Foundation Of Financial Systems TU Board 2082 question paper

What do you mean by financial market.

Write about the money market instrument.

On Shrawan 24, 2081 NEPSE is 2766.38 and total turnover is Rs. 20,070,434,103. Write the meaning of these values.

State the roles of CDS and clearing Ltd. in Nepal.

What do you mean by market index?

Write the meaning of ancillary financial services

How does open-end fund differ from closed end fund?

Calculate return on assets if profit margin ratio is 10 percent and assets utilization ratio is 2 times?

A T-bill with face value Rs 10,000 and 180 days to maturity is selling at Rs 9,700, what will be annual yield on T-bill?

Gap ratio of Bank A and Bank B are 25 and 30 percent respectively. Which bank is more interest rate sensitive? Why?

What do you mean by exchange rate? Explain the types of exchange rate system. [4+6]

What is primary market? Explain the role/functions of primary market in Nepal.[4+6]

Himalaya Power Company plans to raise an additional Rs 50 million through rights offerings. Current market price per share of the bank is Rs 150. 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 a rights. d. Calculate ex-right price.

The following are the information extracted from financial statements of Bank A and Bank B for the fiscal year 2080/81 (in Million Rs) Bank ABank BTotal assetsRs. 50,000Rs. 75,000Non-interest income650800Interest income7,0009500Interest expenses3,2004,100Loans, advances and bill purchased25,00030,000Investments8,00010,000Interest bearing deposits34,00042,000Debenture and bond1,2001,500 a. Calculate non-interest income ratio of both banks for the fiscal year 2080/81. b. Calculate net interest margin ratio of both banks for the fiscal year 2080/81. c. Calculate spread ratio of both banks for the fiscal year 2080/81. d. How do you evaluate both bank's performance on the basis of calculated ratios?

A mutual fund has 10,000 shares of Company A currently trading at Rs 250, and 20,000 shares of Company B currently trading at Rs 240. The fund has issued 600,000 shares and current liability is as 100,000. a. What is the NAV of the mutual fund? b. If investors expect the price of the Company A's shares to increase to Rs 300 and price of Company B's shares to decline Rs 220 by the end of the year, what is the expected NAV at the end of the year? [4+6]

Write notes on (Any two) a. Non-depository financial institution b. NEPSE c. Further Public Offering

Why do Bank and Financial Institution (BFIs) need to be regulated? Explain the role of NRB in regulation of BFIs. [9+6]

Nepal Rastra Bank has published summary of BOP for the first eight months for the fiscal year 2023/24. Summary of current account for the first eight months of the fiscal year 2023/24 is as follows: ParticularsCreditDebitGoods and services:310,0001,510,000Goods250,0001,150,000Services60,000360,000Primary income38,00016,000Secondary income600,00015,000 On the basis of data given above, answer to the following questions: a) What is the net of goods and services account during the given period of three fiscal years? b) What is the net of primary income account and secondary income account during the given period of fiscal year? c) Which accounts have contributed to increase the current account deficit? d) Which accounts have contributed to decrease the current account deficit? e) What is the trade deficit/surplus during the first eight months of given fiscal year?

Assume that it is now January 1, 2024. The rate of inflation is expected to be 5 percent throughout 2024. However, increased government deficits and other reasons in the economy are then expected to push inflation rates higher. Investors expect the inflation rate to be 6 percent in 2025, 7 percent in 2026, and 8 percent in 2027. The real risk-free rate currently is 2 percent. Assume that no maturity risk premium is required on bonds with 5 years or less to maturity. The current interest rate on 5-year T-bonds is 9 percent a. What is the average expected inflation rate over the next 4 years? b. What should be the prevailing interest rate on 4-year T-bonds? c. What is the implied expected inflation rate in 2028, or year 5, given that bonds which mature in that year yield 9 percent? d. Briefly explain the factors affecting interest rate.