Treasury Division

Question & Answer

1. Q: ALCO stands for

a) Asset liability committee
b) Asset liability co- operation
c) Asset liquidation company
d) None of the above
Ans: a)
2. Q: Call Money transaction between
a) Customer to customer
b) Bank/NBFIs to customer
c) Bank/NBFI to Bank/NBFI
d) Both (a) & (b)
Ans: c)
3. Q: Call Money tenor usually for
a) 1 days
b) 2 days
c) 7 days
d) All of the above
Ans: a)
4. CRR stands for
a) Cash Reserve Requirement
b) Cash reserve Ratio
c) Cash remittance Ratio
d) None of the above
Ans: a)
5. SLR stands for
a) Statutory Liquidity Reserve
b) Standard Liquidity Ratio
c) Statutory Liquidity Ratio
d) None of the above
Ans: c)
6. CRR to be maintained by UCBL
a) 6.5 %
b) 6.0 %
c) 5.5 %
d) 5.0 %
Ans: a)
7. SLR to be maintained by UCBL
 a) 12.50 %
b) 13.00 %
c) 13.50 %
d) 19.50 %
Ans: b)
8. HTM stands for
a) Held Till Maturity
b) Held To Maturity
c) Held Through Maturity
d) Held Towards Maturity
Ans: b)
9. HFT stands for
a) Held For Trading
b) Held For Transfer
c) Held For Transaction
d) Both a) & c)
Ans: a)

10. REPO stands for

a) Repurchase Agreement
b) Repurchase Arrangement
c) Repurchase Assignment
d) Repurchase Operation
Ans: a)
11. Reverse Repo stands for
a) Repurchase Agreement
b) Reverse Repurchase Agreement
c) Reverse Repurchase Operation
d) Both a) & b)
Ans: a)
12. Convertibility of Currency means
a) The ease with which a country's currency can be converted into gold
b) The ease with which a country's currency can be converted into another
currency
c) Only b)
d) Both a) & b)
Ans: d)

BOP stands for

a) Back Office Operation
b) Balance of Payment
c) Business Operation
 d) Both b) & c)
Ans: b)
13. PD Bank means
a) Preliminary Deposit Bank
b) Primary Dealer Bank
c) Personal Deposit Bank
d) Professional Dealer Bank
Ans: b)
14. Exchange Rate means
a) the value of one currency for the purpose of conversion to
another
b) the rate for exchanging commodity
c) Only a)
d) Both a) & b)
Ans: c)
15. For Export Bill purchase we use
a) OD Sight
b) TT Clean
c) TT Doc
d) OD Transfer
Ans: a)
16. We use OD Transfer rate for
a) Over Draft
b) Demand Draft
c) Advance against export bill collection
d) Both b) & c)

Ans: b)

17. For Import Bill settlement we use

a) Bills for Collection Rate
b) BC Selling Rate
c) TT & OD
d) Both a) & b)
Ans: d)
18. LIBOR stands for
a) London Interbank Overnight Rate
b) London Interbank Offer Rate
c) London Interbank Outright Rate
d) Both a) & b)
Ans: b)
19. Forward Transaction
a) Settlement of a deal that will take place on day after tomorrow
b) Settlement of a deal that will take place on Tomorrow
c) Settlement of a deal that will take place on 3rd day and/or beyond
d) Both a) & c)
Ans: c)
20. Option means
a) It is a financial contract
b) It is the right to exercise the contract not obligation for the buyer of
the contract
c) The buyer pays a premium to the seller for this right
d) All of the above
Ans: d)
21. Hedging means
a) Profit Maximization
b) Risk Minimization
c) Making investment to offset price fluctuation
d) Both b) & C)
Ans: d)

22. Speculation means

a) Special Calculation of Foreign Exchange Rate
b) Taking view on future movement in price of Stocks only
c) Making investment in the hope of gain but with the risk of loss
d) Both b) & c)
Ans: c)
23. NOSTRO Account is
a) A bank’s account with a correspondent bank/branch abroad in the
home currency of that country.
b) A bank’s account with a correspondent bank/branch abroad in foreign
currency.
c) A bank’s account with a correspondent bank/branch abroad in account
holder currency
d) A local currency account of a foreign bank/branch
Ans: a)
24. VOSTRO account is
a) A Bank’s account with correspondent bank/branch abroad in foreign
currency
b) A local currency account of a foreign bank/branch
c) A bank’s account with a correspondent bank/branch abroad in the
home currency of that country.
 d) A bank’s account with a correspondent bank/branch abroad in foreign
currency.
Ans: b)
25. What is REER
a) Rare effective equivalent rate
b) Return on effective exchange rate
c) Real effective exchange rate
d) None of the above
Ans: c)
26. What is NEER
a) Nominal effective Exchange rate
b) Normal efficient exchange rate
c) Neutral effective earning rate
d) Nominal effective earning rate
Ans: a)
27. Which is the international monetary system
a) Classical gold standard
b) Bretton wood system
c) Flexible exchange rate
d) All the above
Ans: d)
28. SDR Means
a) Special Drawing rights
b) Savings Drawing rights
c) Secondary Drawings right
d) Security deposit rate
Ans: a)
29. Exchange rate quotation are
a) Specific
b) Direct
c) Indirect
d) b&c
Ans: d)
30. Direct quotation if the
a) Exchange rate express in variable unit of foreign currency against per
fixed unit of domestic currency.
b) Exchange rate express in variable unit of domestic currency for a fixed
unit of foreign currency.
c) Exchange rate express in variable unit of foreign currency against
variable unit of domestic currency.
d) Exchange rate express in variable unit of domestic currency against
variable unit of domestic currency.
Ans: b)
31. Indirect Quotation if the
a) Exchange rate express in variable unit of foreign currency against per
fixed unit of domestic currency.
b) Exchange rate express in variable unit of domestic currency for a fixed
unit of foreign currency.
c) Exchange rate express in variable unit of foreign currency against
variable unit of domestic currency.
d) Exchange rate express in variable unit of domestic currency against
variable unit of domestic currency.
Ans: a)

32. In BoP Current account includes

a) Export & import
b) Export , Import & Unilateral transfer
c) Export , Import & Service
d) None of the above
Ans: b)
33. Capital account in BoP shows
a) Merchandise Import & Foreign Direct investment
b) Merchandise export & Direct investment
c) Change in the nations assets abroad and the foreign assets in the
nations except official reserve
d) .a & b
Ans: c)
34. Floating exchange rate means
a) Bangladesh Bank will fixed the rate
b) Forex Reserve & Treasury management division will determine the
Exchange rate
c) Market demand supply will determine the exchange rate
d) Bank’s Treasury will determine the exchange rate
Ans: c)
35. Floating Exchange regime started in our country on
a) December 1, 2004
b) March 1,2003
c) May 31,2003
d) June 01,2003
Ans: c)