IIBF CAIIB BFM RECOLLECTED QUESTIONS 2023 EXAM

IIBF CAIIB BFM RECOLLECTED QUESTIONS FOR  2023 EXAM

In this article, you can find the memory recalled questions on the BFM paper and mock Tests of the BFM paper as per the syllabus applicable under the IIBF CAIIB BFM Exam 2023.

BFM RECOLLECTED QUESTIONS:

If you are preparing for the upcoming BFM Exam of IIBF, you should not miss out on the memory-recalled questions from the previous Exams of BFM. As surely these questions or topics will help you in the  CAIIB BFM Exam 2023. You can also read the updated dates for the CAIIB BFM 2023 Exam here.

Also, take the below questions as practice before you look for the answers as you will get an idea of how well you have prepared for the CAIIB Exam so far for 2023.

BFM CASE STUDY- 1

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

Call Money – 600, Cash Credit Loans – 480, Cash in Hand – 500, Saving Bank – 600, FD – 600 & Current Deposit – 600

On the basis of the above information, answer the following:

Q. What is the adjusted gap in re-pricing assets & liabilities?

1. Rs.100 Cr
2. Rs.120 Cr
3. Rs.140 Cr
4. Rs.160 Cr

Q. What is the change in Net interest income (NII), if the interest rate falls by 3% points for all assets and liabilities?

2. Rs. 2.40 Cr increase in Net interest income (NII)
3. Rs. 3.60 Cr increase in Net interest income (NII)
4. Rs. 2.40 Cr decrease in Net interest income (NII)
5. Rs. 3.60 Cr decrease in Net interest income (NII)

Important Topic:- CAIIB Bank Finance Management Short Notes Part 2 ( CAIIB BFM )

Q. What is the change in Net interest income (NII), if the interest rate increases by 3% points for all liabilities and assets?

2. Rs. 2.40 Cr increase in Net Interest Income (NII)
3. Rs. 3.60 Cr increase in Net Interest Income (NII)
4. Rs. 2.40 Cr decrease in Net Interest Income (NII)
5. Rs. 3.60 Cr decrease in Net Interest Income (NII)

Q. What is the change in Net Interest Income (NII), if the interest rate falls on call money by 1%, SB by 0.2%, Fixed Deposit by 1%, and Cash Credit by 0.6%?

1. Rs. 1.48cr increase in Net Interest Income (NII)
2. Rs. 1.68cr increase in Net Interest Income (NII)
3. Rs. 1.48cr decrease in Net Interest Income (NII)
4. Rs. 1.68cr decrease in Net Interest Income (NII)

Q. What is the change in Net Interest Income (NII), if the interest rate increases on call money by 0.5%, FD by 0.8%, SB by 0.1%, and CC by 1%?

2. Rs. 2.40cr increase in Net Interest Income (NII)
3. Rs. 3.60cr increase in Net Interest Income (NII)
4. Rs. 2.40cr decrease in Net Interest Income (NII)
5. Rs. 3.60cr decrease in Net Interest Income (NII)

Also Read:- IIBF CAIIB BFM SYLLABUS AND STUDY MATERIAL 2023

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BFM CASE STUDY-2:

Calculation of Equities Economic Value when:

Net Worth = Rs.1350.00, Risk Sensitive Asset (RSA) = Rs.18251.00, Risk Sensitive Liability (RSL) = Rs.18590.00, Weight Modified Duration of Asset (DA) = 1.96, Weight Modified Duration of Liability (DL) = 1.25

Q. What is Weight (W)?

1. 1.00
2. 1.02
3. 1.33
4. 1.66

Q. What is DGAP- Directorate General of Anti-profiteering?

1. 0.33
2. 0.48
3. 0.69
4. 0.81

Q. What is the Leverage Ratio?

1. 12.33
2. 13.22
3. 13.52
4. 13.66

Q. What is the Modified Duration of Equity?

1. 6.33
2. 7.33
3. 8.33
4. 9.33

Read Also:- CAIIB BFM SYLLABUS 2023 | BFM – BANK FINANCE MANAGEMENT

Q. If there is a 200 bp change in Rate what will be the drop in Equity Value?

1. 18.66
2. 20.33
3. 22.66
4. 24.33

CASE STUDY ON BFM-3

International Bank has the following assets & liabilities on its balance sheet as on March 31, 2020:

Capital — Rs. 4000.00 cr, Reserves — Rs. 24000.00 cr, Current accounts — Rs. 120000.00 cr, Saving Bank accounts — Rs. 120000.00 cr, Term deposits — Rs. 120000.00 cr, Borrowing from RBI — Rs. 12000.00 cr, cash balances — Rs. 27600.00 cr, balances with other banks — Rs. 60000.00 cr, investment in securities — Rs. 60000.00 cr, bills payable — Rs. 80000.00 cr, cash credit — Rs. 80000.00 cr, term loans — Rs. 80000.00 cr and fixed assets — Rs. 12400.00 cr. Total assets and total liabilities = Rs. 400000.00 cr.

Term loans have fixed interest rates. Based on this information, answer the following questions:

Q. What is the amount of assets that are interest rate sensitive?

1. Rs. 252000.00
2. Rs. 320000.00
3. Rs. 360000.00
4. Rs. 400000.00

Q. What is the amount of liabilities that are interest rate sensitive?

1. Rs. 252000.00
2. Rs. 320000.00
3. Rs. 360000.00
4. Rs. 400000.00

Q. In this case, how much and what type of gap in assets and liabilities that are rate sensitive, the bank is having?

1. Rs. 108000.00 cr, Negative gap
2. Rs. 108000.00 cr, Positive gap
3. Rs. 120000.00 cr, Negative gap
4. The information given is inadequate

Q. What is the amount of Tier-1 capital of the bank?

1. Rs. 4000.00 cr
2. Rs. 24000.00 cr
3. Rs. 28000.00 cr
4. The information given is inadequate

BFM CASE STUDY-4

As per the RBI guidelines on Asset Liability Management, capital & reserves are to be placed in 5 years bucket, Saving and Current Deposits may be classified into volatile and core portions. Saving bank (10%) and Current (15%) deposits are generally withdrawable on-demand basis. This portion may be treated as volatile. While the volatile portion can be placed in the time bucket of 14 days, the core portion may be placed in the bucket of 1-3 years. The Term Deposits are to be placed in respective maturity buckets.

Capital = Rs. 1180 Cr, Reserve = Rs. 12000 Cr, Current account = Rs. 1000 Cr, Saving Bank = Rs. 4000 Cr, Borrowing from RBI = Rs. 400 Cr, Term Deposits 1-month maturity bucket = Rs. 400 Cr, Term deposit 1-6 months maturity bucket = Rs. 800 Cr, Term deposit 3-6 months Maturity bucket = Rs. 1200 Cr, Term Deposit 6-12 months maturity Bucket = Rs. 2000 Cr, Term Deposit 1-3 years maturity bucket = Rs. 1200 Cr, Term deposit 3-5 years Maturity bucket = Rs. 600 Cr, Term deposit > 5 years maturity bucket = Rs. 800 Cr.

Read Also:- CAIIB BFM MOCK TESTS – BANK FINANCIAL MANAGEMENT

Based on the above information answer the following questions:

Q. What amount of Current account deposit can be placed in 14 days bucket?

1. Rs.100 Cr
2. Rs.150 Cr
3. Rs.200 Cr
4. Rs.250 Cr

Q. What amount of savings bank deposit can be placed in 14 days bucket?

1. Rs.100 Cr
2. Rs.200 Cr
3. Rs.400 Cr
4. Rs.800 Cr

Q. What amount of Current account deposit can be placed in a 1-3 year bucket?

1. Rs.100 Cr
2. Rs.400 Cr
3. Rs.800 Cr
4. Rs.850 Cr

Q. What amount of savings bank deposit can be placed in a 1-3 year bucket?

1. Rs.4000 Cr
2. Rs.3600 Cr
3. Rs.3200 Cr
4. Rs.3000 Cr

Q. What amount of term deposit will be placed in various maturity buckets up to less than 12 months?

1. Rs.2400 Cr
2. Rs.2800 Cr
3. Rs.3200 Cr
4. RS.4400 Cr

Important Topic:- IIBF CAIIB BFM STUDY MATERIAL 2023

Solve the above questions as they have been in the previous year’s exams of CAIIB. You can also go through the brief notes on Bank Financial Management 2023 & Mock Tests on the same paper that has been prepared by Learning Sessions available on the official website of Learning Sessions. 

Click on the given link to know the 7 days strategy to crack the BFM exam:

You can check related articles on BFM right here:

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