Practice Financial Management Questions and Answers

• 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...
• Banks will not be able to mitigate risks in their credit portfolio, if they
• Customer service in a bank branch has been disrupted for 2 hours, due to failure of the central server. What type of risk is this?
• Which of the following is not a Pillar concept of Basel accords?
• ______ measures the sensitivity of an option to change in risk-free rates.
• Financial Risk can be defined as _________
• A bank borrows Rs.50 crore from call money market on a daily basis and uses that to give a loan of Rs.30 crore to a AAA rated client (i.e. zero default pro...
• What are two methods by which Credit Risk can be measured by?
• The extent of cumulative cash flow mismatches could be arrived as under ______
• Which of the following is correct regarding Reinvestment Risk?                               i.        When Interest Ra...
• A bank has failed to meet its obligation on account of a payment on due date due to its incapacity to pay. What kind of risk it is?
• 1.    Which of the following is correct regarding Supervisory review Process (SRP)? 1.    Supervisors should review and evaluate banks ICAAP 2.   ...
• Which of the following models can be used to calculate the value of call and put option?
• If an individual is unable to pay back the overdraft taken by him, which of the following risk is the bank facing?
• A Legal Entity Identifier is a __ character identifier that identifies distinct legal entities that engage in financial transactions. It is developed by __...
• The approximate percentage change in a bond’s price for a 1% change in yield to maturity is given by:
• What is C in PNCPS
• Which of the following types of risks are not covered in BASEL II/III
• What is the minimum Common Equity Tier 1 to be kept by the banks as per RBI guidelines of BASEL Norms?
• Which of the following risks are addressed by Asset Liability Management ?
• What will be the bond’s duration if the price of the bond fell by 5% as a result of 0.4% rise in the market yield?