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

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Q - 1 .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. The risk weighted assets for operational risk under basel-II in the above case would be:

• 900 cr
• 600 cr
• 300 cr
• d 1200 cr

Q - 2 .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 - 3 .In UCPDC-600 what does 600 mean?

• It has total 600 rules
• It is group of 600 countries
• Publication no 600 is the latest version
• It is amended 600 times since implemented

Q - 4 .Authorised persons - Category I was earlier known as ......

• Full Fledged Money Changers
• Restricted Money Changers
• Authorised dealers
• None of these

Q - 5 .In which method of calculating VaR, the user doesn't have to make assumptions about correlation and dynamics of the risk factors because the simulation follows every historical move?

• historical simulation method
• monte carlo simulation method
• correlation method
• none of these

Q - 6 .Bonds are governed by ......

• Law of Contract
• BR Act
• Company Law
• none of these

Q - 7 .The goods eligible for deferred payment export are classified into two categories - group A and group Select the correct pair. Group A - capital goods and production goods, Group A - consumer durables and industrial manufacture, Group B - production goods and industrial manufacture, Group B - capital goods and consumer durables.

• both 1 and 2
• both 1 and 3
• both 2 and 3
• both 2 and 4

Q - 8 .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 - 9 .The beneficiary gets the payment on presentation of documents at nominated bank's counters under ...... LC.

• Acceptance
• Deferred payment
• Revocable
• Sight

Q - 10 .What is the normal balance for an asset account?

• Debit
• Credit
• Either a or b
• None of these

Q - 11 .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 - 12 .In Indi market for currency futures commenced in

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

Q - 13 .Match the correct pair. 1) buyers / importers / applicant on whose behalf LC is opened 2) negotiating bank sellers bank or nominated by the opening bank 3) advising bank agent of issuing bank and authenticates LC 4) confirming bank pay on behalf of issuing bank

• 1 - B
• 2 - C
• 3 - D
• All are correct pairs

Q - 14 .What is the statutory time limit for export proceeds to be treated as deferred payment exports?

• 3 months
• 6 months
• 9 months
• 12 months

Q - 15 .The projects which involve supply of equipment along with related services like design, detailed engineering, civil construction, etc are known as ......

• turnkey projects
• construction projects
• both a and b
• none of these

Q - 16 .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 - 17 .Under Standard Approach retail and SME exposures attract a uniform Risk weightage of ......

• 0%
• 1%
• 1%
• 1%

Q - 18 .Under Standardized method within each business line gross income is broad indicator for ......

• Capital Risk exposure
• Operational Risk exposure.
• Credit Risk mitigation
• Financial Risk Exposure

Q - 19 .The prefixed rate on which the call options or put options are executed is known as ......

• spot
• cost price
• strike price
• none of these

Q - 20 ....... risk can be controlled by putting in place state of art system, specified contingencies.

• Sovereign risk
• Country risk
• operational risk
• Systematic risk

Q - 21 .Physical movements of goods into India is regulated by ......formulated by the ......

• DGFT, exim policy
• exim policy, DGFT
• exim policy, RBI
• RBI, trade policy

Q - 22 .The validity period of packing credit insurance is ......

• 3 months
• 6 months
• 1 year
• 15 months

Q - 23 .Client Jay pays ABC Co. 10,000 in December for ABC to perform services for Jay in 45 days. ABC uses the accrual basis of accounting. In December ABC will debit Cash for 10,000. What will be the other account involved in the December accounting entry prepared by ABC (and what type of account is it)?

• Accounts Receivable (asset)
• Prepaid Services (asset)
• Service Revenues (revenue)
• Unearned Revenues (liability)

Q - 24 .Commercial bills which are authorised to deal in foreign exchange can rediscount their shortterm export bills with a usance period of ...... days.

• 90
• 120
• 180
• 360

Q - 25 .Downside potential has 2 components. They are ......

• Potential Losses and Profit Potential
• Potential Losses and probability of occurrence
• Profit Potential and probability of occurrence
• None of the above

Q - 26 .The risk of settlement that arises due to time zone differences is known as ......

• credit
• operational
• herstatt
• reputation

Q - 27 .A bank funds its assets from a pool of composite liabilities. Apart from credit and operational risks, it faces...

• Basis risk
• Mismatch risk
• Market risk
• Liquidity risk

Q - 28 .CBLO is a ...... market instrument issued by ......

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

Q - 29 .Which of the following risks may occur at portfolio level in addition to transaction level?

• credit risk
• market risk
• operational
• all of these

Q - 30 .Entities which are authorised only to buy foreign currency notes and traveller's cheques are known as ......

• Authorised Person - Category I
• Authorised Person - Category II
• Authorised Person - Category III
• Authorised Person - Category IV

Q - 31 .Middle East or other Islamic Countries, Forex markets usually operate ......

• From Monday to Friday
• From Monday to Saturday but are closed on Friday
• From Monday to Sunday
• From Saturday to Thursday (but function on Saturday and Sunday with restrictions)

Q - 32 .SBI account with citi bank in New Jersey in US $, for citi bank is called as ...... account.

• NOSTRO
• VOSTRO
• LORO
• Mirror

Q - 33 .An import bill not retired by the importer should be crystallized by the bank on what day?

• On 21st day from the date of Bill of Lading
• On the 10th day from the receipt of documents at the counters of the bank
• On the expiry of five banking days
• On the day of receipt of the Bill

Q - 34 .Who manages Export Marketing Fund in Indi...

• EXIM bank
• RBI
• GOI
• ECGC

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 .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 - 37 .Basis Risks are type of ......

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

Q - 38 .Which of the currencies are not been quoted as indirect rates?

• GBP
• YEN
• EURO
• AUD

Q - 39 .Risk which arises out of adverse movement of market variables when the players are unable to exit the positions quickly is called as ......

• Exchange Risk
• Operational Risk
• Market Risk
• Legal Risk

Q - 40 .The failure of the counter party during the course of settlement due to time zone differences between the two currencies to be exchanged is not known as ...... risk.

• Temporal
• Settlement
• Herstatt
• Exchange

Q - 41 .The components of broad money (M3) are:

• cash in circulation with the public
• cash in currency chests with RBI and banks
• credit availed by central government from RBI
• currency in circulation, demand and time deposits with banks and post office saving deposits

Q - 42 .Tier  II capital should not be more than ......% of Total Capital.

• 25
• 50
• 75
• 100

Q - 43 .CHAPS is a payment system in ......

• UK
• US
• Hong Kong
• China

Q - 44 .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 - 45 .Risks may arise at ......

• transaction level
• portfolio level
• both a and b
• none of these

Q - 46 .The minimum and maximum period of FCNR deposits are ...... and ...... years respectively.

• 1, 3
• 1, 5
• 2, 3
• 2, 5

Q - 47 .Which of the following shipments out of India are exempt from export declaration forms?

• Goods or software, when accompanied by a declaration by the exporter that they are not more than USD 50000 in value
• Gifts of goods, valuing not over Rs.50000 along with declaration of exports
• Gifts of goods, valuing not over Rs.500000 along with declaration of exports
• Goods not exceeding in value USD 10000 per transaction exported to Myanmar under bilateral trade agreement

Q - 48 .In Forex Markets, on an average the exchange rates of major currencies fluctuate every ...... seconds.

• 2
• 3
• 4
• 5

Q - 49 .1988 Capital Accord framework accounted for 1. Credit risk 2. Market Risk 3. Operational risk 4. Defined capital component Which of the following is true?

• All of them
• 1,2 and 4
• 1,3 and 4
• 1,2 and 3

Q - 50 .If the overseas supplier of goods extends credit to the importer for a period of more than 6 months but for less than 3 years, it is called ...... and if the period is more than 3 years, it is called ......

• PCL, PCFC
• Trade Credit, ECB
• ECB, Trade Credit
• EBR, trade credit

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