A. A Increasing The Credit Limit of The Corporate: Bfs L0

Download as doc, pdf, or txt
Download as doc, pdf, or txt
You are on page 1of 20

BFS L0

1 Which of the following are not the benefits of using Credit derivatives?
a. A increasing the credit limit of the corporate
b. Credit derivatives can be used to create positions that can otherwise not
easily be established in the cash market
c. Credit derivates can be used either to take on more risk or to avoid (hedge) it
d. Credit derivatives can be used both to diversify their credit risk exposures and
free up capital from regulatory constraints

2. What is OTC?
a. On the counter
b. options on the counter
c. operating the company
d. over the counter
e. None of the listed options

3. In active approach, Asset allocation is more influenced by which of the following


option?
a. value of Investment
b. Market Views
c. None of the listed options
d. Investors risk preferences

4. A person purchase a share @ $50.00, after 2 years, the price is at $75 and he
decides to sell the share at that price. What is the annualized return that the person
has earned.
a. 0.5
b. 0.3333
c. 0.2247
d. 0.6667
e. None of the listed options

5. An open end fund with 10,000 units outstanding had the total assets of Rs. 120,
000 and the liabilities of Rs. 25,000. Calculate the funds NAV per unit.
a. Rs. 10
b. Rs. 12
c. Rs. 9.5
d. Rs. 14.5

6. Product development in sales and marketing refers to which of the following


options
a. Collateral e.g. cars in case of car loans, houses in case of mortgages
b. Products that are bought using online payment such as e-commerce
c. Developing and differentiating deposits, loans, etc
d. All of the listed options
e. Identifying products such as SAP, Oracle for the Bank
7. A bank has portfolio of $50 million worth of loans out of which it wants to sell $20
million worth of loan to another financial institution, what is this process called?
a. Accrual loan
b. Undrawn loan
c. Trading Loans
d. Committed 1oans
e. Held for sale loans (Not Sure)

8. Trading occurs between clearing and settlement. State true of false


a. True
b. false

9. Which of the following are examples of emerging payments?


a. All of the listed options
b. Digital Cash
c. Proximity payments
d. EBPP

10. In defined benefits plan, the benefit is expressed as an ___________ and in


defined contributions plans, the benefit is expressed as an __________
a. account balance, annuity
b. account balance, account balance
c. annuity, account balances
d. annuity, annuity

11. Loan Serving starts after underwriting. State true or false


a. True
b. False

12. An investor has multiple investment options yielding various dollar returns at
various points of time, while he is comfortable with a return of X% p.a. Which
method should he use to compare the various investments?
a. Compound Interest
b. External rate of return
c. Net present value
d. Simple Interest
e. Internal rate of return

13. Ram deposits $100 in XYZ Bank. Puja takes a loan of a %100 from XYZ bank.
Which of the following is most likely to happen?
a. Bank is charging 3% interest to Puja and paying 5% interest to Ram
b. Bank is paying 5% interest to Ram and charging 5% interest to Puja
c. None of the listed options
d. Bank is paying 3% interest to Puja and charging 5% interest to Ram
e. Bank is charging 5% interest to Puja and paying 3% interest to Ram

14. At the end of the trade cycle, the trades are ________ to determine the
obligation of the trading members to deliver securities/funds as per
settlement schedule
a. Grossed
b. Aggregated
c. Netted
d. Offset
15. Principle- Strip and Coupon-Strips are used in reference to _________
a. Swaps
b. Bonds
c. Futures
d. Equity
e. Forwards

16. What is the difference between bankers acceptance and single draft
a. None of the listed options (Not sure)
b. Bankers acceptance demands immediate payment
c. Single draft are negotiable instruments
d. Bankers acceptance reduces banks lending capacity
e. Bank can raise funds by selling the acceptance

17. An institutional investor holds 50000 Microsoft shares. A custodian does the
safe keeping on the investor behalf. During this period, Microsoft announces
dividend. Based on this scenario which is the correct option from the following
a. The dividend amount will be processed by the custodian and credited
to the institutional investor account
b. None of the listed options
c. Because the assets are with the custodian the dividend amount will be
credited to the custodian account
d. The custodian and the investor share a part of the dividend

18. Which of the following is a type of underwriting spread


a. Underwriters allowance
b. Managers fee
c. None of the listed options
d. Concession
e. All of the listed options

19. A custodian has different types of assets under its custody and those assets
earn returns to the original investor in various forms. What are the type of
returns that can be taxed?
I. Dividend
II. Interest
III. Capital Gain
IV. All of the listed options

a. III only
b. I only
c. II only
d. Both I and II
e. IV

20. A company ABC has a gross profit of $50000. The operating expenses amount
to $10000. The interest on loans availed amounts to $5000 and the taxes to
be paid amount to $5000. Calculate the EPS if there are total of 20000 shares
a. 2.5
b. 1.25
c. 2
d. 1.5
21. Coming together of BNY and Mellon is an example of ____________
a. All of the listed options
b. Merger
c. Acquisition
d. Takeover
e. Brokerage

22. Which of the following is NOT a TOP 10 US bank?


a. Bank of America
b. JP Morgan Chase
c. Well Fargo
d. Citigroup
e. Lloyds TSB

23. Interest rate spread equal to?

a. Current Rate- Base Rate


b. Current Rate-Floor
c. Base Rate – Floor
d. None of the listed options
e. Cap- Current Rate

24. Which are true in a ‘Basic or No fill Checking’ Account?


I. Limit the number of checks written
II. Interest paid
III. Limit the number of withdrawals made
a. II and III
b. I and III
c. All of the listed options
d. I and II

25. In case of auto finance, monthly lease payments are usually lower than monthly
loan payments because of which reason?
a. Customer is only paying for depreciation
b. Customer is only paying for taxes
c. Customer is only paying for Fees
d. All of the listed options
e. Customer is only paying for rent charges

26. Which of this is a tax heaven?


a. Bermuda
b. US
c. Japan
d. Singapore
e. India
27. SPV means
a. Special principle vehicle
b. Security purpose vehicle
c. Special purpose vehicle
d. none of the listed option
e. Securitized planning vehicle

28. What does single EURO payment area (SEPA) do?


a. Creates a single payment market
b. Removes differences in intra and cross border payments
c. Applicable to direct debits, Credits and credit cards
d. All of the listed options

29. Which of the following is not Core private banking function?


a. Research
b. Investment analysis and advice
c. Client management
d. Deposit mobilization
e. Sales and marketing

30. The advising bank is used as trusted bridge between the _______ and ______
when they do not have an active relationship
a. Applicant bank, Beneficiary bank
b. Importer, Exporter
c. Beneficiary Bank, Reimbursing bank
d. (answer not in above 3 options) confirm

31. What is the primary source of incoming for the bank?


a. Deposits from public
b. Grants from central bank
c. Interest income
d. Fees for services
e. None of the listed options

32. Tax and insurance premiums collected as part of loan repayment are handled
through which of the following type of account
a. Escrow account
b. Fixed Deposit
c. DMAT Account
d. Mutual Account

33. Which of the following risks for the investor is associated with corporate bonds
but NOT U. S. Treasury Securities?
a. Interest rate risk
b. Reinvestment Risk
c. Credit Rating Risk
d. Default Risk
e. None of the listed options
34. On a trading day, at the NYSE, a broker undertakes the following trades
Buy 100 IBM shares for $11.00 each
Sell 50 IBM shares for $10.50 each
Buy 100 MSFT share for $20.00 each
Sell 20 IBM shares for $11.00 each
Sell 10 MSFT shares for $20.50 each
Sell 30 IBM shares for $9.00 each

How much did the broker pay out to the exchange in total in case of (a)
Gross settlement system (b) Net settlement system?
a. (a) $1780 (b) 0 for IBM, $1795 for MSFT
b. (a) $1880 (b) $3100
c. (a) $3100 (b) $1880
d. (a) 0 for IBM, $1795 for MSFT (b) $1780
e. None of the listed options

35. Number of stages in syndicate loans are ________


a. 4
b. 5
c. 1
d. 2
e. 3

36. Investment bank assists in Mergers and acquisitions through which of


the following options?
a. All of the listed options
b. Negotiating between the parties
c. Valuation of companies
d. Structuring the deals
e. Ensuring smooth transactions

37. The purpose of Community Development Banks (CDB) is to serve


residents and spur economic development in low to moderate income
(LM) geographical areas. State True of False

38. On a trading day at exchange, a broker undertakes the following trades


Buy 200 Microsoft shares for $10.00 each
Sell 100 Microsoft shares for $10.50 each
Buy 100 Google share for $20.00 each
Sell 30 Microsoft shares for $11.00 each
Sell 50 Google shares for $20.50 each
Sell 40 Microsoft shares for $9.00 each

How much did the broker pay out to the exchange in total in case of (a)
Gross settlement system (b) Net settlement system?
a. (a) $4000 (b) $1235
b. (a) $1235 (b) $2235
c. (a) $260 for Microsoft, $975 for Google (b) $975 for Google, #260 for
Microsoft
d. (a) $1235 (b) $4000
e. None of the listed options
39. What are Secondary markets defined as?
a. Market in which securities are resold after they are originally issued
b. Market where security is sold during IPO
c. None of the listed options
d. Either auction or dealers market are being OTC market

40. Annuities are


a. Discounted Loan
b. Capitalized Loan
c. A loan that is paid in periodic equated installments with capitalized
interest
d. True discounted loan
e. Amortized loan

41. __________ is the legal and professional proceeding in which a lender,


obtains a court order terminations of a borrowers equitable right of
redemption
a. Foreclosure
b. Securitization
c. Sub-Prime
d. Credit –Freeze

42. All of the following are valid means for a custody client to communicate
trade instructions to its custodian, EXCEPT
a. By fax
b. FEDWIRE
c. By Telephone
d. SWIFT Network

43. In a nominal T+3 settlement cycle, when is the confirmation/


affirmation completed?
a. True
b. None of the listed options
c. T+2
d. T+3
e. T+1 9.3.8

44. Bank a base din US, provides safe keeping services for securities to its
US clients. It also has clients in France and Belgium, and provides
securities safe keeping services to these clients through banks C and D
respectively. Which of the following term best describes Bank A
a. Global Custodian
b. Secondary Custodian
c. None of the listed options
d. Main Custodian
e. Sub Custodian
45. In Electronic Check conversion (ECC), what happens once the check is
processed?
a. The customer can present a check to a store cashier
b. Receive cash immediately
c. All of the listed options
d. The customer signs a receipt authorizing the store to present the check
to the bank electronically and deposit the funds into the store’s account

46. P & L statements represent transactions over a period of time while the
balance sheet shows information as of a specific date. State True of
False
47. Which two risks of a financial institution may brings gains as well as
losses?
a. liquidity Risk and Credit Risk
b. Credit Risk and Foreign Exchange Risk
c. Credit Risk and interest rate risk
d. None of the listed options
e. Interest rate Risk and Foreign Exchange Risk

48. Which of the following is a corporate action?


a. Declaring Dividend
b. All of the listed options
c. M & A
d. Rights Issue
e. Stock split

49. NPV stands for


a. Net Past value
b. Net Present value
c. New present value
d. No present value

50. What are Yankee Bonds also known as


a. Junk Bonds
b. T- Bills
c. None of the listed options
d. Call options
e. Shares

51. The suitable strategy for an investor following active approach is to


a. Purchase both types of stocks
b. Purchase Undervalued stock and sell overvalued stock
c. Sell both type of stocks
d. Sell Undervalued stocks and purchase overvalued stock

52. The risk that a given security or asset cannot be traded quickly enough
in the market to prevent a loss (or make the required profit) is
a. Liquidity Risk
b. Credit Risk
c. Business Risk
d. Financial Risk
53. Which of the following is not a barter trade or a counter trade?
I. Compensate the seller in the currency buyer likes
II. Compensate the seller through bank draft
III. Compensate the seller in the currency Seller likes
IV. Compensate the seller in a manner other than transfer of money
a. I only
b. II only
c. IV only
d. I, II, and II
e. III only

54. The components to determine the rate of exchange in a forward


contract are
a. Cross currency rate and forward rate adjustment
b. Current spot rate, amount of currency bought/Sold
c. Forward rate adjustment and amount of currency bought of sold
d. Currency spot rate and forward rate adjustment

55. Which of the following are the functions of the relationship manager in a
retails bank?
a. New account opening
b. All of the listed options
c. Product Sales
d. Account Maintenance

56. An investment strategy that arms to capitalize on the continuance of


existing trends in the market is called __________
a. Passive Investing
b. Momentum Investing
c. Contrarian Investing
d. Technical analysis

57. If the money multiplier is 1, the required reserve ratio must be


a. Zero
b. 0.5
c. 1
d. Greater than 100%

58. During Q1, 2008 the investment bank _________ was merged with
JPMC after it was unable to continue borrowing to finance its operations
a. Lehman Brothers
b. Bear Steams
c. AIG
d. Fannie- Mae
e. Washington Mutual

59. All of the following are the benefits of netting EXCEPT


a. Reduction in compliance risk
b. Reduction in the cost of the settlement
c. Reduction in the systemic Risk
d. Reduction in the number of deliveries and receipts
60. Which of the following is not a player in a typical trade cycle?
a. Clearing bank
b. Trading Members
c. Clearing members
d. Regulator
e. Custodian bank

61. Which of the following operation can not be done on LC (Letter of


Credit)?
a. Acceptance
b. Discount
c. None of the listed options
d. Purchase

62. On a trading day, at the NYSE, a broker undertakes the following trades
Buy 120 Dell shares for $10.00 each
Sell 70 Dell shares for $10.50 each
Buy 200 CISCO share for $20.00 each
Sell 20 Dell shares for $11.00 each
Sell 50 CISCO shares for $20.50 each
Sell 10 Dell shares for $9.00 each

Given that a net settlement system is being used. Find out the net position
of the broker at the end of the day
a. Dell 20 shares to receive, CISCO 150 shares to receive, $3130 to pay
out to the exchange
b. Dell 70 shares to give out, CISCO 90 shares to receive, $3000 to pay
out to the exchange
c. None of the listed options
d. Dell 150 shares to receive, CISCO 20 shares to receive, $3130 to
receive from exchange
e. Dell 20 shares to pay out, CISCO 150 shares to receive, $3780 to pay
out to exchange

63. A bank is required to hold reserves at least equal to a prescribed


traction of its total deposit liabilities is called
a. SLR
b. ALM
c. ERP
d. SAR

64. XYZ Corporation is a large client of a bank and on a average for a


period it maintains $20 million in its bank account. However, The bank
allows the authorized representatives of XYZ to utilize the funds up to
15% over the balance maintained. This is example of which of the
following options?
a. Undrawn Loan
b. Accrual Loan
c. Overdraft
d. Held for sale loans
e. Committed loans
65. Which of the following methods of payment is most risky to the buyer?
a. Cash in Advance
b. Counter trade
c. Open account
d. Letter of credit
e. Documentary collection

66. Which of the following is not a example of an option?


a. Oil Futures
b. Swaption
c. Put option
d. LEAPS (Long term options)
e. Call option

67. IF the point of purchase is $52 and the amount given to the issuer is
$50. What is the underwriter spread?
a. 50
b. None of the listed options
c. 102
d. 52
e. 2

68. A card holder swipes his card for USD 100. How much the merchant
I. Deduct form the card holder
II. Receive from the acquirer
Assume merchant discount at 2%
a. I. USD 98 II. USD 98
b. I. USD 100 II. USD 98
c. I. USD 100 II. USD 2
d. I. USD 100 II. USD 100

69. The counterparty in a futures contract trade is


a. Banks
b. The buyer and Seller
c. Government
d. The exchange
e. The brokers who struck the deal

70. Identify the odd one out


a. Treasury Bills
b. Commercial papers
c. Bill of exchange
d. Stocks
e. Treasury Notes

71. GE shares are currently selling for $15.00 each. You bought 200 shares
one year ago @ $12 and received dividend payments of $2 per share.
What was your total dollar capital gain this year?
a. 1000
b. 500
c. None of the listed options
d. 400
e. 200
72. Find out the one which does not come under the retail bank service?
a. Trade finance
b. Credit card services
c. Electronic banking
d. Personal loans

73. What does the call option gives buyer?


a. The right but not call option to buy
b. The right but not the obligation to sell
c. The obligation to sell
d. The right and obligation to buy
e. _______________

74. The money the bank receives ad deposits becomes a banks


a. Liability
b. Losses
c. All of the options
d. Assets
e. Profit

75. Trade finance primarily helps in


a. Facilitating intra-company transactions
b. Facilitating setting up of new factories
c. Facilitating inter company transactions
d. Facilitating corporate lending
e. Facilitating international transactions

76. Which of the following is a valid repayment type?


a. Bullet payment
b. All of the listed options
c. Step down
d. Step up
e. Balloon

77. Most common reason for a corporate seeking a loan from a bank
includes all of the following EXCEPT
a. Paying bonuses to the top executives
b. Daily cash flow requirements
c. Capacity expansions
d. Plain Modernization
e. New Projects

78. _________ are profit of the business that have not been distributed to
the owner as of the balance sheet date
a. Share capital
b. Gross profit
c. Revenue
d. Retained earnings

79. Treasury bills can be transacted and settled on the same date. State
true or false.
80. If you invest $200 for 3 year @ 8% compound interest. How much will
you have at the end of the 3 years?

a. None of the listed options


b. 248
c. 252
d. 272
e. 310

81. In trade finance which of the following factors are considered while
choosing mode of financing?
a. Government guarantee program, Seller preference
b. Exporters fund, Risk factors, Cost of financing, time frame
c. None of the listed options
d. Time frame, Cost of financing, Buyers trade associates

82. What is line of credit?


a. Revolving credit agreement
b. A formal legal commitment to extend credit up to maximum amount
over a stated period of time
c. Similar to credit card
d. None of the listed options
e. Irrevocable credit provided by financial institution

83. TARP stands for which of the following options?


a. Troubled assets reform program
b. None of the listed options
c. Troubled asset relief program
d. Term asset Relief program
e. Term asset reform program

84. The type of loan in which spread varies over the life of the loan is called
________
a. Positive spread loan
b. Floating rate loan
c. Fixed rate loan
d. Semi- fixed rate loan
e. Negative spread loan

85. _________ of a securities trade involves the transfer of the securities


from the seller to the buyer
a. Trading
b. Settlement
c. Netting
d. Clearing

86. Banks are financial inter-mediatory that


a. should not be allowed to open saving accounts
b. link depositors to the borrowers
c. Do not operate efficiently in the financial system
d. Help connect public to the central banks
e. Are not required
87. Expand CNS
a. Continuous netting of securities
b. Company’s net securities
c. Clearing Net settlement
d. Continuous Net settlement

88. If the limit= $2000, margin =20%, and asset value =$2000, then
drawing power for an open ended loans is equal to?
a. 2000
b. 1600
c. 2400
d. 2200
e. None of the listed options

89. In normal distribution 99% confidence interval corresponds to


_________
a. 1.96 Sd
b. 2.33 Sd
c. 1 Sd
d. 1.65 Sd
e. 3 Sd

90. An investor indulging in short selling on share expects the share price to
decrease. Sate true or false

91. Inflation represents which of the following option

a. Increase in price
b. Decrease in price
c. Very high change in price
d. Economy crises
e. Currency Crises

92. Participation of more number of banks reduces the risk of lead bank.
State true or false

93. Money laundering refers to which of the following option

a. All of the listed options


b. Extending loans to corporate
c. Converting the profits from common activities into legitimate funds
d. Short term borrowing and placements

94. VISA is involved in which of the following?


I. Providing the interchange the systems to transfer data and funds
between the members
II. Set credit limits
III. Issue Credit cards
a. both I and II
b. III only
c. I only
d. ---------
95. Which of the following combinations hold true?
a. Wire Transfer, more costly than other payment alternatives
b. Commercial letter of credit, improves applicants credit facilities
c. Foreign checks, not useful for cross border trade
d. Documentary collection, strict compliance rule apply
e. Standby letter of credit, less costly than documentary collection

96. There are 5 participants A, B, C, D, E in a 25 million USD syndicated


loan and A is the lead manager. The borrower has agreed to pay 0.4%
($1, 00,000) participant with share in participants will share in
participant fee?
a. $1,00,000 will be received every month
b. $1,00,000 will be received affront
c. $1,00, 000 will be changed towards undrawn portion
d. None of the listed options
e. $1,00, 000 will be received every time money is withdrawn

97. The price paid for use of a financial liability and financial asset is called
___________
a. Financial Asset
b. Principal Interest
c. Interest
d. Financial liability

98. If an invest pays an interest at an annual rate of r % per year,


compounded twice a year, then what is the effective yield?
a. All of the listed options
b. Greater than r %
c. Equal to r %
d. Less than r %

99. VaR is measure of _______


a. Market Risk
b. Liquidity Risk
c. Credit Risk
d. Legal Risk
e. Operation Risk

100. Open ended loan allows the borrower additional amount subject to the
maximum amount less than a set value. State true or false

101. In private banking PTA stands for _______

a. payment to automate
b. Payable through account
c. Payable to automated means
d. Pay through action
e. Permission to act
102. Which of the following is not a derivatives instrument?
a. Equity
b. Swaps
c. Overdraft
d. Put option
e. Call option

103. Bank ABC interest rate on deposits is 7.30% and the interest rate on
loans is 9.25% during 2009. What is the spread for the bank?
a. 0.1655
b. 0.0225
c. None of the listed options
d. 0.0195

104. If a bank gets a deposit of $5000. Assuming a reserve requirement of


10% and that it circulates through 2 more banks, leading to which of
the following money multiplier effect?
a. It create a loan of $8550
b. None of the listed options
c. It creates a loan of $12195
d. It creates a reserve of $500
e. It create a reserve of $1000

105. In a syndicated loan of 100M, each participant commit for 25% of


loan. But due to exigencies if one participant reduces his shares to 22%
and offers to share equality, what will be reserved share of other
participants?
a. 0.3
b. 0.26
c. 0.29
d. 0.31
e. 0.24

106. You purchased stock for $40. One year later you received $2 as
dividend and sold the share for $48, How much is the return of the
holding period?
a. 45 %
b. 10 %
c. 25 %
d. 50 %
e. None of the listed options

107. The share price of a company may drop considerably from its current
level, in this scenario, what type of risk are the investors facing?
a. Company Risk
b. Liquidity Risk
c. Business Risk
d. Market Risk
e. Credit Risk
108. If R is the real rate of interest, N is the nominal rate of interest and I is
the rate of inflation, then
a. R= N - I
b. R= N * I
c. R= N / I
d. R= N + I

109. A clearing system in which a payment instructions between banks are


processed and settled individually and continuously through out the day
is called
a. RTGS
b. Clearing Services
c. Continuous linked settlement
d. Automated clearing house
e. Collection Services

110. If a bank erroneously posts the interest proceeds from a security held
by a investor A, into the account of investor B, this can be attributed to
a. Interest rate risk
b. Market Risk
c. Security Risk
d. Operational Risk
e. Liquidity Risk

111. Which of the following represents the correct hierarchy of corporate


rating (highest to lowest)?
a. D, AA, B, A
b. AAA, AA+, B, D
c. AAA, AA+, D, B,
d. AAA, AA, D, BB

112. The initial sale of security is in the _____ market, while subsequent
trading in the security is in the market ______
a. Money, Capital
b. Debt, Equity
c. Spot, Futures
d. Primary, Secondary
e. Secondary, primary

113. Purchase of account receivables at a discount is called ________


a. Bill of La___
b. Bills purchase
c. Discount
d. Forfeiting
e. Factoring

114. If total spread on underwriting $500000 and managers fee is $100000,


What is the amount which will be distributed in the syndicate
a. 500000
b. 400000
c. 100000
d. 600000
115. Dividend declaration is an example of
a. initial public offering
b. Investment banking
c. Merger and acquisition
d. Corporate action
e. Private banking

116. I deposit $100 in a bank. Banks loans out $90 out of it to someone
else who then invest the money in setting up new factory, what is this
process called?
a. Profit making tendencies of the investors
b. Sub-Prime effect
c. Economic boom effect
d. Money multiplier effect
e. None of the listed options

117. The term ‘settlement cycle’ refers to which of the following option?
a. Time period between the date on which the investor first makes the
decision to enter a trade and the date when the trade is settled
b. Time period between the date on which the trade is executed and the
date on which the trade is settled
c. None of the listed options are correct
d. Time period between the date on which the trade is cleared and the
date on which the trade is settled

118. If a finance instrument has 50% chance of paying 20% and 50%
chance of paying 60%. What would be the expected return?
a. 0.8
b. 0.5
c. 0.4
d. 0.2

119. which of the following is not correct for a personal loan


a. They are short term loans
b. The finance is not interested in the intention of the loan
c. No security required
d. Loan amount is not linked to borrowers repayment capacity
e. None of the listed options

120. Which of the following is not a measurement technique for Credit risk?
a. EAD
b. FIRB
c. Basic indicator approach
d. LGD
e. Probability of default

121. Which of the following is a treasury management system?


a. Front Arena
b. Pinnacle
c. Finnacle
d. TS2
e. Flex Cube
122. Which of the following is not a settlement method for a bank loans?
a. Participation
b. Securities Repository
c. Pre-closure
d. Sub-participation
e. Assignment

123. Company A has higher credit rating than company B, What does this
mean?
a. All of the listed options
b. Both are equally risky
c. Company B is more risky
d. Company A is more risky
e. There is no relation between credit rating and risk

124. Customer usually interact extensively with the banks mid and back
office. State true or false.

125. Secured bonds _______

a. are secured by assets of the issuing company and also have a higher
priority for repayment than unsecured debt
b. are only issued by large and financially sound companies
c. are secured by assets of the issuing company
d. have higher priority for repayment than unsecured debt

126. After a buyer and seller enter into a trade agreement, who indicates
the issue of LC?
a. None of the listed options
b. Buyer’s bank
c. Advising Bank
d. Sellers bank
e. Seller

127. Which of the following is true for stock market?


a. individual small investors can never make money in stock market
b. stock markets are always self regulated
c. stock markets are never fair
d. stock market facilitate secondary buying and selling of the shares
e. There can only be one stock market in the country

128. Securities with an original maturity of lesser than one year are traded
on money market. State true or false
129. From the given options identify the service(s) that can be categorized
under asset servicing line of the business
I. Corporate Action processing
II. Incoming Processing
III. Transfer agency services
IV. All of the listed options
a. I only
b. both I and II
c. III only
d. II only
e. IV

130. Identify the services offered by retail banks

a. All of the listed options


b. Saving and checking accounts
c. Personal Loans
d. Debit Cards

You might also like