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CAIIB PAPER NO. II – BANK FINANCIAL MANAGEMENT 1. ‘Value Date’ means the date on which ……. a.

The customer is bound to pay money for the settled transaction b. A forward contract is booked c. Foreign exchange bought & sold have to be delivered and the price payable for them in local currency has to be paid d. The export bill is sent for collection 2. ‘Swap” means ………… a. A simultaneous sale of spot & purchase of forward currency OR purchase of spot & sale of forward currency b. Matching of sale & purchase transactions in such a way so as to maintain a square position c. Purchase transaction in the local market coupled with simultaneous sale at a foreign center d. None of these 3. Sale contracts wherein the price quoted includes all expenses relating to shipment, freight and insurance are known as ………. a. FOB c. CIF b. C&F d. Ex-Works

4. In terms of the provision contained in the UCP, it is correct to say that ……. a. Mere examination of the documents without giving of value does not constitute a negotiation b. The advising bank shall take reasonable care to check the apparent authenticity of the credit which it advises c. All credits must clearly indicate whether they are available by sight payment, by deferred payment, by acceptance or by negotiation d. All of these 5. ‘The financial arrangement whereby a Financial Institution in the exporting country provides credit to the importer for purchase of the goods’ is called… a. Supplier’s Credit c. Standby Letter of Credit 6. Interest Rate Risk is a type of……… a. Credit Risk c. Operational Risk b. Market Risk d. All of these b. Buyer’s Credit d. Letter of Credit

Assets are more than Liabilities Liabilities are more than Assets Rate Sensitive Assets are more than Rate Sensitive Liabilities Rate Sensitive Liabilities are more than Rate Sensitive Assets . Treasury Bill c.0 Lac 10. RVS = 1. Out of the followings.3 Lac... Sanctioned Limit = 5 Lac.6 Lac b. b. Which of the following statement is incorrect …………… a. c. Which of the following is not a Derivative Instrument……….04 Lac d. Substandard: 0. Currency Swap 9. Zero Risk investments fetch low returns Uncertain situations which cause loss constitute Financial risk All uncertain situations are Risky Higher Risk means ‘possibility oh high returns’ 8. Interest Rate Swap b. d. identified as NPA as on 31 st March 2010.2 Lac. Account has been. b. What will the classification & how much provision to be made as on 31 st March 2010…. Loss: 3. Doubtful – I: 2.7. a. for the first time. a. Options d. a. c. Substandard: 0. Balance Outstanding = Dr. d. what is indicative of ‘Negative Gap’….3 Lac c.