7/

6/2017 TheI
ndi
anI
nst
it
uteofBanki
ng&Fi
nance

Subj
ect
Name:
BANKFI
NANCI
ALMANAGEMENT No.
ofat
tempt
edquest
ions:
No.
ofunat
tempt
edquest
ions:
Unat
tempt
edQ.
No'
sar
emar
kedi
nyel
l
ow
Ex
amLogi
nID:
Text
Size:

Language:
ENGLI
SH

(
Mar
ks-
1.00)
Er
aseAnswer

Q1.
Thet
radi
ngl
i
mit
sinf
orei
gnexchangei
ncl
udes.
..
..
.

1)Onl
ydeal
sizel
i
mit
s

2)Onl
yopenposi
ti
onl
i
mit
s

3)Onl
yst
op-
lossl
i
mit
s

4)Al
loft
heabov
e

(
Mar
ks-
1.00)
Er
aseAnswer

Q2.
ABankr
ecei
vedanLCf
orUSD2Mi
oissuedby
MT700andopenedonJan25,
2014.
Thecr
edi
tcal
l
sfor
shi
pment
of200t
onnesof
goodqual
i
tywheat
cul
ti
vat
edi
nPunj
ab.

Under
UCP600,
what
shoul
dbedonet
oensur
eshi
pment
ofgoodqual
i
tywheat
?

1)Takeadecl
arat
ionf
rom sel
l
er

2)Takemar
ketr
epor
ts

3)Todi
sregar
dnon-
document
aryr
equi
rement
s

4)Banki
tsel
fcancer
ti
fy

(
Mar
ks-
1.00)
Er
aseAnswer

Q3.
If
theUSD:
INRr
atequot
edi
s1USD=61.
40/
42t
oday
and6mont
hsf
orwar
das1USD=62.
10/
12,
USDi
s.

1)Atadi
scountagai
nstI
NR

2)Ther
eisnochange

3)Atapr
emi
um agai
nstI
NR

4)Ataf
orwar
drat
etobedeci
dedataf
utur
edat
e

(
Mar
ks-
1.00)
Er
aseAnswer

Q4.
Int
ermsof
art
icl
e3of
UCP600,
i
fther
eisnoment
ion,
LCwi
l
lbet
reat
edaswhat
typeof
LC?

1)Rev
ocabl
eLC

2)I
rr
evocabl
eLC

3)Conf
ir
medLC

4)Backt
obackLC

(
Mar
ks-
1.00)
Er
aseAnswer

Q5.
BankA'
sasset
sandout
standi
ngcont
ract
stopur
chaseUS$exceedt
hel
i
abi
l
iti
esandout
standi
ngcont
ract
stosel
l
US$.
Int
hiscase,
BankA'
sposi
ti
onv
is-
a-v
isUS$i
s.

1)Ov
ersol
d

2)Ov
erbought

3)Ther
eisnoopenposi
ti
on

4)I
nfor
mat
ioni
sinsuf
fi
ci
entt
oar
ri
veataconcl
usi
on

(
Mar
ks-
1.00)
Er
aseAnswer

Q6.
For
war
drat
esar
ecal
cul
atedby
.

1)addi
ngamar
kupt
ospotr
ates

t
tp:
//i
i
bfpr
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sif
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est
.com/
onl
i
ne_
exam.
php 1/
12
7/
6/2017 TheI
ndi
anI
nst
it
uteofBanki
ng&Fi
nance

2)addi
ngpr
emi
um ordi
scountt
ospotr
ates

3)deduct
ingpr
emi
um ordi
scountf
rom spotr
ates

4)addi
ngpr
emi
um t
oanddeduct
ingdi
scountf
rom spotr
ates

(
Mar
ks-
1.00)
Er
aseAnswer

Q7.
What
isaDay
-l
ight
posi
ti
on?

1)Maxi
mum openposi
ti
onl
i
mitdur
ingt
heday

2)Maxi
mum openposi
ti
onl
i
mitatendofday

3)Excessofcur
rencyasset
sov
ercur
rencyl
i
abi
l
iti
es

4)Excessofcur
rencyl
i
abi
l
iti
esov
ercur
rencyasset
s

(
Mar
ks-
1.00)
Er
aseAnswer

Q8.
Thet
ermSWI
FTst
andsf
or.

1)Soci
etyf
orWor
ldwi
deI
nter
nat
ional
Financi
alTel
ecommuni
cat
ions

2)Soci
etyf
orWor
ldwi
deI
nter
nat
ional
FundsTel
ecommuni
cat
ions

3)Soci
etyf
orWor
ldwi
deI
nter
bankFundsTr
ansf
er

4)Soci
etyf
orWor
ldwi
deI
nter
bankFi
nanci
alTel
ecommuni
cat
ions

(
Mar
ks-
1.00)
Er
aseAnswer

Q9.
Thef
inanci
ngof
expor
trecei
vabl
es,
wit
hout
recour
set
othesel
l
erf
orf
ull
i
nvoi
cev
aluei
scal
l
ed.

1)Fact
ori
ng

2)Di
scount
ing

3)Negot
iat
ion

4)For
fai
ti
ng

(
Mar
ks-
1.00)
Er
aseAnswer

Q10.
Whi
chof
thef
oll
owi
ngshi
pment
sout
ofI
ndi
aar
eexempt
fromexpor
tdecl
arat
ionf
orms?

1)Goodsorsof
twar
e,whenaccompani
edbyadecl
arat
ionbyt
heexpor
tert
hatt
heyar
enotmor
ethanUSD50000i
nval
ue

2)Gi
ft
sofgoods,
val
uingnotov
erRs.
50000al
ongwi
thdecl
arat
ionofexpor
ts

3)Gi
ft
sofgoods,
val
uingnotov
erRs.
500000al
ongwi
thdecl
arat
ionofexpor
ts

4)Goodsnotexceedi
ngi
nval
ueUSD10000pert
ransact
ionexpor
tedt
oMy
anmarunderbi
l
ater
alt
radeagr
eement

(
Mar
ks-
1.00)
Er
aseAnswer

Q11.
Whi
chi
sthenodal
agency
desi
gnat
edby
Gov
ernment
ofI
ndi
atomanaget
heExpor
tMar
ket
ingFund?

1)Reser
veBankofI
ndi
a

2)Feder
ati
onofI
ndi
anExpor
ter
sOr
gani
zat
ion

3)ECGC

4)Exi
m Bank

(
Mar
ks-
1.00)
Er
aseAnswer

Q12.
Inr
espect
ofspot
rat
es(
for
ex)
.

1)Thedeal
andset
tl
ementt
akepl
aceont
hesameday

2)Theset
tl
ementt
akespl
aceont
heseconddayf
oll
owi
ngt
hedeal
dat
e

3)Theset
tl
ementt
akespl
aceanyt
imeaf
terdeal
dat
e

4)Thedeal
takespl
aceont
het
hir
ddayf
oll
owi
ngt
hedeal
dat
e

(
Mar
ks-
1.00)
Er
aseAnswer

Q13.
Oneof
thest
atement
sinr
espect
ofOv
erseasCor
por
ateBodi
es(
OCB)
isnot
cor
rect
.I
dent
if
ythesame.

1)OCBscompr
iseov
erseasf
ir
ms,
trustorcompani
es

2)OCBsar
epr
edomi
nant
lyownedbyNRI
s

3)NRIowner
shi
pshoul
dbemi
nimum 60%i
nOCBs

4)OCBscani
nvesti
nIndi
ajustasNRI
sdo
t
tp:
//i
i
bfpr
ac.
sif
yit
est
.com/
onl
i
ne_
exam.
php 2/
12
h
7/
6/2017 TheI
ndi
anI
nst
it
uteofBanki
ng&Fi
nance
(
Mar
ks-
1.00)
Er
aseAnswer

Q14.
What
ist
hepr
inci
pal
pur
poseof
Int
erest
Rat
eSwaps?

1)Hel
pbor
rower
s/l
ender
stoswi
tcht
hei
rbor
rowi
ngs/
lendi
ngsf
rom f
ixedt
ofl
oat
ingr
atest
ruct
uresandv
icev
ersa

2)Hel
ppl
ayer
smaxi
mizei
nter
estear
nings

3)Hel
paccel
erat
eint
erestduepay
ment
s

4)Hel
pthemar
ket
sincr
easev
olumes

(
Mar
ks-
1.00)
Er
aseAnswer

Q15.
What
ist
her
esul
tof
pre-
set
tl
ement
ri
sk?

1)Absol
utel
ossoft
heamount

2)Lossofr
eput
ati
on

3)Repl
acementcost

4)Not
ional
int
erestl
oss

(
Mar
ks-
1.00)
Er
aseAnswer

Q16.
Why
downsi
depot
ent
ial
i
sthemost
compr
ehensi
vemeasur
eof
ri
sk?

1)I
tint
egr
atessensi
ti
vi
tywi
thposi
ti
veef
fect
sofcer
tai
nty

2)I
tint
egr
atesv
olat
il
it
ywi
thsensi
ti
vi
ty

3)I
tint
egr
atesv
olat
il
it
yandsensi
ti
vi
tywi
tht
headv
erseef
fect
sofuncer
tai
nty

4)I
taccur
atel
ypr
edi
ctst
heout
come

(
Mar
ks-
1.00)
Er
aseAnswer

Q17.

Basedont
hef
oll
owi
ngdat
aof
Best
Bankason1st
Nov
ember
,

(
Rs.
Cror
e)Ti
er

-
ICapi
tal
asper
it
slast
audi
tedBal
anceSheet
Rs.
5,000

Ti
er-
II
Capi
tal
asper
it
slast
audi
tedBal
anceSheet
Rs.
2,000

I
nfusi
onof
Equi
tyaf
ter
publ
i
shedBal
anceSheet
dat
eRs.
500

Pai
dupCapi
tal
asper
last
audi
tedBal
anceSheet
Rs.
300

Fr
eeReser
vesasi
tsl
ast
audi
tedBal
anceSheet
Rs.
4,500

I
ntangi
bleAsset
sasper
last
audi
tedBal
anceSheet
dat
eRs.
100

Capi
tal
mar
ket
exposur
eason1st
Nov
ember
Rs.
1,000

Out
ofwhi
ch,
dir
ect
capi
tal
mar
ket
exposur
eisRs.
100

What
ist
hel
i
mit
for
loanst
oIndi
anJoi
ntVent
uresabr
oadwher
ethehol
dingi
smor
ethan51%?

1)Rs.
1620Cr
ore

2)Rs.
1520Cr
ore

3)Rs.
1400Cr
ore

4)Rs.
1500Cr
ore

(
Mar
ks-
1.00)
Er
aseAnswer

Q18.

Basedont
hef
oll
owi
ngdat
aof
Best
Bankason1st
Nov
ember
,

(
Rs.
Cror
e)

Ti
er-
ICapi
tal
asper
it
slast
audi
tedBal
anceSheet
Rs.
5,000

Ti
er-
II
Capi
tal
asper
it
slast
audi
tedBal
anceSheet
Rs.
2,000

ht
tp:
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i
bfpr
ac.
sif
yit
est
.com/
onl
i
ne_
exam.
php 3/
12
7/
6/2017 TheI
ndi
anI
nst
it
uteofBanki
ng&Fi
nance

I
nfusi
onof
Equi
tyaf
ter
publ
i
shedBal
anceSheet
dat
eRs.
500

Pai
dupCapi
tal
asper
last
audi
tedBal
anceSheet
Rs.
300

Fr
eeReser
vesasi
tsl
ast
audi
tedBal
anceSheet
Rs.
4,500

I
ntangi
bleAsset
sasper
last
audi
tedBal
anceSheet
dat
eRs.
100

Capi
tal
mar
ket
exposur
eason1st
Nov
ember
Rs.
1,000

Out
ofwhi
ch,
dir
ect
capi
tal
mar
ket
exposur
eisRs.
100

What
ist
heNet
Wor
thof
Best
Bankason1st
Nov
ember
asper
RBI
gui
del
i
nes?

1)Rs.
4800Cr
ore

2)Rs.
5000Cr
ore

3)Rs.
5800Cr
ore

4)Rs.
5200Cr
ore

(
Mar
ks-
1.00)
Er
aseAnswer

Q19.
Model
ri
ski
sat
ypeof
--
-

1)Oper
ati
onal
risk

2)Mar
ketRi
sk

3)Basi
sRi
sk

4)Fundi
ngr
isk

(
Mar
ks-
1.00)
Er
aseAnswer

Q20.
A5-y
ear6%semi-annual
bond@mar
ket
yiel
dof
8%,
hav
ingapr
iceof
Rs.
92,
fal
l
stoRs.
91.
80at
ayi
eldof
8.10%,
what
is
Basi
sPoi
ntVal
ue(BPV)?

1)Rs.0.
20

2)Rs.0.
10

3)Rs.0.
02

4)Rs.0.
05

(
Mar
ks-
1.00)
Er
aseAnswer

Q21.
Anexposureof
Rs.
100lakhsi
sbackedbyl
ienonf
ixeddeposi
tof
Rs.
30l
akhswi
thout
any
mat
uri
tymi
smat
ch.
If
thenet
exposur
equal
i
fyi
ngf
orcapi
tal
adequacy
isRs.
70,
wh
at
ist
hehai
rcut
appli
edf
ort
hecredi
tri
skmiti
gant?

1)30%

2)100%

3)70%

4)0%

(
Mar
ks-
1.00)
Er
aseAnswer

Q22.Gi
venthatTi
erI
capi
tal
i
sRs.1000cror
esandTi
erI
Icapi
talRs.
500cr
oresandf
urt
her
giv
enthat
RWAf or
credi
tr
iskRs.
8000cr
ores,capi
tal
char
gefor
mar ket
ri
skandoper
ati
onalr
iskRs.
360cror
esandRs.
270cr
orer
espect
ivel
y.

What
aret
het
otal
ri
skwei
ght
edasset
s?

1)Rs.
12250cr
ores

2)Rs.15000cr
ores

3)Rs.8630cr
ores

4)Rs.7800cr
ores

(
Mar
ks-
1.00)
Er
aseAnswer

Q23.
Conv
ersi
onof
non-
fundbasedl
i
mit
int
ofundbasedl
i
mit
isat
ypeof
--
-

1)Fundi
ngRi
sk

2)Ti
meRi
sk

3)Sy
stemi
cRi
sk
ht
tp:
//i
i
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ac.
sif
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est
.com/
onl
i
ne_
exam.
php 4/
12
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6/2017 TheI
ndi
anI
nst
it
uteofBanki
ng&Fi
nance

4)Cal
lRi
sk

(
Mar
ks-
1.00)
Er
aseAnswer

Q24.
Quant
it
ati
vemeasur
esof
ri
skscanbecl
assi
fi
edi
ntot
hreecat
egor
ies.

1)
basedonsensi
ti
vit
y
2)
basedondownsidepot
ent
ial
.

What
ist
het
hir
done?

1)Basedonv
olumes

2)Basedonv
olat
il
it
y

3)Basedonseasonal
i
ty

4)Basedonbehav
ior
alpat
ter
ns

(
Mar
ks-
1.00)
Er
aseAnswer

Q25.
Whi
chof
thef
oll
owi
ngst
atement
sisi
ncor
rect
?

1)Hi
ghert
her
isk,
higherwoul
dbet
her
iskpr
emi
um

2)Hi
ghert
her
iski
nbusi
ness,
highert
hecapi
tal
requi
rement

3)Ri
skmanagementi
nvol
vesr
iski
dent
if
icat
ion,
measur
ement
,moni
tor
ingandmi
ti
gat
ion

4)Hi
ghert
heRAROC,
loweri
sther
ewar
dtoi
nvest
ors

(
Mar
ks-
1.00)
Er
aseAnswer

Q26.
Whi
choneof
thef
oll
owi
ngi
snot
aPr
inci
ple2of
Pil
l
ar2?

1)On-
sit
eexami
nat
ion

2)Of
f-
sit
erev
iew

3)I
nter
nal
cont
rol
rev
iew

4)Per
iodi
crepor
ti
ng

(
Mar
ks-
1.00)
Er
aseAnswer

Q27.
If
thedai
l
yvol
ati
l
ity
ofst
ocksi
s0.
2%,
what
isi
ts10-
day
vol
ati
l
ity
?

1)0.
63

2)2.
00

3)0.
75

4)0.
68

(
Mar
ks-
1.00)
Er
aseAnswer

Q28.

Basedont
hef
oll
owi
ngdat
aof
Best
Bankason1st
Nov
ember
,

(
Rs.
Cror
e)Ti
er

-
ICapi
tal
asper
it
slast
audi
tedBal
anceSheet
Rs.
5,000

Ti
er-
II
Capi
tal
asper
it
slast
audi
tedBal
anceSheet
Rs.
2,000

I
nfusi
onof
Equi
tyaf
ter
publ
i
shedBal
anceSheet
dat
eRs.
500

Pai
dupCapi
tal
asper
last
audi
tedBal
anceSheet
Rs.
300

Fr
eeReser
vesasi
tsl
ast
audi
tedBal
anceSheet
Rs.
4,500

I
ntangi
bleAsset
sasper
last
audi
tedBal
anceSheet
dat
eRs.
100

Capi
tal
mar
ket
exposur
eason1st
Nov
ember
Rs.
1,000

Out
ofwhi
ch,
dir
ect
capi
tal
mar
ket
exposur
eisRs.
100

What
wil
l
bet
heexposur
ecei
l
ingl
i
mit
toABCLt
dbel
ongi
ngt
oXYZGr
oup,
asper
ext
ant
RBI
gui
del
i
nes?

ht
tp:
//i
i
bfpr
ac.
sif
yit
est
.com/
onl
i
ne_
exam.
php 5/
12
7/
6/2017 TheI
ndi
anI
nst
it
uteofBanki
ng&Fi
nance

1)Rs.
1125Cr
ore

2)Rs.
1215Cr
ore

3)Rs.
1050Cr
ore

4)Rs.
1140Cr
ore

(
Mar
ks-
1.00)
Er
aseAnswer

Q29.
Incaseof
apr
evai
l
ingemer
gency
,i
ft
hedi
sast
err
ecov
ery
syst
emsof
abankal
sof
ail
,
what
typeof
ri
skcani
tbecal
l
ed?

1)Oper
ati
onal
risk

2)Busi
nessr
isk

3)St
rat
egi
cri
sk

4)For
ceMaj
eur
e

(
Mar
ks-
1.00)
Er
aseAnswer

Q30.
What
ist
hebet
afact
orf
orr
etai
l
banki
ngunder
Standar
dizedappr
oach?

1)15%

2)18%

3)12%

4)Noneoft
heabov
e

(
Mar
ks-
1.00)
Er
aseAnswer

Q31.
AnI
ntegr
atedRi
skManagement
Pol
i
cyi
ncl
udes.
..
..

1)ALM Pol
i
cyonl
y

2)I
nvest
mentPol
i
cyonl
y

3)Tr
ansf
erPr
ici
ngPol
i
cyonl
y

4)Al
loft
heabov
e

(
Mar
ks-
1.00)
Er
aseAnswer

Q32.
Dai
l
yvol
ati
l
ity
ofast
ocki
s1.
00%.
What
isi
tsquar
ter
lyv
olat
il
it
y(assume90day
s)?

1)90%.

2)9.
49%.

3)1%.

4)94.
9%.

(
Mar
ks-
1.00)
Er
aseAnswer

Q33.
Mr.
A,whopar
ti
cipat
esi
ntheopt
ionsmar
ket
,hadt
hef
oll
owi
ngi
nfor
mat
ionwi
thhi
mon5t
hAugust
,2010.
'
X'I
ndust
ri
eswast
radi
ngat
Rs.
560.
00.
Theot
her
det
ail
swer
e:

Call
opt
ion-Sept30-
str
ikepr
ice590-
premi
umRs.
120
Putopt
ion-
Sept30-st
ri
kepri
ce540-premi
umRs.
90
Theuni
tlot
sizei
s50.

Mr
.Xdeci
dest
obuy
aput
opt
ionat
thest
ri
kepr
iceof
540andon30t
hSept
,2010;
'
X'I
ndust
ri
escl
osesat
Rs.
610.
00.
What
ist
hepot
ent
ial
l
osst
oMr
.A?

1)Unl
i
mit
ed

2)Li
mit
edt
othepr
emi
um pai
d

3)Thedi
ff
erencebet
weent
hest
ri
kepr
iceandt
hecl
osi
ngpr
ice

4)Thest
ri
kepr
ice

(
Mar
ks-
1.00)
Er
aseAnswer

Q34.
Repoi
s.

1)Ani
nst
rumentofmonet
arypol
i
cy

2)Al
i
qui
dit
yadj
ust
mentf
aci
l
ity

3)Av
ail
abl
etoBanksandpr
imar
yDeal
ers

4)Al
loft
heabov
e

(
Mar
ks-
1.00)

h
t
tp:
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i
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sif
yit
est
.com/
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exam.
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12
7/
6/2017 TheI
ndi
anI
nst
it
uteofBanki
ng&Fi
nance
Er
aseAnswer

Q35.
Thebenef
it
accr
uingt
otr
ader
s,whopl
ayi
ndi
ff
erent
mar
ket
ssi
mul
taneousl
y,
becausemar
ket
sar
eimper
fect
,i
scal
l
ed
.

1)Tr
adi
ng

2)Deal
i
ng

3)Ar
bit
rage

4)Specul
ati
on

(
Mar
ks-
1.00)
Er
aseAnswer

Q36.
Themi
dof
fi
ceof
treasur
yhasbeencr
eat
edt
o.

1)Under
takedeal
i
ngf
unct
ion

2)Pr
ovi
demanagementI
nfor
mat
ion

3)Ver
if
ydeal
sconcl
udedbydeal
ers

4)Submi
tper
iodi
cal
ret
urnst
oshar
ehol
der
s

(
Mar
ks-
1.00)
Er
aseAnswer

Q37.
Thepol
i
cywhi
chst
atesabout
thespr
eadst
ober
etai
nedby
Treasur
y,segr
egat
ionof
admi
nist
rat
ivecost
,al
l
ocat
ionof
cost
sisknownas.

1)Composi
tepol
i
cy

2)ALM pol
i
cy

3)I
nvest
mentpol
i
cy

4)Tr
ansf
erpr
ici
ngpol
i
cy

(
Mar
ks-
1.00)
Er
aseAnswer

Q38.
Stat
utor
yLi
qui
dit
yRat
iocanbemai
ntai
nedi
nthef
ormsof
.

1)Cashbal
ancesi
nCRRwi
thRBI

2)Gol
dandsi
l
ver

3)Appr
ovedsecur
it
iesasperRBInor
ms

4)Al
loft
heabov
e

(
Mar
ks-
1.00)
Er
aseAnswer

Q39.
INFI
NEThasbeendev
elopedby
.

1)TCS

2)I
DRBT

3)CCI
L

4)WI
PRO

(
Mar
ks-
1.00)
Er
aseAnswer

Q40.TheBankhasainter
estrat
esensit
iverat
ioof1.
60,asagai
nsti
tstar
getedr
ati
oof1.25wit
hrat
esensit
iveassetsex
ceedi
ngratesensit
ivel
iabi
li
ti
esi
nthet
imeblocof2to5years-
mainlyonaccountof
it
srecentf
ocusonex pandingi
tsshort
ter
mdeposi t
basewit
haveragematuri
tynot
exceeding12months.
Thepr i
cingofasset
sandli
abi
li
ti
esi
sgener all
yl
inkedto
G-
secyi
elds,asper
it
sALMPol i
cy.Assumingthedurat
ionofit
sasset
sisabout3y
earsandthei
nter
estr
ateoutl
ookisoneofi
ncr
easingrat
es,bankwouldli
ket
oworkoutthefol
lowingalt
e
rnat
ives.

Al
ter
nat
ivel
y,
thebankwhi
l
emobi
l
izi
ngaddi
ti
onal
resour
ces,
may
consi
der
.

1)I
ssueofCPsatcompet
it
iver
ates

2)I
ssueofbondswi
thmi
nimum 3y
earmat
uri
ty

3)Capi
tal
i
zer
eser
ves

4)Seekast
and-
bycr
edi
tli
nef
rom ot
herbanks

(
Mar
ks-
1.00)
Er
aseAnswer

Q41.
Thef
unct
ionof
Treasur
yincl
udesmanagi
ng.
..
..

1)Onl
yALM Book

2)Onl
yMer
chantBook

3)Onl
yTr
adi
ngBook

ht
tp:
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i
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sif
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i
ne_
exam.
php 7/
12
7/
6/2017 TheI
ndi
anI
nst
it
uteofBanki
ng&Fi
nance

4)Al
loft
heabov
e

(
Mar
ks-
1.00)
Er
aseAnswer

Q42.
Int
egr
atedt
reasur
yhascont
ri
but
edt
ohi
gher
prof
it
sfor
banks.
Someof
ther
easonsf
orhi
ghpr
ofi
tsar
e:(
i)
Treasur
yoper
ati
onsr
equi
rel
i
ttl
ecapi
tal
all

ocati
on
(i
i
)Treasur
yoperati
onsarehi
ghlyl
ever
aged
(i
i
i)Tr
easurytr
adesi
nbroadspreads
(i
v)Tr
easuryoper
ati
onsearnhighi
ncomefr
omi
nter
est
onl
oansandadv
ances

Chooset
hecor
rect
opt
ionf
romamongt
hef
oll
owi
ng:

1)(
i)
,(i
i
)onl
y

2)(
i)
,(i
i
),(
iv)onl
y

3)(
ii
),(
ii
i)onl
y

4)(
ii
),(
ii
i)
,(i
v)onl
y

(
Mar
ks-
1.00)
Er
aseAnswer

Q43.
Treasur
ybi
l
lsar
e.

1)I
ssuedbyGov
ernmentofI
ndi
athr
oughReser
veBankofI
ndi
a

2)I
ssuedbyReser
veBankofI
ndi
athr
oughGov
ernmentofI
ndi
a

3)I
ssuedbyGov
ernmentofI
ndi
athr
oughSt
ateBankofI
ndi
a

4)I
ssuedbyGov
ernmentofI
ndi
athr
oughSt
ateGov
ernment
s

(
Mar
ks-
1.00)
Er
aseAnswer

Q44.
Secur
it
izat
ionexposur
esdoesnot
incl
ude-
--
-

1)Cr
edi
tenhancement
s

2)Secondar
yloant
radi
ng

3)Mor
tgage-
backedsecur
it
ies

4)Li
qui
dit
yfaci
l
iti
es

(
Mar
ks-
1.00)
Er
aseAnswer

Q45.TheBankhasainter
estrat
esensit
iverat
ioof1.
60,asagai
nsti
tstar
getedr
ati
oof1.25wit
hrat
esensit
iveassetsex
ceedi
ngratesensit
ivel
iabi
li
ti
esi
nthet
imeblocof2to5years-
mainlyonaccountof
it
srecentf
ocusonex pandingi
tsshort
ter
mdeposi t
basewit
haveragematuri
tynot
exceeding12months.
Thepr i
cingofasset
sandli
abi
li
ti
esi
sgener all
yl
inkedto
G-
secyi
elds,asper
it
sALMPol i
cy.Assumingthedurat
ionofit
sasset
sisabout3y
earsandthei
nter
estr
ateoutl
ookisoneofi
ncr
easingrat
es,bankwouldli
ket
oworkoutthefol
lowingalt
e
rnat
ives.

Wi
thout
usi
ngder
ivat
ives,
thebankmay
alsomodi
fyi
tspol
i
cyandadv
isebr
anches.

1)Nott
oacceptdeposi
tswi
thmat
uri
tybey
ond1y
ear

2)Toencour
aget
radef
inanceandshor
tter
m adv
ances

3)Toi
ncr
easenon-
fundbusi
ness

4)Toi
ncr
easehome-
loanpor
tfol
i
o

(
Mar
ks-
1.00)
Er
aseAnswer

Q46.

AKBBankLt
d.i
sani
nter
nat
ional
Bank.
Fol
l
owi
ngar
esomei
temsf
romt
hei
rf
inanci
alst
atement
sfor
they
ear
endedMar
ch,
2013.
Shar
eCapi
tal
USD20MI
OSwapsUSD1MI
O

Sundr
yDebt
orsUSD03MI
OInv
est
ment
sUSD50MI
OMachi
ner
yUSD45MI
OCashUSD75,
000

Sundr
yCr
edi
tor
sUSD01MI
OInt
erest
rat
econt
ract
USD1MI
OL/
CIssuedUSD40MI
O

For
war
dCont
ract
sUSD25MI
O

BGsI
ssuedUSD5MI
O

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tp:
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i
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i
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php 8/
12
7/
6/2017 TheI
ndi
anI
nst
it
uteofBanki
ng&Fi
nance

Whi
choneof
thef
oll
owi
ngi
snot
an'
Off
-Bal
anceSheet
'i
tem?

1)BankGuar
ant
ee

2)For
war
dCont
ract

3)Swaps

4)I
nvest
ment
s

(
Mar
ks-
1.00)
Er
aseAnswer

Q47.

Ason31/
03/
2014,
ABCBankLt
d,wi
thpanI
ndi
apr
esence,
hadi
tsbr
oadmat
uri
typr
ofi
l
eof
Asset
sandLi
abi
l
iti
esasunder
:Rsi
ncr
ore

Li
abi
l
iti
esAsset
supt
o1y

ear
200100ov
er1y
r—upt
o3y
rs150200ov
er3y
r—upt
o5y

r
s100150

Whi
chof
thef
oll
owi
ngi
snot
anext
ernal
reasonf
orf
urt
her
incr
easi
ngt
hel
i
qui
dit
yri
skof
ABCBankLt
d?

1)Geogr
aphi
cal
reasons

2)Sy
stemi
creasons

3)Adv
ersef
eat
uresr
elat
ingt
oinst
rument
susedi
nit
sbor
rowi
ngs

4)I
nadequat
esetupf
orcr
edi
tri
skassessment

(
Mar
ks-
1.00)
Er
aseAnswer

Q48.

Thef
oll
owi
ngdat
ainr
espect
ofABCBankf
ort
hey
ear
sended31st
Mar
ch,
2010and31st
Mar
ch,
2011i
sgi
ven.

Mar Mar
'11
'10

Capi
tal
andLi
abi
l
iti
es:
Rs.
Cror
eRs.
Cror
e

Equi
tyShar
eCapi
tal
634.
88634.
88

Reser
ves57,
312.
8265,
314.
32

Deposi
ts742,
073.
138,
04,
116.
23

Bor
rowi
ngs53,
713.
681,
03,
011.
60

Ot
her
Liabi
l
iti
es&Pr
ovi
sions1,
10,
697.
5780,
336.
70

Tot
alLi
abi
l
iti
es9,
64,
432.
0810,
53,
413.
73

Asset
s:

Cash&Bal
anceswi
thRBI
55,
546.
1761,
290.
87

Bal
ancewi
thBanks,
Money
atCal
l
48,
857.
6334,
892.
98

Adv
ances5,
42,
503.
20?
Inv
est
ment
s2,
75,
953.
962,
85,
790.
07

Gr
ossBl
ock10,
403.
0611,
831.
63

Accumul
atedDepr
eci
ati
on6,
828.
657,
713.
90

Net
Block3,
574.
414,
117.
73

Capi
tal
Wor
kInPr
ogr
ess263.
44295.
18

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tp:
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i
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onl
i
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exam.
php 9/
12
7/
6/2017 TheI
ndi
anI
nst
it
uteofBanki
ng&Fi
nance
Ot
her
Asset
s37,
733.
2735,
112.
76

Tot
alAsset
s9,
64,
432.
0810,
53,
413.
74

Thenet
wor
thf
ort
hey
ear
ended31st
Mar
ch,
2011i
sRs.

1)48,
956.
50

2)65,
949.
20

3)55,
767.
80

4)Noneoft
heabov
e

(
Mar
ks-
1.00)
Er
aseAnswer

Q49.
Gener
alpr
ovi
si
onswi
l
lbeadmi
tt
edupt
oamax
imumof
ofRWAs.

1)1%

2)2.
5%

3)1.
25%

4)1.
50%

(
Mar
ks-
1.00)
Er
aseAnswer

Q50.
Asset
Classi
fi
cat
ionshoul
dbe.

1)Faci
l
itywi
se

2)Bor
rowerwi
seandf
aci
l
itywi
se

3)Bor
rowerwi
se

4)wi
l
lvar
ydependi
ngupont
hecase

(
Mar
ks-
1.00)
Er
aseAnswer

Q51.
Whi
chof
thef
oll
owi
ngi
snot
ast
epunder
ALM?

1)Rev
iewi
nter
estr
atest
ruct
ureandcompar
ethesamet
othei
nter
est
/pr
oductpr
ici
ngofbot
hasset
sandl
i
abi
l
iti
es

2)Exami
net
heot
herl
i
abi
l
itypor
tfol
i
oint
hel
i
ghtoff
orei
gnexchanger
iskandl
i
qui
dit
yri
sk

3)Exami
necr
edi
tri
skandcont
ingencyr
iskt
hatmayor
igi
nat
eduet
orat
efl
uct
uat
ions

4)Rev
iewact
ual
per
for
manceagai
nstpr
oject
ionsmadeandanal
yser
easonsf
oranyef
fectont
hespr
eads.

(
Mar
ks-
1.00)
Er
aseAnswer

Q52.

AKBBankLt
d.i
sani
nter
nat
ional
Bank.
Fol
l
owi
ngar
esomei
temsf
romt
hei
rf
inanci
alst
atement
sfor
they
ear
endedMar
ch,
2013.
Shar
eCapi
tal
USD20MI
OSwapsUSD1MI
O

Sundr
yDebt
orsUSD03MI
OInv
est
ment
sUSD50MI
OMachi
ner
yUSD45MI
OCashUSD75,
000

Sundr
yCr
edi
tor
sUSD01MI
OInt
erest
rat
econt
ract
USD1MI
OL/
CIssuedUSD40MI
O

For
war
dCont
ract
sUSD25MI
OBGsI
ssuedUS

D5MI
O

Under
whi
chheadof
thei
rBal
anceSheet
,woul
dSundr
ydebt
orsbecl
assi
fi
ed?

1)Cur
rentLi
abi
l
ity

2)Ter
m Li
abi
l
ity

3)Of
f-
Bal
anceSheetI
tem

4)Cur
rentAsset
s

(
Mar
ks-
1.00)

t
tp:
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i
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i
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exam.
php 10/
12
7/
6/2017 TheI
ndi
anI
nst
it
uteofBanki
ng&Fi
nance
Er
aseAnswer

Q53.
Whi
chof
thef
oll
owi
ngst
atement
(s)
regar
dingI
CAAPdocument
,i
ncl
udedunder
Pil
l
arI
Ii
scor
rect
?

i
)Capi
taladequacyassessmentandproj
ect i
onsof
capi
tal
requi
rement
for
ensui
ngy
ear
ii
)Cov
eral
l
ther
isksnot
ful
l
ycapt
ur
edbytheminimumcapi t
alr
ati
ounderPil
larI
i
ii
)Pl
ansandstrategi
esformeet
ingcapit
alrequi
rement
approvedby
Board

Chooset
hecor
rect
opt
ionf
romamongt
hef
oll
owi
ng:

1)(
i)onl
y.

2)(
ii
)and(
ii
i)onl
y.

3)(
i)and(
ii
i)onl
y.

4)(
i)
,(i
i
)and(
ii
i)
.

(
Mar
ks-
1.00)
Er
aseAnswer

Q54.
ri
skoccur
swhenasset
sar
esol
dbef
oret
hei
rmat
uri
tydat
es.

1)Rei
nvest
ment

2)Gap

3)Pr
ice

4)Yi
eldCur
ve

(
Mar
ks-
1.00)
Er
aseAnswer

Q55.

AnamountofRs.
10,
000i
sav
ail
abl
ewi
thBankAf
ori
nvest
ment
.Thev
ari
ousi
nvest
ment
opt
ionsbei
ngconsi
der
edby
theBankal
ongwi
tht
heYi
eldandRi
skwei
ght
shav
ebeengi
v
enasunder
:

Opt
ion1Opt
ion2Opt
ion3Opt
ion4

I
nvestmenti
nGovt.
Secur
it
ies- 10,
0004,
0003,
0003,
000
Yi
eld7%andr
iskwei
ght0%

Lendingt
oAAAratedCustomers- -
6,0003,
0003,
000
Yiel
d8%p.a.
andri
skweight20%

Lendingt
oAArat
edCustomers- -
-4,
0002,
000
Yiel
d10%p.a.
andri
skweight
50%

Lendingt
oArat
edCustomer
s- -
--
2,000
Yiel
d12%p.a.
andr
iskwei
ght
100%

Tot
al10,
00010,
00010,
00010,
000

What
ist
heamount
ofr
isk-
wei
ght
edasset
sfor
inv
est
ment
under
Opt
ion3?

1)Rs.2,
100

2)Rs.2,
300

3)Rs.2,
600

4)Rs.2,
700

(
Mar
ks-
1.00)
Er
aseAnswer

Q56.
Pil
l
ar3pr
escr
ibesqual
i
tat
iveandquant
it
ati
vedi
scl
osur
esunder
areas.

1)Ten

2)Twel
ve

3)Thi
rt
een

4)Ni
ne

(
Mar
ks-
1.00)
Er
aseAnswer

Q57.
Whi
choneof
thef
oll
owi
ngi
sthesecondpi
l
lar
under
Basel
II
?
t
tp:
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i
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i
ne_
exam.
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12
1)Mi
nimum Capi
tal
Requi
rement
h
7/
6/2017 TheI
ndi
anI
nst
it
uteofBanki
ng&Fi
nance
1)Mi
nimum Capi
tal
Requi
rement

2)Super
visor
yRev
iewPr
ocess

3)Mar
ketRev
iew

4)Mar
ketDi
sci
pli
ne

(
Mar
ks-
1.00)
Er
aseAnswer

Q58.
Ther
iskt
hat
int
erest
rat
esof
dif
fer
ent
asset
sandl
i
abi
l
iti
esmay
changei
ndi
ff
erent
magni
tudesi
scal
l
edr
isk.

1)Gap

2)Basi
s

3)Pr
ice

4)Noneoft
heabov
e

(
Mar
ks-
1.00)
Er
aseAnswer

Q59.
ri
skoccur
swhenasset
sar
esol
dbef
oret
hei
rmat
uri
tydat
es.

1)Basi
s

2)Asset
s

3)Opt
ion

4)Pr
ice

(
Mar
ks-
1.00)
Er
aseAnswer

Q60.
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