• Banking Quiz – 7

    61 Which is the most widely used method to calculate credit risk?
      A) Internal Rating Based Approach
      B) Standardized Approach
      C) Advanced Internal Rating Based Approach
      D) None of These
    62 Which in the list is among the 3 pillars of Basel 2?
      A) Risk Management
      B) Supervisory Review
      C) Minimum Capital Requirements
      D) Market Discipline
    63 Which type of loan allows borrower to borrow again within the credit limit without full loan/credit appraisal process?
      A) Syndicated loan
      B) Term Loan
      C) Revolving Loan
      D) None of These
    64 Which is not a term deposit account?
      A) Current Account
      B) Fixed Deposits
      C) Certificate of Deposits (CD)
      D) Retirement accounts
    65 Which not-for-profit financial cooperative offer personal loans and other consumer banking services mainly to the needy and poor persons?
      A) Commercial Banks
      B) Savings and Loan Associations
      C) Credit Unions
      D) Central Bank
    66 Which in the list does not fall under Five C’s of Credit?
      A) Cash Flow
      B) Collateral
      C) Capital
      D) Credit Rating
    67 In which prepayment option, most of the prepayment is done on the maturity of the loan?
      A) Stepped Up Installments
      B) Equal Periodic Installments
      C) Bullet Repayment
      D) Deferred Repayment
    68 Which in the list is not a market risk from a bank’s point of view?
      A) Credit Risk
      B) Interest Rate Risk
      C) Inflation Risk
      D) Foreign Currency Risk
    69 “Legal or compliance error” comes under?
      A) operational risk
      B) Credit risk
      C) market risk
      D) None of These
    70 Diversification of risk through investment in multiple asset classes comes under?
      A) Risk transfer strategy
      B) Risk Mitigation Strategy
      C) Risk Avoidance Strategy
      D) None of These


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