IIBF CAIIB BFM QUESTION FREE PDF – FREE BFM MCQs!
In this article, we will find the MCQs from the applicable syllabus of BFM CAIIB for the CAIIB JUNE Exams 2023. You will also find the pdf file to download the free MCQs on the CAIIB Bank Financial Management paper.
BFM QUESTION PDF:
As the CAIIB 2023 Exams will be due in a few months for the June 2023 attempt, we here are bringing you some set of important questions that you should go through to revise the paper of CAIIB Bank Financial Management of Certified Associates for the JUNE 2023 Exams.
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Go through the below given multiple-choice questions once:-
No. | Bank Financial Management – Multiple Choice Questions | Answer |
1 | For what purpose, Treasury uses a derivative?
a. to manage risks including the risk of Assets and Liabilities Management (ALM) b. to cater to the needs of the corporate customers c. to trade simply, i.e., to take a trading position in derivative products. d. all of the above |
d |
2 | State Bank of India maintains USD A/C with Bank of America, New York and when it conducts transactions through this account, State Bank of India passes entries in its books at Mumbai through the following account.
a. Nostro a/c b. Vostro a/c c. Loro a/c c. Mirror a/c |
a |
3 | What is the important operational feature of the integrated treasury?
a. having a common dealing room b. having a common Mid or back offices c. Integrated treasury looks for interest arbitrage across currency markets & tries to be in a position to shift swiftly, a placement in Rupee denominated commercial paper to lending in USD in the global interbank market and also serves as a source of funds in global markets & swap the funds into domestic currency or vice versa depending on market opportunities d. all of the above |
d |
4 | What do you mean by banking book exposures?
a. Held until maturity & income is booked on an accrual basis b. Held until maturity & income is booked as and when realized c. Held for a period & income is booked on an accrual basis d. Held for a period & income is booked as & when realized |
a |
5 | Which of the following statement is correct?
a. Reserve Bank of India permits the trading but it is subjected to certain conditions b. A dealer can deal in secondary as well as primary markets c. A dealer can deal with Primary Markets only d. None of the above statements is correct |
a |
6 | A put option is in the money (ITM) if ……
a. the strike price < the market price b. the strike price > than the market price c. the strike price = the market price. a put option can never be expressed in the money |
b |
7 | A 5-year 9% semi-annual bond at a market yield of 7.50% has a price of Rs. 106.16, which rises to 107.45 at a yield of 7.20%. What is the BPV of the bond?
a. Rs. 43.00 per Rs. 1,000.00 of book value. b. Rs. 4.30 per Rs. 1,000.00 of book value. c. Rs. 0.43 per Rs. 1,000.00 of book value. d. None of the above |
a |
8 | What is ‘the exchange of payments in different currencies at pre-determined exchange rates’ called by?
a. Financial Swaps b. Interest Swaps c. Currency Swaps d. Forex Swaps |
c |
9 | A bank received a Letter of Credit for USD 2 Mio issued by MT 700 and opened on Jan 25, 2020. The credit calls for the shipment of 200 tons of good-quality wheat that is cultivated in Punjab. What is the time available to the issuing bank to examine documents under UCP600?
a. 21 days b. Reasonable time but </= 7 days c. Reasonable time < 7 banking days d. 5 banking days |
d |
10 | Which of the below shipments that are sent out of India are exempt from filing export declaration forms?
a. Goods or software, when accompanied by a declaration by the exporter that they are not more than USD 50000 in value b. Gifts of goods, valuing not over Rs.50000 along with the declaration of exports c. Gifts of goods valuing < Rs. 5,00,000.00 along with the declaration of exports d. Goods in value < USD 10,000.00 per transaction under bilateral trade agreement exported to Myanmar |
c |
11 | Which of the following is not the Forex dealing rooms’ function?
a. being a service branch to meet the customer’s requirement of other branches or divisions to either buy or sell foreign currencies, b. to manage foreign currency assets & liabilities, c. as a Fund Manager for Nostro a/c as also undertake proprietary trading in currencies, d. the processing of Deals, reconciliation, Accounts etc. |
d |
12 | In risk measurement, what is the name of the parameter which is used to record deviations of a target variable due to unit movement of a single market parameter, say a 1% change in an interest rate?
a. Downside potential b. Volatility c. Sensitivity d. Mitigation |
c |
13 | What is a major VaR limitation?
a. VaR requires long-term historical data b. VaR is a tedious process c. VaR assumes extreme conditions d. VaR assumes normal market conditions |
d |
14 | From the following effects of Risk mitigation:
1. Reduction of downside potential 2. Reduction in profit potential Which of the statement(s) is correct? a. All the statements are correct b. Statement 1 is correct c. Statement 2 is correct d. Both are incorrect |
a |
15 | What are the arbitrage transactions that are conducted between 2 centres known?
a. 3-point arbitrage b. Direct arbitrage c. Compound arbitrage d. None of the above |
b |
16 | In the banking set-up, what is Integrated Treasury referred to as?
a. Computerization of all branches of the bank b. Computerization of all operations of treasury c. Centralization of all back-office of forex branches operations d. Integration of securities market, money market & foreign exchange operations |
d |
17 | What is referred to Risk of Reduction in the Mark-to-Market value of equities?
a. Interest Rate Risk b. Market Risk c. Credit Risk d. Operational Risk |
b |
18 | What is the most critical function of risk management?
a. identification of risk b. estimating the cost of risk c. measuring the risk d. controlling the risk level |
d |
19 | In this method of calculating Value at Risk (VaR), the variation in the value of a position is calculated (starting from the current value of the asset) using the actual historical movements of the underlying assets.
a. historical simulation method b. Monte Carlo simulation method c. correlation method d. none of these |
a |
20 | Forex markets usually operate in the Middle East or other Islamic Countries from?
a. From Monday to Friday b. From Monday to Saturday but they remain closed on Friday c. From Monday to Sunday d. From Saturday to Thursday (but function on Saturday & Sunday with restrictions) |
d |
READ MORE: HOW TO CLEAR CAIIB IN 2023 EASILY ON THE FIRST ATTEMPT
IIBF CAIIB BFM STUDY MATERIAL 2023
There is still some time to prepare for the CAIIB 2023 JUNE Exams if you haven’t yet prepared. You can prepare with the help of Learning Sessions Study Material for the BFM paper & other papers (ABM & Retail or other Electives) of 2023 CAIIB. We have materials for individual papers of the Certified Associates Exam as well as combo packs of bank financial management that you can browse on our website or through our Android app.
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Sir, your epdf notes are very helpful. These notes are exam oriented and i prepare myself with the help of these notes.
Thanks for providing free epdf notes of BFM.