Question 1:

1. Which one of the following is not considered as depository institution

A. Islamic Bank

B. Thrifts

C. Mutual Fund

D. Commercial Bank

2. Which one of the following statements is correct

A. The higher the liquidity index the higher the liquidity risk exposure

B. The higher the liquidity index the less the liquidity risk exposure

C. The lower the liquidity index the less the liquidity risk exposure

D. The liquidity index does not indicate for the liquidity risk exposure

3. Which one of the following statements is incorrect

A. Increased inflation, interest rate volatility, and unemployment are types of macroeconomic risk

B. The foreign governments monetary policy and the capital flows and foreign investment are important factors for measuring the sovereign risk

C. The off-balance-sheet risk is the risk incurred by an FI as the result of activities related to contingent assets and liabilities

D. Operational risk is the risk incurred by an FI when its technological investments do not produce anticipated cost savings

4. The Altmans Z-score includes the following variables, except for?

A. retained earnings total assets

B. sales total liabilities

C. market value of equity book value of long-term debt

D. working capital total assets

5. Which one of the following retirement formulas is NOT offered by Defined Benefit Pension Funds?

A. Flat Benefit formula

B. Final pay formula

C. Consummation and Accumulation formula

D. Career Average formula