CAIIB Bank Financial Management Questions and Answers

Hello Welcome in this article we have Provided CAIIB Bank Financial Management Questions and Answers 2022. If you are preparing for CAIIB BFM Exam 2022, Then you have landed at the Right Place Cet Mocktest brings you the Caiib Bank Financial Management Mock Test Series.

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In the Below Given Caiib Bank Financial Management Caiib Pdf We Have Selected 30 Important Questions from CAIIB Bank Financial Management Previous Year Question Papers. By referring Below Given Caiib BFM Mcq Pdf Aspiring CAIIB Students who are Preparing for IIBF 2022 Exams can Practice for their Upcoming Exams.

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CAIIB Bank Financial Management Questions and Answers

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Created on June 16, 2022 By

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BANK FINANCIAL MANAGEMENT

1 / 30

1 Transaction exposure can be hedged ......

By internal methods only

By external methods only

Either by internal methods or by external methods, but not by both

Either by internal methods or by external methods or a combination of both

2 / 30

2 A firm operating in India cannot hedge its foreign currency exposure through ......

Forwards

Futures

Options

None of the above

3 / 30

3 Under Basel III, the risk weight for capital charge for credit risk on the basis of standardised approach, does not match for claims on foreign governments (based on rating of international rating agencies such as S & P, Fitch, Moody's Rating), in respect of which of the following?

AAA to AA rating — 0%

BBB rating — 20%

Below B rating — 150%

unrated — 100%

4 / 30

4 Estimated impact of internal control depends on ...... (i) Historical effectiveness of internal controls, (ii) Estimated impact of internal controls on Risks, (iii) The above is estimated as fraction in relation to total control which is valued at 100%

Only (i) and (ii)

Only (i) and (iii)

Only (ii) and (iii)

(i), (ii) and (iii)

5 / 30

5 The rate quoted for inward remittances by TT/DD, where the cover fund has already been credited to our Nostro a/c is ......

TT buying rate

DD buying rate

Inter-Office rate

Cross rate

6 / 30

6 An irrevocable LC which authorises the advising bank to extend pre shipment /packing credit upto a certain amount to the beneficiary to enable him to meet pre shipment expenses is known as a / an ......

Irrevocable LC

Transferable LC

Revolving LC

Red Clause LC

7 / 30

7 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.

8 / 30

8 A Trading member Corporate Manager can set up ...... level and ...... level trading limits for any branch/ dealer of the trading member

Can set limits only for himself

Cannot set up limits

clearing member, trading member

branch, dealer

9 / 30

9 Integrated Risk Management is ......

To manage all risks that are associated with all the activities in an organization

The ultimate impact of all the activities lies on Revenue generation

The sum total of all risk impacts is a crucial factor

All these

10 / 30

10 If an order does not find a match in the trading system, it is ......

removed from the trading system after seven days

removed from the trading system at the end of the day

removed from the trading system on the expiry day

removed from the trading system when the buyer / seller wishes

11 / 30

11 Import letter of credits should be opened :

0% of FOB

110 % of CIF value

100% of CIF

Value given by customer

12 / 30

12 The systematic risk of a security ......

is likely to be higher in a rising market

results from its own unique factors

depends upon market volatility

cannot be diversified away

13 / 30

13 Anatol Bank manages a portfolio of bonds. It actively trades, seeking to enhance the portfolio's profitability. Which of the following is Anatol Bank most obviously exposed to?

Market risk

Operational risk

Technology risk

Insolvency risk

14 / 30

14 Bank-X's outstanding loans all have fixed interest rates, with maturities in excess of two years. The bank's deposit liabilities all have maturities of no more than six months. Bank-X most obviously is facing ......

Credit risk

Insolvency risk

Liquidity risk

Interest rate risk

15 / 30

15 Which of the following statements is/are correct? (i) Where Bank provides payment they are known as contingencies given, (ii) Off Balance Sheet exposure may not have Interest Risk, (iii) Where Bank is the Beneficiary, it is known as receivable contingencies

Only (i) and (ii)

Only (i) and (iii)

Only (ii) and (iii)

(i), (ii) and (iii)

16 / 30

16 The exchange loss / gain due to transaction exposure is reckoned on ......

Entering into a transaction in foreign exchange

Quoting a price for a foreign currency transaction

Conversion of foreign currency into domestic currency

Entry in the books of accounts

17 / 30

17 Internal hedge for transaction exposure does not include ......

Exposure netting

Choosing currency of invoicing

Cross hedging

None of the above

18 / 30

18 The features of liquidity risk are ...... (i) It may arise from funding of long term assets by short term liabilities, (ii) The liabilities are subject to Refinance Risk, (iii) Funding liquidity is inability to obtain funds to meet cash flow obligations

Only (i) and (ii)

Only (i) and (iii)

Only (ii) and (iii)

(i), (ii) and (iii)

19 / 30

19 Under Basel III, the risk weight for capital charge for credit risk on the basis of standardized approach,

does not match for claims on foreign public sector enterprises (based on rating of S & P, Fitch, Moody's

Rating), in respect of which of the following?

AAA to AA rating—20%

A rating—20%

BBB to BB rating—100%

unrated—100%.

20 / 30

20 Under Basel III, what is the risk weight for capital charge for credit risk on the basis of standardized approach, for claims on Bank for International Settlements, International Monetary Fund, Multi lateral Development Banks?

0 percent

10 percent

20 percent

50 percent

21 / 30

21 Asset in doubtful category for 4 years – Rs. 500000/-

Realization value of security – Rs. 300000/-

What will be the provision requirement?

Rs. 500000/-

Rs. 290000/-

Rs. 180000/-

Rs. 150000/-

22 / 30

22 12% government of India security is quoted at RS 120. If interest rates go down by 1%, the market price of the security will be?

120

133.3

109

140

23 / 30

23 Which of the following risk is managed at Portfolio level?

Credit Risk

Market Risk

Liquidity Risk

Operational Risk

24 / 30

24 Which type of risk arises When banks have more earnings assets than paying liabilities ?

Liquidity

Operational

Interest rate

Market

25 / 30

25 Which of the following methods to measure market risk is based on downside potential?

BPV (Basis Point Value)

Duration

VaR

none of these

26 / 30

26 Physical movements of goods into India is regulated by ......formulated by the ......

DGFT, exim policy

exim policy, DGFT

exim policy, RBI

RBI, trade policy

27 / 30

27 What kind of risk on settlements is covered by 'Herstatt Risk' for which BCBS was formed?

Exchange rate risk

Time difference risk

Interest rate risk

None

28 / 30

28 In the event of default credit risk (potential changes in the credit quality of the borrower), a fraction of the obligations is paid. This is known as ...... rate.

market

credit

recovery

NPA

29 / 30

29 Financial Risk is defined as ......

Uncertainties resulting in adverse variation of profitability or outright losses

Uncertainties that result in outright losses

Uncertainties in cash flow

Variations in net cash flows

30 / 30

30 What is the most critical function of Risk Management?

Measurement of risk

Identification of risks

Estimating the costs of risk

Controlling the level of risk to an organization's capacity

Your score is

The average score is 30%

Caiib Bank Financial Management Caiib Pdf (Download)

Bank Financial Management Mock Test

Candidates should have completed JAIIB before appearing for IIBF CAIIB Exam.

CAIIB Exams Consists of 2 compulsory papers and One Elective paper :

Compulsory Papers

1. Advanced Bank Management
2. Bank Financial Management

Elective Papers

1. Rural Banking
2. Retail Banking
3. Human Resources Management
4. Information Technology
5. Risk Management
6. Central Banking

CAIIB Exam Fees 2022

First attempt fee – 3,000*
Second attempt fee – 1,300*
Third attempt fee – 1,300*
Fourth attempt fee – 1,300*

Bank Financial Management Caiib Pdf

1. What is Minimum marks for passing JAIIB, CAIIB and Diploma in Banking & Finance Exam?

Minimum passing marks for JAIIB, CAIIB and Diploma in Banking & Finance Exams is 50 out of 100 marks in each subject or at least 45 marks in each subject with a total of 150 marks in all subjects put together in any single attempt.

2. Is there any Negative Marketing in IIBF Exams?

There are no negative marks for wrong answers.

3. Who Can Give JAIIB / CAIIB Exams?

JAIIB and CAIIB exams are not mandatory certifications. But they are useful to Bank employees in Career Growth, Promotion and Salary Increment.

4. Total Number of Questions asked in CAIIB Exams?

Total No of Questions – 100 MCQs including 40 case studies (Approx). and Exam Duration will be 2 Hours.

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Mock TestBook is created to help Students who are preparing for Competitive Exams. In this article we have provided CAIIB Bank Financial Management Questions and Answers 2022 for Banking Students, Who are Preparing for IIBF CAIIB Examination.

CAIIB Bank Financial Management Questions and Answers

Bank Financial Management Mock Test

Bank Financial Management Caiib Pdf

1. What is Minimum marks for passing JAIIB, CAIIB and Diploma in Banking & Finance Exam?

2. Is there any Negative Marketing in IIBF Exams?

3. Who Can Give JAIIB / CAIIB Exams?

4. Total Number of Questions asked in CAIIB Exams?

Cet MockTest Social accounts

Thankyou for Visiting Cet MockTest.

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