CUSTOMER_CODE
SMUDE
DIVISION_CODE
SMUDE
EVENT_CODE
SMUAPR15
ASSESSMENT_CODE MA0042_SMUAPR15
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
16512
QUESTION_TEXT
Examine the role of Financial System in the Indian Perspective.
Discuss the impact of Liberalization on the financial system.
SCHEME OF
EVALUATION
A. Role of financial system is to accelerate the rate of capital
formation.
a.Positive initiatives that are taken up by regulatorsand
government only can achieve it.
b.Two categories of peoples exists in any system.
1.People whose income exceedstheir expenditure
2.People whose expenditureexceeds their income
c.Creates opportunity for savers a surplus forspending (Points to
be elaborated)
B. Liberalization–
a.Radical measures taken in 1992–1993 torestructure the economic
system
b.Focus was to remove structural weakness anddevelop markets on
stable grounds
c.Reforms had an impact in government securities
d.It develops a active secondary market
e.Developing market structure and strengtheningrisk management
and systems in the stockexchange
f.Increase in the number of participants in thestock market
g.Introduction of new instruments
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
16514
QUESTION_TEXT
Explain the concept of a Treasury Dealing Room and its
Organizational Structure.
SCHEME OF
EVALUATION
It refers to the bank’s interface with financial markets both national
and international. The dealing room is the primary unit for managing
the market risks of the bank and is therefore allocated some
discretionary limits. All dealers provide written undertakings to the
bank to adhere to the rule. [Some guidelines to be mentioned]
Organizational structure of the dealing room–
A.Front office operation
B.Middle office operation
C.Back office operation
[Above points to be explained in one or two paras]
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
73593
QUESTION_TEXT
Explain the different parties involved in ADR/GDR issues.
1.
2.
3.
4.
SCHEME OF EVALUATION
5.
6.
7.
Issuer company (1 mark)
Lead manager (2 marks)
Co-managers/underwriters (1 mark)
Depository (2 marks)
Custodian (2 marks)
Legal advisors (1 mark)
Auditors (1 mark)
(1.5  6 = 10 marks)
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
73595
QUESTION_TEXT
Explain the different criteria which are used to assess the
earning quality of banks.
SCHEME OF
EVALUATION
1. Operating profit to average working funds ratio.
2. Net interest margin to total assets ratio.
3. Return on average capital employed ratio.
4. Interest income to total income ratio.
5. Non-interest income to total income ratio.
(2  5 = 10 marks)
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
125863
QUESTION_TEXT
Write a short note on Derivative markets.
Meaning:
3 Marks
*
Forward rate agreement
*
Swap
*
Options
*
Futures
*
Forwards
*
Call options
*
Put options
SCHEME OF EVALUATION
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
125866
QUESTION_TEXT
What are the pillars of balanced score card that rate
performance of banks?
SCHEME OF
EVALUATION
1.
Financial performance
2.
Customer performance
3.
Internal process management
4.
Innovation and learning