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Financial market is a market for
lending and borrowing money
facilitate the raising of funds and investment of surplus assets
OTC exchanges for financial products
deals in primary and secondary market for govt. securities

What is the main driver for transformation of treasuries from mere SLR/CRR keepers into profit centres
Increase in volumes
sudden increase in expertise in human resources
volatility in interest rates
regulatory approvals

The following are treasury assets
cash with Reserve Bank of India
G-sec, CDs, CPs and SLR bonds
bills purchased and discounted
fixed assets of the bank

Mid office and Back office handle the following functions
day to day dealing
branch account maintenance
MIS , risk management, confirmation and settlements
arbitrage operations

The following are treasury liabilities
equity shares
reverse repo
current/saving/fixed deposit accounts
call/notice/term money

What is current CRR
7% of net demand and time liabilities
21% of demad and time liabilities
4% of net demand and time liabilities
3 to 20% at the discretion of bank

What is current SLR
7% of net demand and time liabilities
21% of demad and time liabilities
4% of net demand and time liabilities
up to 40% at the discretion of bank

The integrated treasury optimizes profits by exploiting market opportunities in
forex market only
forex market and money market only
money market and security market only
forex market, money market and security market

Treasury of a bank plays important role in allocation of costs to various department/ branches of a bank, on rational basis. This is called
fund costing
fund earning
transfer pricing
transfer earning

Responsibility to monitor the exposure limits and stoploss limits of the treasury is the task undertaken by ___________ in a treasury
back office
front office
head office
middle office

The benefit that accures to a treasury, which operates in different markets simultaneously for profit is called
swap
outright deal
arbitrage
trading

In an integrated market, the premium and discount charged on the currency is decided by
average interest rate differentials of the currency bought and sold
overnight interest rate differential of the currency bought and sold
weekly interest rate differentials of the currency bought and sold
overnight interest rate of currency being sold

The interest rate differential is ______from the spot rate for_________interest yielding currency representing forward discount
added, high
deducted, high
added, low
deducted, low

FIMMDA stands for
Fixed Income and Money Market Derivative Association of India
Fixed Income and Money Market Dealer Association of India
Fixed Income and Money Market Domestic Association of India
Fixed Income and Money Market Depository Association of India

The raising and deploying short term resources by banks with maturity of one day is called
call money
money market
notice money
term money

The interest on treasury bills is in the form of
floating rate
fixed rate
by way of discount
any of the above

The minimum, maximum and multiple amount of certificate of deposit is as under
min Rs. 1 lac, max. no limit multiple Rs. 1 lac
min Rs. 5 lac, max. no limit multiple Rs. 1 lac
min Rs. 5 lac, max. no limit multiple Rs. 5 lac
min Rs. 1 lac, max. no limit multiple Rs. 5 lac

The sale of security with a commitment to repurchase the same security at a later date is referred as :
CBLO
REPO
REVERSE REPO
DERIVATIVE

The RBI makes use of REPO (which one is not correct)
as a monetary policy tool to regulate liquidity in the interbank market
in case of shortage of funds, bank can sell govt. securities to RBI under REPO
in case of surplus of funds, bank can buy govt. securities from RBI under REPO
due to introduction of REPO, all reference windows have been closed by RBI

Govt. securities are issued by whom
Central treasury of Govt. of INDIA
Public debt office of RBI
Issue dept.of RBI
Issue dept. of Govt. of India

The 7% coupon bond moves from Rs.95 to Rs.98, its yield will
remain the same
reduce
increase
no relationship between price of bond and its yield

Why is the price volatility in the case of floating rate instrument is less than that of fixed rate instrument
market likes floating rate instruments
fixed rate instruments are more in number in the market
in the floating rate instrument the coupon rate is realigned to the market rate
the coupon will be less in floating rate bond

A 91 days treasury bill is trading at Rs. 98.59, then its YTM or rear-ended yield will be
5.60%
5.74%
5.32%
5.80%

Bank A lends Rs.10 cr. under BRDS at 7% for 90 days. The effective yield to bank A will be
7.10%
5.74%
7.12%
7.15%

Liquidity adjustment facility is a facility
which RBI permits to bank as a refinance
which RBI permits to banks to cover short terms liquidity problem
Which banks permit to RBI
which RBI permits to govt. for meeting mismatch in receipts and payments

The money in circulation is indicated by which of the following
CRR
currency with public
M3
M2

The objective of monetary policy followed by RBI is (1) to control the rate of inflation (2) to make available credit to all productive sectors of economy (3) to ensure stability of financial markets
1 to 3 all
1 and 2 only
1 and 3 only
2 and 3 only

The minimum and maximum CRR that banks are required as per RBI act is as under
min. 3% and max. 20% of NDTL
min. 3% and max. 20% of DTL
no min. and max. 40% of DTL
RBI discretion

The minimum and maximum SLR that banks are required to maintain as per Banking Regulation Act is as under -
min. 3% and max. 20% of NDTL
min. 3% and max. 20% of DTL
no min. and max. 40% of DTL
RBI discretion

The daily minimum CRR balances should not fall below______% of the amount required for CRR
80%
70%
55%
So much limit

Which of the following is incorrect statement regarding RTGS
RBI is settlement authority
IDRBT is the central processor
in India Y shaped model has been adopted
none of the above

What is minimum and maximum amount of transactions under NEFT :(a) (b)(c) (d)
There is no minimum and maximum amount
The min. is Rs.1 lac and max. is Rs. 1 cr.
The min. Rs. 1 lac and max. no limit
The min. and max. is changed frequently by RBI

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