Question
Which of the following factors DO NOT attribute to
increase the credit risk of a bank?Solution
High LTV ratio means high loan as compared to the value of the asset financed. In such a case the collateral value is insufficient or offers very little margin of safety for the bank in case of default by the borrower Weak credit policy can lead to poor credit appraisal and inadequate follow-ups leading to higher risk of default Higher exposure to single territory increase the geographical risk like the one witnessed by Microfinance institutions when all MFI loans in Andhra Pradesh turned bad and MFIs concentrated in that state suffered huge non-recoveries. Crystallisation of contingent liabilities poses liquidity risk to the banks.
Which one of the following transactions will be considered as a transfer payment?
Income effect states that as price of a good falls, demand rises since there is rise in
Which of the following should be excluded while calculating Gross national Product?
The range of the correlation coefficient is?
Which of the following transaction is being ignored while calculating national income?
Which of the following asset belongs to the flow concept?
Coefficient of elasticity of demand is negative. It means:
What should be done in an economy to reduce the effects of recession?
If a 1 percent decrease in the price of a pound of squash results in a larger percentage decrease in the quantity supplied,
Which of the following occupations are included under secondary sector as per the national income accounts?
1. Manufacturing
2. Constructi...
