Practice Financial Management Questions and Answers

• 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:
• Which of the following financial reports are considered to be of the lowest quality? Financial reports that reflect:
•   RSP Ltd has a net profit margin of 12% and a total asset turnover of 1.2 times and a financial leverage multiplier of 1.2 times. RSP Ltd’s return on e...
• Most of the widely used global security indices are:
• How many co-efficients are there in the Altman Z Score Model?
• Lenders customarily analyze the creditworthiness of borrower by analysing the 6C’s of Credit, which are:
•   Identify the cash flow from operating activities from the following: 1. Payment of taxes 2. Dividend and Interest payments 3. Sale of a fixed asset 4...
•   Comparison of a company’s financial results to other peer companies for the same period is called:
•   Legal Entity Identifier India Ltd, an agency accredited by the GLEIF as the Local Operating Unit (LOU) in India for issuance and management of LEI (Lega...
• What is the minimum Net Owned Fund required for a Asset Reconstruction Company?
•   A Cash Credit or Overdraft account can be considered as out of order if:
•   As per the RBI guidelines for Short Term Loans for Agriculture and Allied Activities availed through Kisan Credit Card (KCC), Iinterest subvention and p...
• A facility to withdraw money from a current bank account without having a credit balance but is limited to the extent of the borrowing limit, which the com...
• A company fails to accrue wages for march that will be paid in April. The company’s year-end balance sheet liabilities:
• ABC Ltd stated the reason of poor performance of the company was the unsystematic risks faced by it in the current financial year. Which of the following i...
• The key areas to be monitored under the Revised Prompt Correction Action framework of RBI does not include _____
• The rate applicable to an investment lasting for ‘n’ years when all the returns are realized at the end is called:
• Which of the following factors DO NOT attribute to increase the credit risk of a bank?
• Which of the following is a limitation of the Value at Risk (VaR) approach, a widely used risk management tool, to measuring risk?
• Which of the following is/are correct regarding the liquidity ratios under BASEL-III accord defined by Basel Committee on Banking Supervision (BCBS)?   �...
• All of the following are considered under Tier II capital of a bank, except ________