Tribhuvan University

BBSBachelor

Foundation of Financial Systems

Subject Code: MGT 226Year: 2081

Full Marks: 100Time: 3 Hours

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Group A

Brief Answer Questions

Attempt all questions.

1

Write the meaning of financial system.

[2 marks]

2

What do you mean by capital market?

[2 marks]

3

What are the components of bank equity capital?

[2 marks]

4

State the concept of non-depository institutions.

[2 marks]

5

How do you compute NEPSE index?

[2 marks]

6

Write the meaning of initial public offerings.

[2 marks]

7

XYZ mutual fund has 500,000 shares outstanding, and its assets consist of common stock with an aggregate market value of Rs 6,800,000 and liabilities of Rs 300,000 as of Asar 31, 2081. What is the NAV per share of the fund?

[2 marks]

8

A bank has profit margin ratio of 12 percent and asset utilization ratio of 0.6 times. What is its return on assets?

[2 marks]

9

A T-bill with face value Rs 10,000 and 180 days to maturity is selling at Rs 9,750. Calculate annual yield on the T-bill.

[2 marks]

10

Bank ABC has a gap ratio of 18 percent, while that of Bank XYZ is 24 percent. Which bank is more interest rate sensitive?

[2 marks]

Completed Group A