Difficulty Question

Chapter No.
Level No.
Simple 8 1
Simple 3 2
Simple 1 3
Simple 3 4
Moderate 1 5
Moderate 2 6
Moderate 7 7
Moderate 3 8
Moderate 6 9
Moderate 3 10
Moderate 1 11
Moderate 2 12
Moderate 2 13
Moderate 4 14
Moderate 7 15
Moderate 3 16
Moderate 4 17
Moderate 4 18
Moderate 4 19
Moderate 4 20
Moderate 7 21
Difficult 7 22
Difficult 5 23
Difficult 7 24
Difficult 7 25
 Question
What is NEFT?
CCIL was set up in April, 2001 to provide guaranteed clearing and settlement functions for transactions in Money, G-
The treasurer of a bank is responsible for
What is a REPO rate?
Which of these is not a function of treasurer?
In the treasury activities, risk arising due to system deficiency, non-compliance with laid down procedures, fraudulen
Which of the below is not the type of interest on Bonds?
What are the two reserve requirements that treasury has to comply with?
Integrated Treasury in Banking set up refers to
The following are examples of derivatives which are treasury products
Treasury management is that department of bank that
Cost Center is
Profit Center of a bank
FEDAI stands for
Bond duration is
Current Account Deficit is
Money Market deals with
In fixed exchange rate system
In floating exchange rate system
Interest rate changes by central bank is
Zero coupon bond is
The value of bond carrying regular interest payments is
The relationship between bond prices and interest rates is
The bonds issued by corporates and exposed to default risk is
If the coupon rate is equal to current interest rate
 Option (a)
National Electronic Funds Transfer
Clearing Corporation of India Ltd
Preventing employee turnover
It is the rate at which RBI lends money to commercial banks in case of shortfall
Manage Liquidity of the bank
Market risk
Fixed rate
PLR and SLR
Computerisation of all bank branches
Tier II bonds issued by bank
Manages human resources of the bank
A department that does not directly add to profits of a bank but still incurs costs to the bank.
Directly adds to the profit of a bank
Foreign Exchange Dealers Association of India
It measures sensitivity of the bond price to changes in interest rates
Value of goods and services a country exports exceeds value of goods and services it makes domestically
Trading of short-term instruments
Government or Central bank intervenes to maintain the exchange rate within a narrow band
The exchange rate is determined by demand and supply of currency vs other currencies in foreign exchange market
Monetary Policy Tool
Bond with zero default risk
Discounted value of its cash flows both face value and interest payments
Directly related
Corporate Bonds
Bond will be sold at Par
 Option (b)
National Electronic Funds Treasury
Consolidated Corporation of India Ltd.
Reserve management and investments
It is the rate at which commercial banks lend money to central bank
Predict inflows and outflows of cash in a bank
Credit risk
Floating (variable) rate
CRR and SLR
Computerisation of all treasury operations
Floating rate bonds
Manages transportation for the bank
A department that does not directly add to costs of a bank but still incurs prof
Does not directly add to profit of the bank
Foreign Enterprise Dealers Association of India
It measures time period of the bond
Value of goods and services a country imports exceeds value of goods and ser
Trading of long-term instruments
Government or Central bank does not intervene to maintain the exchange rat
The central government or central bank determines the exchange rate of a cu
Fiscal Policy Tool
Bond that pays no interest
Discounted value of its face value only
Inversely related
Treasury Bonds
Bond will be sold at discount
 Option (c)
National Electronic Funds Trade
Combined Corporation of India Ltd.
Appointing board of directors
It is the rate at which commercial banks lend money to traders
Manage Liquidity Risk of the Bank
Operational risk
Cumulative Rate
Repo and CRR
Centralisation of all back office operations of forex branches
External commercial borrowing
Manages funds of the bank
Manage People of the Bank
Manage People of the Bank
Foreign Enterpriser Dealers Association of India
Bond maturity period called by a different name.
Value of goods and services a country produces domestically.
Manage People of the Bank
Government or Central bank intervenes to maintain bank rate within a narrow band.
Government or Central bank intervenes to maintain bank rate within a narrow band
Open market Operations
There is no bond called zero coupon bonds
Discounted value of its coupons only
As decided by RBI
Municipal Bonds
Bond will be sold at premium
 Option (d)
National Electronic Funds Transaction
Counter Corporation of India Ltda
Taking care of bank's administration
It is the rate at which commercial banks lend money to borrowers
Manage Logistics of the Bank
Liquidity risk
Discounted Rate
VaR and CRR
Integration of money market, securities market and foreign exchange operations
IRS, SWAPS, FUTURES and OPTIONS
Manage Organization Structure of the Bank
Manage Logistics of the Bank
Manage Capital Structure of the Bank.
Foreign Entrepreneur Dealers Association of India
Bond duration is same as time duration,
Value of goods and services a country imports from outside
Manage Capital Structure of the Bank
Government or Central bank intervenes to maintain the repo rate within a narrow band.
Government or Central bank intervenes to maintain the repo rate within a narrow band.
Emergency action
There is no bond called zero coupon bonds it is a coupon zero bond.
As decided by RBI
Can be both inverse and directly related from period to period.
Yankee Bonds
It will have no effect on bond price.
Correct
Answer
a
a
b
a
d
c
d
b
d
d
c
a
a
a
a
b
a
a
a
a
b
a
b
b
a