All India Management Association (AIMA) 2007 M.B.A Marketing Management Central Banking
Friday, 01 February 2013 11:25Web
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(d) Both (II) and (III) above
(e) All (I), (II) and (III) above.
27. Which of the subsequent is not actual with regard to the impact of NPAs on banks?
(a) Erode current profits
(b) Diminution in the value of loan assets
(c) Reduction in interest income
(d) Limit recycling of funds
(e) Requires accretion to capital funds.
28. In which of the subsequent financial instruments, other than loans, banks are facing increased credit risk?
I. Inter bank transactions.
II. Foreign exchange transactions.
III. Bonds.
IV. Swaps.
(a) Only (I) above
(b) Both (I) and (II) above
(c) (I), (III) and (IV) above
(d) (II), (III) and (IV) above
(e) All (I), (II), (III) and (IV) above.
29. The RBI is assigned the role of performing supervisory functions by virtue of the powers conferred by the RBI Act, 1934. Which 1 of the subsequent is not included under the RBI Act, 1934?
(a) Inspection of banks
(b) Issues related to furnishing credit info from the commercial banks
(c) Power of RBI to impose penalties
(d) Definition of NBFCs
(e) Winding petitions of NBFCs.
30. The major risk banks must measure, monitor and manage is
(a) Technological risk
(b) Forex risk
(c) Credit or default risk
(d) Liquidity risk
(e) Interest rate risk.
END OF part A
part B : Caselets (50 Marks)
• This part consists of ques. with serial number one – 5.
• Answer all ques..
• Marks are indicated against every ques..
• Detailed explanations should form part of your ans.
• Do not spend more than 110 - 120 minutes on part B.
Caselet 1
learn the caselet carefully and ans the subsequent question:
1. a. Explain the loan review process. Is it an indispensable function of a bank management? If yes, why and if no why not? ( 3 marks)
b. What are the warning signals to a bank management that indicate the adverse features of a issue loan? ( 3 marks)
c. What steps should a banker initiate in trying to resolve a issue loan situation? ( 4 marks)
d. Which of the subsequent restrictive loan covenants are affirmative or negative covenants - (1) restrictions on payment of dividends, (2) requirement to insure opted assets, (3) restrictions against taking on new debt, (4) the requirement of filing periodic financial statements with the bank, (5) a requirement of securing bank approval before adding to a borrower's stock of fixed assets (6) requiring a borrowing customer to maintain a current ratio not lower than 1.5 and (7) the stipulation that prior bank approval of a proposed merger must be found. ( 4 marks)
| Earning: Approval pending. |
