Practice Financial Management Questions and Answers

• The Credit guarantees are on risk sharing basis, which implies that
• Match the following: A) Systematic Risk               1) Risk of price movements B) Operational Risk              2) Risk of economy...
• Which of the following correctly explains the standardised approach for computing credit risk under Basel capital requirements, in India?
• Which of the following would have the lowest credit risk for a bank/lender?
• The duration of a 5-year zero-coupon bond is
• What should be the method of valuation for advances against financial securities like shares/debentures/bonds?
• The minimum Common Equity Tier 1 (CET1) capital for banks in India as specified by RBI is:
• Which of the following are involved in the identification of risks?
• The headquarters of BIS is in
• Security firms are primarily exposed to
• What doe ‘I’ in ICAAP stand for?
• Which of the following describes credit risk?
• What are the basic parameters required for stabilizing ALM of bank?               I.        Net Interest Margin             ...
• Risks that could arise due to legal actions or uncertainty of interpretations of contracts & agreements is called
• Which of the following is not a type of Market risk ?
• A bank finds it difficult to repay the short term deposits on maturity because the funds of the bank are locked in ____
• The credit rating should have been reviewed at least once in how many months, for it to be valid for risk weighting purposes under Basel Ill?
• Which of the following risk factors pose business risk to an entity?                       I.        Sales volume and sales pri...
• Which of the following is not an Asset for the bank?
• When a Bank fails to comply with regulatory requirements, it is known as _______
• Operating risk is most likely to increase as a result of:
• A company fails to accrue wages for march that will be paid in April. The company’s year-end balance sheet liabilities:
• Which category of operational risk events encompasses losses from KYC and guideline breaches?
• Which of the following is not an external factor leading to credit risk?                    ...
• What does ‘R’ in CRILC stand for?                             ...
• For identification and measurement of operational risk, how many loss events have been identified?
• Which of the following term is used to describe the conditions imposed by the lender on the borrower that certain activities  will or  will  not be  ca...
• Price risk is the risk of a decline in the value of a security or a portfolio. How can one transfer price risk?
• What are the Over the counter (OTC) derivatives considered risky?
• The risk that loss may arise on account of trading in SLR and other securities by a bank is classified as ______
• When should a risk be avoided?
• Systemic risk may arise due to ______
• Which of the following are the components that are required to be estimated for credit risk quantification? 1. Probability of default 2. Expected Loss 3. E...
• As per the guidelines of RBI, what is the risk weight for the housing loans with LTV Ratio (Loan to Value Ratio) lesser than 80%
• Where the aggregate exposure of the banking system is ₹5 crore or more, borrowers can open current accounts with any one of the banks with which it has C...
• What does cash flow means in accounting parlance?
• A rate at which RBI (Reserve Bank of India) lends to commercial banks by purchasing securities:
• ……………………………………………. allows the RBI to absorb liquidity (deposit) from commercial banks without giving government securitie...
• The Basel III capital regulations are based on which of mutually reinforcing Pillars
• Which of the following ratios can help compare the operational efficiency of different entities?