1With regard to bank bills, the bill is sold at a discount:

Select one:

a.because the bank needs to find a buyer.

b.to encourage buyers.

c.because the difference between the initial price and the final sale price is the return to the holder.

d.because the bank pays the face value of the funds to the borrower at maturity.

2Which of the following statements about market-rate-related items such as forward-rate agreements is incorrect?

Select one:

a.They are generally called off-balance-sheet items

b.They are liabilities that may require an outflow of funds for a bank

c.They are included in the BIS capital-adequacy guidelines

d.They form a small part of banks' OBS business

3Which of the following statements about bank capital under Basel III isfalse?

ITier 1 capital includes retained earnings, but not mandatory convertible bonds

IICommon Equity Tier 1 (CET1) capital includes retained earnings, but not contingent convertible bonds

IIITier 1 capital includes retained earnings, but not contingent convertible bonds

IVCommon Equity Tier 1 (CET1) capital includes retained earnings, but not mandatory convertible bonds

Select one:

III

I

II

IV

I and IV

4After applying the regulator-stipulated risk weightings, ParwadaBank has estimated that it has risk-weighted assets of $14.90 billion out of a total asset figureof $24.27 billion.

What is the minimum Tier 1 capital (in $million) required out of ParwadaBank's total capital requirementif you assume Basel III requirements?

Select one:

a.The correct answer is not listed here.

b.$670.50 million

c.$1192.00 million

d.$1092.15 million

e.$1456.20 million

5Which of the following is not one of the principal aims of Basel III:

Select one:

a.Boost the banking sector's ability to absorb shocks arising from financial and economic stress

b.Improve risk management and governance

c.Bring all off-balance sheet exposures to accounts

d.Strengthen banks' transparency and disclosure.

6A ________ is a financial intermediary that deals mainly in the flow of funds between members. Membership is generally derived from some common bond.

Select one:

a.savings bank

b.superannuation fund

c.credit union

d.merchant bank

7Which of the following statements about project-finance on a non-recourse basisis true?

I.Project financing is typically syndicated to a consortium of lenders due to the vast scale of many projects.

II.Projectfinance loans are provided to a separate legal entity that is established for the purpose of the project.

III.Projectfinance loans are secured by the assets and operations of the project's sponsors.

Select one:

I

III

IandII

IIandIII

None of the listed statements are true.

8With a defined benefit scheme, the amount of superannuation funds paid to a member on retirement consists of all contributions paid plus income earned by the fund.

Select one:

True

False

9A managed fund that offers a balanced growth fund invests mainly in securities that have the potential for large capital growth over time.

Select one:

True

False