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Gifts of goods, valuing Gifts of goods, valuing
not over Rs.500000 not over Rs.500000
2 Which of the following shipments out of India are exempt from export declaration forms?
along with declaration along with declaration
of exports of exports
Help borrowers/lenders Help borrowers/lenders
to switch their to switch their
borrowings/lendings borrowings/lendings
3 What is the principal purpose of Interest Rate Swaps?
from fixed to floating from fixed to floating
rate structures and vice rate structures and vice
versa versa
Local branch Local branch
5 The foreign exchange surplus does not arise out of profits from....
operations operations
Relationship Relationship
SWIFT has introduced new system of authentication of messages between banks replacing Bilateral Key
6 Management Management
Exchange (BKE) with RMA. RMA stands for___________
Application Application
IEC number issued by IEC number issued by
7 Every exporter should obtain a code number before making exports. What is the number?
DGFT DGFT
Maximum open Maximum open
8 What is a Day-light position? position limit during position limit during
the day the day
Exporters who Exporters who
contribute not less contribute not less
9 Who is eligible to take Export turnover policy from ECGC?
than Rs. 10 lakhs than Rs. 10 lakhs
towards premium towards premium
A Bank received an LC for USD 2 Mio issued by MT 700 and opened on Jan 25, 2014. The credit calls
To disregard non- To disregard non-
for shipment of 200 tonnes of good quality wheat cultivated in Punjab.
11 documentary documentary
requirements requirements
Under UCP 600, what should be done to ensure shipment of good quality wheat?
The settlement takes The settlement takes
place on the second place on the second
12 In respect of spot rates (forex) _________.
day following the deal day following the deal
date date
Spread over several Spread over several
13 Foreign exchange markets or forex markets (as is popularly known) work _______. continents and continents and
countries countries
The financing of export receivables, without recourse to the seller for full invoice value is called
15 Forfaiting Forfaiting
__________.
In a rising interest rate scenario, asset interest rate may rise in different magnitude from the interest rate
16 Basis risk Basis risk
on corresponding liability. This leads to what type of risk?
18 Rs.1125 Crore Rs.1125 Crore
Based on the following data of Best Bank as on 1st November,
(Rs. Crore)
Tier-I Capital as per its last audited Balance Sheet Rs.5,000
Tier-II Capital as per its last audited Balance Sheet Rs.2,000
Infusion of Equity after published Balance Sheet date Rs.500
Paid up Capital as per last audited Balance Sheet Rs.300
Free Reserves as its last audited Balance Sheet Rs.4,500
Intangible Assets as per last audited Balance Sheet date Rs.100
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Capital market exposure as on 1st November Rs.1,000
Out of which, direct capital market exposure is Rs.100
What will be the exposure ceiling limit to ABC Ltd belonging to XYZ Group, as per extant RBI
guidelines?
Premature withdrawal Premature withdrawal
19 Which of the following is an example of embedded option risk? of term deposits before of term deposits before
their stated maturity their stated maturity
Innovative Perpetual Innovative Perpetual
20 IPDI stands for ------
Debt Instruments Debt Instruments
Based on the following data of Best Bank as on 1st November,
(Rs. Crore)
Tier-I Capital as per its last audited Balance Sheet Rs.5,000
Tier-II Capital as per its last audited Balance Sheet Rs.2,000
Infusion of Equity after published Balance Sheet date Rs.500
Paid up Capital as per last audited Balance Sheet Rs.300
22 Rs.4800 Crore Rs.5200 Crore
Free Reserves as its last audited Balance Sheet Rs.4,500
Intangible Assets as per last audited Balance Sheet date Rs.100
Capital market exposure as on 1st November Rs.1,000
Out of which, direct capital market exposure is Rs.100
What is the Net Worth of Best Bank as on 1st November as per RBI guidelines?
Capital = Min Capital Capital = Min Capital
Basel II defines capital requirement as a function of the risks involved. Which one of the following Ratio (8%) x (credit Ratio (8%) x (credit
23
equations correctly depicts the definition? risk + market risk + risk + market risk +
operational risk). operational risk).
Under Basel II while prescribing minimum capital ratio of 8%, what additional risk has BIS added to the
24 Operational risk Operational risk
existing risks?
Returns on zero-risk investments are generally ________as compared to other opportunities available in
25 Low Low
the market
It formulates broad It formulates broad
supervisory standards, supervisory standards,
guidelines and guidelines and
recommends recommends
27 Which of the following is true in case of BCBS? statements of best statements of best
practices to ensure practices to ensure
convergence towards convergence towards
common approaches common approaches
and common standards and common standards
It integrates volatility It integrates volatility
and sensitivity with the and sensitivity with the
28 Why downside potential is the most comprehensive measure of risk?
adverse effects of adverse effects of
uncertainty uncertainty
Given by National Given by National
29 Under Foundation IRB approach, LGD will be ________.
Supervisor Supervisor
15% of previous three 15% of previous three
31 What is the recommended capital charge for operational risk under Basic Indicator approach? years average positive years average positive
annual gross income annual gross income
In case of a prevailing emergency, if the disaster recovery systems of a bank also fail, what type of risk
32 Operational risk Operational risk
can it be called?
The Bank has a interest rate sensitive ratio of 1.60, as against its targeted ratio of 1.25 with rate
sensitive assets exceeding rate sensitive liabilities in the time bloc of 2 to 5 years - mainly on account of
its recent focus on expanding its short term deposit base with average maturity not exceeding 12
To encourage trade To encourage trade
months. The pricing of assets and liabilities is generally linked to G-sec yields, as per its ALM Policy.
33 finance and short term finance and short term
Assuming the duration of its assets is about 3 years and the interest rate outlook is one of increasing
advances advances
rates, bank would like to work out the following alternatives.
Without using derivatives, the bank may also modify its policy and advise branches _________.
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35 Statutory Liquidity Ratio can be maintained in the forms of _______. Approved securities as Approved securities as
per RBI norms per RBI norms
Provide management Provide management
37 The mid office of treasury has been created to ________.
Information Information
A corporate customer approaches bank treasury for advice on hedging his ECB loan of USD 10 mn., due
to be availed next week. The loan is repayable over 5 years. He would however like to keep his interest
rate risk open, as LIBOR is at its historical low.
40 12/18 FRA 12/18 FRA
The company would like to hedge interest rate only for one period, i e from January 2014 to June
2014, when it has maximum liability. Assuming the company wants to hedge the risk in December
2012, treasury should recommend ____________.
The policy which states about the spreads to be retained by Treasury, segregation of administrative cost,
41 Transfer pricing policy Transfer pricing policy
allocation of costs is known as ________.
The office created exclusively to provide information to the management and implement risk
42 Mid office Mid office
management systems is known as ____________.
The benefit accruing to traders, who play in different markets simultaneously, because markets are
43 Arbitrage Arbitrage
imperfect, is called _________.
Mr. A, who participates in the options market, had the following information with him on 5th August,
2010. 'X' Industries was trading at Rs.560.00. The other details were:
Call option - Sept 30 - strike price 590 - premium Rs. 120
44 Put option - Sept 30 - strike price 540 - premium Rs. 90 out of the money out of the money
The unit lot size is 50.
If the market price of 'X' Industries was Rs. 530.00 on 30th Sept, 2010; then the call option is said to
be ____________.
46 Advances as on 31st Advances as on 31st
The following data in respect of ABC Bank for the years ended 31st March, 2010 and 31st March, 2011 March, 2011 have March, 2011 have
is given. increased by 16.48%. increased by 16.48%.
Mar '10 Mar '11
Assets:
Advances 5,42,503.20 ?
Total Assets 9 ,6 4 ,4 3 2 .0 8 1 0 ,5 3 ,4 1 3 .7 4
Which of the following statements is true?
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Which of the following statements is true?
The following data in respect of ABC Bank for the years ended 31st March, 2010 and 31st March, 2011
is given.
Mar '10 Mar '11
Assets:
Advances 5,42,503.20 ?
Total Assets 9 ,6 4 ,4 3 2 .0 8 1 0 ,5 3 ,4 1 3 .7 4
The deposits for the year ended 31st March, 2011 have increased by _______
If the outstanding If the outstanding
balance in the account balance in the account
is less than the is less than the
sanctioned limit/ sanctioned limit/
50 Which of the following options is incorrect for classifying an account as 'out of order'? drawing power but drawing power but
there are no credits there are no credits
continuously for 120 continuously for 120
days as on the Balance days as on the Balance
Sheet date. Sheet date.
Supervisory Review Supervisory Review
51 ICAAP and SREP are the two important components of ......
Process Process
Capital to risk weighted Capital to risk weighted
52 In banking, the Cooke ratio refers to __________.
assets ratio assets ratio
53 Investments Investments
AKB Bank Ltd. is an international Bank. Following are some items from their financial statements for the
year ended March, 2013.
L/C Issued USD 40 MIO
Forward Contracts USD 25 MIO
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Forward Contracts USD 25 MIO
BG s Issued USD 5 MIO
Which one of the following is not an 'Off-Balance Sheet' item?
As on 31/03/2014, ABC Bank Ltd, with pan India presence, had its broad maturity profile of Assets and
Liabilities as under:
Li ab i l i ti es Assets
Upgrading of the bank Upgrading of the bank
54 upto 1 year 200 100
by Rating Agencies by Rating Agencies
over 1 yr—up to 3 yrs 150 200
over 3 yr—up to 5 yrs 100 150
Which of the following factors will help ABC Bank Ltd in reducing its liquidity risk?
The following data in respect of ABC Bank for the years ended 31st March, 2010 and 31st March, 2011
is given.
Mar '10 Mar '11
Assets:
Advances 5,42,503.20 ?
Total Assets 9 ,6 4 ,4 3 2 .0 8 1 0 ,5 3 ,4 1 3 .7 4
If the actual growth in advances as on 31st March, 2011 had been higher by Rs. 10,000 Crore, the
advances as on 31st March, 2011 would have been ______
56 10 10
As on 31/03/2014, ABC Bank Ltd, with pan India presence, had its broad maturity profile of Assets and
Liabilities as under:
Li ab i l i ti es Assets
upto 1 year 200 100
over 1 yr—up to 3 yrs 150 200
over 3 yr—up to 5 yrs 100 150
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RBI guidelines require banks in India to classify their assets and liabilities into __________buckets
The following data in respect of ABC Bank for the years ended 31st March, 2010 and 31st March, 2011
is given.
Mar '10 Mar '11
Assets:
Advances 5,42,503.20 ?
Total Assets 9 ,6 4 ,4 3 2 .0 8 1 0 ,5 3 ,4 1 3 .7 4
The net worth for the year ended 31st March, 2011 is Rs. _____
The 'unsecured exposures', identified as substandard assets, attracts provision of _____ on the
59 10% 25%
outstanding balance.
In regard to the secured portion of a doubtful asset, which has remained doubtful for a period between
60 30% 30%
1-3 years, the provisioning requirement should be ________ as per RBI's guidelines.
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