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CAIIB-General Bank Management – Module A

Test your knowledge on foreign exchange contracts and bank operations with this set of model questions. Explore concepts like spot contracts, exchange rates, risks, and more.

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CAIIB-General Bank Management – Module A

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

  2. 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

  3. 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

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

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

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

  7. 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

  8. 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

  9. 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

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

  11. 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

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