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Credit Risk - This is the risk of non recovery of loan or the risk of reduction in the value of asset.   The credit risk also includes the pre-payment risk resulting in loss of opportunity to the bank to earn higher interest interest income. Credit Risk also arises due excess exposure to a single borrower, industry or a geographical area. Operational risk is the prospect of loss resulting from inadequate or failed procedures, systems or policies. Employee errors. Systems failures. Fraud or other criminal activity. Any event that disrupts business processes. Liquidity Risk - The liquidity risk of banks arises from funding of long-term assets by short-term liabilities, thereby making the liabilities subject to rollover or refinancing risk. Market Risk/ Price Risk - The risk of adverse deviations of the mark-to-market value of the trading portfolio, due to market movements, during the period required to liquidate the transactions is termed as Market Risk. This risk results from adverse movements in the level or volatility of the market prices of interest rate instruments, equities, commodities, and currencies. It is also referred to as Price Risk.
'Atul' and 'Bittu' started a business together with investments of Rs. 4500 and Rs. 5000, respectively, for one year. They agreed to split 25% of their ...
Ajay and Akash together start a business with investment of Rs. 1900 and Rs. ‘x + 900’, respectively. If the profit earned after 5 years is Rs. 7800...
‘A’ and ‘B’ invested Rs. 1200 and Rs. 1500 respectively to start a business. The ratio of the duration for which they kept their investments was...
Deepak, Mohit, and Sneha started a business with initial investments in the ratio 3:4:6 respectively. After one year, Sneha, Deepak, and Mohit made addi...
‘M’, ‘N’, and ‘O’ entered into a business with initial investments of Rs. ‘4x + 550’, Rs. ‘5x + 450’, and Rs. ‘3x + 350’ respect...
A and B started a business by investing Rs.600 and Rs.700 respectively. After 6 months, A increased his investment by Rs.900. Find the ratio of annual p...
Three partners, 'A', 'B', and 'C', invested in a business with contributions of Rs. 24,000, Rs. 15,000, and Rs. 18,000, respectively. They committed the...
Raj and Anjan initiated a business with investments in the ratio of 4:5, respectively. After 4 months, Kumari joined the venture with an investment that...
Kisan and Laxman started a business with the investment of Rs. 1600 and Rs. (y+200) respectively. After four months of the start of business, Mayur join...
Aditi, Bishnu, and Chetna initiated a business with the capital invested by Aditi and Bishnu in a ratio of 9:8. Chetna invested Rs. 800 less than Bishnu...