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Advanced Wealth Management Course (IIBF) - Paper 3

Part II: Ch 4: Treasury Bills

Q1.

T-Bills are available for a minimum amount of:

Rs. 10,000

Rs. 5,000

Rs. 15,000

Rs. 25,000

Q2.

“Multiple Price Auction” method is used in the auction of the:

91-day T-Bills

14-day T-Bills

364-day T-Bills

182-day T-Bills

Q3.

Individuals and specified institutions can participate in the auctions on “non-competitive” basis.

True

False

Q4.

Assume that Bank A purchases a T-Bill of Rs. 1000 for Rs. 995, one month ahead of its maturity. What would be the Yield?

5.11%

6.11%

6.08%

5.08%

Q5.

Trading for both 91-day bills and 364-day bills is in multiples of _______

Rs. 10,000

Rs. 1 lakh

Rs. 10 lakhs

Rs. 1 crore

Q6.

X purchased a T-Bills of Rs. 1000 for Rs. 987, 90days before the date of maturity. What is the yield on this T-Bill?

5.342%

5.272%

1.216%

1.342%

Q7.

A is offered a T-Bill of Rs. 1000 for Rs. 968, 182 days before the date of maturity. A expects a minimum of 6.25% yield on his investments. What is the yield on this T-Bill and would ‘A’ buy the T-Bill offered?

6.629% and ‘A’ won’t buy the T-Bill

6.629% and ‘A’ will buy the T-Bill

6.417% and ‘A’ won’t buy the T-Bill

6.417% and ‘A’ will buy the T-Bill

Q8.

The dates of primary issuances of T-Bills and their amounts are notified by:

Primary Dealers

Government

SEBI

RBI

Q9.

The difference between the issue price and the face value constitutes the interest on T-Bills.

True

False

Q10.

(I) NRIs and OCBs are allowed to invest in T-Bills only on non-repatriable basis. (II) All bidders who have bid for a price which is higher than or equal to the “cut-off” price are allotted T-Bills at the cut-off price.

Both the statements are correct

Only statement (I) is correct

Only statement (II) is correct

Both the statements are wrong

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