12/10/23, 6:41 PM Self-Quiz Unit 4: Attempt review | Home

Started on Sunday, 10 December 2023, 10:35 AM

State Finished
Completed on Sunday, 10 December 2023, 10:41 AM
Time taken 5 mins 23 secs
Marks 4.00/5.00
Grade 8.00 out of 10.00 (80%)

Question 1
Correct
Mark 1.00 out of 1.00

True or False? Credit risk is the chance that a borrower will default on a loan by not fully meeting stipulated payments on time.

Select one:
True 
False

Question 2
Incorrect
Mark 0.00 out of 1.00

True or False? Lobbying is a type of innovation where bankers and other financiers try to change regulations.

Select one:
True
False 

Question 3
Correct
Mark 1.00 out of 1.00

True or False? Off-balance sheet activities help banks manage their interest rate risk.

Select one:
True 
False

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12/10/23, 6:41 PM Self-Quiz Unit 4: Attempt review | Home

Question 4
Correct
Mark 1.00 out of 1.00

Banks have sufficient net worth or equity capital to maintain a cushion against bankruptcy or regulatory attention but not so much that
the banks are unprofitable . This trade-off is called:

Select one:
a. Liquidity management
b. Capital adequacy management 
c. Asset management

Question 5
Correct
Mark 1.00 out of 1.00

Duration gap is used by banks to:

Select one:
a. measure the credit risk
b. measure the technology risk
c. measure their risk due to changes in the inflation
d. measure their risk due to changes in the interest rates 

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