TRIBHUWAN UNIVERSITY
Model Question 2079
BBS 4 Years Program/Ill Year/MGMT
Full Marks: 100
Time: 3 hrs.
Foundation of Financial System of Nepal (MGT-226)
Candidates are required to write their answers in their own words as far as practicable. The figures m the mar, indicate full marks.
(Group A)
Brief Answer Questions
Attempt ALL questions.
1. What do you mean by financial system?
2. List out the major types of capital market instruments.
3. Write the classification of depository financial institutions in Nepal.
4. State the roles of risk management industry'.
5. ABC Fund, a closed-end fund consists of three securities: A, B and C. It has 10.000 shares of security A. which is currently trading for. 12, 20.0(8) share of security B currently trading for. 15 and 10.000 shares of security C currently are trading for. 18. The fund has Rs 50,000 in liabilities and 50.000 there outstanding. What is the net asset value per share of the company? , Calculate return on assets if profit margin ratio is 8 percent and assets utilization ratio is 1.5 times?
7. What do you mean by market capitalization?
8. Write the meaning of foreign direct investment.
9. A T-bill with face value. 10,000 and 91 days to maturity is selling at. 9,600, what will be
annual yield on T-bill?
10. Gap ratio of Bank A and Bank B are 30 and 40 percent respectively. Which bank is more interest rate sensitive?
(Group B)
Descriptive Answer Questions [5 x10=50]
Attempt FIVE questions.
7. What do you mean by financial intermediaries? Describe the functions of financial intermediaries
In financial system. [4+6]
8. What is primary market? Explain the role of primary market in Nepal. [4+6J
9. Nepal Development Bank plans to raise an additional Rs 100 million through rights offerings. Current market price per share of the bank is. 250. It has 2,000.000 shares outstanding; Stockholders are offered a new share at a price of Rs 100 each.
a. How many new shares will have to be sold to raise required funds?
b. How many rights will be required to purchase a new share?
c. Calculate the theoretical value of rights.
d. Calculate ex-right price. [4*2.5]
....continue on
Conclusion
These model questions aim to assess the student's understanding of various concepts and principles related to financial systems, covering topics such as banking, financial institutions, monetary policy, financial markets, and other foundational aspects of the financial system. By practicing these model questions, students can enhance their knowledge, prepare for examinations, and strengthen their comprehension of the subject matter.
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