RISK Management Very important MCqs
01.ALM not responsible for: achieving budgets and targets (it helps in managing liquidity risk and interest rate risk).
02.At present banks are required to maintain capital adequacy ratio of 9% and Tier II capital should not be more than Tier I. It
means that banks are required to bring Tier I capital of at least 4.5% of the risk weighted assets. With effect from which date,
banks will be required to bring Tier I capital of 6% of the risk weighted assets?: 31't March 2010.
03.Documents not stamped properly is what kind of risk?: Legal Risk
04.For calculation of capital adequacy ratio, the risk weight for Commercial Real Estate for commercial bldg is : 100%
05.For capital adequacy purposes, risk weight for personal loans is : 125%
06.Fraud – what type of risk : Operational risk
07.General Insurance works on principle of: Spreading the Risk.
08. If an Outsourcing agency does not serve properly – which type of Risk is faced by the bank?: Reputation Risk and Operational
Risk
09. Investment in perpetual bonds is risky because: the interest is not payable if the CRAR falls below the stipulated target.
10.Legal risk is part of: operational risk.
11.Loss due to inadequacy or failure of system, process, people or due to external events is called: Operational risk
12.Risk weight for claim on Banks which complies to Min CRAR requirement : Scheduled Banks 20%
13.Risk weight for exposure to Scheduled Commercial Bank that maintains CRAR as per RBI requirement: 20%
14.Sub-prime is an risk. (Operational and Credit Risk)
15.The capital adequacy ratio is computed by the following formula: Capital/Risk Weighted Assets
16.Tier 2 - general provisioning & loss reserves only up to 1.25% of total risk weighted assets.
17.Tier I should be at least 6% of Risk weighted assets and should be achieved before by all scheduled commercial banks:
31.3.2010.
18.What are the components of credit risk?: Transaction risk or default risk and portfolio risk
19.When does liquidity risk arises?: Liquidity risk arises when maturing liabilities are more than maturing assets-
20.While doing Risk Rating, an asset is downgraded from A+ rating to A rating. What type of risk is involved: Credit Risk
01.ALM not responsible for: achieving budgets and targets (it helps in managing liquidity risk and interest rate risk).
02.At present banks are required to maintain capital adequacy ratio of 9% and Tier II capital should not be more than Tier I. It
means that banks are required to bring Tier I capital of at least 4.5% of the risk weighted assets. With effect from which date,
banks will be required to bring Tier I capital of 6% of the risk weighted assets?: 31't March 2010.
03.Documents not stamped properly is what kind of risk?: Legal Risk
04.For calculation of capital adequacy ratio, the risk weight for Commercial Real Estate for commercial bldg is : 100%
05.For capital adequacy purposes, risk weight for personal loans is : 125%
06.Fraud – what type of risk : Operational risk
07.General Insurance works on principle of: Spreading the Risk.
08. If an Outsourcing agency does not serve properly – which type of Risk is faced by the bank?: Reputation Risk and Operational
Risk
09. Investment in perpetual bonds is risky because: the interest is not payable if the CRAR falls below the stipulated target.
10.Legal risk is part of: operational risk.
11.Loss due to inadequacy or failure of system, process, people or due to external events is called: Operational risk
12.Risk weight for claim on Banks which complies to Min CRAR requirement : Scheduled Banks 20%
13.Risk weight for exposure to Scheduled Commercial Bank that maintains CRAR as per RBI requirement: 20%
14.Sub-prime is an risk. (Operational and Credit Risk)
15.The capital adequacy ratio is computed by the following formula: Capital/Risk Weighted Assets
16.Tier 2 - general provisioning & loss reserves only up to 1.25% of total risk weighted assets.
17.Tier I should be at least 6% of Risk weighted assets and should be achieved before by all scheduled commercial banks:
31.3.2010.
18.What are the components of credit risk?: Transaction risk or default risk and portfolio risk
19.When does liquidity risk arises?: Liquidity risk arises when maturing liabilities are more than maturing assets-
20.While doing Risk Rating, an asset is downgraded from A+ rating to A rating. What type of risk is involved: Credit Risk
No comments:
Post a Comment