CTSCCPL0BFSDumps

1. If an investment pays interest at an annual rate of 5% per year, compounded twice a

year than the effective yield larger than 5.5%
a. True
b. False
2. In a 2 way quote for a share the bid is
a. 2% less than offer
b. Less than offer
c. More than offer
d. Dependent on dealers skill
e. Equal to offer
3. Which of the following is usually not participant in stock market
a. Small individuals investors
b. Central banks
c. Companies
d. Financial institutions
4. In an account saving simple interest from the first year is reinvented at the beginning of
the second year?
a. True
b. False
5. Which of the following is a not current asset?
a. Goods for sale inventory
b. Terms loans
c. Cash
d. Raw material inventory
e. Receivables
6. Which of the following in not a feature of private banking?
a. Specialist advice
b. Lot of research
c. Commercial lending
d. High investment in technology
e. Understanding the capital and investment needs.
7. Retail loans are asset product offered by the bank
a. True
b. False
8. If the price of share pf cognizant changes from 65 to 60 this can be attributed to:
a. Market risk
b. Interest rate risk
c. Credit risk
d. Operational risk

e. Liquidity risk

9. Account maintained in the home currency by one bank is the name of another bank
based abroad is called as:
a. Current account
b. Nostro account
c. Vostro account
d. Forex account
e. Overseas account
10. Which of the following is not the settlement method for bank loans?
a. Pre-closure
b. Assignment
c. Participation
d. Sub participation
e. Securities repository
11. The process of transferring obligation from one party to another is called
12. The purchase of any stock for immediate delivery is a __ market transaction.
a. Futures
b. Spot
c. Forward
d. Stock
e. Option
13. In the historical simulation method of VaR calculation:
a. Return are assumed to be not normally distributed
b. No assumption is made about the distribution
c. Random returns are generated to calculate VaR
d. Return are assumed to be normally distributed
e. Returns are not required at all.
14. What happens when interest rate fall:
a. Bond prices increase
b. Bond prices decrease
c. Bond prices do not change
d. Economy goes into deflation
e. Interest rate never fall, they always go up.

15. If the price of a security on day 1&2 is $102 and $100 respectively. The return is
a. -2%
b. 2%
c. -1.96%
d. Very high
e. 1-2%
16. If you invest $1000 for 3 years at 7% compound interest, how much will you have at the
end of the 3 years?
a. $1225
b. None of listed option
c. $1000
d. $1070
e. $1270
17. The trade finance the term LC stands for;
a. Letter of commercials
b. Letter of credit worthiness
c. Letter of credit
d. Letter of commerce
e. Letter of complaints
18. What is need for banks in the society?
a. Small investor are protected, hence it is a low risk investment avenue.
b. Banks are in the best position to lend out money at competitive
c. Depositors are participant in primary and secondary markets.
d. All of listed options.
19. A is more risk averse investor than B .therefore.
a. For the same return, B tolerates lesser risk than B.
b. For the same return, A tolerates higher rate of return.
c. For the same return, A tolerates lower rate of return.
d. For the same return, A takes higher risk.
20. Liquidity issues of credit can be addressed by:a. Sweep facility
b. Structured lending to client
c. All
d. Short term credit facilities
e. Overdraft
21. Which is associated with purpose of regulating financial institution?
a. None
b. To provide stability of money supply.
c. To serve certain social objectives.

d. To prevent failure of any financial institution.

e. To offset moral hazard incentive provided by deposit insurance and other
guarantees.
22. Fastest method for calculating VaR.(Value at Risk)
a. Monte- Carlo simulation.
b. All equal time with software.
c. Variance-Covariance matrix.
d. Combination of Monte- Carlo and Historical Simulation.

23. Which is not banks primary use for deposits?

a. Payment to employers
b. None
c. Investment
d. Loan
e. Withdrawal
24. If the 5 bids available for stock are 64, 65, 63, 62.5 and 66 which one u will sell?

-> 66

25. When a bank issue a loan its liabilities & reserves increases by the amount of the loan.
a. True
b. False
26. If the corporate isnt able to raise money from the market to pay off some loans the risk
can be refer.
a. Market risk
b. Interest rate risk
c. Commodity risk
d. Operational risk
e. Liquidity risk
27. On the trading day at the NYSE a broker undertakes the following trades
Buy 100 IBM shares for $10.00 each
Sell 50 IBM shares for $10.50 each
Buy 100 MFST share for $20.00 each
Sell 20 IBM shares $11 each
Sell 10 MFST share at 20.50 each
Sell 30 IBM shares for 9.00 each
How much did the broker pay out to the exchange in total in case of (i) Gross settlement
system (ii) Net Settlement System?
a. (i) $1780 (ii) $3000
b. (i) 0 for IBM, $1795 for MSFT (ii) $1780.
c. (i) $3000 (ii) $1780
d. None

e. (i) $1780 (ii) 0 for IBM, $1795 for MSFT

28. US export and Europe import agree to carry out the transaction of goods word $100000
under a confirmed term LC with a maturity date of 60 days from the time of shipment.
The acceptance commission @ 1.5 % PA equals
A)
B)
C)
D)
E)

$2500
$3000
$300
none
$250

29. Operational risk is defined as?

30. The basic four parties involved in any transaction using LC are the following EXCEPT
A) Issuing Bank
B) Reimbursement Bank
C) Beneficiary Bank
D) Seller
E) Buyer
31. While providing security lending services to its clients which risk will a custodian have
to manage for its clients
A) Liquidity risk
B) Both Credit risk and interest rate risk
C) Interest rate risk
D) Credit risk
E) Both credit risk and liquidity risk.
32. If the price of securities on day 1 and 2 are $100 and $102 respectively .Returns is
A) A very high
B) 2
C) -1
D) -2
E) 1
33. Following are the list of risk that Cognizant faces at organizational level
A) Currency risk
B) Attrition
C) Credit risk
D) All of the above

E) Protective legislation by US/UK

34. Which of the following is not a core private banking function?
A) Client management
B) Deposit Mobilization
C) Investment analysis and advice
D) Research
E) Sales and Marketing

35. A mutual fund with investment objective of achieving high capital growth approaches
investor services firm for advice. The firm advices the mutual fund to invest 80% of the
fund in govt debt and 20% in equity. The allocation towards debt advised by the firm
A) Cannot be determined
B) is too high
C) Is about right
D) is too low
36. Which of the following operations can be done on a LC?
A) All the listed option
B) Acceptance
C) Negotiate
D) Purchase
E) Discount
37. Who among the following is most likely to be a private banking client of a bank?
A) A fresh engineer in his first job at cognizant
B) Tiger Woods
C) Any of the above
D) A cricket player who has never played national / international cricket
E) A manager at a manufacturing plant.
38. Which of the following method eliminate country risk and commercial risk upon
confirmation?
A) Documentary collection
B) Back to back LC
C) LC

D) Standby LC
E) Both standby LC and LC
42. The act of the loan amount being handed over to the borrower by the bank is known as
disbursement. State TRUE or FALSE -> TRUE
39) On the trading day at the NYSE a broker undertakes the following trades
Buy 100 IBM shares for $10.00 each
Sell 50 IBM shares for $10.50 each
Buy 100 MFST share for $20.00 each
Sell 20 IBM shares $11 each
Sell 10 MFST share at 20.50 each
Sell 30 IBM shares for 9.00 each
Given that a net settlement system is being used, find out the net position of the broker at
the end of the day
A) IBM no exchange of shares ; MFST 90 shares to receive ; $1780 to pay out to the
exchange
B) None of these
C) IBM no exchange of shares ; MFST 90 share to receive ; $3000 to pay out to exchange
D) IBM 70 shares to given out ; MFST 90 shares to receive ; $3000 to pat out to exchange
E) IBM no exchange of shares ; MFST 90 share to receive ; $1780 receive from the
exchange
40. ACH transaction involves the transmission of _________ (i.e. Automated Clearing
House)
A) All of the listed option
B) Documents
C) Physical instrument like check and draft
D) Electronic data files
E) Cash
41. What should one use while using comparing mortgages?
A) APR(Annual Percentage Rate)
B) None
C) IRR
D) NPV
E) Rate of interest applicable for the loan

43. Which one of the following is not offered by investment banking division of a bank?
A) learning services
B) None
C) Merger and Acquisition
D) Valuation of firm
E) Underwriting and distribution of equity issues.

44. If total spread on underwriting is $500000 and manager fee is $100000. What is the
amount which will be distributed in the syndicate?
A)
B)
C)
D)
E)

500000
100000
400000
600000
Can not be determined

45. HPPL shares are currently selling for $25 each. You bought 200 shares one year ago at
$24 each and received dividend payment as $1.50 per share what was total dollar capital
gain this year
A)
B)
C)
D)
E)

200
500
None
300
400

46. The brokerage firm is regulated by

A) State regularity agency
B) SEC (Securities and Exchange Commission)
C) Industry wide SRO
D) All of the listed option
47) Pick odd one out
a. Demat
b. Personal loan
c. None
d. Hire Purchase
e. Auto loans
48. I deposited 100 in a bank .Bank loan out 90 out of it to someone else, who then invest
the money in setting u a new factory. This process is called
A) Monetary policy
B) None
C) Money multiplier effect
D) Profit making tendency of a bank
E) Fiscal policy
49. Capital adequacy ratio refers to
A) Amount of bank capital expressed as % of the risk weighted credit exposure & market
risk.
B) Amount of bank capital expressed as % of the risk weighted credit exposure

C) Amount of bank capital expressed as % of the risk weighted credit exposure & operational
risk.
D) Amount of bank capital expressed as % of the risk weighted credit exposure
operational risk & market risk.
E) None
50. Which of the following is not a treasury management system?
A) Calypso
B) Summit
C) Wall street system
D) Front arena
E) Flex cube
51. Syndicate helps in all of the following activity but
A) Managing large bond issues
B) Raising huge money from the bank
C) Managing large capital raising act
D) Managing conflict between investment banks.
E) IPO distribution. (Initial Public Offering)

52. All of the following statements concerning US govt securities are correct EXCEPT
A) Treasury bills have their interest paid in a lump sum at maturity
B) None
C) Treasury bills have greater interest risk than either treasury bond or treasury note
D) Treasury note has maturity dates up to 10 yrs
E) Treasury bonds have maturity dates up to 30 yrs
53. In defined benefit plan the benefit is expressed as ________ and in defined contribution
plan the benefit is expressed as an ________
A)
B)
C)
D)
E)

Account balance , Annuity

Annuity , Annuity
Account balance , Account balance
None
Annuity , Account balance

54. What is the term used to indicate the arrangement of LARGE borrowing for a
corporate by a group as lenders
A) none
B) Syndicate
C) Allocation
D) Assignment
E) Secondary

55. Card associate provide which of the following service

A) issue card
B) Set credit limits
C) Set interest rates
D) Set card fees
E) Security/ Risk management
56. in an international securities transaction, which of the following participant will not be
involved
A) Global custodian , domestic sub custodian , depository in foreign country and sometime
stock exchange in foreign country
B) Depository in foreign country
C) Global Custodian
D) stock exchange in foreign country
E) domestic sub custodian
57. An insurer undertakes an analysis of a portfolio of insurance policy by exploring
scenarios for the path followed by swap rates, policy surrender rates, mortgage
prepayment rates for the mortgage backed security in the portfolio, what is this process
called
A)
B)
C)
D)
E)

Cash projection
Investment manages universe
Asset allocation
Fund administration
Asset / liabilities analysis

58 Trade finance helps in

A) Facilitating international transaction
B) Facilitating intra company transaction
C) Facilitating international transaction , corporate lending and settling up of new factories
D) Facilitating corporate lending
E) Facilitating setting up of new factories
59. A choice quote is
A) a price at which a firm is ready to buy or sell
B) When bid is equal to offer
C) When the firm has a choice of deciding the securities to take
D) a price at which a firm is ready to buy or sell it also means when bid is equal to
offer
60. Which of the following is likely to have the highest interest rate?
A) 6 month deposit of min balance of $1000
B) 3 month deposit of min balance of $4000
C) 12 month deposit of min balance of $1000
D) None

E) 6 month deposit of min balance of $2000

61. If 1 day VaR is $1 million, 9 day Var is
A) $3mn
B) $4.5 mn
C) $9mn
D) $4.4mn
E) $1mn
62. If a bank gets a deposit of $1000 assuming a CRR (Cash Reserve Ratio) of 10% and
that it circulates through 2 more banks, leading to the following money multiplier effect
A) Loan of $2439
B) Loan of $1710
C) None
D) Create a reserve of $100
E) Create a reserve of $190
63. Which among the following is an investment company that pools money from unit
holders and invest in a variety of security?
A) Mutual Fund
B) Mortgage Company
C) None
D) Stock Exchange
64. You purchased a stock for $40. 1 year later you received $2 as Dividend. You sold it at
$48. What is your return?
a. 45%
b. 10%
c. 25%
d. 50%
e. None
65. A formal Legal commitment to extend credit to some max amount over a state period of
time is description of
a. Trade Credit
b. Revolving Credit
c. Agreement Irrevocable Credit
d. Line of Credit
e. Letter of Credit
66. Odd 1 out
a. Warren Buffet
b. George Soros
c. Bill Gates
d. Ben Graham
e. Peter Lynch

67. Development of Investment Objective and Investment policy falls under the Purview of
a. Investment manager Universe
b. Asset Allocation
c. Asset Liability Analysis
d. Fund Admin
e. Compliance Reporting
68. Interest Rate Spread is equal to
a. Current rate Base Rate
b. Cap Current Rate
c. Current Rate Floor
d. Base Rate Floor
69. Which of the following factors affect the choice of Payment Method?
a. Exporters Fund
b. All
c. Government Guarantee Program
d. Time Frame
e. Cost of Financing
70. The NYSE is a large financial market in which the initial issue receives the proceeds for
the Sale of securities.
a. True
b. False
71. Which of the following trading services reduces the trading cost for institutional
investors?
a. Stock Repurchase Program
b. Transition Management
c. Transition Management & Commission Recapture
d. Commission Recapture
e. None
72. A CALL option on futures gives the buyer
a. the obligation to buy a futures contract
b. the obligation to sell a futures contract
c. the right & obligation to buy a futures contract
d. the right but not the obligation to buy a futures contract
e. the right but not the obligation to sell a futures contract
73. Which is not an example of Option?
a. Call Option
b. Swaption
c. Leaps
d. Oil Futures
e. Put Options

74. Some banks pay interest on Checking A/c while many do not.
a. True
b. False
75. The advising bank is called as trusted bridge between the ___________ & __________
when they do not have active relationship. Options wrong
a. Beneficiary Bank & Reimbursing Bank
b. Importer Exporter
c. Reimbursing Bank & Beneficiary Bank
d. Issuing Bank & Confirming Bank
The advising bank is used as a trusted bridge between the applicants bank and the beneficiarys
bank when they do not have an active relationship.

76. Which of the following according to you has resulted in defining contribution plans
gaining popularity over defined benefit plans
a. DC plans fix the monthly contribution from the employee making his financial planning
easier.
b. DC plans are seen by employees as investment which to accumulate retirement income.
c. All
d. Employer increasing wants employees to share responsibility for retirement
77. ________is typically largest part of spread and is paid to broker\dealer or that actually
took clients order
a. Salary
b. Manager fee
c. Wage
d. Concession
e. Underwriter
78. NASD is not an SRO for
a. Listed market
b. Over the counter market
c. Third market
d. Fourth market
79. High net worth individuals generally have ____________.
a. Market capitalization more than $200000
b. All
c. Net worth greater than $500000
d. Household income of max $50000 year.
80. Which is true about retail banking?
a. The business focuses on small no. of high net worth individuals.
b. The business focuses on small and medium enterprises.
c. The business focuses on large no. of individuals.

d. The business focuses on large no. of corporation bodies.

81. Offer is price at which a firm
a. Trades in securities
b. Quotes to its bets customer
c. Intends to buy
d. Intends to sell
e. Quotes when it does not want to trade.
82. Securities with original maturity greater than 1 year are traded on money market.
a. True
b. False
83. Which is not a banking service?
a. Stock market
b. Retail banking
c. Corporate banking
d. Customer lending
84. Which is true?
a. Financer owns the asset both in case of Lease and hire Purchase.
b. Tax deduction cab be claimed fro the full value of the rental paid in case of lease
c. All
d. Depreciation in claimed by the financer in lease and not in case of hire purchase.
85. Bank a based in US provides safe keeping services for securities to its US clients. It also
has clients in France and Belgium and provides securities safe keeping services to these
clients through banks C & D respectively. Which best describes bank A?
a. Global custodian,
b. None
c. Main custodian
d. Sub custodian
e. Secondary custodian
86. All following statements relating to Bonds are correct except.
A) Bonds sell at a discount when Coupon Rate is less than Market Interest rate.
B) None
C) Bond is debt instrument giving issues.
87. Which of the following type of loan requires the amount of interest that would be
earned on the loan to be paid upfront by the borrower?
A) Capitalized loan
B) True Discounted loan
C) Amortized loan
D) Demand loan
E) Discounted loan
88. Who are involved in the preparation of prospectus of IPO?
A) Commercial bankers

B)
C)
D)
E)

Investment Bankers
None
Company Management
Company Management and Investment Bankers

89. Bankers Acceptance differs from Sight Draft in that

A) Bankers Acceptance reduces lending capacity
B) Sight Drafts are negotiable instruments
C) Bankers Acceptance demands immediate payment.
D) None
E) Banks can raise funds by selling acceptance.
90. Clients of a private banker are generally not segregated on the basis of
A) Investible assets
B) Location
C) Age
D) Net worth
E) Name
91. The initial sale of the security is in the market, while subsequent trading in
the security is in the .. market
A) Spot, futures
B) Debt , Equity
C) Primary , Secondary
D) Money, Capital
E) Secondary, Primary
92. Under what category can services like asset/liability analysis, asset allocation, cash
projection, compliance reporting, fund administration, investment Management
universe etc. provided by an institution can be classified?
A) Investment Management
B) Asset Servicing
C) None
D) Trading
E) Investor Services.
93. CIP in the context of anti-money laundering is
A) All
B) Stands for Suspicious Activity Reports
C) Customer Identification Program
D) Requiring Businesses, which were only to report cash transactions involving more than
1.00,000?
94. On a trading day at a stock exchange a broker undertakes the foll trades:
Buy 100 IBM shares for 10$ each
Sell 50 IBM shares for 10.5 $each
Buy 100 MSFT shares for 20$ each

Sell 20 IBM shares for 11$ each

Sell 10 MSFT shares for 20.5 each
Sell 30 1bm shares for 9$ each
At the end of the day, the broker owes 1780 to the exchange while exchange owes him
90 shares of MSFT. Is it possible?
A) Yes under RTGS
B) No
C) Yes under net-settlement system
95. Dow Jones industrial average is made of
A) 30 stocks
B) 20 stocks
C) 40 stocks
D) 10 stocks
E) 50 stocks
96. Which is the key feature of Letter of Credit?
A) basis for devising proper currency hedging strategy
B) Distributes risk between buyer n sellers.
C) basis for devising proper currency hedging strategy and opportunity for receiving payment
in advance of the due date.
D) All
E) Opportunity for receiving payment in advance of the due date.
97. Which risks bring gain and losses?
A) Interest rate and foreign exchange
B) Liquidity and credit
C) Credit and Interest rate
D) Credit and Foreign exchange
E) All
98. Find the future value of $1200 invested at 5.25 % per annum payable annually
after 6 months? Marks: 2
1. 1345.1
2. 1243.1
3. 1231.1
4. None
5. 1235
99. Investor services like brokerage, cash management and short term investments,
commission re-capture, foreign exchange transactions, transaction management
etc. can be classified under ____ group of services. Marks: 1.
1. Trading
2. Investment Management
3. Investor service

4. None
5. Asset Servicing
101. The term CP is used in corporate lending for ____. Marks: 1
1. Collateral provision
2. Client Partner
3. Commercial Paper
4. Commodity Put options
5. Credit Provision
102 What are the risks associated with the Hedge funds? Marks: 3
1. All of the above
2. High exposures in derivatives
3. High Leveraging
4. High Speculation

103. The trade terms 15/2 net 30indicates that _____. Marks: 3
a. 2% discount is offered if payment is made within 15 days.
b. 15% discount is offered if payment is made within 2 days; the payment should
however be made in 30 days.
c. 30% discount is offered if payment is made before 15 of the month.
d. 15% discount is offered if payment is made between 2 & 30 days;
e. 15% discount is offered if payment is made within 30 days.
104. A bank is required to hold reverses at least equal to a pre-scribed fraction of its total
deposit liabilities.
a. True
b. False

105 What term is used to describe n LC that remains valid for years thereby eliminating
the cost of separate LCs for each transaction with a regular client?
a. Irrevocable LC
b. None
c. Red clause
d. Revolving LC
e. Evergreen clause
106 Who appoints investment manager to manage a benefit plan?
a. Plan sponsor
b. Plan administrator
c. Fund trustee
d. None

e. Government
107 A company would pay the interest on what portion of loan?
a. Committed amount
b. Either disbursed or committed loan
c. Unused amount of loan
d. Disbursed amount
e. None
108 In the exchange on a particular trading there is a buy market order for 100 CTSH
shares and two sell market orders for 50 and 40 CTSH shares each, can the buy order be
matched against the two sell orders.
a. Yes
b. No
c. Yes, but if prices on the buy & sell side match.
109 If the limit = $2000, margin = 20% and asset value = $2000 then drawing power for an
open ended loan is equal to?
a. None
b. $1600
c. $2200
d. $2400
e. $2000
110 Risk cannot be migrated by
a. Setting risk limits
b. Hedging
c. Diversification
d. Arbitrage
e. Insurance
111 A fixed income analyst will analyze all but
a. Municipal bonds
b. Bonds of govt. sponsed enterprise
c. Corporate bonds
d. US treasuries
e. Shares
112 In benefit administration what are the relationships that exits between the plan
administrator and the investment manager, and between Trustee and the investment
manager.
a. None
b. Plan administrator & trustee both have outsourced plan administration as well as fund
management to investment manager
c. Any
d. Plan administrator gives investment instruction to investment manager while
trustee appoints the investment manager.

e. Trustee gives investment instruction to investment manager, while plan administrator

appoints the investment manager.
113 Which entity provides credit scores that are used by issuers to process card
application?
a. Issuer processor
b. Collection agency
c. Issuing bank
d. Authorization engine
e. Credit bureau.
114 CPI stands for which of the following?
a. Consolidated Price index
b. Consument popularity index
c. Consumer product index
d. Consumer price index
e. None
115 A bank decides to sanction only 10% of the loan sought by a company. The company
goes and pledges extra assets with the bank and the bank then agree to sanction 50% of the
loan sought. The company has indulged in the process of
a. Credit scoring
b. Credit increase
c. Credit incrementation
d. Credit revision
e. Credit enhancement.
116 FX spot deal assumes maturity of how many business days ahead ?
a) 4
b) 5
c) 3
d) 1
e) 2
117 Which of the following is best VaR estimation Model?
a) Monte- Carlo
b) Historical
c) Variance-Covariance
d) Variance-Covariance and Monte- Carlo

118 Which of them represent company is incorporated in USA?

a) Plc
b) Pte
c) Ltd
d) Inc

119 Which of the factors affect the choice of payment methods?

a) Govt. guarantee Program
b) Time frame
c) All
d) Cost of financing
e) Exporter fund.
120 Organization level risk appetite is determined by:
a) Risk management
b) Front office
c) Back office
d) Trade
e) Board of director
121 Risk management is function of:
a) Traders
b) Back office
c) Specialist
d) Front office
e) Mid office
122 Purely competitive financial market is not characterized by
a) Govt. regulation
b) Many traders
c) Full info
d) Cost effective trading
123 NOT player in typical trade cycle;
a) Custodian bank
b) Clearing bank
c) Clearing member
d) Trading member
e) Regulator
124 Once syndicate has sold all other trades participant, sub participant and assignment
are considered trade in what market?
a) Primary
b) Secondary
c) Participant
d) OTC
e) Index
125 Question relates to price weighted index?
1. DJIA (Dow Jones Industrial Average)
2. Hangseng

3. EAFE index
4. NASDAQ composite index
5. S&P 500
126 In defined contribution retirement plan .Tax sheltered annuities fall under section of
_________ERISA (Employee Retirement Income Security Act)
403b
401k
401b
403k
None
126 In benefits administration, trustee and plan administrator submit compliance report
to______ which in turn qualifies the plan.
Participant
None (answer is TRUST)
Government
Investment manager
Sponsor
127 Full form of ADR
Answer: American Depository Receipts
128 Question related to BASEL II
Answer: Capital adequacy
129 What is interest rate charged on asset based loan?
Answer: The interest rate charged is lower than personal loans
130 Question related to credit derivatives as which of the following function is not done by credit
derivatives

Answer: Answer was something as Transfer to over the counter

131 Question related to credit derivatives it was fill up the blanks? Exactly dont remember the
question/

Answer: option having TRANSFER

132 Question related to non-discretionary Investment Management

Answer: the bank offers investment recommendations based on the Clients approval.
133 Question having few options like Income Processing, Tax Information Services, Cash Sweep

Answer: ASSET SERVICING

134 Question related to Underwriting?
Options:
1. Underwriting Spread
2. Public Offering Price (POP),

3. Lead or Managing Underwriter is the Underwriting Agreement.(not sure about it)

4. All
Answer is ALL the listed option
1. Risk Matrices was developed by:- JP Morgan, Bank of California, Credit Suisse, SBI
2. Research analyst may recommend to :- buy, hold and sell
3. Reducing CRR for banks would have impact on:a. Increased money supply
b. Reduced interest rates
c. Reduced money supply in the economy
d. Profitability of firms
e. None
4. Under corporate stock repurchase program
a. Corporate purchase their own shares from shareholders
5. Private banking providing risk management services strives to:a. Eliminate risk and maximize returns
b. Eliminate risk without worrying about returns
c. Reduce risk and optimize returns
d. Avoid risk and returns
e. All
f.
6. One would go for bank deposits because
a. Money easily available
b. Interest earned
c. Insurance cover available
d. All
7. Basic 4 parties involved in any transaction using letter of credit are following except
a. Issuing bank
b. Buyer
c. Reimbursement bank
d. Seller
e. Beneficiary bank
8. From sellers point of view which method has least risk
a. LC
b. Direct debit
c. Documentary collection
d. Counter trade
e. Cash in advance
9.

ABC rated as AA+ and XYZ rated D. Who gets loan from bank
a. Equally unlikely
b. Equally likely
c. ABC
d. XYZ

e. None
10. Which is not the settlement method for bank loans?
a. Pre-closure
b. Assignment
c. Participation
d. Sub participation
e. Securities repository
11. Which is correct hierarchy of corporate ratings (high to low)?
a. AAA,AA+,BBB,D
12. Inflation- 9%. Future value of 100 units of money after 2 years:
a. 118.8
b. Exactly 100
c. Exactly 200
d. Around 109
e. None
13. Brokerage firms are regulated by
a. SEC
b. Industry wide SROs
c. State regulatory Agency
d. All
14. Odd man out:a. SEC
b. NYSE
c. NASDAQ
d. LSE
e. NSE
15. From investor stand point a debenture issued by excellent company will appear risky than
share of preferred stock issued by excellent company
a. True
b. False
16. Risk associated with hedge funds:a. High exposure in derivatives
b. All
c. High speculation
d. High leveraging
17. Not a feature of private banking:a. High investment in technology
b. Lot of research

c. Commercial lending
d. Specialist advice
e. Understanding capital and investment needs
18. Which of the following affects the choice of payment method
a. All
b. Government guarantee method
c. Exporters fund
d. Time frame
e. Cost of financing
19. Which risk may bring gains and losses?
a. Credit risk and interest rate risk
b. All
c. Liquidity risk and foreign exchange risk
d. Credit risk and foreign exchange risk
20. Bankers acceptance differs from sight draft in that
a. Sight drafts are negotiable instruments
b. Bankers acceptance demand immediate payments
c. Bank can raise funds by selling acceptance
d. Bank acceptance reduces banks lending capacity
e. None
21. Formal legal commitment to extend credit up to some maximum amount over a period of
time is a description of
a. Line of credit
b. Irrevocable credit
c. Letter of credit
d. Revolving credit agreement
e. Trade credit
22. Security settlement is function of
a. Specialist
b. Traders
c. Back office
d. Front office
e. Mid office
23. Which of these instruments is not included as part of asset servicing services and the
category Pricing/ Holdings Valuation which includes accurate pricing, rating etc.
a. Equities
b. Certificate of participation
c. Government securities
d. Certificate of deposit
e. Services may be provided for all

24. Which of the following is involved in retails brokerage business in US

a. E-trade
b. Charles Schwab
c. Sallie Mae
d. Federal reserve
e. a and b both
25. Measures of performance of an investment portfolio are all of the following except:a. Risk adjusted return
b. Style maps score
c. Profit/loss on portfolio
d. Alpha
e. Up/down market analysis
26. Interest rate spread:a. Current rate floor
b. Cap current rate
c. Current rate-base rate
d. Base rate-floor rate
e. None
27. Who insures stocks in stock market
a. Security and exchange commission
b. Federal deposit insurance corporation
c. Us department of treasury
d. None
28. NASD is not an SRO for
a. 4th market
b. 3rd market
c. Listed market
d. 2nd market
e. OTC market
29. Which of the following loan requires the amount of interest that would be earned on the
loan to be paid upfront by borrower:a. Discounted loans
b. True discount
c. Capitalized
d. Demand
e. Amortized
30. Limit = $2000 Margin=20% Asset value=2000
a. Drawing power = 1600

31. Over the counter market is also called

a. Unlisted market
b. 2nd , unlisted and OTC market
c. Unlisted
d. Super
e. 2nd market
32. Liquidity issues of credit can be addressed by:a. Sweep facility
b. Structured lending to client
c. All
d. Short term credit facilities
e. Overdraft
33. Standby letter is _____ secure than documentary collection and cheaper than ____
a. More, commercial LOC
34. Which is not an option
a. Call
b. Put
c. Swaption
d. Oil futures
e. Leaps
35. question on top 10 US bank REBO

36. ACH transaction involves

a. Cash
b. Electronic data
c. Docs
d. Checks and drafts
e. All
37. Interest rates falls
a. Bond prices increase
b. Bond prices decrease
c. Do not change
d. Economy goes to deflation
38. Rate at which bank purchases US dollars against home currency is :a. Bid
b. Indirect
c. Direct
d. Cross currency
e. Ask rate
39 Offer price is the price at which the firm

f. Intends to buy
g. Intends to sell
h. Trades in securities
i. None
39. Bid price is the price at which the firm
The price at which market makers will buy or sell a particular security.
41 Presence of risk implies
a. Standard deviation of return is 0
b. Uncertainties of final outcome
c. Final wealth is lower
d. Investment gain
40. Company would pay interest on what portion of the loan?
a. Disbursed amount
b. Committed amount
c. Both
d. Either
e. None
41. Odd man out?
a. Equity
b. Stocks
c. Shares
d. Convertible bonds
e. Common stock
42. A bank cannot cover the money demanded by depositor, then it goes out to
a. Federal reserve bank
43. Institutions involved in benefit administration process, discussing plans
a. Sponsor
b. Custodian
c. Plan administration
d. Record keeper
e. Participant
44. Which of the following eliminates both country risk and commercial risk?
a. Both standby LOC and LOC
45. When bank goes to the fed to borrow funds then the interest rate charged by fed is known
as
a. Prime rate
b. Bond rate
c. Discount rate
d. Federal rate