Quiz 3

Banking Practices and Regulations

Quiz (10 Minutes)

1) Corporate banking means:

a. Bank which is incorporated under a law doing business

b. Bank which finances only companies (Wrong answer)

c. Reflecting an array of commercial, transactional and electronic innovative products for use of customers

2) Corporate banking involves only fund based facilities (Answer: No)

3) A derivative is a structured product extended to a corporate (Answer: Yes)

4) Give 3 examples of Non fund based facilities granted by a bank

5) Name 3 constituents of retail product group

6) Indicate the 5Cs of evaluating a customer

7) Enumerate the 3 pillars of Basel 2 accord

8) Difference between credit risk and market risk

9) Under what rating, the following ratios are used to determine

a. Securities to total investment

b. Net NPA to Net Advances (Asset quality)

c. Market value to equity Capital (Equity quality)

10) What do CRAMEL and CAMEL stand for?