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

a. Concentration risk b. Strategic risk

c. Operational risk d. Liquidity risk

Economic capital is determined by measuring

a. Extreme loss b. Unexpected loss

c. Tail loss d. Expected loss

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

a. Reputation Risk b. Operational Risk

c. Market risk d. Liquidity risk

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

a. Exposure at default b. Confidence level

c. Loss given default d. Probability of default

For which one of the following is exposure risk well defined

a. letter of credit b. Derivative

c. Term loan d. cash credit

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

a. Retail banking b. Asset management

c. General insurance d. Corporate finance

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

a. Extreme loss b. Expected loss

c. Unexpected loss d. Tail loss

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

a. 7 years b. 5 years

c. 4 years d. 3 years

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

a. Rs 30.0 crore b. Rs 2.7 crore

c. Rs 1.0 crore d. Rs 3.0 crore

The Basel II Advanced Management Approach (AMA) to estimating risk capital is related to
 a. Operational risk b. Reputational risk

c. Credit risk d. Market risk

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

a. Equity products b. Fixed income products

c. Commodities products d. Term loan products

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

a. Less than regulatory capital b. Greater than regulatory capital

c. Unrelated to regulatory capital d. Equal to regulatory capital

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

a. The bank itself b. The banking regulator

c. The registrar of companies d. The government

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

a. Optionality risk b. Liquidity risk

c. Repricing risk d. Basis risk

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

a. Unexpected loss b. Tail loss

c. Extreme loss d. Expected loss

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

a. The banking regulator b. The government

c. The bank itself d. The registrar of companies

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

a. Retail banking b. General insurance

c. Asset management d. Corporate finance

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

a. Reputation Risk b. Market risk

c. Liquidity risk d. Operational Risk

Module 1, Chapter – 2
Which one of the following is the value of intercept in the regression equation: y
= 2.13 + 0.43 x1 + 1.15 x2 - 7.06 x3
a. 0.43

b. 1.15

c. -7.06

d. 2.13

In a binomial distribution, the maximum number of values that the probability of

ocurrence of an event can have is

a. 0

b. 1

c. 3

d. 2

If a portfolio of stocks has a one-day 5% VaR of Rs 10 million, a loss of Rs 10

million or more on this portfolio is expected on

a. 1 day out of 10 days

b. 1 day out of 50 days

c. 1 day out of 20 days

d. 1 day out of 100 days

In a normal distribution the notation mu stands for

a. Kurtosis

b. Mean

c. Standard deviation

d. Variance

Which one of the following values of Gini Coefficient indicates a highly unequal
distribution

a. 0

b. 2

c. 3

d. 1

The probability of default of any two unrelated accounts A and B, having

individual probability of default as 2% and 5% respectively, is
Select one:

a. 2%
b. 5%

c. 7%

d. 3%

In a Poission distribution

a. Mean is not related to variance

b. Mean is less than variance

c. Mean is equal to variance

d. Mean is greater than variance

If two events A and B are independent, their correlation coefficient (r) will be:

a. Positive

b. Infinity

c. Negative

d. Zero

Which of the following property is associated with normal distribution

a. Positive Skeweness

b. Zero Skewness

c. Negative Skewness

d. Infinite Skewness

The probability of an event occurring given that another event has already
occurred is called as

a. Complementary probability

b. Joint probability

c. Conditional probability

d. Connected probability

T test is used to test the difference between

a. Means of two different groups

b. Variances of two different groups

c. Variances of more than two different groups

d. Means of more than two different groups

If the occurrence of one event is not influenced by the occurrence of another
event than the events are said to be

a. Mututally Non Exclusive

b. Mutually exclusive

c. Conditional Event

d. Independent

Which one of the following values represents the range in a distribution of data

a. Mean - Min

b. Max - Mean

c. Max - Mean/2

d. Max – Min

Which one of the following statistical techniques is used to study causal

relationships between variables

a. Regression

b. Correlation

c. Anova

d. T test

The probability of occurrence of any of two mutually exclusive events having

individual probability of Pa and Pb is

a. Pb

b. Pa + Pb

c. Pa - Pb

d. Pa