National Institute of

Bank Management

Dashboard  My courses  RSK MGMT  MODULE III: MANAGEMENT OF RISK IN BANK PORTFOLIOS - CREDIT RISK
 Chapter 3: Quiz

Started on Friday, 24 February 2023, 2:37 PM

State Finished
Completed on Friday, 24 February 2023, 2:54 PM
Time taken 17 mins 26 secs

Question 1 Correct Mark 1.00 out of 1.00

Transition matrix is useful in

Select one:

a. loan sanctioning

b. EAD calculation

c. in LGD calculation

d. loan monitoring

The correct answer is: loan monitoring

Question 2 Correct Mark 1.00 out of 1.00

Correlation risk adds to

Select one:

a. Loss Given Default

b. Portfolio Expected Loss

c. Average Loss

d. Portfolio Unexpected Loss

The correct answer is: Portfolio Unexpected Loss

Question 3 Incorrect Mark 0.00 out of 1.00

Concentration Risk is higher for exposures to

Select one:

a. Residential Mortgage Sector

b. Cyclical Large Industries

c. Commercial Real Estate Sector

d. Credit Card Segment

The correct answer is: Cyclical Large Industries

Question 4 Incorrect Mark 0.00 out of 1.00

HHI is a measure of

Select one:

a. Residual risk

b. Pillar II risk

c. Pillar III risk

d. Pillar I risk

The correct answer is: Pillar II risk

Question 5 Incorrect Mark 0.00 out of 1.00

If Portfolio Quality Deteriorates, credit RWA will

Select one:

a. Decrease

b. not change

c. Cannot be defined

d. Increase

The correct answer is: Increase

Question 6 Correct Mark 1.00 out of 1.00

Prudential Concentration Limit for Individual Borrower is set by RBI at what % of Capital Funds?

Select one:

a. 15%

b. 20%

c. 10%

d. 40%

The correct answer is: 15%

Question 7 Correct Mark 1.00 out of 1.00

If loan exposures are divided in Six sectors in the ratio of 4:2:1:1:1:1, find the HHI of the portfolio of
the sector would reflect:

Select one:

a. Perfectly Diversified

b. Very high Concentration

c. Modate Concentration

d. Low Concentration

The correct answer is: Modate Concentration

Question 8 Incorrect Mark 0.00 out of 1.00

Which risk cannot be fully diversified

Select one:

a. Management Risk

b. Systematic Risk

c. Idiosyncratic Risk

d. Industry specific risk

The correct answer is: Systematic Risk

Question 9 Correct Mark 1.00 out of 1.00

Lorenz curve is a measure of

Select one:

a. Operational Risk

b. Strategic Risk

c. Concentration Risk

d. Reputation Risk

The correct answer is: Concentration Risk