CS / BIRM / SEM-6 / BIRM-604 / 2011
FINANCIAL AND TREASURY RISK MANAGEMENT
Time Allotted : 3 Hours Full Marks : 70
The figures in the margin indicate full marks.
Candidates are required to give their answers in their own words
as far as practicable.
GROUP – A
( Multiple Choice Type Questions )
1. Choose the correct alternatives for the following : 10 × 1 = 10
i) A risk manager normally tries to cover the risk to
a) earn more profits
b) reduce known losses
c) reduce the uncertainty of cash flow
d) all of these.
ii) Which of the following is not a tool for managing risk ?
a) Avoidance b) Separation
c) Transfer d) None of these.
iii) Options / Futures are ..................... techniques for
a) loss control b) hedging
c) transfer d) separation.
iv) Which of the following is OTC derivative ?
a) Forward b) Futures
c) Options d) None of these.
v) Speculation on derivatives is an integral part of
a) finance function
b) forex function