CAIIB PAPER NO.

I ADVANCED BANK MANAGEMENT

1. Which of the following economists gave welfare theory of economics..

a. Adam Smith c. Lionel Robbins

2. Micro economics is concerned with.

b. Alfred Marshall d. J.M.Keynes

a. GDP c. Employment
3.

b. individual firms or industries d. all above

Money supply refers to the amount of money : a. With the banks b. With banks and post offices c. With banks, post offices and primary dealers d. In circulation in the economy

4.

What is the Future Value of Present Value of Rs.8000/- after 3 years if the rate of interest is 10% compounded annually. a. Rs.11648/c. Rs.10648/b. Rs.10948/d. Rs.11948/-

5.

What is the effective Rate of Interest if Nominal Interest Rate of 8% p.a is compounded half-yearly.. a. 8.0% c. 8.24% b. 8.16% d. 8.32%

6.

What is the Present Value of Perpetual Annuity of Rs.1000/- per month if rate of interest is 10%......... a. Rs.100000/c. Rs.120000/b. Rs.110000/d. Rs.130000/-

7.

According to Eric Berne, in every individual there are three main ego states called Parent, Adult & Child. Parent ego state is classifies as.. a. Critical & Nurturing c. Strict & Nurturing b. Loving & Nurturing d. Indulgent & Nurturing

8.

In case of borrowers enjoying working capital credit limits of Rs. 10 Cr. and above from the banking system, the working capital (cash credit) component should normally be a. 80 b. 60 c. 25 d. 20 Which of the following is not a Source of Financing Project Cost a. Promoters Contribution b. Term Lending c. Trade Credit d. Subsidy

9.

10. Sanctioned Limit = 3 Lac, Stocks = 6 Lac, Creditors = 2 Lac, Mortgage of

property = 50 Lac, Margin = 30%. How much is the Drawing Power i.e., the amount upto which the borrower can withdraw .. a. 4.2 Lac b. 3.0 Lac c. 6.0 Lac d. 2.8 Lac