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Q - 1 .A bank has compiled following data for computing its CRAR as on 30 Sep 2015, Tier I capital 2500, Tier ii capital 2000, RWA for credit risk other than retail assets, (including 2000 crores of commercial real estate - 35,500, Exposure on retail assets - 8,700, Total eligible financial collaterals available for retail assets - 1200, Capital charge for general market risk net position - 450, Capital charge for specific risk - 190, Vertical adjustment - 15, Horizontal adjustment - 10, Total capital charge for options - 70, Gross income for the previous year - 495, Gross income for the year before previous year - 450, Gross income for 2nd year before previous year - 390, The capital required for credit risk at minimum required rate as per RBI is ......

Rs. 4585 Crores
Rs. 4383 Crores
Rs. 3701 Crores
Rs. 3508 Crores

Q - 2 .If an asset is highly sensitive to interest rate changes, and if we have a view that rates are likely to rise, what should we do?

enter into swap
enter into forward rate contract
enter into option contract
none of these

Q - 3 .In a perfect market, with no restriction on finance and trade, the ...... is the basic factor in arriving at the forward rate.

Fixed exchange rate
Interest factor
Interst rate differentials
Floating Exchange rate

Q - 4 .Counter party Risk is a type of ......

Interest Rate Risk
Market Risk
Credit Risk
Operational Risk

Q - 5 .A contract to deliver foreign currency on a future date at a fixed exchange rate is known as ......

forward contracts
futures
options
swaps

Q - 6 .Under Basel II, capital requirement under the accord is

The maximum capital that is required to be maintained
The minimum capital that is required to be maintained
The capital as specified by the regulatory authority is required to be maintained
None of the above

Q - 7 .The amount of insurance is not stated in the LC and ......

No insurance is required
It should be 110% of CIF
It's at the discretion of the beneficiary
Such LC is not valid as it gives rise to higher risk

Q - 8 .Indexed return on CP is used as a benchmark rate for _____ - term advances.

short
mid
long
all of these

Q - 9 .Repo is used for lending and borrowing money market funds, for terms extending from ...... to ......

1 day, 3 months
1 day, 6 months
1 day, 1 year
3 months, 1 year

Q - 10 .FEDAI requires banks to undertake profit / loss evaluation of forex positions at the end of each ______.

week
month
quarter
year

Q - 11 ....... is the possibility of a major bank failing and the resultant losses to counter parties reverberating into a banking crisis.

Sovereign Risk
Contrary risk
Legal risk
Systematic Risk

Q - 12 .Book value of shares of the company as on 31-03-2015

Rs. 10 cr
Rs. 30 cr
Rs. 40 cr
Rs. 80 cr

Q - 13 .In case of free currencies, forward premium or discount is exactly equal to the difference between ......

risk-free interest rate of the two currencies
inflation rate in both the countries
Spot rate and Tom rate
LIBOR and RBI reference rate

Q - 14 .When the strike price is equal to the spot price for the put option, the option is ......

at the money
out of money
in the money
any of the above

Q - 15 .Sight bills drawn under import letters of credit would be crystallized on the ...... day after the day of receipt if not yet pai

10 th
11 th
15 th
30 th

Q - 16 .Exchange for current account transaction with any person resident in ...... or ...... is prohibite

Pakistan, Sri Lanka
Nepal, Bhutan
China, Myanmar
None of these

Q - 17 .A bank has compiled following data for computing its CRAR as on 30 Sep 2015, Tier I capital 2500, Tier ii capital 2000, RWA for credit risk other than retail assets, (including 2000 crores of commercial real estate - 35,500, Exposure on retail assets - 8,700, Total eligible financial collaterals available for retail assets - 1200, Capital charge for general market risk net position - 450, Capital charge for specific risk - 190, Vertical adjustment - 15, Horizontal adjustment - 10, Total capital charge for options - 70, Gross income for the previous year - 495, Gross income for the year before previous year - 450, The CRAR of the bank as on 30th Sept 2015 is & &

0.07%
0.08%
0.09%
0.10%

Q - 18 .Buying and selling is performed under ......

Dealing room
Treasury administration
Risk management
Risk management

Q - 19 .Treasury essentially deals with ...... term funds flow.

short
mid
long
none of these

Q - 20 .Methods of assessment of Market risk are ... 1. Basis Point Value 2. Duration method

Only 1
Only 2
Both 1 and 2
None of these

Q - 21 ....... scheme is available for payments specified in foreign currency (US dollar, Pound Sterling, Euro , etc).

packing credit insurance
export finance gurantee
transfer gurantee
exchange fluctuation risk cover scheme

Q - 22 .In case of Domestic banks risk weights are assigned depends on?

CRAR
ECA
CSU
None

Q - 23 .Diversification occurs at ...... level. 1.obligor (borrower), 2.geographical, 3.trades, 4.industries

1
1 and 2
1, 2 and 3
1, 2, 3 and 4

Q - 24 .Failure of the counter party during the course of the settlement (due to time zone differences between the two currencies to be exchanged is the ...... risk.

Operational
Market
Settlement
Legal

Q - 25 .In the term oney (a money market instrument), funds borrowed by banks need to be repaid ......

on the same day
on the next working day
within a fortnight
within a year

Q - 26 .The gap between the buying rate and selling rate of a currency is called as ......

Dealer's Margin
Exchange Margin
Bid-Ask Spread
None of the above

Q - 27 .What is the risk capital if the traded value is of 200 million and volatility is 8%?

18.67 million
37.28 million
16.00 million
39.12 million

Q - 28 .If the strike price is same as the forward rate on the start date, the option is known to be ......

ATM (at the money)
ITM (in the money)
OTM (out of money)
none of these

Q - 29 .What is the maximum amount of foreign currency coins that a person resident in India can possess or retain?

USD 1000
USD 1500
USD 2000
no such limit

Q - 30 .Which of following instruments not eligible for Credit risk Mitigation?

Cash
Gold
Life Insurance
OTC

Q - 31 .Retirement of import bill for GBP 100,000.00 by TT Margin 0.20%, ignore cash discount/premium, GBP/USD 1.3965/75, USD/INR 55.16/18. Compute Rate for Customer.

76.548
76.6985
77.114
77.2682

Q - 32 .The most important and well pronounced risk in treasury is

Credit risk
Liquidity risk
Market risk
Embedded option risk

Q - 33 .Yield curve risk with respect to different maturity sectors, is a type of a ......

Liquidity risk
Interest rate risk
Basis risk
Market risk

Q - 34 .Which method of risk measurement uses deviation of a target variable due to unit movement of a single market parameter (like change in interest rate or exchange rate or stock prices)?

sensitivity
volatility
downside potential
all of these

Q - 35 .you have given the following information, in summary about the profit & loss a/c of the c bank, Interest earning Rs 120000 cr, Other income Rs 1800 cr, Profit on sale of fixed assets Rs 120 cr, Income from sale of third party products Rs 80 cr, On expenses side, Interest expenses are Rs 8200 cr, Operating expences Rs 3400 cr, Provisions of Rs 1600cr. Operating profit for the bank ......

Rs 800cr
4400 cr
2400 cr
2800 cr

Q - 36 .The uniform rules for bank to bank reimbursement have been framed by ......

RBI
World bank
ICC
FEDAI

Q - 37 .As per the Basel-II norms, total capital ratio should not be lower than...

0%
0%
0%
0%

Q - 38 .Select the incorrect statement(s):

Downside potential captures possible profits.
Downside potential captures possible losses.
Downside potential ignores profit potential.
Probability of occurrence is one of the two components of downside potential.

Q - 39 .which type of risk arises When banks have more earnings assets than paying liabilities ?

Liquidity
Operational
Interest rate
Market

Q - 40 .CBLO is a ...... market instrument issued by ......

foreign exchange, RBI
money, CCIL
securities, GOI
domesti SEBI

Q - 41 .When the strike price is below the spot price for the call option, the option is ......

at the money
out of money
in the money
any of the above

Q - 42 .Which of the following risks is also known as price risk?

market
liquidity
credit
country

Q - 43 .The Forward price of a currency against another can be worked out with the following factors:

Spot price of the currencies involved
The Interest rate differentials for the currencies.
The term i.e. the future period for which the price is worked out.
All of these

Q - 44 .Zero-risk investment implies ......

Investment in government securities
Investment in zero coupon bonds
Zero variation in cash flow from investment
Investment in bank fixed deposit

Q - 45 .A branch sanctions Rs 1 crore loan to a borrower, which of the following risks the branch is taking? 1. Liquidity risk 2. Interest rate risk 3. Market risk 4. Credit risk 5. Operational risk

All of them
1, 2 and 3 only
1, 4 and 5 only
1, 2, 4 and 5 only

Q - 46 .Which of the following risk is managed at Unit level?

Interest Rate Risk
Operational Risk
Liquidity Risk
None of these

Q - 47 .Credit derivatives segregate from the assets through instruments known as and transfer the risk from the owner to another person who is in a position to absorb the credit risk for

The bad assets, NPAs, commission
The credit risk, credit default swaps, a fee
Income, warrants, consideration
Good assets, securitization, discount

Q - 48 .An option may be exercised and the underlying stock may be bought or sold at a price. This price is called as ......

Buy Price
Sale Price
Buy or sale price
Strike Price

Q - 49 .'Your Account with Us' is called ...... account.

Vostro
Nostro
Mirror
Loro

Q - 50 .Basel II defines capital requirement as ......

Capital = Min capital ratio (8%) * (Credit Risk + Market Risk + Operational Risk)
Capital = Min capital ratio (8%) * (Credit Risk + Market Risk)
Capital = Min capital ratio (8%) * Credit Risk + Market Risk * Operational Risk
Capital = Min capital ratio (18%) * (Credit Risk + Market Risk + Operational Risk)

Online Tests for Bank Financial Management

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