3/12/2018 Free Mock Test for JAIIB & CAIIB

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Important Circulars DAILY QUIZ - CAIIB - 11-03-2018 Bank Promotion exams

Master Circulars Only for Bankers
Bank DA Rates Given, RBI
Bank Holidays
X = 10, 20,30,40,50 IIBF
Total Inputs (N) = (10,20,30,40,50)
Life Ins Companies IRDA
Total Inputs (N) =5
Non-Life Ins Companies Find Standard Error SEBI
List of PSBs BCSBI
List of Private Banks a. 7.0017 CIBIL
List of Foreign Banks
b. 7.0711 Banking and Insurance
c. 7.7011
Financial Regulators Ministry of Finance
d. 7.7701
Public Grievances Excise & Customs
Banking Ombudsman Ans - b Income Tax Department
Planning Commission NSE
Solution:
Dept of Financial Services BSE

Standard Error Formula

SEx̄ = SD/ √(N)
where
SEx̄ = Standard Error of the Mean
SD = Standard Deviation of the Mean
N = Number of Observations of the Sample

To find Mean:
Mean (xm) = (x1+x2+x3...xn)/N
Mean (xm) = 150/5
Mean (xm) = 30

To find SD:
Use Table or it can be done by using this Standard Deviation Calculator
SD = √(1/(N-1)*((x1-xm)^2+(x2-xm)^2+..+(xn-xm)^2))
= √(1/(5-1)((10-30)^2+(20-30)^2+(30-30)^2+(40-30)^2+(50-30)^2))
= √(1/4((-20)^2+(-10)^2+(0)^2+(10)^2+(20)^2))
= √(1/4((400)+(100)+(0)+(100)+(400)))
= √(250)
= 15.811

To Find Standard Error:

Standard Error=SD/√(N) *T&C Apply
Standard Error=15.811388300841896/√(5)
Standard Error=15.8114/2.2361
Standard Error=7.0711
.............................................

Mr. Raj is to invest Rs. 100000 by end of each year for 5 years @ 5% roi. How much
amount he will receive?

a. 556253
b. 553562
c. 552563
d. 555263
Replay
Ans - c

Explanation :

Here,

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P = 1000000
R = 5% p.a.
T=5Y

FV = P / R * [(1+R)^T - 1]

FV, if invested at end of each year, is:

So,
FV = (100000÷0.05) * {{1+0.05}^5 – 1}
= 552563
.............................................

Current yield on an 8% Rs. 100 bond is 7.5%. The price of the bond is ......

a. 104.67
b. 105.67
c. 106.67
d. 107.67

Ans - c

Explanation :

Bond Price = (1/(1+R)^t)((coupon*((1+R)^t-1)/R)+Face Value)

(Here, t = 1

So, price

= (Coupon + Face Value) ÷ (1 + R)

= (8 + 100) ÷ 1.075 = 100.465)

But, since Coupon Interest = Current Yield × Current Market Price

So, Price = 8 ÷ 7.5% = 8000 ÷ 75 = 106.67
.............................................

Asha wants to receive a fixed amount for 15 years by investing Rs. 9 lacs @ 9% roi.
How much she will receive annually?

a. 116153
b. 111563
c. 115163
d. 111653

Ans - d

Explanation :

Here,

P = 9 lac
R = 9% p.a.
T = 15 yrs

EMI = P * R * [(1+R)^T/(1+R)^T-1)]

EMI = 900000 * 0.09 * 1.0915 ÷ (1.0915 – 1)

= 111653
.............................................

Population of a town is 100000. The rate of change is 4% p.a. what it will be after 5
years?

a. 112665
b. 116265
c. 126615
d. 121665

Ans - d

Explanation :

Here,

P = 100000
R = 4%
T = 5 yrs

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FV = P*(1+R)^T

So,
FV = 10000*(1+0.04)^5
= 121665
.............................................

What is the two year discounting factor at a discount rate of 10% per year ?

a. 0.826
b. 1.21
c. 1
d. 0.45

Ans – a

Solution :

The formula to solve the said sum is 1/(1+r)^t where r = discount factor and t = period

Here r = 10 and t = 2
Now do it as this way
= 1/(1+0.10)^2
= 1/ 1.21
= 0.826
.............................................

Find the present value of quarterly payment of Rs. 250 for 5 years @ 12% compounded
quarterly.

a. 3179
b. 3019
c. 3109
d. 3719

Ans - d

Explanation :

Here,

P = Rs. 250
T = 5 years = 5 × 4 = 20 quarters
R = 12% = 12% ÷ 4 = 0.03% quarterly

PV = P / R * [(1+R)^T - 1]/(1+R)^T

PV = 250 × (1.0320 – 1) ÷ (0.03 × 1.0320)

= 3719
.............................................

Mrs. Y purchased a bond with face value of Rs. 1000 and Coupon of 8% and maturity of
4 years. If YTM is increased by 1%, the change in price of bond would be......

a. 23.69
b. 32.69
c. 23.96
d. 32.96

Ans - d

Explanation :

If YTM is 9%, then bond’s price

= [80 × (1.09^4 – 1) ÷ 0.09 + 1000] ÷ 1.09^4
= 967.604

So, change in price of the bond

= 1000 - 967.64
= 32.96 decrease

(Since Coupon rate < YTM, so Bond’s Value < FV)

.............................................

Xyz purchased machinery of Rs. 100000. The rate of depreciation is 10%. At wdv
method, what is the average rate of depreciation for 4 years?

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a. 12.76
b. 13.76
c. 14.76
d. 15.76

Ans - B

Explanation :

Here,

P = 100000
R = 10%
T = 5 yrs

FV = P*(1-R)^T

So,
FV = 100000*(1-0.1)^4
= 65610

So, amount of depreciation

= 100000 – 65610
= 34390

Average rate of depreciation

= (34390 ÷100000) * (4÷10) %
= 13.76%
.............................................

A jar contains 3 red marbels, 7 green marbels and 10 white marbles. If a marble is
drawn at random, What is the probability that marble drawn is white?

a. 2/5
b. 1/2
c. 3/8
d. 10/13

Ans – 2

Solution :

Here Red = 3
Green = 7
White = 10
Hence total sample space is (3+7+10)= 20
Out of 20 one ball is drawn n(S) = {c(20,a.} = 20

To find the probability of occurrence of one White marble out of 10 white ball
n(R)={c(10,a.} = 10

Hence P(R) = n(R)/n(S)

= 10/20 = 1/2
........................................................

Priya made an investment of Rs. 18000 and he expects a return of Rs. 3000 p.a. For 12
years. What is the present value and net present value of the cash flow @ 10% discount
rate?

a. 2114
b. 2414
c. 2441
d. 2141

Ans - c

Explanation :

PV = 20441
NPV = PV – 18000
= Rs. 2441
.............................................

Ram purchased a bond with face value of Rs. 1000 and Coupon of 8% and maturity of 4
years. If YTM is reduced by 2%, the change in price of bond would be......

a. 63.90
b. 69.30
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c. 36.90
d. 39.60

Ans - b

Explanation :

If YTM = 6%, bond’s price

= [80 × (1.06^4 – 1) ÷ 0.06 + 1000] ÷ 1.06^4
= 1069.30,

So, change in price of the bond

= 1069.30 - 1000
= Rs. 69.30
.............................................

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