1) The possibility that third world countries might renege on their debts
2) The possibility of contagion of banks
3) The division of responsibilities among national supervisory authorities
4) The off-balance-sheet activities of banks
5) The capital adequacy of banks
Answer-3
Q2. A problem with risk-weighted capital asset ratios is that they:
1) Do not take into account off-balance-sheet business
2) Are too complex to calculate
3) Put too much pressure on the profitability of banks
4) Are generally set too low
5) Do not weight risks accurately
Answer-1
Q3. The new Basel Capital Accord is likely to improve the competitive position of:
1) Banks that maintain a high risk-weighted capital asset ratio
2) The British financial industry
3) Universal banks
4) Big banks with sophisticated risk management systems
5) Small banks
Answer-4
Q4. Basel II accord is mostly concerned with:
1) Central vigilance commission
2) Non performing assets
3) Capital adequacy ratio
4) Foreign direct investment
5) None of the above
Answer-3
Q5. The Assets Liabilities committee in a bank makes the assessment of:
1) Liquidity risk
2) Credit risk
3) Operations risk
4) All the above
5) None of the above
Answer-1
Q6. Which of the following options best defines the risk?
1) Loss occurred due to happening of an event
2) Loss occurred due to non-happening of an event
3) Risk experienced due to uncertainty
4) Probability of loss due to uncertainty
5) None of the above
Answer-4
Q7. Which of the following is not included in three pillars of BASEL capital accord?
1) Minimum capital requirement
2) Supervisory review
3) Market discipline
4) Core banking solution
5) None of the above
Answer-4
Q8. The bulk of the nation's money supply is created within the private banking system and is sometimes called:
1) Inside money
2) Net money
3) Base money
4) Outside money
5) Reserve money
Answer-3
Q9. What does NSFR stands for-
1) New Stable Funding Ratio
2) Net Stable Funding Ratio
3) Net Static Funding Ratio
4) New Stable Funding Rate
5) Net Static Funding Rate
Answer-2
Q10. Which of the following was selected as a D-SIB by RBI?
1) Axis Bank
2) BOB
3) PNB
4) HDFC
5) SBI
Answer-5
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