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ADVANCED BANK MANAGEMENT (ABM) 

SET 1

1. Which of the following statements are true regarding credit derivatives products ?
i) The Protection Buyer is the lending Bank
ii) The Protection Seller can be another bank or any other organisation
iii) The credit asset is transferred in case of derivatives .
Answer : Only (i) and (ii)
​

2. Which of the following are counted while computing value of compensation of employees ?
Answer:
Wages and Salaries in Cash & Rent Free Quarters provided to workers 

3. Which of the following can be a reality in life ?
Answer : 
Less than unit elastic demand & More than unit elastic demand 

4. When an individual is of the view that the course of events is determined by one's efforts and action and not due to external events or luck , this is called as ..................
Answer : Internal Locus of Control

5. Amount ( in INR )
Capital : 180
Reserves : 20
Term Loan : 300
Bank Cash Credit  : 200 
Trade Creditors  : 50
Provisions : 50 
Net Fixed Assets : 400
Stock : 150
Cash : 50
Receivables : 150
Goodwill : 50
What is the Current Ratio ? Hint  :(Current Assets/Current Liabilities )
Answer :
EXPLANATION:
Current Assets = 50 + 150 + 150 = 350
Current Liabilities = 200 + 50 + 50 = 300
Current Ratio = 350 /300 = 1.17 : 1    


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