CAIIB-General Bank Management – Module A

CAIIB-General Bank Management – Module A Model Questions Tanushree Mazumdar

Question 1 • What is a spot contract in foreign exchange? • Where settlement takes place on the same day • Where settlement takes place on the next day • Where settlement takes place on the second working day after the deal • Where settlement takes place on any day after the second working day

Question 2 • When a currency is costlier in the future than in the present what is it said to be? • At premium • At discount • At par • In the money

Question 3 • What is the date of settlement of funds known as? • Date of settlement • Value date • Deal date • Value at par

Question 4 • Which of the following factors affect the movement of an exchange rate • Fundamental • Technical • Speculative • All the above

Question 5 • Which section in the bank handles processing of deals, reconciliation, etc.? • Dealing room • Mid office • Back office • All the above

Question 6 • What are the banks who are permitted to deal in foreign exchange called? • Authorised Dealers • Money Changers • Full fledged money changers • Restricted money changers

Question 7 • What are entities who are only allowed to buy foreign exchange called? • Money changers • Restricted money changers • Foreign exchange brokers • None of the above

Question 8 • What is a direct exchange rate? • When the exchange rate is quoted without decimals • When 1 unit of foreign currency is expressed as so many units of home/local currency • When 1 unit of home currency is expressed as so many units of foreign currency • When 100 units of home currency is expressed as so many units of foreign currency

Question 9 • Which of the following risks is quantifiable? • Legal • Reputational • Country • Interest rate

Question 10 • Forward contracts are those that can only be bought in specific lots at a certain price to be delivered at a certain time in the future • True • False

CAIIB-General Bank Management – Module A