Practice Financial Management Questions and Answers

• How much provision is required for an asset which is there in a doubtful category upto 12 months?
• What is the provisioning requirement for a standard asset for fund based facilities of Farm Credit to agricultural activities, individual housing loans and...
• Which of the following is not one of the pillars of Basel III?
• Which of the following is NOT a correctly matched strategy to mitigate the given risk?
• In risk management (Basel framework) advanced internal ratings-based (A-IRB) approach is used for measurement of?
• Legal risk in a bank can lead to which of the following?                       I.        claims against institution,      ...
• Which of the following risk can reduce the value of a bond or other fixed rate investments?
• Which of the following statement is incorrect?
• Which of the following committee oversees the credit/counterparty risk and country risk in a bank?
• Which of the following risk is made up of transaction risk, default risk and portfolio risk?
• Internal Capital Adequacy Assessment Process (ICAAP) is a requirement under ______ of Basel norms.
• Which of the following will be the features of Zero Risk?                       I.        It does not have any uncertainty with...
• Animesh enters into a short position in a forward contract where the forward price is Rs.25 and spot price at maturity is Rs.30. What will be Animesh’s p...
• Which of the following statements is not correct?
• Vivek is a foreign exchange dealer. He enters into a forex position and forgets to square the over bought position in a foreign currency. Which of the foll...
• ABC Bank Ltd has extended a Rs.10 crore loan at 5% over the repo rate. The loan is to be repaid in equal quarterly instalments. The bank’s funding of the...
• Strategic Risk can be classified as _______
• When a Bank sanctions a loan to a large borrower, which of the following risks it may not face?
• Given the following information, what will be the capital charge for operational risk as per Basic indicator approach, for year 1 and year 2? ...
• The Basel III capital regulations were implemented in India with effect from _________ and have been fully implemented as on____________.
• Which of the following is correct with respect to measurement of sensitivity?
• In case of securitization of assets, to ensure that the originators have a continuing stake in the performance of securitised assets, the ______ is mandate...
• What does first ‘P’ in the security instrument PNCPS, stand for?
• An agreement to buy/sell a financial instrument at a fixed future date, that is sold over an exchange, is a/an ________
• Which of the following measures is used to measure the sensitivity of the option’s price to changes in the volatility of the underlying stock?
• Which of the following describes the process in which certain types of assets are pooled so that they can be repackaged into interest-bearing securities?
• What will be the impact on the unsystematic risk of a portfolio as the number of stocks in a portfolio increases?
• Which of the following is a measure of how the returns of two risky assets move in relation to each other?
• Which of the following components of capital adequacy is/are mandatory as per Basel III norms?                       I.        ...
• An investor looking to protect himself from the downside risk should use which of the following derivatives?
• RBI announced the list of Domestic-Systemically important Banks (D-SIBs) based on 2021 data. The banks that have been identified as D-SIBs are ____
• The _____ measures the price volatility of fixed income securities.
• What does BCBS stand for?
• What does ‘C’ in LCR stand for?
• As per RBI, the bank should have a Chief Risk Officer (CRO), who if reports to the MD, should also directly meet the Risk Management Committee, in absence ...
• Which of the following banks will not carry any credit risk?
• As per loan review framework of RBI, loan review of low value accounts are usually carried out __________
• Which of the following are types of Liquidity risk?                       I.        Time risk                 �...
• Which of the following should head the Credit Control Committee?
• As per the Large exposure framework, banks can have a maximum exposure up to 20% of ______, to a single borrower.