An increase in the salaries of the bank employees due to new bank employee pay commission implemented by the Central Government will lead to deterioration of which of the following ratios:
A: Cost to Income Ratio -
B: Net Interest Margin -
C: Core Spread -
Answer : A
Project 1: Company X has a sugar mill at Philadelphia and is replicating same at Toronto.
Project 2: Company Y has a sugar mill at Philadelphia and is increasing capacity from 100000 MT to 140000 MT per annum.
What type of projects are Project 1 and Project 2?
Answer : C
Which of the following may lead to the deterioration in credit profile of a bank?
Statement 1. Bank"™s Capital adequacy falling below regulatory requirement.
Statement 2. Rise in Slippage ratio
Answer : A
Reference:
https://economictimes.indiatimes.com/industry/banking/finance/pnbs-capital-adequacy-falls-below-regulatory-requirement-due-to-nirav-scam/ articleshow/64573303.cms
During FY13, Small Bazar, a leading retail company has sold three of its prime properties for a sum of USD 24 Million. The same had a carrying value of USD 30
Million.
Analyst had considered the same as operating income and considered it to be part of operating expenses. However, she realized her mistake and recorded the loss as non-operating loss. Which of the following ratio will not change despite the correction?
A) EBITDA Margins -
B) Interest Coverage -
C) PAT Margins -
D) Gross Profit Margin -
Answer : B
Which of the following statements concerning having a CEO serve as chairman of the board is most accurate? Having a CEO also serve as chairman is considered:
Answer : D
A holder of which of the following types of bonds is least likely to suffer from rising interest rates?
Answer : A
Reference:
https://www.nuveen.com/fixed-income-strategies-for-low-and-rising-rates
The most important metric for a bank is the Net Interest Income (NII) which is the difference between____income and____expense.
Answer : C
Reference:
https://economictimes.indiatimes.com/definition/net-interest-income-nii
Based on the common size statement analysis which of the following statement regarding employee cost is correct?
Answer : C
Butterfly strategy is a combination of
Answer : B
Reference:
https://books.google.com.pk/books?id=WTvNAgAAQBAJ&pg=PA213&lpg=PA213&dq=Butterfly+strategy+is+a+combination+of+Barbell+and+Bullet
+on+the+opposite+market+sides&source=bl&ots=cdWVJkVMRG&sig=XIB-
7YqySq5YDEUmEWusH5JCsjY&hl=en&sa=X&ved=2ahUKEwj3_pCrxN7eAhVkK8AKHYuDCwUQ6AEwBnoECAUQAQ#v=onepage&q=Butterfly%20strategy%
20is%20a%20combination%20of%20Barbell%20and%20Bullet%20on%20the%20opposite%20market%20sides&f=false
Awesome Mobile Ltd is a leading mobile seller who manufactures mobile phone under own brand Awesome. Which of the following is the biggest business risk for
Awesome?
Answer : C
Based on the Moody"™s KMV model which of the following is not correct?
A: Growth variables are important for default analysis. rapid growth will lead to lower probability of default and rapid decline will lead to higher probability of default.
B: Activity ratios are relevant for default analysis. A large stock of inventories relative to sales will lead to a higher probability of default.
Answer : D
Reference:
https://books.google.com.pk/books?id=g8XgCwAAQBAJ&pg=PA67&lpg=PA67&dq=Activity+ratios+are+relevant+for+default+analysis.+A+large+stock
+of+inventories+relative+to+sales+will+lead+to+a+higher+probability+of+default&source=bl&ots=Q-6qbboNbl&sig=iKGUJsn0wKNSv-
F7pZ5B_GElw5E&hl=en&sa=X&ved=2ahUKEwjsruKZwd7eAhUqB8AKHQFGAtAQ6AEwC3oECAsQAQ#v=onepage&q=Activity%20ratios%20are%20relevant%
20for%20default%20analysis.%20A%20large%20stock%20of%20inventories%20relative%20to%20sales%20will%20lead%20to%20a%20higher%20probability%
20of%20default&f=false
In a weakening economy, which of the following is least accurate?
Answer : D
Which of the following is not an importance of the sovereign rating?
A: To arrive at cost of lending to a country
B: To set lower floor for the rating of the corporate and banks of the countries on international scale.
C: For determining the risk levels for international investment portfolios
Answer : B
Bank A has an imaginary portfolio of USD 1000 Million distributed towards following four entities:
Answer : B