1. Which of the following best describes “Correspondent Banking”?
A. A bank that only handles domestic retail transactions.
B. A relationship between two banks which have mutual accounts with each other or one having an account with the other.
C. A bank that only provides loans to other banks.
D. A regulatory body that oversees international trade.
Answer: B

2. Which of these is NOT listed as a function of a Correspondent Bank?
A. Clearing House Functions.
B. Investment Services.
C. Letter of Credit Advising.
D. Granting personal home loans to local residents.
Answer: D

3. What does “NOSTRO Account” literally mean?
A. Your account with us.
B. His account with them.
C. Our account with you.
D. Their account with us.
Answer: C

4. A “VOSTRO Account” is maintained in which currency?
A. Foreign Currency.
B. Indian Currency.
C. Only US Dollars.
D. Only Euros.
Answer: B

5. Which account is described as a “Reflection or Shadow” of a NOSTRO account used for reconciliation?
A. LORO Account.
B. Vostro Account.
C. Mirror Account.
D. RFC Account.
Answer: C

6. What does the acronym SWIFT stand for?
A. System for Wide Interbank Financial Transfer.
B. Society for Worldwide Interbank Financial Telecommunication.
C. Standard World Interbank Fee Transfer.
D. Society for Western Interbank Fund Telecommunication.
Answer: B

7. Which payment system is operative only in New York and mainly used for Foreign Exchange Interbank Settlements?
A. Fedwire.
B. CHAPS.
C. CHIPS.
D. TARGET.
Answer: C

8. Which US payment system has been operated by the Federal Reserve Bank since 1918?
A. CHIPS.
B. SWIFT.
C. Fedwire.
D. TARGET.
Answer: C

9. CHAPS is the British equivalent to CHIPS. In which city does it handle receipts and payments?
A. New York.
B. Frankfurt.
C. London.
D. Paris.
Answer: C

10. What is the minimum amount for a transaction to be processed via RTGS in India?
A. Rs 1,00,000.
B. Rs 2,00,001.
C. Rs 5,00,000.
D. There is no minimum limit.
Answer: B

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Course Content for CAIIB BFM [Bank Financial Management]

1. Video Lecture Course (Recorded Videos)
2. Case Study Videos
3. Numerical Videos
4. Notes [pdf]
5. Question Bank [2000] set [pdf]
6. 10 Mock Tests

Course Content for CAIIB Combo Pack

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3. Numerical Videos
4. Notes [pdf]
5. Question Bank [6000] set [pdf]
6. 40 Mock Tests

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