1) Mr.

ram got various commodities with him now ,he require money so he want to sale his commodities on 28 jun is tuesday , he
surrendered his all share, considering 29 jun is holiday.

Qtn 1 on ready or cash settlement fund will transfer on...............

Qtn 2 on tom settlement fund will transfer on.................
Qtn 3 on spot settlement fund will trans fer on..............
Qtn 4 on forward settlement fund will trans fer on..........
options are
(a) 28 jun (b) 29 jun (c) 30 Jun (d) 01 jul (e) any date after spot date

qtn bfm
2)some decisions in a company in semi structured for a medium term with moderate resources commitment and taken at middle level.
1) oprative
2) Administrative 
3) stratretigic
4) middle level
.ans.. is 2)
3) if ADR is registered with SEC the financial statement of the company needs to be prepared in accordance with....
a) NASDAQ
b) SEBI
c) SEC
d) US GAAP
.
d) US GAAP 

5) To trigger the limit or say maximum loss limit for adverse movement of rates. (may 2013)
a) limited loss 
b) stop loss limit
c) bid limited
d) call optinon

QTN 6) Who prescribes guidelines and rules of the game in forex market operations, merchant rates, quotations etc. (CAIIB MAY 2013)
a) RBI
 SEBI
C) FEDAI
D) AMFI
ANS: C) FEDAI
7) If a person abroad want to send money speedily he will use (may 2013)
1)SWIFT2) RTGS 3) NEFT 4)UNION MONEY TRANSFER
ans: 1
8) how may diamond dollar accounts an importer can maintain 
a) 1 b) 5 c) 10 d) no limit
ans: b) 5
9) What is the nodal agency of EMF –(export marketing fund) CAIIB MAY 2013
a) ECGC
b) RBI-FED
c) RBI
d) EXIM BANK
.ANS : D) EXIM BANK

10.) Mr. Alex has entered in forward contract with Religare securities for a specified period under FEDAI rules on certain date, select
correct period of contract.
a) 01-30 JAN 2014
b) 01-31 Oct 2014
c) 17 Jan - 17 Feb 2014
d) 17 Sep - 15 Sep 2013
.Ans : b
(clue forward contract is done for a one month period as per FADAI rule)
11. Remittance of prize money/sponsorship for sports events abroad can be done with out prior permission of RBI/GOI is..
A) USD 10000
 USD 25000
C) USD 100000
D) USD 50000
ANS: C USD 100000

12) All assets and liabilities in banking book are normally held until matuarity and system of accounting followed is
a) on going/ Going concern accounting sys
b) Accural system of accounting
c) Double entry accounting system
D) single entry accounting
ans ; b

13) IRR refers to potential adverse impact on……………………….caused by changes in market interst rate.

a) Net interst income

b) Net Interst Margin

C) Market Value of Equity

D) All of these

Ans: D0 All of these

14) A regulatory framework, on a cross country basis for reconcilling risk control and yet maintaining a level playing field for fair
competition become necessary.this was ….

a) RBI

b) Exim BANK

c) FADAI

d) BCBS

ans: D

15) The risk settlement that arises from time difference came to known as..

a) Exchange risk

B) Herstatt Risk

c) Value risk

d) Time risk

ans: b

16) After amendment in BCBS in 1996 bank are allowed to use………………………… for measuring market risk.

a) building block

b) back Testing

c) CIBIL

d) proprietary in-house models

ans:d

Q The participants in the derivatives market generally exchange the following agreement...

a) IFEMA
b) ICON
c) ISDA
d) a stamped agreement devised by respective banks

Ans........ C) ISDA
17) Bank Assets were classified into five categories according to credit risk carring some risk weight based on counterparty risk
bank debt is weighted at

a) 0%

b) 10%

c) 20%

d) 100%

Ans: c) 20%

18)) one of the belowmentions agency is not a international credit agency ?

a) FITCH

b) ICRA

c) Standard and poor

d) moody,s

ans : b) ICRA

19) The ultimate responsibility for designing and implementation of ICAAP lies with

1) banks,s board of directors

2) RBI

3) FEDAI

4) bcbg

Ans : a)

20) Under Standard Approach retail and SME exposures attract a uniform Risk weightage of

a)75%.

b) 50%

c)85%

d)100%

ans : a) 75%

21) Under Standardized method within each business line gross income is broad indicator for …………………………….

a)capital Risk exposure

b)Operational Risk exposure.

c)Credit Risk mitigation

d)Financial Risk Exposure

Ans; b)

22) Ram purchase bonds of BPVs Of A,B are Rs 200 and Rs 600 respectively now he want to reduce his portfolio to Rs 300
so what will be the BPV of the third bond ,C,…

a) Rs 200

B)Rs 100
C)Rs 300

d) Rs 400

Ans : b)

23) The instrument of credit risk management (CRM) at transaction level have some process which one of them is not a process
of CRM?

a) Credit appraisal process

B) Financial Apprasial process

C) Risk Analysis process

D) Monitoring process

AND: B)Financial Apprasal process ( correct is Credit Audit and Loan Review

24)interest factor is the basic factor in arriving at the forward rate, in a ………….(MAY 2013)
A) forward market
 perfect market
c) Derivates market
d) Open market..
ans:B)perfect market

25) Credit derivates are generally over the counter (OTC) instruments, to avoid such instruments,…………………………Has come out
with Standardised format of documents evidencing such transactions.

A) BCBG

b) FEDAI

c) RBI

d)ISDA

ans: d) ISDA- (international Swaps and Derivatives Association)

26) ISDA has defined credit events in how many few events they are maninly………….events.

a) 5

b)4

c)6

b)3

ans: c) 6

28) calculate standard Deviation for the following cash flow for a business A

Cashflow yr1 yr 2 yr3 yr4 yr5

Business A 10 03 04 08 11

a) 12.7

b) 7.2
c) 58.8
d) 3.56
Ans: d)

29) If spot GBP is 1.6000, and 1 month forward as 1.6050, then GBP is… (MAY2013)
a) compounded

b) simple interest

c) IRR

d) none of this

ans: a)

30)Risk management system must be developed to provide information and analytical tools to support the enterprise Risk
management functions comes under which process of IRM.

a) Strategy

B) organizationties.

c) process

d) system

ans: D system

31) Integrated Risk management is properly implemented it is helpful for all except one given below find out the odd one.

a)Aligns the strategic aspect of risk with day to day operational activity.

b)facilitates greater transparency for investors and regulation.

C)Enhances revenue risk earnings growth.

d) Controls upsides risk potential

ans: d

32) .  Credit Risk includes except one

A) Stress tests under IRB Approach

B) Definition of default

C) Recession Risk

D) Credit concentration Risk.

 Ans :c ( correct option is residual risk)

33) Treasury may trade in currencies ,securities and other financial instruments including derivatives , in order to contribute
to bank profits ,comes under which role of a treasury.

a) Risk management

b) proprietary positions

c) Liqudity management

d) Global cash management

Ans : b)

34) Which of the following does not comes under Direct investment activity.

a) Foreign company and foreign institutions investors investing in long term funds in domestic companies, new projects.

b) Foreign company and foreign institutions investors investing in long term funds in business process outsourcing.

c) foreign investors investing in domestic equity and debt markets.

d) Foreign company and foreign institutions investors investing in long term funds in manufacturing facilities.
 Ans: c ( option comes under portfolio Investment)

35) RBI has permitted banks to borrow and invest through their overseas correspondents, in foreign currency subject to a
ceiling of……..

a) 100% of their tier-I capital or USD 10 Million, which ever amount is higher.

b) 250% of their tier-I capital or USD 10 Million, which ever amount is higher

c) 50% of their tier-II capital or USD 10 Million, which ever amount is higher.

d) 50% of their tier-I capital or USD 10 Million, which ever amount is higher.

Ans: d)

36) Treasury is manage by a few specialist staff , engaged in high value transactions per transaction size generally not being
below…………

a) RS 10 million

b) Rs 50 Million

c) Rs 100 million

c) Rs 500 millions

Ans: b

37) treasury is mainly manage by different department dealing in administrative in nature except one

a) back office

b) investment department

c) front office

d) middle office

Ans : b) (it deals in primary markets)

38) By using …………………….., forward rate agreements between 2 currencies, using cross currency or financial futures. Interest Rate
Risk is mitigated

a) Interest rate SWAPS

b) SPOT Trades
c) Future Rates
d) D)Convertible Bonds
ANS: a)

39) Forward rate is calculated as……..

a) fr= spot + discount- premium

b) Forward Rate = spot rate+ preium or – discoumt

c) fr= preium-disount + spot rate

d) fr= future rate + preium or – discount

ans:b
40) coupan rate of a bond is 4.05% and maturing after 03 years and prevailing market value is 108.2 find the current yield.

a) 6.13

b)3.74

c)4.38

d) none of this

ans:B

41. In a perfect market, with no restriction on finance and trade, the ……………… is the basic factor in arriving at the forward rate.

A) Free trading

b) future factor

c) forward factor

d) interest factor

ans; d

42.Which of the following is not a motive for the companies to hold cash?
a) Transaction motive
b) Precautionary motive
c) Lack of proper synchronization between cash inflows and outflows
d) Capital investments
ans: (d)

43. VaR menas:

a) Valume of Business at Risk
b) Value at Risk
c) Volume on Risk
d) Value as Risk
ans: (b)

44. In an inflationary trend, the pricing of the bank products are:

a) Decreasing trend
b) Constant
c) Increasing trend
d) No relevance

ans:(c)

45. Credit Risk Assessment of the borrowal units is for:

a) Assessing the repayment capacity
b) To fix the pricing of the product
c) To review the units performance
d) None of the above

ans: (b)
46. Pricing is equals to:
a) Cost of the product
b) Break Even Point of the firm
c) Function of Risk rating
d) All of the above

ans: (c)

47. If market quotes USD/INR as 43.61/63, at what rate can you buy USD
at the given quote:
(a) 43.61 (b) 43.62 (c) 43.63 (d) None of the above.

Ans: (c)

48. A correspondent in Japan wants to fund his Vostro account for Rs 10.00
million. At USD/INR at 63.56/57 and JPY at 109.60/70, how much JPY should
the correspondent pay into your Nostro account with him, assuming no margins
are loaded:

(a) 91157.70 (b) 251636 (c) 229515 (d) 251762

Ans:(d

49 NET Interest income is

a) Interest earned on advances
b) Interest earned on investments
c) Total interest earned on advances and investment
d) Difference between interest earned and interest paid

ans:(d)
50. Interest rate risk is a type of
a) Credit risk
b) Market risk
c) Operational risk
d) All the above

ans :(b)

51. European option can be exercised on any day at the option of the buyer
on or before the expiry of the option.
a) True B) False

ans(b)
52. 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%
b) 15.8%
c) 158%
d) 0.10

ans (a)
53. The June 1999 Basle 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
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

Ans:d

54 Which of the following statement is correct?

(a) Foreign Exchange markets are localized markets.
(b) Foreign Exchange markets operate within a country’s time zone.
(c) Foreign Exchange markets are dynamic and round the clock markets.
(d) Foreign Exchange markets are used only for trade
related transactions.
Ans: (c)
55. Which of the following definitions is most correct?
UCPDC 500 is :
(a) Set of rules applicable to CC transactions
(b) Set of rule having 500 articles.
(c) Set of rules framed by ICC governing LC business globally .
(d) Set of universally applicable rules governing LC business

in India only.

Ans: (c)

Module D

--------------------------------------------------------------------------------------------------------56.------------------------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
c) Internal Rate of Return is less than cost of capital
d) Pay Back Period is greater than target period
Ans :b

57. 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

58. Indian Rupees market is an exchange of cash flow uses what type of swap in Indian market…….

a) Interest rate swap

b) Plain Vanilla swap

c)Quanto swap

d) Coupon swaps

ans: b

59.dentify from the following statements , one statement which is not concerning to market analysis-----

e) Production possibilities and constraints

f) Consumer behaviour, intentions, motivations, attitudes, preferences and requirements
g) Extent of competition and market share
h) Suitability of production process
Ans: d
60 From the following sources of finance , find out the free source of finance--

a) Equity Capital
b) Preference Capital
c) Retained Earnings
d) None of the above
Ans :d
 61. From the following information, compute the operating cycle of LMP Ltd.-No of days the raw material remain in stock is 60
days, suppliers credit available for 15 days, production time 15 days, finished goods inventory period 15 days, realization from
customers takes 25 days. The operating cycle therefore would be-----
a) 115 days
b) 100 days
c) 75 days
d) 85 days
62.If the fixed and variable cost at 50% production capacity are Rs.20000 and Rs.30000, respectively, the total cost at 70% capacity
will be-----
a) Rs.50000
b) Rs.62000
c) Rs.70000
d) Rs.58000
62Commercial paper , is an short term usance promissory note with fixed maturity period , issued by-----
a) Corporates & primary dealers
b) All India financial Institutions
c) (a) and (b) above
d) None of the above
63Surabhi Enterprises has given you the following information. The Re-order level 4000 units, minimum usage 300 units per week,
minimum lead time 2 weeks and re-ordering quantity 2000 units. The maximum stock level of Surabhi Enterprises should be-----
e) 1900 units
f) 5400 units
g) 2900 units
h) 4000 units

63 Conversion cost is calculated on the basis of following formula-----

a) Direct Material plus Direct Labour

b) Direct Material plus total overheads
c) Direct Labour plus direct overheads
d) Direct Material plus Administrative Cost
64 Under which method, the cost s are classified under fixed and variable cost and only variable costs are charged to products while
fixed cost are written off to Profit and Loss Account.

a. standard costing
b. Marginal Costing
c. Absorption costing
d. Job costing
65. The following statements are pertaining to Letter of Credit (LC). One of the statements is wrong. Choose the wrong statement

a. All letters of credit in India relating to the foreign trade are subject to provisions of "Uniform Customer and Practice for
Documentary Credit" (UCPDC).
b. The provisions of UCPDC have the status of law
c. The parties to a LC bind themselves to UCPDC provisions by specifically agreeing to do.
d. The UCPDC provisions help to arrive at unambiguous interpretation of terms used in LC
66) Which of the following is not part of working capital management?

(a) credit period to buyers

(b) proportion of current assets to be financed by long term debt
(c) dividend payout
(d) cash credit limit
67) In an operating cycle which of the following is not there

(a) acquisition of raw material

(b) acquisition of power
(c) acquisition of consumables
(d) conversion of raw material into work-in-progress
68) A low current assets ratio implies one of the following

(a) greater liquidity & lower risk

(b) poor liquidity & higher risk
(c) greater liquidity & greater risk
 (d) poor liquidity & lower risk
70) Factoring means

a) another entity buys your debts

b) another entity buys your credits
c) another entity loans an amount to you
d) none of the above

71) The formula for Economic Order Quantity(EOQ) is------ ( A= stock usage, C = cost of ordering, H= cost for holding stock per unit)

a) √2AC/H
b) √2ACH
c) √2CH/A
d) √AH/2C
24) If a buyer of goods gets a discount of 1.5% on a supply of Rs. 100 , if the amount is paid within 10 days where the normal
credit period is 50 days. What is the annualized benefit to the buyer if he pays within 10 days.

a) 12.75%
b) 13.69%
c) 14.21%
d) 13.65%

72)which of the following is not a risk involved in carrying inventory

e) obsolescence of the product

f) physical deterioration in the goods
g) price fluctuation in the product
h) increase in the price of raw material

73.Susheel Hightech Ltd. are selling designer furniture to top customers. There is no direct competition for their product. They are
negotiating a big order from one wealthy business magnate. While giving the quotation they should follow ------

a. conversions cost pricing method

b. market based pricing
c. marginal cost pricing
d. full cost pricing
74. Under cash budget system method, working capital is determined by -----
a) ascertaining level of current assets
b) ascertaining level of current liabilities
c) finding cash gap after taking in to account projected cash inflows and outflows
d) all of the above

75. IRR is calculated for one of the following purposes-----

a) Working capital finance
b) Pre-shipment finance
c) Project finance
d) Post shipment finance
76. Actual Sales minus Break Even Sales means-----

a) Profit on sales
b) Margin of safety sales
c) Loss on sales
d) Sales at which no profit or no loss is resulted
77.
In which of the situations would σ¯x = σ not be the correct formula for Sampling √n

a) infinite population

b) finite population with replacement

c) finite population without replacement

d) none of the above

 78
a) Removing the highest & lowest actual-to-moving average values when computing seasonal index for annual data reduces
extreme cyclical variations
b) secular trend
c) seasonal variations
d) all of these
a) 79The repetitive movement around a trend line in a 4- month period is best described by seasonal variation
b) secular trend
c) cyclical fluctuation
d) irregular variation
a) 80 the result of discarding extreme values before averaging is called ________ . residual mean
b) modified mean
c) extreme mean
d) none of the above
a) 81For a given year if an adjusted seasonal index is > 100 then for some other period it is < 100
b) > 100
c) = 100
d) none of the above
82 Present Value is defined as:

a) Future cash flows discounted to the present at an appropriate discount rate

b) Inverse of future cash flows
c) Present cash flow compounded into the future
d) None of the above
83 If the interest rate is 15%, what is the 2 year discount factor?

a) 0.7561
b) 0.8697
c) 1.3225
d) 0.658
84 An annuity is defined as

a) Equal cash flows at equal intervals of time forever

b) Equal cash flows at equal intervals of time for a specific period
c) Unequal cash flows at equal intervals of time forever
d) None of the above
a) 85 If the present value of the cash flow X is Rs.200, and the present value cash of the flow Y is Rs.150, than the present value of the
combined cash flow is: 200
b) 150
c) 50
d) 350
86 What is the present value annuity due factor of Re.1at a discount rate of 15% for 15 years?

87.If a standard error of a statistic is less than that of another then what is the former is said to be.
A. efficient
B. unbiased
C. consistent
D. sufficient
Ans: A
.
88. Overstating the return on premium bonds and understating the return on discount bonds is generally true when we use one of the
following as an indicator.
Which one is it ?
A. yield to maturity
B. current yield
C. rate of return
D. discount rate
Ans: B
.
89. Yield to maturity is that rate which makes the Present Value of the bond payments equal to its buying price. Which of the following
is it.?
A. coupon rate
B. discount rate
C. compound rate
D. rate of return
Ans: B

90 What is a survey of parliamentarians, seeking their opinion on revision of perks, called?

A. biased sampling
B. stratified sampling
C. random sampling
D. systematic sampling
Ans: A
.
91 How is stratified sampling carried out?
A. divide the population into homogenous groups and select equally but randomly.
B. assigning numbers to the population & selecting the numbers
C. sample is made up of elements which are say 10th from the previous selection
D. population divides itself into groups and we select equally but randomly from each
Ans: A
92 .Which variation does moving average method eliminate?
A. Seasonal
B. Cyclical
C. Irregular
D. secular trend
Ans: A

a) 5.8474
b) 8. 514
c) 8.13
d) 7.002