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WorksheetsFinance 1
Total questions: 19
Worksheet time: 11mins
Which term refers to the potential for a portfolio's heavy concentration in a specific asset or sector to result in significant losses?
Credit Risk
Market risk
Liquidity risk
Concentration risk
Which term refers to the potential for changes in interest rates to impact the value of investments or the cost of borrowing?
Credit risk
Market risk
Liquidity risk
Interest rate risk
Which term refers to the potential for a lack of marketability or difficulty in converting an investment into cash without causing significant price discounts?
Credit risk
Market risk
Liquidity risk
Concentration risk
Which term refers to the potential for poor decision-making practices to adversely affect the performance and stability of a credit union?
Management risk
Concentration risk
Credit risk
Capital risk
What risk refers to the potential for losses due to insufficient reserves to absorb unexpected losses or economic downturns.
Credit risk
Liquidy risk
Market risk
Capital risk
Which term refers to the potential for borrowers to default on their loans, resulting in financial losses?
Management risk
Credit risk
Capital risk
Liquidity risk
True or False: An income statement shows a company's financial performance over a period, while a balance sheet presents its financial position at a specific point in time.
False
True
On which statement would you find the total balances on credit cards?
Balance sheet
Income statement
On which statement would you find out how much money you made on your auto loan portfolio?
Income statement
Balance sheet
What are other terms for networth? Select all the apply.
Asset
Equity
Retained earnings
Capital
What are the 5 levers of a spread analysis? Select all that apply.
Interest income
Operating expenses
Provision for loan loss
Interest expense
Other income/expense
True or false: Ratios are useful beacuse they allow you to compare different CU's or your own CU over time regardless of size or growth.
False
True
What are the 3 corners to financial triangle?
Net worth
Asset growth
Key ratio
ROA
Networth goes up or down if grow assets?
Stays the same
Down
Up
It depends
Networth goes up or down if we make money?
I need more information
Stays the same
Up
Down
What does the acronym CAMELS stand for when referring to the Camel Rating system?
Capital adequacy, Asset quality, Management capability, Earnings, Liquidity & Asset/Liability Management (ALM), Sensitivity to market risk.
Creditworthiness, Asset valuation, Management effectiveness, Earnings performance, Liability structure, Systemic risk.
Compliance, Audit quality, Management expertise, Efficiency, Loan portfolio quality, Sustainability.
Customer satisfaction, Asset allocation, Market share, Earnings potential, Liability management, Strategic planning.
Networth ÷ Assets =
(a)
Liabilities + Equity =
Stuff
Assets
Networth
Net income
True or false: revenue - expenses = net income
True
False
