Credit & Risk Management (FIN625)

1. All of the following are the major causes of serious banking problems, EXCEPT:

   1. Lax credit standards for borrowers
   2. Lax credit standards for counterparties
   3. Poor portfolio risk management
   4. Having attention to varying economic circumstances

2. Creditworthiness of a borrower is represented by a numerical expression that is called ________.

   1. Credit rating
   2. Credit report
   3. Credit score
   4. Identity score

3. The Credit Bureau or Credit Reference Agency is a company that ________.

   1. Provides credit to public
   2. Provides consumer credit information on individual borrower
   3. Only exists in USA and UK
   4. Works for credit card companies only

4. The system which is used for the verification of the legitimacy of an individual's public identity is called ________.

   1. Credit worthiness
   2. Credit history
   3. Identity score
   4. Credit score

5. Which of the following is the process of assessing risks and taking steps to either eliminate or to reduce them (as far as is reasonably practicable) by introducing control measures?

   1. Strategic management
   2. Operations management
   3. Risk management
   4. Credit management

6. Banks should ensure that the credit risk involved in new products and activities needs prior approval by the ________.

   1. Senior management
   2. Branch manager
   3. Board of directors
   4. Middle management

7. Which of the following is in many countries, a record of an individual's or company's past borrowing and repaying, including information about late payments and bankruptcy?

   1. Credit history
   2. Credit rating
   3. Credit repair
   4. Credit union

8. Risk management often aligned with which activities.

   1. Project management or systems engineering
   2. Operation management or MIS
   3. Financial management or investment management
   4. MIS or financial management

9. Corporate credit scoring is represented through ________.

   1. Numerical expression
   2. Algebraic expression
   3. Capital Letters
   4. Small letters

10. All of the following are the activities covered in a credit history or credit report, EXCEPT:

    1. Consumer's payment patterns
    2. Consumer's lending patterns
    3. Consumer's credit balances
    4. Consumer's credit inquiries by debtors

Select a course code for Objective Questions:

ACC311 ACC501 BIF101 BIF401 BIF501 BIO101 BIO201 BIO202 BIO203 BIO204 BIO301 BIO302 BIO303 BIO401 BIO503 BNK603 BT101 BT201 BT301 BT302 BT401 BT402 BT403 BT404 BT405 BT406 BT501 BT504 BT505 BT604 CHE201 CHE301 CS001 CS101 CS201 CS202 CS204 CS301 CS302 CS304 CS311 CS401 CS402 CS403 CS408 CS501 CS502 CS504 CS506 CS508 CS601 CS602 CS604 CS605 CS607 CS609 CS610 CS614 CS707 CS710 ECO401 ECO402 ECO403 ECO404 EDU302 EDU401 EDU402 EDU501 EDU601 ENG101 ENG201 ENG301 ENG501 FIN611 FIN624 FIN625 ISL201 IT430 MCM101 MCM301 MGMT623 MGT101 MGT211 MGT301 MGT401 MGT402 MGT501 MGT502 MGT503 MGT510 MGT601 MGT603 MKT501 MKT610 MKT630 MTH101 MTH202 MTH302 MTH501 MTH601 MTH634 PAK301 PHY101 PHY301 PSY101 PSY403 PSY502 PSY512 SOC101 SOC301 SOC401 STA301 STA630 STA641 ZOO102 ZOO401 ZOO501 ZOO502 ZOO503 ZOO504 ZOO505 ZOO506 ZOO510 ZOO630

Select a course code for Subjective Questions:

ACC311 CS001 CS101 CS201 CS301 CS607 CS701 CS702 CS703 CS704 CS707 CS708 CS710 CS711 CS718 CS721 CS724 ECO401 ECO403 ENG101 ENG301 MGT703 MTH501 STA301