caiibmocktest.in

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Question 1 reset

Interest rate risk is a type of

Credit risk

Market risk

Question 2 reset

A bank funds its assets from a pool of composite liabilities. Apart from credit and operational risks, it faces

Basis risk

Mismatch risk

Question 3 reset

Deregulated environment has narrowed spreads of the banks.

True

False

Question 4 reset

Net interest margin is also known as 'Spread'.

True

False

Question 5 reset

Net Interest Margin is defined as net interest income divided by

Average total Assets

Average Total Liabilities

Question 6 reset

Changes in interest rates also affect the underlying value of the bank's

Asset

Liabilities

Both the above

Question 7 reset

Mismatch occurs when assets and liabilities fall due for _________ in different periods.

ALM

Re-pricing

Question 8 reset

The economic value of a bank can be viewed as the present value of the bank 's expected

Gross Profit

Gross Revenue

Net Cash Flows

Question 9 reset

Premature payment of a term loan will result in interest rate risk of which type?

Basis risk

Yield curve risk

Embedded option risk

Question 10 reset

The Institution is in a position to benefit from rising interest rate when assets are ______ than liabilities.

greater

lower

Time Over