CAIIB ABFM By Ashish Sir Class 1
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Advanced Business and Financial Management — CAIIB.
One-liners from this chapter
Free sample — 8 of 65 rapid-fire Q&A cards.
What is the primary objective of Advanced Business and Financial Management (ABFM) as a CAIIB subject?
ABFM aims to equip senior bankers with advanced skills in financial analysis, strategic decision-making, and risk management to handle complex banking and business scenarios effectively.
What is the primary focus of CAIIB ABFM subject for banking professionals?
Advanced financial and business management concepts for bankers
What does the term 'capital budgeting' refer to in the context of financial management?
Capital budgeting refers to the process of evaluating and selecting long-term investment proposals that involve significant capital expenditure, using techniques like NPV, IRR, and payback period.
What is the meaning of 'opportunity cost of capital' in investment decisions?
Return foregone on next best alternative investment available
What is Net Present Value (NPV) and how is it used in investment appraisal?
NPV is the difference between the present value of cash inflows and the present value of cash outflows over a project's life; a positive NPV indicates the investment adds value and should be accepted.
What is the difference between book value and market value of a firm?
Book value is accounting value; market value reflects investor expectations
What is the Internal Rate of Return (IRR) in project evaluation?
IRR is the discount rate at which the NPV of a project equals zero; a project is acceptable if its IRR exceeds the firm's required rate of return or cost of capital.
What is the concept of 'time value of money' in financial management?
A rupee today is worth more than a rupee in the future
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