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Long Quiz FRA - Finance and Risk Analytics - Great Learning
Long Quiz FRA - Finance and Risk Analytics - Great Learning
Course Content
Attempts : 1/1
Questions : 15
Time : 50m
Due Date : Nov 21, 11:00 PM
Instructions
Attempt History
Attempt #1
Marks: 30
Oct 24, 1:24 AM
Marks: 3/3
When you want to purchase a house, which of the following statements is true?
A high credit risk will give you the lowest interest rate
A low credit risk will give you the lowest interest rate You Selected
Q No: 2 Correct Answer
Marks: 3/3
All the following are required for credit loan except
Collateral
Personal information
Income information
Marks: 0/3
exchange rates
credit terms
Marks: 3/3
Define PD as the (expected) probability of default and LGD as the loss given default. Take
EAD, exposure at default, as fixed and ignore it. At a portfolio level, expected credit losses
are driven by:
PD only
neither of these
Marks: 3/3
1&2
1&3
1, 3 & 4
Marks: 0/2
The risk that a large number of counterparties share common risk Correct Option
characteristics.
There is a strong positive correlation in the historical behavior of credit sensitive assets
in a portfolio.
Marks: 2/2
If one accepts a ____ as a ____, the result will be ____ than expected ____. Which of the
following is correct?
Marks: 2/2
It is an evaluation of the price to charge a customer taking trade credit to reflect the
probability of default.
Marks: 2/2
1.99
Marks: 0/2
A data analyst fits a linear regression model to explain how CIBIL score predicts the outcome
of a loan approval process: whether the loan is approved or rejected. He uses the following
classification rule: If the estimated value of y (the response variable) is more than 0.5, the
corresponding loan is classified as 1; else, zero. Which of the following is true about the
model?
Marks: 3/3
Suppose the coefficients of a logistic regression model with two independent variables are as
follows: b0 = -6, b1 = 0, b2 = 1. b1 corresponds to x1 and b2 corresponds to x2. Assume that
you use a threshold of 0.5 for classification. Which of the following represents the correct
classification boundary?
y = 1 if x1 > 6
y = 1 if x1 < 6
y = 1 if x2 < 6
Marks: 3/3
30%
90%
0% You Selected
10%
Marks: 3/3
400
600
500
Marks: 3/3
Which of the following actions helps a consumer raise a low score or maintain a high one?
Make all loan payments on time
Marks: 0/3
Which of the following IS NOT one of the three major credit bureaus?
Experian
Equifax
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