Preparing for the CAIIB Bank Financial Management (BFM) paper requires a good understanding of concepts along with regular practice. Since the syllabus covers foreign exchange, risk management, treasury operations, and balance sheet management, many candidates find it difficult to remember every topic before the exam. One of the best ways to prepare is by solving CAIIB BFM Previous Year Papers (PYPs) and practicing the most repetitive MCQs.
In this blog, we have provided complete details about the CAIIB BFM PYP Quiz and a free downloadable PDF containing questions from most repetitive topics. These questions are selected based on previous exam trends to help banking professionals improve their speed, accuracy, and confidence for the CAIIB 2026 examination.
Download Most Repetitive Questions from CAIIB BFM Previous Year Papers
Boost your CAIIB BFM 2026 preparation by practicing the most frequently asked questions from CAIIB BFM Previous Year Papers. These questions have been carefully selected based on previous exam trends and include detailed answers and explanations to help you strengthen your concepts, improve accuracy, and score better in the examination. The direct download links are provided below:
| Particulars | Details |
|---|---|
| CAIIB BFM Previous Year Paper | Download Free PDF |
| CAIIB BFM Most Repetitive Practice Quiz | Download Free PDF |
Attempt CAIIB BFM Previous Year Paper Quiz
Evaluate your preparation with our CAIIB BFM Previous Year Paper Quiz specially designed for banking professionals. The quiz covers important topics from all modules of Business and Financial Management (BFM) and helps you understand the latest exam pattern, identify weak areas, and improve your overall performance before the CAIIB 2026 examination.
1. Liquidity Coverage Ratio (LCR) requires banks to maintain sufficient High-Quality Liquid Assets (HQLA) to cover net cash outflows for how many days?
2. Net Stable Funding Ratio (NSFR) is defined as:
3. Under Basel III Liquidity Framework, HQLA (High Quality Liquid Assets) Level 1 assets include:
4. Liquidity Risk in banking arises primarily when:
5. Dollar Gap (DGAP) formula in interest rate risk management is:
6. RSA (Rate Sensitive Assets) are assets whose:
7. If RSA = ₹500 crore and RSL = ₹550 crore for a given bucket, the Gap is:
8. A positive Gap (RSA > RSL) implies that if interest rates rise, the bank’s Net Interest Income (NII) will:
9. Cross Currency Rate of EUR/INR given USD/INR = 83.50 and EUR/USD = 1.08 is:
10. In Forex, when a bank buys foreign currency from a customer (export bill purchase), the bank applies:
11. Nostro Account is defined as:
12. FCNR (B) Account [Foreign Currency Non-Resident (Bank)] is:
13. Modified Duration of a bond is calculated as:
14. Basis Point Value (BPV) measures:
15. A bond has Modified Duration of 6 years and current price of ₹1,000. If yield increases by 50 bps (0.5%), what is the approximate change in price?
16. DGAP of a bank is +2 years. If interest rates increase by 1%, the effect on the bank’s equity (net worth) will be:
17. Under Basel III, Common Equity Tier 1 (CET1) ratio must be at least:
18. Capital Conservation Buffer (CCB) under Basel III is:
19. Basic Indicator Approach (BIA) for Operational Risk Capital under Basel II/III calculates capital as:
20. Under the Standardized Approach (TSA) for Operational Risk, the beta factor for Corporate Finance is:
Quiz Summary
Why should you attempt the CAIIB BFM PYP Quiz?
CAIIB BFM Previous Year Paper quizzes help candidates understand the actual difficulty level of the examination. They provide insights into important topics, repeated questions, and the latest question pattern followed by the Indian Institute of Banking & Finance (IIBF). Practicing these quizzes regularly can significantly improve your performance and help you identify weak areas before the exam.
What are the important topics in CAIIB BFM Module A?
Module A focuses on Foreign Exchange Management and International Banking. It is one of the most scoring sections of the CAIIB BFM paper and contains several concept-based and practical questions. Candidates should pay special attention to forex transactions, trade finance, remittances, and regulatory guidelines issued by RBI.
| Topic | Key Points |
| Exchange Rate & Forex Business | Spot rate, cash rate, forward rate; participants in forex market; RBI and Federal Reserve guidelines; arithmetic and regulatory aspects of forex transactions |
| Liberalised Remittance Scheme (LRS) | Limits on money transfer abroad; guidelines for outward and inward remittances |
| Capital Account Transactions | Rules and schedules (Schedule I, II, III); banking services for forex with or without accounts |
| Letter of Credit (LC) | Types, definitions, involved parties; framework and regulatory guidelines |
| Uniform Customs & Practices (UCP) | Current trends, important articles, and practical applications |
| Export Data Processing & Monetary System | Export-import guidelines, trade credit definitions, and operational procedures |
What are the important topics in CAIIB BFM Module B?
Module B deals with Risk Management and Treasury Management. It introduces candidates to Basel norms, liquidity management, treasury products, and various banking risks. Questions from this module are often conceptual and may also include case studies.
| Topic | Key Points |
| Risk Management | Credit, operational, and market risks; Basel framework; loan review mechanisms; liquidity risk management |
| Basel III Norms | LCR, NSFR, and Pillars I, II, and III |
| Treasury Management & Products | Money market, forex market, GDRs, debt instruments, treasury operations |
| Treasury Risk Management | Value at Risk (VaR), derivatives, and treasury risk controls |
| Asset Liability Management (ALM) | ALM concepts, interest rate risk, and regulatory guidelines |
What are the important topics in CAIIB BFM Modules C and D?
Modules C and D focus on Balance Sheet Management, Treasury Functions, and Banking Risks. These modules are highly practical and contain questions related to NPAs, insolvency, and case studies. Candidates should focus on understanding concepts rather than memorizing definitions.
| Topic | Key Points |
| Balance Sheet Management & ALM | Sources and uses of funds, ALM techniques, balance sheet analysis |
| NPA Management | NPA classification, provisioning norms, and recovery mechanisms |
| Insolvency & Bankruptcy Code (IBC) | Basic provisions and practical applications in banking |
| Interest Rate Risk | Management techniques and measurement tools |
| Treasury & Risk in Banking | Derivatives, liquidity management, and treasury case studies |
| Operational Risk Management | Practical banking scenarios and mitigation techniques |
Which topics are most repetitive in CAIIB BFM Previous Year Papers?
Based on previous CAIIB examinations, certain topics appear more frequently than others. Candidates should revise these areas multiple times before the exam.
| Topic | Frequency |
| Basel III | Very High |
| Value at Risk (VaR) | High |
| Letter of Credit | High |
| FEMA & LRS | High |
| Treasury Management | High |
| NPA & Provisioning | Very High |
| ALM Concepts | High |
| Forex Rates | Medium to High |
| UCP 600 | Medium |
| IBC | Medium to High |
Also Check:
| Related Article | Link |
| CAIIB BRBL Questions | Click here to Check |
| Top 50 Most Repetitive CAIIB BRBL MCQs | Click here to Check |
| Top 50 Most Repetitive CAIIB ABFM MCQs | Click here to Check |
FAQs
Module A mainly covers Foreign Exchange, FEMA, Letter of Credit, LRS, and Export-Import procedures.
It has high weightage and includes practical banking concepts related to forex transactions and regulations.
LCR, NSFR, and the three pillars of Basel III are commonly asked in the examination.
Treasury Management includes money markets, forex markets, derivatives, VaR, and treasury products.
Yes, ALM concepts and interest rate risk management are important and frequently tested.
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