Preview Questions Financial Analyst | Role Specific Skill

Question 1: How does inflation targeting by central banks affect BFSI institutions?

Which action should you take?

Choose only one option

Stabilizes lending margins

Increases credit growth

Boosts consumer borrowing

Reduces interest rate volatility

Question 2: When determining the appropriate discount rate for a multi-country banking conglomerate's equity valuation, which advanced approach might best capture divergent sovereign risks across geographies?

Which action should you take?

Choose only one option

A single global CAPM model using weighted average betas

A local CAPM model averaging local risk-free rates and equity risk premiums

Using a global risk-free rate with a single global equity risk premium

A sum-of-the-parts approach applying a distinct country risk premium for each geographic segment

Question 3: What is the primary economic impact of quantitative easing on BFSI markets?

Which action should you take?

Choose only one option

All of the above

Reduces interest rates

Boosts asset prices

Increases liquidity

Question 4: What is the significance of Expected Credit Loss (ECL) in BFSI financial analysis?

Which action should you take?

Choose only one option

It impacts cash flow forecasting

It is a regulatory requirement

All of the above

It helps in credit risk assessment

Question 5: How does a central bank's decision to increase interest rates typically affect the banking sector's profitability?

Which action should you take?

Choose only one option

It decreases loan demand and increases interest income from deposits

It decreases profitability due to lower loan rates

It has no effect on banking profitability

It increases loan demand and decreases the profitability from deposits

Question 6: How should the quality of a bank's earnings be assessed during financial analysis?

Which action should you take?

Choose only one option

By examining the proportion of non-recurring vs. recurring income

By focusing solely on the interest income and ignoring fees

By reviewing the volume of loans issued

By assessing only the gross income figures