11. A transaction where financial securities are issued against the cash flow from a pool of assets is called:
a) Credit Default Swap
b) Securitisation
c) Credit Linked Notes
d) Total Return Swap
12. Credit Derivatives______________.
a) Transfer risk in a credit asset by transferring the underlying asset
b) Transfer risk in a credit asset without transferring the underlying asset
c) Both of them
d) None of them
13. Rating Migration of A rated borrowers of a bank between 31.03.2004 and 31.03.2005 is as under
Default probability is
a) 4%
b) 8%
c) 2%
d) None of these
14 Net interest Margin (NIM) is equal to:
a) Net Interest Income / Total assets
b) Net Interest Income / Net Interest Expenses
c) Net Interest Income / Average total assets
d) Interest Income / Average total assets
15. Banks need liquidity to:
a) Fund loan demands
b) Meet deposit withdrawal
c) Both of them
d) None of them
16. Adequacy of a bank’s liquidity position depends on:
a) Anticipated future funding needs
b) Present and future earnings capacity
c) Sources of funds
d) All of above
17. Liquidity risks are types of risks grouped in ______.
a) Call Risk, Time Risk, Basis Risk
b) Time Risk, Funding Risk, Call Risk
c) Basis Risk, Funding Risk, Call Risk
d) Yield Curve Risk, Basis Risk, Funding Risk
18. The need to replace net outflows due to unanticipated withdrawal of deposits is known as ________ risk.
a) Call Risk
b) Funding Risk
c) Time Risk
d) None of these
19. The need to compensate for non-receipt of expected inflows of funds is called ______ risk.
a) Call Risk
b) Funding Risk
c) Time Risk
d) None of these
20. The risk arising out of crystallization of contingent liabilities is called _____ risk.
a) Call Risk
b) Funding Risk
c) Time Risk
d) None of these
Other Parts
Risk Management Part 1
Risk Management Part 3
Risk Management Part 4
Risk Management Part 5
Risk Management Part 6
Risk Management Part 7
Risk Management Part 8
a) Credit Default Swap
b) Securitisation
c) Credit Linked Notes
d) Total Return Swap
12. Credit Derivatives______________.
a) Transfer risk in a credit asset by transferring the underlying asset
b) Transfer risk in a credit asset without transferring the underlying asset
c) Both of them
d) None of them
13. Rating Migration of A rated borrowers of a bank between 31.03.2004 and 31.03.2005 is as under
Last Rating
|
No. of
borrowers
|
Rating Migration
|
||||||
A
|
200
|
A++
|
A+
|
A
|
BB
|
B+
|
B
|
Default
|
1
|
2
|
181
|
3
|
4
|
5
|
4
|
||
Default probability is
a) 4%
b) 8%
c) 2%
d) None of these
14 Net interest Margin (NIM) is equal to:
a) Net Interest Income / Total assets
b) Net Interest Income / Net Interest Expenses
c) Net Interest Income / Average total assets
d) Interest Income / Average total assets
15. Banks need liquidity to:
a) Fund loan demands
b) Meet deposit withdrawal
c) Both of them
d) None of them
16. Adequacy of a bank’s liquidity position depends on:
a) Anticipated future funding needs
b) Present and future earnings capacity
c) Sources of funds
d) All of above
17. Liquidity risks are types of risks grouped in ______.
a) Call Risk, Time Risk, Basis Risk
b) Time Risk, Funding Risk, Call Risk
c) Basis Risk, Funding Risk, Call Risk
d) Yield Curve Risk, Basis Risk, Funding Risk
18. The need to replace net outflows due to unanticipated withdrawal of deposits is known as ________ risk.
a) Call Risk
b) Funding Risk
c) Time Risk
d) None of these
19. The need to compensate for non-receipt of expected inflows of funds is called ______ risk.
a) Call Risk
b) Funding Risk
c) Time Risk
d) None of these
20. The risk arising out of crystallization of contingent liabilities is called _____ risk.
a) Call Risk
b) Funding Risk
c) Time Risk
d) None of these
Other Parts
Risk Management Part 1
Risk Management Part 3
Risk Management Part 4
Risk Management Part 5
Risk Management Part 6
Risk Management Part 7
Risk Management Part 8
Post Category :
Risk Management
0 Comments For " Overview of Risk Management Part 2 "