Practice Financial Management Questions and Answers

• Which of the following is a method of measuring the loss in the value of the portfolio over a given period and for a distribution of historic return?
• Which of the following is not considered for maintaining Statutory Liquidity Ratio (SLR) by   Scheduled Commercial Banks?
• Ayush bought a futures contract at Rs 120. If, the initial margin is 40% and maintenance margin is 25%, at what price the margin call will be initiated for...
• Derivatives can be used to hedge the risk. A person can protect himself from downside risk by entering into which of the following position?
• Which among the following is NOT a constituent of Tier-II capital of banks according to BASEL Accord?
• Which of the following risk is the bank facing when an individual is unable to pay back the overdraft taken by him?
• The Assets Liabilities committee (ALCO) in a bank is primarily responsible for managing which of the following risk?
• The Risk based supervision (RBS) for banks was introduced in 2012 by RBI. Which of the following is correct regarding RBS?
• The Basel II required that all banking institutions set aside capital for operational risk. The operational risk can be assessed by which of the following ...
• The ICAAP is required to form an integral part of the management and decision-making culture of a bank. What does ICAAP stands for?
• In derivatives market, individual/firm that take short and long positions in the same or different contracts at the same time to create a position which ca...
• Name the risk which arises when bank’s image is not good and that leads to public’s loss of confidence in the bank.
• Which of the following are the benefits of a centralised risk management structure? A.    it is independent from operations and business unit of the ban...
• Which of the following risk(s) does the Chief risk officer deals with?
• If the expected return on the market is 18% and the expected return on a stock with a beta of 1.2 is 20%, what is the risk-free rate?
• When a bank sanctions a large loan to a borrower, which of the following risks it may not have?
• Managing risk in a bank means _______ A. not entering into any business where there appears to be risks B. implementing the appropriate policies and proced...
• Which of the following products of a bank can have credit risk? A. fund based loans B. non fund based loans C. treasury products
• As per loan review framework of RBI, loan review of high value accounts are usually carried out __________
• Which of the following carries lowest risk weight?
• Overall responsibility for management of liquidity risk lies with the
• Which of the following is not a type of liquidity risk?
• At what periodicity are banks are required to submit Basel III Liquidity return on Liquidity coverage ratio (BLR-I)?
• Which of the following describes the relationship between systematic risk and return?
• Tier I capital is also called
• A prerequisite for establishment of an effective risk management system is the existence of a robust _____
• The ------ risk arises from non-performance of the trading partners
• The credit control committee should be headed by which of the following?
• Which of the following is not a step in the Risk Management Process?
• Which of the following metric of the bank is dependent on the movements of the interest rate?
• 'Risk-Tolerance' is best described by which of the following?
• If the beta of the market index is 1 and the standard deviation of the market index increases from 12% to 18%, what is the new beta of the market index?
• Systemic risk is the risk due to
• As per the Large exposure framework, banks can have a maximum exposure up to _____ of eligible capital of bank, to a single borrower.
• _______ is the act of taking on a risk for a fee.
• Which of the following risk(s) is/are Floating-rate bonds designed to minimise?
• _______ measures banking sector’s ability to absorb shock arising from financial and economic stress.
• Which of the following are not TRUE about CERSAI? 1.    CERSAI’s full form is Central Registry of Securitization Asset Reconstruction and Security Int...
• Conditions imposed by the lender on the borrower that certain activities will or will not be carried out are called…………
• Regional Rural Banks were created on the recommendation of: