Practice Financial Management Questions and Answers

• Net interest position of the bank has which of the following characteristics?
• Above what amount of aggregate exposure banks have to furnish credit information to Central Repository of Information on Large Credits (CRILC) under PCR?
• RBI has mandated the Legal Entity Identifier (LEI) code as a key measure to improve the quality and accuracy of financial data systems for better risk mana...
• What is the risk weight for the housing loans with LTV Ratio (Loan to Value Ratio) lesser than 80%?
• In a securitization, the issuer of asset-backed securities is best describes as the:
• In a repurchase agreement, the percentage difference between the repurchase price and amount borrowed is equal to:
• As per the BASEL Regulations, Banks shall maintain a minimum Pillar 1 Capital to Risk-weighted Assets Ratio (CRAR) of ………………………………�...
• What is the full form of MCLR?
• With respect to the futures transactions, the purpose of margin is to”
• A risk-averse investor is best described as an individual as:
• ASBA is an important mechanism in the IPO process to prevent refunding in case of unsuccessful allotment. What is the full form of ASBA?
• Which type of reserves are not to be included for the calculation of Capital for Capital adequacy norms?
• Which of the following Investment Banks were allowed to fail during global financial crisis of 2007-09?
• A protection against financial losses in the future is called:
• Which of the following is/are the basic component(s) of financial risk?
• Who can be the participants in the Call Money Market 1.    Scheduled Commercial Banks (excl Local Area Banks) 2.    Small Finance Banks and Payment B...
• What will the duration of the bond if the current market value of a bond is Rs.102.50 and the market value decreased by Rs.2.50 when the interest rates inc...
• MNO Ltd got its bond rated by a credit rating agency. The rating given to the bond was lsquo;AA-lsquo;. What does this rating indicate?
• Which of the following statement with respect to Risk weight for banks is correct?                       I.        The risk we...
• What is the Cash reserve ratio (CRR) as of May 2022?
• For initiating proceedings under IBC, what is the minimum amount of default?
• As a tool to enhance liquidity, RBI introduced the on tap TLTRO scheme with a size of Rs 1 lakh crores. TLTRO stands for _____
• In which kind of finance, the buyer is given credit under the line of credit by the exporter’s bank and the exporter will be made to export?
• Which among the following is a numerical measurement that is used to predict the chances of a business going bankrupt in the next two years.
• Compared to investing in a single security, diversification provides investors a way to:
• Which type of reserves are not to be included for the calculation of Capital for Capital adequacy norms?
• A protection against financial losses in the future is called:
• The approximate percentage change in a bond’s price for a 1% change in yield to maturity is given by:
• A setup in which group of individuals or entities decides to pool resources towards fulfilling a debt or financing a single borrower wherein the setup is g...
• 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 a India’s First Microfinance Credit Bureau Database?
• A company is in need of a new plant to ramp up production at its manufacturing unit. It is contemplating ways to finance the new plant and is deciding betw...
• An entrepreneur is setting up his new business. He purchases some equipment. He also takes insurance on the equipment for which the premium is paid for 6 m...
• Which of the following banks continue to be identified by Reserve Bank of India as Domestic-Systemically important Banks
• Which among the following is NOT a constituent of  Tier-II capital of banks according to BASEL Accord?
• Which of the following forms a part of Risk Management?
• Which of the following is the risk when a bank fails in honoring the commitment of payment of deposits to the customers due to inability to meet cash flow ...
• Which of the following best describes the objective of liquidity management?
• With full implementation of Basel III norms, the minimum Total Capital Ratio (including CCB) is prescribed by RBI as ________
• Which of the following would have the primary responsibility of understanding the risks run by the bank and ensuring that the risks are appropriately manag...