Preview Questions Financial Analyst | Role Specific Skill

Question 1: How would you assess the risk of asset-liability mismatch in a bank's balance sheet?

Which action should you take?

Choose only one option

I analyze the duration gap between assets and liabilities and model the impact of interest rate changes on the balance sheet

I analyze the bank's current capital and ignore future liquidity concerns

I focus only on the liquidity of assets and ignore liabilities

I assume that assets and liabilities will always match, regardless of market conditions

Question 2: Which type of model is most suitable for forecasting credit risk in BFSI?

Which action should you take?

Choose only one option

Neural network

Decision tree

Time-series regression

Logistic regression

Question 3: Which Excel function is most commonly used for dynamic referencing in financial models?

Which action should you take?

Choose only one option

INDIRECT

OFFSET

INDEX

VLOOKUP

Question 4: Which metric best captures the economic impact of BFSI credit expansion on GDP?

Which action should you take?

Choose only one option

Money supply growth

Interest rate spread

Loan-to-GDP ratio

Non-performing asset ratio

Question 5: In valuing a bank's loan portfolio using a discounted cash flow approach, which advanced input assumption is most critical in accurately reflecting credit risk under IFRS 9/CECL expected credit loss models?

Which action should you take?

Choose only one option

Forward-looking macroeconomic scenarios for probability of default

Peer group average non-performing loan ratios

Historical average loss given default ratios

A fixed credit spread premium above the risk-free rate

Question 6: In financial reporting for a bank, how do you calculate the capital adequacy ratio (CAR)?

Which action should you take?

Choose only one option

By subtracting total liabilities from total assets and dividing by equity capital

By adding net income to shareholders' equity and dividing by total assets

By dividing the bank's tier 1 and tier 2 capital by its risk-weighted assets

By determining the value of loan losses and subtracting from total assets