AIWMI CCRA-L2 Certified Credit Research Analyst - Level 2 Exam Exam Practice Test Questions

• Question 1

  For considering the assignment of probabilities, which of the following aspects are taken into account?

  • Economic cycle – bearish phase or boom
  • All of the other options
  • The date of valuation of assets on the financials
  • The nature and age of assets

  Show Answer Answer: C Next

• Question 2

  Short term rates are determined by

  • All of the other options
  • Liquidity position caused by seasonal demand supply for credit
  • Foreign portfolio investment inflows and outflows
  • Bunching of tax and government payments

  Show Answer Answer: B Next

• Question 3

  The cycle is the length of time between the company’s outflow on raw materials and themanufacturing expenses and the inflow of cash from the sale of goods.

  • Cash flow mismatch
  • Money
  • Running
  • Operating

  Show Answer Answer: D Next

• Question 4

  Which of the following is a factor considered while evaluating resources profile for rating of bank?

  • Size and growth of deposits
  • All of the three
  • Deposit composition & stickiness
  • Geographic distribution of deposits

  Show Answer Answer: B Next

• Question 5

  Scott is a credit analyst with one of the credit rating agencies in Indi

  • He was looking in Oil and Gas Industry companies and has presented brief financials for following 4 entities:Two credit analysts are discussing the DM-approach to credit risk modeling. They make the following statements:Analyst A: A portfolio’s standard deviation of credit losses can be determined by considering the standard deviation of credit losses of individual exposures in the portfolio and summing them all up. Analyst B: I do not fully agree with that. Apart from individual standard deviations, one also needs to consider the correlation of the exposure with the rest of the portfolio so as to account for diversification effects. Higher correlations among credit exposures will lead to higher standard deviation of the overall portfolio.
  • Only Analyst A is correct
  • Both are correct
  • Only Analyst B is correct
  • Both are incorrect

  Show Answer Answer: C Next