Preview Questions Financial Analyst | Role Specific Skill

Question 1: Which statement is required for BFSI firms under IFRS for providing detailed cash flow information?

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Cash Flow Statement

Reconciliation Statement

Liquidity Analysis Statement

Operating statement

Question 2: Which of the following best describes the Efficient Market Hypothesis (EMH) in investment analysis?

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Markets are inefficient, and it is possible to consistently achieve higher returns than the market average

Markets quickly incorporate all relevant information, making it difficult to consistently outperform them

Markets are always perfectly efficient and reflect all available information

Markets are only efficient in the long run

Question 3: What should be the primary focus when performing a sensitivity analysis on a bank's return on equity (ROE)?

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Analyzing the impact of market conditions without adjusting for capital structure changes

Evaluating non-financial factors such as market competition

The impact of changes in profitability, leverage, and equity capital on the ROE

Focusing only on operational expenses without considering income variations

Question 4: Which of the following methods would be most effective for forecasting macroeconomic trends that impact the banking sector?

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Moving averages

Econometric modeling

Time-series analysis

Regression analysis

Question 5: How would you ensure that budget assumptions for a financial institution align with its strategic goals?

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Use historical data to predict future trends

Involve senior management in the budgeting process

Use a top-down approach for budgeting

Apply industry benchmarks to all expense categories

Question 6: In a financial model for a commercial bank, what method should be used to forecast net income?

Which action should you take?

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Build a detailed cash flow statement and adjust for changes in working capital

Use analyst consensus estimates and apply them to the model

Use historical trends to project the income statement line items

Forecast interest income and interest expense, then adjust for tax