Preview Questions Financial Analyst | Role Specific Skill

Question 1: In a financial report, how should an analyst account for changes in the fair value of financial assets held by a bank under IFRS 9?

Which action should you take?

Choose only one option

As a reclassification in the equity section

As an adjustment to the income statement

As an adjustment to the cash flow statement

As an impairment in the assets section

Question 2: When performing vertical analysis on a bank's income statement, which item is considered the base?

Which action should you take?

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Total revenue or total operating income

Gross profit margin

Total assets

Operating expenses

Question 3: When evaluating a sector for investment, which of the following is the most important factor to consider for a sector rotation strategy?

Which action should you take?

Choose only one option

Geopolitical stability

Interest rate environment

Sector performance relative to the overall market

Historical price volatility

Question 4: How do you ensure the accuracy of a financial model?

Which action should you take?

Choose only one option

Automating calculations

Conducting an audit trail

Stress-testing assumptions

Linking formulas across sheets

Question 5: Which metric is most critical for forecasting cash flow in BFSI institutions?

Which action should you take?

Choose only one option

Asset turnover ratio

Loan-to-deposit ratio

Operational efficiency ratio

Net interest margin

Question 6: Which forecasting method is most suitable for predicting future interest rate movements in the banking sector?

Which action should you take?

Choose only one option

Moving average

Exponential smoothing

ARIMA (Auto-Regressive Integrated Moving Average)

Time series analysis