National Institute of

Bank Management

Dashboard  My courses  RSK MGMT  MODULE II : KEY RISKS AND THEIR MEASUREMENT - CREDIT RISK  Chapter 6:
Quiz

Started on Wednesday, 25 January 2023, 7:13 AM

State Finished
Completed on Wednesday, 25 January 2023, 7:15 AM
Time taken 1 min 46 secs

Question 1 Correct Mark 1.00 out of 1.00

Hit rate in classification test for model validation refers to a

Select one:
a. Correct rejection
b. Incorrect prediction
c. Incorrect rejection
d. Correct prediction

The correct answer is: Correct prediction


Question 2 Correct Mark 1.00 out of 1.00

A false alarm in prdicting default occurs when

Select one:
a. A predicted non default borrowers does not default
b. A predicted default borrowers does not default
c. A predicted non default borrower actually defaults
d. A predicted default borrower actually defaults

The correct answer is: A predicted default borrowers does not default

Question 3 Correct Mark 1.00 out of 1.00

A Type I error in prdicting default occurs when

Select one:
a. A predicted non default borrower actually defaults
b. A predicted non default borrowers does not default
c. A predicted default borrowers does not default
d. A predicted default borrower actually defaults

The correct answer is: A predicted non default borrower actually defaults

Question 4 Incorrect Mark 0.00 out of 1.00

The abbreciation ROC in ROC Curve stands for

Select one:
a. Risk Operating Categories
b. Rated Operating Classification
c. Reciever Operating Characteristics
d. Residual Operating Curve

The correct answer is: Reciever Operating Characteristics 

Question 5 Incorrect Mark 0.00 out of 1.00

In a ROC model, if the area between model CAP and random model is 0.35 and the area above
model CAP is 0.14, the accuracy ratio (AR)

Select one:
a. 0.71
b. 0.35
c. 1.00
d. 0.14

The correct answer is: 0.71

Question 6 Correct Mark 1.00 out of 1.00

The X axis of the CAP represents

Select one:
a. Cumulative percentage of good borrowers
b. Cumulative percentage of rated borrowers
c. Cumulative percentage of defaulted borrowers
d. Cumulative percentage of all borrowers

The correct answer is: Cumulative percentage of rated borrowers

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Question 7 Correct Mark 1.00 out of 1.00

The Y axis of the CAP represents

Select one:
a. Cumulative percentage of good borrowers
b. Cumulative percentage of defaulted borrowers
c. Cumulative percentage of all borrowers
d. Cumulative percentage of rated borrowers

The correct answer is: Cumulative percentage of defaulted borrowers

Question 8 Correct Mark 1.00 out of 1.00

The abbreciation CAP in CAP Curve stands for

Select one:
a. Credit Assessment Profile
b. Capital Adequacy Profile
c. Cumulative Accuracy Profile
d. Characteristic Asset Profile

The correct answer is: Cumulative Accuracy Profile

Question 9 Correct Mark 1.00 out of 1.00

The ROC curve is a plot of following variables

Select one:
a. Hit rate and Miss rate
b. Hit rate and False alarm rate
c. Miss rate and Correct rejection rate
d. Miss rate and False alarm rate

The correct answer is: Hit rate and False alarm rate 