Bfm qtns recollected on memories
SPOT : Settlement of funds takes place on the second working day
1. If spot GBP is 1.6000, and 1 month forward as 1.6050, then GBP is
Compounded
2. The interest factor is the basic factor in arriving at the forward
rate, in a perfect market.
3. The date of settlement of funds is known as value date. (credited
into Nostro account on 10 and message received by our bank on
11th what is value date. 11th
4. Problem based on Excess of assets over the liabilities (Long
position: The buying of a security such as a stock, commodity or
currency, with the expectation that the asset will rise in value.)
5. Who prescribes guidelines and rules of the game in forex market
operations, merchant rates, quotations etc. FEDAI
6. For retirement of import bill : 1) TT Buying 2) TT Selling 3) Bill
buying rate 4) non
7. Cross rate problem: GBP/USD & USD/INR combination.
8. Problem on Bill due date + usance period 30 days. Due date is 17
Feb in exam answer is none of the above.
9. The risk of failure of the counter party during the course of
settlement due to the time zone differences between the two
currencies to be exchanged Answer: Herstatt risk.
10. To trigger the limit or say maximum loss limit for adverse
movement of rates. Stop loss limit
11. Mumbai branch of abc bank maintaining an USD account with
New York branch of xyz bank. In the books of abc Mumbai branch
NOSTRO account
12. In Problem one straight question for VOSTRO account.
13. In same problem on question on mirror account. (reconciliation
of entries in the nostro account in abc bank Mumbai books.)
14. TARGET facilitates receipts and payments of funds across the
EURO Zone on RTGS system.
15. If a person abroad want to send money speedily he will use 1)
SWIFT 2) RTGS 3) NEFT 4) PAPER DD.
16. Which is wrong statement for OCB
1) Predominantly owned by NRI
2) Owner ship of NRIs should be minimum 60%
3) The facilities for investment into India, granted to OCBs were
almost similar to those granted to individual NRI. (3 is the
Answer: Because now not allowed from 16.09.2003)
18) A is an Indian origin person married a foreigner B. Got 2 sons M
& N. On M married a oman lady f, N is doctor settled in Pakistan by
marring G.
1ST question) B can open NRI account jointly with A
2nd question) M is an NRI
3rd question) G cannot open NRI account as she is a Pakistani.
19) UCPDC-600 all are irrevocable LC
20) Back to Back LC : on the strength of export LC.
21) The importer id required to submit Bill of entry, evidencing
import of good into India.
22) Ecgc classification - 7
23) The ultimate responsibility for designing and implementation of
ICAAP lies with 1) bank’s board of directors 2) RBI 3) FEDAI
24) Who is the nodal agency of EMF – EXIM Bank
25) By using interest rate swaps, forward rate agreements between
2 currencies, using cross currency or financial futures. Interest
Rate Risk is mitigated
26) running ac facility gives Embedded option risk
27) LC discount had default risk which leads to funding risk
28) long duration bonds are more Sensitive
29) prepayment of loans Embedded option risk
30) how may diamond dollar accounts an importer can maintain 5
31) CBLO is issued by CCIL
32) Not a constituent part of tier ii capital – innovative perpetual
debt instruments
33) If the daily volatility of the stock is .02 % what is it 10 day
volatility