Bank Financial Management mock test with old question most imp question 5 year old question. Question multiple choice questions and answers prepared by senior officer’s click on finish test after attend all the question to know your result with right wrong answer

First ques   1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50   of 50 Finish Last

Q - 1 .SBI maintains USD account with Bank of America, New York. When it conducts transactions through this account, it passes entries in its books at Mumbai through the ...... account

• Nostro account
• Vostro account
• Loro account
• Mirror account

Q - 2 .Systemic risk is the risk of

• Failure of a bank, which is not adhering to regulations
• Failure of two banks simultaneously due to bankruptcy of one bank
• Failure of entire banking system
• Where a group of banks fail due to contagion effect

Q - 3 .When the strike price is above the spot price for the put option, the option is ......

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

Q - 4 .Concessional rate of interest for post-shipment finance is allowed for __ days in case of demand bills.

• 21
• 25
• 90
• 180

Q - 5 .TARGET is a payment system in ......

• UK
• US
• Europe
• China

Q - 6 .Exchange for current account transaction with any person resident in ...... or ...... is prohibite

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

Q - 7 .The benchmark rates for overnight lending for USD are generally ......

• LIBOR
• MIBOR
• Fed Rate
• MIFOR

Q - 8 .A combination of two forward transactions is called a ......

• spot
• forward
• swap
• none of these

Q - 9 .Risk of Reduction in Mark-to-Market value of equities is ......

• Interest Rate Risk
• Market Risk
• Credit Risk
• Operational Risk

Q - 10 .Where the results into a banking or financial crisis for the entire system on account of failure of a large bank, it is called

• Liquidity Risk
• Settlement Risk
• Systematic Risk
• Legal Risk

Q - 11 .Treasury uses derivatives ......

• to manage risks including ALM (Assets Liabilities Management) risk
• to cater to the requirements of the corporate customers
• to trade, i.e., to take a trading position in derivative products.
• all of these

Q - 12 .Small exporter policy is issued for a period of ...... months and its coverage is ......% where the loss is due to commercial risk and ...... % if the loss is due to political risk and the waiting period for claim is ......months from the due date of payment.

• 12, 95, 100, 4
• 12, 100, 95, 4
• 4, 95, 100, 12
• 12, 95, 100, 6

Q - 13 .Changing of interest rate of different assets, liabilities and off-balance sheet items in different magnitude is termed as ...... risk.

• gap
• basis
• yield curve
• embedded option

Q - 14 .The salient feature of convertible bond is ......

• Conversion of physical bonds into demat form
• Option to convert the bond in to equity on a fixed date or during a fixed period and the price is predetermined
• Automatic reinvestment in another bond on maturity
• Absence of coupon

Q - 15 .Debentures are governed by ......

• Law of contract
• Company Law
• Negotiable instrument
• None of these

Q - 16 .An LC which facilitates financing to the supplier prior to shipment is known as ...... L

• Red Clause
• Negotiation
• Back to Back
• Revocable

Q - 17 .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 - 18 .5% of amt of DTL that is 58300 and 5% is 29

• Debentures are classified as ......
• Long Term Debt
• Owned funds
• Owned funds if raised from shareholders

Q - 19 .The treasury is run by a few specialist staff engaged in high value transaction per trn size generally not being ......

• Rs 10 Million
• Rs 20 Million
• Rs 50 Million
• None of these

Q - 20 .The benchmark rates for term lending for USD are generally ......

• LIBOR
• MIBOR
• Fed Rate
• MIFOR

Q - 21 .When banks have more earning assets than paying liabilities, ...... risk arises.

• market
• credit
• liquidity
• interest

Q - 22 .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 - 23 .Notice money refers to placement of funds for period not exceeding ...

• over night
• two days
• 7 days
• 14 days

Q - 24 .Which of the following cannot participate in the call money market? 1. banks (including co-operative banks) 2. land development banks 3. primary dealers 4. financial institutions 5. mutual funds players

• 1, 3 and 4
• 1, 2 and 3
• 2, 3 and 4
• 2, 4 and 5

Q - 25 .Which of the following is not true regarding ETD (Exchange Traded Derivatives)?

• Forward contracts traded on only organized future exchanges are known as future contracts.
• It is mostly used for trading and speculation.
• Counter party risk is not present.
• Price is quoted by the bank, as the pricing is not transparent.

Q - 26 .The ultimate responsibility for designing and implementation of ICAAP lies with ......

• Banks' board of directors
• RBI
• FEDAI
• BCBG

Q - 27 .Which of following documents does not contain Zero risk ?

• Investments in shares
• Investment in bonds and debentures
• Investment in term deposit
• Investment in government bonds

Q - 28 .Banking books does not include which of the following.

• All deposit and loans
• All borrowings
• Capital
• All of these

Q - 29 .The uniform rules for bank to bank reimbursement have been framed by ......

• RBI
• World bank
• ICC
• FEDAI

Q - 30 .The forward premium and discount are generally based on the .........of the two currencies involve

• Market rate
• Future rate
• Interest rate differentials
• Ready or cash

Q - 31 .The higher the risk, the higher would be ......

• return expectation
• capital requirement
• both a and b
• none of these

Q - 32 .The delivery period in case of option contract can not exceed beyond ...... month.

• 1
• 2
• 3
• 4

Q - 33 .Banks using the Basic Indicator approach must hold capital for operational risk equal to the average over the previous ...... years of 15% of positive annual gross income.

• 2
• 3
• 4
• 5

Q - 34 .An exposer of Rs 100 lakhs is backed by lien on fixed deposit of Rs 30 lakhs. There is no maturity mismatch. What should be Hair cut for credit risk mitigation?

• 70 lakhs
• 0.70 lakh
• 0.00 lakh
• 30 lakhs

Q - 35 .Building up large volumes of business on relatively small capital is known as ......

• derivative
• arbitrage
• swapping
• leveraging

Q - 36 .Data relating to balance sheet as on 14 Mar 2015 banks reveals its capital at Rs 1110 cr, reserve 2150 cr, demand deposit 6500cr,SB deposit 20500 cr, term deposits from banks 1300 cr, term deposit from public 30800 cr, borrowing from RBI nil, borrowing from other institutions 200 cr, refinance from NABARD 150 cr, bills payable 50 Cr, accrued 20 cr, subordinated debt 200 cr and credit balance in suspense a/c 30 cr (Total Being 63000). What are the risk weighted assets for operational risk?

• Rs 1000 Cr
• Rs 2000 Cr
• Rs 1250 Cr
• Rs 2500 Cr

Q - 37 .Indian working with foreign govt abroad is a ......

• PIO
• NRI
• Resident Indian
• Foreigner

Q - 38 .In Indi market for currency futures commenced in

• August 2008
• August 1993
• October 2004
• the market yet to commence operations

Q - 39 .To approve finance against exports on deferred payment basis, the sponsoring bank refers the proposal to EXIM bank for value not exceeding ......,

• 50 crore
• 100 crore
• 150 crore
• 200 crore

Q - 40 .A put option is in the money (ITM) if ......

• the strike price is less than the market price
• the strike price is more than the market price
• the strike price is equal to the market price
• a put option can never be in the money

Q - 41 .To grant extension of an export bill beyond 12 months from the date of export, the total export outstanding of the exporter should not be more than USD ...... or __ % of the average of export realizations during the preceding __ years, whichever is higher.

• USD 1.00 million, 5, 1
• USD 2.00 million, 5, 2
• USD 1.00 million, 10, 3
• USD 2.00 million, 10, 4

Q - 42 .Which is not a function of the Mid Office ?

• Risk management for forex dealing operations
• Look after the compliance of various guidelines/instructions
• Processing of Deals, Account, reconciliation etc
• None of the above

Q - 43 .Tier 1 is also known as ...... capital.

• core
• supplementary
• complementary
• none of these

Q - 44 .Securities issued by governments are referred to as _____ which do not have any credit risk.

• derivative
• gilt
• demat A/C
• yield

Q - 45 .Short term funds flow have maturity ......

• more than 6 months but less than 1 year
• less than 1 year
• more than 1 year but less than 2 years
• none of these

Q - 46 .Banks maintain their security accounts (exclusively for government securities) with RBI which is known as _____ account.

• CGL
• SGL
• BGL
• none of these

Q - 47 .Inflow of USD 200,000.00 by TT for credit to your exporter's account, being advance payment for exports (credit received in Nostro statement received from New York correspondent). What rate you will take to quote to the customer, if the market is 55.21/25?

• 55.21
• 55.21-Bank commission
• 55.25
• 55.25- Bank commission

Q - 48 .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 minimum capital as specified by the regulatory authority is required to be maintained
• None of the above

Q - 49 .Which of the currencies is not been quoted as indirect rates ?

• GBP
• YEN
• EURO
• AUD

Q - 50 .Which of the following is not included in Tier II capital?

• disclosed reserves
• undisclosed reserves
• equity
• both a and c

Prv Next Finish Test