CAIIB ABFM MCQs Module C Questions

CAIIB ABFM MCQs 2025 Module C Questions: CAIIB is designed to enhance advanced knowledge and skills in banking, focusing on areas such as decision-making, risk management, and general bank management. The CAIIB Exam is held twice in a year and for the June Session, the CAIIB ABFM 2025 is to be held on 22nd June 2025. 

CAIIB (Certified Associate of Indian Institute of Bankers) Paper 1: Advanced Bank Management (ABM) Module C focuses on Credit Management, an important area for banking professionals. This module blends theoretical concepts with practical applications, including both numerical and case-based questions, making it essential for candidates to have a strong grasp of both concepts and calculations. You can find the CAIIB ABFM MCQs Module B Questions prepared by the PW Faculty.

CAIIB ABFM MCQs 2025

CAIIB ABFM MCQs 2025 Module C Questions

Q1. Which of the following statements is correct?

a) In reverse merger a smaller company acquires a still smaller company

b) In a reverse merger a smaller company acquires Larger company

c) In a reverse merger a larger company acquires a smaller company

d) In a  reverse merger an NBFC acquires a Non-Financial company Ans: b) In a reverse merger a smaller company acquires Larger company

Q2. A merger is said to be synergistic if the combined value of the companies is greater than

a) the aggregate value of the individual companies before the merger.

b) values of the individual companies following the merger.

c) the worth of the company as a whole.

d) none of the above Ans: c) Anticipated cash flows along with discount rates.

Q3. Which of the following entails dividing a large corporation, such as a conglomerate, which is comprised of various divisions, into multiple independent businessess?

a) Stock spilt

b) Amalgamation

c) share buyback

d) Demerger Ans: d) Demerger

Q4. A taxpayer in India, may generally carry forward business losses for a period of up to assessment years succeeding the assessment year in which the loss was first computed.

a)  Two

b) Five

c) Eight

d) Ten Ans: c) Eight

Q5. Which of the following statement is correct?

a) In a reverse merger a smaller company acquires a still smaller company

b) In a reverse merger a smaller company acquires a Larger company

c) In a reverse merger a larger company acquires a smaller company

d) In a reverse merger an NBFC acquires a Non-Financial company Ans: b) In a reverse merger a smaller company acquires a Larger company

Q6. A merger is said to be synergistic if the combined value of the companies is greater than

a) the aggregate value of the individual companies before the merger

b) value of the individual companies following the merger

c) the worth of the company as a whole

d) None of the above Ans: a) the aggregate value of the individual companies before the merger

Q7. A ratio that illustrates the stock market's readiness to pay for one rupee of earings per share is referred to as an earings multiple. This is known as

a) Ratio of Price to Net Profit

b) Ratio of Price to Net Profit

c) Ratio or Earnings to Price

d.) None of the above b) Ratio of Price to Net Profit

Q8. What kind of merger takes place when two companies whose lines of business are completely unrelated to one another and have nothing in common but decide to join forces

a) Horizontal Integration

b) Conglomerate

c) Amalgamation

d) Vertical Integration Ans: b) Conglomerate

Q9. Which of the following terms best depicts the situation in which both parties are attempting to find a resolution to a complicated disagreement that is acceptable to both of them?

a) Mutual benefit

b) Win-lose

c) Zero-sum

d) Win-win Ans: d) Win-win

Q10. Which of the following is not considered to be an intangible aspect when it comes to the backdrop of a negotiation?

a) the importance of preserving healthy relationships

b) the final price that has been agreed upon on a contract

c) the pressure to present oneself in a just or honourable light

d) the importance of maintaining one's appearance Ans: b) the final price that has been agreed upon on a contract

Q11. What are intangible assets?

a) None-monetary assets with tangible value

b) Financial Assests devoid of physical substance

c) Non-monetary assets devoid of physical substance

d) Monetary assets having material form Ans. c) Non-monetary assets devoid of physical substance

Q12.  A taxpayer in India, may generally carry forward business losses for a period of up to assessment years succeeding the assessment year in which the loss was first computed.

a) Two

b) Five

c) Eight

d) Ten Ans. c) Eight

Q13. Which of the following approaches do you belive is most suitable for the purpose of determing the value of the tangible assets?

a) Multiple

b) Relative

c) Consistent

d) Exclusive Ans. b) Relative

Q14. The worth of an asset can be determined by analysing its pricing in relation to the pricing of comparable assets in terms of a common variable is known as such as earning, cash flows, book value, or sale

a) Discounted cash flow valuation

b) Contingent claim valuation

c) Relative valuation

d) Free cash flow valuation Ans. c) Relative valuation

Q15. A ratio that illustrates that the stock market's readiness to pay for one rupee of earnings per share is referred to as an earnings multiple. This is known as

a) Ratio of Price to Net Profit

b) Ratio of Price to Earnings

c) Ratio of Earnings to Price

d)  None of the above Ans. b) Ratio of Price to Earnings 

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