Tribhuvan University

BBSBachelor

Foundation of Financial Systems

Subject Code: MGT 226Year: 2080

Full Marks: 100Time: 3 Hours

Back to Papers

Group A

Brief Answer Questions

Attempt all questions.

1

What is financial intermediation? Give some example of financial intermediaries in Nepal.

[2 marks]

2

What do you mean by capital market?

[2 marks]

3

Write the meaning of ancillary financial services.

[2 marks]

4

State the major roles of risk management industry.

[2 marks]

5

Write the meaning of credit rating agencies.

[2 marks]

6

What do you mean by foreign direct investment?

[2 marks]

7

What is the profit margin of a bank given that its asset utilization ratio is 1.45 and return on asset is 14.5%?

[2 marks]

8

A T-bill with face value Rs. 10,000 and 180 days to maturity is selling at Rs. 9,700, what will be annual yield on T-bill?

[2 marks]

9

Gap ratio of Bank A and Bank B are 25 and 30 percent respectively. Which bank is more interest rate sensitive?

[2 marks]

10

The Mega Fund, a closed-end fund, has a portfolio of assets worth Rs. 220 million. It has liabilities of Rs. 10 million. It also has 20 million shares outstanding. What is the fund's NAV? If the fund trades at 2 percent discount from its NAV, what is the market price of the fund's shares?

[2 marks]

Completed Group A