INSTURCTION
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1. ............risk is when a bank customer pays a loan instalment one after stipulated date in the loan contract.
2. Technology risk refers to.....
3. Loans to individuals or households are classified assets.
4. Drobosa Bank Limited has offered a customer a credit line to the tune of GH$ 250,000. This means the customer
5. All the following are quantitative models for credit scoring except
6. The possibility that the promised cash flow from loan contract may not be received in full is also referred to as......risk
7. The risks that a financial institution faces are interdependent and the occurring of one risk factor can trigger other risk factors. This statement is
8. Business risk results from risk factors inherent in a firm's line of business while financial risk results from
9. Off-balance sheet risk results from transactions
10. Financial institutions also face regulatory risk, which refers to
11. The following are the key activities of risk management.
I. Risk Management
II. Risk identification
III. Risk mitigation
IV. Risk monitoring
12. Adukro Microfinance Limited requires that its credit officers visit the business premises of borrowers once every week. This policy establishes ...... activities.
13. Suppose the Government of Ghana signs a deal to import refine oil from Nigeria payable in US dollar, then Ghana is exposed to
14. Which of the following will not be used as an indicator of default risk in assessing credit risk for a personal loan?
15. Interest rate risk is exposure to possible adverse changes in values of assets and liabilities due to changes in general level of interest rates.
16. The repricing gap in a maturity bucket is...
| Assets | GH$ | Liabilities | GH$ |
| 91-day treasury bills | 450 | Three-month CDS | 235 |
| 182-treasury bills | 980 | Overnight repos | 380 |
| 364-day treasury bills | 125 | One-year fixed deposits | 540 |
| 52-day BOG securities | 345 | Two-year fixed deposits | 535 |
| Two-year term loan | 845 | Five-year fixed deposits | 1280 |
| 15-year mortgages | 2450 | Stated capital | 1145 |
| 6-month term loans | 3450 | 10-year bonds | 4530 |
| Total assets | 8645 | Total equity & liability | 8645 |
Use the data in the above table to answer questions 17 to 20.
17. For a three-month planning horizon what will be the amount of rate-sensitive assets?
18. What will be the amount of rate sensitive liabilities for a three-month planning horizon?
19. What is the repricing gap for a three-month planning horizon?
20. The repricing model's weakness including failing to deal with the following except
