Practice Financial Management Questions and Answers

• 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 ________
• The Credit guarantees are on risk sharing basis, which implies that
• Match the following: A) Systematic Risk               1) Risk of price movements B) Operational Risk              2) Risk of economy...
• Which of the following correctly explains the standardised approach for computing credit risk under Basel capital requirements, in India?
• Which of the following would have the lowest credit risk for a bank/lender?
• The duration of a 5-year zero-coupon bond is
• What should be the method of valuation for advances against financial securities like shares/debentures/bonds?
• The minimum Common Equity Tier 1 (CET1) capital for banks in India as specified by RBI is:
• Which of the following are involved in the identification of risks?
• The headquarters of BIS is in
• Security firms are primarily exposed to
• What doe ‘I’ in ICAAP stand for?
• Which of the following describes credit risk?
• What are the basic parameters required for stabilizing ALM of bank?               I.        Net Interest Margin             ...
• Risks that could arise due to legal actions or uncertainty of interpretations of contracts & agreements is called
• Which of the following is not a type of Market risk ?
• A bank finds it difficult to repay the short term deposits on maturity because the funds of the bank are locked in ____
• The credit rating should have been reviewed at least once in how many months, for it to be valid for risk weighting purposes under Basel Ill?
• Which of the following risk factors pose business risk to an entity?                       I.        Sales volume and sales pri...
• Which of the following is not an Asset for the bank?
• When a Bank fails to comply with regulatory requirements, it is known as _______