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CAIIB BFM Test Quiz Module A Set 1 (121-140) | CAIIB materials for December 2016

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  CAIIB BFM Test Quiz Module A Set 1 (121-140) | CAIIB materials for December 2016


CAIIB BFM MODULE A SET 1


121 In India, settlement risk is largely mitigated by settlement through _______.
a) NSDAL
b) RBI
c) CCIL



122 The exposure arising due to normal business operations consequent to which the value of transactions will be affected is called_________ exposure.
a) Translation
b) Transaction
c) Operational



123  _______risk is the risk of failure of the counter party, due to bankruptcy, closure or any other reason, before maturity of the contract.
a) Pre - settlement
b) Settlement
c) Counter party



124 For protecting against the _______ risk, the bank has to resort to control the mismatches between maturities of assets and liabilities.
a) Liquidity
b) Interest
c) Basis
d) Net interest position



125 The currency with lower interest rate would be at a  _______premium in future.
a) Lower
b) Higher
c) Double
d) Zero



126 A _______ contract conveys an agreement to buy a specific amount of a commodity or financial instruments at a particular price on a stipulated future date.
a) Option
b) Future
c) Forward
d) None of the above



127  _______option can be exercised only at maturity date (fixed date ).
a) American
b) European
c) Both a & b
d) None of the above



128  _______banking eliminates the need to have a global network of branches.
a) Interest
b) Retail
c) Correspondent
d) Wholesale



129 For using  _______services, it is a must to have an account relationship with the correspondent bank.
a) Collection
b) Payments



130  _______account means your accounts with us.
a) Nostro
b) Vostro
c) Loro
d) Mirror



131 Mirror account is the shadow account of  _______account.
a) Vostro
b) Loro
c) Nostro
d) All the aobve



132 The minimum period for NRE term deposit is _______ year.
a) One
b) Three
c) Five
d) Ten



133 FCNRB Accounts are necessarily  _______deposit accounts maintained in designated foreign currencies.
a) Saving
b) Current
c) Term
d) All of the above



134 Interest earned on bonds, invested before getting NRI status, can be credited to  _______account.
 a) NRE
b) NRO
c) FCNR
d) RECD



135 An amount up to USD _______ can be repatriated every year out of balances held in NRO account, for permissible transactions.
a) One million
b) Twenty million
c) Ten million
d) Five million



136 The maximum period for FCNRB deposits is _______  years.
a) One
b) Ten
c) Three
d) Five



137 In FCNRB deposits the depositors does not bear _______risk.
a) Credit
b) Interest
c) Exchange
d) None of the above




138 A documentary credit is a link provided by an  _______between a buyer and a seller to facilitate international trade.
a) Opening Bank
b) Advising Bank
c) Confirming Bank
d) Reimbursing bank



139 The buyer of the goods, opening an LC is also called an
a) Applicant
b) Beneficiary
c) Creditor
d) Drawer



140 An LC which allows the openers/opening bank to bank out, and cancel the LC is called _______ Letter of Credit.
a) Irrevocable
b) Revocable
c) Transferable
d) Red clause



Answers to Above Questions:-

121
C
125
B
129
B
133
C
137
C
122
B
126
C
130
B
134
B
138
A
123
A
127
B
131
C
135
A
139
A
124
A
128
C
132
A
136
D
140
A


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