Risk Management Quiz 5th May 2024 Lecture

Which of the following is NOT a major commodity exchange in India?

• Multi Commodity Exchange of India (MCX)

• National Commodity and Derivatives Exchange (NCDEX)

• Bombay Stock Exchange (BSE)

• Indian Commodity Exchange (ICEX)

What is Monte Carlo simulation primarily used for?

• Predicting future stock prices

• Simulating random events using probability distributions

• Solving complex mathematical equations

• Analyzing historical data trends

Which of the following is NOT a primary objective of Enterprise Risk Management (ERM)?

• Identify and assess potential threats to the organization's goals.

• Develop and implement strategies to mitigate or avoid risks.

• Improve communication and collaboration across different departments regarding risk.

• Maximize risk-taking opportunities for increased profits.

Which of the following best describes systematic risk?

• Risk specific to a particular company or industry

• Risk that can be diversified away through portfolio diversification

• Risk inherent to the entire market or a specific market segment

• Risk associated with changes in government regulations

Which of the following best describes derivatives?

• Investments in physical assets

• Financial instruments whose value is derived from an underlying asset

• Government-issued securities

• Insurance policies

Global Financial Crisis caused in the year__________

• 1929

• 1990

• 2007

• 2020

Risk mitigation is defined as the process of __ risk

• development

• management

• reducing

• implementing

What is credit risk?

• The risk of market volatility affecting credit ratings

• The risk of loss from borrower or counterparty default

• The risk of currency exchange rate fluctuations

• The risk of interest rate changes

Basel norms guide formulated by

• BIS

• group of central bank

• RWA

• RBI

Currency swap is a method of

• hedging against foreign exchange risk

• speculating in foreign exchange

• leverage instrument used by cooperative banks

• Payment in international trade.