If the strike price is less than the forward rate in case of a call option or if the strike price is more than the forward rate in case of a put option, it is:

A bank wants to know the extent to which the loans and investment have been funded with the help of stable deposit base. It should calculate, which of the following?

Investment-A provides return of 12, 12, 12, 12, 12 in each year over a period of 5 years (total 60 and average 12) and Investment B provides return of 6, 19, 10, -4 and 30 in these 5 years (total 60 and average 12). Both the investments provide average annual return of 12. Which one is preferable?

n a REPO transaction, the principal amount exchanged against the securities is lower than the market value of the securities. The margin in this case is called:

In its liquidity management function the treasury has the responsibility for (1) managing short terms funds in domestic currency (2) managing short term funds across the currencies (3) comply with the reserve requirements i.e. CRR and SLR.

RBI has fixed time bands for measuring and monitoring the liquidity gap. The time bands are called:

The following may be broad thoughts on upgrading the bank's digital re-engineering plans: (1) making the bank more relevant to Customers with more flexible financial and non-products. (2) relative benefits of speed vis-à-vis in-house talent. (3) developing the digital eco-systems and platforms that deliver traditional and non-traditional products to customers. (4) organization readiness to re-assigning, re-training and, if need be, recruiting additional resources.

Which of the following factors determine the need for liquidity in case of a bank (1) variability of loan demand (2) variability of deposit (3) cash needs

As per RBI guidelines, which of the following factors are to be taken into consideration by banks for reviewing the country risk (i) political instability (ii) economic policy (iii) inflation (iv) external debt (v) past record of payments.

Under Basel III, the risk weight for capital charge for credit risk on the basis of standardized approach, does not match for claims on foreign banks (based on rating of international rating agencies such as S & P, Fitch, Moody’s Rating), in respect of which of the following:

The amount of Tier 3 capital is limited to ____ of Tier 1 to support the market risk:

The reserve assets with RBI include which of the following (1) foreign currency assets (2) amount of CRR deposited with RBI by banks (3) amount of SLR securities (4) currency in circulation.

The rising interest rates (1) increase the discount rate on the future cash flows (2) decrease the market value of that asset or liability (3) increase the market value of that asset or liability (4) decrease the discount rate on future cash flows

Which of the following is a credit derivative product (1) credit option (2) credit default swap (3) credit linked notes.

The _____ is a means to better capture the risk of loss in extreme but possible circumstances.

In India, initially the following approaches have been adopted for implementation. Which one is correctly stated: (answer to be given as per Basel II)

The amount of Perpetual Non-Cumulative Preference Shares (PNCPS) issued by a bank will be classified in ____as ____ in the balance sheet of the bank:

Indian manufacturer importers can raise trade credit for imports into India an amount up to __:

Which of the following parties are involved in a transaction of forfaiting (a) exporter (b) importer (c) financier (d) bank of exporter (e) bank of importer

A bond with a face value of Rs.100 is being sold in the market for Rs.98. If the coupon rate is 5%, what is the current yield of the bond.