31. Yield to maturity of a bond means:
a) Total cash flow on account of interest till maturity of the bond.
b) The coupon rate of the bond.
c) The rate at which the PV of all cash flows equals the market price of the bond.
d) Total cash flow on account of interest and principal till maturity of the bond.
32. Macaulays Duration is expressed
a) in percentage
b) as an absolute number
c) in terms of years
d) none of these
33. If a bond has a modified duration of 2 and the change in yield is 50 basis points, what would be the change in price of the bond?
a) 1%
b) 2.5%
c) 0.5%
d) 2%
34. Price Volatility of a bond = (Yield volatility x ______ x Yield) / Price
a) Duration
b) modified duration
c) BPV
d) none of these
35. Capital requirement arising in respect of credit and counterparty risk
a) Should be at least met by Tier-1 capital up to 50%
b) Should be met by tier-1 capital
c) Should be met by Tier-1 & Tier-2 capital
d) Should be met by Tier-1, Tier-2 & Tier-3 capital
36. In Indian scenario the Trading Book comprises
i) Securities under HFT category
ii) securities under AFS category
iii) Open forex operations
iv) Open gold position
v) Trading position in derivatives
vi) Derivatives for hedging trading positions
a) i), ii), and iv)
b) i), ii), iii) and iv)
c) i), ii), iii) and v)
d) all of the above
37 VaR measures the potential loss in market value
a) Under abnormal conditions
b) under market crisis situation
c) Under normal conditions
d) None of these
38. As per RBI guidelines on structural liquidity statement, the core portion of Cash Credit should be classified into time bucket of ____.
a) over 6 months to 1 year
b) 1 year to 3 years
c) 3 years to 5 years
d) over 5 years
39. As per RBI guidelines on structural liquidity statement, sub-standard assets should be classified into time bucket of ____.
a) over 6 months to 1 year
b) over 1 year to 3 years
c) over 3 years to 5 years
d) over 5 years
40. Short term Dynamic liquidity statement is drawn for
a) 1 – 14 days, 15-28 days
b) 1 – 14 days, 15-28 days, 29 to 90 days
c) 15-28 days, 29 to 90 days
d) 29 to 90 days
Other Parts
Risk Management Part 1
Risk Management Part 2
Risk Management Part 3
Risk Management Part 5
Risk Management Part 6
Risk Management Part 7
Risk Management Part 8
a) Total cash flow on account of interest till maturity of the bond.
b) The coupon rate of the bond.
c) The rate at which the PV of all cash flows equals the market price of the bond.
d) Total cash flow on account of interest and principal till maturity of the bond.
32. Macaulays Duration is expressed
a) in percentage
b) as an absolute number
c) in terms of years
d) none of these
33. If a bond has a modified duration of 2 and the change in yield is 50 basis points, what would be the change in price of the bond?
a) 1%
b) 2.5%
c) 0.5%
d) 2%
34. Price Volatility of a bond = (Yield volatility x ______ x Yield) / Price
a) Duration
b) modified duration
c) BPV
d) none of these
35. Capital requirement arising in respect of credit and counterparty risk
a) Should be at least met by Tier-1 capital up to 50%
b) Should be met by tier-1 capital
c) Should be met by Tier-1 & Tier-2 capital
d) Should be met by Tier-1, Tier-2 & Tier-3 capital
36. In Indian scenario the Trading Book comprises
i) Securities under HFT category
ii) securities under AFS category
iii) Open forex operations
iv) Open gold position
v) Trading position in derivatives
vi) Derivatives for hedging trading positions
a) i), ii), and iv)
b) i), ii), iii) and iv)
c) i), ii), iii) and v)
d) all of the above
37 VaR measures the potential loss in market value
a) Under abnormal conditions
b) under market crisis situation
c) Under normal conditions
d) None of these
38. As per RBI guidelines on structural liquidity statement, the core portion of Cash Credit should be classified into time bucket of ____.
a) over 6 months to 1 year
b) 1 year to 3 years
c) 3 years to 5 years
d) over 5 years
39. As per RBI guidelines on structural liquidity statement, sub-standard assets should be classified into time bucket of ____.
a) over 6 months to 1 year
b) over 1 year to 3 years
c) over 3 years to 5 years
d) over 5 years
40. Short term Dynamic liquidity statement is drawn for
a) 1 – 14 days, 15-28 days
b) 1 – 14 days, 15-28 days, 29 to 90 days
c) 15-28 days, 29 to 90 days
d) 29 to 90 days
Other Parts
Risk Management Part 1
Risk Management Part 2
Risk Management Part 3
Risk Management Part 5
Risk Management Part 6
Risk Management Part 7
Risk Management Part 8
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Risk Management
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