CAIIB · BFM · Chapter 1

5 Day 100 Ques 100 Concepts

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Bank Financial Management — CAIIB.

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Q

What is the difference between a Direct Quote and an Indirect Quote in foreign exchange?

A

A Direct Quote expresses the home currency per unit of foreign currency (e.g., Rs/USD), while an Indirect Quote expresses foreign currency per unit of home currency (USD/Rs).

Q

What is the CRR applicable to scheduled commercial banks as on 31 May 2026?

A

CRR is 3.00% maintained on fortnightly average basis.

Q

What is a Spot Rate in foreign exchange markets?

A

A Spot Rate is the exchange rate for immediate delivery of currency, typically settled on a T+2 basis.

Q

What is the SLR applicable to scheduled commercial banks as on 31 May 2026?

A

SLR is 18.00% maintained on a daily basis.

Q

What does the Bid Rate represent in a foreign exchange transaction?

A

The Bid Rate is the rate at which the market maker buys the base currency from the customer.

Q

What is a Vostro account from a bank's perspective?

A

An INR account maintained by a foreign bank with an Indian bank.

Q

How is the Spread in a foreign exchange quote calculated?

A

The Spread is the difference between the Ask (Offer) rate and the Bid rate.

Q

What is a Loro account in correspondent banking?

A

Third party's reference to another bank's Vostro account.

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