Examination Paper: Banking and Financial Services Management
1
IIBM Institute of Business Management
IIBM Institute of Business Management
Examination Paper MM.100
Principles and Practices of Banking
Section A: Objective Type (30 marks)
•This section consists of Multiple Choice questions & Short Answer type questions.
•Answer all the questions.
•Part One questions carries 1 mark each & Part Two questions carries 4 marks each.
Part One:
Multiple Choices:
1. Frequency of First Tranche Returns is:
a. Weekly
b. Monthly
c. Monthly/quarterly
d. Monthly/quarterly/half-yearly
2. An order for winding up a banking company can be issued by:
a. The High Court
b. The RBI
c. The Central Government
d. The Supreme court
3. Who shall be natural guardian in case of married minor girl?
a. Father
b. Brother in law
c. Father-in-law
d. Husband
4. X a partner in the firm XYZ Co. wants to open a Bank account in the firm’s name. It will require
signatures of:
a. All partners
b. Any one of the partner
c. Managing partner only
d. Sleeping partner not required
5. Public limited companies should have minimum shareholders, before Opening Bank account.
a. 11
b. 7
c. 5
d. 15
Examination Paper: Banking and Financial Services Management
2
IIBM Institute of Business Management
6. If the beneficiary is government then the Expiry of guarantee is governed by the ‘law of
limitation’ ranging from 3 years to:
a. 15 years
b. 30 years
c. 20 years
d. 10 years
7. Charge created on LIC Policy is:
a. Lien
b. Hypothecation
c. Pledge
d. Assignment
8. The device that combines the parallel input data into single serial output data is known as:
a. Switcher
b. Multiplexer
c. Encoder
d. Front end processor
9. In market skimming pricing strategy:
a. Initially price is lower and then it is increased
b. Initial price is high and is maintained high
c. Initial price is low and is maintained low
d. Initially price is higher and then it is reduced
10. The marketing personnel need information ………… intervals.
a. At yearly
b. At quarterly
c. At monthly
d. On a continuous basis and regular
Part Two:
1. Explain ‘Cryptography’ and the need of keys. Convince.
2. Define the term ‘obscenity’ used in E-commerce.
3. What do you understand by Real time accessement?
4. What ‘Marketing mix’ conveys in modern marketing theory? Explain in short.
5. Write a note on ‘Labeling’ in product development.
END OF SECTION A
Examination Paper: Banking and Financial Services Management
3
IIBM Institute of Business Management
Section B: Caselets (40 marks)
•This section consists of Caselets.
•Answer all the questions.
•Each Caselet carries 20 marks.
•Detailed information should form the part of your answer (Word limit 150 to 200 words).
Caselet 1
There is a lacuna in the present T-Bill auction system of RBI. The dealers (investors) are subject to
what is called the ‘Winners Curse’. The value of a T-Bill to a dealer is the price it can fetch in the
secondary market. This is an unobserved random value, which is lik
Questions:
1. How does the winner in such an auction become the loser due to the ‘winner curse’?
2. Explain the role of primary dealers in the money market.
Caselet 2
In a bid to familiarize banks, exporters and other financial bodies with ‘Forfeiting’, the State Bank of
India (SBI) will soon be setting up a three-man cell at its international division in Mumbai for
advisory purposes. According to Mr. D. Ian Guild, Senior Advisor, Forfeiting & Syndications
Group, Standard Bank, the cell was being set up after a series of meetings with the bank, and is
essentially aimed at spreading the message of Forfeiting as an effective trade financing mechanism
to increase exports. Suggesting that forfeiting was the ideal springboard for effecting a quantum
Questions:
1. Discuss the mechanism of forfeiting and the role played by banks in forfeiting transactions.
2. How does forfeiting differ from factoring?
END OF SECTION B
Section C: Applied Theory (30 marks)
1. Government securities are referred to as ‘gift-edged securities’, as they are absolutely secured.
RBI, being the banker to the Government, issues different types of paper on behalf of the latter, to
cater various requirements. Discuss the various types of Government securities that are issued by
the RBI.
2. A sound regularly framework in regulating capital markets is expected to provide transparency,
maintain market integrity, fairness and ensure investor protection. However, lack of adequate
regulations can lead to manipulations which endanger the integrity of the market and damage the
confidence of investors and market participants in India?
END OF SECTION C
1
IIBM Institute of Business Management
IIBM Institute of Business Management
Examination Paper MM.100
Principles and Practices of Banking
Section A: Objective Type (30 marks)
•This section consists of Multiple Choice questions & Short Answer type questions.
•Answer all the questions.
•Part One questions carries 1 mark each & Part Two questions carries 4 marks each.
Part One:
Multiple Choices:
1. Frequency of First Tranche Returns is:
a. Weekly
b. Monthly
c. Monthly/quarterly
d. Monthly/quarterly/half-yearly
2. An order for winding up a banking company can be issued by:
a. The High Court
b. The RBI
c. The Central Government
d. The Supreme court
3. Who shall be natural guardian in case of married minor girl?
a. Father
b. Brother in law
c. Father-in-law
d. Husband
4. X a partner in the firm XYZ Co. wants to open a Bank account in the firm’s name. It will require
signatures of:
a. All partners
b. Any one of the partner
c. Managing partner only
d. Sleeping partner not required
5. Public limited companies should have minimum shareholders, before Opening Bank account.
a. 11
b. 7
c. 5
d. 15
Examination Paper: Banking and Financial Services Management
2
IIBM Institute of Business Management
6. If the beneficiary is government then the Expiry of guarantee is governed by the ‘law of
limitation’ ranging from 3 years to:
a. 15 years
b. 30 years
c. 20 years
d. 10 years
7. Charge created on LIC Policy is:
a. Lien
b. Hypothecation
c. Pledge
d. Assignment
8. The device that combines the parallel input data into single serial output data is known as:
a. Switcher
b. Multiplexer
c. Encoder
d. Front end processor
9. In market skimming pricing strategy:
a. Initially price is lower and then it is increased
b. Initial price is high and is maintained high
c. Initial price is low and is maintained low
d. Initially price is higher and then it is reduced
10. The marketing personnel need information ………… intervals.
a. At yearly
b. At quarterly
c. At monthly
d. On a continuous basis and regular
Part Two:
1. Explain ‘Cryptography’ and the need of keys. Convince.
2. Define the term ‘obscenity’ used in E-commerce.
3. What do you understand by Real time accessement?
4. What ‘Marketing mix’ conveys in modern marketing theory? Explain in short.
5. Write a note on ‘Labeling’ in product development.
END OF SECTION A
Examination Paper: Banking and Financial Services Management
3
IIBM Institute of Business Management
Section B: Caselets (40 marks)
•This section consists of Caselets.
•Answer all the questions.
•Each Caselet carries 20 marks.
•Detailed information should form the part of your answer (Word limit 150 to 200 words).
Caselet 1
There is a lacuna in the present T-Bill auction system of RBI. The dealers (investors) are subject to
what is called the ‘Winners Curse’. The value of a T-Bill to a dealer is the price it can fetch in the
secondary market. This is an unobserved random value, which is lik
Questions:
1. How does the winner in such an auction become the loser due to the ‘winner curse’?
2. Explain the role of primary dealers in the money market.
Caselet 2
In a bid to familiarize banks, exporters and other financial bodies with ‘Forfeiting’, the State Bank of
India (SBI) will soon be setting up a three-man cell at its international division in Mumbai for
advisory purposes. According to Mr. D. Ian Guild, Senior Advisor, Forfeiting & Syndications
Group, Standard Bank, the cell was being set up after a series of meetings with the bank, and is
essentially aimed at spreading the message of Forfeiting as an effective trade financing mechanism
to increase exports. Suggesting that forfeiting was the ideal springboard for effecting a quantum
Questions:
1. Discuss the mechanism of forfeiting and the role played by banks in forfeiting transactions.
2. How does forfeiting differ from factoring?
END OF SECTION B
Section C: Applied Theory (30 marks)
1. Government securities are referred to as ‘gift-edged securities’, as they are absolutely secured.
RBI, being the banker to the Government, issues different types of paper on behalf of the latter, to
cater various requirements. Discuss the various types of Government securities that are issued by
the RBI.
2. A sound regularly framework in regulating capital markets is expected to provide transparency,
maintain market integrity, fairness and ensure investor protection. However, lack of adequate
regulations can lead to manipulations which endanger the integrity of the market and damage the
confidence of investors and market participants in India?
END OF SECTION C
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