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What type of risk out of the following is taken care of by RTGS
operational risk and settlement risk
liquidity risk and market risk
settlement risk and systemic risk
legal risk and interest rate risk

Fx- clear is operated by
RBI
CCIL
FEDAI
SEBI

The major risk the treasury is exposed, out of the following
credit risk
market risk
operational risk
liquidity risk

Volatility of exchange rate in case of currency means
large increase in selling price
large increase in buying price
variablity of price, upward or downward
large variation of price, selling or buying

Which of the following is correct regarding position limits for treasury risk management
position limits are fixed by currency wise
aggregate position is expressed in rupees
for aggregate purpose, the currencywise net position is first calculated in USD, than converted in rupees
all these are correct statements

When the bank lends in money market to other bank and the other bank is not able to make the repayment on due date, what type of the risk takes place
liquidity risk
default risk
settlement risk
systemic risk

Due to bankruptcy of bank B , it has failed to meet its repayment commitments towards bank A, that had lent money to the bank in a call money market. What type of risk Bank A is exposed to
liquidity risk
default risk
settlement risk
Systemic risk

The market risk has 3 main components
liquidity risk, settlement risk, currency risk
liquidity risk, interest risk, currency risk
liquidity risk, interest risk, equity risk
commodity risk, interest risk, equity risk

A security dealer purchases a particular security in the expectation of rise in price, next day. The payment is to be made for this on next day. Next day the market crashes, due to which he has to borrow the funds, at any cost. In this case
the settlement risk has arisen
liquidity risk has translated into interest rate risk
liquidity risk can get converted into settlement risk
default in payment will create systemic risk

In addition to the liquidity risk, the risk ________is present where there is mismatch between the assets and liabilities
interest rate risk
counterparty risk
default risk
systemic risk

The overnight VaR of 1 year govt. security yield is 0.20% with a current yield of 7.50%. At 99% confidence level, there is ---------possibility of loss being higher that VaR
0.20%
0.75%
0.95%
1%

The relationship between the price and the yield to maturity is-----------:
Perverse
Direct
Inverse
cordial

The rate of discount at which the present value equals the market price of a bond is known as the
coupon rate
interest rate
yield to maturity
current return

A bond with a face value of Rs.1000 is being sold in the market at Rs. 985. This indicates that
interest rate in the market and coupon rate of the bank are equal
interest rate in the market is more than the coupon rate of the bond
interest rate in the market is less than thecoupon rate of the bond
interest rate and coupon rates have not relation with the price of bond

A bond with a face value of Rs100 is being sold in the market for Rs.98. If the coupon rate is 5%, what is the current yield of the bond
5.10%
5%
4.90%
6%

If the change in yield of a bond is given and modified duration is also given, the percentage change in the price of the bond can be calculated as
change in the yield / modified duration
change in the yield x modified duration
change in the yield + modified duration
change in the yield – modified duration

For an effective risk management of treasury operations, it is expected of banks to ensure functional segregation between
zonal office head office and branches
branches, zonal office, mid office
mid office, head office, back office
front office, mid office and back office

For controlling market risk in treasury, which of the following limits are fixed :(1) counterparty exposure limit (2) pre-settlement limit (3) intra day ,overnight open position and stoploss limit (4) forex borrowing limit
1 and 3 only
2 and 4 only
1 only
3only

The derivative products that can be directly obtained from banks are called
exchange products
over the counter products
exchange traded products
counterparty products

Which of the following statement is correct regarding the settlement of OTC and exchange traded derivatives
OTC derivatives and exchange traded derivatives are mostly settled by cash
OTC derivatives and exchange traded derivatives are mostly settled by physical delivery
OTC derivatives and exchange traded derivatives are mostly settled by cash on net settlement basis
OTC derivatives and exchange traded derivatives are mostly settled by cash and physical delivery respectively

USD is carrying higher rate of interest while rupee is carrying lower rate of interest
the rupee will be at premium and USD will be at discount
the rupee will be at discount and USD will be at premium
the rupee and USD will be at premium
the rupee and USD will be at premium

The holder of a forward contract cannot get the benefit of market rate if it is better than the contracted rate, on the date of utilization. This advantage is called :
opportunity cost
hedging cost
transfer cost
risk cost

A company has raised a loan at floating interest rate and it is of the view that due to tight liquidity position, the market interest rates are likely to increase. It can go for which type of interest rate swap
fixed rate to floating rate
floating rate to fixed rate
one floating rate to another floating rate
any of these

What is the no. of maturity buckets and what is the min. and max. period of these buckets
8, min. 1 day max. 5 years
8 min. 1 day max. 10 years
11 from next day to more than 5 years
10, min. 1 day max. over 10 years

What is the purpose of maturity buckets
measuring and monitoring the credit risk
measuring and monitoring the credit risk
measuring and monitoring the liquidity risk
measuring and monitoring the market risk

Forward contracts are used to hedge the following risk
reputational risk
legal risk
exchange rate risk
operational risk

T bills are valued at
T bills are valued at acquisition cost
T bills are valued at book cost
T bills are valued at carrying cost
T bills are valued at repurchase cost

Under the exchange control regulations, brokers are prohibited from doing what
from doing long term swap
from doing short term swap
from doing spot transaction
from maintaining exchange position

A treasury bill maturing on 28/06/2015 is trading in the market on 03/07/2014 at a price of Rs. 92.8918. What is the discount rate inherent in this price
7.7925
7.7584
7.7834
more information required

Which of the following participant in the call markets are allowed to lend as well as borrow
mutual funds
banks and primary dealers
Corporate
financial institutions

XYZ Ltd.is planning to issue a CP of Rs.25 lac. The following additional details are provided Maturity period 3 months i.e. 90 daysEffective rate of interest i.e. 10.5%Calculate the issue price
Rs.42,42,837
Rs.24,36,908
Rs. 24,52,752
Rs. 24,52,752

If the RBI announces that it has done repos of Rs.3000/- cr. ,what does this imply
RBI has lent securities worth Rs.3000 cr. through the repo markets to the participants
RBI has reversed the repo deals of participants who entered ionto a repo with RBI
RBI has inducted funds amounting to Rs.3000 cr. into the market
) RBI has borrowed securities from the banking system, and lent them onward into the repo market

. A 364 days CP, maturing on28/06 2015 is trading on 17/072014, at a price of Rs.93.3375. What is the yield inherent in this price : ( No. of days taken as 346)
7.5500%
7.5300%
7.7400%
More information required

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