Objective Questions with answer for exam

2. IBBL contact centre number: 16259
Total Zone- 17
Total Corporate Branch-08,
Total Deposit Scheme of IBBL-24
Total Investment Scheme Scheme of IBBL-24
Residual Risk- error in Documentation

3. Bangladesh bank complain number: 16236

5. Islamic Development Bank was established in ----1975.

6. The cheque placed after six months of issue date to the drawee for collection is called----Stale  Cheque.

7. Agreed upon profit is a must for ----Bai Murabaha

8. Bangladesh signed the charter charter of islamic Development bank-----1974.

9. When a payee or endorser does not specify an endorsee------Blank Endorsement

10.Islmaic economics and finance is derived from----Al Muamalat

11. Ijma means----Agreement of Khulafaya Rashada

 12.As per NI Act-1881, The relationship between banker and customer is ----Bailor- Bailee, principal-ageent, Mortgazor-mortgazee.

13. Wakalah (power of attorney): This occurs when a person appoints a representative to undertake transactions on his/her behalf, similar to a power of attorney./A contract of buying and selling of services in exchange of commission is called ---Wakala

14. Juala is like ---tender  ( juala-Agreement 

Useful information: Juala means that a person may promise that if a particular job is done for him he will give a specified amount in lieu of it, for example, he may say that if a person recovers his lost property he will give him $ 10. One who makes such a declaration is called Ja'il and the person who carries out the particular job is called Amil.) 

14. Kifalah is ----Guarantee, third bank, Legally, a third party becomes surety for the payment of a debt of another

15. Bai Al  Inah means------Buy back,

16.    After financing to a limited company, 1st charge with RJSC must be created ---21 days

18. Post shipment finance is called---- MDB ( Musharaka Documentary Bills- Inland)

19. . IDR/CDR: Corona for islamic 92, conventional 87 effective 15 april 15, 2020
f( Earlier  it was for Islamic 89, Board can enhance 1%

For conventional 81.5, Board can enhance 3.5 % as per DOS circular no-5 dated 17 sep 2019, B Bank

)

20. RDS was introduced in -----1995. 

30. Micro Enterprise Investment Scheme (MEIS) in -----2005 for the graduated clients.  The ceiling of MEIS investment is ----BDT 50,000/-($725) to BDT 300,000/-    

31. Bill of Exchange is issued by ----Exporter

32. A bank account is opened under ----Contract Act

33. IRG now ICRR as per “  GUIDELINES ON INTERNAL CREDIT RISK RATING SYSTEM FOR BANKS”

The ICRRS shall be applicable for all exposures (irrespective of amount) except consumer loans, small enterprises having total loans exposures less than BDT 50 (fifty) lac and small enterprises in manufacturing having total loans exposures less than BDT 1 (one) crore, short-term agri loans, micro-credit and lending to bank, NBFI and Insurance.

Score:  Internal Credit Risk Rating Scores

4-notched rating system covering the Quantitative and Qualitative parameters.	Scores Aggregate
Excellent	≥80%
Good	≥70% to <80%
Marginal	≥60% to <70%
Unacceptable	<60%

Quantitative indicators in ICRR fall into six broad categories: leverage, liquidity, profitability, coverage, operational efficiency, and earning quality. For detail see: PDF table page :10-11

1. Leverage (10%)

2. Liquidity (10%)

3. Profitability (10%)

4. Coverage (15%)

5. Operational Efficiency (10%)

6. Earning Quality (5%)

Qualitative indicators cover six broad aspects of the firms/institutions to be rated, namely business/industry risk, credit quality enhancement, performance behavior, management risk, relationship risk, and compliance risk. Noteworthy that aggregate weights against the qualitative indicators stands at 40 percent.

                    1.  Performance Behavior 10 %

2                  2.  Business and Industry Risk 7%

3. Management Risk  7%

        4. Security Risk 11%

5. Relationship Risk 3 %

6. Compliance Risk 2%

36. The client having worst performance would have risk weight-----150%

For detail in Basel III, PLs visit the link  Basel III

per BASEL III for more of Capital Adequacy  B Bank Guide  

    Constituents of Capital and Minimum Requirement

 Components of Capital For the purpose of calculating capital under capital adequacy framework, the capital of banks shall be classified into two tiers. The total regulatory capital will consist of sum of the following categories:

1) Tier 1 Capital (going-concern capital)   From regulatory capital perspective, going-concern capital is the capital which can absorb losses without triggering bankruptcy of the bank.

According to loss absorbance capacity/quality, the eligible capital is divided into two tiers:

1. Tier 1 Capital: It is better quality capital. Tier 1 capital is further divided into two parts-
1. Common Equity Tier 1 Capital (CET-1 Capital): CET-1 capital generally includes the following items:
1. Paid up capital
2. General reserve
3. Statutory reserves
4. Retained earnings etc.
5. Dividend Equalization Account
6. Share premium
2. Additional Tier 1 Captial: Perpetual Bond 300 crore

 Tier 2 Capital: It is lower quality capital than Tier 1 capital. Components:

i. subordinated (Bond 2300 crore)

ii. general provision 

There is no tier III capital in Basel III

CRR at 4% percent on bi-weekly average basis with a provision of a minimum 3.5 percent on daily basis effective corona .

The central bank made funds cheaper last week for banks by cutting its repo rate -- the rate at which the central the bank lends money to commercial banks -- 4.75 percent  (1 to 28 day's loan from b bank ) reverse repo 4% mpd cirular corona

40.    SLR is determined based on ----total time and demand liabilities 13% for conventional and 5.5 for Islamic

42.      4% comprises of instruments like ----CDBL,BGIIB, Karmashanshan Bak, Bangladesh Shipping Corporation

45.     Risk Weight parameter—7, eg  0,20,50,75,100,125,150

46.    Risk-Weighted Asset: Global banking supervisors based in Basel Switzerland use the concept of risk-weighted assets to determine a bank’s minimum capital needs. Risk-weighted assets are computed by adjusting each asset class for risk in order to determine a bank's real-world exposure to potential losses. Regulators then use the risk-weighted total to calculate how much loss-absorbing capital a bank needs to sustain it through difficult markets.

  

47. Bangladesh Bank circulated guidelines for Islamic banks in ---2009.

48. When a credit authorizes a bank to provide pre-shipment finance is called ----Red clause L/c

49. As per Arthalin Adalat-2003, execution suit to be filed within ---180 days.

50. The bank company Act enacted in--------- 1991. (amendment 2013)

51. Head Quarter of IFSB is in -----Malaysia.

52.  Bai As Sarf was earlier called ------FDB.

53. Bai Salam may be allowed for -------------pre-shipment.

54.  In Musharaka, the loss is beard-----as per equity.  profit -----as per agreement 

55. In Mudaraba profit is taken ----as per the agreement in percentage 

56. Buy low, sell high--====--pence/direct quote used in Bangladesh.

57. Who was the founder of 1st islamic bank in 1963---Dr. Ahmed al Naggar.

58. How many days are there in Islamic calendar-------354 days.

59. Central Bank of USA is -----Federal Reserve System.

60. DCFCL stands for ----Departmental Control Functions Check List

61. When a cheque remains in circulation for more than six months, it is called ---------stale cheque

62. There are now ---15  wings in IBBL.    

65. List of Eligible Collateral (as per BRPD circular no 14/2012 on Loan Classification and Provisioning):

 100% of deposit under lien against the loan.

 100% of the value of government bond/savings certificate under lien.

100% of the value of guarantee given by the Government or Bangladesh Bank

 100% of the market value of gold or gold ornaments pledged with the bank.

50% of the market value of easily marketable commodities kept under control of the bank.

 Maximum 50% of the market value of land and building mortgaged with the bank.

 50% of the average market value for the last 06 months or 50% of the face value, whichever is less, of the shares traded in stock exchange. 

Open  Position Limit—  mill USD 121.58 million USD  20% on regulatory capital  

AD BRANCHES 69, total branch 374 Last branch

66.  Students Savings Accounts Weightage 0.62

67.   Farmers Savings account--.0.75 Daily product

68.   External Credit Assessment Institution (ECAI). Total 8-, Foreign Moody’s, S& N, Fitch

Alpha Credit Rating Limited awarded AAA June 03,2021 , short term ST 1

70.: AAOIFI, an Islamic international autonomous non-for-profit corporate body was registered on/in-

------        27 March 1991 in the State of Bahrain

71.   Islamic financial Services Board (IFSB) started operations in 2003 based in        Kualalampur, Malaysia

72.  IICRA (International Islamic Center for Reconciliation and Arbitration, UAE) mainly implies to focus on – Contemporary Sharia view point to settle the financial disputes

73. PRSP is elaborated as – Poverty Reduction Strategy Paper

74. GDP is a sum of----- Consumption, investment, Govt. spending and net exports

75. ‘Present Economic Meltdown’ is mainly derived of

----     Uncontrolled debt financing and risk taking with excessive leverage and speculation.

76. Which of the following is true to Islamic Finance?-- Debt creation is integrated with wealth creation

77.  Economics is mainly perceived to – How individual and societies chose to use the scarce resources

78.  What does OECD stand for--- Organization for Economic Cooperation and Development  

79. Windows is computer software innovated by –    Microsoft Corporation

80. Islamic Training and Research Institute (IRTI) is research wing of-    IDB

81.  Which of the following is not included in World Bank Group?   -   IMF

82.  SWIFT Stands for-    Society for Worldwide Inter-bank Financial Telecommunication

83. The Bangladesh Bank Order was executed in-      1972

84. Money mainly serves as ---- Medium of Exchange

85. Treasury Bills are sold by------ Bangladesh Bank,

Brief guidelines for investment in Bangladesh Government Treasury Bonds- maturities

Total 5 – maturities: At present 2, 5, 10, 15 and 20 years maturity Bangladesh Government Treasury Bonds (BGTBs) are available for investment.

Minimum amount in each trade :

BDT 1.00 lac or any amount of multiples of BDT 1 lac in face value (BDT 1 lac is equal to

BDT 100,000.00).

Treasury Bills:

Total  6 Maturities=  07-day BB Bill,  14-day BB Bill,  30-day BB Bill,    91-day,   182-day    364-day T-Bills

87. What does stand for ECAI?------- External Credit Assessment Institution

88.  According to BASEL-III, risk weight claims for ‘AAA’ rated customer is said to be---- 20%

89.  According to ‘Arhta Rin Adalat Ain 2003’, section-12 empowers bank for----- Selling  of mortgaged collaterals to realize bank’s dues without filing suit

90.  Where is the Head Quarter of IMF located?------ Washington D.C.

93. Existing Bank rate is –----- 4%

94. Skills that embodied in a person are called--- Human capital

97. VaR is-     Value at Risk( Related with changes of Profit and Asset with Market Scenario)

98. Bai-Istisna relates to----- Industry and manufacture Finance

99. ‘BIBA’ is –-----  Bangladesh Islami Bankers Association

113.  Heads for distribution of Zakat as prescribed in Quran are in number of----8 

114. Which verse has made Islam a complete code of life?--- Srurah Mayidah: 03

117. Bai As Sarf is practised in ----Post Shipment finance.

118. the method of creating Charges on the movable assets is called ---pledge ( Murabaha Commercials)

120. Closing charges of savings account is ---200 tk.

121. What is invoice?--list of goods, quality and price.

122. Suppliers credit report is mandatory if the amount of Lc exceeds---USD 10,000 PI and above, Indenter  for USD   20,000.  Any reputed  credit Rating Agency may give credit report.

125. Charge documents are obtained from the client to ------secure investment.

126.  Charge documents are ---Agreement, demand promissory note, DP note delivery letter, sanction advice, disbursement      letter, letter of continuity, letter of installment, goods security, trust receipt, Memorandum of further charges, letter of hypothecation, personal guarantee, etc. 

127. List  of disclaimer is obtained to ---hire go-downs .

128. The endorsement of cheque may be called "full Endorsement' when the endorsee---signs with directions to pay to specific person. 

129. direct tax---tax from salary, corporate tax, 

130. indirect tax---VAT.

131. Basel III from 2013 parallel, then 2016, fully implement in 2019

132. The mode of investment is most akin to Makasidul Shariah is ---Musharaka.

134. Bangladesh signed the chartered of IDB in ---1974.

135. the word banker is defined in NI act of 1881 in ---Section 3.

136. Where all partners’ capital is equal is called   ----Shirkatul Mufawada.

137. When unequal of capital is called ---Shirkatul Inan

138.when business of goodwill is ---Shirkatul Wajah

140. How many islamic banks in bangladesh---10 full fledged,  latest NRB Global and Standard Bank 14 Windows

141.  Section 12--of Artharin Adalat 2003 empowers banks to sell mortgaged property without filing suits.

142. the contract act was introduced in ----1872.

144. IBCF stands  for ---islamic Banks consultative forum.

145. Call money refers to ---Short term inter bank lending and borrowing 

146. LCA form now ---4.

147. Zakat sectors is---8.

148. Rate of provision on off balance Sheet item----1%.

149. Risk weight on unrated corporate investment is ----125%.

150. Stress testing will be done of------Quarterly basis.

151. Capital Adequacy ratio is calculated on ------Quarterly basis

152. ICAAP----Internal capital adequacy assessment process

153.  DRS stands for ----Disaster Recovery site

154. Jakat rate for Gregorian Year is ----2.58%

155. Mudaraba perpetual bond is considered  Additional Tier I as per BASEL III

157. Bank rate means--- Central bank's rate for commercial banks

158. SDR means ---Special Drawings Right

160. Liquidity is defined as ---the ability to convert asset into cash.

161. Court of America has declared negotiable instrument to ----Travelers' Cheque  

165.  Central Shariah Board for Islamic Bank of Bangladesh (CSbibb) was established in ---2001.

166. Islami Bank Securities (IBSL) was established in March 22, 2010 as a public limited company under Companies Act 1994 for carrying out business of Stock broker and dealer in the capital market. It also provides margin loan.

167.  Islami Bank Capital Management Limited: In April, 2010, it begins under the companies Act1994. It carry out merchant Banking in all aspects including underwriting and management of issue, public offer of shares, stocks, debentures, bond, sale of securities and transfer thereof, fund management of clients, managing portfolio investment of any person or company by making profitable investment in various avenues.

168.  Offshore banking Unit starts in ----January 4, 2012.

169.  Corporate governance focuses on ---ensuring proper delegation, transparency and accountability in the organization as a whole.

170. The responsibility of the chairman is defined ---------in BRPD circular No-06 dated February 04, 2010.

171. IDCL stands for------ investment Documentation checklist.

172.  IBTRA publishes the journal titled---“Journal for Islamic Economics, Banking and Finance”.

173.  Website Development cost, software purchase is ---Intangible Asset amortized in 4 years.

174.  In case of liquidation, MPB will be paid ---just before the shareholders.

176.  “guidelines for Islamic Banking” issued by BRPD circular no 15 on ---- 09.11.2009.

177.  Related parties mean--- the Bank’s directors, key management personnel, associates, companies under common directorship etc. All transactions with related parties are conducted at normal commercial rate on the same terms and conditions as third party transition and without any favor.

179.  Risk in IBBL is defined as----the possibility of losses, financial or otherwise.

180.  Investment or credit risk is defined as ----potential loss arising from the failure of counterparty to perform as per contractual agreement with the bank.

181.  Foreign exchange risk is defined as ----the potential change in earnings due to change in market price.

182.  The risk in FX is minimized by---proper market analyses, real time pricing of FX, fixation of dealing limit--- daylight, overnight stop loss and management action trigger and strong vigilance of mid and bank office

Legacy Accounts: Accounts opened before 30 April, 2002. KYC will have to be completed in due course.

183. Post balance sheet events: dividend approval of AGM after board recommendations.

187.  A customer requested to encash USD 10,000 cash, what form will he need to fill? : Form FMJ

Deposit mix

190.  MSA  Savings in ----34 %

191.   MSS pension in ----15%

192.   MTDR in Term---31%

Cost free deposit 14 %

 'Value at Risk - VaR' change in profit rate

VaR is commonly used by banks, security firms and companies that are involved in trading energy and other commodities.

VaR is able to measure risk while it happen. In banks it is used to calculate probable loss in profit for change in deposit and investment rate.

194.   CSR refers to the concept that an enterprise is accountable for its impact on all relevant stakeholders, as, Investors, employees, customers, suppliers, communities, environment etc.

195.  To obtain loan/suppliers credit from abroad by the local entrepreneur for more than 360 days, prior permission is required from which: Board of investment

196. Interest is any predetermined excess which is paid or received with the passage of time on principal of loan as a condition of loan and for which no counter value is paid or received and which is not related with the usage and result of loan.

  

201. cost free deposit is AWCA, Bills payable, sundry deposit -

203. Foreign share holding and local shareholding : 4.3.71%  and 56.29 respectively

204. IBBL received certificate of commencement- 27^th March, 1983

205. Shareholders-50,850

206. MSND will be treated as dormant if no transaction is held –within 12 months

207. Quarnic language of Extravagance is –tabzir

208. As per Artha Rin Adalat , execution suit will be filed within –360 days

209. Cluster investments are termed when investments are given—people of same area for same nature of business.

210. A high value cheque is –tk 5 lac and above

213. When a merchant bank purchase new issue of securities in the hope of making profit, it is called ---underwriter

214. The contribution of service sector in GDP is –53.62, industry-30.42, agriculture—15.96

215. Which one is the public money—coin of 5 tk

216. which is the primary security—commodity of business against which investment is given

217.  What is GSP? --The Generalized System of Preferences (known as GSP for short) is a scheme whereby a wide range of industrial and agricultural products originating in certain developing countries are given preferential access to the markets of the European Union. Preferential treatment is given in the form of reduced or zero rates of customs duties. The GSP scheme is specifically designed to benefit certain developing countries and integrate them into the world economy. It is issued by EBP ( Export promotion bureau)

219. A promissory note is –an unconditional promise in writing

220. Criterion of public limited company is—should have at least 7 directors

221. for deflation, central bank rescue through –Increasing bank rate and selling treasury bills in open market

222.Paid up capital of IBBL as on December 2017 is –16,099.90 million

223. How many risk factor are used for stress testing and what are they?

--5,

  Profit/ Interest rate;

 Forced sale value of collateral;

 Non- performing Investments (NPIs);

 Equity/Share prices; and

 Foreign Exchange rate

224. Liquidity means--The degree to which an asset or security can be quickly bought or sold in the market without affecting the asset's price, eg, , cash, and cash equivalents

225. What is death cross?  --A death cross is a technical indicator that occurs when a stock's short-term moving average falls below its long-term moving average.

227. 1^st three branch of IBBL- Local office, Agrabad, sylhet

228. Monogram of IBBL is designed by—Sabih ul Alam

229. Weightage of 3 years term deposits—1.10

230. Holder, holder in due course and payment in due course---is stated in –section 8, 9, and 10 of NI act-1881.

231. Long term chairman of IBBL- Commodore Ataur Rahman 1987-2004

233. Which verse of the Quran has made Islam a complete code of life—Surah Mayeda: 03

The Price Elasticity of Demand (commonly known as just price elasticity) measures the rate of response of quantity demanded due to a price change. The formula for the Price Elasticity of Demand (PEoD) is:

PEoD = (% Change in Quantity Demanded)/(% Change in Price)

239. What is the component of M1? – Money at hand, Chequeable deposits, Deposits of Financial Institutions with Bangladesh, deposits of NBFI in Bangladesh bank

242. M2 or broad money – M1+ Time Deposits with DMBs ( it is bank and NBFI)

243. What is ‘paradox of thrift’—

Increased savings by individuals increases their chances of becoming unemployed

244. Consumer spending is –two thirds of GDP

245. Crowding out means—there are too many players in the financial markets.

246. The second islami bank is _ AL Baraka bank

249. Suppliers credit report is mandatory for an amount--- USD 10,000 for PI and USD 20,000 for indents

250. Positive pay instruction is required for –one lac for company and 5 lac for individual person

252. pari passu charge means- with equal speed or progress; equably: often used to refer to the right of creditors to receive assets from the same source without one taking precedence.