Finance Elective: Commercial Bank Management

[pic 1]PGDM (2013-15) Term - IV

END-TERM EXAMINATION

Finance Elective: Commercial Bank Management (CBM)

Time: 2 hours                   Max Marks: 100

Mode: Closed Book          Date: 16/09/2014                                  Weightage:  40%

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INSTRUCTIONS:    

1. It’s a Question-cum-Answer Sheet. Write your name & roll # on all odd pages.
2. Answer all questions in the limited space provided.
3. No additional sheets will be provided.
4. Marks and desirable time to spend are specified for each question.
5. Use of Scientific Calculators only is allowed.
6. It’s a CLOSED BOOK/NOTES examination.
7. Verify that the Question Paper contains 20 printed pages.

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QUESTION-CUM-ANSWER SHEET

(Part – A /Objective Questions – Conceptual Ability)

Write Answer to each question of this section in a few words.  

For this Section: [Desirable Time 40 Minutes/Marks 40 x 1 = 40]

Q 1.  All scheduled commercial banks are required to deposit a certain percentage of their Net Demand and Time Liabilities in the form of cash with RBI. What is the name of this ratio and the current rate?

 My Answer is:

CRR (4%)

Q 2. Expand SWIFT?

My Answer is: Society for Worldwide Interbank Financial Telecommunication code

Q 3.  The method of payment where the exporter relies on the undertaking of a bank to pay is:

A. bank guarantee         B. letter of credit         C. letter of comfort        D. none of the above

My Answer is : Letter of credit

Q 4. Credit Conversion Factor (CCF) is used to calculate the credit risk-weighted asset in respect of On-Balance Sheet Exposures or Off-Balance Sheet Exposures?  

My Answer is: Off-Balance Sheet Exposures

Q 5. March 31, 2014 was the due date for payment of Term Loan Installment by a borrower. Borrower failed to pay the same on this due date and the default continued. On which date this loan would be classified as NPA?