Practice Risk Management in Banks Questions and Answers

• As per Schedule III of the Companies Act, 2013, the current maturities of long term debt have to be shown under which of the following heading?
• Which of the following Statements is/are True? I- AT-1 bonds are a type  of unsecured, perpetual bonds. II- The return on AT-1 bonds is usually higher tha...
• Which of the following processes does not belong to Risk Management?
• Which of the following risks are associated with Banking Sector?
• Which of the following is also known as “systematic risk”?
• Which of the following is not true about Duration?
• The economic value of a bank can be viewed as the sum of present values of the bank’s expected ________
• Which of the following is not considered as a non performing asset?
• A Debenture of face value of Rs.500 is currently quoting at Rs.530. The duration of the debenture is 3 years. The market interest rates moved from 4.5% to ...
• The price of a forward or futures contract:
• The ratio of change in the price of call option to the change in the price of the underlying stock is called:
• SBI is a systemically important Bank. As such, SBI has to maintain additional Common Equity Tier 1 of ________ as a percentage of its Risk-Weighted Assets ...
• What will be the impact on the portfolio’s systematic risk with the increase in the number of stocks in a portfolio?
• The level of risk that arises from exposure to a single counterparty or sector, and it has the potential to produce large amounts of losses is called:
• Which of the following statement concerning credit risk is incorrect?
• The current expected risk-free rate is 4%, the equity premium is 3.9% and the beta is 0.8. calculate the return on equity.
• As per the BASEL Regulations, Banks shall maintain a minimum Pillar 1 Capital to Risk-weighted Assets Ratio (CRAR) of ………………………………�...
• Which of the following is identified as  “ beneficial owner” for a company , u nder the RBI’s KYC guidelines ?
• The CIBIL score reflects the creditworthiness of an individual borrower. What does a CIBIL score of -1 tell about the credit history of a prospective borro...
• _______ is the entit y that was formed to identify and check fraudulent activity in lending transactions against equitable mortgages .
• As per the KYC related guidelines given by RBI, which of the following is required for conducting V-CIP (Video-Based Customer Identification Process)?
• Which of the following best describes the primary role of the Central KYC Records Registry (CKYCR)? 
• Which of the following best describes a charge created by a borrower in favor of a secured lender upon any movable property, existing or future, without de...
• When a borrower creates a mortgage in favour of the lender by deposit of title deed of immovable property as security to the lender until the loan is fully...
• Recovery r isk is a part of the overall credit risk . Recovery risk is primarily dependent on __ ______
• L oan granted for long duration crops will be treated as NPA, if the instalment of principal or interest thereon remains overdue for __________ _ .   ...
• Which of the following is a Credit information companies (CIC) that provides credit score on individuals?  
• Which of the following factors impact the adequacy of a bank’s liquidity position ?  
• Which of the following describes a charge which is a contract between the borrower and lender in which the borrower offers security to the lender and the b...
• Which of the following is correct with respect to the conditions to be met for a third party’s customer due diligence to be accepted by an RE?
• What is the l imit on total exposure of an originator /lender to the securitization exposures belonging to a securitisation structure or scheme ?
• CERSAI was formed to discourage and prevent the practice of taking out various loans from several banks using the same asset or property. What does the ‘...
• Under the Basel III norms, what is the minimum Capital to Risk-weighted Assets Ratio (CRAR) that banks in India are required to maintain?
• Under Basel III norms, the minimum Tier 1 capital a bank must maintain is:
• Under the Basel III norms, what is the minimum Capital to Risk-weighted Assets Ratio (CRAR) that banks in India are required to maintain?
• What is the maximum of credit risk borne by CGTMSE for guaranteed coverage under the CGTMSE scheme?