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Cts CCP l0 Bfs Dumps
Cts CCP l0 Bfs Dumps
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.
-> 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
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
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
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)
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
Cash projection
Investment manages universe
Asset allocation
Fund administration
Asset / liabilities analysis
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.
B)
C)
D)
E)
Investment Bankers
None
Company Management
Company Management and Investment Bankers
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.
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: the bank offers investment recommendations based on the Clients approval.
133 Question having few options like Income Processing, Tax Information Services, Cash Sweep
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
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