Export import mcqs

EXPORT IMPORT CREDIT MCQs



1. Minimum andmaximum amount up to which the Gold Credit card can be issued to exporter is Rs

________ lac and Rs lac. : (a) 100,1000 (b) 50, 500 (c) 100, 5000

(d) 20,200 (e) None of these as it is based on anticipated turnover.**



2. Aspertheexchangecontrolregulations,thepaymentforexportsshouldingeneralberealizedwithina

periodof:(a) 12months fromdate of shipment** (b) 3months from date of shipment

(c) 6months fromthe date of shipment (d) 1month fromdate of shipment

(e) 45 days formdate of shipment

3. Units in a special economic zone are permitted to realise and repatriate to India the full export value of

goods or software within a period of......................................... from the date of shipment.

(a) 3months (b) 6months (c) 180 days (d) 360 days (e) none of these as there is no time limit*



4. In respectof shipmentsmade toIndianownedwarehouses abroad establishedwithpermissionof RBI,

export proceeds shouldbe realizedwithin:

(a) 6 months (b)3 months (c) 9 months (d)15 months* (e) 150 days



5. RBImonitorsoverdueexportbills-not realizedwithinthestipulatedtimeby calling for ahalf yearly

statement fromADs referredtoas : (a) BEF (b)XOS** (c) GTE-1 (d) ST-9 (e) ENC



6.Packing credit advances mean :

advances granted to industrial units for packing of manufactured goods for sale in Indiaadvances granted to eligible exporters for purchase/manufacture/processing/transporting/packing etc. of goods meant for export*

(c) advancesgrantedtoimporterstoenablethemtostoreandsubsequentlysellimportedgoodslocally

(d) any one or more of the above (e) none of the above.



7. To be eligible for packing credit advances the customer :

(a) should not be in the caution list of RBI or specific approval list of ECGC

(b) must be holding importer/exporter code number allotted byDGFT

(c) should be recognised export house (d) all above (e) both (a) and (b)**



8. Packing credit advances is normally allowed for :

(a) 90 days (b) 60 days (c) 360 days (d) 180 days (e) as per requirement of the exporter**



9. `Normal Transit Period ' in the context of export financemeans:

(a) the number of days the documents take to reach destination

(b) the gap between period taken by the ship and the documents to reach destination

(c) the number of days taken by a ship to complete a voyage

(d) the number of days fixed by FEDAI and is the average period normally involved from date of negotiation to credit to

NOSTRO account.**

(e) either (a)or (b)



10. For facilities grantedupto30.6.2010, rateof interestonpost shipment credit inrupeesupto180days in

respectofusancebills is :

(a) 12% (b) 15% (c) not exceeding BPLR

(d) not exceeding BPLR minus 2.5% (e) not exceeding BPLR plus 1.5%**



11. Refinance for export credit fromRBI is available for howmany days?

(a) 90 days . (b) 180 days** (c) 360 days (d) 270 days- (e) None of these



12. Refinance against eligible export finance is available from:

(a) RBI* (b) IDBI (c) ECGC (d) Exim Bank (e) None of these



13. On PCFC refinance is available to the extent of % of outstanding PCFC.

(a) 15% (b) 50% (c) 25% (d) Nil** (e) None of these



14. Forfacilitiesgrantedupto30.6.2010ConcessionalinterestrateonPostshipmentcreditinrupeesis

permittedupto:

(a) 180 days** (b) 90 days (c) 270 days (d) 360 days (e) None of these

15. Which of the following is not correct regarding Liberalised Remittance Scheme?

(a) Amount can be remitted for capital aswell as current account transactions

(b) Maximumamount that can be remitted in a financial year is restricted toUSD200,000

(c) Remittance for gift and donationwill bewithinUSD200,000 permitted under LRS

(d) Bank can allowadvance to a resident individual formaking remittance under this scheme**

(e) None of these



16_ For outward remittance formedical expenses, estimate fromthe doctor or hospital is required if the

remittance is more than USD : (a) 1 lac (b) 5 lac (c) 10 Lac (d) none of these as it is required in all cases



17. What is themaximumamount of inwardremittance that can bedone by a resident individual?

(a) USD 1 Lac (b) USD 5 lac (c) USD 10 Lac (d) None as there is no limit

*

18. How much amount can be released for remittance abroad for education on declaration basis and withou estimate

from educational institution?

(a) USD 1 Lac** (b) USD 5 lac (c) USD 10 Lac (d) None as there is no limit



19.Which of the following is true?

(a) If a bank has oversold position, Bankwill gain if the rate of foreign currency rises.

(b) If a bank has oversold position, Bankwill gain if the rate of foreign currency declines**

(c) If a bank has oversold position, Bankwill lose if the rate of foreign currency declines

(d) If a bank has overbought position, Bankwill gain if the rate of foreign currency declines

(e) None of these



20. ADsmay allowadvance remittance for import of goodswithout any ceiling.However, if the amount of

advance remittance exceedsUSD50,00,000 or its equivalent it ismandatory to obtain-

(a) unconditional irrevocable stand byUC of an international bank of repute situated outside India

(b) guarantee froman international bank of repute situated outside India(c) guarantee of anADinIndia, if such guaranteeis issuedagainst counter guarantee of aninternational

bankof reputesituatedoutside India

(d) any one of the above (e) either (a) or (b) only***



21. BEF statement containingdetailsof remittance exceedingUSD1,00,000where evidence of import is

not furnishedwithin6months fromdateof remittance is submittedby ADs toRBIon:

(a) monthlybasisby 10thof thefollowingmonth

(b) quarterlybasisby 15thof themonthfollowing closeofquarter

(c) half yearly basis forMarch/ September by 15th of succeedingmonth

(d) half yearly basis as of June/ December by 15th of succeedingmonth **(e) none of these





22. Crystallisation of import bill under UCmeans:

(a) bill is scrutinisedwhether it is as perUC terms or not

(b) it is ensured that currency of IJC and insurance is the same or not

(c) converting bill amount into Indian rupees and deciding customer's liability on due date in case of usance**

bill and on 10th day from date of receipt in case of demand bills.

(d) none of the above as the concept is gonewith the termination of PSCFC



23. ApplicationformakingpaymenttowardsimportsintoIndiahastobemadetoauthoriseddealersby

importersin:(a) ENC (b) R-3 (c) Form A-1 *(d) Form A-4 (e) none of the above





24. Advance remittance for import of goods into India is to be allowed after obtaining guarantee froman

international bank of repute situated outside India or guarantee of an AD in India against counter-guarantee of an

international bank when amount of advance remittance exceeds:

(a) US $ 10,000 (b) US $ 25,000 (c) US $5,000 (d) US $ 15,000 (e) US $ 50,00,000***



25. How much advance remittance is allowed for import of services without guarantee of a reputed

international bank?

(a) USD 1 Lac (b) USD 5 lac **(c) USD 10 Lac (d) None as there is no limit



26. Which of the following types of Bill of Lading is not acceptable by a bank under LC?

(a) On Board (b) Clean (c) Charter Party** (d) AN of these (e) None of these



27. Interest Subvention is available on rupee export credit at the rate of 2% for loan up to Rs

but

interest rate after subvention should not be less than 7%.

(a) Rs 3 lac (b) Rs 5 lakh (c) Rs 10 lakh (d) Rs 100 lakh (e) None of these**



-28. Interest rate charged by RBI on export refinance to banks is at the rate of :

(a) Bank Rate (b) Repo Rate** (c) Reverse Repo Rate (d) Base Rate (e) None of these



29. Export Refinance is provided by RBI at the rate of __________ % of eligible outstanding export credit?

(a) 15% **(b) 25% (c) 50% (d) 100% (e) None of these



30. R Return is submitted to RBI onwhich of the following dates of themonth?

(a) 7th and 2151 (b) 15th & last day **(c) 10th, 20th and last day (d) None of these



31.Overdue import demand bills and usance bills are crystalised onwhich dates?

(a)10thday&duedate **(b)15thdayand30thday (c)30thdayand60thday(d)10thdayand60thday(e)Noneofthese



132. Which of the following is incorrect regarding export declaration forms?



(a) GR formis usedfor declaration of exports other than by postwhere customoffice not linked to EDI

(b) ExportDeclaration formis not required to be submitted for exports up toUSD25000.

(c) Softex formis used for declaration of export of software in physical or electronic form.**

(d) None of these (e) All of these



33.. Presently rate of interest on pre-shipment credit in forex (PCFC) up to 180 days is not exceeding:

(a) 200 basis points above LIBOR ***(b) 100 basis points above LIBOR

(c) 150 basis points above LIBOR (d) 50 points above LIBOR (e) 350 basis points below LIBOR



34. As per current guidelines of RBI, for loans sanctioned up to 30.6.2010, rate of interest on pre-shipment credit in rupees up to

270 days should not exceed :

(a) Bank Rate plus 2.5% (b) BPLR plus 1.5% (c) BPLR minus 2.5%**

(d) Bank Rate minus 2.5% (e) lower of (a) and (b)



35. As per the exchange control regulations, the payment for exports should in general be realized within a period of:

(a) 12 months from date of shipment** (b) 360 days from date of packing of goods

(c) 180 days from the date of shipment (d) 270 days from date of shipment

(e) 180 days from the date of receipt of consignment by the buyer in foreign country



36. Which of the following is/are not true with regard to features of Gold Card Scheme for exporters:

(a) Only exporters whose accounts have been 'Standard' continuously for 3 years are eligible

(b) Gold Card holderswill be given preference is granting packing credit in foreign currency (PCFC)

(c) Time normfor disposal of fresh applications for credit under the schemewill be 25 days

(d) Gold Card for exporters will be issued for a period of 5 years (e) none of these**









EXPORTFINANCE

Case- STUDY

An exporter approaches the popular bank for pre-shipment loanwith estimated sales ofRs.100 lakh. The bank

sanctions a limit ofRs.50 lakh,with followingmargins: Pre-shipment loan on FOB value—25%; ForeignDemandBill -

10%; Foreign usance bilis—20%.

The firmgets an order forUSD50,000 (CIF) toAustralia.On 1.1.2011when theUSD/INRratewasRs.43.50 perUSD,

the firmapproached theBank for releasing pre-shipment loan (PCL),which is released.

On 31.3.2011, the firmsubmitted export documents, drawn on sight basis forUSD45,000 as full and final shipment.

The bank purchased the documents atRs.43.85, adjusted thePCL outstanding and credited the balance amount to the

firm's account, after recovering interest forNormalTransit Period (NTP). The documents were realized on

30.4.2011 after deduction of foreign bank charges of USD 450. The bank adjusted the outstanding post

shipment advance. against the bill. Bank charged interest for pre-shipment loan@7%up to 90 days and,@8%

over 90 days up to 180 days. For Post shipment credit, theBank charged interest@7%for demand bills and@7.5%

for usance (D/A) documents up to 90 days and@8.50%thereafter and on all over dues, interest@10%.

01 What is the amount that the Bank can allow as PCL to the exporter against the given export order,

considering the profit margin of 10% and insurance and freight cost of 12%?

a) Rs.2200000 b) Rs.1650000 c) R6.1485000 d) Rs.1291950

02What is the amount of post shipment advance that can be allowed by the Bank under foreign bills

purchased, for the bill submitted by the exporter?

a) Rs.19,80,000 b) Rs.17,75,925 c) Rs.19,73,250 d) Rs.21,92,500

03 What will be the period for which the Bank charges concessional interest on DP bills, from date of

purchase of the bill?

a) 90 days b) 25 days c) 31 days d) Up to date of realization

04 in the above case, when should the bill be crystallized (latest date), if the bill remains unrealized for

over two months, from the date of purchase-(ignore holidays)?

a) On 30.4.2011 b) On 24.4.2011 c) On 24.5.2011 d) On 31.5.2011

05 What rate of interest will be applicable for charging interest on the export bill at the time of realization,

for the days beyond Normal Due Date (NDD)?

a) 8% b) 7% c) 7.5% d) 10%

Ans. 1-d 2-c 3-b 4-c 5-d Explanations:

1. FOB value =

CIF Value i.e. 50000x43.5 = 2175000

Deduct Insurance & freight 12% of 2175000 = 261000

Balance = 1914000

Deduct profit margin 10% of 1914000 =191400

Balance = 1722600

Less Margin 25% = 430650

PCL = 1291950

2. 45000 x43.85=1973250

3. Concessional• rate will be charged for normal transit period of 25 days and there after overdue

interest will be charged.

4. Crystallisation will be done when the bill becomes overdue after 25 days of normal transit period. Date of

overdue will be 25.4.2011. if bill remains overdue, it will be crystalised within 30 days i.e. up to 24.5.2011.

5. Rate of interest will be 10%as the overdue interest is stated as 10%in the question.

Treasury management

Treasury Management – Concepts



Banks not only lend money to customers but also invest in securities such as Bonds and Debentures of Government as well as Corporates. These instruments are easily tradable in the capital and money market. The tradability of securities makes investments an attractive option for banks for deployment of their funds. Further, banks buy securities not only to trade but also to hold them till maturity to take advantage of the attractive returns with relatively lower risk. Banks are allowed to invest in shares of companies. However, the volumes are low due to associated high risk besides regulatory restrictions. The investment portfolio of the banks broadly divided into three groups viz.,

Trading Book - Securities purchased with the intention of selling them within 90 days are held in the trading book. Trading opportunities arise in the market on account of fluctuation in interest rates and arbitrage opportunities.

Available for Sale (AFS) - Securities which are bought with the intention of selling them but not necessarily within 90 days is considered to be AFS securities. They are also part of the trading portfolio of the bank but only the time frame is different. Both the trading and AFS securities have to be "Marked to Market" every quarter while finalization of quarterly results.

Held to Maturity (HTM) - These securities are meant to be held till their date of maturity and the purpose investing in them is to earn reasonable steady income. These securities are carried in the books at cost or purchase price till maturity. Hence, HTM securities need not be "Marked to Market" as the bank is certain of receiving the maturity value on the specified date. Banks are not allowed to shift securities freely from trading and AFS to the HTM book as this may lead to overstating of profit figures. However, banks can opt for shifting only once in a year to adjust their overall portfolio. Banks are permitted to exceed the limit of 25% of total investments under HTM category provided (a) the excess comprises of only of SLR securities and (b) the total SLR securities held in the HTM category is not more than 23% by March 2014.

Call Money Markets:

Call and notice money market refers to the market for short term funds ranging from overnight funds to funds for a maximum tenor of 14 days. Under Call money market, funds are transacted on overnight basis where as in case of notice money market; funds are transacted for the period of 2 days to 14 days.

Coupon Rate:

It is a rate at which interest is paid, and is usually represented as a percentage of the par value of a bond. It refers to the periodic interest payments that are made by the borrower (who is also the issuer of the bond) to the lender (the subscriber of the bond) and the coupons are

stated upfront either directly specifying the number (e.g.8%) or indirectly tying with a benchmark rate (e.g. MIBOR+0.5%).

Zero Coupon Bond / Deep Discount Bond:

The bond is issued at a discount to its face value, at which it will be redeemed. When such a bond is issued for a very long tenor, the issue price is at a steep discount to the redemption value. The effective interest earned by the buyer is the difference between the face value and the discounted price at which the bond is bought. The essential feature of this type of bonds is the absence of intermittent cash flows.

Commercial Paper (CP):

It is a short-term instrument to enable non-banking companies to borrow short-term funds through liquid money market instruments. CPs is therefore part of the working capital limits as set by the maximum permissible bank finance (MPBF). CP issues are regulated by RBI Guidelines issued from time to time stipulating term, eligibility, limits and amount and method of issuance. CP can be issued for maturities between a minimum of 7 days and a maximum up to one year from the date of issue. The maturity date of the CP should not go beyond the date up to which the credit rating of the issuer is valid. CP can be issued in denominations of Rs. 5 lakh and multiples thereof. It is mandatory that CPs should be rated by credit rating agencies. In a bid to make CPs attractive, the RBI has allowed issuers to buyback these instruments through the secondary market before maturity. It attracts stamp duty.

Certificates of Deposits (CDs):

It is a negotiable money market instrument and issued in dematerialized form or as a Usance Promissory Note, for funds, deposited at a bank or other eligible financial institutions to raise short-term resources within the umbrella limit fixed by RBI. CDs may be issued at a discount on face value. CDs differ from term deposit as they involve the creation of paper, and hence have the facility for transfer and multiple ownerships before maturity. Banks use the CDs for borrowing during a credit pickup, to the extent of shortage in incremental deposits.

Minimum amount of a CD should be one lakh and in multiples thereof. The maturity period of CDs should be not less than 7 days and not more than one year. However FIs are allowed to issue CDs not exceeding 3 years from the date of issue. Banks have to maintain the appropriate reserve requirements (CRR/SLR) on the issue price of the CDs. It attracts stamp duty. Banks/FIs cannot grant loans against CDs.

Securitization is an effective tool to reduce the mismatches in the maturities of assets and liabilities. It is a financing technique that involves pooling and re-packing of illiquid financial assets in to marketable securities. There are six players viz., Borrowers, Lending Banker (who becomes an originator for the Securitization transaction), Special Purpose Vehicle



(SPV), Credit Rating Agency, Investors and Service Providers. The process of securitization involves identification of financial assets, rating of these assets by the rating agency, creation of a SPV for handling the securitization transaction, assignment of future receivables in favour of the SPV, issuance of marketable securities based on these underlying financial assets and selling the same to the investors. The service providers recover the amount periodically and remit to the SPV and who in turn pass the benefit to the investors.

Asset and Liability Management:

RBI Guidelines: Of late, it is observed that PSBs have been accepting Bulk Deposits/Certificate of Deposits route to increase balance sheet size at very high interest rates, adversely affecting the profitability besides exposing the banks to ALM Risk. RBI directed banks not to accept Bulk Deposits beyond 10% of the total deposits and the total of Bulk Deposits & Certificates of Deposits should not exceed 15% of total deposits of the bank at any given point of time. An appropriate time-bound strategy for reduction of such existing bulk deposits should be put in place.

Adjusted Net Bank Credit (ANBC):

It denotes Net Bank Credit plus investments made by banks in non-SLR bonds held in HTM category. However, investments made by banks in the Recapitalization Bonds and Inter-bank exposures will not be taken into account for the purpose of priority sector lending targets/sub-targets.

Subordinate Debt:

It is a debt owed to an unsecured creditor that in the event of liquidation can only be paid after the claims of secured creditors have been met. Normally, subordinate debt ranks below other secured loans with regard to claims on assets or earnings.

Caiib mcqs

01 Financial markets that facilitate the flow of long-term funds with maturities of more than one year are known as ____________.

o money markets

o capital markets*

o primary markets

o secondary markets

02 Financial markets facilitating the issuance of new securities are known as

o ____________.

o money markets

o capital markets

o primary markets*

o secondary markets

03 ____________ are not considered capital market securities.

o bonds

o mortgages

o retail CDs*

o stocks

04 _________ are financial contracts whose values are obtained from the values of underlying assets.

o Bonds

o Mortgages

o Stocks

o Derivatives*

05 A bank's ______ quote is slightly higher than its _______ quote.

o ask; bid**

o bid; ask

o ask; transaction

o transaction; bid

06 In a(n) _________ market, all information about any securities for sale is continuously and freely available to investors.

o inefficient

o efficient

o perfect***

o imperfect

07 _________ are depository financial institutions.

o Savings banks***

o Finance companies

o Mutual funds

o Securities firms

08 In aggregate, ____________ are the most dominant depository institution.

o credit unions

o savings banks

o savings and loan associations

o commercial banks***

09 ________ sell shares to surplus units and use the funds received to purchase a portfolio of securities. They are the

dominant nondepository financial institution when measured in total assets.

o Securities firms

o Mutual funds**

o Finance companies

o Pension funds

10 The main source of funds for ________________ is deposits from households, businesses, and government agencies, while their main use of funds is the purchase of government and corporate securities and mortgages and other loans to households.

o savings institutions**

o commercial banks

o mutual funds

o finance companies

11 The Govt.government commonly acts as a surplus unit.

o True

o False*

12 An investor who holds bonds has partial ownership in a corporation.

o True

o False**

13 When security prices fully reflect all available information, the markets for these securities are said to be efficient.

o True**

o False

14 To prevent overreactions to rumors, so-called circuit breakers are now used to permanently halt the trading of some securities or contracts.

o True

o False

15 Securities firms can act both as brokers and as dealers.

o True

o False*

16 Which of the following is not a money market security?

o Treasury bill

o commercial paper

o bond**

o repurchase agreement

17 Treasury bills

o offer coupon payments.

o are sold at a discount from par value.***

o have a yield equal to the coupon rate.

o are not sold in the secondary market.

18 An investor purchases a six-month (182-day) T-bill with a Rs10,000 par value for Rs9,850. If the investor holds the Treasury bill to maturity, his annualized yield is ____ percent.

o 1.52

o 1.50

o 3.05**

o 3.01

19 An investor purchases a six-month (182-day) T-bill with a Rs10,000 par value for Rs9,850. If the investor holds the Treasury bill to maturity, the Treasury bill discount yield is ______ percent.

o 3.05

o 2.97**

o 3.01

o none of the above

20 An investor purchases a six-month (182-day) T-bill with a Rs10,000 par value for Rs9,850. If the investor had sold the T-bill after 100 days for Rs9,940, her annualized yield would be _______ percent.

o 3.34**

o 3.29

o 1.83

o 1.80

21 At a given point in time, the yield on commercial paper is __________ the yield on a T-bill with the same maturity.

o slightly lower than

o slightly higher than**

o about equal to

o none of the above

22 (Financial calculator required.) An investor would like to purchase a bond that has a par value of Rs1,000 and pays Rs60 at the end of each year in coupon payments. The bond has seven years remaining until it matures. If the prevailing annualized yield on other bonds with similar characteristics is 5 percent, how much should the investor be willing to pay for the bond?

o Rs1,000.00

o Rs1,057.86**

o Rs944.18

o none of the above

23 Jerry Garcia purchased a Rs1,000 par value bond with a 9 percent annual coupon rate and an original maturity of 20 years. The bond was issued four years ago, and the yield to maturity is 11 percent. What is the price Mr. Garcia should be willing to pay for this bond?

o Rs1,166.25

o Rs1,000

o Rs852.42***

o Rs840.73

24 If a bond pays interest semiannually, which of the following adjustments needs to be made to correctly compute the price of the bond?

o The number of years should be split in half.

o The annualized coupon should be doubled.

o The annual yield to maturity should be divided by 2.**

o The par value should be split in half.

25 A private investor is considering the purchase of a Rs1,000 par value bond paying interest semiannually. The bond has an annualized coupon rate of 8 percent, and bonds with similar characteristics pay interest rates of 6 percent. The bond has 15 years remaining to maturity. A fair price for the bond is Rs_________.

o 1,000.00

o 1,196.00**

o 1,194.24

o 827.08

26 If a bond sells above its par value, it is called a __________ bond.

o discount

o premium**

o callable

o convertible

27 If the coupon rate of a bond is _______ the yield to maturity, the price of the bond should be _________ the par value.

o below; above

o above; below

o above; above**

o above; the same as

28 7. A _________ than expected level of inflation will put _________ pressure on the value of bonds.

o higher; downward**

o higher; upward

o lower; downward

o none of the above

29 A zero-coupon bond sells for Rs1,000. Assume that the required rate of return changes from 6 percent to 5 percent. As a result, the price of the zero bond increases to Rs1,070. What is the bond price elasticity for this bond?

o -7.00

o -0.42****

o 0.42

o 7.00

30 A bond has a par value of Rs1,000 and pays Rs100 in interest every year. The bond has three years remaining to maturity, and the yield to maturity is 8 percent. What is the duration of this bond?

o 2.74 years**

o 1.23 years

o 2.64 years

o none of the above

31 Refer to question 9. The modified duration of this bond is _________ years.

o 2.40

o 1.14

o 2.54**

o none of the above

32 Three bonds comprise a portfolio that is valued at Rs500,000. The investment in the first bond is Rs100,000, the investment in the second bond is Rs200,000, and the investment in the third bond is Rs200,000. The first bond has a duration of 1.8 years, the second bond has a duration of 1.7 years, and the third bond has a duration of 2.0 years. What is the duration of the portfolio of bonds?

o 1.84 years**

o 1.50 years

o 1.69 years

o none of the above

33 In the ____________ strategy, funds are evenly allocated to bonds in each of several different maturity classes.

o matching

o laddered**

o barbell

o interest rate

34 Strong economic growth tends to place downward pressure on interest rates.

o True

o False**

35 As interest rates decrease, short-term bond prices increase by a greater degree than long-term bond prices.

o True

o False**

36 7. An investor purchases 270-day commercial paper with a par value of Rs2,000,000 for a price of Rs1,960,000. The yield is ______ percent.

o 2.76

o 2.67

o 2.72***

o none of the above

37 Which of the following financial institutions does not frequently participate in repurchase agreements?

o banks

o savings and loan associations

o money market funds

o All of the above frequently participate in repos.**

38 In the ____________ strategy, funds are evenly allocated to bonds in each of several different maturity classes.

o matching

o laddered**

o barbell

o interest rate

39 If short-term interest rates decline, the required rate of return on money market securities will ________, and the values of money market securities will _________.

o increase; decline

o decline; increase

o decline; decline

o increase; increase**

40 11. Which of the following securities probably has the lowest degree of default risk? a. Treasury bill

o negotiable certificate of deposit**

o banker's acceptance

o all of the above have the same degree of default risk

41 _________ have the highest degree of interest rate risk.

o Fixed-rate eurodollar CDs**

o Eurodollar floating-rate CDs (FRCDs)

o Floating-rate eurodollar loans

o All of the above are affected equally by an increase in interest rates.

42 The yield of a newly issued Treasury bill that is held to maturity will always be

Lower than the Treasury bill Discount.

o True**

o False

43 Commercial paper is a short-term debt instrument issued only by well- known, credit-worthy firms and is typically unsecured.

o True**

o False

44 When firms sell their commercial paper at a lower price than projected, their cost of raising funds will be higher than they initially anticipated.

o True**

o False

45 There is an active secondary market for repos.

o True**

o False

46 During periods of heightened uncertainty about the economy, investors tend shift from risky money market securities to Treasury securities.

o True**

o False

47 If a bond pays interest semiannually, which of the following adjustments needs to be made to correctly compute the price of the bond?

o The number of years should be split in half.

o The annualized coupon should be doubled.

o The annual yield to maturity should be divided by 2.**

o The par value should be split in half.

48 A private investor is considering the purchase of a Rs1,000 par value bond paying interest semiannually. The bond has an annualized coupon rate of 8 percent, and bonds with similar characteristics pay interest rates of 6 percent. The bond has 15 years remaining to maturity. A fair price for the bond is Rs_________.

o 1,000.00

o 1,196.00

o 1,194.24***

o 827.08

49 If a bond sells above its par value, it is called a __________ bond.

o discount

o premium**

o callable

o convertible

50 If the coupon rate of a bond is _______ the yield to maturity, the price of the bond should be _________ the par value.

o below; above

o above; below

o above; above**

o above; the same as

Forex individual recollected on 21.07.2019

 foreign exchange for individuals exam today (21.7.2019).
 I had only a day left for preparation and I felt question paper was not that tough. So , if u had prepared well, it shud have been Ur piece of cake.

A lot of questions were asked from first four parts.
Questions about LRS for immigration, medical,private visit, business...
Pls be thorough about types of accounts for residents and non residents..
EEFC , RFC , RFC (D)...
NRE,NRO,FCNR accounts....
Who all can use what accounts?
Can outward remittance be allowed? For what purposes?
Can foreign currency be credited ? Etc...
About FCRA..
Currency conversion 4 to 5 problems....(TT buying, selling,CN buying,CN selling rates... TC buying selling rates)
Reading the MCQ at end of each chapter can also get u three to four marks easily....
Two questions abt SNRR account....
How much currency can individuals carry with them to foreign countries like Iraqi. Libya. ...?
For Haji what limit is permitted?
Most of the questions were direct only...

Very important calculation limits of LC

Calculation of limit of Letter of credit:


It can be worked out on the basis of following:


 Average amount of LC - It depends on monthly consumption of the material to be purchased under LC and economic order quantity (EOQ). EOQ depends upon the source of supply, means of transport etc. EOQ is larger for imports compared with the domestic material.

Frequency of opening of LC - After fixing EOQ, the no. of LCs to be opened within one year can be calculated as : Annual consumption / EOQ. Frequency = 12 / no. of LC to be opened in one year.

Amount of LCs outstanding at one point of time - Outstanding time for an LC is based on

the Lead Time (date of LC to date of shipment) + transit time + usance period from date ofa receipt of goods.

If frequency of opening of LC is less than this, bank will have more than one LC outstanding at one point of time.

Calculation : Assume the following:

Lead time = 20 days, transit time =10 days and usance period = 6 m. Total time = 7 months.

Total annual consumption = Rs.6 cr, EOQ = Rs.i. cr.

On the basis of these assumptions :

No. of Les = 6/1 = 6 and Frequency of opening LC will be every 2 month. (12 / 6).

No. of LC outstanding at any point of time = 7 1 2 = 3.5 (rounded to 4).

Limit = Rs.x cr x 4 = Rs.4 cr (amount of one LC based on EOQ x no. of LC to outstand)

Current affair s on 01.08.2019

Today's Headlines from www;

*Economic Times*

📝 Ray-Ban maker sets sights on retail dominance with $8 billion GrandVision deal

📝 PM Narendra Modi asks officials to remove hurdles in 'Housing for All by 2022' mission

📝 Trent Q1 profit at Rs 36 crore

📝 Angel Broking receives Sebi nod for Rs 600 crore IPO

📝 Government receipts only 14% of full year target in April-June quarter

📝 Vedanta contributes 0.40% to India GDP, says study

📝 JSPL completes Rs 732 cr order to supply long rails to Indian Railways

📝 Blackstone acquires 6% in Future Lifestyle for Rs 545 crore

*Business Standard*

📝 Govt softens stance on time frame for transition to electronic vehicles

📝 Apple clocks double-digit revenue growth in India; iPhone shipment up 19%

📝 After Canada's Cirque du Soliel, BookMyShow to bring NBA to India

📝 79% CEOs see growth prospects for Indian economy in 2019: KPMG Report

📝 Banking on Phase 5 project, DLF provides sales guidance of Rs 2,700 cr

📝 Indian Oil Q1 net profit drops 47% to Rs 3737 cr on lower refining margins

📝 Core sector growth at 50-month low in June; 4 out of 8 sectors contract

📝 At $2.73 trn, India's economy pushed to 7th spot; UK, France march ahead

📝 April-June fiscal deficit hits 61.4% of FY target; touches Rs 4.32 trn mark

📝 HDFC reduces prime lending rates on home loans by 10 bps from August 1

*Financial Express*

📝 Funding down by over 30 pct: IL&FS, NBFC crises drag down realty

📝 Jaypee Infra CoC to discuss fresh bids on August 5

📝 Tractor sales fall 14 pct in April-June quarter

📝 Ashok Leyland Q1 profit dips 45 pct on poor sales

📝 Apollo Tyres Q1 net profit declines 44 pct to Rs 142 crore

📝 Warburg Pincus acquires controlling stake in Avanse Financial Services

📝 Allahabad Bank returns to profit as provisions fall

📝 Non-food credit increases 12.05 pct to Rs 95.90 lakh crore

📝 DHFL exits AMC business, concludes stake sale in two subsidiaries to joint venture partner

📝 Spandana Sphoorty to raise Rs 400 crore from IPO, Rs 800 through OFS

📝 Motilal Oswal Q1 profit rises, 25% to Rs 129 crore

📝 Banks plan uniform lending policy in jewellery sector

*Mint*

📝 Cabinet approves bill to prohibit all unregulated deposit schemes

📝 US Fed cuts key policy rate by 25 bps, the first reduction in more than a decade

📝 Jio poised to overtake Airtel as nation’s No. 1 telco by revenue

📝 Eicher Motors Q1 net dips 22% to ₹452 crore

📝 Tata Global Beverages Q1 net profit rises 10% to ₹141.68 crore

📝 Auto makers cut production by 11% in Q1 amid falling sales: Report

📝 Airfares to increase 5%, hotel rates 6.8% in 2020: Report

📝 Invesco Oppenheimer fund to buy 11% stake in Zee Entertainment for ₹4,224 cr

📝 Sales productivity firm Vymo raises funds from Emergence, Sequoia

📝 Flipkart launches ‘Samarth’ to empower Indian artisans, weavers and craftsmen.

LC & BG difference

Difference between Letter of Credit and Bank Guarantee
Difference between Letter of Credit and Bank Guarantee
📣📣📣📣📣📣📣
Introduction🏙
⬅⬅⬅⬅⬅⬅⬅⬅
This two terminology looks similar but both are very different. When one wants to expand the business means beyond the national boundary or within, one needs assurance from the buyer side that after delivery of goods or services the payment will receive and this can be done by the bank only.

In short, both these terms are used while doing business or transactions with domestic or international companies.
So, both these services are facilitated by the bank but in a different way as per the need of seller party.
Letter of Credit🏙
⬅⬅⬅⬅⬅⬅⬅⬅⬅
It is used while there is a high level of risk involves in business.It is used while doing import and export transactions with international companies.L/C is a written commitment issued by the bank or some other financial institutions for payment assurance to the seller party from buyer’s request.In L/C, the seller gets a guarantee of payment from the buyer’s banks on the due date payment will receive only if the seller meets all the conditions of deal like timely delivery etc.Banks offer a service like L/C on the basis of proof provided by the buyer’s party.If the buyer fails to make payment to the seller, the bank pays on behalf of a buyer and then the bank will recover it from a buyer anyhow.Banks will charge fees for this type of facilities.So in short, letter of credit is beneficial when product or service is delivered and payment is not done.It eliminates the financial risk involved in the business.

Types of Letter of Credit🎎
⬅⬅⬅⬅⬅⬅⬅⬅⬅⬅⬅
🗼Irrevocable Letter of Credit:
It is not modified or cancelled without the concern of all the parties.
🗼Revocable Letter of Credit:
In it, the issuing bank can revoke or cancel the letter of credit any time without prior notice to the seller.
🗼Confirmed Irrevocable Letter of Credit:
In it, the confirming bank gives more assurance to seller same as issuing bank.
🗼Unconfirmed Irrevocable Letter of Credit:
In it, an advisory bank from the seller's side performs as an agent for the issuing bank without any responsibility to the seller.
🗼Revolving Letter of Credit
This type of letter is used if in case regular transactions take place and remain valid for a long term without issuing the another letter of credit.

Bank Guarantee🏙
⬅⬅⬅⬅⬅⬅⬅⬅⬅⬅
🏦 guarantee is a service by which bank gives a guarantee to the seller on behalf of his client for assurance of payment.
🏢So, Bank guarantee has the same function as a letter of credit but with some differences.
🏦 guarantee generally used in domestic transactions.
🏦 guarantee is beneficial when contractual obligations are not fulfilled by the other seller party.
🏦 guarantee is used in infrastructure and real estate projects to reduce risk level.
⤵Letter of Credit V/s 🎎Bank Gurantee
Basis🎟
⤵Letter of CreditBank Guarantee-DefinitionA letter of credit is an obligation by the bank to the seller if the criteria met, the bank will make payment.

🎎In bank guarantee, if the opposing party doesn’t fulfil contractual obligations the Bank will make payment.
Boundary🎟
⤵It is used internationally.
🎎It is used domestically.
Protection🎟
⤵It protects both parties but favours exporter.
🎎It also protects both but favours buyer.
Industry🎟
⤵It is used by merchants.
🎎It is used by real estate and infrastructure developer.
L/Cs are frequently used in international transactions compared with bank guarantees. When comparing the two instruments, the market for bank guarantees is much larger than that for L/Cs.

General Banking bits

General banking  bits

1. A customer Mr Sharma had credit balance 40,000 in his saving ac and also had an OD ac with
overdue Debit balance of 20,000.Bank debits his saving account and adjusts OD ac. The bank is
said to have exercised Right of: Set-off
2. A Minor has extended Guarantee to a loan. It can be ratified by whom? It cannot be ratified by
any one.
3. A savings account becomes inoperative when it not operated for: 2 years
4. A term deposit of a HUF has become due. At the time of renewal, the Karta of HUF informs that
he has become Senior Citizen. What rate of interest will be given on term deposit? : Normal
interest rate. No benefit of senior citizen to be given
5. Additional interest is paid to senior citizens on which time FD: All fixed deposits (may vary from
bank to bank)
6. After Nomination in an account, what is the status of the nominee?: Trustee of legal heirs
7. An account of a customer can be closed in normal course on the request of the customer.
What are the other methods for closing account of a customer – (a) By negotiation; (b) As per
provisions of law; (c) After notice to customer in respect of undesirable accounts: Ans is C
8. An Illiterate person is generally not allowed to open which account – saving, term deposit,
recurring deposit, small account, Current Account: Current account.
9. As per RBI guidelines, Demand draft of Rs 50,000 and above should be issued against : by debit
to account but not against cash
10. As per RBI guidelines, minimum amount of deposit to open BSBDA account is: NIL
11. As per Sukanya Samridhi Account (SSA) the tenure of deposit is for years from the date of
opening of the account: 21 years
12. Bank is not required to produce original book of records but true copy can be submitted when
court has demanded as per which act? a) Civil procedure code b) Registration act c) B.R. Act d)
RBI act e) Banker Books Evidence Act.
13. Banker Customer relationship for deposits is ____: Debtor – Creditor.
14. Banker customer relationship in Safe Custody: Bailee Bailor.
15. Banker customer relationship in standing instruction: Agent – Principal
16. Bankers prefer Saving Deposits than Term deposits. Why?: Because cost of deposits for SB is
less.
17. Banks can decide interest rates of NRI, NRO or Term Deposits: Yes
18. Banks can raise what type of deposits?: Term and Demand Deposits
19. Banks should have the responsibility of currency management entrusted to a nodal official of the
rank not less than that of a General Manager and will be accountable for the obligations cast
upon currency chests by the Reserve Bank.
20. BC work as : Bank’s Agent
21. Business Correspondent can be identified by whom?: BDO,Post Master, Head of Village
Panchayat, other BC.
22. Business correspondents for banking for : serving weaker sections of society
23. Call money deposit is part of the sector : Organised sector
24. Complaints under Consumer forum should be dealt with within (Where no testing of commodities
is required) : 90 days.
25. Customer OD A/c has overdrawn Rs 2000/-. Saving A/c has balance Rs 3000. The bank adjusts
the OD A/c by which right: Set off.
26. DD of Rs.50000/- in cash : not allowed
27. Death claim settlement in how many days?: 15 days
28. Deposits held in Joint accounts; b) Corporate Deposits; c)
Inter-Bank deposit; d) Deposits of HUFs: Ans is Inter-Bank deposits.
29. Deposits which are not claimed for__years are required to be transferred by banks to
RBI: 10 years
30. DICGC cover is available in which of the following cases a) Credit balance in Cash Credit Account
b) Overdue Deposit c) Deposit of Government Department?: A & B
31. Differential rate of interest can be paid on fixed deposit if single deposit is for: Rs.1.00 crore
and above
32. Direct Tax Code will replace which of the following – Income Tax Act, Corporate Tax Act: Income
Tax Act.
33. Encashment of FOR with interest - payment can be made in cash if it is less than Rs 20000
34. Financial Inclusion means: providing banking services at affordable cost to the poor/distressed.
35. FULL FORM OF CASA? : CURRENT ACCOUNT & SAVING ACCOUNT
36. Garnishee order is not applicable to: a) Savings b) Current c) FD d) CC/OD with debit
balance: CC/OD with debit balance.
37. Govt. has decided to demonetize all the coins of paise 25 and below w.e.f. 30-6-2011.
38. How much amount can be deposited in a small account in a financial year?: Rs one lac
39. How much amount can be withdrawn from a small account in a month?: Rs 10,000
40. If in Garnishee Order no amount is mentioned, what should the bank do? Full amount to be
attached.
41. If payment of Rs 20000/- is made in cash in case of FDR what is the penalty: equal to the
amount paid
42. Illiterate account holder, how many witness for nomination: two
43. In Basic Savings Bank Deposit Account in all their accounts taken together and the total credit in
all the accounts taken together is not expected to exceed _____ in a year has been simplified to
enable those belonging to low income groups without documents of identity and proof of
residence to open banks accounts: 1,00,000/-.
44. In case Fixed Deposits account the rate of interest fixed by whom: Board of Directors of
respective bank.
45. In case of a/c transfer, with in how many days the address proof has to be submitted in the
transferee branch? Six Months
46. In case of an illiterate customer, process of nomination requires witnesses by how many
persons?: Thumb impression requires 2 witnesses.
47. In case of Deposit Insurance whether it mandatory or not: It is Mandatory for all banks.
48. In case of Deposit Insurance, Insurance premium is paid to DICGC by bank and depositor in
which ratio?: Entirely by bank.
49. In case of insurance of deposits by DICGC, premium is paid by: Bank. 100% of the premium
is paid by the bank and not by depositor.
50. In case of insurance of deposits by DICGC, what is the premium sharing ratio between bank and
depositor?: 100% of insurance premium is paid by the bank.
51. In case of Minor what is wrong? Minor can make himself liable for his actions.
52. IN CASE OF TRANSFER OF ACCOUNT, WITHIN HOW MANY DAYS, THE ACCOUNT HOLDER
SHOULD ADVISE NEW ADDRESS?: TWO WEEKS
53. In how many years of no transaction does a saving and current account become inoperative? :
two years
54. In Limited liability Partnership what is the liability of partner?: Amount agreed to be
contributed by partner at the time of joining partnership.
55. In saving accounts, interest is calculated on the basis of: daily product basis.
56. In Senior Citizen Saving Scheme account, who can be joint account holder?:Spouse

57. In small accounts as per RBI- No min. balance, nil/minimal charges etc
58. In small accounts monthly withdrawals to be upto- Rs.10000/-
59. Insurance of deposit is done by DICGC up to: Rs 1 lac per depositor per bank.
60. Interest rate on Saving Deposit is decided by : Banks individually
61. Interest rate on Savings accounts: Not regulated by RBI
62. Max amt for tax saver FD: Rs 150000
63. Maximum amount of deposit in Tax Saving Scheme of the bank can be: Rs 1,50,000
64. Maximum deposit for allocating a locker: 3 year advance rent plus locker breaking charges
65. Maximum period of NRE deposit: Bank Discretion.
66. Minimum and Maximum amount that can be deposited in PPF account is _____: Minimum Rs.
500/- & Maximum Rs. 1.50 lacs.
67. Minimum Lock in period for Tax saver FDR: 5 Years
68. Minimum Maturity Period for Certificate of Deposit is : 7 days
69. Missing person treated as having expired if missing for: 7 years
70. No Frills Accounts are opened for: Financial Inclusion
71. No of digits in Aadhar : 12
72. Non Resident (External) fixed deposit is normally accepted for a period of (a) 1 year to 3 year
(b) 1year to 5 year (c) 1 year to 4 year (d) 1 year to 7 year (e) 6 months to 3 year: 1 year to 3
year (As per RBI it is minimum 1 year and maximum bank discretion)
73. OD in PMJDY account upto: Rs. 5,000/-.
74. On a cheque presented for payment, amount is written in words but all other items are written in
Regional Language. What should the bank do?: Pay the cheque
75. Pensioner account can be opened jointly with? Spouse as Either of Survivor or Former or
Survivor.
76. Rate of Interest in Sukanya Samridhi Account for 2015-16: 9.20% & 8.6% FOR 2016-17
77. Relation between bank and judgment debtor: debtor & creditor.
78. Safe custody of Articles comes under which Act: Indian Contract Act.
79. Star series note can be issued in denomination of Rs 100 also. (earlier only Rs 10, 20 & 50)
80. Super senior citizen after: 80 years of age
81. The balance in the account is Rs 15000. A cheque of Rs 30000 was sent for collection. Before it
is realized a cheque for Rs 20000 has been presented for payment. What should the bank do –
(a) Return with reason effects not yet cleared. Present again; (b) Pay the cheque; (c) Return
with reason exceeds arrangement; (d) Return with reason Refer to Drawer; (e) Return with
reason Insufficient Funds: Insufficient Funds
82. The minimum & maximum period of certificate of deposit is : 7 days, 12 months
83. There is a credit balance in the saving account and there is a overdraft in the current account
amounting to Rs 555. Both accounts are in the same name. Bank wants to adjust credit balance
of saving bank account towards payment of overdraft. As per which right, bank can do this?:
Right of Set Off.
84. Under Sukanya Samridhi Account (SSA) the maximum period upto which the deposits can be
made is for ___ years from the date of opening of the account: 14 years
85. Under Sukanya Samridhi Account (SSA) the minimum amount of deposit is Rs 1,000 and Under
Sukanya Samridhi Account (SSA), the bank account will be opened for a girl child upto the age
of: 10 years
86. Under Sukanya Samridhi Account (SSA), the current rate of interest on deposits is which is the
highest amongst all other Govt. Saving Schemes: 9.20% & 8.6% FOR 2016-17
87. What are the Service charges for using ATMs of other banks for balance enquiries: Rs.20 for
Financial & Rs. 10 for Non- Financial upto 5 transactions ( 3 at Metros)
88. What documents are required for opening a small account?: Self attested photo and address
89. What is the bankers-customer relationship in case of deposits? Debtor – Creditor
90. What is the distance criteria for office of Business Correspondent?: The distance between the
place of business of a retail outlet/sub-agent of BC and the base branch should ordinarily not
exceed 30 kms in rural, semi-urban and urban areas and 5 kms in metropolitan centers.
91. What is the maximum amount of loan that can be granted against FCNR deposit? No limit.
92. What is the periodicity of review of risk classification of customers?: Every six months
93. What is the rate of interest payable on an overdue FD for overdue period if customer demands
payment and does not renew the same?: Saving Bank Rate
94. What is the special feature of Basic banking Account? Account can be opened with nil or very
small amount and there are no requirement of minimum balance.
95. What type of account can be opened in the name of NRI jointly with residents? NRO /NRE/FCNR

(earlier only NRO)
96. What type of activity can be performed by Business Correspondent - (a) processing and
submission of applications to banks; (b) disbursal of small value credit, (c) recovery of principal /
collection of interest (iv) collection of small value deposits: All of these
97. When a person wants to open an account with a bank but does not have proof of identification
and address, what type of account can be opened?: Small account
98. When Letter of Administration issued: When the person dies without leaving the Will- Intestate.
99. Whether “WILL” has to be registered? Not required.
100. Which form is used for cancellation of nomination in deposit accounts?: DA -2
101. Which is not a proof of Identity?: Ration card.
102. Which is the most important document for opening a Trust Account?: Trust Deed
103. Which of the following forms will be used for allowing exemption to a depositor aged 61 years
: Form 15 H
104. Which of these rates are periodically reviewed by RBI?: Repo rate, Bank rate, but not Savings
Bank Rate.
105. While opening account, a bank, in addition to observing various provisions of Indian Contract
Act should also – exercise utmost care and attention; look at profitability from account; exercise
due diligence: Due diligence
106. While opening the account with a bank, prospective customer is required to submit – PAN No
or Form 60 or 61
107. Who are eligible for preferential rate of interest under NRE deposits: a) Staff b) Senior citizen
c) Staff cum Senior Citizen d) none of these?: None of these
108. Who can do nomination in the account of a Minor?: Can be done by guardian not by
minor
109. Who of the following can exercise nomination – HUF, limited company, trust, Partnership firm,
sole proprietorship firm?: Sole Proprietorship firm.

Risk Management important

Risk Management  important

01 RBI implemented the Basel-III recommendations in India, w.e.f:
a) 01.01.2013, b. 31.03.2013, c. 01.04.2013, d. 30.09.2013
02 Basel III recommendations shall be completely implemented in India by:
31.03.2020, b. 31.03.2019 c. 31.03.2618 d. 31.03.2017
03 Basel III capital regulations were released by Basel Committee on Banking Supervision (BCBS) during as a
Global Regulatory Framework for more resilient banks and banking systems:
December 2010, b. March 2011, c. December 2011, d. December 2012

Congratulations All CAIIB RESULTS Announced

Congratulations All CAIIB RESULTS Announced

Download link

https://iibf.esdsconnect.com/marksheet/caiibresult?fbclid=IwAR0DWH95MrMNCUm7T6uOXcTINtv5NnWdPqKyIaQ0YSMmnML7bez3PCn49Ik

RECOLLECTED JULY 2019 IIBF ALL EXMS

In today's microfinance exam questions from,

1. Chikola group

2. Rrb bank established in the year

3. Rbi act, rrb act,

4. Bank rakyat Indonesia

5. Malegam committee recommendation

6. Shg bank linkage program

7. Sewa bank

8. Break even analysis also named as

9. As 2 deals with

10. Examples of cash flow like travel expenses interest expenses

11. 2 numericals from break even anaysis

12.average case load formula

13. Question from relationship risk

12.

Recollected Questions 21.07.2019 IT security recollected on 21.07.2019

ROBO backup

Skimmer and shimmer

RFID and Barcode shortcomings

ISO 27001

After Jillani committee 1996

What IT act took place

Downstream liability

Routers

A/B testing

VoiP eavesdropping

User level controls

PCI DSS

HIPAA

Defence in Depth

Green servers

Blade servers

E -wastes

Scavenging

ATM jitter

Mobile banking

TCP IP

VLAN

Cyptography

Steganography

IDS DNS

CLOUD computing

Threats

Vulnerability

SQL Injection

Cyber terrorism

Viruses worms

Malware

Stuxnet

Fault tolerence

Business continuity and Disaster recovery

DTP

Many case studies were there - calculations of duration,MD,convexity, mclr related problem, cal of market, credit risk weighted assets,

CTP

Certified treasurey professional questions dated 14.7.19

Friends to be honest paper was easy compared with the one dated 27.4.19

The following are the questions given

Numerical related to

FRA

Commercial paper numericals around 6-7 and also individual questions related to cp and cd such has issuers and maximum limit and minim limit and

Questions related to various measures of options : delta , gamma,rho,

Numericals on bond prices

Numericals of auctions

Dutch auction

French auction

Novation definition

Liquidity related questions

Direct quote

Reinvestment risk

Futures

Qustions related to bond yield

Transfer pricing

ECB

Option coupon bond

Zero coupon bond

The questions were mostly numericals so pleae go through the reference book

All d best friends

ISB

information System Banker Recollected questions

CyAT

CAA

Digital Signature

BCP

Digital forensics

Normalisation

Internal audit

DBA responsibility

Telecommunications system audit

Power off switches

Cyber terbunal judge or magistrate

DS reissuance

Central depository of DS

Audit trail significance

Bottom up methodology

Audit plan

BCP

IDS

Virtual keyboard

IFMS full from

EFT

RBIA

Inherent risk

Insider threat

IS Audit policy

Information security officer role

DBA responsibility

Stress testing

BCNF

Critical applications

Poor architecture system

SDLC

Prototyping model

RTO application

IT Act 2000

Punishment for copyright as per IT Act

Controller of Certifying Authorities operates the National Repository of Digital Signatures (NRDC)

Function of modem, which is not an OOP Lang. C C++ Java C#, questns abt DRP, Trojan horse, sniffing, spoofing, availability, integrity, DBMS, preventive, corrective, detective controls, BCP

DDL DML DCL TCL commands, CA CCA-Digital certificates

Digital signature complete

Cyber apellate tribunal presiding officer

System testing

Compliance testing

Substantive testing

Telecom control

Db forms

Db commands

Risk based audit

It audit

Dba roles n resp

Prototyping model

Sdlc full

Interface testing

Rbeit ltd reg it subsidiary of rbi

Non repudiation

Bot stroke worms

Certified information System Banker

13.01.2019 3 PM Batch

Moderate Difficulty

Passing Mark 60

Each question carries 1 mark ( 100 questions )

Scored 55 marks

Recollected questions

DR centre location

Data warehouse

Audit charter/policy

Is audit 5 -10 questions

RAM and cache memory

Static RAM

Metadata

Which DB model used in CBS

Characteristics of a table

Many to Many relationship in DB

Simple ,self,outer join

Adaptive maintenance

Multiplexing

Packet switching

Full Duplex method

Bridge,router,switch,gateway

Diff between router and switch

Function of osi model layers 5 questions

Which protocol used in banking http,smtp,tcp/ip

Real time processing

Emergency response

Mirror site and reciprocal agreement

Trojan horse

E money

INFINET

CFMS

SFMS

Spoofing, piggybagging

Pervasive principle in GASSP

Classification of control

Boundary sub system

Audit trail

Attenuation

Types of noise (cross talk)

False positive and negative

Firewall

Intrusion detection systems and tuning

In what circumstances user ID and password will be given to user(emergency access)

Remote Access

OS tasks

Travelling virus procedure

Public and private key encryption

ISB Recollected Questions and Exam Tips june18::::

Function of modem, which is not an OOP Lang.

C C++ Java C#, questns abt DRP,

Trojan horse, sniffing, spoofing, availability, integrity, DBMS, preventive, corrective, detective controls, BCP

International trade finance today's recollected

Its all about Limits on various transaction, FEMA Schedule:I, II, III, LRS, JV/WOS, different FC A/c and their purpose. Reading Macmillan BOOK thoroughly is sufficient to clear the Exam.

[08/07, 07:28] Ara: Vostro account

[08/07, 07:28] Ara: ECB is a form of bank loan, suppliers credit, buyer credit

[08/07, 07:28] Ara: Standby letter of credit is under ucp600 or ucp600 ,isp

[08/07, 07:28] Ara: Bill of Ladding 2 questions, export bill crystallization, guarantee maximum period, exim Bank duties 2mark, Duration of bill realisation, PCFC value above export order, deemed exporter, if domestic price increases above export price...

[08/07, 07:28] Ara: Deemed export 2 ques

[08/07, 07:28] Ara: Bank guarantee under

[08/07, 07:28] Ara: Lrs scheme available to individuals upto USD 250000 not to corporate, partnership, huf, trust

[08/07, 07:28] Ara: Buyer credit linked to Libor/ mibor

[08/07, 07:28] Ara: Documents should be presented within 21 days from

[08/07, 07:30] Ara: If the maturity date is a holiday then it should be presented before the date or after holiday

[08/07, 07:38] Ara: Merchant trade should be completed within 9 months

[08/07, 07:41] Ara: What is clean payment

[08/07, 07:41] Ara: High sea sale

[08/07, 07:42] Ara: Trade blog 1 que

[08/07, 07:43] Ara: Normal transist period is from the port to destination port or from manufacturing to destination port

[08/07, 07:47] Ara: India export rice in exchange of petrol, Diesel this is theory of comparative advantage , heckscher ohlin theory, theory of absolute advantage

[08/07, 07:50] Ara: In trade within country which is common as international trade. Dap ,Daa LC

[08/07, 08:00] Ara: Factoring forfeiting 4 questions

[08/07, 08:06] Ara: Transfer LC

[08/07, 08:11] Ara: Foreign exchange governed by dgft RBI, exim bank,

[08/07, 08:14] Ara: Lc is given on Fob value

[08/07, 08:20] Ara: If ABC company is having bank guarantee with x bank and they are entering to contract with y to supply goods and if ABC company fails what bank will do a) pay to y on the value of entered or b) pay a guarantee amount

[08/07, 08:21] Ara: Pre shipment 360 days

[08/07, 08:21] Ara: Preshipment interest is given upto 180 days

[08/07, 08:27] Ara: Bank guarantee should not be issued more than 10 yrs

[08/07, 08:29] Ara: Status holder are classified from one to five star

[08/07, 08:29] Ara: Softex is used for software export

[08/07, 08:36] Ara: Advance remittance up to usd200000

[08/07, 08:39] Ara: ABC company is dealing with goods and banking with x � bank , it buys goods from y and for y company x bank willing to finance is it a) vendor finance b) channel finance

[08/07, 08:49] Ara: Three , four star export house

[08/07, 08:54] Ara: Export of goods freely upto RS 500000

[08/07, 08:57] Ara: Project contractors after completion of project abroad may import without an authorisation good including capital goods used in project provided they have been used for atleast 1 yrs

[08/07, 08:58] Ara: Duty exemption scheme

[08/07, 08:59] Ara: Duty drawback scheme

[08/07, 09:03] Ara: Arbitration

[08/07, 09:03] Ara: Speculation

[08/07, 09:05] Ara: If on Oct 3 transaction is settled on Oct 5 assuming Oct 3,4,5 is working day this is a) spot b) forward c ) future d) ready

International Trade Finance exam yesterday.

Bill of Ladding 2 questions, export bill crystallization, guarantee maximum period, exim Bank duties 2mark, Duration of bill realisation,PCFC value above export order, deemed exporter, if domestic price increases above export price... Some more questions which I recollected.

 Thanks

Trade Finance Recollected Questions: Preshipment, Post shipment Finance, PCFC, Forfaiting, EXIM Bank, FTP, Trade Blocs, ECGC Confirmation, DEPB Scheme, EPCG, Limitation Clause, ECNOS full form, Combined Transport Document, Gift Exports limit, Adv payment limit on Import, Bonafide Baggage period, Drawback, Merchanting TradeTrade, Domestic Trade types.

 digital banking recollected

Jackpotting

Emv and non emv

Abps and aeps

Financial exclusion concept

10 questions on cards

Frauds like skimming etc

Risk based 5 questions

Mpin based 3 questions

Card dimension

8 straight forward questions from book

Confusing ones as all questions have 2 anwers type...be carefull before marking answers

Digital banking todays recollected questions

Otp full from

Pharming  attack on internet website's 

Mom and pop means

Technology solution in India which is not part of FI

Cyber mugging

X2x service code

Pos terminals related questions

Dimensions of plastic card

Difference between  gprs pos and pstn  pos

First pos mc developer in india

Chargeback related questions

Jackpotting in atm means

Meltdown and spectre means

Nfs managed by npci situated at

In Forex settlement the rupee leg is settled through

If I recollect I will append pls

Ccp-

Questions were conceptual. Really difficult questions from LG and LC. Questions from Syndication and MBA -5. LC - no numericals only conceptual case study 5 no. Syndication and Consortium -5 . EPS -5, IBC -5 , and questions covering the whole book. Interesting fact - none of this answer was the right answer nearly 15 -20 questions. Very confusioning

· Cleared CCP today.. Questions were from msme service n manufacturing sector, Npv and irr difference, eps calculation, calculation of tnw-1, minor question-2,case study on huf , bcsbi -2 questions, case study on lc and asked to select type of lc, max period of BG, deferred payment guarantee, cersai is done under, cersai is used for, break even point calculation-1,standard deviation on investment,time value for money etc...

· Forex operations review and Recollected exam

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· Usance Period

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· sanction of fresh/enhanced export credit limits should be made within 45

· 

· Limit for export under OPGSP

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· Schedule III of FEMA

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· Remittance exceeding USD10Mio per project consultancy service in respect of Infra Projects

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· commission to an agents abroad for sale of residential flats-USD25000 or 5% of inward remittance

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· reimbursement of pre-incorporation expenses

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· Donation - 1% or USD 5Mio

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· Pan mandatory for all LRS remittance

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· LRS reporting - Daily Basis

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· LRS not applicable to HUF,Partnership form, Trust

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· 2 new Incoterms incorporated in 2010

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· export realisation period

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· collectin bill

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· rate application from transfer from NRE to FCNR

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· who issue SOFTEX form

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· fedai last meetings

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· advance remittances toward imports of services are permitter without any limit

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· question on accruals in the account should be converted into rupees into rupee on last day of succeeding

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· month

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· who can open SNRR account

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· How much INR can be taken outside Inida

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· Export of gift articles not exceeding 5 lacs

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· NRO account Foreign nationals should not exceed more than 6 months

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· Vostro account is funded through which Form1/2/3/4

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· when we sent MT707

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· Travellers proceedings to which countries not exceeding USD 300 per visit

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· Target of FTP2015-20 export target of $900 billion by 2019-20

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· Article 13 of UCP 600

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· Green clause credit

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· Commercial invoice should be signed and dated

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· 10-12 questions on ECB,FDI,ODI

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· 3-4 questions on FTP

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·  Questions asked from UCP 600, LOC, LRS, FTP 2015- 2020, ECGC, PTA, ECB, etc.

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· 

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· Cleard Foreign Exchange Operations Exam today..paper was little bit tricky..no numericals, no case studies..just theoretical but concept based questions..ECB,FTP,LC,LRS,ECGC,EXIM, pre & post shipment are the some areas which covers more than half of the question paper.

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· 

· 

· 

· 

· 

· forex operation question 27.10.2018

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· 

· 

· fro nre to fcnr which rate apply

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· as per latest what is mandatory for lrs "pan"

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· how much invest in jv - 400%

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· coprporate donate what amount - 1% of forex earning or $5 m which ever is less

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· one from high seas sale

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· marine insurance policy indemnity se related

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· fedai rate declare which rate in month end

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· one is ralated to var and fbil

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· if forward is more than spot then what - interest on base less than counter

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· regarding lou and loc - ans is both are dicontinued

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· one is if there is no loc and lou then what is the option for importer

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· one forfaiting

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· what is requirement to be an exporter

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· if account is standard then in which case there is no need to report ecgc before disbursement

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· ek bpo se related

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· one is from eefc

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· one is for tt buying

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· ftp target for 2020

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· advane under import of services without guarntee - $ 5 lakh

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· condition for granting loan against nri deposit

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· lc amendment- mt707

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· one from urbdg 758

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· urr 722

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· one from demand guarantee

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· standby lc

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· one is lc term prevail against sanction ye ans h question i forget

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· if lc not require transport , invoice then what - option given not remember

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· incoter added in 2010 - dap dat

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· one is if in lc there is no presentation date only expiry given then what will be presentation date

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· for what we can not issue lc

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· if lc is in fob then import licence what we endorse option - cif exw fob

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· who issue softex forms

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· one is edi port - sdf

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· if some mistake in shippong bill then what will appraising officer do - mark and point to commisioner

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· 

· 

· ~forex operation question 27.10.2018

· 

· fro nre to fcnr which rate apply

· 

· 

· 

· as per latest what is mandatory for lrs "pan"

· 

· 

· 

· how much invest in jv - 400%

· 

· 

· 

· coprporate donate what amount - 1% of forex earning or $5 m which ever is less

· 

· 

· 

· one from high seas sale

· 

· 

· 

· marine insurance policy indemnity se related

· 

· 

· 

· fedai rate declare which rate in month end

· 

· 

· 

· one is ralated to var and fbil

· 

· 

· 

· if forward is more than spot then what - interest on base less than counter

· 

· 

· 

· regarding lou and loc - ans is both are dicontinued

· 

· 

· 

· one is if there is no loc and lou then what is the option for importer

· 

· 

· 

· one forfaiting

· 

· 

· 

· what is requirement to be an exporter

· 

· 

· 

· if account is standard then in which case there is no need to report ecgc before disbursement

· 

· 

· 

· ek bpo se related

· 

· 

· 

· one is from eefc

· 

· 

· 

· one is for tt buying

· 

· 

· 

· ftp target for 2020

· 

· 

· 

· advane under import of services without guarntee - $ 5 lakh

· 

· 

· 

· condition for granting loan against nri deposit

· 

· 

· 

· lc amendment- mt707

· 

· 

· 

· one from urbdg 758

· 

· 

· 

· 

· 

· urr 722

· 

· 

· 

· one from demand guarantee

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· 

· 

· standby lc

· 

· one is lc term prevail against sanction ye ans h question i forget

· 

· 

· 

· if lc not require transport , invoice then what - option given not remember

· 

· 

· 

· incoter added in 2010 - dap dat

· 

· 

· 

· one is if in lc there is no presentation date only expiry given then what will be presentation date

· 

· 

· 

· for what we can not issue lc

· 

· 

· 

· if lc is in fob then import licence what we endorse option - cif exw fob

· 

· 

· 

· who issue softex forms

· 

· one is edi port - sdf

· 

· 

· 

· if some mistake in shippong bill then what will appraising officer do - mark and point to commisioner

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· Foreign Exchange Operations Recollected question (27/10/18)-

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· 1. LRS scheme availble to?

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· 2. question abt Gift/donation.

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· 3. one abt medical treatment?

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· 4. PAN mandatory in LRS?

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· 5. travellers limit 3000USD per visit or per annum?

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· 6. foreign currency not permissible to- Nepal

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· 7. forward contract limit- USD 1 million

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· 8. question on RFC ac.

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· 9. direct question on PIO.

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· 10. whi can open SNRR ac

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· 11. question abt prohibited investment.

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· 12. what is green clause lc.

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· 13. question on tolerance limit in Lc.

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· 14. question abt advising bank.

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· 15. question abt MT707.

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· 16. 3-4 question abt bill of lading.

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· 17. 2 new INCOTERMS.

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· 18. SOFTEX form.

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· 19. export to warehouse question.

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· 20. 5-7 indirect question abt pre and post shipment.

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· 21. question on forfaiting.

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· 22. question on bill of entry.

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· 23. 2-3 question on trade credit.

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· 24. 1 question abt nature of transaction and rate applied.

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· 25. 1 abt ECIB(WTPC)

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· 26. 1 question on standby credit.

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· 27. LRS statement submission.

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· 28. normal transit period

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· 29. ECB cost ceiling.

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