Final Exam - Commercial Banking |, Exams of Banking and Finance

Download Final Exam - Commercial Banking | and more Exams Banking and Finance in PDF only on Docsity! Kathmandu College of Management (KCM) Kathmandu University Bachelor of Business Administration Final Term Examination Subject: Commercial Bank Management Course Code: Program: BBA IV Year Time: 3 hrs Semester: VIII FM : 75 Each question of Section A, B and C bears 1, 5 and 10 marks respectively. Attempting all the given questions within the limits of choice is strictly mandatory and hence, candidates are hereby cautioned beforehand to manage their valuable and limited time properly among each sections. Wherever applicable, candidates are required to give the necessary reasons and justifying statements/theories/relations/formulae to backing up their answers. SECTION A: OBJECTIVE QUESTIONS Choose the correct answer among the given options. Attempt all [15 x 1 = 15 marks] 1. Which of the following is not the constituent of CAMPARI model: ○ Character ○ Margin ○ Repayment ○ Assets 2. Which among the following is true for Corporate/Unit Banking Organizations: ○ They offer all the services from one office ○ New Banks start as unit organization ○ They have decentralized treasury management system ○ They have centralized treasury management system 3. Bank Holding Organization is established to: (Tick the wrong option) ○ Substitute for branch banking ○ To take tax advantages on overall profit/loss ○ For greater ease in accessing funds in capital markets ○ For enjoying leader power in the banking industry 4. Which of the followings is Repriceable Assets of a Bank ○ Variable Rate Loans and Securities ○ Legal Reserves at the Central Bank ○ Money Market Deposits ○ Long Term Savings and Retirement Accounts 5. Bank regulations serves the following purposes: (Tick the wrong option) ○ To control the supply of loans and Advances ○ To ensure equal opportunity and fairness in the public’s access to credit and other financial services ○ To provide the government with credit and other services ○ To protect the economy of country against inflationary pressures 6. Which of the following is a good example of fair corporate governance practice: ○ Audit Committee comprises of executive directors of board ○ Audit Committee comprises of non-executive directors of board ○ Audit Committee comprises of combination of executive and non-executive directors of board ○ Audit Committee comprises of managers of the bank 7. Under which heading does “Profit on Sale of Investment of Foreign Security” come in the bank’s statement? ○ Interest Income ○ Foreign Exchange Gain ○ Non-operating income ○ Other incomes 8. Translation of ROA into ROE of a bank is brought about/affected by: ○ Operating Leverage ○ Financial Leverage ○ Financial Break Even Point ○ Combined Leverage 9. Which of the following is not the part of CAMELS credit analysis procedure ○ Capital Adequacy ○ Asset Quality