<<1234567891011>> 1. How can RAROC or risk-adjusted performance measures assist in comparing traders' performances?By solely considering profit marginsBy evaluating the risk and profit generatedBy disregarding market volatilityBy emphasizing individual capital investmentsQuestion 1 of 11 2. What elements are considered in the calculation of Risk Capital?Capital and Market VolatilityProfit and Risk FactorMarket Volatility and Risk FactorCapital and Risk FactorQuestion 2 of 11 3. In the given scenario, which trader exhibits a higher Risk Capital?Foreign Exchange TraderBond TraderBoth exhibit the same Risk CapitalCannot be determined from the given informationQuestion 3 of 11 4. How does higher market volatility impact Risk Capital calculation?It decreases Risk CapitalIt increases Risk CapitalIt has no impact on Risk CapitalIt directly relates to higher profitsQuestion 4 of 11 5. What decision-making function does Risk Capital calculation serve in financial institutions?Solely determining compensation for tradersIdentifying individual profit marginsEvaluating the level of risk associated with different trading activitiesAssessing the total market volatilityQuestion 5 of 11 6. What is the primary objective behind the establishment of the National Bank for Financing Infrastructure and Development (NaBFID)?To promote short-term financing in IndiaTo support the development of long-term infrastructure financing in IndiaTo focus on retail banking servicesTo encourage international investments in Indian marketsQuestion 6 of 11 7. When was the NaBFID Act, 2021 enforced in India?28 March, 202119 April, 20211 January, 202115 May, 2021Question 7 of 11 8. How do Development Financial Institutions (DFIs) like NaBFID differ from banks in terms of fund sourcing?They solely rely on government fundsThey accept deposits from the publicThey only source funds from multi-lateral institutionsThey don't accept deposits but source funds from markets, governments, and multi-lateral institutionsQuestion 8 of 11 9. How are DFIs like NaBFID typically supported financially?Solely through public depositsOnly through market fundsThrough government guarantees, market funds, and multi-lateral institutionsBy relying on foreign investments exclusivelyQuestion 9 of 11 10. What specific sector does NaBFID primarily focus on for financing?Retail and consumer financingTechnology and innovation sectorsLong-term infrastructure projectsShort-term industrial developmentsQuestion 10 of 11 11. How does the government generally support DFIs like NaBFID?By restricting their operationsThrough issuing government bondsBy limiting their access to fundsBy providing guarantees or backingQuestion 11 of 11 Loading...
