into a ...... .ja a. swap b. forward rate contract c. option contract d. either b or c w w w Ans - d ............................................. Treasury uses derivatives ...... a. to manage risks including ALM (Assets Liabilities Management) risk b. to cater to the requirements of the corporate customers c. to trade, i.e., to take a trading position in derivative products. d. all of these Ans - d ………………………………………………………………………………………………………………………………………………………………… www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.com [email protected], [email protected], 09994452442 204 www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected], [email protected], 09994452442 ………………………………………………………………………………………………………………………………………………………………… m When a bank sanctions a loan to a large borrower, which of the following risks it may face ...... (i) Liquidity, (ii) Market, (iii) Credit st .c o a. Only (i) and (ii) b. Only (i) and (iii) c. Only (ii) and (iii) d. (i), (ii) and (iii) te Ans - b ......................................... oc k Treasury bill is issued for 91 days to 364 days by GOI 91 days t bill is auction on weekly basis for amount Rs... crore. iib Ans - c ............................................. m a. 100 b. 200 c. 500 d. 1000 ca If an asset is highly sensitive to interest rate changes, and if we have a view that rates are likely to rise, what should we do? iib a. enter into swap b. enter into forward rate contract c. enter into option contract d. none of these .ja Ans - a ............................................. w w w SBI maintains USD account with Bank of America, New York and when it conducts transactions through this account, it passes entries in its books at Mumbai through the following account. a. Nostro account b. Vostro account c. Loro account c. Mirror account Ans - a ............................................. ………………………………………………………………………………………………………………………………………………………………… www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.com [email protected], [email protected], 09994452442 205 www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected], [email protected], 09994452442 ………………………………………………………………………………………………………………………………………………………………… m An RFCD account can be opened by ...... with an AD. st .c o a. returning Indians who were non residents earlier and are now returning to India for permanent settlement to keep their foreign currency assets held outside India. b. resident Indians, companies or firms to transact forex business. c. a person resident in India to keep his/her foreign currency assets (notes / traveller cheques, etc) d. diamond exporters te Ans - c ............................................. What are the two reserve requirements that treasury has to comply with? oc k a. PLR and SLR b. CRR and SLR c. Repo and CRR d. VaR and CRR iib m Ans - b ............................................. Ability of a business concern to borrow or build up assets on the basis of a given capital is called... iib ca a. DSCR b. good will c. reputation d. Leverage .ja Ans - d ............................................. w w w If Regulatory Authority of the country feels that the Capital held by a bank is not sufficient, it could require the bank to ...... (i) Reduce it's Risk, (ii) Increase it's Capital a. Only (i) b. Only (ii) c. Either (i) or (ii) d. Both (i) and (ii) Ans - d ............................................. ………………………………………………………………………………………………………………………………………………………………… www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.com [email protected], [email protected], 09994452442 206 www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected], [email protected], 09994452442 ………………………………………………………………………………………………………………………………………………………………… m The components of broad money(M3) are Ans - b ............................................. oc k Ans - d .......................................................... m a. Only one b. Two accounts c. It is matter of discretion for the bank d. Five te How many Diamond Dollar Accounts can an Exporter maintain? st .c o a. Cash in circulation with the public b. Cash in currency chests with RBI and Banks c. Credit availed by Central Government from RBI d. Currency in circulation, demand and time deposits with banks and post office saving deposits iib Exchange of payments in different currencies at pre-determined exchange rates are called as ...... Swaps. ca a. Financial b. Interest c. Currency d. Forex iib Ans - c ............................................. .ja Due to vastness of the market, operating in different time zones, most of the Forex deals in general are done on ........ w w w a. TOM basis b. SPOT basis c. Ready or cash d. Forward Ans - b ............................................. The forward premium and discount are generally based on the .........of the two currencies involved. a. Market rate ………………………………………………………………………………………………………………………………………………………………… www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.com [email protected], [email protected], 09994452442 207 www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected], [email protected], 09994452442 ………………………………………………………………………………………………………………………………………………………………… st .c o m b. Future rate c. Interest rate differentials d. Ready or cash Ans - c ............................................. When the strike price is equal to the spot price for the put option, the option is ...... oc k te a. at the money b. out of money c. in the money d. any of the above Ans - a ............................................. iib ca a. Negotiating Bank b. Confirming Bank c. Opening Bank d. Advising Bank m Normally, who makes the payment against the documents in a LC transaction? Ans - a ............................................. iib The risk arising owing to non-enforceability of contract against a counter party is the ...... risk. w .ja a. Legal b. Systematic c. Credit d. Liquidity w w Ans - a ............................................. A bond with a coupon rate of 9% maturing in 2015 and trading at Rs 180 will have yield of …... a. 4% b. 5% c. 6% d. 7% ………………………………………………………………………………………………………………………………………………………………… www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.com [email protected], [email protected], 09994452442 208 .com.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail. 09994452442 209 .c o Current yield = Coupon rate/Prevailing market value = 9/180= 5% .. www...bankpromotionexams. iib In foreign exchange.. Nostro c..onlyforbankers.......com...ja The seller bank has to pay interest at .com.... 20The credit calls for shipment of 200 tonnes of good quality wheat cultivated in Punjab.. [email protected]...... oc k a. Indonesian Rupaih ………………………………………………………………………………………………………………………………………………………………… www................ 2 d......... 4 Ans .com.... www..jaiibcaiibmocktest. 1.... Which of the following is not quoted as 100 unit of foreign curency = INR? a.. www....d .......... Reasonable time not exceeding 7 banking days d.d ..jaiibcaiibmocktest..... What is the time available for issuing bank for examination of documents under UCP600? m Ans ... 1 b....5 c... % above the prime rate of the currency of the specified banks in case of delayed payment of interbank foreign currency funds.. w w w a. .........com. Mirror d....b Explanation : st ............. Five banking days te A Bank received an LC for USD 2 Mio issued by MT 700 and opened on Jan 25.... Kenyan Sheiling b.. 21 days b...........com... account ca a............. Vostro b.. 'His account with Them' is known as .c ........com [email protected]....... www..........www....... Reasonable time not exceeding 7 days c.... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Ans ..... [email protected].. Loro iib Ans .bankpromotionexams........... working day after the maturity date.. when accompanied by a declaration by the exporter that they are not more than USD 50000 in value b..jaiibcaiibmocktest...c .........com murugan0501@gmail. www.........bankpromotionexams. LC.... www.com.b .50000 along with declaration of exports c... Acceptance ………………………………………………………………………………………………………………………………………………………………… www..............com. ....... 10 th d.. Goods not exceeding in value USD 10000 per transaction exported to Myanmar under bilateral trade agreement Ans . JPY (Japanese Yen) st .com. www.. 09994452442 210 ..........com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail.. Gifts of goods.....................com.. Account....com.... valuing not over Rs... Which of the following shipments out of India are exempt from export declaration forms? oc k te a........onlyforbankers. a..c o Ans .... Irani Dinar d. 15th iib Ans .. c. [email protected]. Manage foreign currency assets and liabilities................ Goods or software.500000 along with declaration of exports d... valuing not over Rs....c ... [email protected]... 7th c... www.jaiibcaiibmocktest. b....com...... reconciliation etc Ans – d ... d..ja Which is not a function of the Forex dealing room ? w w w a.... ca a.. Fund Manager for Nostro Accounts as also undertake proprietary trading in currencies. A service branch to meet the requirement of customers of other branches/divisions to buy or sell foreign currency.... 5th b..... shall be automatically cancelled on the .. iib m All contract which have matured and have not been collected.. Gifts of goods.... Processing of Deals. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m c.......www.com.com.. The beneficiary gets the payment on presentation of documents at nominated bank's counters under ....... . 10 % to 12 % c......... www.... LC............. ca iib a....ja In case of PCL being on CIF basis.com... 15 d...jaiibcaiibmocktest...com.... . None of these Ans ..... Red clause c. 5 b......d .... [email protected]. Transferable b..com........com [email protected].............. the FOB value is arrived at by deducting __ % (representing freight and insurance) from the CIF value..b .. the FOB value is arrived at by deducting __ % (representing freight and insurance) from the CIF value.......com...... Both a and b d..... LC is opened for procurement of goods on the backing of an export LC..onlyforbankers.......onlyforbankers. if the despatch is through sea. www.c ..com. Back to back ………………………………………………………………………………………………………………………………………………………………… www. www.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected]. m In case of PCL being on CIF basis....com. Deferred payment c... Deferred payment c. 10 c... 09994452442 ………………………………………………………………………………………………………………………………………………………………… st ... www.. 5 % to 10 % b................ admin@jaiibcaiibmocktest........ Acceptance b. a.... 25 Ans .....d ..... 13 % to 14 % d.com. oc k te a..... if the despatch is through air......... w w w a....... . The bill of exchange or draft is drawn under .c o m b.bankpromotionexams.. 25 % to 35 % iib Ans .jaiibcaiibmocktest. Revocable d.... 09994452442 211 .................. Sight Ans . ..50 %....... the option is ..............2............ ISP d.50 %...d .... 180 m The concessional rate of interest in case of PCL is ..........jaiibcaiibmocktest..... the disbursing branch should inform ECGC the details of limit sanctioned in the prescribed format within . out of money c...2..... 180 c...50 %. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m d.. te a....com....2.... days... URR oc k Ans ..ja a.......com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected] .. ca Ans .. admin@jaiibcaiibmocktest.... 120 b.. The set of international rules (published by ICc.......com..com murugan0501@gmail........ www.onlyforbankers...... iib a...... days.....bankpromotionexams.. for the interpretation of trade terms are known as . in the money d............50 %.. admin@jaiibcaiibmocktest... a.. Incoterms c. 10 c.......bankpromotionexams.. maximum PLR .. maximum PLR ...b .... and is valid for first ....... any of the above Ans ..2.....www...onlyforbankers....b ………………………………………………………………………………………………………………………………………………………………… www... www.... 7 b.. minimum PLR ... w w w Ans .. 120 d... 09994452442 212 ..... UCDPC b.. Negotiation st ..com... 21 d... .. at the money b......com. www.. 30 iib In case where advances for PCL are covered under Whole Turnover Policies of ECGC... www........ maximum PLR ...jaiibcaiibmocktest.com.. When the strike price is above the spot price for the call option.b .com.com.c o Ans ...com.... com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail.... iib Ans . 60...onlyforbankers... EEFC c.jaiibcaiibmocktest.c ............ 30 th Ans .. Gifts of goods worth not over Rs 5.......... www. 180. www....... 360 ca Which of the following is not exempt from EDF (Export Declaration Forms)? ....bankpromotionexams.. days and this period can be extended by banks up to ....... 180 d..com...com.... account maintained by the AD for this purpose...... w w Sight bills drawn under import letters of credit would be crystallized on the ... ………………………………………………………………………………………………………………………………………………………………… www..c o m Export proceeds from any of the ACU countries is settled through a separate . Rupee b. DDA te Ans ...www.a .. All are exempted from EDF w Ans . Goods not exceeding USD 1000 per transaction...............com.....onlyforbankers...com...com.......... www.. Dollar / Euro d..com.. 09994452442 ………………………………………………………………………………………………………………………………………………………………… st . Goods or software exceeding USD 25..... 09994452442 213 . 00..d .......ja iib a...000 in value b. 30.....jaiibcaiibmocktest.. 120 c..... 60 b. 15 th d............. exported to Myanmar.. oc k The total period of PCL should not exceed . 120... www...........com.. a........... 10 th b....... days (for availing concessional rate of interest)......com. under bilateral trade agreement d.com murugan0501@gmail. admin@jaiibcaiibmocktest.. day after the day of receipt if not yet paid..... [email protected]..... m a..... a.... 11 th c... 000 c......a ........ ja Ans ............ a...a ....... IBS ...... www.. IBS Ans .....com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected] o a...com murugan0501@gmail..... form.........com.........jaiibcaiibmocktest. STAT 5 b.... NRDCSR c.onlyforbankers.. [email protected]........ Data on transactions related to FCNRB deposits is submitted to the RBI in .b te .....a . FEMIS d... form....com..... STAT 5 b........ Interest c. STAT 5 ………………………………………………………………………………………………………………………………………………………………… www... form.. www.com... Financial b.. BES iib m Ans . NRDCSR d.. R Return b. st ...www...... www......b ..... Fortnightly data on forex operations is submitted to the RBI in ......... oc k a.. www.........com. Forex Ans ..com.. STAT 8 c....jaiibcaiibmocktest............... iib ca a... Daily data on forex dealing room operations are submitted to the RBI in . Data on transactions related to NRE and NRO deposits is submitted to the RBI in .. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Exchange of streams of interest structures are called as .. 09994452442 214 ............ admin@jaiibcaiibmocktest.. STAT 8 c.com. w w w a...com............... NRDCSR d........ Currency d...onlyforbankers.....bankpromotionexams..bankpromotionexams. form. Swaps.............. ..ja The goods eligible for deferred payment export are classified into two categories .com....capital goods and consumer durables a..production goods and industrial manufacture Group B ... oc k te a.com....consumer durables and industrial manufacture Group B ... 360 Ans ..jaiibcaiibmocktest....bankpromotionexams.b . 6 months c.......b ... 180 d.com........c .com......bankpromotionexams.. www. 12 months iib Ans ......onlyforbankers.... 120 c... NRDCSR d... www....... .com.group A and group B.... both 2 and 3 d.... 09994452442 ………………………………………………………………………………………………………………………………………………………………… st ... FEMIS c..... 09994452442 215 .www. ………………………………………………………………………………………………………………………………………………………………… www...... www.......... www. m What is the statutory time limit for export proceeds to be treated as deferred payment exports? ca iib a....... 9 months d.. admin@jaiibcaiibmocktest.... w w w Group A .......com............a ....... days. both 2 and 4 Ans .com.................com murugan0501@gmail... Select the correct pair.. Commercial bills which are authorised to deal in foreign exchange can rediscount their shortterm export bills with a usance period of ...onlyforbankers.. IBS Ans ..... admin@jaiibcaiibmocktest............. 90 b..... both 1 and 2 b. 3 months b... both 1 and 3 c...c o m b...com..............capital goods and production goods Group A ..jaiibcaiibmocktest.....com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail. . In direct quotes......com..bankpromotionexams.....com.com..........c .... www. st ..com [email protected] Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail.......... Kenyan Schilling c ......... JPY b... ca Ans ..onlyforbankers........a . ………………………………………………………………………………………………………………………………………………………………… www.. local currency is fixed.bankpromotionexams.........www. 2 and 3 d.... iib Which one is not to be quoted per unit Foreign Currency against 100 Units? w .. GBP c... a........com.. 2 and 4 oc k Select the incorrect sentence / sentences from the following: te Ans .. ECGC Ans .. 1 and 2 b....com.... w w Who manages Export Marketing Fund in India......com....c o a.... In indirect quotes. 1 and 3 c.. iib m a..... EXIM bank b............ 10 crore c..jaiibcaiibmocktest......jaiibcaiibmocktest.. www. In indirect quotes....... GOI d........ admin@jaiibcaiibmocktest....... 50 crore In direct quotes.. local currency is variable..... www..... 1 crore b...ja a. Indonesian Rupiah c...... 09994452442 216 .com..... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m The sponsoring bank can approve finance against exports on deferred payment basis for a maximum amount of ....... local currency is variable. www........... 25 crore d... RBI c...onlyforbankers. admin@jaiibcaiibmocktest. local currency is fixed.c ......com.... ... admin@jaiibcaiibmocktest. 09994452442 217 ............... www.com.onlyforbankers.... Legal risk d...... must be crystallized into rupee liability..........com........jaiibcaiibmocktest.c o a...bankpromotionexams. Sovereign Risk b.. c...com.. oc k Export bills drawn in foreign currency.....jaiibcaiibmocktest.. PIO b. st ..com... m a......com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail.. www.. ………………………………………………………………………………………………………………………………………………………………… www. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m ...........b ......com....bankpromotionexams. Contrary risk c.......onlyforbankers.......... www........... Market price b........... TT selling rate.... is the possibility of a major bank failing and the resultant losses to counter parties reverberating into a banking crisis...com...... NRI c.......c .com. Resident Indian d. Forward rate iib a. TT buying rate c. The same would be done at iib Ans ....ja Ans ... Systematic Risk te Ans .............com murugan0501@gmail. w w w The exposure relates to valuation of foreign currency assets and liabilities at the end of accounting year at current realizable values... admin@jaiibcaiibmocktest........... Foreigner ca Indian working with foreign govt abroad is a ............ purchased/ Discounted/ negotiated... www.www..d ..........b .com.. Foreign exchange risk Transaction exposure Translation exposure Operating exposure Ans .. .. Interest rate risk c...... (ii) spot: which is to be settled on the same day............ Sensitivity d.....onlyforbankers........ a....bankpromotionexams.... All of them Ans .... Which of the following are correct regarding type of exchange transaction? (i) TOM: delivery of foreign exchange takes place on the next working day of the contract.......com. Mitigation Yield curve risk with respect to different maturity sectors................ Volatility c. m a....jaiibcaiibmocktest.......d .com. oc k In risk measurement. (ii) and (iii) te Ans ...b .. w w Market Risk involves .. www....... 09994452442 218 ........c . say 1% change in interest rate is called... (i). ..com [email protected].. Only (ii) and (iii) d....... [email protected]. [email protected]... 09994452442 ………………………………………………………………………………………………………………………………………………………………… st ..com. www.......www... is a type of a ...ja iib a....bankpromotionexams..... Market risk w Ans ..... Only (i) and (iii) c. www. Basis risk d.......c . Risk Identification b..... Risk Measurement c. (iii) Forward: delivery of foreign exchange takes place beyond second working day of the contract a.... Downside potential b..... ………………………………………………………………………………………………………………………………………………………………… www.... Risk monitoring and control d........... Liquidity risk b....... iib ca Ans . Only (i) and (ii) b.......c o m Forex transactions are classified according to date of deal and date of delivery......com..com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail. www....com..... the parameter that is used to capture deviation of a target variable due to unit movement of a single market parameter. ............... the LC or firm order should normally be produced in the bank within . iib In Credit Running Account facility provided to commodities covered under 'Selective Credit Control'.. Duration method a..com.. www.com. account facility.......c . ………………………………………………………………………………………………………………………………………………………………… www..bankpromotionexams........com murugan0501@gmail.. 7 b..........com..com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail. Basis Point Value 2. rediscount m Ans ....d .bankpromotionexams. iib ca a...com. w w w 1.... Both 1 and 2 d.. All marketable assets d..onlyforbankers....ja Ans .... st .... www.onlyforbankers........ www.. 15 c........ oc k a.. Methods of assessment of Market risk are ......... 30 ....c o a.........www.jaiibcaiibmocktest........ Only 1 b............com..........com....... 21 d.. admin@jaiibcaiibmocktest.............. Only 2 c.. incoterm b........ All long term liabilities Ans ........ rupee c. running d.......com.. te A PCL allowed without prior lodgment of LC or firm export order is called . 09994452442 219 . www...c ....c .... All liabilities c. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Trading book includes ... [email protected]. None of these Ans ...... All assets b.....com. from the date of sanction.... ..ja iib a... (iii) TT Selling Rate a. (ii) and (iii) Ans ...............com...com......com murugan0501@gmail.bankpromotionexams.com.......bankpromotionexams..... admin@jaiibcaiibmocktest.... Investment in government securities b........ w w When there is outward remittance and handling of import bills is involved.www. All the statements are correct b.......... st .... Only (ii) and (iii) d. ca Ans ..onlyforbankers...c ... Statement 1 is correct c...jaiibcaiibmocktest...com... Higher the risk-lower would be risk premium c.... Statement 2 is correct d.......onlyforbankers..com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected] .........c o Reduction of downside potential Reduction in profit potential Which of the following is true? te a.... 09994452442 220 .. Lower the risk-higher would be risk premium d.. (ii) Bills Selling Rate..com... Investment in zero coupon bonds c.jaiibcaiibmocktest..com.... Only (i) and (iii) c....... Both are incorrect Zero-risk investment implies .a ........ www..com......... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Risk mitigation results in ... admin@jaiibcaiibmocktest..... Only (i) and (ii) b... Zero variation in cash flow from investment d.... None of the statements is correct w Ans .. Which of the following statements is correct? ......com... www... which of the following rates will not be applied? (i) Bills Buying Rate... iib m a... www. www.......... (i)........... Investment in bank fixed deposit oc k Ans .... Higher the risk-higher would be risk premium b..b .............. ………………………………………………………………………………………………………………………………………………………………… www...... com.bankpromotionexams... 6 d. importers for long-term exports. b & d only c. no such limit iib Standard policy of ECGC covers .. months..... a...ja a.... All of them oc k Ans ...com.... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Which of the following derivatives are the off balance sheet exposure ? st ...com...b....bankpromotionexams..... iib m a. Risk-free interest rates of the two currencies b.c o a. importers for short-term exports.... What is the maximum amount of foreign currency notes that a person resident in India can possess or retain? ca Ans .......com...com. In case of free currencies. ... 2 b... USD 1000 b.... admin@jaiibcaiibmocktest........ Options te a....... Forward contracts d.....www.c .. & d only b..... Spot rate and Tom rate d.... www.. and the period covered under commercial risk is .........com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected]. [email protected] ...b .....onlyforbankers.. USD 1500 c.com murugan0501@gmail...... exporters for short-term exports.. www..... 4 c..com... USD 2000 d. www.. www....onlyforbankers..... forward premium or discount is exactly equal to the difference between a....com...... a & c only d. Swaps b..... 09994452442 221 . exporters for long-term exports.. LIBOR and RBI reference rate Ans .a ………………………………………………………………………………………………………………………………………………………………… www.... 8 w w w Ans .... Inflation rates in both the countries c....jaiibcaiibmocktest. Futures c.... ......... swap of shares ………………………………………………………………………………………………………………………………………………………………… www........ Sri Lanka b. 5000 c. 10000 d. Bhutan c... the market price is equal to the strike price d....... a put option can never be in the money te Ans .. www.d .....onlyforbankers..b ....b . In perfect markets where the currencies are fully convertible and the markets are highly liquid A put option is in the money (ITM) if oc k a...... iib FEMA allows residents to make gift remittance to relatives. Myanmar d...... the strike price is more than the market price c. [email protected] murugan0501@gmail. or . 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Forward rates fully reflect interest rate differentials only in st .......... Which of the following is not a method by which Indian can invest abroad? 1.......com..bankpromotionexams.........com.... Nepal........ www..com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected]. m Ans ....com........ None of these Ans ........jaiibcaiibmocktest... Economies where interest rates are free d..com...... 1000 b......... iib ca a. Pakistan.......... Exchange for current account transaction with any person resident in ... 09994452442 222 ...com.b ..... 100000 .........com.... the strike price is less than market price b..... is prohibited... www.....com...com..www... Developing economies c......onlyforbankers.. www..c o a. China.........ja Ans ... in one calendar year....... w w w a.... admin@jaiibcaiibmocktest. Controlled economies b... friends etc abroad up to USD ..... SB and TD are affected by change in interest rate.... capitalization of exports made to the investee company abroad 3.85000 Crores d.. Reserves-6000......bankpromotionexams........com.. none of these m 2..... positive gap ………………………………………………………………………………………………………………………………………………………………… www....... Rs..com.. cash credit-20000.....onlyforbankers. Total-100000. Rs. both 1 and 3 d.. Current account deposit 30000...c o a.com.... www.. admin@jaiibcaiibmocktest... on the assets side the cash ............ Rate sensitive liabilities of the bank are w w w a...ja Ans ..investment-15000....jaiibcaiibmocktest. Saving bank deposit 3000.........www....com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected] ..55000 Crores b...... Rs....com.75000 Crores c.. only 1 b.........c .. 09994452442 223 .com... [email protected] ...70000 Crores Ans . www.....com.. Rs..63000 Crores b..onlyforbankers.jaiibcaiibmocktest..com... only 2 c..... The above bank has . m oc k The balance sheet of x bank provide the following information as on 31 Mar 2015 Rs (in Cr) Capital 1000. Earning assets out of total assets are 90000 cr.6900..com.95000 Crores ca Rate sensitivities assets of the bank are . www. a. bills purchased = 20000... term loans-20000 and fixed assets 3100... balances held in EEFC accounts te Ans ...93000 Crores c... Term deposit 30000 and borrowings 3000... Term loans carry fixed interest rate...bankpromotionexams.... iib a. Cash credit.. Rs. www.. 09994452442 ………………………………………………………………………………………………………………………………………………………………… st ... iib Based on the data given above..60000 Crores d. bal with banks-15000. bill purchased and investments are affected by change in interest rate..... Rs. Rs. answer the following questions. Rs..com murugan0501@gmail.. ..com...www......bankpromotionexams........ Rs.. ATM (at the money) b... 10000 Crores m Ans ....a .com......... Rs.......com. 1-a.. www. ITM (in the money) c.b .com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail. negative gap c.bankpromotionexams.. 7000 Crores a...com murugan0501@gmail. Rs. www....... [email protected] Match the following beta factors with the business lines under standardised approach: w w w Agency Services a. 3-b d. 1000 Crores a.onlyforbankers..... 18% a... ………………………………………………………………………………………………………………………………………………………………… www............onlyforbankers...... 1-a.... 3-b Ans ....... the option is known to be . ca a.....jaiibcaiibmocktest. 8000 Crores a....c o m b. 2-a.com........com...... www..... 1-b...com.com.. none of these iib If the strike price is same as the spot price of the currency..... 2-c. te Tier-I capital of the bank oc k a. 2-b.. 09994452442 ………………………………………………………………………………………………………………………………………………………………… st . iib Ans .... 15% Asset management c.... admin@jaiibcaiibmocktest.... 3-c b.. 2-c. OTM (out of money) d.... 12% Payment and settlement b. www..... marginal gap d........ Rs..... 3-a c.... zero gap Ans .com........b Liabilities is more than assets since negative ..b ... ..... 1-c...........jaiibcaiibmocktest.... 09994452442 224 ............... .com.. (i).......jaiibcaiibmocktest.www...com.... ………………………………………………………………………………………………………………………………………………………………… www.. Interest rate risk d.. 09994452442 225 ..... www..... Accounts of foreign banks with Indian banks c. None iib m Ans ....... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Account of a bank in India with a foreign correspondent bank abroad in foreign currency is not called as ............com... Regional/Zonal level c. Only (ii) and (iii) d..... Portfolio risk is called the risk at ... Current accounts denominated in foreign currency maintained by banks with their correspondent banks in the home country of the currency d..........c .....c o a..............com..bankpromotionexams....... (iii) Nostro st . (ii) and (iii) te Ans .....com..... admin@jaiibcaiibmocktest. Branch level b.... admin@jaiibcaiibmocktest.... 'Nostro' accounts are w w w a....onlyforbankers..... Exchange rate risk b...... Short term investments with AAA rated foreign banks Ans .... www. www.........c ...a .. www.......com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected] .bankpromotionexams.jaiibcaiibmocktest.........com... Only (i) and (ii) b. Aggregated level d..... Time difference risk c.. None of these .com.......com murugan0501@gmail.. (ii) Vostro....ja Ans ..onlyforbankers....... (i) Loro... What kind of risk on settlements is covered by 'Herstatt Risk' for which BCBS was formed? oc k a.... Accounts meant for reconciliation b............ iib ca a... Only (i) and (iii) c. (iii) red clause credit ....a ..jaiibcaiibmocktest.. forfaiting c.www..ja Ans . m a.onlyforbankers...bankpromotionexams. st ... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Banks are allowed to charge interest on PCFC and EBR for 180 days not exceeding ............ forfaiting Ans .. factoring d.... to facilitate financing of medium term export bills through . a.. admin@jaiibcaiibmocktest.......... Only (i) and (iii) c............ 09994452442 226 .........com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected]......... Only (ii) and (iii) d..... iib Ans ...... 120 b..... Exim bank.com.. Only (i) and (ii) b.... days..... 1. (ii) and (iii) ca A 'Green Clause' letter of credit is not an extension of . 2..... IRDA....c .com.........5 c.............com [email protected] .. 180 c.... factoring b. (i)....0 d.... 0.... ………………………………………………………………………………………………………………………………………………………………… www.com.c o a.. oc k For gold card status holder exporters........com.% over the benchmark (LIBOR /EURO LIBOR/EURIBOR).. the concessive rate of interest on post shipment rupee export credit may be extended for a maximum period of ................ 365 iib a... www. www.... SEBI......bankpromotionexams.... w w w RBI has permitted ..com.. (i) transferable credit.... admin@jaiibcaiibmocktest... Exim bank.... www.5 te Ans ..com.... 2...... 360 d.......b ...com...com....onlyforbankers... www.. (ii) confirmed irrevocable credit....5 b... ......... exim policy b. admin@jaiibcaiibmocktest. Equal d...com..com................. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Physical movements of goods into India is regulated by ..... Either Low or High iib m Ans ...c o a.................bankpromotionexams.......... None of the above ..com..com murugan0501@gmail. iib ca a.. Low c. www....com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail.. as compared to other opportunities available in the market..... These are .. www. Downside potential has 2 components. Potential Losses and probability of occurrence c...... a............ High b...... Profit Potential and probability of occurrence d.......... admin@jaiibcaiibmocktest... Which is not to be taken into account for risk pricing? w w w a.b . trade policy Ans .... RBI...com...ja Ans .b .. The transactions of treasury with customers are known as ..com......www........ oc k a. exim policy..... RBI d...bankpromotionexams.jaiibcaiibmocktest....... investment ………………………………………………………………………………………………………………………………………………………………… www.. Capital Charges Ans .............com. Loss Probabilities c... business..onlyforbankers..... DGFT.......formulated by the .. exim policy.....com. Potential Losses and Profit Potential b. 09994452442 227 .. DGFT c...... www...b .. st ..com.........onlyforbankers.. www.. Profit Probabilities d... te Return on Zero-Risk investment would be ...........jaiibcaiibmocktest... Operating Expenses b.c . . Merchant book d.. which of the following is managed by the treasury for its client ..com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail..... www..... which of the following is managed by the treasury for managing its proprietary positions? a..www......com....related currency and derivative transactions? w w w a. www... Investment book m In respect of the three distinct roles the treasury is expected to play...c .............. Trading book c.....com. admin@jaiibcaiibmocktest............... .... trading and risk management c. admin@jaiibcaiibmocktest..... retail Ans .... 09994452442 228 .bankpromotionexams. Merchant book d.. Investment book Ans ...com. www.com [email protected].. merchant d....bankpromotionexams. Trading book ………………………………………………………………………………………………………………………………………………………………… www...com..ja In respect of the three distinct roles the treasury is expected to play...... ALM book b.... Which of the following is not an activity of treasury? oc k te a..... www.....com.. which of the following is managed by the treasury for its internal risk management? iib Ans ......c o m b...........a ......d .. iib ca a........c .... In respect of the three distinct roles the treasury is expected to play.....com...onlyforbankers. ALM book b. Trading book c....com..jaiibcaiibmocktest...... ALM book b.. forex operations b.......jaiibcaiibmocktest... 09994452442 ………………………………………………………………………………………………………………………………………………………………… st ..... trading c. investment and fund management d.. none of these Ans ......................... admin@jaiibcaiibmocktest............ (ii) Green Clause w w w .. Tom transactions oc k Ans .. RBI has imposed which ceiling of total business in a year with individual brokers.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected] ..... ADs in India refer to such accounts as accounts.......onlyforbankers...... 2% b.. 09994452442 229 . Loro b.. Nostro Ans ........com.. www.......com.bankpromotionexams... ca iib a. foreign banks maintain accounts with ADs in India in Indian rupees. iib LC in which a second set of fresh LC opened in favour of second beneficiary on the strength of original LC is ..... 10% ………………………………………………………………………………………………………………………………………………………………… www. FCNR c...............jaiibcaiibmocktest......c ........ja a....c o Ans ....com murugan0501@gmail...... www.jaiibcaiibmocktest. While the exposure limits are generally left to the banks discretion. LC (i) Back to Back............ admin@jaiibcaiibmocktest.......... All the exchange rates quoted on the screen or in print are for mentioned unless otherwise ...com........ www...... www....... In their mutual communications.... 5% c......onlyforbankers..a ... te a.. Forward transactions b..com. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m c. m For the purpose of foreign exchange transactions. Spot transactions d..... Only (ii) c...com... Merchant book d.www... Vostro d.....com....com.....b .... Both (i) and (ii) Ans ........ Only (i) b...... Either (i) or (ii) d.. a. Investment book st ......com.. Cash transactions c...bankpromotionexams. www....com. none of these w w w Ans .. Protection of risk in a transaction usually through derivatives product is called ................ admin@jaiibcaiibmocktest. Interest rate d. www. hedge d......b .. arbitrage oc k Ans ... Market Which of the following methods to measure market risk is based on downside potential? .. credit c.......c ....... Which type of risk arises When banks have more earnings assets than paying liabilities ? ca Ans ..c o Ans .. a.....jaiibcaiibmocktest........ a fraction of the obligations is paid.......... market b..com.com.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected] iib a... VaR d........jaiibcaiibmocktest.... admin@jaiibcaiibmocktest....... This is known as .......... recovery d. te a...com......com..... BPV (Basis Point Value) b......onlyforbankers.. Liquidity b................ swap c...... Operational c. iib m a.c ………………………………………………………………………………………………………………………………………………………………… www..bankpromotionexams. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m d. rate... www......c ..... www............ 09994452442 230 ......... www.... 15% st .....com.com murugan0501@gmail.... insurance b.. In the event of default credit risk (potential changes in the credit quality of the borrower)........c .. Duration c.bankpromotionexams...onlyforbankers.com...com. NPA Ans ..... . Uncertainties resulting in adverse variation of profitability or outright losses b.. Interest rate risk d......d .. iib a...onlyforbankers....... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Worsening in credit quality of a borrower creates ....... credit spread 3.. admin@jaiibcaiibmocktest.. 2 and 3 c.... Variations in net cash flows w Ans ... Controlling the level of risk to an organization's capacity Ans .com.. 4 d..............com.. default 2... Identification of risks c.jaiibcaiibmocktest...com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected] ....d .......... ………………………………………………………………………………………………………………………………………………………………… www......... downgrade 4.....bankpromotionexams... risk. w w What is the most critical function of Risk Management? a...jaiibcaiibmocktest. Uncertainties that result in outright losses c.....com......... 1 or 4 oc k Ans ....bankpromotionexams.. portfolio te a. www....... admin@jaiibcaiibmocktest.... Measurement of risk b.. Time difference risk c....com murugan0501@gmail.... None m What kind of risk on settlements is covered by 'Herstatt Risk' for which BCBS was formed? Financial Risk is defined as ....com..com... 09994452442 231 ........c o 1.... ca Ans ...............onlyforbankers.. .............. www.. 1 b.. Estimating the costs of risk d............com.com. www...www... www...... st . Exchange rate risk b.ja iib a. Uncertainties in cash flow d...com.....b ..... [email protected].... risk. The portfolio when not diversified gets .. 2 c.... default te a... intrinsic 4..www. 90 b.com. admin@jaiibcaiibmocktest......... 1 or 3 d.com....... risk. 1 or 3 d... 3 and 4 oc k Ans . 120 c.. www........com..onlyforbankers.. 1 or 2 b.. www. 180 d...com.c o 1.. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m The portfolio when diversified fully (which reduces portfolio risk)... 1 or 2 b................jaiibcaiibmocktest...... Low-risk investment ………………………………………………………………………………………………………………………………………………………………… www.bankpromotionexams...... default iib Ans .... 09994452442 232 ...com.........bankpromotionexams.... concentration 3.... 3 and 4 m 1.com...com.. .... Investment in Post Office time deposit is .....b . 2 c. systematic 2............. iib ca a. days from the date of shipment. a...... w w w a......com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail.. www....c ..... www..... gets ..c ... concentration 3.... systematic 2.com murugan0501@gmail...... the concessional rate of interest cannot exceed . st .. intrinsic 4..ja In post-shipment advance...... 360 Ans ....com.jaiibcaiibmocktest.. .jaiibcaiibmocktest..........bankpromotionexams. Zero-risk investment Ans ...bankpromotionexams........com.. None of these Ans . market rate.... money c.....jaiibcaiibmocktest....c o m b...www.... admin@jaiibcaiibmocktest... Crystilization b............. iib Banking books does not include which of the following? w .. securities d. admin@jaiibcaiibmocktest.. 09994452442 ………………………………………………………………………………………………………………………………………………………………… st .onlyforbankers... Capital d.... 1.. m Risk can be mitigate through ...c .....c .25% c. Bill rediscounting is done at . a..com... www..onlyforbankers.... www......... All borrowings c...... 0...............com......com.. foreign exchange b..com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail....... High-risk investment d............. www....d ....b . www...com [email protected]. All deposit and loans b.. Diversification c..com...... 5% b.. ca iib a... b & c Ans ........58% d..com.. global ………………………………………………………………………………………………………………………………………………………………… www....ja a......5%.... Portfolio risk d.. All of these w w Ans ......... Medium-risk investment c..... Daily volatility of a stock is 0. What is its 10-day volatility? oc k te a.. 09994452442 233 ..... b ..... w w The risk in treasury activity is known as ______ risk........... liquidity d.... market c.... 09994452442 234 ....... 200.jaiibcaiibmocktest... top office ca The maximum borrowing on any day is limited to ___ % of capital. 25 b.....com. . 09994452442 ………………………………………………………………………………………………………………………………………………………………… Ans ......b ...... [email protected].. 50 c... operational Ans ... www..com - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail......... st . front office b...... 125.....onlyforbankers... NI Act 1885 te Ans ....................bankpromotionexams................c ......a ...com....onlyforbankers..b ..com...... www...... m Facebook Groups a..... www.... Companies Act 1956 d. 100.. and maximum lending is limited to ____ % of capital... BR Act 1949 c...... 50 d.. m a. RBI Act 1934 b... www..com murugan0501@gmail....... 200. ………………………………………………………………………………………………………………………………………………………………… www..............com.....bankpromotionexams........ja iib a.........jaiibcaiibmocktest............ mid office c. oc k Which part of treasury performs the confirmation..com....... a... credit b. admin@jaiibcaiibmocktest... 100 w Ans .www........com..com... accounting and settlement of the deals? iib Ans ....... back office d...c o The level of CRR to be maintained by scheduled banks with RBI is mentioned in ... .com.... Funds placed for periods in excess of 3 months but not exceeding 1 year d. iib In India..... admin@jaiibcaiibmocktest....... Placement of funds beyond overnight but not exceeding 14 days c...jaiibcaiibmocktest.com murugan0501@gmail.. Maturity mismatch..b ........ The currency futures markets were existing for a long time but were lying dormant iib Ans ... August 2008 b. Funds placed overnight b....onlyforbankers......onlyforbankers..com. NPAs. months... 2 ………………………………………………………………………………………………………………………………………………………………… www.com.com.. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m What is the beta factor for corporate finance under Standardised approach? st . Committed lines......... total assets and performing loans Ans ....a ..............a .............. www........ Funds placed after giving a notice of placement m Ans . August 1993 c. a....... 18% c.. 15% b.bankpromotionexams. The market yet to commence operations d..bankpromotionexams.b .....www.. receipts and payments c.....com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail. cash inflow and outflow b..com... te Notice money refers to oc k a. www...........com.. The period of validity of specific approval under guarantee given to high political risk countries is ........jaiibcaiibmocktest... None of the above Ans .............com..c o a..... 09994452442 235 . Total cash held.... www.......... market for currency futures commenced in ca a..... 12% d........ja Liquidity risk is reflected as w w w a.. www..... lines utilized and unutilized d.. ..... [email protected]. . Call risk c....30% d.......... 5... 25...... m Which of the following is the liquidity risk ? oc k te a................... www. w w w .04...2015 b... 6 Ans ... Time risk b..... days........ 21...... Suppose a sight bill is drawn in USD and is submitted to the bank on 01......2015 c......04.. 25.jaiibcaiibmocktest. 21 b. What is its McCauley's duration? Ans .....com.. a.. Its modified duration is 5 years..... A bond with remaining maturity of 5 years is presently yielding 6%.. Price risk d.com.com [email protected]........... 25 d..com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail.... 28.04.c o m b. 21..bankpromotionexams.com..............jaiibcaiibmocktest...... usance period + 25 days NTP Ans ....2015 ………………………………………………………………………………………………………………………………………………………………… www. 3...com....... admin@jaiibcaiibmocktest.. www..c ... (date)... usance period + 21 days NTP c..www.... admin@jaiibcaiibmocktest... 3 c.... 09994452442 ………………………………………………………………………………………………………………………………………………………………… st . Funding risk iib Ans .... 4 d.... 6..00% ca iib a.d ... 28.......ja a........... days and NDD will be ..com.onlyforbankers...77% c. The NDD of the usance bill (foreign currency export bill) is .....c . the NTP allowed will be ..com...bankpromotionexams..com.onlyforbankers. 09994452442 236 ..2015.. www..05% b..d ... 5.... www....com.. ....bankpromotionexams.........jaiibcaiibmocktest. www... www..com. 30....c o Ans .. Capital = Min capital ratio (18%) * (Credit Risk + Market Risk + Operational Risk) Ans ... all of these m Basel II accord is based on 3 pillars............... Minimum capital requirement b......d . ca iib a. 09994452442 237 . 150 ………………………………………………………………………………………………………………………………………………………………… www...........com... admin@jaiibcaiibmocktest.... Market discipline d....onlyforbankers...... Basel II defines capital requirement as . 50 b.......jaiibcaiibmocktest..www. Only (i) and (ii) b.... Supervisory review process c................com...com. Only (i) and (iii) c.. www.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail... If a letter of credit and UCPDC have contradictory provisions which of the following statements will be 'false' in this regard ...2015 st . Only (ii) and (iii) d. These pillars are . Capital = Min capital ratio (8%) * (Credit Risk + Market Risk + Operational Risk) b..ja a. iib Ans .....................a .... Under standardized approach for credit risk...b ...... 30. (i) Provisions of UCPDC will prevail over those of Credit.... loans considered past due is risk weighted at .......com murugan0501@gmail.. Capital = Min capital ratio (8%) * (Credit Risk + Market Risk) c.b .04... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m d... a.com...com..... (ii) and (iii) Ans ...com...bankpromotionexams....% (under normal case)............com..... (ii) Provisions of Letter of Credit will prevail over those of UCPDC...... w w w .. [email protected].. Capital = Min capital ratio (8%) * Credit Risk + Market Risk * Operational Risk d.. 100 c... (i)............ www. (iii) Better of the provisions of UCPDC or Credit as applicable to beneficiary will prevail oc k te a.... a . te a.....com... 75 d.. iib m a.bankpromotionexams.. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m d......jaiibcaiibmocktest...... In case of Domestic banks risk weights are assigned depends on? ca Ans .. 50 c.....com.... Default risk and systematic risk b.. 150 oc k Ans .. None .com. w w w Ans .c .....onlyforbankers.....% of total capital.com murugan0501@gmail.... CSU d... Down . www.b ...........c ………………………………………………………………………………………………………………………………………………………………… www.......... Concentration risk and intrinsic risk d.....com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected] a.com.bankpromotionexams.onlyforbankers... Default risk and down -gradation risk Ans .c o Ans ................... admin@jaiibcaiibmocktest. 50 c. www...... www. The exposures to retail and SME sectors are assigned a uniform risk weight of .. ECA c.........com... www.......... 25 b.com......c .......... 75 d.... 09994452442 238 .....gradation and concentration risk c...... admin@jaiibcaiibmocktest..... CRAR b..com... 25 b..........www........... Which of the followings are components of portfolio risk are? a....com. 200 st .....% under standardised approach for capital risk.jaiibcaiibmocktest. 100 iib Tier – II capital should not be more than ........... .... www........ja Ans ..........................c .. www.. Only (ii) c.. www. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m For retail exposures... Only (i) b....bankpromotionexams..com........ 15% of average gross income over 3 years c.com.. Either (i) or (ii) d.... www.... 09994452442 239 . capital charge equals internally generated measure based on internal and external loss data b.......... none of these .com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail. st .......com. ………………………………………………………………………………………………………………………………………………………………… www. m a... [email protected] ...........c o a........... both d. ......... sum of capital charges across business lines d...onlyforbankers.... 60 d....jaiibcaiibmocktest.com.................bankpromotionexams..com [email protected] .d .www.......jaiibcaiibmocktest. only foundation b... 90 Ans . (i) one on the strength of which another bank's guarantee is obtained..com......... w w w Advance against undrawn balance can be made at a concessive rate of interest for a maximum period of ..... days..onlyforbankers..com...com. IRB approach is prescribed..... none of these Ans .... 30 b.... oc k te A 'Back to Back' letter of credit is .... admin@jaiibcaiibmocktest.. 45 c. only advanced c..... (ii) a second set of fresh LC opened in favour of second beneficiary on the strength of original LC iib Ans . a...com. Both (i) and (ii) ca How capital charge is calculated under basic indicator approach for operational risk? iib a.......... ..........ja Ans ...... correlation method d...jaiibcaiibmocktest.... www.. 91 days T-bill b.....com... w w w In which method of calculating VaR.... with respect to operational risks. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m In general....... with respect to credit risks and .com....com... www... www..d . Which of the following T-bills are issued weekly on each Wednesday? oc k a.. www.....com.. FIMMDA and Reuters d...jaiibcaiibmocktest.. a... SEBI ........ decrease c.c o a. increase te Ans .........c .com... GOI c. banks' required capital would ........ historical simulation method b.. 182 days T-bill b.a .....com murugan0501@gmail.... increase... increase b.. RBI b.....bankpromotionexams... decrease........ [email protected]. but starting from the current value of the asset.........com........ monte carlo simulation method c..bankpromotionexams. ca Which of the following publish(es) benchmark T-bill yields for one week to one year based on residual maturity of T-bills in circulation? iib a.. admin@jaiibcaiibmocktest..... increase.www....onlyforbankers...com.a ........onlyforbankers...... none of these Ans .... 364 days T-bill d.. the change in the value of a position is calculated using the actual historical movements of the underlying assets.......... st ... both b and c iib m Ans ..................... decrease d. ………………………………………………………………………………………………………………………………………………………………… www. decrease.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail. 09994452442 240 .. ........ Enhance disclosures b.............. 6 c. www..com.. 4 b.onlyforbankers......... Core disclosures and Supplementary disclosures c.c ... 10 Ans .......com...... 8 c. 5 d...com [email protected].. The exemptions from DTL include: a. www... 09994452442 241 ......................... 4 b.. 8 d....com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail.. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Bank's activities under standardised approach are divided into ........ none of these te Which capital is called supplementary capital? m Ans ..com....... Tier-I b.. oc k a.com. iib Pillar – III Market Discipline does not consist of .ja From the operational risk management point of view banking business lines have been grouped in how many major heads? w w w a..bankpromotionexams..com.....www....bankpromotionexams.b .com.....c o a...c ........ Timely at least semi annual disclosures iib Ans .........b ........ . st ........ admin@jaiibcaiibmocktest.... business lines...... Review Market ups and down d... Tier-II c...... 2 Ans .... Tier-III d... www........ time deposits ………………………………………………………………………………………………………………………………………………………………… www.........onlyforbankers...com... ca a...com.... www. [email protected]...... ..........c .. (i).com. www. Sensitivity d..bankpromotionexams.. 09994452442 ………………………………………………………………………………………………………………………………………………………………… st ........ NDS c......onlyforbankers..... say 1% change in interest rate is called ..... ca iib a......... 09994452442 242 ....c ..c ..... oc k a..... Mitigation Ans ..............com.... (ii) Transferable L/C is one which is expressly written to be 'Transferable'...com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail... (ii) and (iii) m Ans ... IDRBT b....com [email protected].. admin@jaiibcaiibmocktest......... a......... admin@jaiibcaiibmocktest.. www.....onlyforbankers........ www..jaiibcaiibmocktest. w w w In risk measurement.....com..com... (iii) Transferable L/C can be transferred only once but can be transferred to more than one parties..c .. ………………………………………………………………………………………………………………………………………………………………… www..www..com. Volatility c........jaiibcaiibmocktest...com.. Only (i) and (iii) c..... Downside potential b..... overseas borrowings Ans .ja Ans .....com........ foreign outward remittances in transit c.. Only (i) and (ii) b..... the parameter that is used to capture deviation of a target variable due to unit movement of a single market parameter..... transactions in CBLO with CCIL d... www.......... Only (ii) and (iii) d.. NSDL and CSDL d..... te Which of the following feature(s) apply to a 'Transferable Credit'? (i) Transfer of such Credit by second beneficiary back to first beneficiary is not permitted..c o m b. NEFT iib Which of the following institutions facilitate DVP (delivery v/s payment) for secondary market deals in equity and debt paper? ...com.... Credit Risk b... Liquidity Risk ...... iib ca a.. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Potential loss in loan assets is known as ______ risk. PCFC can be allowed initially for a maximum period of ............bankpromotionexams.............com..com..com [email protected].... Embedded Option Risk d...... www... operational Which is not an approach to measure Operational Risk? iib m Ans .c ......c o a..... Risk based system Ans . 90 ………………………………………………………………………………………………………………………………………………………………… www....... Basic Indicator Approach b............... liquidity d.c .... days..com...jaiibcaiibmocktest...com......... Risk netted return on equity c.... Funding Risk c..... market c.a .com.com... www.... IRB Foundation approach d..... www.. Risk adjusted return on investment d... [email protected] Ans ... Advanced Measurement approach te Ans .... w w w a... credit b. Pre-payment of loan amount or withdrawal of deposit amount will add . oc k a.onlyforbankers.. st ..www............jaiibcaiibmocktest...bankpromotionexams... admin@jaiibcaiibmocktest................ Standardized approach c. it is called ...... www.......onlyforbankers...c ..... When return on business is worked out by netting the risk in business........com............. a..com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail. 09994452442 243 . Return on investment b... risk.. 182 days and 364 days for pre-determined amounts.jaiibcaiibmocktest.......... 09994452442 ………………………………………………………………………………………………………………………………………………………………… st .. www. .. short b. (i) the beneficiary can avail pre-shipment finance up to the amount specified in LC. Only (i) b....c ........b .... medium c...jaiibcaiibmocktest.com... ca a..com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail.. iib Ans ...com... Exim bank d..........a .com........ Both (i) and (ii) Ans .......com....bankpromotionexams.com........ 120 c. none of these Ans ..ja VaR is most commonly used to measure risk over _____ periods...... equities ………………………………………………………………………………………………………………………………………………………………… www........ Only (ii) c. www....... w w w a... GOI..onlyforbankers.... (ii) there are certain restrictive clauses as to period of shipment negotiation of bills etc oc k te a......com [email protected].. Which of these is not a product of financial markets? a...... 360 Ans . Exim bank iib m Treasury bills are issued by _____ through _____ for maturities of 91 days.... A 'Red Clause' LC is one in which . RBI c.....a .... RBI... [email protected]..... foreign exchange b.......... Either (i) or (ii) d.... RBI...... GOI b.com..........com.bankpromotionexams. www... bonds c. 180 d.. admin@jaiibcaiibmocktest.......... 09994452442 244 ......... long d........ GOI..... www.c o m b.onlyforbankers.... . www........onlyforbankers... www......... a...........jaiibcaiibmocktest.. demand and time deposits d....com.bankpromotionexams.. iib m a. overseas borrowings w Ans . www. none of these st ...www............... swaps c. te a.. all of these oc k Ans ..bankpromotionexams.......... admin@jaiibcaiibmocktest..... foreign exchange holdings b.... ………………………………………………………………………………………………………………………………………………………………… www... capital b..................d ......com........com.........com.com.......jaiibcaiibmocktest.....com.ja iib a.com......... none of these Ans ................a . options Which of the following components is exempted from DTL calculation? .. futures d..b ........ deposits d.......c ... Which of the following is not an exposure to off-balance sheet? ca Ans ........ The trading book does not include .......... admin@jaiibcaiibmocktest.. 09994452442 245 ........com.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected] o Ans . monthly d..... day-to-day b... Net inter-bank borrowings / deposits with maturity not exceeding 14 days (call/notice money liability) c. w w LAF (Liquid Adjustment Facility) is used to monitor ____ liquidity in the market....a ....... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m d. Foreign outward remittances in transit b.... www...... weekly c... fixed income securities c.com murugan0501@gmail....... ..... st .. economies where interest rates are free d... swaps Ans .. controlled economies b. [email protected] ..... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Forward rates fully reflect interest rate differentials only in ...jaiibcaiibmocktest................. a. Quanto ………………………………………………………………………………………………………………………………………………………………… www.. oc k a....bankpromotionexams.d ..d ......com [email protected]...... ca a. www.... Swaps (IRS .. www........ in perfect markets where the currencies are fully convertible and the markets are highly liquid Ans ........ Simple sensitivity test b. the option is known to be ..... OTM d.com......... developing economies c........... admin@jaiibcaiibmocktest....com................com.www....bankpromotionexams... iib Ans ...... options d... Minimum loss d..com..... forward contracts b. futures c....... 09994452442 246 .... ATM b...com.....c .Interest Rate Swap) which collapse at a knock-out level of market rates and swap with builtin options are known as _____ swaps. www..onlyforbankers...com............... www..com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail. Scenario test c....ja An exchange of cash flow is ...... none of these iib If the strike price is more than the forward rate in case of a put option...... w w w a.jaiibcaiibmocktest..... ........c o a.... Maximum loss te Which test is not applied in Stress Testing ? m Ans .. ITM c...... ... admin@jaiibcaiibmocktest. [email protected] murugan0501@gmail. 2 lacs ………………………………………………………………………………………………………………………………………………………………… www.. none of these st . Coupon c.....com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail.. P + I Swap d... The a/c has been doubtful since 01.... 2 lacs. Swaptions d... www.aspx?id=7357#pron".03. 09994452442 ………………………………………………………………………………………………………………………………………………………………… Ans .. www. Explanation : Outstanding balance = Rs. no provision need be made towards the guaranteed portion.. If only currency is hedged.....a ....www.jaiibcaiibmocktest. iib m In a loan a/c........ www. So.2015? ca a. 275000 c..b .. 225000 d....jaiibcaiibmocktest. the balance outstanding is Rs...c ... oc k te a. PoS (Principal only Swap) b. Plain vanilla Ans .. 5 lacs and a cover of 75% is available from CGTMSE.bankpromotionexams. Visit ...in/scripts/BS_ViewMasCirculardetails... 5 lacs.. CoS (Coupon only Swap) c.5 Advance covered by Credit Guarantee Fund Trust For Micro And Small Enterprises (CGTMSE) guarantee.com...ja Friends.com.. Please refer "http://rbi..... www....com. actually in case the advance covered by CGTMSE guarantee becomes non-performing...bankpromotionexams..com..com...........2011 and the value of security held is Rs....com. 75000 iib Ans ...c o m b.10. Rs.5....onlyforbankers.. w w w The amount outstanding in excess of the guaranteed portion should be provided for as per the extant guidelines on provisioning for non-performing advances....com...9. Security available = Rs...org. 09994452442 247 .. 500000 b. Rs.com. Rs. the type of currency swap would be .onlyforbankers. Rs. What will be the total provision to be made for this account as on 31... Treasury bills yield b. www. we will take 100 % Provision for security value.....ja iib a..c . 09994452442 ………………………………………………………………………………………………………………………………………………………………… st ....d .com murugan0501@gmail...... which will be.... all deposit and loans b.....jaiibcaiibmocktest. [email protected]. all of these Ans . ………………………………………………………………………………………………………………………………………………………………… www....com...bankpromotionexams....d ..... Fixed deposit rates c..... capital d... m a........... pick up the odd one...........onlyforbankers..www.........com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail......... Call money rates d. www..com..jaiibcaiibmocktest.....bankpromotionexams..com.. www.... =200000 Risk is managed by the following except ... None of these oc k te So total provision will be......... Models of Analyses d.. bank may price their assets and liabilities based on different benchmarks.... Forward rates w Ans ..c o m CGTMSE cover of 75% available on the remaining amount = (500000 – 200000) x 75/100 = 300000 x 75/100 = 225000 We will take the uncovered amount for taking provision............... .....com........ Risk Monitoring c..com... Limits and Triggers b...... admin@jaiibcaiibmocktest.. www..... w w Which one is not included in Banking books? a..onlyforbankers. iib ca Ans .. 09994452442 248 ..225000 = 75000 Since loan is in doubtful category for more than 3 years...com........ all borrowings c. 75000+200000 = 275000 ... In a floating interest scenario........com.. 300000 ... onlyforbankers..bankpromotionexams.....d ..... st .. Pick up odd one a.......... Non performing assets Ans ....com [email protected] .com...........com. which one is the third stage... www...b ...... determining applicable risk weight c...... www. scenario analysis c..... www.jaiibcaiibmocktest. (iii) which can be easily transferred by the beneficiary to his suppliers iib Ans .. (ii) covering many shipments up to a particular period of time or a particular amount or both.... (i). find out which one specifies the shocks that might plausibly affect a number of market risk factor simultaneously if an extreme... Obligation acceleration c..... www... ………………………………………………………………………………………………………………………………………………………………… www.. simple sensitivity test b..........com................... oc k te A 'Revolving Credit' doesn't means a letter of credit . (ii) and (iii) ca Market value of a portfolio varies with stress testing techniques. extreme value theory w ans ..com...... determining RWA for the exposure d........ ....com......onlyforbankers...com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected].. 09994452442 249 . event occurs... Only (ii) and (iii) d.......ja iib a..bankpromotionexams. Obligation default d. but possible. determining allowable reduction Ans ..... Maximum loss d. w w Credit events are ISDA defined credit event and includes events.... Determining Adjusted Exposure b... Stress testing covers many different techniques... (i) which is available for use in any country.......jaiibcaiibmocktest..com.........c o a... [email protected]. Only (i) and (iii) c. Bankruptcy b.... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Risk weighted assets for credit of a bank is basically a five stage process.....com.. Only (i) and (ii) b.. m a.b ........ admin@jaiibcaiibmocktest.... ....1/1... www.com...com.. Evaluate Risk Assessment b. [email protected] = 1% .....c . 2007 to cover Operational Risk under Basic Indicator Approach shall be st ....com... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Based on the Gross Income given above....jaiibcaiibmocktest..bankpromotionexams..... 2% c....ja Pillar – II Supervisory Review consists of .c .com... admin@jaiibcaiibmocktest. 1% b...... oc k One year T-bill rate is 10% and the rate on one year zero coupon debenture issued by ABC Ltd is 11%...... Prescribe differential Capital. a....com.... Core disclosures and Supplementary disclosures ………………………………………………………………………………………………………………………………………………………………… www...com [email protected] o a... Ensure Soundness and Integrity of Bank’s internal process to assess the Capital Adequacy c. Ans .... 450 crores d..... 3% d......... 4% iib Ans .a iib ca Explanation : Formula for probability of default is : 1-P = 1 – [(1+i)/(1+k)] = 1 . Pillar – III Market Discipline – consists of except .. 540 crores c.. www. Enhance disclosures b. www.......990 =0.bankpromotionexams.com........onlyforbankers..... Ensure maintenance of maximum capital with PCA for shortfall d.... the likely Capital Charge for Modern Bank Ltd.www............ 09994452442 250 ...0..com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail.... as on March 31.....com.......(1....jaiibcaiibmocktest...... www. where the internal process are slack..onlyforbankers..com.. w w w a....11) = 1 ...... What is the probability of default? m a. .e... 360 crores te Ans ... where necessary i.. 375 crores b... ....c ........ Equities in Trading Book c. a...... All the above w w w Ans ... Tier-iii d.com [email protected] .. .... External Credit Assessment m Standardized Approach allows banks to measure Credit Risk in a Standardized manner based on .jaiibcaiibmocktest. Risk Weighted Assets d.com..........jaiibcaiibmocktest....... c. Under Standard Approach retail and SME exposures attract a uniform Risk weightage of 75% b.....onlyforbankers.......c o Ans .......... Which is called as supplementary capital ? te a.bankpromotionexams... Tier-i b.. Foreign Exchange open positions through out the Bank.... [email protected] a......com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected] . Lending fully secured by mortgage on residential property will have a Risk Weightage of 35%....bankpromotionexams.com.com.................. All the above Ans ... Internal Rating Based (IRb....com. Export Credit Agency (ECa. Timely at least semi annual disclosures st ....com.. www.....onlyforbankers... ca Ans .. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m c. c..... iib a....b ..........com...... [email protected] ………………………………………………………………………………………………………………………………………………………………… www.. Review Market ups and down d.. iib On the basis of risk weightage.. The Loans secured by commercial property will have 100% Risk Weightage d....... None of these oc k Ans . www........... The Market Risk positions that require Capital Charge are .. b.... www.... Tier-ii c...... 09994452442 251 . www..... pick up the odd one. d............com. Interest rate related Instruments in Trading Book b.com... ......... 14 d..onlyforbankers.... admin@jaiibcaiibmocktest.............. www.. There will be no variation in net cash flow b.... JPY b. . State Bank of India (SBI) b.. oc k Which is not one among the core promoters for CCIL ? te Ans . 09994452442 252 .... [email protected] In case of direct shipment of goods...... months from the date of shipment (not date of export).bankpromotionexams. days... low return on investment d.c ................jaiibcaiibmocktest......... ca iib Which one is not being quoted as per Units of foreign currency = INR? a.... the exporter is required to submit the export documents to the bankers within .....jaiibcaiibmocktest...... NABARD d...... All the above a.com murugan0501@gmail......... 1 ………………………………………………………………………………………………………………………………………………………………… www...... ICICI Ltd m Ans .... The maximum time for realization of export bills (proceeds) is .......com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail..... 21 c...com..... Return on investment would be higher c... 30 Ans . www.com.....com. Kenyan Schilling iib Ans ..c o a.. GBP d........c .......bankpromotionexams..com.... a. w w w a.b ..com.....onlyforbankers.b ... www...... Industrial Development Bank of India (IDBI) c. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Zero risk is not having which of the following features? st ... 07 b.....com..... Indonesian Rupiah c..... www.www...........com...com.. .. XOS c..... ........... 5 c......com murugan0501@gmail... www...... www...... w w w a. on half yearly basis (June and December).... SDF Ans ..jaiibcaiibmocktest.com..c o m b.. the time limit for realization in post shipment finance is . 3..... PP d.com..www............. 12 Ans ... www...... 6 b... account with an AD in India. 3.d . 2 d. statement. 3 c........ crores.......bankpromotionexams. 2. rupee d.. 3 b....com......onlyforbankers......ja A person resident in India and earner of foreign currency should open .... overdue bills) beyond 6 months from the date of export....... 5 iib Ans .com. overseas foreign currency b...... EEFC (Exchange Earner Foreign Currency) c.........jaiibcaiibmocktest.... www.. years and average turnover of Rs ..............bankpromotionexams....com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail........... In case of exports through approved Indian-owned warehouses abroad.....onlyforbankers.. vostro Ans .com. 12 ………………………………………………………………………………………………………………………………………………………………… www..b .com........... 6 d... ca a... admin@jaiibcaiibmocktest..... oc k te a....b ... 2....a ...com.... iib m The eligibility to open a DDA (Diamond Dollar Account) is a track record of .... it should be reported to the RBI in ... admin@jaiibcaiibmocktest.. a....e.. months...com....... 09994452442 ………………………………………………………………………………………………………………………………………………………………… st . If an export bill remains unrealized (i... 09994452442 253 .. ETX b. com...ja Which was the immediate cause which prompted G-10 countries to from the basel committee on the banking supervisions ? w w w a............c .... 30 b.. 90 Ans .. Competition c...bankpromotionexams...com....com [email protected] ... days...... 120 c....com.... Deregulation b...........com. 18 st ...com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail... admin@jaiibcaiibmocktest............ Assets liability management committee c... the concessional rate of interest cannot exceed __ days from the date of shipment. www. admin@jaiibcaiibmocktest.... oc k te a........jaiibcaiibmocktest..... 180 d. 09994452442 254 ........... www... Risk management committee b..d .. 15 d.c o Ans ...onlyforbankers......c .....jaiibcaiibmocktest......com.....www...... www. Globlization Ans ... Herstatt incident d...... 90 b... m In post-shipment advance.....bankpromotionexams.com...... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m c.. 360 iib Ans .................... Advance against undrawn balance can be made at a concessive rate of interest for a maximum period of .... www.... Who has the overall responsibilities for management of risks of a company? a. 60 d... Board of officers ………………………………………………………………………………………………………………………………………………………………… www........com.. . 45 c..... ca iib a..... ..bankpromotionexams......com... Interest earned on investments c.b ......c ………………………………………………………………………………………………………………………………………………………………… www. 09994452442 255 ... All the above w Ans .com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail.. Exporter b..c o Ans .......onlyforbankers... Operational risk d..d .........com... www...........com murugan0501@gmail.............. www. w w Normally. Importer c.. Opening Bank d.......com...... RBI st ......ja iib a....... Credit risk b..... None of the above oc k Ans .......onlyforbankers....com. admin@jaiibcaiibmocktest.. Board of directors c..com... iib m a.. Risk policy committee b.www...c .... Advising Bank Ans ...com....... who will request for the confirmation of LC from the confirming bank? a. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m d............ Interest earned on advances b.. Market risk c....bankpromotionexams.. www.. Total interest earned on advances and investment d. ALCO d.. Difference between interest earned and interest paid Interest rate risk is a type of ...............jaiibcaiibmocktest... te a.com.. Approved market risk limits for factor sensitivities and value at risk are duly set by ............ admin@jaiibcaiibmocktest.... www......... Net Interest income is ca Ans .jaiibcaiibmocktest.com......a ...... ..........www. Financial b...... (ii) Bills selling iib a...... up to US ... Index iib m Ans .. 1 year.jaiibcaiibmocktest... www.. Coupon c..... 1 years. (i) TT selling......ja Ans ..... for import of all items permissible under the Exim Policy.....bankpromotionexams.....com.... 1 year............. 20 c.....com [email protected].. te If Floating interest rates based on one bench mark is swapped with floating interest rates based on another bench mark. ca A customer wants to subscribe to a magazine published in Paris...onlyforbankers..com. 3 months... 3 years.. Swaps..... 6 months.. w w w Banks can approve proposals for availing supplier's credit for a period beyond ................. 20 Ans .c ......com... Country risk c.. ………………………………………………………………………………………………………………………………………………………………… www. Systematic Risk Ans ....com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected] can be controlled by putting in place state of art system........ 20 d.... oc k a... Either (i) or (ii) d...... st . Only (i) b..... 10 b..com.. million per import transaction....... 3 years.com.... a......bankpromotionexams.... Neither (i) nor (ii) ... Only (ii) c.... [email protected] o a...... it is called as . www........... The exchange rate for draft will be ... specified contingencies. 09994452442 256 ...d ..a ........ operational risk d.. admin@jaiibcaiibmocktest.. www.c . www...com..jaiibcaiibmocktest....com.. with maturity up to ...... Sovereign Risk b. Currency d.. 6 months... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m ....... .......ja Ans ... www..a . Export performance indemnity c....... etc... duty drawback..... Export production finance guarantee d........ Shangai stock exchange Ans . The Chicago Mercantile Exchange c... 09994452442 257 . admin@jaiibcaiibmocktest.......... www. iib m Ans .....com.. post shipment export credit insurance c.... oc k a...c o a...... Export production finance guarantee d.. www. post shipment export credit insurance c...com....c ....www. st ......................b ............bankpromotionexams.com.....jaiibcaiibmocktest....com.. Export production finance guarantee d.... Bretton Woods exchange b............. Transfer guarantee Ans . ca Advances against export bills by way of purchase..onlyforbankers.b .......com...com murugan0501@gmail..... a. www.com...... admin@jaiibcaiibmocktest. Export finance guarantee b.onlyforbankers.. Transfer guarantee te The advances given by banks against incentives / receivables at the pre-shipment stage is covered under ..... ………………………………………………………………………………………………………………………………………………………………… www. Transfer guarantee .....com....com.. negotiation or discount or rupee finance by banks are covered under ... Export finance guarantee b... it can be covered under ..com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail... Export finance guarantee b.... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Which is world’s first Exchange traded currency future contract..... w w w When banks grant post-shipment advances to their exporters against export incentives receivables in the form of cash assistance........... iib a........ Philadelphia stock exchange d......jaiibcaiibmocktest.bankpromotionexams...... ...com.............. Export performance indemnity oc k ........ ………………………………………………………………………………………………………………………………………………………………… www...com....www. Export finance (overseas lending) guarantee c...........bankpromotionexams. iib Ans .. week b. 09994452442 258 ..b ......b .. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m An AD has to obtain receipt of "bill of entry" in the cases where the value of foreign exchange remitted for import exceeds USD . 3 b. Export performance indemnity Ans ........ Export production finance guarantee d.. [email protected] .. a. within a period of __ months from the date of remittance. 100000.com murugan0501@gmail......... ca FEDAI requires banks to undertake profit / loss evaluation of forex positions at the end of each .. iib a............... www.. 50000.... www...... st . 100000. www... m a... Post shipment export credit insurance c.com..com.com.. 6 te Ans .... is issued by ECGC in the nature of a counter guarantee to the bank against possible losses that they may suffer on account of the guarantees issued by them on behalf of its exporter clients..... www.a .....onlyforbankers....com...... 50000..... Export production finance guarantee d....... 1 d............com. Export finance guarantee b....com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected] o a.... it can protect itself from the risk of non-payment by the contractor by obtaining ....... year ...... [email protected] Ans ... 3 c..bankpromotionexams. w w w If a bank financing an overseas project provides a foreign currency loan to the contractor... quarter c................. Export finance guarantee b..... month c.onlyforbankers..jaiibcaiibmocktest.jaiibcaiibmocktest........ c .. This limitation of VaR can be get over by ..... back testing 2...jaiibcaiibmocktest.... None of these Ans ..... 6% Ans ...Category II was earlier known as .............com murugan0501@gmail. 1. RBI pays interest on the cash balances in excess of which of the following to bank...d ...com. model calibration 3.jaiibcaiibmocktest....... scenario analysis 4.. spot d...a .... www..b ………………………………………………………………………………………………………………………………………………………………… www............ repo w w w Ans .onlyforbankers.. admin@jaiibcaiibmocktest. stress testing iib In which rate the currencies are mostly bought and sold? .... Restricted Money Changers c...com. 3..com. 5% d.. Authorised dealers d... www....... ca Ans .. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Authorised persons .ja a..... of their NDTL? a.. all of these oc k 1.....www.. st .... 09994452442 259 ............ te VaR does not measure risk under any particular market conditions.com....onlyforbankers... 3% c.. forward c.... 2 and 4 d.com..... admin@jaiibcaiibmocktest.... 2% b... www... Full Fledged Money Changers b... and 3 b.com... iib m a.. www... swap b...com...bankpromotionexams. 2.com..c o a.. 2.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected]............. and 4 c. 1. ... www........ te For foreign currency export bills.. the shipping documents along with relative GR form must be submitted to an AD within . 28 d.....com.. iib In case of post shipment finance....onlyforbankers..c ... days from the date of shipment.... 21 b..bankpromotionexams.com........ to provide export incentives under the Export Promotion Scheme d..com.com murugan0501@gmail...... www.... The supplier's invoice states that the 5000 is due by January 10 and ABC will pay the invoice on January 9... the NTP allowed is .... 09994452442 ………………………………………………………………………………………………………………………………………………………………… st .c o a........... What is the effect of the cleanup service on the December balance sheet of ABC? a... Assets Decreased b.. 30 m Ans .... www.......... to refund excise and customs duty b. [email protected]... 30 .com.... admin@jaiibcaiibmocktest...... ………………………………………………………………………………………………………………………………………………………………… www......d ...jaiibcaiibmocktest... to make certain domestic commodities competitive in the overseas market c....... iib ca a. ABC follows the accrual basis of accounting and its accounting year ends on December 31.... all of these m Which of the following is/are the purpose(s) of Duty Drawback? Ans .. No Effect On Owner's Equity d..onlyforbankers........................ www... 25 c... None of the above Ans – b ..... 14 c.....bankpromotionexams.b .. w w w ABC Co.jaiibcaiibmocktest... 09994452442 260 .. 21 d.... 7 b.. incurs cleanup expense of 5000 on December 30....... Liabilities Increased c......................com. days at present...com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail. oc k a.ja Ans .... com. Rs. total realised value = 4500000 + 2000000 = 6500000 (out of 80 lacs) So.. lacs lacs lacs lacs m a.. 09994452442 261 .com [email protected]. admin@jaiibcaiibmocktest. 20 lacs with the collaterals available to the loan. 3. 2...com. So.5 crores c.. 60 lacs = 6000000 x 75/100 = 45 lacs So. 15 lacs on this loan..... 25 b..... the bank had suffered loss Rs.... What is the loss suffered by the bank on this loan? iib Ans – c Explanation : .... 60 lacs has been settled by ECGC in favour of a bank against default of Rs.. So. ………………………………………………………………………………………………………………………………………………………………… www... Company’s net working capital is Rs. www...com.. None of these m Working Capital Gap means: Ans – b .... Rs....... . The current assets would amount to ..jaiibcaiibmocktest...5 crores Ans – c ... 60 lacs on default of 80 Lacs (That is 75% of the default amount) But Subsequent to that settlement..onlyforbankers...... 09994452442 ………………………………………………………………………………………………………………………………………………………………… st ...... www..... 20 c........jaiibcaiibmocktest... admin@jaiibcaiibmocktest. Excess of Current Assets over Current Liabilities including working Capital term loan d... Rs..... 10 oc k te A claim of Rs.. 15 d...... the claim amount from ECGC should be.com.. Excess of Current Assets over Current Liabilities other than bank borrowings c..... 75% of Rs.. w w w Balance sheet of a company indicated that its Current Ratio is 1....ja iib ca ECGC had settled Rs. www....com. 3 crores d..... a. 80 lacs. 20 lacs was realised through the security held..5:1.www.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected] o a. www.. Rs.... Rs....... And the ECGC had settled only 75 % of the claim amount... Rs... 2 crores b. Rs. Excess of Current Assets over Current Liabilities b.... the settlement amount will be.bankpromotionexams......... Rs.... Rs..com....onlyforbankers..com. Subsequently the bank realizes Rs. 60 Lacs only from ECGC..bankpromotionexams. 1 crore.. w w w a....... the period of crystalization is ...... Ensure maintenance of minimum capital .....com..com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail..... www..... [email protected]... NTP.....d . TT buying d.......www.... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Which of the following is not one of the 3 main pillars of Basel II ? st .... a. Supervisory review process c... 09994452442 262 ..... .com.... rate...... days from the date of handling.... Market discipline d.. The NDD of the demand bill (foreign currency export bill) is . 28 d..jaiibcaiibmocktest.. days at present.com.... www..... the NTP allowed is .ja Ans ..bankpromotionexams.. TT selling iib FEDAI rules provide that in case of unpaid usance bills... Supplementary disclosures m Ans – a . NTP.....com.........bankpromotionexams... For foreign currency export bills.com..... 30. 21.. 21 ………………………………………………………………………………………………………………………………………………………………… www... admin@jaiibcaiibmocktest... 30 Ans .....b ............... iib ca a....com..c o a....... 21 b. Capital for market risks b.....com.... www.with PCA for shortfall b.. www......... Core disclosures c..... Enhance Disclosure d..jaiibcaiibmocktest..... NTP.com murugan0501@gmail........... te Which of the following is not covered under 'Market Discipline' pillar of Basel II ? oc k a. 25 c... 30.........th day after the .. TT buying b.... 30... TT selling c. Minimum capital requirements Ans – a ... NDD..com. at the prevailing ...onlyforbankers................ .... www.com......onlyforbankers.. w w w ..... 09994452442 ………………………………………………………………………………………………………………………………………………………………… st .onlyforbankers.com.... FEDAI iib Ans ... GSecs and Foreign Exchange Six 'core promoters' for CCIL – find out odd one..com murugan0501@gmail. 30 Ans ...www....jaiibcaiibmocktest... Ans . DGFT c. Rs..B ..bankpromotionexams..com.......... 500000/Realization value of security – Rs... RBI b.. (CCIL) was set up in April....com.. for which it creates a large pool of resources.... takes over the Settlement Risk.com... b...... ICICI Ltd...... c. NABAD d.... 28 d. 180000/d........com....com... 400000/What will be the provision requirement? oc k a..... www.....bankpromotionexams.....d . 2001 for providing exclusive clearing and settlement for transactions in Money..com. iib Guidelines for export and import credit are governed by ... SEBI d.............b ...... te Asset in doubtful-I category – Rs. State Bank of India (SBI). 500000/b.......com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail..... www......... 25 c.. Rs..... The Clearing Corporation of India Ltd... which is used to cover outstanding of any participant.. 09994452442 263 . Rs.. a.... called settlement Guarantee Fund.....c ....... www.... Rs. 400000/c.c o m b... Industrial Development Bank of India (IDBI)... 200000/- m Ans . ca a.... admin@jaiibcaiibmocktest...... [email protected] CCIL (Clearing Corporation of India Lt...... ………………………………………………………………………………………………………………………………………………………………… www....... .... Collateralized Borrowing and Lending Obligation (CBLO)......com..e.. www.......jaiibcaiibmocktest....com [email protected]. 09994452442 264 .. Financial b..... Indian Citizens working abroad on assignment with Foreign government..com............... ....com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail.... Negotiated Dealing System (NDS) b.......bankpromotionexams.....com...www.......... ………………………………………………………………………………………………………………………………………………………………… www.c ....d ...bankpromotionexams..... All of these w Ans .. Coupon c.. a money market product based on Gilts as collaterals d..jaiibcaiibmocktest....onlyforbankers..com..... Officials of Central and State Governments and Public Sector Undertaking deputed abroad on assignments with Foreign Govt Agencies/ organization or posted to their own offices including Indian Diplomatic Missions abroad.. Invoice b................ Swaps.. Indian Citizen who proceed abroad for employment or for carrying on any business or vocation or for any other purpose in circumstances indicating indefinite period of stay outside India. d. admin@jaiibcaiibmocktest. Weight List and other Documents Ans ...... Bill of Lading c.com...... admin@jaiibcaiibmocktest...... is a person resident outside India who is a citizen of India i... www. oc k a........ st .... Currency d. w w What are the Important documents called for under the Letter of Credit : Pick up odd one a. it is called as ... government agencies or International MNC c..... NRI..com.....com... Packing List........d ..c o a.ja iib ca a..... b.. Interest Which of the following components not issued by CCIL? te Ans . 09994452442 ………………………………………………………………………………………………………………………………………………………………… m If Fixed interest rates are swapped with floating interest rates.. www.. Letter of confirmation d.. www......b .. All of these iib m Ans ..... settlement of Forex transactions c...com....... .................................www.. www.. 09994452442 265 . Under a Sight LC....bankpromotionexams.....com. ECGC d.... at a future date.......... oc k Registered Indian exporters endeavoring to export to..com...com. stands for society for worldwide Interbank Financial Telecommunications has built in security system with an automatic authentication of financial messages. Transit receipt ca Truck out sheet iib Ans .. te Ans .............countries are eligible for support under the PLI programme. www. Packing list d.........jaiibcaiibmocktest..c o a..bankpromotionexams........com...c ... st .........com.com.... iib a.. w w w ... OECD ......... AMA numbers Ans ..jaiibcaiibmocktest..ja Ans ...... subject to receipt of documents conforming to the terms and condition of the LC. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m The bill of exchange or drafts are drawn with certain Usance period and are payable upon acceptance. m a... ………………………………………………………………………………………………………………………………………………………………… www. Invoice b...onlyforbankers....com. through a.........b .. In a Negotiation LC... www..... BIC b.com murugan0501@gmail... A Deferred Payment Credit b... RBI-FED c....com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail.. www.. [email protected].... d. Under the Acceptance Credit c.....c . RMA c.. Bill of lading c... [email protected] ..... EXIM bank b.. BKE d.com................... www. any time after the expiry period c. 02-20 lakh m Ans .c ..com. 35 ………………………………………………………………………………………………………………………………………………………………… www........... oc k a.com.... this is an.com. none of these iib Ans ......com.... co operative society Ans .com....... the type of currency swap would be .onlyforbankers.. iib European type option can be exercised ..... w w w a.. non-profit making body d. 02-maximum no limit d.....jaiibcaiibmocktest....... Statutory b.. P + I Swap d.....com [email protected] ....com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail. Losses due to natural calamities bank will get protection under article…… a......c ..... www... on the expiry date d.. admin@jaiibcaiibmocktest..... 02-10 lakh c.... PoS (Principal only Swap) b..com.. any time before the expiry period b.. ca a...... 01-10 lakh b......ja If only interest rate is hedged. .c o m SWIFT stands for society for worldwide Interbank Financial Telecommunications... none of these Ans ... www.jaiibcaiibmocktest........ CoS (Coupon only Swap) c.. Non-statutory c......d . 09994452442 ………………………………………………………………………………………………………………………………………………………………… a.........onlyforbankers........www.....com............ te Through RTGS minimum and maximum money can be transferred st ........ www..com.. admin@jaiibcaiibmocktest.................bankpromotionexams.bankpromotionexams.. 34 b.......................... 09994452442 266 ...... .... 28 d.. days from the date of handling....... 25 c...........com.......c ... Only (ii) ………………………………………………………………………………………………………………………………………………………………… www....b ........... (ii) Bills selling a...... ca iib a.............onlyforbankers.... accounts meant for reconciliation b.com.com. exchange control regulations c....com murugan0501@gmail.. exim policy d. www... 09994452442 267 ........ current accounts dominated in foreign currency maintained by banks with their correspondent banks in the home country of the currency d.... www. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m c.... Which of the following regulations governs payments of imports of goods into India on the basis of FEMA 1999? oc k te a...bankpromotionexams..onlyforbankers... short term investments with AAA rated foreign banks Ans .com..jaiibcaiibmocktest.. trade regulations b...com...com.......... (i) TT selling.........b .. m The NDD of the demand bill (foreign currency export bill) is . 21 b.com...jaiibcaiibmocktest.. The rate of exchange to be applied to the transaction will be . None of these Ans .....c o Ans ... iib Nostro accounts are ....... Only (i) b... admin@jaiibcaiibmocktest. www..... www. w w w ..bankpromotionexams...... accounts of foreign banks with Indian banks c.......www...com.c ... 36 d... [email protected] a.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail......... Your non-resident customer presents a draft in foreign currency for which cover has already been provided in Nostro account...... 30 Ans ......................... 37 st . d .Rs 1000cr Doubtful loans (D-3...... www. Rs 7500cr c.. Balance sheet of a bank provides the following information: ca iib m sub-standard secured loans ...Rs 500cr Doubtful loans (D-1. unsecured) .. What is the amount of RWAs for sub-standard secured accounts? a.com.. 09994452442 268 .com murugan0501@gmail. below Rs 10 lac) the Retail loan .Rs 8000cr te Fixed Assets .bankpromotionexams. Rs 1000cr d...com.Rs 10000cr iib Answer the following questions.com. admin@jaiibcaiibmocktest... Rs 500cr b. secured) ..com..Rs 1000cr sub-standard unsecured loans .... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m c. unsecured) . secured) . .... Neither (i) nor (ii) st . based on this information.onlyforbankers.jaiibcaiibmocktest.. www.jaiibcaiibmocktest.com.. unsecured) ..Rs 500cr Doubtful loans (D-2.1000cr Investment in central Govt Securities . oc k In standard loan accounts Housing Loans . What is the amount of RWAs for investment in govt securities? w w w a.. www..Rs 600cr Loss Assets .com.com..onlyforbankers.. Rs 3500cr c.. www.bankpromotionexams.Rs 500cr. Nil 2.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected] and other assets .Rs 4000cr Other loans ... Rs 1500cr ………………………………………………………………………………………………………………………………………………………………… www. [email protected] 1000cr Doubtful loans (D-3. Rs 5000cr b.ja 1.. Either (i) or (ii) d.com.. by using standard Approach for credit risk.RS 6000cr (Secured.c o Ans ... Rs 2500cr d.....Rs 600cr Doubtful loans (D-2. secured) .Rs 800cr Doubtful loans (D-1.www.... bankpromotionexams. admin@jaiibcaiibmocktest. Rs 500cr c. www.onlyforbankers. What is the amount of RWAs for doubtful (D-1. Rs 1500cr 4. Secured) accounts? oc k te a. Rs 800cr d. Secured) accounts? ………………………………………………………………………………………………………………………………………………………………… www.com murugan0501@gmail. Rs 300cr b. What is the amount of RWAs for doubtful (D-1. Rs 300cr b. Rs 500cr c.com. Rs 900cr 5.com. www. Rs 800cr d.bankpromotionexams. Rs 900cr 7. What is the amount of RWAs for doubtful (D-3. Rs 300cr b. What is the amount of RWAs for doubtful (D-2.com.com. Rs 500cr c. Rs 500cr c. Rs 500cr b. Rs 800cr d.com. admin@jaiibcaiibmocktest. What is the amount of RWAs for doubtful (D-2. Rs 7500cr c. Rs 900cr w w 8. unSecured) accounts? w .com. Rs 800cr d. What is the amount of RWAs for doubtful (D-3.ja a.www. Rs 300cr b.jaiibcaiibmocktest. Rs 900cr 6. Rs 500cr c. Rs 900cr 9.onlyforbankers. Rs 1000cr d. What is the amount of RWAs for sub-standard unsecured accounts? st . Secured) accounts? a. Rs 800cr d. www. Rs 300cr b. Secured) accounts? iib ca a.com. 09994452442 269 . www.jaiibcaiibmocktest. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m 3.c o a. unSecured) accounts? iib m a.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected]. admin@jaiibcaiibmocktest. then RW is 50% ………………………………………………………………………………………………………………………………………………………………… www.onlyforbankers. then RW is 150% If the provision is 20-50 %. 6000cr oc k 11. RWA = 1000 x 150 % = 1500 Cr 3.com. then RW is 150% If the provision is 20-49 %.com. d RW against Govt Securities = 0 % iib So.www. 5000cr d. then RW is 100% If the provision is 50% or more.com. Rs 900cr a. www. admin@jaiibcaiibmocktest. a If the provision is less than 20 %.bankpromotionexams. www.onlyforbankers. 3000cr b. RW = 150 % So. Rs 500cr c. 6000cr iib Solution : ca 1. 5000cr d. then RW is 50% w w w Provision in Sub-Standard Secured . Rs 300cr b.com. 4000cr c. then RW is 100% If the provision is more than 50 %.com [email protected]. 09994452442 270 .jaiibcaiibmocktest.jaiibcaiibmocktest.c o m a. RWA = 10000 x 0% = 0 Cr .15 %. and so. www. Rs 800cr d.ja 2. www.com. What is the amount of RWAs for retail loans? m a. 4000cr c. 09994452442 ………………………………………………………………………………………………………………………………………………………………… st .bankpromotionexams. 3000cr b.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail. d If the provision is less than 20 %. What is the amount of RWAs for housing loans? te 10.com.com. then RW is 150% If the provision is 20-49 %. then RW is 50% Provision in doubtful (D-1.25 %. then RW is 50% ………………………………………………………………………………………………………………………………………………………………… www. RWA = 600 x 50 % = 300 Cr . admin@jaiibcaiibmocktest. then RW is 100% If the provision is 50% or more.com. then RW is 100% If the provision is 50% or more. RWA = 800 x 100 % = 800 Cr iib m 5. then RW is 150% If the provision is 20-49 %.onlyforbankers. www.jaiibcaiibmocktest. then RW is 50% w w w Provision in doubtful (D-2.www. RWA = 500 x 100 % = 500 Cr te 4. and so.com. 09994452442 271 .com murugan0501@gmail. www. Secured) . RWA = 500 x 100 % = 500 Cr 7. a If the provision is less than 20 %. b If the provision is less than 20 %. then RW is 50% ca Provision in doubtful (D-1. c If the provision is less than 20 %. [email protected] %. and so.c o So. then RW is 100% If the provision is 50% or more. www. then RW is 150% If the provision is 20-49 %. www.com.ja 6. unsecured) .com.100 %.25 %. RW = 100 % So.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail. RW = 100 % st .com. then RW is 150% If the provision is 20-49 %.com. RW = 100 % oc k So.jaiibcaiibmocktest. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Provision in Sub-Standard Un-Secured . then RW is 100% If the provision is 50% or more. Secured) .com. and so. and so. RW = 50 % iib So.bankpromotionexams.bankpromotionexams.com.onlyforbankers. b If the provision is less than 20 %. RW = 50 % st ..c o So. then RW is 100% If the provision is 50% or more.ja 10...com murugan0501@gmail. then RW is 50% ca Provision in doubtful (D-3..com. and so....bankpromotionexams.com.100 %.. unsecured) ..... and so... www.jaiibcaiibmocktest. www.. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Provision in doubtful (D-2. www. then RW is 150% If the provision is 20-49 %..... RWA = 1000 x 50 % = 500 Cr iib m 9. a If the provision is less than 20 %.. unsecured) .100 %.. RWA = 6000 x 50% = 3000 Cr .. [email protected] Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail. then RW is 150% If the provision is 20-49 %.bankpromotionexams.... Secured) .com.. RWA = 4000 x 75% = 3000 Cr 11. www.. RW = 50 % iib So... RWA = 600 x 50 % = 300 Cr ... a RW on retail loans = 75 % w w w So..onlyforbankers. and so.... [email protected]. RW = 50 % oc k So.. a RW on housing loans = 50 % So..com.100 %. 09994452442 272 .com.. b If the provision is less than 20 %.www.. ………………………………………………………………………………………………………………………………………………………………… www. RWA = 1000 x 50 % = 500 Cr te 8...onlyforbankers..com.jaiibcaiibmocktest. then RW is 100% If the provision is 50% or more. then RW is 50% Provision in doubtful (D-3... ...... iib Ans .. 0.........c ...... 0.. of the outstanding amount...com.. 0.10% b. b...com.. admin@jaiibcaiibmocktest... lend b. ca a. d. do nothing d.... Interest rate risk b. te For standard assets..com murugan0501@gmail.. No interest arbitrage exists between free currencies as the forward premium / discount equals interest rate differentials...www..onlyforbankers.........com... borrow c.. www..ja Select the correct statement: w w w a.....c o a.com....jaiibcaiibmocktest.com. a... 09994452442 273 ...jaiibcaiibmocktest.. Operational risk d.........b .. .. www..........c .. Merchant banking business ………………………………………………………………………………………………………………………………………………………………… www.... www............ the provision required is ... 0..... both b and c Ans .com... Credit risk Ans ........25% m Ans . oc k a. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Basic Indicator Approach (BIA) is one of the methods for computation of capital charge for: st ... www......... A treasury transaction with a customer is known as ......... banks ____ from / to RBI................ none of these iib In repo transaction.....com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected] ........ Market risk c.... c....... Interest arbitrage exists only when one of the currencies exchanged is fully convertible.com...com... The swap is used to widen the mismatch between currency and interest rate...20% c.....40% d..bankpromotionexams.bankpromotionexams.onlyforbankers..... admin@jaiibcaiibmocktest.... ...jaiibcaiibmocktest.. a. 09994452442 274 ..com. securities c.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail. maturiy mismatch. total cash held.......bankpromotionexams... oc k a......... a stamped agreement devised by respective banks Ans .onlyforbankers..... the risk of erosion of NII is on account of . Investment business d... m In a rising interest rate scenario.b ………………………………………………………………………………………………………………………………………………………………… www.. IFEMA b.com....com..c o m b.. advances with floating rate of interests and deposits with fixed ROI b..........com.... ca iib a.com.........com. advances with fixed ROI and deposits with floating ROI c. total assets and performing loans te Liquidity risk is reflected as _____ which is the gap in ....... all of these Ans ...com.a . rupee account d............... advances with floating ROI and deposits with floating ROI d................. ICON c... www.... Volatility of interest rates arises in case of ....... cash inflow and outflow b.................. lines utilized and unutilized d......... www. receipts and payments c.. www.b ...... www.. currency b... iib The participants in the derivatives market generally exchange the following agreement: w w w ... Trading business c.. admin@jaiibcaiibmocktest. ISDA d. admin@jaiibcaiibmocktest.onlyforbankers...jaiibcaiibmocktest.....www......ja a.. NPAs......c .. Commercial banking Ans .....com murugan0501@gmail..... 09994452442 ………………………………………………………………………………………………………………………………………………………………… st .bankpromotionexams............ Ans ......... advances with fixed ROI and deposits with fixed ROI Ans ....a . committed lines....com.. . iib a........ subtracted from... iib Ans .... oc k The difference between spot rate and forward rate (interest rate differential) is _____ the _____ rate for low-interest yielding currency and this is known as forward ..ja Ans . m a... spot d....com.com.... added to.... subtracted from.c o a.........com.... st ... ………………………………………………………………………………………………………………………………………………………………… www... premium b. discount d.jaiibcaiibmocktest...... spot......... forward .. added to..a ........ forward c.c . forward.. marked to market c. admin@jaiibcaiibmocktest. www....... the interest rate differential is ____ from the ____ rate for high-interest yielding currency.bankpromotionexams....jaiibcaiibmocktest........ subtracted from........ d.... These valuation rates are provided by FEDAI / FIMMDA........com......com. www. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m The valuation of trading positions applying current market value (exchange rates or security prices) as at the end of the day is known as ..com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail.......... www.......... added to.. speculation b....... subtracted from.www..com.....b .. added to....com.... The combination of spot and forward transactions is called a swap......... discount ca For forward discount. spot. None of these Ans .. b.. DvP d.com murugan0501@gmail. www... The combination of spot and swap transactions is called a forward.onlyforbankers... forward.. 09994452442 275 .... The combination of forward and swap transactions is called a spot... w w w Select the correct statement: a... admin@jaiibcaiibmocktest......... yield curve te Ans . c...onlyforbankers........com....c .bankpromotionexams.... premium c. spot b... . months. liquidity c.. Companies Act 1956 d.... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Working capital is the finance required for meeting current needs of any business concern or industry and represents the funds invested in . [email protected]..... www...........com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected] Ans . RBI Act 1934 b....... w w w In case of exports through approved Indian-owned warehouses abroad.... NI Act 1885 ..d .. Debtors & receivables d....jaiibcaiibmocktest................ price te Ans ..com.com..........c o a.com.....www. iib m Ans ....com.onlyforbankers...b . interest rate d... the time limit for realization in post shipment finance is . 09994452442 276 .. The level of SLR to be maintained is mentioned in ..... 12 c.. 6 b..................... www........ admin@jaiibcaiibmocktest.... st ....... 15 d. BR Act 1949 c.. www..............d .......bankpromotionexams...com.... 18 Ans ..........com. Raw material..com.. currency b.. ………………………………………………………………………………………………………………………………………………………………… www. Stores & spares c...jaiibcaiibmocktest..... All of these Which of the following is not a component of market risk? oc k a.... www........onlyforbankers.. a. work in progress & finished goods b..........com [email protected] .... iib ca a. trade body d... ....c o m IEC (Importer Exporter Code) is issued by . EXIM Bank b...jaiibcaiibmocktest.onlyforbankers... Ans .com.... Sharjah Ans . Mumbai d..........com murugan0501@gmail... te Which of the following is/are the purpose(s) of Duty Drawback? st ... SEBI d.. Mangalore b....c .....onlyforbankers. [email protected] . Self oriented body iib ICC is .......jaiibcaiibmocktest....... Governing the UCPDC rules...com.... www...... RBI b...... www......bankpromotionexams...... Dubai c........d ......... 09994452442 ………………………………………………………………………………………………………………………………………………………………… a... FEDAI ………………………………………………………………………………………………………………………………………………………………… www....... DGFT c.com...com. w w w a. ca a.com. a....... www.www........ m oc k a.com. admin@jaiibcaiibmocktest.... to provide export incentives under the Export Promotion Scheme d.............. statutory b.... to make certain domestic commodities competitive in the overseas market c....com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected].. Central government Ans ..........b . to refund excise and customs duty b....... all of these iib Ans ......com. 09994452442 277 ... Non-statutory c. In India export trade is regulated by the .............com..... www........ja The inco terms which confirms the Delivered Ex Quay named port of destination where it arrives... ..bankpromotionexams.. 5 Lakhs d..com....... 2 c.com.....com..... 5 crore and this limit has been revised in Oct 2014 to last 02 year turn over is reduced to Rs....com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail.. BCBS d.......... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m c. m Gift of goods up to what value can be freely exported...........onlyforbankers...........com.... www.... Ram wants to start Export-import trade.. a.... 5 ………………………………………………………………………………………………………………………………………………………………… www. iib Which of the following countries does not comes under Asian Clearing UNION. Pakistan d............. Mr...c .. so he has to obtain importer-exporter code Number (IFC number).bankpromotionexams.c o Ans ....d ..com.d ...jaiibcaiibmocktest.jaiibcaiibmocktest... EXIM Bank b. [email protected]... ca iib a.com...ja a............ 1 b. can have a maximum how many DDA a/c at a time... Myanmar c. 3 Crores... he has to approach to whom for such number. BCBS d..onlyforbankers.. DDA..........d . DGFT Ans ... www...com [email protected]...... admin@jaiibcaiibmocktest............ 09994452442 278 . 1 Lakh b... Diamond Dollar Account can be opened if average export turn over of last 03 year of Rs... 10 Lakhs Ans ..... DGFT st ............ china w w Ans .. oc k te a... www........ Maldives b. FEDAI c... w ...... www..com. 2 Lakhs c....... ..... . 50 million d.. 10 million b........... te a.com.jaiibcaiibmocktest...... FEDAI c. Overseas borrowings c...... admin@jaiibcaiibmocktest.... a..onlyforbankers....com........ 3 b....... ECGC w w w Ans . takes care of such risk.www........... ECB d. www... BCBS d..... Trade credit b. EXIM Bank b...... ca Ans .....com..b ...com........ www..............bankpromotionexams.. [email protected] ………………………………………………………………………………………………………………………………………………………………… www. 5 d. 100 million iib International trade largely dependent of financing by banks to take care of credit risks of the export financing institutions.....ja a.. Under AMA approach (Estimated Probability of Occurrence)... www........d .........com. 09994452442 279 .com.. 4 c..... Bank at their level can give supplier credit under exim policy for the period of 6 to 03 years up to USD.. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m d..... iib m a.....com.jaiibcaiibmocktest..com murugan0501@gmail. Long term credit oc k Ans .c .. 20 million c.... Credit extended by the overseas supplier for a period of 05 years is termed as......bankpromotionexams..................... .. countries.....onlyforbankers.... 10 st ... www...........c . Probability is mapped on scale of ..com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected] o Ans ..com...... 6 Ans ..... .c .... public b..com murugan0501@gmail......... iib ca a...... currency futures b....com...bankpromotionexams...... none of these te Ans .......... exchange rates futures ………………………………………………………………………………………………………………………………………………………………… www..ja Ans .. Futures related to equity prices are known as . 09994452442 280 ..jaiibcaiibmocktest........com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail.. conventionally......... none of these Ans ..... bonds are issued by institutions in _____ sector while debentures by corporate in _____ sector.com..jaiibcaiibmocktest... Company Law d........ www. private. www.... private c.b .....onlyforbankers.. admin@jaiibcaiibmocktest.. Futures related to interest rates are known as .... stock/index futures d.... www... Which of the following is the most popular instrument to hedge interest rate risk? a..... public..c o a.com. BR Act c... stock/index futures d.... st ...... either of a or b d..b .. none of these iib m Ans .......... Law of Contract b.com....... bond futures c. www. oc k a.. w w w a. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m In India. bond futures c.........com..onlyforbankers........... Debentures are governed by ......c ....com...... admin@jaiibcaiibmocktest........www............bankpromotionexams. currency futures b....com...com.......... none of these ........ .. It is suitable for foreign currency borrowings swapped into Rupees...... a....bankpromotionexams.com. EXIM Bank b.d . www........... In order to support exports provide cheap financing option and provide comfort to exporters and financing bank by . Ans – d ......b . admin@jaiibcaiibmocktest.... oc k te a........ It is a combination of LIBOR and forward premium of USD / INR.... iib Government.. interest rates futures c.... ECIC Ans .....bankpromotionexams.jaiibcaiibmocktest..onlyforbankers..... admin@jaiibcaiibmocktest... www. 05 lakh b............... which was lately transformed in to ECGC... Select the incorrect statement regarding MIFOR..com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected] ....ja a. BCBS d........... www.c o m b.... w w w ..... Ans .. www....com.. c.......... Moderate risk m ECGC of India classifies the country into seven categories.com..... 10 lakh c... none of these Ans . iib ca a. AS per Export turnover policy a large exporter is one who contributes not less than Rs.. d.jaiibcaiibmocktest........... in that B2 indicate.... per annum towards premium... b........ Corporates are also permitted to use MIFOR as benchmark rate... insignificant risk b..onlyforbankers. moderately low risk d.com. equity prices futures d..........com...... 09994452442 ………………………………………………………………………………………………………………………………………………………………… st ...com.......... FEDAI c.com.... It is used as a benchmark rate only for inter-bank dealings...www. 20 lakh ………………………………………………………………………………………………………………………………………………………………… www..... 09994452442 281 .......com [email protected]........ low risk c.. .. ………………………………………………………………………………………………………………………………………………………………… www... [email protected]......... equities d.............. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m d.c o Ans ..... None of the above Ans – b .. www......b .....onlyforbankers.........www....bankpromotionexams....bankpromotionexams......... 182 days T-bill c.c ........... www..ja iib a..... Statement Of Operations b.. Which of the following T-bills are issued fornightly on Wednesday preceding reporting Friday.....onlyforbankers.... borrowings c.......... 91 days T-bill b..com murugan0501@gmail...... Point In Time c.........com....c ..... None of the above w Ans – b ...... ca Ans .. [email protected] Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail............... w w The balance sheet heading will specify a a...... Statement Of Financial Position c. www. www........... The banking book does not include .. Ans ......com... both a & b d.jaiibcaiibmocktest.com..jaiibcaiibmocktest. advances b...com..com................ 50 lakh st .... 364 days T-bill d.. 09994452442 282 .................... iib m a. both b and c Another name for the balance sheet is ........ Period Of Time b........... all of these oc k te a. both a & b d. . (i)............onlyforbankers...... iib a........ % discount to include in Tier 2 capital ... Only (ii) and (iii) d.... 11 c......a .bankpromotionexams....com..com murugan0501@gmail.. www........www.. 45% ca As per Basel III.......com. w w w As per Basel III........jaiibcaiibmocktest.... ………………………………………………………………………………………………………………………………………………………………… www.... adjustments / deductions are required to be made from Tier I and Tier 2 capital....... 12 d.....com. stock/index futures d.. bond futures c.... admin@jaiibcaiibmocktest....... [email protected] .. 09994452442 283 .....com....... Only (i) and (iii) c...................com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected] Ans . 55% c...d ........onlyforbankers. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Futures related to exchange rates are known as ......... 10 b..... Only (i) and (ii) b. (ii) and (iii) Ans ... www.....bankpromotionexams....com......... currency futures b.jaiibcaiibmocktest.com.... Total number of members is: oc k a. te Central Bank Governors of G-10 countries participate in the Basel Committee on Banking Supervision. 50% d.....com... www.... st . 13 iib m Ans .......c o a... www..d .... 60% b.. none of these Ans . the value of revaluation reserve is to be taken at .com.. relating to which of the following (i) goodwill and other intangible assets (ii) deferred tax assets (iii) Investment in own shares (treasury stock) a.. .......... 0....onlyforbankers....... www................ w w For Substandard Secured Assets.... 1..25% of total risk weighted assets under IRB approach d.........onlyforbankers..com....www... 1.bankpromotionexams.bankpromotionexams..... the provision required is ... general provisions and loss reserves are included in Tier-2 capital maximum to the extent of: ca Ans ........ www.... 09994452442 284 ..6% of total risk weighted assets under IRB approach b...com...... ………………………………………………………………………………………………………………………………………………………………… www..... st ....c . www..com..6% of total risk weighted assets under IRB approach c...jaiibcaiibmocktest......com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail. admin@jaiibcaiibmocktest.. a) 15% b) 20% c) 10% of the realizable value of security (RVS) d) None of these Ans ...... admin@jaiibcaiibmocktest........ 0............ja a) 150% b) 100% c) 50% d) 20% iib Under Simplified Standardised Approach (SSA).jaiibcaiibmocktest........b .......com........25% of total risk weighted assets under standardized approach and 1... risk weight for corporates is prescribed as ...........com. iib m oc k a.a ...25% of total risk weighted assets under standardized approach and 0.c o a) 100% b) 75% c) 35% d) 150% Ans ...a .6% of total risk weighted assets under standardized approach and 0............ www. w Ans .com.. te As per Basel III..6% of total risk weighted assets under standardized approach and 1.........com [email protected] accord prescribes that housing loan portfolio be given risk weight of .....com. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Basel ....com... of the outstanding amount.......25% of total risk weighted assets under IRB approach .. . www... oc k te Under Basel III the risk weight for capital charge for credit risk on the basis of standardized approach.b .onlyforbankers.com..com murugan0501@gmail. (ii) BBB rating— 20% (iii) Below B rating—150% iib w w w . www.. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m As per Basel II.....jaiibcaiibmocktest....ja iib ca Ans ....com..com.... www.com. m a.... Only (ii) and (iii) d... Moody's Rating).onlyforbankers.........www.com. admin@jaiibcaiibmocktest.......... [email protected].. 09994452442 285 ...com.33 d) Capital for operational risk x 8 Ans ....bankpromotionexams..5 c) Capital for operation risk x 8.. Fitch. in respect of which of the following: (i) AAA to AA rating—0%..............com...jaiibcaiibmocktest.c o a) Capital for operational risk x 9 b) Capital for operational risk x 12...com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail. match for claims on foreign governments (based on rating of international rating agencies such as S & P...com.... (ii) and (iii) ………………………………………………………………………………………………………………………………………………………………… www..... Risk weighted assets for Operational risk are worked out as : st . www.......b .. Only (i) and (iii) c. (i). Only (i) and (ii) b....... Dividend Coverage Ratio = N. Cost of Goods Sold Ratio = Cost of Goods Sold / Net Sales * 100. iib 8. 12. days or months or Weeks in a year/Creditors Turnover Ratio. 1. Debt Equity Ratio = Long Term Debt / Equity. Projected daily cash requirement = Projected operating cash expenses / 365. Expenses Ratio or Operating Ratio = Expenses / Net Sales * 100 ………………………………………………………………………………………………………………………………………………………………… www. 18. Interest Coverage Ratio = EBIT / Interest. www.onlyforbankers. Debtors Turnover Ratio = Net Credit Sales / Average Debtors.bankpromotionexams.c o Some of these Formulas may not be applicable for BFM.jaiibcaiibmocktest.com murugan0501@gmail. Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory.onlyforbankers. www. www.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail. Debt Collection period = No.bankpromotionexams.jaiibcaiibmocktest. days or months or Weeks in a year/Debt Turnover Ratio. 09994452442 286 . 6.com.www. Debt to Total Capital Ratio = Total Debts or Total Assets/(Permanent Capital + Current Liabilities) .com. after Interest & Tax / Preferential dividend w w 15.com. Net Profit Margin = Net Profit / Net Sales * 100 17. 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Important Formulas -------------------------- st . www. 10. Creditors Turnover Ratio = Net Credit Purchases / Average Credits. 5.ja 13. SIP Turnover = Cost of Goods manufactured / Average stock of SIP te 3. Debt Equity Ratio = Total outside Liability / Tangible Net Worth. Average Payment Period = No. admin@jaiibcaiibmocktest. Operating Profit Ratio = Earnings Before Interest Tax / Net Sales * 100 19.com. Defensive Interval Ratio = Liquid Assets / Projected Daily Cash Requirement ca 9.com. m 7. [email protected]. but I request all of you to go through all of them to understand the concepts clear for both ABM and BFM. w 14. Gross Profit Margin = Gross Profit / Net Sales * 100 16. iib 11. P. oc k 4.com.com. Raw material Turnover Ratio = Cost of RM used / Average stock of R M 2. 09994452442 287 . Return on Capital Employed = Net Profit Before Interest and Tax / Average Capital Employed.com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail. www.com. Average Capital employed = Equity Capital + Long Term Funds provided by Owners & Creditors at the beginning & at the end of the accounting period divided by two. 28. 09994452442 ………………………………………………………………………………………………………………………………………………………………… st . www. www. 39. Current Asset Turnover = Cost of Goods Sold / Average Current Assets. 37. Financial Expenses Ratio = ( Financial Expenses / Net Sales ) * 100 27. Net Fixed Assets = Total Fixed Assets – Accumulated Depreciation.onlyforbankers. Price Earning Ratio = Market Price per equity Share / Earning per Share. Fixed Asset Turnover = Cost of Goods Sold / Average Fixed Assets. Dividend Pay Out Ratio = Dividend per Equity Share / Earnings per Equity Share. oc k 26. Return on Assets = Net Profit After Tax / Total Assets. Capital Turnover = Cost of Goods Sold / Average Capital employed.com.ja 34. Administrative Expenses Ratio =(Administrative Expenses / Net Sales ) * 100 23. ca 31. 38. Total Asset Turnover = Cost of Goods Sold / Average Total Assets. Selling Expenses Ratio =(Selling Expenses / Net Sales ) * 100 25.com.www. Operating Expenses Ratio = (Administrative + Selling expenses) / Net Sales * 100 m 20.c o 21. 40. Dividend per Share = Net Profit After Taxes and distributable dividend / Number of Equity Shares.bankpromotionexams. . www. iib 30. Return on Ordinary Share Holders Equity = (NPAT – Preferential Dividends) / Average Ordinary Share Holders Equity or Net Worth. Net Working Capital = ( CA –CL ) – ( Intangible Assets + Fictitious Assets + Idle Stock + Bad Debts ) m 29.com.com. iib 32.jaiibcaiibmocktest. Total Assets = Net Fixed Assets + Net Working Capital.jaiibcaiibmocktest. w 35. [email protected]. ………………………………………………………………………………………………………………………………………………………………… www. Dividend Pay Out Ratio = Dividend paid to Equity Share holders / Net Profit available for Equity Share Holders. Earnings Per Share = Net Profit After Taxes and Preferential dividends / Number of Equity Share.onlyforbankers. w w 36. 33.com. te 24. [email protected] [email protected]. Net Profit Ratio = Net Profit After interest and Tax / Net Sales * 100 22.bankpromotionexams. com - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail. BEP in Sales = ( Fixed Costs / Contribution per unit ) * Price per unit.jaiibcaiibmocktest. VC = Total variable operating costs & S = Total sales revenue iib 49.onlyforbankers.com. 47. 50.com.onlyforbankers. Level of sales to result in target profit after Tax = (Target Profit) / (1 – Tax rate / Contribution per unit) w w 56. DSCR = Profit after Tax & Depreciation + Int.www.bankpromotionexams. Sales volume requires = Fixed cost + Required profit / Contribution per unit. www. Future expected value of a present cash flow = Cash Flow ( 1 + r ) ^ t 59. Factory Cost = Prime cost + Production Overheads. 09994452442 288 . te 45. Break Even Analysis = F / ( 1 – VC / S ) F = Fixed costs. 09994452442 ………………………………………………………………………………………………………………………………………………………………… 41. 44. www. 52.com.com. www. Contribution Sales Ratio = ( Contribution per unit / Sale price per unit ) * 100 w 55. 57. . Return on Net Worth = ( Net Profit / Net Worth ) * 100 m Facebook Groups 43. Working Capital Turnover = Cost of Goods Sold / Net Working Capital. Present value of a simple future cash flow = Cash Flow / (1 + r) ^ t 60.Co + C1 / (1 + r) 58. on T L & Differed Credit + Lease Rentals if any divided by Repayment of Interest & Installments on T L & Differed Credits + Lease Rentals if any.bankpromotionexams.c o 42. distribution & administrative overheads oc k 46. Cost of Goods Sold = Factory Cost + Selling. Cash Break Even = F – N / P – R or F – N / 1 – ( VC / S ) ca 51.ja 54.com murugan0501@gmail. st .com. Percentage of contribution to sales = ( Contribution / Sales ) * 100 m 48. Level of sales to result in target profit = (Fixed Cost + Target profit) * sales price per unit Contribution per unit. www. [email protected]. Net Present Value = . admin@jaiibcaiibmocktest. Contribution = Sales – Marginal Costs. The Discount Factor = 1 / (1 + r) ^ t ………………………………………………………………………………………………………………………………………………………………… www.com. Break Even Margin or Margin of Safety = Sales – Break Even Point / Sales. BEP = Fixed Costs / Contribution per unit.jaiibcaiibmocktest.com. iib 53. ... www. Notation used internationally for PV of an annuity is PV ( A... FV of annuity = A/r ×{(1+r)^n-1} w 77. 09994452442 289 . ………………………………………………………………………………………………………………………………………………………………… www. PV of end of period Annuity = A { (1. [email protected].... www. FV = P / R * [(1+R)^T .com.jaiibcaiibmocktest. FV = P * (1 + R)^T ca 72..www.... r.jaiibcaiibmocktest..com..com. r.. FV = P / R * [(1+R)^T .1]/(1+R)^T 71...com murugan0501@gmail.. The effective annual rate = ( 1 + r ) ^ t – 1 or (1 + (r / N) ) – 1 ) N = Number of times compounding in a year 64...com Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS murugan0501@gmail. [email protected]. FV = P*(1-R)^T iib 70. www....com.com.com.. n ) 68. www. n ) 63.. CR = CA : CL oc k 66.. PV = P / R * [(1+R)^T . PV = P / (1+R)^T 73.c o 62..bankpromotionexams.....bankpromotionexams. Bond Price = (1/(1+R)^t)((coupon*((1+R)^t-1)/R)+Face Value) w w ..1] iib 74.CL 67.. Price Elasticity of Supply = (% change in quantity supplied/(% change in price) m 69.. DER = TL/TNW or debt/equity or TL/equity st . Net Worth = CA . EMI = P * R * [(1+R)^T/(1+R)^T-1)] 76.... 09994452442 ………………………………………………………………………………………………………………………………………………………………… m 61.onlyforbankers..ja 75..(1 / (1+r) ^ n) / r te 65..onlyforbankers. Notation used internationally for FV of an annuity is FV ( A..1] * (1+R) .. com. ………………………………………………………………………………………………………………………………………………………………… www.com. admin@jaiibcaiibmocktest. First of all we thank all of them for their valuable contribution. www.com.c o ALL THE VERY BEST FOR YOUR EXAMS w w w . 09994452442 ………………………………………………………………………………………………………………………………………………………………… m Facebook Groups oc k te st .www. In case you find any incorrect/doubtful information.com.com.com murugan0501@gmail. www. www. 09994452442 290 . Though we had taken enough care to go through the questions. we request everyone to update yourself with the latest information through RBI website and other authenticated sources.ja iib ca iib m SAMPLE QUESTIONS FOR CAIIB BANK FINANCIAL MANAGEMENT This collection of questions is contributed by so many persons.com.com.jaiibcaiibmocktest.onlyforbankers. kindly update us also (along with the source link/reference for the correct information).onlyforbankers.bankpromotionexams.com - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected]. www.bankpromotionexams.com. admin@jaiibcaiibmocktest.
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