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 RSK MGMT
 MODULE II : KEY RISKS AND THEIR MEASUREMENT - CREDIT RISK
 Chapter 3: Quiz

Started on Tuesday, 15 August 2023, 9:06 PM

State Finished

Completed on Tuesday, 15 August 2023, 9:13 PM

Time taken 6 mins 56 secs

Question 1
Incorrect
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Question text
Transition matrix provided by rating companies usually has a time horizon of
Select one:
a. 2 year
b. 1 year

c. 3 year
d. 5 year
Feedback
The correct answer is: 1 year

Question 2
Correct
Mark 1.00 out of 1.00
 Flag question
Question text
During down-time of the economic cycle, which one of the following holds true
Select one:
a. TTC.PD > PIT.PD > Hyrbid.PD
b. PIT.PD > Hybrid.PD > TTC.PD

c. TTC.PD > Hybrid.PD > PIT.PD

d. Hybrid.PD > TTC.PD > PIT.PD
Feedback
The correct answer is: TTC.PD > Hybrid.PD > PIT.PD

Question 3
Incorrect
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Question text
How many years of rating history is needed by banks to estimate Basel compliant stable
PDs.
Select one:
a. 10 years

b. 15 years
c. 3 years
d. 5 years
Feedback
The correct answer is: 10 years

Question 4
Correct
Mark 1.00 out of 1.00

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Question text
Historical loss rates for a bank can be determined from the annual report data on
Select one:

a. Write offs
b. NNPA
c. GNPA
d. Provisions
Feedback
The correct answer is: Write offs

Question 5
Incorrect
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Question text
Which one of the following rating migration would have the sharpest decline in rating
stability
Select one:
a. AAA to AA
b. BBB to BB
c. AA to A

d. A to BBB
Feedback
The correct answer is: AAA to AA

Question 6
Incorrect
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Question text
How many years estimates of risk does marginal PD provides
Select one:
a. 3 year
b. 1 year

c. 2 year
d. 5 year
Feedback
The correct answer is: 1 year

Question 7
Incorrect
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Question text
The graph of cumulative PD withh time is usually
Select one:
a. Stable
b. Volatile
c. Rising

d. Falling
Feedback
The correct answer is: Rising

Question 8
Correct
Mark 1.00 out of 1.00

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Question text
The graph of marginal PD withh time is usually
Select one:
a. Volatile

b. Falling
c. Stable
d. Rising
Feedback
The correct answer is: Falling

Question 9
Correct
Mark 1.00 out of 1.00

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Question text
Pooled PD refer to probability of default determined for
Select one:
a. All the years for a loan pooled together

b. A particular loan segment pooled together

c. Entire loan book pooled together
d. All the years remaining for a loan pooled together
Feedback
The correct answer is: A particular loan segment pooled together

Question 10
 Correct
Mark 1.00 out of 1.00

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Question text
A rating transition matrix requires data for a minimum of
Select one:
a. 1 year

b. 2 year
c. 5 year
d. 3 year
Feedback
The correct answer is: 2 year
Finish review
https://www.nibmindia.org/ E-mail: learning@nibmindia.org

 Dashboard
 My courses
 RSK MGMT
 MODULE II : KEY RISKS AND THEIR MEASUREMENT - CREDIT RISK
 Chapter 3: Quiz

Started on Tuesday, 15 August 2023, 9:06 PM

State Finished

Completed on Tuesday, 15 August 2023, 9:13 PM

Time taken 6 mins 56 secs

Question 1
Incorrect
Mark 0.00 out of 1.00
 Flag question
Question text
Transition matrix provided by rating companies usually has a time horizon of
Select one:
a. 2 year
b. 1 year

c. 3 year
d. 5 year
Feedback
The correct answer is: 1 year

Question 2
Correct
Mark 1.00 out of 1.00

Flag question
Question text
During down-time of the economic cycle, which one of the following holds true
Select one:
a. TTC.PD > PIT.PD > Hyrbid.PD
b. PIT.PD > Hybrid.PD > TTC.PD

c. TTC.PD > Hybrid.PD > PIT.PD

d. Hybrid.PD > TTC.PD > PIT.PD
Feedback
The correct answer is: TTC.PD > Hybrid.PD > PIT.PD

Question 3
Incorrect
Mark 0.00 out of 1.00
 Flag question
Question text
How many years of rating history is needed by banks to estimate Basel compliant stable
PDs.
Select one:
a. 10 years

b. 15 years
c. 3 years
d. 5 years
Feedback
The correct answer is: 10 years

Question 4
Correct
Mark 1.00 out of 1.00

Flag question
Question text
Historical loss rates for a bank can be determined from the annual report data on
Select one:

a. Write offs
b. NNPA
c. GNPA
d. Provisions
Feedback
The correct answer is: Write offs

Question 5
Incorrect
Mark 0.00 out of 1.00

Flag question
Question text
Which one of the following rating migration would have the sharpest decline in rating
stability
Select one:
a. AAA to AA
b. BBB to BB
c. AA to A

d. A to BBB
Feedback
The correct answer is: AAA to AA

Question 6
Incorrect
Mark 0.00 out of 1.00

Flag question
Question text
How many years estimates of risk does marginal PD provides
Select one:
a. 3 year
b. 1 year

c. 2 year
d. 5 year
Feedback
The correct answer is: 1 year

Question 7
Incorrect
Mark 0.00 out of 1.00

Flag question
Question text
The graph of cumulative PD withh time is usually
Select one:
a. Stable
b. Volatile
c. Rising

d. Falling
Feedback
The correct answer is: Rising

Question 8
Correct
Mark 1.00 out of 1.00

Flag question
Question text
The graph of marginal PD withh time is usually
Select one:
a. Volatile

b. Falling
c. Stable
d. Rising
Feedback
The correct answer is: Falling

Question 9
Correct
Mark 1.00 out of 1.00

Flag question
Question text
Pooled PD refer to probability of default determined for
Select one:
a. All the years for a loan pooled together

b. A particular loan segment pooled together

c. Entire loan book pooled together
d. All the years remaining for a loan pooled together
Feedback
The correct answer is: A particular loan segment pooled together

Question 10
Correct
Mark 1.00 out of 1.00

Flag question
Question text
A rating transition matrix requires data for a minimum of
Select one:
a. 1 year

b. 2 year
c. 5 year
d. 3 year
Feedback
The correct answer is: 2 year
Finish review
https://www.nibmindia.org/ E-mail: learning@nibmindia.org