Practice Financial Management Questions and Answers

• 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.
• Liquidity is the ability to accommodate ______ in liability and _____ in assets.
• What are the mismatch tolerance levels for time bucket of 15 – 28 days  in the ALM statement?
• XYZ Bank Ltd specializes in granting loans to firms in a specific line of business. Which of the following is true in this case?
• RBI increased the CRR requirement to 4.5% in May 2022. This action is expected to ________
• Risk faced by financial institutions in which advancement of technology does not produce savings in cost is known as _____
• What doe ‘I’ in SWIFT stand for?
• The bonds prices _____ with increase in interest rates.
• For market risk, the minimum capital requirement is expressed in terms of two separately calculated charges. Which of the following are those two risks cha...
• The LTV allowed on loans against gold jewellery or gold loans is _____
• A 16% bond with a face value of Rs. 250 is available for Rs. 200 in the market. The current yield on the bond is
• In Capital Asset pricing model, beta measures the
• A bank borrows Rs.50 crore from call money market on a daily basis. It invests in 5-year Government of India bonds with YTM of 7.10% having market value of...
• _________ is the risk of loss that arises due to breakdown in the internal procedures, people and systems or from external events
• Adequacy of a bankrsquo;s liquidity position depends upon ________
• Which of the following risks are considered as non financial risks faced by a bank
• Which of the following statements correctly represents capital?
• In ‘CAMELS’  what does C stand for?
• Pillar I of Basel III covers 3 types of risks. Which of the following is not one among them?
• The Asset-Liability Management committee (ALCO) deal with different types of ______
• Which of the following is a type of interest rate risk?