JAIIB & CAIIBText Books by IIBF

JAIIB Books by IIBF


CAIIB Books by IIBF



CAIIB BFM Test Quiz Module A Set 1 (201-220) | CAIIB materials for December 2016

Leave a Comment

CAIIB BFM Test Quiz Module A Set 1 (201-220) | CAIIB materials for December 2016


CAIIB BFM MODULE A SET 1



201) Some risks, like foreign exchange risk and interest rate risk are easy to be quantified.

202) A sound risk management would start with a sound risk management policy.

203) Risk management is dynamic and needs to remain in constant focus of the users as well as the top management.

204)Country limit is the maximum exposure on a single country.

205) Highest amount of deal, a deal is allowed to be made is called Deal size limit. 

206) A risk limit, which triggers, on adverse movement of exchange rates is called Stop loss limit.

207) A risk can be defined as an unplanned event with financial consequences resulting in loss or reduced earnings.

208) Movements in exchange rates can adversely affect the value of our foreign exchange holdings.

209) Interest rate risk arises due to adverse movement of interest rates.

210) Overnight limit is the maximum amount a bank can keep overnight, when markets in its time zone are closed.

211) The maximum movement of rates against the position held, so as to trigger the limit — or say maximum loss limit for adverse movement of rates, is called stoploss  limit.

212) Banks are allowed to use derivatives to manage risks of their assets and liabilities, and also for speculation purposes.

213) Thus forward contracts are a firm and binding contracts entered into by two parties.

214) In 2008, Currency futures have also been started in the Indian markets.

215) Authentication of financial message in SWIFTS is based on exchange of RMA / BIC.

216) CHAPS is the British equivalents of CHIPS in the USA.

217) The RTGS of the EURO zone is called Target.

218) NEFT is used for transfer of funds in India.

219) A person must be of Indian origin or an Indian passport holder, staying abroad for indefinite period, to qualify for status of an NRI.

220) NRE saving account is a Rupee account.



0 comments:

Post a comment