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
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
...........
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.
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 likely to be common to all dealers.
It is quite unlike the works of art which the Sotheby’s would place at an auction. The price of Mona
Lisa, say, to an avid collector of Da Vinci’s paintings, would be more than what a Picasso collector
would value it. In sharp contrast, market participants are likely to agree on the price of a T-Bill in the
secondary market. Now winning an auction in a discriminatory price method may not be profitable.
For, it would mean that the winner has overestimated the T-Bill value.
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 ............
country is well placed in the international scene. In fact, there is tremendous potential for forfeiting
in the years to come,” he said. According to him, even after the nuclear tests conducted by India, the
top forfeiters were not worried and continued to accept forfeiting papers to be transacted with India.
Questions:
1. Discuss the mechanism of forfeiting and the role played by banks in forfeiting transactions.
2. How does forfeiting differ from factoring?
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?
1
IIBM Institute of Business Management
IIBM Institute of Business Management
Examination Paper MM.100
Principles and Practices of Banking
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
...........
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.
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 likely to be common to all dealers.
It is quite unlike the works of art which the Sotheby’s would place at an auction. The price of Mona
Lisa, say, to an avid collector of Da Vinci’s paintings, would be more than what a Picasso collector
would value it. In sharp contrast, market participants are likely to agree on the price of a T-Bill in the
secondary market. Now winning an auction in a discriminatory price method may not be profitable.
For, it would mean that the winner has overestimated the T-Bill value.
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 ............
country is well placed in the international scene. In fact, there is tremendous potential for forfeiting
in the years to come,” he said. According to him, even after the nuclear tests conducted by India, the
top forfeiters were not worried and continued to accept forfeiting papers to be transacted with India.
Questions:
1. Discuss the mechanism of forfeiting and the role played by banks in forfeiting transactions.
2. How does forfeiting differ from factoring?
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?
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