wayground logo

Free Printable Worksheets

NEW

Font size

S
M
L
XL
Worksheets

Credit Risk & Management

Total questions: 15

Worksheet time: 11mins

Name
Class
Date
1.

Which among the following suits most the description "Possibility of Losses associated with the Credit quality of a Borrower" ?

a)

Funding Risk

b)

Call Risk

c)

Basis Risk

d)

Credit Risk

2.

Which among the following is a tool to measure the Credit Risk embedded in a loan asset ?

a)

Invocation of Insurance

b)

Credit Risk Rating

c)

Loan Pricing

d)

None of the above

3.

Which among the following is a Credit Risk Mitigant ?

a)

Pricing of Loan assets

b)

Legal Action

c)

Insurance of assets

d)

None of the above.

4.

One of your Borrower Customer failed to service monthly interest in his working capital account. Which among the following is correct about the type of risk the Bank is facing in this context ? 

a)

Fraud Risk

b)

Interest Rate Risk

c)

Market Risk

d)

Credit Risk

5.

Which among the following is a not a Credit Risk ?

a)

Default Risk

b)

Counterparty Risk

c)

Fraud Risk

d)

Portfolio Risk

6.

Which among the following is part of the building blocks of an effective Credit Risk Management in a Bank ?

a)

Organisational Structure

b)

Operations & Systems

c)

Policy and Strategy

d)

All of these

7.

Which among the following is NOT a Credit Risk Rating Agency in India ?

a)

CRISIL Ltd

b)

ICRA Ltd

c)

Equifax

d)

SMERA

8.

Which among the following is not a Parameter used for Credit Risk Rating architecture ? 

a)

Industry Risk

b)

Basis Risk

c)

Business Risk

d)

Management Risk

9.

In working capital accounts which among the given ratios is used to assess Financial Risk ?

a)

Debt Equity Ratio

b)

Debt Service Coverage Ratio

c)

Current Ratio

d)

All of the Above

10.

Which among the following is not a Credit Information Company in India ?

a)

CIBIL

b)

Moodys

c)

Experian

d)

Equifax

11.

Reputation and Standing of a Promoter is assessed as part of which Parameter under Credit Risk Rating ?  

a)

Management Risk

b)

Industry Risk

c)

Business Risk

d)

Financial Risk

12.

Which among the following is not a Credit Risk Mitigant ?

a)

ECGC Guarantee

b)

Insurance of Assets

c)

Collaterals

d)

Pricing of Loan assets

13.

Which among the following is not a Domestic Credit Rating Agency in India ?

a)

Standard and Poor's

b)

Brickwork Ratings

c)

CRISIL Ltd

d)

ICRA Ltd

14.

As per Regulatory Guidelines, upto which level in a Rating Scale, the rating shall represent an acceptable level of Credit Risk ?

a)

Levels 1 to 3

b)

Levels 1 to 4

c)

Levels 1 to 5

d)

Levels 1 to 7

15.

Rules of Delegation in a Bank's Credit Policy represents one among the following. Identify ?

a)

Powers to sanction Loans by various functionaries

b)

Loan Monitoring Mechanism

c)

Exposure Levels

d)

Risk Rating Architecture