CAIIB BFM MOCK TESTS – BANK FINANCIAL MANAGEMENT
CAIIB BFM MOCK TESTS:- CAIIB Exams December 2021 are going to start from the 30th January 2022 (the exams were postponed due to Covid-19), therefore, you must be looking for the study material from which you can easily prepare for your Exams.
We, at Learning Sessions, always try to make sure that every candidate who comes looking for any material or content to us receives the best & right material so that they can prepare for their exams or subjects well.
As there is still enough time left in the hands of the candidates preparing for the CAIIB 2021-2022 attempt, one can solve the questions given down below (take it as a Mock test) to test the understanding of the Bank Financial Management.
You can even download the pdf file (get the link at the last of this article) of the below-given questions to test your knowledge later on if you are still revising the Bank Financial Management.
This is the time for CAIIB candidates to gear up their preparations to get closer to having a great career in the banking sector.
Learning sessions down below have provided some questions for you to solve on the CAIIB’s subject of BFM i.e Bank Financial Management.
Try to solve the given mock test of BFM within 10 Minutes & then, can check the answers from the answer key provided at the last of this article!!
Complete this test sincerely & DO NOT look up the answers until & unless you have marked your answers!!
BFM – CAIIB MOCK TEST
|1||NRIs are allowed or permitted (with the prior permission of RBI or SEBI) to invest on non-repatriation basis in Money Market Mutual Funds i.e MMMFs floated by which companies or financial institutions.
a. Domestic public and private sector companies
b. Commercial banks and Public and Private sector Financial Institutions
c. Both of the above
d. NRIs are not permitted to invest in MMMFs
|2||Sale proceeds of immovable property which was acquired in India by an NRI out of repatriable funds _______.
a. Sale proceeds can be repatriated without any lock in period
b. Sale proceeds cannot be repatriated
c. Sale proceeds can be repatriated only after 10 years from purchase date
d. NRIs are not permitted to buy immovable property in India
|3||Losses from the failed transaction processing are classified under ‘Event Type Classification’ as what?
a. Business Disruptions & System failure
b. Execution, Delivery & Process Management
c. Clients, Products & Business Practices
d. None of the above
|4||What are the features of Net Interest Income (NII)?
(i) NII is a tool for measuring the impact of volatility on the short-term profits, (ii) NII indicates the difference b/w interest income & interest,
(iii) Short term profits can be stabilized by minimizing fluctuations in NII
a. Only (i) & (ii)
b. Only (i) & (iii)
c. Only (ii) & (iii)
d. (i), (ii) & (iii)
|5||Quantitative disclosures in respect of capital requirements for market risk in trading book do not include which of the following?
a. Foreign Exchange Risk
b. Risk of Interest Rate
c. Securitization Exposures
d. Equity Position Risk
|6||An economist will define the exchange rate b/w 2 currencies as the ___________.
a. Amount of one currency that must be paid in order to get one unit of another currency
b. Difference b/w total exports & total imports within a country
c. Price at which the sales & purchases of foreign goods & services takes place
d. Ratio of import prices to export prices for a country
|7||General provisions & Loss Reserves are included in Tier-2 capital as per Basel III, maximum to the extent of:
a. 1.25% of T. Risk Weighted Assets under standardized approach and 0.60% of T. risk weighted assets under Internal ratings-based approach
b. 0.60% of T. risk weighted assets under standardized approach and 0.60% of T. risk weighted assets under Internal ratings-based approach
c. 0.60% of T. risk weighted assets under standardized approach and 1.25% of T. risk weighted assets under Internal ratings-based approach
d. 1.25% of T. risk weighted assets under standardized approach and 1.25% of T. risk weighted assets under Internal ratings-based approach
|8||Interest Rate Parity (IRP) implies which of the following?
a. Interest rates should change by an equal amount but in the opposite direction to the difference in inflation rates b/w 2 countries
b. The difference in interest rates in different currencies for securities of similar risk & maturity should be consistent with the forward rate discount or premium for the foreign currency
c. The interest rates between 2 countries start in equilibrium, any change in the differential rate of inflation b/w the 2 countries tends to get offset over the long-term by an equal amount but with an opposite change in the spot exchange rate
d. In the long run, real interest rate b/w 2 countries will be equal
e. Nominal interest rates in each country are equal to the required real rate plus compensation for the expected inflation
|9||In a scenario where interest rates are rising, the risk of erosion of Net Interest Income is on account of which of the following?
a. advances with floating rate of interests (ROI) & deposits with fixed rates
b. advances with fixed rate of interests & deposits with floating rate of interests
c. advances with floating rate of interests & deposits with floating rate of interests
d. advances with fixed rate of interests & deposits with fixed rate of interests
|10||Securitized instruments originated by banks & held by them to the extent of 5% would require capital allocation by way of which of the below requirement?
a. 100% deduction from Tier-I capital
b. 100% deduction from Tier-II capital
c. 50% deduction from Tier-I capital and 50% deduction from Tier-II capital
d. 9% of risk weighted asset equivalent of the holding
Important Topic:- CAIIB 2022 EXAM STUDY MATERIAL
FREE MOCK TEST FOR CAIIB BFM
You can also solve the online free mock tests on BFM as well as other subjects of CAIIB that are available on Learning Sessions website by signing up on the website of Learning Sessions. There are a total of 8 FREE Mock tests on BFM subject available when you sign up.
To access the Free Mock tests visit this link for BFM Mock TEST.