Test Papers / Previous Question Papers of IGNOU MS422 Bank Financial Management December 2005

MANAGEMENT PROGRAMME
Term-End Examination

December, 2005

MS422 : BANK FINANCIAL MANAGEMENT

Time: 3 hours
Maximum Marks: 100

1. (a) Discuss the objectives and scope of 'Financial Management' in a Bank.

(b) Differentiate between 'Common size Financial Statement Analysis' and 'Trend Analysis' of Balance Sheets of Bank.

2. Discuss the different sources from which Banks can borrow funds within India.

3.Discuss the importance of 'Cost of Funds' for a Bank. Explain the various rates that have an impact on the cost of funds of a Bank.

4. Discuss the salient features of :

(a) Commercial Papers, and
(b) Inter-Bank Participation Certificates

5. Describe the role played by Bank in the foreign exchange market. Briefly discuss the different types of 'Foreign Exchange Rate Systems'. Also explain the factors that affect the foreign exchange rates.

6. What is 'risk management' ? What are its objectives ? Briefly explain the different categories of risks that are relevant to Banks.

7. Explain the significance of measuring and managing 'credit risk' in Bank. Also discuss ihe basic approaches to credit risk measurement at individual loan intrinsic level.

8. Why are more and more Bank going for mergers these days ? Briefly explain the core principles for future restructuring of weak Banks as suggested by the Verma Group.