BANK FINANCIAL MANAGEMENT NUMERICALS : 3

ABM/BFM NUMERICALS 

CAIIB-ABM/ BFM- NUMERICALS/ CASE STUDIES 
The measures of money including Bank deposit with RBI, Demand deposiit with the banking system, Term deposit of banking systerm, currency with public, and other deposits with RBI are shown as M0,M1,M2,M3.
1. The liabilities such as current deposits, demand liabilities portion of saving bank, margins held against letter of credit or bank guarantee, balances in overdue fixed deposits are included initially, in .....
a. M0
b. M1
c. M2
d. M3

Ans-b
 
2. The demand deposit of banks are included in ......
a. M0,M1
b. M1,M2
c. M2,M3
d. M1,M2,M3

Ans - b

3. The term deposit of banks are included in ......
a. M0,M1
b. M1,M2
c. M2,M3
d. M1,M2,M3

Ans - c

4. Major portion of which of the following contains, interest free funds and is the most liquid part of money supply:
a. M0
b. M1
c. M2
d. M3

Ans - a

5. While releasing the data relating to inflation increased by the Govt, it is observed that
1) The consumer price index based inflation increased to 11% and
2) Whole sale price index based inflation increased to 8%
3) The govt. claims that due to implementation of Banks Bi-partite Settlement, there is increase in demand of goods and services leading to increase in consumer prices.
4) Further due to increased wages and salaries, there is increase in cost of inputs leading to increase in whole-sale price index. Answer the following questions, based on the above information.
1. The inflation caused by the the information given at point no.3 in the question, is not called as ......
(i) Core inflation, (ii) Demand Pull inflation
(iii) Cost-push inflation
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)

Ans - b

2. The inflation rate of 8%, represented by the whole sale price, is called:
a. Core inflation
b. Headline inflation
c. Demand Pull inflation
d. Cost-push inflation

Ans - b

3. The inflation rate 11% represented by the consumer price, is called:
a. Core inflation
b. Headline inflation
c. Demand Pull inflation
d. Cost-push inflation

Ans - a

4. The inflation caused by the information given at point no.4 in the question, is not called as ......
(i) Core inflation,
(ii) Demand Pull inflation (iii) Cost-push inflation
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)

Ans - a

6. By using the monetary policy, RBI regulates the money supply, availability of money and also cost of money i.e.rate of interest. For this purpose, RBI makes use of no. of tools that include Repo Rate, Bank Rate, Reverse Repo Rate, MSF Rate, SLR, CRR, Market Stabilization scheme. Based on this information answer the following question: 1. Which of the following ensures the solvency of commercial banks ?
a. Statutory Liquidity Ratio
b. Market Stablization Scheme
c. Cash Reverse Ratio
d. Repo and Reverse repo transaction

Ans - a

2. Change in which of the following reduce the funds available with banks for lending purpose ?
a. Repo rate
b. Bank rate
c. Cash reverse Ratio
d. All the above

Ans - c

3. The rate of discount which is used by RBI for rediscounting of commercial instruments from banks is represented by ......
a. Repo rate
b. Bank rate
c. MSF rate
d. Reverse Repo rate

Ans - b

4. Which of the following is used in the process of neutralizing the effect generated by foreign exchange flows in india ?
a. Statutory Liquidity Ratio
b. Market Stablization Scheme
c. Cash Reverse Ratio
d. Repo and Reverse repo transaction

Ans - b

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