Essay on Finance Management

2585 Words Sep 7th, 2014 11 Pages
Examination Paper of Banking & Financial Services Management IIBM Institute of Business Management Examination Paper Principles & Practices of Banking Section A: Objective Type & Short Questions (30 Marks)    This section consists of Multiple Choice & Short Note type questions. Answer all the questions. Part One carries 1 mark each & Part Two carries 4 marks each. MM.100

Part One: Multiple Choices: 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
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Discuss the role of RBI in Indian Banking sector. 2. Write short notes on: a. Repo Rate b. Reverse Repo Rate. 3. Write short notes on: a. Bank Lien b. Right of set off 4. What is cash credit means? END OF SECTION A

Section B: Caselets (40 marks)     This section consists of Caselets. Answer all the questions. Each caselet carries 20 marks. Detailed information should form the part of your answer (Word limit 200 to 250 words). 2 IIBM Institute of Business Management

Examination Paper of Banking & Financial Services Management 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

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