CAIIB-BFM – Mock Test- 10
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1.
Capital charge for market risk is made up of 2 components (1) for movement in interest rates (2) for factors related to individual issuer (3) for losses that may arise due to sale or purchase (4) for losses that may arise on account of holding (answer to be given as per Basel II)
2.
Which of the following is not a part of the trading book of a bank from risk management view point:
3.
Under Basel III, the risk weight for capital charge for credit risk on the basis of standardized approach is ___ % for staff loans secured by superannuation benefits or mortgage of flat / house:
4.
Which of the following is the benefit of regulation (i) improvement in safety of banking industry (ii) leveling the competitive playing field of banks (iii) promotion of sound business and supervisory practices (iv) controlling and monitoring systemic risk (v) helping in recovery of funds lent by banks
5.
Under Basel III, by using the Basic Indicator Approach, banks must hold capital for operational risk equal to the average over the previous ____ years of a fixed percentage (denoted as alpha) of positive annual gross income.
6.
There is general liquidity crunch in the market and it is affecting the trading liquidity adversely. It is called:
7.
Under liberalized remittance scheme of RBI, the maximum amount that can be remitted is restricted. Which of the following in this connection is not correct:
8.
There is linkage between the following (i) risk (ii) return (iii) capital (iv) market conditions.
9.
What purpose is served by credit rating of a loan account:
10.
Which of the following is a feature of Common Share for regulatory purpose, as per Basel III prescriptions: (1) common shares should have voting rights (2) common shares are most subordinated claim in liquidation of a bank (3) principal amount is perpetual and never paid out of liquidation (4) payment of dividend is not mandatory.
11.
In which of the following methods to calculate the change in the value of portfolio, the user has not to make any explicit assumptions:
12.
For non-EDI ports, AD Bank of the importer shall upload the BoE data in IDPMS as per message format “Manual BoE reporting" on a ___ basis on receipt of BoE from the Customer/Customs office.
13.
As per Basel III, Tier 2 capital comprises which of the following (1) general provisions and loss reserves (2) debt capital instruments issued by bank (3) preference share capital instruments with redeemable or cumulative feature (4) revaluation reserve (5) stock surplus i.e. share premium resulting from issue of Tier 2 eligible instruments.
14.
As per Basel III implementation in India, within total capital of 9% of risk weighted assets, the Tier 2 capital can be:
15.
The risk arising due to intermediaries in international trade like shipping companies is called:
16.
For which of the following purposes, the amount of foreign currency that can be released by the Authorised Dealers Category – 1 does match:
17.
The IBU at IFSC need to maintain / comply with which of the following 1) CRR 2) SLR 3) Liquidity coverage ratio (LCR) 4) net stable funding ratio
18.
Basel III capital regulations are based on 3 mutually reinforcing pillar. These pillars are (1) Pillar-1 minimum capital standards (2) supervisory review of capital adequacy (3) risk management.
19.
Risk reduction is achieved by adoption of strategies which eliminate the uncertainties associated with the risk element. This process is called:
20.
What were the benefits of technology in International Banking 1) accuracy, 2) speed, 3) fraud prevention 4) lower transaction costs 5) ease of doing business etc.
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