Which of the following factors DO NOT attribute to increase the credit risk of a bank?
High LTV ratio means high loan as compared to the value of the asset financed. In such a case the collateral value is insufficient or offers very little margin of safety for the bank in case of default by the borrower Weak credit policy can lead to poor credit appraisal and inadequate follow-ups leading to higher risk of default Higher exposure to single territory increase the geographical risk like the one witnessed by Microfinance institutions when all MFI loans in Andhra Pradesh turned bad and MFIs concentrated in that state suffered huge non-recoveries. Crystallisation of contingent liabilities poses liquidity risk to the banks.
Lee opened his new business on 1 January 2016. On that date, the only asset was a bank balance of $10,000.
During the year, Lee’d drawings...
Consider the following statements regarding the Sovereign Gold Bond Scheme-
I.Sovereign Gold Bonds are the government securities denominated in...
Which of the following formulae correctly calculates the Operating Profit Margin?
In a period of rising prices and stable inventory quantities, which of the following best describes the effect on gross profit of using LIFO as compare...
Based on the following information- calculate the initial investment in the project.
Cost of machine = Rs. 54,00,000
Installation charges ...
S, an entity had 500 units of product X at 30 June 2015. The product had been purchased at a cost of $18 per unit and normally sells for $24 per unit. R...
Which of the following factors has the highest weightage in RBI’s Financial Inclusion Index?
In which of the following cases can a NPS subscriber withdraw 100% amount without purchasing an annuity?
Bonds with original maturities of one year or less are called:
The partners’ liability in a partnership is _____
