National Institute of

Bank Management

Dashboard  My courses  RSK MGMT  MODULE I : BASIC UNDERSTANDING OF BANKING RISK  Chapter 1 : Quiz

Started on Tuesday, 15 November 2022, 10:22 PM

State Finished
Completed on Tuesday, 15 November 2022, 10:41 PM
Time taken 18 mins 39 secs

Question 1 Correct Mark 1.00 out of 1.00

The Basic Indicator Approach used for calculating Operational Risk considers Gross Income as
average of previous

Select one:
a. 7 years
b. 3 years
c. 5 years
d. 4 years

Question 2 Correct Mark 1.00 out of 1.00

A bank which is unable to meet its financial commitments on time due to unexpected cash
outflow, is facing the risk called

Select one:
a. Market risk
b. Liquidity risk
c. Reputation Risk
d. Operational Risk
Question 3 Correct Mark 1.00 out of 1.00

Which one off the following drivers of risk is dependent on incident of default?

Select one:
a. Probability of default
b. Loss given default
c. Maturity
d. Exposure at default

Question 4 Incorrect Mark 0.00 out of 1.00

Economic capital is determined by measuring

Select one:
a. Extreme loss
b. Unexpected loss
c. Tail loss
d. Expected loss

Question 5 Correct Mark 1.00 out of 1.00

Hirschmann Herfindahl Index, Gini Coefficient, Theill Inequality Indexes are all measures of

Select one:
a. Liquidity risk
b. Operational risk
c. Strategic risk
d. Concentration risk
Question 6 Correct Mark 1.00 out of 1.00

The regulatory capital for Rs 100 crore loan having a risk weight of 30% would be

Select one:
a. Rs 1.0 crore
b. Rs 2.7 crore
c. Rs 3.0 crore
d. Rs 30.0 crore

Question 7 Correct Mark 1.00 out of 1.00

The Basel II Advanced Management Approach (AMA) to estimating risk capital is related to

Select one:
a. Operational risk
b. Market risk
c. Reputational risk
d. Credit risk

Question 8 Correct Mark 1.00 out of 1.00

Which one of the following risk variables specifically refers to the probability of insolvency

Select one:
a. Confidence level
b. Exposure at default
c. Probability of default
d. Loss given default
Question 9 Correct Mark 1.00 out of 1.00

The level of economic capital required by a bank is determined by

Select one:
a. The bank itself
b. The registrar of companies
c. The government
d. The banking regulator

Question 10 Correct Mark 1.00 out of 1.00

Which one of the following losses are expected to be covered through pricing and provisions?

Select one:
a. Expected loss
b. Unexpected loss
c. Tail loss
d. Extreme loss