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BFM Previous Year Question Papers (Bank Financial Management) PDF Free Download

CAIIB BFM Previous Year Question Papers (Bank Financial Management) PDF Free Download

Certified Associate of Indian Institute of Bankers i.e CAIIB in short, is a flagship course offered to the Bankers who have cleared their JAIIB. This exam of JAIIB is conducted by IIBF every June & December in a year. Although due to COVID-19 this year the examinations have been postponed. The new schedule for December 2021 has been issued and is given below:

EXAM SCHEDULE OF CAIIB

EXAM DATE EXAM SCHEDULE OF CAIIB Registration Start & End Date
MANDATORY SUBJECTS 01.12.2021 to 07.12.2021

(Normal Fees)

08.12.2021 to 14.12.2021

(Normal Fees+Rs.100)

15.12.2021 to 21.12.2021

(Normal Fees+Rs.200)

30.01.2022 Advance Bank Management 
06.02.2022 Bank Financial Management
ELECTIVE SUBJECTS
12.02.2022 Rural Banking 
Retail Banking 
Human Resources Management 
Information Technology 
Risk Management 
Central Banking

 

You can check the official notification of CAIIB EXAM 2022 by hitting the link:- IIBF OFFICIAL NOTIFICATION

The postponement of CAIIB December Exams gives you an opportunity to prepare better for the Exams as that has gotten you an extra month! Therefore, don’t let this opportunity go that can get you one step closer to the increment you have been hoping for!

CAIIB has a total of 3 papers, two of which are mandatory and one is discretionary. This flagship course is conducted in self-proctored mode i.e you simply record yourself while you take your CAIIB Test. You get the freedom to choose from the given dates and time slots as per your convenience and you can attempt the test at your place.

IMPORTANT6 TOPIC:- How to Clear CAIIB in One Attempt ??

If you are done with the syllabus of CAIIB 2022 or are starting preparations for CAIIB EXAM then we would suggest that you should really prepare the CAIIB Question Papers of Previous Years to get to know the kind & level of questions IIBF expects its Certified Associates to answer

The Solving the papers of CAIIB from the previous years will help you in cracking 2022 CAIIB EXAM and in the evaluation of your marks. That will not only assist you in understanding the pattern of Exam and the marking criteria but will also help you in understanding the level of difficulty that CAIIB usually possess.

Read Also:- CAIIB EXAM STUDY MATERIAL 2022

In this article you will find the link to the Free pdf files of CAIIB – BFM Previous Year Paper, CAIIB- ABM Previous Year Question Paper, CAIIB Mock Tests. 

CAIIB PREVIOUS YEAR QUESTION PAPERS

The links to download the Free PDF files of CAIIBs Bank Financial Management Question Paper of previous years is as below:

Bank Financial Management
CAIIB BFM Free Sample Questions for May 2022 PDF FILE

 

When preparing for CAIIB 2022 do remember the CAIIB Exam Pattern. It will also give you an overview about how the CAIIB papers will be:

Multiple Choice Questions 100
Maximum Marks 100
Qualifying Marks 50
Duration of CAIIB-BFM 2 hours
CAIIB Exam Mode Online
Medium of CAIIB-BFM Hindi or English
Negative Marking in CAIIB No
Pattern of Questions Knowledge Testing, Case Analysis, Analytical / Logical Exposition, Conceptual Grasp, Problem Solving

 

Here are some other important questions that you can quickly go through:

No. MCQs Answer
1 A financial institution XYZ buys a specified no of futures at NSE on a stock Rs 90 each when spot price of the stocks Rs 110. At the maturity of the contract the FI- XYZ takes delivery of the shares. During the period, the spot price of the stock falls by Rs 3. What is the acquisition cost to the Financial Institution XYZ per share?

a. Rs. 107

b. Rs. 103

c. Rs. 90

d. Rs. 97

c
2 A cash credit (CC) account has a limit of Rs. 1,00,00,000.00.  The maximum and minimum o/s balances in the account over last 3 months were Rs. 70,00,000.00 and Rs. 62,00,000.00 respectively. The borrower has an o/s balance in suspense account of Rs. 45,00,000.00 over last three months, which is on account of a guarantee which has devolved. The account is ……

a. NPA

b. Out of order

c. Overdue

d. None of these

a
3 If the total liabilities of a business decrease by 600000 what will be the effect on T. Asset? (Assuming: capital amount remains same)

a. T. Assets will remain constant

b. T. Assets will decrease by 600000

c. T. Assets will increase by 600000

d. T. Assets will increase by 1200000

b
4 An exporter who has not been able to realise the outstanding export dues despite her best efforts, may either self-write off or approach the AD Category – I banks, who had handled the relevant shipping documents, with appropriate supporting documentary evidence with a request for write off of the unrealised portion subject to the fulfilment of stipulations regarding surrender of incentives prior to ‘write-off”.

The limit prescribed for Self “write-off” by an exporter (Other than Status Holder Exporter) is …… of the T. Export proceeds realized during the previous calendar year

a. 5%

b. 10%

c. 15%

d. 20%

a
5 As per Basel III, general provisions and loss reserves are included in Tier-2 capital maximum to the extent of:

a. 1.25% of total risk weighted assets under standardized approach and 1.25% of total risk weighted assets under IRB (Internal ratings-based) approach

b. 0.60% of total risk weighted assets under standardized approach and 0.60% of total risk weighted assets under IRB (Internal ratings-based) approach

c. 0.60% of total risk weighted assets under standardized approach and 1.25% of total risk weighted assets under IRB (Internal ratings-based) approach

d. 1.25% of total risk weighted assets under standardized approach and 0.60% of total risk weighted assets under IRB (Internal ratings-based) approach

a
6 VaR (Value at risk) is not enough to assess market risk of a portfolio. Stress testing is desirable because ……

a. Stress testing helps in calibrating VaR module

b. Stress testing helps as an additional risk measure

c. Stress testing helps in assessing risk due to abnormal movement of market parameters

d. Stress testing is used because VaR (Value at risk) measure is not accurate enough

c
7 The expiry of a letter of credit is 15.07.2020. The last date of shipment mentioned in the LC is 30.06.2020. The shipment was actually made on 17.06.2020 and documents were presented on

15.07.2020. Choose the best option out of the following as per provisions of UCPDC, 600.

a. The documents should have been presented within seven days from the shipment date

b. The documents can be accepted as they are presented within the letter of credit’s validity

c. The documents should have been presented within 15 days from the shipment date 

d. The documents should have been presented within 21 days from the shipment date

d
8 Bank ‘ABC’ has entered into an option forward contract with an export customer. That means ……

a. The bank ‘ABC’ has the option to accept or not to accept delivery of foreign exchange under the contract

b. The customer has the option to deliver or not to deliver foreign exchange under the contract

c. The customer has the option to deliver the foreign exchange during the option period

d. The bank ‘ABC’ has the option to accept foreign exchange under the contract during the option period

c
9 In case of free currencies, discount or forward premium is exactly equal to the difference between ……

a. Risk-free interest rate of the 2 currencies

b. Inflation rate in both the countries

c. Spot rate & Tom rate

d. LIBOR (London Inter-Bank Offered Rate) & RBI reference rate

a
10 The treasury is segregated into 3 main divisions. Of the 3 divisions, the front office is also known as ……

a. Risk management 

b. Treasury administration

c. Dealing room

d. None of these

c
11 If RBI announces an increase in Reverse repo rate to 6%, it means the rate at which Banks can park funds with RBI has gone up to 6%. What effect can this increase have on the Bond markets?

a. Bond prices will go up

b. Bond prices will go down

c. There will be no effect on the prices in Bond markets because of it.

d. The effect will depend on how often the RBI would conduct the auction

b
12 The goods eligible for deferred payment export are classified into 2 categories – group A & group B. Select the correct pair.

Group A:- Capital goods & production goods

Group A:- Consumer durables & industrial manufacture

Group B:- Production goods & industrial manufacture

Group B:- Capital goods & consumer durables

a. both 1 & 2

b. both 1 & 3

c. both 2 & 3

d. both 2 & 4

a
13 A Bank received an LC (Letter of Credit) for USD 2 Mio issued by MT 700 and opened on Jan 25, 2020. The credit calls for shipment of 300 tonnes of good quality wheat cultivated in Punjab. What is the time available for the issuing bank for examination of documents under UCP600?

a. 21 days

b. Reasonable time but not exceeding 7 days

c. Reasonable time but not exceeding 7 banking days

d. 5 banking days

d
14 You are holding 3000 units of stock Z and you expect that stock price may fall. You would like to hedge 70% of your exposure using the stock future. You would

a. Go long on 3000 stock futures

b. Go long on 2700 stock futures

c. Go long on 2100 stock futures

d. Go short on 2100 stock futures

d
15 An RFCD account can be opened by …… with an AD.

a. Returning Indians, non-residents earlier & are now returning to India for permanent settlement, to keep their foreign currency assets held outside India.

b. Resident Indians, firms or companies to transact forex business.

c. A person resident in India to keep his or her foreign currency assets (notes or traveler cheques, etc)

d. Exporters of diamond

c
16 The capital requirement for general market risk has been designed under Basel III to capture the risk of loss arising from change in ……

a. Prices of securities

b. Market value of securities

c. Interest rate on securities

d. All the above

c
17 In 2005, Brazil offered its creditors 30 cents on the dollar for a sizeable amount of its outstanding debt. The offer was non- negotiable. Brazil’s creditors were exposed to …….

a. Sovereign Risk

b. Operational Risk

c. Technology Risk

d. Interest rate Risk

d
18 One of the essential differences b/w an OTC (over-the-counter) & an Exchange traded derivative is ……

a. Exchange traded derivatives are costly while OTC derivatives are cheaper

b. OTC derivatives are for regular customers while Exchange traded derivatives are for banks

c. In OTC derivatives, counter party risk is prominent, whereas in exchange traded derivatives, there is no counter party risk. 

d. OTC derivatives are for hedging risks whereas Exchange traded derivatives are used for speculation

c
19 For gold card status holder exporters, the concessive rate of interest on post shipment rupee export credit may be extended for a maximum period of …… days.

a. 120

b. 180

c. 360

d. 365

d
20 What does re-balancing of a bond index mean?

a. Changing the weightages in the index so that the market capitalization of bonds is kept constant

b. Adjusting the index for changes in the composition of the index portfolio to ensure that artificial capital gains or losses aren’t included in the index

c. Adjusting the composition of the index, whenever coupons are paid, such that the index is not impacted by changes in the accrued interest.

d. Changing the composition of the index when yield alters, such that duration of the index is kept constant

b

Important Topic:- CAIIB BFM SYLLABUS PRIORITY

And while you prepare for the upcoming CAIIB EXAMS 2022 you should also make use of the Mock Tests to get into the exam mode. Here, you will also find some previous year questions put together by the Learning Sessions.

You May Also Like:

IMPORTANT LINKS:-

Bank Financial Management
CAIIB (BFM) Free Sample Questions for Jan 2022 Click here
Retail banking (including Digital Banking)
CAIIB Retail Free Sample Questions for May 2022 Click here
Risk Management
CAIIB [Risk] Free Sample Questions for May 2022 Click here

 

Important Topic:- CAIIB 2022 EXAM DATE

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