National Institute of

Bank Management

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

Started on Tuesday, 24 January 2023, 9:19 PM

State Finished
Completed on Tuesday, 24 January 2023, 9:22 PM
Time taken 3 mins 9 secs

Question 1 Incorrect Mark 0.00 out of 1.00

Risk emerging due to correlation of rates earned and paid on products with otherwise similar
repricing characteristics is called as

Select one:
a. Basis risk
b. Liquidity risk
c. Optionality risk
d. Repricing risk

Question 2 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. Extreme loss
b. Unexpected loss
c. Expected loss
d. Tail loss
Question 3 Correct Mark 1.00 out of 1.00

Which one of the following is not related to market risk?

Select one:
a. Term loan products
b. Fixed income products
c. Equity products
d. Commodities products

Question 4 Correct Mark 1.00 out of 1.00

Which one of the following is not a business line for determining operational risk under Basel II
BI approach

Select one:
a. Asset management
b. Retail banking
c. General insurance
d. Corporate finance

Question 5 Incorrect Mark 0.00 out of 1.00

For a highly reputed AAA rated bank, the economic capital is likely to be

Select one:
a. Less than regulatory capital
b. Greater than regulatory capital
c. Unrelated to regulatory capital
d. Equal to regulatory capital
Question 6 Incorrect Mark 0.00 out of 1.00

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

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

Question 7 Incorrect Mark 0.00 out of 1.00

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

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

Question 8 Incorrect Mark 0.00 out of 1.00

Economic capital is determined by measuring

Select one:
a. Unexpected loss
b. Extreme loss
c. Expected loss
d. Tail loss
Question 9 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. Operational Risk
b. Reputation Risk
c. Liquidity risk
d. Market risk

Question 10 Incorrect Mark 0.00 out of 1.00

For which one of the following is exposure risk well defined

Select one:
a. letter of credit
b. cash credit
c. Derivative
d. Term loan