Updated for 2026 Syllabus Detailed Explanations High-Yield Core Concepts

Bank Promotion Exam Guide

Banking Awareness | Banking Knowledge | for all Bank Exams

Module: | HFT Presumptive List & RBI Powers

Q17: Instruments resulting from underwriting commitments must be included in Held for Trading (HFT) only if the commitments relate to securities that are …… by the bank on the settlement date.

A
expected to be actually purchased
B
expected to be sold immediately
C
guaranteed to be profitable
D
hedged completely
✅ Correct Answer: A
The HFT inclusion rule for underwriting commitments applies only to commitments that relate to securities that are expected to be actually purchased by the bank on the settlement date.
This specific condition is a fine print detail in Investment Classification MCQs.