Recollected Questions BFM | Caiib Study Material

CAIIB Exam Study Material: Recollected Questions BFM | Caiib Study Material

Caiib Previous Year Questions

ABC Bank has the following re-pricing assets and liabilities (Rs. in crores):

Call Money - 500
Cash Credit Loans - 400
Cash in Hand - 100
Saving Bank - 500
FD - 500
Current Depost - 200

There is a reduction in rate of interest by 0.5% in call rates, 1% for CC, 0.1% for SB and 0.8% for FD.

Now, answer the following based on the above information.

1. What is the adjusted gap in re-pricing assets and liabilities?

a. 100 Cr
b. 120 Cr
c. 140 Cr
d. 160 Cr

Ans - a

Adjusted gap :

= (SB+FD) - (Call money+CC)
= (500 + 500) - (500 + 400)
= Rs.100cr (assets are less than liabilities. Hence negative gap).

The cash in hand and current account deposits are not subject to re-pricing, Hence these have been ignored.

2. Calculate the amount of repricing assets as per the standard gap method in repricing assets and liabilities.

a. 300 Cr
b. 450 Cr
c. 650 Cr
d. 800 Cr

Ans - c

Call money 500 * 50% = Rs.250cr + Cash credit 400 * 100% = 400cr Total = 650cr

3. Calculate the amount of repricing liabilities as per the standard gap method in repricing assets and liabilities.

a. 300 Cr
b. 450 Cr
c. 650 Cr
d. 800 Cr

Ans - b

Explanation:SB 500 * 10% = 50cr + FD 500 * 80% = 400cr Total = 450cr

4. What is the standard gap of the bank in repricing assets and liabilities?

a. 100 Cr
b. 200 Cr
c. 300 Cr
d. 400 Cr

Ans - b

Assets :

Call money 500 * 50% = Rs.250cr + Cash credit 400 * 100% = 400cr
Total = 650cr

Liabilities :

SB 500 * 10% = 50cr + FD 500 * 80% = 400cr
Total = 450cr

Net change = 650 - 450 = Rs.200cr positive
.............................................

All demand bills in foreign currency drawn under and import LC will be crystalised into Rupee liability on th day from the date of receipt of document.

a. 10
b. 7
c. 15
d. 30

Ans - c
.............................................

We issued the L/C as follows: L/C expired: Dec 27, 2018 at beneficiary’s country Latest shipment date: Dec 06, 2018 Period of presentation: documents to be presented within 21 days after date of shipment but within the validity of credit, state documents acceptable. Which of the following is acceptable?

a. B/L on board date: Dec 01, 2018, all documents presented on Dec 25, 2018
b. B/L on board date: Dec 01, 2018, all documents presented on Dec 31, 2018
c. B/L on board date: Dec 10, 2018, all documents presented on Dec 25, 2018
d. B/L on board date: Dec 01, 2018, all documents presented on Dec 15, 2018

Ans - d
.............................................

In which type of accounts of NRI, joint account can be opened with resident?

a. FCNR
b. NRE
c. NRO
d. Any of the above

Ans - c
.............................................

A derivatives contract cannot exist without an ......

a. Exchange
b. Underlying be it equity, interest rate etc.
c. increase in volatility
d. increase in arbitrage

Ans - b
.............................................

A quotation in which the home currency unit is the standard unit and the rate is expressed in variable units of foreign currency is called ......

a. direct rate
b. spot rate
c. indirect rate
d. forward rate

Ans - c
.............................................

NSCCL monitors positions of trading members ......

a. Offline
b. End of the day
c. Once a week
d. Online

Ans - d
.............................................

How much foreign exchange can be drawn in a financial year for Foreign Visits / Travel Abroad for the following purposes?

1. As gift to a person residing outside India or as a donation to an organization outside India