Scribd
Upload
145 views

Module 2 Chap 2

The document appears to be a quiz on credit risk management taken by sanjeev kumar on the National Institute of Bank Management learning portal. It consisted of 10 multiple choice questions covering topics like parameters for assessing borrower credit risk, statistical models for credit scoring, Basel capital accord risk grades, and backtesting of credit scoring models. The quiz was completed in under 5 minutes with some questions answered correctly and others answered incorrectly or left unanswered.

Uploaded by

Sanjeev Kumar
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
145 views

Module 2 Chap 2

The document appears to be a quiz on credit risk management taken by sanjeev kumar on the National Institute of Bank Management learning portal. It consisted of 10 multiple choice questions covering topics like parameters for assessing borrower credit risk, statistical models for credit scoring, Basel capital accord risk grades, and backtesting of credit scoring models. The quiz was completed in under 5 minutes with some questions answered correctly and others answered incorrectly or left unanswered.

Uploaded by

Sanjeev Kumar
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 7

National Institute of

Bank Management

 sanjeev kumar

Welcome to Learning @ nibm

Page path

 Dashboard
 My courses
 RSK MGMT
 MODULE II : KEY RISKS AND THEIR MEASUREMENT - CREDIT RISK
 Chapter 2: Quiz

Started on Tuesday, 15 August 2023, 2:41 PM


State Finished

Completed on Tuesday, 15 August 2023, 2:46 PM

Time taken 4 mins 26 secs

Question 1
Correct
Mark 1.00 out of 1.00

Flag question
Question text
Which parameter would be most important when assessing a lower investment grade
borrower
Select one:
a. EAD
b. PD

c. LGD
d. Maturity
Feedback
The correct answer is: LGD

Question 2
Correct
Mark 1.00 out of 1.00

Flag question
Question text
Which one of the following is not a parameter for facility rating
Select one:
a. Guarantees
b. Management
c. Collateral
d. Covenants
Feedback
The correct answer is: Management

Question 3
Incorrect
Mark 0.00 out of 1.00

Flag question
Question text
Which parameter is usually given the highest weightage in judgemental scoring methods
practiced in banks in India
Select one:
a. Business risk

b. Industry risk
c. Management risk
d. Financial risk
Feedback
The correct answer is: Financial risk

Question 4
Incorrect
Mark 0.00 out of 1.00

Flag question
Question text
Apart from discriminant analysis, which other statistical method can be used to arrive at
credit scoring of borrowers
Select one:

a. Regression analysis
b. Correlation analysis
c. Analysis of variance
d. Logistic regression analysis
Feedback
The correct answer is: Logistic regression analysis

Question 5
Incorrect
Mark 0.00 out of 1.00

Flag question
Question text
As per Basel norms, how many standard grades must a bank have
Select one:

a. 3
b. 10
c. 5
d. 7
Feedback
The correct answer is: 7

Question 6
Not answered
Marked out of 1.00

Flag question
Question text
The new Z score default prediction model for Indian firms is based on
Select one:
a. Four ratios
b. Five ratios
c. Three ratios
d. Six ratios
Feedback
The correct answer is: Five ratios

Question 7
Not answered
Marked out of 1.00

Flag question
Question text
Which of the following ratios has the highest weightage in the Altmann's Z score model
Select one:
a. Net working capital to Total assets
b. Operating profit to Total assets
c. Sales to Total assets
d. Cash profit to Total assets
Feedback
The correct answer is: Operating profit to Total assets

Question 8
Not answered
Marked out of 1.00

Flag question
Question text
If the Z value for a borrower is equal to zero, then the 1-year default rate would be
Select one:
a. 1%
b. 0%
c. 10%
d. 100%
Feedback
The correct answer is: 100%

Question 9
Not answered
Marked out of 1.00

Flag question
Question text
Backtesting of a credit scoring model developed on a test population of retail borrowers
involves
Select one:
a. Compare the projections made with actual data for a set of samples from the same population
b. Compare the projections made with actual data for a set of samples from a different population
c. Compare the projections made with the entire set of data a different population
d. Compare the projections made with the entire set of data for the same population
Feedback
The correct answer is: Compare the projections made with actual data for a set of samples from
the same population

Question 10
Not answered
Marked out of 1.00

Flag question
Question text
A credit scoring model used for retail loans in a bank can be backtested by
Select one:
a. External auditors
b. The bank itself
c. Reserve Bank
d. Rating agencies
Feedback
The correct answer is: The bank itself
Finish review
BACK
https://www.nibmindia.org/ E-mail: [email protected]

You might also like