FIN625 Mid term Paper 2011

MIDTERM EXAMINATION 

Spring 2011
FIN625 - Credit Analysis & Risk Management

Time: 60 min

                                                                                                                    M a r k s: 41

MCQ 22

Question No: 23( M a r k s: 3 )

How the banks can avoid having associations with individuals involved in fraudulent or similar activities?

Question No: 24 ( M a r k s: 3 )

What is purpose of carry out plausibility check & preliminary review?

Question No: 25 ( M a r k s: 3 )

List the categories for the creation of credit decision-making structure

Question No: 26 ( M a r k s: 5)

Why do the credit institutions serve various customers segments? Why these segments are held inadequate in small banks when complemented by product specific segments.

Question No: 27 ( M a r k s: 5)

What are the views of committee regarding the maturities of claims within the standardized approach designed for application by banks?

The bond rating of the security refers to:

The size of the coupon payment relative to the face value.

The return. A holder is like to receive.

The likelihood, the lender/borrower will be repaid by the borrower or re-issuer.

The maturity of the bond.