CAIIB (ABM - Advanced Bank Management) - Proprietary ratio

 Question: Proprietary ratio is calculated by
 
Explanation:
 

1. Proprietary ratio (also known as Equity Ratio or Net worth to total assets or shareholder equity to total equity).
2. Establishes relationship between proprietor's funds to total resources of the unit. Where proprietor's funds refer to Equity share capital and Reserves, surpluses and Total resources refer to total assets.
3. Proprietary ratio = Proprietor's funds/Total assets
4. This relationship highlights the fact as to what is the proportion of Proprietors and outsiders in financing the total business.

Solved Example:

 

In a business total assets amount of Rs 4,00,000 and Proprietors equity is Rs: 3,00,000 then:

Proprietary ratio = 3,00,000 / 4,00,000

                           =  0.75 times

                               or 75% meaning hereby that 25% of the funds have been supplied by the outside creditors.

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JAIIB Question - SPOT Exchange

In SPOT, the exchange of currencies takes place on:

Answer:

A foreign exchange spot transaction, also known as FX spot, is an agreement between two parties to buy one currency against selling another currency at an agreed price for settlement on the spot date. The exchange rate at which the transaction is done is called the spot exchange rate. The standard settlement timeframe for foreign exchange spot transactions is T + 2 days; i.e., two business days from the trade date.

Question from JAIIB - AFB -Accounting and Finance for Bankers
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This is the "lite" version of the JAIIB Practice Exams Pro app which has 2300 questions. You can check the "pro" version here:

• Review flash cards or take tests in convenient chunks of 10 at a time (10, 20 & 30 in the pro version); view correct answers then and there at the tap of a button.
•   Take timed tests at convenient chunks as with flash cards; mark questions for review at the tap of a button to revisit later.
• Get a different set in each consecutive session till you complete all the available questions in the bank.
• The APP is available at: GooglePlay, iPhone and Amazon play stores.

FREE JAIIB Mobile APP for Practice - JAIIB Practice Exams Lite

Prepare for JAIIB certification with this handy app containing 240 questions across the three JAIIB subjects. Review using flash cards, or assess your readiness via mock exams. 

Download the FREE app from Google Play store: JAIIB Practice Exams Lite
More than 10K + Satisfied customers. 

This is the "lite" version of the JAIIB Practice Exams Pro app which has 2300 questions. You can check the "pro" version here: 

1. Review flash cards or take tests in convenient chunks of 10 at a time (10, 20 & 30 in the pro version); view correct answers then and there at the tap of a button. 
2. Take timed tests at convenient chunks as with flash cards; mark questions for review at the tap of a button to revisit later. 
3. Get a different set in each consecutive session till you complete all the available questions in the bank.

The APP is available at: GooglePlay, iPhone and Amazon play stores.

JAIIB Question - A moneylender finds that due to a fail in the rate of interest

A money-lender finds that due to a fail in the rate of interest from 13% to 12.5%, His yearly income from interest falls by Rs. 208. His principal amount is ____

Solution:

Let the principal amount be Rs X. then, (X \times 13 \times 1)/100 - (X \times 12.5 \times 1)/100=208 X= 208/0.5%= 208*2 *100 X= 41600


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