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    BFM Mod D-2

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    Raghvendra Singh
    This document contains 22 multiple choice questions related to banking and finance topics such as Basel accords, provisioning requirements, and analyzing company financial statements. The questions cover concepts like capital requirements, risk weighting of assets, non-performing asset classification, and calculations of profit, book value, and market price based on financial data.

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    Download as PDF, TXT or read online from Scribd

    BFM Mod D-2

    Uploaded by

    Raghvendra Singh
    123 views7 pages
    This document contains 22 multiple choice questions related to banking and finance topics such as Basel accords, provisioning requirements, and analyzing company financial statements. The questions cover concepts like capital requirements, risk weighting of assets, non-performing asset classification, and calculations of profit, book value, and market price based on financial data.

    Original Description:

    BFM CAIIB module Ii

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    This document contains 22 multiple choice questions related to banking and finance topics such as Basel accords, provisioning requirements, and analyzing company financial statements. The questions cover concepts like capital requirements, risk weighting of assets, non-performing asset classification, and calculations of profit, book value, and market price based on financial data.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    123 views7 pages

    BFM Mod D-2

    Uploaded by

    Raghvendra Singh
    This document contains 22 multiple choice questions related to banking and finance topics such as Basel accords, provisioning requirements, and analyzing company financial statements. The questions cover concepts like capital requirements, risk weighting of assets, non-performing asset classification, and calculations of profit, book value, and market price based on financial data.

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    © All Rights Reserved
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    BFM-D

    Q1 buffer capital means…..

    a) To take over other banks


    b) To cover total credit and market risk
    c) To cover uncertainties related to the market
    d) None of these
    e) Ans: c

    Q2 An FCNR deposit received from NRI in US $ can be viewed by the bank as.

    a) Euro- rupee deposit


    b) Petro-dolller deposit
    c) Rupee-doller deposit
    d) Euro- doller deposir
    Ans: d

    Q3 Basel-ii prescribes that the housing loan portfolio shall be given the risk weight of.

    a) 100%
    b) 35%
    c) 75%
    d) Non of the above
    ans : b

    4. RbI has decided to implement basel –ii norms and for the purpose ,which of the
    following approach is proposed to be adopted in india select wrong match
    A credit risk---- standard approach
    B operational – basic indicator approach
    C market risk--- standard duration approach
    D non of these.
    Ans: d
    5. as per the basel-ii norms total capital ratio should not be lower than.
    A 5%
    B 8%
    C 10%
    D 12%
    Ans : c

    6 As per basel -II norms which one is not correct


    A tier-ii capital is restricted to 100% of tier-I capital
    B Long term subordinate debit may not exceed 50% of tier I Capital
    C tier –iii capital will be limited to 250% of tier –I capital
    D non of these
    Ans: d

    7 If there is an assets of rs 120 only in the doubt ful-I cat and the realization value of
    security is rs 90 only , what will be the provision requirement.
    A Rs 48
    B 57
    C 39
    D 75

    Ans : 48 since it a doubtful-I cat so 20% of realization value Rs 90 i.e Rs 18 and 100%
    of short Fall that is 120-90= 30 so ans will be 30+1-8= 48

    9. If there is an assets of rs 120 only in the doubt ful-II cat and the realization value of
    security is rs 90 if above mentioned asset in doubtful-ii category tha..
    A 39
    B 57
    C 66
    D 75

    Ans : b since it a doubtful-II cat so 30% realization value of Rs 90 i.e Rs 27 and 100%
    of short Fall that is 120-90= 30 so ans will be 30+27= 57
    10 If there is an assets of rs 120 only in the doubt ful-III cat and the realization value
    of security is rs 90 if above mentioned asset in doubt-III than
    A 120
    B 48
    C 57
    D 108
    Ans : a since it a doubtful-III cat so 100% of realization value Rs 90 i.e Rs 90 and 100%
    of short Fall that is 120-90= 30 so ans will be 90+30=120

    11. A preshipment account above 3 years as on mar 31 2004 has debit balance of Rs 4
    lakh. Principle security value is 1.50 lakh and ECGC cover is available at 50 % what
    provision will be made on the a/c as on 31.05.2025 .
    A Rs 2.15 lac
    B 2.0 lac
    C 1.92 lac
    D 2.25 lac

    Ans : a do know pl.. solved any body I m unable

    12. A/C of ABC has become doubtful with balance of Rs. 6 lac . the collateral security
    value Is Rs 3 lac and that of principle security s 2 lac. Guarantors worth is RS 10 lac .
    A/c is in more than 1

    Yr and up to 3 yr doubtful category . What will be amount of provision as on mar 2013.


    A Rs 1.50 lac
    B 2.50 lac
    C 1.80 lac
    D 3.0 lac

    Ans : B since it was more than two yr in boubtful category so it should be treated as
    boubtful-II cat and allow 30% of realisarion value that is 3+2=5 , 30% of 5 will be Rs
    1.50 lac and 100% of short fall that is 6-5=1 lac so 1.50+1.0=2.50 lac ans

    13. provisions to be made for a standard asset....teaser housing loan


    0.25%
    0.40%
    1%
    2%

    Ans: 2%

    Case stusy on bal sheet

    14. ABC co has following data as on 31-03-2013 Value in cr

    Paid up capital (for 2 carore share with face value of Rs 10)… 20

    Reseve ………………………………………………………………………60

    Long term loans……………………………………………………………...80

    PBIDT……………………………………………………………………… 50

    Paid interest………………………………………………………………….12

    Depreciation…………………………………………………………………10
    Tax……………………………………………………………………………08

    Price earnig ratio…………………………………………………………….10

    On this basis ans following qtn

    14 A. Its net profit would be…………

    A Rs 38 cr

    B 40

    C 42

    D 20

    Ans: d PBIDT-I-D-T = profit 50-12-10-8 = 20 cr

    14B Book value of shares of the company as on 31-03-2013

    A Rs 10 cr

    B 30

    C 40

    D 80

    Ans: c = paid up capital+ reserve/ no of shares = 20+60/2=40 ans

    14C The earning per share would be…..

    A Rs 40 cr

    B 30

    C 20

    D 10

    Ans:d EPS=NPAT/paid up capital* face value =20/20 *10=10 ans

    14D Market price of the share of the co..

    A Rs 50 cr

    B 100

    C 200
    D 300

    Ans: b ( PER * EPS= given 10*10= 100 ans)

    15) The ultimate responsibility for designing and implementation of ICAAP lies with

    1) banks,s board of directors

    2) RBI

    3) FEDAI

    4) bcbg

    Ans : a)

    16) Under Standard Approach retail and SME exposures attract a uniform Risk weightage of

    a)75%.

    b) 50%

    c)85%

    d)100%

    ans : a) 75%

    17) Under Standardized method within each business line gross income is broad
    indicator for …………………………….

    a)capital Risk exposure

    b)Operational Risk exposure.

    c)Credit Risk mitigation

    d)Financial Risk Exposure

    Ans; b)

    18.Cumulative negative mismatches maximam charges taken for the period of 8-14 days in
    ALM risk will be……..

    a) 5%
    b) 10%

    c) 15%

    d) 20%

    ans: c

    19 Indian Rupees market is an exchange of cash flow uses what type of swap in Indian
    market…….

    a) Interest rate swap

    b) Plain Vanilla swap

    c)Quanto swap

    d) Coupon swaps

    20------------------------On the recommendations of the Finance Manager, the board of directors


    will accept the project if-----

    a) Benefit Cost Ratio is less than one


    b) Net Present Value is greater than zero
    c) Internal Rate of Return is less than cost of capital
    d) Pay Back Period is greater than target period

    Ans : b

    21.dentify from the following statements , one statement which is not concerning to market
    analysis-----

    e) Production possibilities and constraints


    f) Consumer behaviour, intentions, motivations, attitudes, preferences and
    requirements
    g) Extent of competition and market share
    h) Suitability of production process
    Ans: d
    22.From the following sources of finance , find out the free source of finance--
    a) Equity Capital
    b) Preference Capital
    c) Retained Earnings
    d) None of the above
    Ans :d

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