Diploma in Islamic Banking Examination, April-2024

Part :II
201: Investment Management
Full Marks: 100; Pass Marks: 45
Time: 3 Hours
(N.B.: Answer any 5 (five) of the following questions. The figures in the right margin indicate full marks.)
1 a. Explain the differences between “Investment and Speculation” 4
b. Describe problems and prospects of sharing mode of investment in the context of 8
Bangladesh experience.
c. Briefly discuss the investment schemes of your bank which facilitates the consumer. 8
2 a. What is the classification of investment? Explain the impact of classification on the 7
profitability of the bank.
b. What are the main components of NPI? Point out the preventive & remedial measures of 7
NPI.
c. “Recovery, Recovery & Recovery” Explain the main focus and activities of Investment 6
Recovery with your own experience.
3 a. Write about Document Verification Certificate (DVC), Material Documents and Less 10
Material Documents with example. How does documentation contribute to safeguard
bank’s investment? Discuss.
b. What is the Charge Creation? Define the methods of Creating Charge on different 6
securities.
c. Distinguish between Bank Guarantee and Indemnity. 4
4 a. Describe the objectives of using Ratio Analysis by various parties concerned. 8
b. The balance sheet of ABC Venture Ltd as on 31st December,2023 has been presented
below:
Liabilities & Equity Amount (Tk.) Assets Amount (Tk.)
Paid-up Capital 15,00,000 Fixed Assets 16,50,000
Reserve Surplus 6,00,000 Inventories 9,10,000
Bond (Long Term) 5,00,000 Account Receivable 12,40,000
Bank Overdraft 2,00,000 Investment 1,60,000
Sundry Accounts Payable 12,00,000 Cash 40,000
Total Liabilities & 40,00,000 Total Assets 40,00,000
Equity
Annual sales Tk.74,40,000 Gross Profit Tk.7,44,000 Received. Calculate the following
ratios for the year 2023: 2x6=12
i) Debt- Equity Ratio ii) Current Ratio
iii) Proprietary Ratio iv) Gross Profit Ratio
v) Account Receivable Turn Over Ratio vi) Inventory Turn Over Ratio
5 a. Discuss the phases of Capital Budgeting. 6
b. Differentiate between “Business Risk and Financial Risk”. 8
c. Discuss the importance of Client Rating? How does it impact on the capital adequacy? 6

Page 1 of 2
6. a. What do you mean by Internal Rate of Return (IRR)? 5
b. XYZ International Ltd. is considering the expansion of a business line, which would
require acquisition of a machine costing Tk.1,65,000. The project is expected to survive
05 (Five) years. The expected Cash Flow Before Tax (CFBT) is as follows :
Year CFBT
1 Tk.45,000
2 Tk.40,000
3 Tk.30,000
4 Tk.55,000
5 Tk.50,000
The company uses Straight Line Depreciation Method. Salvage Value of the machine is
expected to be Tk.15,000. Assume a 30% Tax Rate and Cost of Capital of 10%.
Required: Determine the following- 3x5=15
i. Payback Period
ii. Average Rate of Return
iii. Discounted Payback Period
iv. Net Present Value
v. Profitability Index
Year 1 2 3 4 5
PVF at 10% 0.909 0.826 0.751 0.683 0.620
7 a. Justify the CMSME financing by commercial banks in a country like Bangladesh. What 10
problems do the bank face in financing CMSME Enterprise? Discuss.
b. Explain the need to follow up the investment of a bank. How would you ensure the 10
effective supervision of investments by Islamic banks?
8 Write short notes on any 05 (five) of the following: 5×4 = 20
a. Pari-Passu Charge and Second Charge e. Working Capital Cycle
b. Credit Guarantee Scheme f. Written-Off Investment
c. Investment Restructuring g. Base for Provision
d. BEP & ERR

The End

Page 2 of 2
 Diploma in Islamic Banking Examination, April-2024
Part : II
202: International Trade and Finance
Full Marks: 100; Pass Marks: 45
Time: 3 Hours
(N.B.: Answer any 5 (five) of the following questions. The figures in the right margin indicate full marks.)

1. a) Define Foreign Exchange and International Trade? International Trade is closely 6

related with national economy- explain your opinion.
b) What are the components of BOP and BOT? 6
c) What is the effect of trade deficit on economy? 6
d) Briefly write down the importance of remittance in the prevailing market. 2
2. a) Define Letter of Credit. What are the parties involved in Letter of Credit? 6
b) “Banks deal with documents, not with goods or services”, explain. 4
c) Discuss the importance of foreign trade in the economy of Bangladesh. 7
d) How to issue discrepant notice against discrepant documents under UCP-600? 3
3. a) Discuss the following trade payment methods, their advantages and 3x4=12
disadvantages:
i) Payment in Advance
ii) Open Account
iii) Documentary Credit
iv) Documentary Collection
b) Describe the functions of Treasury in a bank, briefly. 6
c) Define Foreign Exchange Risk. 2
4. a. Discuss the following modes of Foreign Trade practiced in Islamic Banks: 5x3=15
i) Bai Salam and Bai Istisna
ii) MDB and Bai-as-Sarf
iii) PIF and MIB
b. What are the Local and Foreign Regulations for conducting International Trade? 5
5. a) What do you mean by UPAS L/C? 3
b) Define Inco-terms? Why Inco-terms are so important in the International Tade? 5
c) Describe salient features of the newly introduced FC A/C: 6x2=12
i) MRFCD
ii) MIBA Account
6. Explain any 05 (Five) of the following terms as per UCP-600: 5×4=20
i) Commercial Invoice
ii) Negotiation
iii) Credit
iv) Clean Transport Document
v) Honour
vi) Confirmation
vii) Complying Presentation
Page 1 of 2
7. a) What do you mean by Exchange Rate? Write the methods of calculating 5
exchange rate.
b) Define Direct Quotation and Indirect Quotation with example. 3
c) A valued customer wants to remit GBP 14,500 through FTT for his daughter 12
studying aboard. Calculate the rate considering the following facts:
i. GBP/USD Rate 1.2670-1.2675
USD/BDT Rate 110.05-110.10
ii. FTT Charge 0.10%
iii. Profit Margin 0.15%
iv. Fixed Overhead Cost Tk.0.20 (Per GBP)
v. Rebate to be allowed to the client 0.25% for a period of 15 days
(360 days in a year)

8. Write short notes on any 05 (Five) of the following: 5×4=20

i) Cash Incentive Facility
ii) SWIFT
iii) TBML
iv) ERQ
v) EDF
vi) ACU
vii) Off-shore Banking
viii) BC Selling Rate

THE END

Page 2 of 2
 Diploma in Islamic Banking Examination, April-2024
Part :II
203: Ethics in Banking & Legal Environment
Full Marks: 100; Pass Marks: 45
Time: 3 Hours

(N.B.: Answer any 5 (five) of the following questions. The figures in the right margin indicate full marks.)
1. a) What is Business Ethics? Why ethics is important in banking profession & financial 6
institutions?
b) Mention the Laws/Acts relating to the banking activities in the context of Bangladesh. 4
c) Why legal and regulatory framework is obvious for Islamic banking and finance? Mention 10
the legal framework & guidance of Bangladesh Bank for operation of Islamic banking in
Bangladesh.
2. a) What is Simple (General) Mortgage & Registered Mortgage? Which mortgage is 6
preferable between these two for banking industry and why?
b) What are the probable causes for increase of default investments in the banking industry? 10
Give suggestions for combating the same.
c) Why Bangladesh Bank is called “Lender of Last Resort”? 4
3. a) “Alternative Dispute Resolution (ADR)” may play a significant role for early settlement 7
of “Artha Rin Suit” filed in the Artha Rin Adalat- Do you agree with this statement?
Explain.
b) “Artha Rin Adalat Ain-2003 is a special law for the protection of investments of a bank”- 6
Explain.
c) Narrate the procedures to be followed by a bank/financial institution in putting a 7
mortgaged property on auction under Section-12 of Artha Rin Adalat Ain.
4. a) What is “Money Laundering”? Briefly state the stages of money laundering as per 5
“Money Laundering” & Prevention Act,2012 (Amendment up to 2015).
b) Who is a “Walk-in-Customer”? What pre-cautionary measures to be taken in case of 5
rendering banking services to a “Walk-in-Customer”?
c) What is Credit Based Money Laundering? Why money laundering is a burning issue now 10
a days? What is Enhanced Due Diligence (EDD)?
5. a) “Agreement enforceable by law is a contract”-explain in the light of Contract Act-1872. 8
b) Can a Minor enter into a Contract? What procedures are to be followed for opening an 6
Account of a Minor?
c) Who is an “Authorized Dealer” as per Foreign Exchange Regulation Act-1947? 6
6. a) Choose the correct answer from the followings: 5×1 =5
i) “Company Matters” is the original jurisdiction of –
a. Appellate Division
b. High Court Division
c. Megistrate Court
d. Sessions Court.

Page 1 of 2
 Diploma in Islamic Banking Examination, April- 2024
Part : II Subject Code: 204
Subject Name: Management Accounting and Financial Management
Full Marks: 100 Pass Marks: 45
Time: 3 Hours
(N.B.: Answer any 5 (Five) Questions selecting at least 2 (two) questions from each section. The figure in the
right margin indicates full marks. Answer to the question must bear workings, notes, and formula where necessary)
Section-I: Management Accounting
1. a) Define Management Accounting. Discuss the tools and techniques used in 8
Management Accounting for planning, controlling and making decisions of banking
business.
b) Mim Corporation produces and sells a single product. Selected cost and operating 12
data relating to the product for the two years given below:
Selling price per unit Tk. 50
Manufacturing costs:
Variable cost per unit produced Tk. 20
Fixed manufacturing overhead per year Tk. 1,20,000
Selling and administrative expenses:
Variable per unit sold Tk. 4
Fixed per year Tk. 70,000
Year-1 Year-2
Units in beginning inventory - 2,000
Units produced during the year 10,000 6,000
Units sold during the year 8,000 8,000
Units in ending inventory 2,000 -
Required:
i. Prepare an Income Statement for each year assuming the company uses
Absorption Costing and Variable Costing.
ii. Reconcile the Variable Costing and Absorption Costing Net Operating
Incomes.
2. a) Why is Acid-Test Ratio considered as a better indicator of liquidity of business 6
firms? State the ratios that an investor should take into consideration before making
investment in securities of capital market.
b) Selected financial ratios of a firm with corresponding industry average are shown
below:
Ratios Firm Industry
Average
Current Ratio 3.2 times 2.5 times
Acid-Test Ratio 1.75 times 1.9 times
Debt to Asset 23% 33%
Inventory Turnover 8.7 times 5.5 times
Average Collection Period 33 days 40 days
Net Profit Margin 3.8% 3.5%
Return on Investment 11.5% 9.75%

Page 1 of 3
 Requirements: 4x3=12
i) Evaluate the financial health of the firm compared to its industry
average as regards to Liquidity, Solvency, Activity and Profitability.
ii) Give a suggestion to the firm for improvement of financial health in 2
future.
3. a) Distinguish between a Static Budget and a Flexible Budget. Which one is better for a 5
business and why?
b) XYZ Corporation, a large wholesaler of edible oil, needs a cash budget for the month 15
of March, 2024. The following information is available:
i) The cash balance at the beginning of January, 2024 is Tk.2,000.
ii) Actual sales of January, February 2024 and expected sales of March,
2024 are as follows:
(Amount in Tk.)
November, 2023
D December, 2023 January, 2024
Cash Sales 800 900 1,000
Sales on Account 2,000 2,200 2,400
T oa Total Sales 2,800 3,100 3,400

Sales on account are collected over a three months’ period in the following ratio:
10% will be collected in the month of sales, 70% will be collected in the month
following sales and 15% in the second month following sales. The remaining 5% will
be uncollectable.

iii) Purchases are paid in the following month after purchase. The purchase of
February, 2024 was Tk.2,500.
iv) Selling and administrative expenses for March, 2024 are budgeted at
Tk.300 million of which depreciation is Tk.50.
v) Equipment costing Tk.200 will be purchased in January, 2024.
vi) In January Tk.300 cash dividend will have to be paid.
Requirements: Prepare a Cash Budget for the month of March, 2024.
4. Write short-notes on any 5 (five) of the following:
5x4=20
i) Price-Earnings Ratio
ii) Absorption Costing
iii) Margin of Safety
iv) Window Dressing
v) Zero-Base Budgeting
vi) Capital Employed
vii) Cross-Sectional Analysis
viii) Return on Equity

Page 2 of 3
 Section-II: Financial Management

5. a) What is meant by Effective Rate of Return? Why is it different from Nominal Rate of 5
Return?
b) You want to open Mudaraba Term Deposit Receipt Account (MTDRA) for Tk. 1,00,000 in 8
Islamic Bank on auto renewal basis. You have been informed that provisional rate of profit
for 3 months MTDA is 8% followed by 8.25% for 6 months and 8.50% for 12 months.
Requirements:
i) What would you get at the end of three years on each alternative?
ii) Calculate effective rate of profit on each alternative. Which plan you should
choose and why?
c) Islamic Bank sanctioned an investment of Tk. 10,00,000 to a client at 12% rate of return per 7
annum for 5 years repayable at equal end-of- month payments.
Requirements:
i) Calculate the amount that shall be paid by the client as monthly installment.
ii) Prepare an amortization schedule for this investment.
6. a) Discuss the Internal Rate of Return (IRR) as a technique of capital budgeting used for 5
project appraisal.
b) A company is considering a project valuing Tk.4,00,000 having cash flows before tax
throughout its whole life is given below:
Year 1 2 3 4 5
Amount (Tk.) 1,00,000 1,00,000 1,50,000 1,50,000 2,50,000
The company uses straight line method for calculation of depreciation. Tax rate is 50% and
salvage value of the project is zero. Cost of capital is 10%.
Requirements:
i) Determine the Payback Period, Average Rate of Return, Net Present Value, and 4x3=12
Internal Rate of Return of the project
ii) Evaluate the acceptability of the project. 3

7. a) Define Cost of Capital. Why the cost of equity capital is higher than the cost of debt capital 5
of a firm?
b) The Ha-Mim Company has the following capital structure:
Sources of capital Amount (Tk.)
10% Bond 1,00,000
12% Preferred Stock 1,00,000
Common Stock 3,00,000
Total 5,00,000
Currently the company’s common stock is selling at Tk.120 per share with current dividend
of Tk. 5 per share. The company’s dividend is expected to grow at a constant rate of 5%.
The company is in 40% tax bracket.
Requirements:
i) Calculate the Weighted Average Cost of Capital (WACC) of the company. 8
ii) Compute the new weighted average cost of capital (WACC) if the company 7
raises an additional Tk.2,00,000 by issuing 14% bond. This would result to
increase the expected dividend to Tk.6 but the price of per share will fall to
Tk.115 with same growth.
8. a) Is lease a source of financing? Explain. How does Mudaraba differ from Islamic financial 7
tool of Musharaka.
b) Can a firm always pay high dividend if it earns high profit? Explain. 5
c) Discuss the factors that determine the working capital requirements of a firm? 8

The End
Page 3 of 3
 Diploma in Islamic Banking Examination, April-2024
Part :II
205: E-Banking
Full Marks: 100; Pass Marks: 45
Time: 3 hours
(N.B.: Answer any 5 (five) of the following question. The figures in the right margin indicate full marks.)

1. a) Describe components of CPU (Central Processing Unit) of a Personal Computer. 8

b) What is the Open Source Operating System? How does it differ from proprietary OS?
Give some examples of Open Source OS that are used in your Bank. 7
c) What are the functional differences between PC and Server? 5
2. a) As an IT Officer, what steps dou you think should be taken to ensure IT security of the 5
Branch you work at?
b) Describe different types of storage system of Computer and Server. 6
c) Write down the names and functions of network devices that are used in the Branch 6
premises of a Bank.
d) What is VPN? How does it work? 3
3. Distinguish between the following terms: 5x4=20
a) Dual Currency Debit card and Credit card b) Agent Banking and Mobile Banking
c) Branch POS and Merchant POS d) DC and DRS e) CellFin and iSmart
4. a) What are the importance and functions of Data encryption and decryption? 6
b) What is signature, CC and BCC while sending email? 6
c) What are the policies and practices to handle emails securely? 8
5. a) What is Contact Centre? Mention the services provided by Contact Centre. 5
b) Describe the different types of cards alongwith their features issued by your Bank. 8
c) Mention the services provided by CRM. 4
d) What is the 2FA? Where it is used? 3
6. a) Describe the responsibilities of Digital Banking Department of a Branch. 5
b) Mention the transactional and non transactional activities performed through CellFin. 5
c) Describe the procedure of debit approval for iBanking and CellFin user. 5
d) What is payment gateway? What is the role of payment gateway in e-commerce 5
transaction?
7. a) What do you mean by Micro merchant? How micro merchants are on-boarded through 6
CellFin?
b) What is Bangla QR? Discuss the role of Bangla QR to build a cashless economy. 6
c) “Future Banking is moving towards digital transformation”- Explain it. 8
8. Write short notes on any 5 (five) of the following: 5x4=20
a. Digital Nano Financing b. RPA (Retail Personal Account)
c. Account opening through eKYC d. Cashless Bangladesh- Smart Bangladesh
e. Phishing mail f. IDTP
g. Cloud Computing h. CTR & STR Reporting

The End
 Diploma in Islamic Banking Examination, April-2024
Part : II
206: Micro Finance & Rural Banking: Conventional & Islamic
Full Marks: 100; Pass Marks: 45
Time: 3 Hours

(N.B.: Answer any 5 (five) of the following questions. The figures in the right margin indicate full marks.)

1. a) Define Microfinance & Microcredit and their major features. 8

b) Describe major activities of RDS including welfare oriented activities. 8
c) What are the advantages of Microfinance? How does it work? 4
2. a) The major focus of Islamic Microfinance is Family Empowerment, do you agree?- 10
Justify.
b) Discuss the socio-economic and cultural impact of Conventional Microfinance in 10
Bangladesh.
3. a) State the policy measures taken by Bangladesh Bank (BB) for promoting “Financial 10
Inclusion” in the country.
b) “SME sector is the key for economic development of a country like Bangladesh”- 10
Discuss.
4. a) What is Entrepreneur Development? 5
b) What are the characteristics of a good entrepreneur? 5
c) Describe the role of “Agent Banking” for providing banking service towards rural 10
people in the country.
5. a) What is Risk Management? Discuss the risks involved in Microcredit operations. 10
b) Dropout rate is high in microfinance, what strategies are needed to be adopted to arrest 10
dropout rate?
6. a) Do you consider MF as an effective tool for poverty alleviation? Explain. 10
b) Discuss the problems and prospect of Islamic Microfinance in Bangladesh. 10
7. a) Discuss in brief the role of following: 4x5=20
i) MRA ii) UPDS iii) Agent Banking iv) Women’s Entrepreneur through MF
8. Write short notes on any 05(five) of the following: 5x4=20
i) SBIS
ii) AMWAB
iii) Credit and Development Forum
iv) Off Firm Economic Activities
v) Financial Inclusion
vi) Self-Development
vii) Overlapping of Microfinance
viii) Hardcore and Marginal Poor

The End