1. Which of the following is TRUE about the difficulties with financial analysis

A.Omission omitted OBS and qualitative factors B.All of the other listed options are correct.

C.Problems with ratio backward looking

D.Problems with raw data accuracy and accounting standards

2.

Extracted data from Steam Point Bank financial reports
year	Loan loss reserve/ Gross loans (%)
2014	6.43
2015	6.72
2016	6.72
2017	6.13
2018	4.32
2019	4.59
2020	4.13

2. Steam Point Bank is deteriorating in its asset quality. Select one:

True

False

3. Which bank is better capitalised?

Ratio	Bank A	Bank B
Gearing ratio	9 times	8.18 times
Leverage multiplier	10 times	9.09
Simple capital ratio	10%	11%

A. Bank B is only better in the simple capital ratio

B.Bank B

C.Bank A

D.Bank A is better in the gearing ratio