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Showing posts with label CAIIB. Show all posts
Showing posts with label CAIIB. Show all posts

Sunday, 11 August 2024

BFM Module A, (Q & A) UNIT 1. Exchange Rate and Forex Business

 



BFM Module A

(Question-Answer)

UNIT 1. Exchange Rate and Forex Business

 

Fill in the blanks:

1. The term Foreign Exchange is used to denote ______ as well as the _______ of one currency into another.

2. The exchange rates of major currencies fluctuate every______ seconds.

3. Main factors affecting exchange rates are technical, _________ and speculation.

 4. In a spot contract, settlement of funds takes place on the_________ working day following the date of contract.

 5. If the currency is costlier in forward, it is said to be at a _________

 6. If the forward value of the currency is cheaper, it is said to be at a_________.

 7. The date of settlement of funds is known as_________ date.

 8. The rate at which the quoting party is ready to buy the currency is called_________ rate.

9. The dealers are officials, who are actually involved in the ________and________ of currencies.

10.  The section which handles processing of deals, reconciliation, etc., is called________ office.

11. Banks permitted to deal in foreign exchange are called ________ persons.

12. Unpaid Import bills drawn under Letters of Credit must be crystallized into Rupees as per the policy of the________.

13. In terms of FEDAI rules, besides, Japanese Yen, _______, and________ are the other currencies which are quoted as 100 units = so much Rupee

14. Exchange rate denotes a__________ at which one currency exchanged for another.

15. Foreign Exchange Markets are__________ Markets, with no barriers.

16. The currency appreciates due to inflow of overseas capital, if local interest rates are__________

17.  __________ deals provide depth and liquidity to the market.

18. Direct quotes are also called__________ currency quotations.

19.  The part of dealing room operations, which deals with risk management is called__________ office.

20. Risk of loss arising due to inability or unwillingness of the counter party to meet its obligations is called__________ risk.

21.  __________ guidelines prescribe code of conduct for dealers’ brokers.

 

State True or False:

1. The FOREX markets are dynamic and round the clock markets.

2. FOREX markets are not affected by government policies.  

3. A large part of the total global FOREX turnover results from global commodities trade

 

Terminal Questions.

1. Foreign Exchange markets are

 (a) regional markets.

(b) domestic markets.

(c) global markets.

(d) localized exchange traded markets.

 

2. Foreign exchange does not include:

(a) Deposits payable in foreign currency.

(b) Instruments drawn in foreign currency and payable in a foreign currency.

(c) instruments drawn in Indian rupees on a checking account of the drawer and payable abroad.

(d) instruments drawn in Indian rupees on a current account of an Indian company and payable in India.

 

3. Out of the several factors, the following factor does not have an effect in the movement of exchange rates:

(a) Political instability

(b) Increase in domestic interest rates

(c) Change in Taxation policy

(d) Increase in domestic tourism

 

4. Spot dealing in FX market means:

(a) Delivery of funds is on the 30th working day from the date of deal.

(b) Delivery of funds is on the second working day from the date of deal.

(c) Delivery of funds is next date from the date of deal.

(d) Delivery of funds is one week after the date of deal.

 

5. The rate at which the quoting bank is ready to sell the currency is called-

(a) Bid rate.

(b) Offer Rate.

(c) TT Buying Rate.

(d) Swap rate.

 

6. Operational Risk does not include:

(a) movement in exchange rates.

(b) Human errors.

(c) Technical Faults.

(d) Systemic failures.

 

7. Cancellation of forward contacts is to be done at:

(a) Opposite Bill rate.

(b) Opposite Cash rate.

(c) Opposite TT rate.

(d) Opposite TC rate.

 

8. Crystallization of export bills is to be done:

(a) On the 10th day from the due date of the bills.

(b) Before the due date.

(c) As per the policy of the Bank.

(d) On the due date itself.

 

 

Answer Key

Fill in the Blanks

1

Foreign currency, Exchange

8

Bid

15

Communication System based

2

Four

9

Buying & Selling

16

High

3

Fundamental

10

Back office

17

Speculative

4

Second

11

Authorized

18

Home

5

Premium

12

Bank

19

Credit

6

Discount

13

Indonesian Rupiah/Kenyan Shilling

20

FEDAI

7

Value

14

Price/Ratio/Value

21

 

True & False

1

True

2

False

3

False

Terminal Question

1

c

4

b

7

c

2

d

5

b

8

d

3

d

6

a

 

 

 



Thursday, 9 November 2017

ABM Mock Test 1 with Answer



1. Which of the following is a key determinant of both supply and demand ?

Income
Future expectation
Tastes and preference
Sale tax

2. Which of the following is a leading economic indicator ?
Average hour, manufacture
Money Supply
Stock prices
All

3. Speculative Demand for money and interest rate are related
Inverse
Direct
Equal
None

4. Transaction demand curve for money_______
It is parallel to X-axis
It moves upward with income
It moves downward
None

5. What indicates zero primary deficit -
No fiscal deficit
Surplus budget
No borrowings
Borrowings only to make interest payments

6. What type of budget is advocated for emerging economies
Surplus
Deficit
Balanced
Zero

7. Which of the following leads to credit expansions
Increase in CRR
Increase in SLR
Increase in Bank rate
Increase in purchase of government securities by central bank

8. Microeconomics deals with
Gross domestic Product
Unemployment rate
Prices indices
All the above

9. Market economy is also known as
Mixed economy
Capitalistic economy
Command economy
Socialistic economy

10. Ends refer to
Demand
Resources
Utility
Wants

All the Best.

 

Monday, 6 November 2017

ABM Mock Test 1


My Quiz




  1. 1. Which of the following is a key determinant of both supply and demand ?

  2. Income
    Future expectation
    Tastes and preference
    Sale tax

  3. 2. Which of the following is a leading economic indicator ?

  4. Average hour, manufacture
    Money Supply
    Stock prices
    All

  5. 3. Speculative Demand for money and interest rate are related

  6. Inverse
    Direct
    Equal
    None

  7. 4. Transaction demand curve for money_______

  8. It is parallel to X-axis
    It moves upward with income
    It moves downward
    None

  9. 5. What indicates zero primary deficit -

  10. No fiscal deficit
    Surplus budget
    No borrowings
    Borrowings only to make interest payments

  11. 6. What type of budget is advocated for emerging economies

  12. Surplus
    Deficit
    Balanced
    Zero

  13. 7. Which of the following leads to credit expansions

  14. Increase in CRR
    Increase in SLR
    Increase in Bank rate
    Increase in purchase of government securities by central bank

  15. 8. Microeconomics deals with

  16. Gross domestic Product
    Unemployment rate
    Prices indices
    All the above

  17. 9. Market economy is also known as

  18. Mixed economy
    Capitalistic economy
    Command economy
    Socialistic economy

  19. 10. Ends refer to

  20. Demand
    Resources
    Utility
    Wants




Saturday, 12 August 2017

Schedule of JAIIB/CAIIB examination for Nov/Dec 2017

Dear All, IIBF announce the schedule of JAIIB/CAIIB examination for November and December 2017. First time IIBF changes the following two major changes for Nov/Dec examination 2017 onward:-

1. Candidate have option to choose venue and time slot of his/her choice for each subject as per their preference on first-cum-first-serve basis
2. Institute will now collect examination fee for each attempt separately from the candidates. Therefore, candidates have to register for each attempt separately.


JAIIB/DB & F

Subject
Examination Date
Principal & Practice of Banking
12-11-2017 / Sunday
Accounts & Finance for bankers
19-11-2017 / Sunday
Legal & Regulatory Aspect of Banking
26-11-2017 / Sunday


REGULAR OPEN PERIOD FOR REGISTRATION (29-09-2017 TO 29-10-2017)
With Normal Examination fees

EXTENDED PERIOD FOR REGISTRATION (30-10-2017 TO 6-11-2017)
With Normal Examination fees plus LATE FEES of Rs 200/- (Plus taxes as applicable)

EXAM
ATTEMPTS
FEE* (For Member)
JAIIB
First
2400*

Second
1000*

Third
1000*

Fourth
1000*

*Plus GST as applicable.

CAIIB /CAIIB Electives

Subject
Examination Date
Advance Bank Management
03-12-2017 / Sunday
Bank Finance Management
10-12-2017 / Sunday
Corporate Banking
17-12-2017 / Sunday
Rural Banking
International Banking
Co-operative Banking
Financial Advising
Human Resource Management
Informational Technology
Risk Management
Central Banking
Treasury Banking

REGULAR OPEN PERIOD FOR REGISTRATION (29-09-2017 TO 29-10-2017
With Normal Examination fees
EXTENDED PERIOD FOR REGISTRATION (30-10-2017 TO 6-11-2017)
With Normal Examination fees plus LATE FEES of Rs 200/- (Plus taxes as applicable)

EXAM
ATTEMPTS
FEE* (For Member)
CAIIB
First
2700*

Second
1000*

Third
1000*

Fourth
1000*

*Plus GST as applicable.


For details, click on  IIBF official site.

Thanks...!!!




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