Preparing for CAIIB BFM Module C is not just about reading concepts it is about understanding how banks manage money, control risk, and operate in real treasury environments. This module is highly practical because it connects directly with treasury operations, asset-liability decisions, and market-based banking activities.
In this blog, we have provided topics covered under Module C along with a structured practice quiz and a free downloadable PDF to strengthen your preparation.
Download CAIIB BFM Module C Practice Quiz PDF
Boost your CAIIB preparation with a structured and exam-focused practice PDF. It is designed to help banking professionals strengthen their understanding of treasury management, ALM, derivatives, and risk-related concepts and practice effectively.
Attempt CAIIB BFM Module C Practice Quiz
Preparing for CAIIB BFM Module C requires a clear understanding of treasury operations, financial instruments, and risk management concepts along with regular practice. Attempting practice quizzes is one of the most effective ways to test your knowledge, improve accuracy, and build confidence for the exam.
Q1. Which of the following best describes the primary function of an Integrated Treasury in a bank?
Q2. The evolution of treasury from a cost centre to a profit centre is primarily driven by:
Q3. A bank’s treasury front office is primarily responsible for:
Q4. Under the Liquidity Adjustment Facility (LAF), when a bank borrows funds from RBI by pledging government securities, this transaction is known as:
Q5. The Standing Deposit Facility (SDF) rate forms the _______ of RBI’s liquidity corridor, while the Marginal Standing Facility (MSF) rate forms the _______.
Q6. A bank has excess liquidity and parks funds with RBI under the Standing Deposit Facility (SDF). Which of the following is TRUE about the SDF?
Q7. Which of the following instruments is NOT a money market instrument?
Q8. A Treasury Bill is issued at a discount and redeemed at face value. If a 91-day T-Bill with face value ₹100 is issued at ₹98.20, what is the annualized yield (approximate)?
Q9. The concept of ‘duration’ of a bond is most accurately described as:
Q10. Modified Duration of a bond is 7.5. If yield increases by 50 basis points, the approximate percentage change in bond price is:
Q11. A bond has a face value of ₹1,000, coupon rate of 8% p.a. (annual), maturity of 3 years, and current market yield of 8%. The bond’s market price would be:
Q12. Which of the following categories of investments in a bank’s portfolio mandatorily requires marking-to-market (MTM)?
Q13. A Nostro account is best described as:
Q14. The difference between a Vostro account and a Nostro account is:
Q15. In treasury operations, ‘Notice Money’ refers to funds placed in the inter-bank market for which period?
Q16. Global Depository Receipts (GDRs) are best described as:
Q17. Indian Depository Receipts (IDRs) are denominated in:
Q18. External Commercial Borrowings (ECBs) can be raised in:
Q19. Under RBI’s ECB framework, the ‘all-in-cost ceiling’ for ECBs refers to:
Q20. Trade Credits for import of capital goods have a maximum maturity of:
Quiz Summary
What is covered under CAIIB BFM Module C?
CAIIB BFM Module C focuses on Treasury Management, which explains how banks manage funds, investments, liquidity, and risks in domestic and global markets. It also covers financial instruments, derivatives, and ALM practices used in real banking operations regulated by bodies like the Reserve Bank of India.
- Treasury and ALM (Asset-Liability Management)
- Introduction to Treasury Management
- Treasury Products
- International Equity and Debt Products
- Funding and Regulatory Aspects
- Treasury Risk Management
- Derivative Products
Check: CAIIB BFM Important Topics
Why should you download CAIIB BFM Module C practice quiz PDF?
A practice PDF is one of the most effective tools for revision because it helps you learn in a structured and exam-focused way, even during short study breaks. It also helps you revise key treasury concepts without going through heavy theory every time.
| Benefit | Description |
| Concept Clarity | Understand treasury, ALM, and derivatives in a simple way |
| Exam-Level Practice | MCQs based on real CAIIB exam pattern |
| Quick Revision | Useful for last-minute preparation |
| Better Retention | Helps remember complex financial instruments easily |
| Flexible Study | Practice anytime, even during work breaks |
What are the benefits of practicing CAIIB BFM Module C questions?
Regular practice improves your ability to handle complex treasury and risk-based questions with speed and accuracy.
| Benefit Area | Impact |
| Speed Improvement | Faster problem-solving in exam |
| Concept Strength | Better understanding of ALM and treasury logic |
| Accuracy Boost | Reduced errors in tricky MCQs |
| Exam Confidence | Familiarity with question patterns |
| Real Banking Insight | Understand practical treasury operations |
Also Attempt:
| Mock Tests | Link |
| CAIIB ABM Mock Test | Attempt Now |
| CAIIB BFM Mock Test | Attempt Now |
| CAIIB ABFM Mock Test | Attempt Now |
| CAIIB BRBL Mock Test | Attempt Now |
FAQs
It focuses on treasury management, ALM, and risk management in banking.
It includes treasury products, derivatives, ALM, risk management, and regulatory aspects.
It helps understand real banking operations like liquidity and risk management.
Yes, especially from derivatives, VaR, and ALM-related calculations.
It is moderate to high level but becomes easy with regular practice and concept clarity.
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