New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    Which of the following investment of banks are not

    marked-to-market?
    A HTM Correct Answer Incorrect Answer
    B AFS Correct Answer Incorrect Answer
    C HFT Correct Answer Incorrect Answer
    D A and B Correct Answer Incorrect Answer
    E B and C Correct Answer Incorrect Answer

    Solution

    HTM represents the investments which are ‘held to maturity’. Investments classified under HTM need not be marked to market and will be carried at acquisition cost, unless it is more than the face value, i n which case the premium should be amortised over the period remaining to maturity.

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