SOLVED CAIIB COMBINED PAPER 42:
1. As per RBI guidelines, which of the following, among others, is / are the principal requirements for issue of CP?
(i) Issuing company should have minimum credit rating of P2,
(ii) Net worth as per last balance sheet must not be below Rs 2 crore
a. Only (i)
b. Only (ii)
c. Either (i) or (ii)
d. Both (i) and (ii)
Ans - a
2. Verification and settlement of the deals concluded by the dealers is not performed by ......
(i) front office,
(ii) Treasury administration,
(iii) Risk management
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - b
3. Which of the following are macro-economic factors?
(i) GDP growth rate,
(ii) stock markets and commodity markets,
(iii) relative inflation
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - a
4. In which rate the currencies are mostly bought and sold?
a. swap
b. forward
c. spot
d. repo
Ans - c
5. The value of a derivative is determined by ......
a. the value of the underlying
b. notional principal amount
c. FIMMDA
d. FEDAI
Ans - a
6. One of the essential differences between an OTC and an Exchange traded derivative is ......
a. OTC derivatives are cheaper while Exchange traded derivatives are costly
b. OTC derivatives are for customers while Exchange traded derivatives are for banks
c. In OTC derivatives, counter party risk is prominent, whereas in Exchange traded derivatives, counter party risk is totally absent
d. OTC derivatives are for hedging risks, whereas Exchange traded derivatives are used for speculation
Ans - c
7. In case of free currencies, forward premium or discount is exactly equal to the difference between ......
a. risk-free interest rate of the two currencies
b. inflation rate in both the countries
c. Spot rate and Tom rate
d. LIBOR and RBI reference rate
Ans - a
8. Globalization does not refer to ......
(i) The process of integrating domestic market with global markets, characterized by free capital flows and minimum regulatory intervention,
(ii) Full convertibility of all currencies in the world,
(iii) Removal of all trade barriers in the world
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - c
9. In the call money (a money market instrument), funds borrowed by banks need to be repaid ......
a. on the same day
b. on the next working day
c. within a fortnight
d. within a year
Ans - b
10. Which of the following T-bills are issued fornightly on Wednesday preceding reporting Friday.
a. 91 days T-bill
b. 182 days T-bill
c. 364 days T-bill
d. both b and c
Ans - c
11. In India, conventionally bonds are issued by institutions in ...... sector while debentures by corporates in ...... sector.
a. private, public
b. public, private
c. either of a or b
d. none of these
Ans - b
12. Debentures are not governed by ......
(i) Law of Contract,
(ii) BR Act,
(iii) Company Law
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - c
(i) Issuing company should have minimum credit rating of P2,
(ii) Net worth as per last balance sheet must not be below Rs 2 crore
a. Only (i)
b. Only (ii)
c. Either (i) or (ii)
d. Both (i) and (ii)
Ans - a
2. Verification and settlement of the deals concluded by the dealers is not performed by ......
(i) front office,
(ii) Treasury administration,
(iii) Risk management
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - b
3. Which of the following are macro-economic factors?
(i) GDP growth rate,
(ii) stock markets and commodity markets,
(iii) relative inflation
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - a
4. In which rate the currencies are mostly bought and sold?
a. swap
b. forward
c. spot
d. repo
Ans - c
5. The value of a derivative is determined by ......
a. the value of the underlying
b. notional principal amount
c. FIMMDA
d. FEDAI
Ans - a
6. One of the essential differences between an OTC and an Exchange traded derivative is ......
a. OTC derivatives are cheaper while Exchange traded derivatives are costly
b. OTC derivatives are for customers while Exchange traded derivatives are for banks
c. In OTC derivatives, counter party risk is prominent, whereas in Exchange traded derivatives, counter party risk is totally absent
d. OTC derivatives are for hedging risks, whereas Exchange traded derivatives are used for speculation
Ans - c
7. In case of free currencies, forward premium or discount is exactly equal to the difference between ......
a. risk-free interest rate of the two currencies
b. inflation rate in both the countries
c. Spot rate and Tom rate
d. LIBOR and RBI reference rate
Ans - a
8. Globalization does not refer to ......
(i) The process of integrating domestic market with global markets, characterized by free capital flows and minimum regulatory intervention,
(ii) Full convertibility of all currencies in the world,
(iii) Removal of all trade barriers in the world
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - c
9. In the call money (a money market instrument), funds borrowed by banks need to be repaid ......
a. on the same day
b. on the next working day
c. within a fortnight
d. within a year
Ans - b
10. Which of the following T-bills are issued fornightly on Wednesday preceding reporting Friday.
a. 91 days T-bill
b. 182 days T-bill
c. 364 days T-bill
d. both b and c
Ans - c
11. In India, conventionally bonds are issued by institutions in ...... sector while debentures by corporates in ...... sector.
a. private, public
b. public, private
c. either of a or b
d. none of these
Ans - b
12. Debentures are not governed by ......
(i) Law of Contract,
(ii) BR Act,
(iii) Company Law
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - c