Subject code:
B A F Shaheen College Dhaka Practice Half-Yearly Examination-2020
Class-IX (English Version)
Subject: Finance and Banking (Creative)
Time: 2 Hours 30 Minutes Full Marks: 70 [N.B.: The figures in the right margin indicate the marks on the questions. Answer any seven in
total taking at least three questions from each part]
Part-A: Finance
1. Mr. Fuad is a hardware businessman. He was in a profitable position by collecting fund from various financial institutions and with his own fund for mobilizing his business.
But after some years, it has been seen that his business has faced liquidity crisis for depositing a large amount of cash.
a. What is the main objective of public finance. 1
b. What is leasing? Explain it. 2
c. How can Mr. Fuad get back in a profitable position by applying fund management? Describe. 3
d. What amount of the cash is to spent for daily expenses and what amount to be spent for investment by Mr. Fuad depend on which principle according to your viewpoint? Discuss. 4
2. A little literate Anjuman has been encouraged in tailoring business by learning tailoring. She takes financial aid in order to purchase sewing machine from government financial institution which is repayable by 7 years. For other aids she meets local non-government organization. a. What is the range of short term financing? 1
b. What is undistributed profit? Explain. 2
c. From which type of source of finance does Anjuman take financial aid? Describe. 3
d. Evaluate the role of non-government organization in making self-reliant entrepreneur like Anjuman. 4
3. Imdadul Islam wants to deposit certain amount of money to get Tk. 900000 after 7 years. Eastern Bank Ltd. offers him to give interest at 13% per year and Dhaka BANK Ltd. offers him to give him 7% monthly compounding rate. In this situation you have to evaluate both offers. a. What is discounting process? 1
b. What is the difference between present value and future value? 2
c. What amount should Imdadul deposit in the first case? 3
d. Which proposal should be accepted and why? 4 4. With the expectation to get of Tk. 400000 after 10 years. Mr. Tauhid wants to deposit
some money in a bank. Meghna Bank proposed to give at 10% compounding rate.
Whereas Padma Bank proposed to give at 8% quarterly.
1 5 2
a. How long is the period of mid term financing? 1
b. Explain the main reason of time value of money? 2
c. How much money will have to deposit in Padma Bank? 3
d. In which bank should he deposit and why? Justify. 4
5. The rate of return of two projects of a company are as follows: Year 2016 2017 2018 2019 Project Montu 10% 12% 8% 10% Project Jhontu 15% -5% 16% 25% a. What is the most risky income? 1
b. How liquidity risk is created? 2
c. Calculate the standard deviation of Project Montu? 3
d. Which project should be rejected? Analyze. 4
6. Mr. Saidur is a business person. He has business of leather product. Sometimes he collects money from various sources for a short time. But now he wants to expand his business and starts to collect fund for long term. a. How many classes may be the sources of finance be divided into? 1
b. What is dividend equitable fund? 2
c. “Short term bank loan can be appropriate choice for Mr. Saidur”-Analyze. 3
d. Evaluate the importance of non-institutional sources of fund in case of Mr. Saidur’s business. 4
Part-B: Banking 7. Samir deposits his surplus money in the bank. He is sure that he will be able to use this money when it is demanded. Besides, he can take loan from the bank against him sum of money. a. What is currency? 1
b. “Currency is called the mother of banking business”-Explain. 2
c. What functions do bank perform for the clients of the bank? Describe. 3
d. “Currency works as a measure of value and means of savings”- Analyze it with argument. 4
8. Mrs. Rabeya Akter is a private service holder. Sometimes she deposits some money from her salary in a bank account. Now she is thinking whether she should deposit the saved money in a more profitable account for long term. When she contacted with her bank about it, the bank also advised her to do so. a. What is any branch banking? 1
b. What do you mean by group banking? 2
c. According to the stem, which type of bank account did Mrs. Rabeya Akter open at first? Describe. 3
d. Evaluate the rationality of Mrs. Rabeya Akter’s decision about opening another bank account at the second step. 4
9. Venture Bank collects money from people as deposit and gives loan to the people who have deficiency of money or businessman. But Venture bank keeps certain amount of money from deposit in Bank. For that, customers never be dissatisfied. But on the other hand bank sanctions the loan by evaluating the financial solvency and honesty and keeping security against the loan.
a. Which type of bank is BDBL? 1 b. What is meant by subsidiary bank? 2 c. Which principle of bank is followed by Venture Bank for customer satisfaction?
Describe. 3 d. Which principle of banking business is related with the factor considered by Venture
Bank in time of loan sanctioning? Discuss. 4
10. Mrs. Shila holds a high position in commercial bank that has enabled her to help out two of her neighbors namely Taijul and Mridul. MR. Mridul is a trader and Mr. Taijul is involved with real estate when they require borrowing a large amount of money they both have to take assistance from her. Mrs. Shila said this is how we try to serve people of the country.
a. What is the basic purpose of a commercial bank? 1 b. How does a commercial bank build its credit? Explain. 2 c. Considering Mrs. Shila action attempt to label the bank Mrs. Shila works in?
Describe. 3
d. “Service to people in our main function.”- Evaluate the speech made by Mrs. Shila.
4
11. Mr. Mainul wants to collect LC from a commercial bank. The banker of that bank said to her that, the motive of our bank is to give the best service. He also said that they agree to help customers in any banking work.
a. Which type of objective of commercial bank is social welfare? 1 b. What is LC? Explain. 2 c. How can commercial bank issue note indirectly? Describe. 3 d. Through which process, you think that the commercial bank earns money? 4
