1) Modern Approaches to Credit Risk Measurement include:

A) Econometric techniques

B) Optimisation models

C) 5Cs

D) PARSER

E) A and B

2) In order to assess the capacity of the borrower to repay, lender will look at only one of the following:

A) The details of personal income and expenditures

B) The capital contribution that the borrower proposes to make in the total investment

C) The value of the collateral

D) The records of the borrowers previous loan repayments

3) XYZ company has a current ratio of 10.2. This means that

A) The company is not able to pay current debts as they become due

B) The company is able to pay current debts as they become due

C) The company is able to pay interest on the debt

D) None of the above

4) The modern types of advances include the following except:

A) Equity Participation

B) Overdrafts

C) Equipment Leasing

D) Loan Syndication

5) The financial ratios fall into the following main categories:

A) Liquidity, Efficiency ratios, Profitability ratios and Leverage ratios

B) Current asset ratio, quick asset ratio and cash ratio

C) All of the above

D) None of above