96th JAIBB Question Monetary and Financial System (MAFS) - Banking Professional Examination, 2023
২৫৩
ক্যামেলিয়া-১
THE INSTITUTE OF BANKERS, BANGLADESH (IBB)
96th Banking Professional Examination, 2023
JAIBB
Monetary and Financial System (MAFS)
Subject Code: 101
Time-3 hours
Full marks-100
Pass marks-45
[N.B. The figures in the right margin indicate full marks. Answer any five questions.]
Marks
1. (a) How money supply is measured? Compare and contrast M1 and M2 money supply.
(b) From the following information, measure the monetary aggregates of M1 and M2:
| Items | Value as of December 2022 (billion taka) |
| Currency in circulation | 2923.60 |
| Currency in tills of DMBS | 241.80 |
| Demand deposits | 1837.40 |
| Other checkable deposits | 6.20 |
| Time deposits | 13054.30 |
| Money market mutual fund | 10.50 |
2. (a) Do you think the Bangladesh Bank is considered as supreme monetary and banking authority? Discuss with its mandates under Bangladesh Bank Order, 1972.
(b) What is financial stability? How central bank acts as Lender Of Last Resort (LOLR) to maintain financial stability?
3. (a) Distinguish between 'debit card' and 'credit card'. Describe pros and cons of using a cheque as a payment method.
(b) What is QR code? Recently Bangladesh Bank introduced an interoperable Bangla QR to popularize payments for goods and services using various payment instruments, including bank accounts, debit, credit or prepaid cards, MFS and e-wallet accounts. Do you think that we are heading towards a cashless society in the near future? Give your opinion.
(c) If you use a 'credit card' to purchase goods or services on the internet, does this affect the M1 or M2 money supply or both or neither? Explain.
4.(a) What are the constituents of monetary system? Briefly discuss 2+8=10 the commercial banks role in the process of the money supply. [Hint: T-account or formula and reserve requirement.]
(b) What constitutes the monetary base? How does the central bank control the monetary base? 4+6=10
[Please turn over]
5. (a) What is a financial system? Which components constitute a financial system?
(b) Explain financial development in brief. How you can measure the financial development of a country? Illustrate with 3 different methods.
6. (a) Using a supply and demand framework for bonds, show why interest rates are procyclical (rising when the economy is expanding and falling during recessions). Show the effect on interest rates when the risk of loss of bonds rise under the same framework. 5+5=10
(b) What is the discount yield for a five year bond that was purchased for Tk. 60 and has a face value of Tk. 100.
(c) The average industry PE ratio for hotels similar to Shangri-La hotel Chain is 37. What is the current price of Shangri-La's earnings per share (EPS) are projected to be Tk. 1-16?
7.(a) Explain how Banking Financial Institutions (BFIs) and Non-bank Financial Institutions (NBFIs) serve as financial intermediaries.
(b) Outline the functions and growth of NBFIS in Bangladesh.
8.(a) At the current state of globalization, every country is internationally connected. What do you know about global integration of the financial market?
(b) What is the role of the foreign exchange market in the global financial market?
(c) Define 'balance on current acsoat' and 'basic balance' in international balance of payments.
(d) Which of the following transactions would increase a current deficit? (i) An increase in foreign travels
(ii) More long term borrowing by government
(iii) A decrease in export
(iv) A decrease in import
(v) An increase in remittance abroad.
9. (a) Briefly explain the basic fundamentals of Shari'ah Law? List major principles that must be followed while developing Shari'ah complaint products.
(b) List Shari'ah complaint Islamic banking products outlining Shari'ah principles.
(c) What do you know about Shari'ah governance in an Islamic financial institution? Outline the key players and their role in a 'Shari'ah governance framework'.
10. Please write short notes on any five of following topics:
(a) Monetary Policy Statement (MPS)
(b) Trust-cum-settlement Account
(c) Sustainable Finance
(d) Manage Float Exchange Rate System (e) OTC market
(f) MRA
(g) Mobile Financial Service (MFS)
(h) E-money.
Category: JAIBB Question, Monetary and Financial System (MAFS)
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