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Advanced Wealth Management Course (IIBF) - Paper 3

Part II:Ch 9: Ready Forward Contracts or Repos

Q1.

(I) Normal market to CBLO is available for all members (including Associate Members) for settlement on T+0 and T+1 basis. (II) The obligation for CBLOs in the normal market is worked out on gross basis.

Both the statements are correct

Only statement (I) is correct

Only statement (II) is correct

Both the statements are wrong

Q2.

The repo market is governed by the:

SEBI

AMC

Banks

RBI

Q3.

Repo transaction are currently carried out only in________.

Delhi

Mumbai

Kolkata

Both (a) & (b)

Q4.

Repos can be undertaken only in:

Dated Government Securities

Dated treasury Bills

Both (a) & (b)

Dated Corporate bonds

Q5.

(I) All Repo contracts have to reported on the negotiated dealing system (NDS). (II) All Repos must be settled through the SGL/CSGL account maintained with the RBI with Clearing Corporation of India Ltd (CCIL)

Both the statements are correct

Only statement (I) is correct

Only statement (II) is correct

Both the statements are wrong

Q6.

(I) Repo helps bank to invest surplus cash. (II) Repo helps investor to achieve money market returns with sovereign risk.

Both the statements are correct

Only statement (I) is correct

Only statement (II) is correct

Both the statements are wrong

Q7.

The only instrument available to non-banks for managing their liquidity is the reverse repos.

True

False

Q8.

Who maintain Current account with RBI?

Internet gateway

CCIL

Indian Financial Network (INFINET)

CBLO

Q9.

(I) CBLO is an obligation by the borrower to return the money borrowed at a specified future date. (II) Auction market to CBLO is available only to NDS members for overnight borrowing and settlement on T+2 basis.

Both the statements are correct

Only statement (I) is correct

Only statement (II) is correct

Both the statements are wrong

Q10.

(I) Repos can be used to build up leveraged long positions in securities markets. (II) Repos helps the borrower to raise funds at better rates.

Both the statements are correct

Only statement (I) is correct

Only statement (II) is correct

Both the statements are wrong

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