46. Which of the following is a risk associated with banking business?
a) Credit risk
b) Market risk
c) Liquidity risk
d) All of the above
47. What is the purpose of a bank’s asset-liability committee (ALCO)?
a) To manage a bank’s investment portfolio
b) To oversee the bank’s capital adequacy
c) To ensure that a bank’s assets and liabilities are properly matched
d) To evaluate the creditworthiness of a bank’s borrowers
48. What is the role of a bank’s chief financial officer (CFO)?
a) To manage the bank’s investment portfolio
b) To oversee the bank’s capital adequacy
c) To ensure the accuracy and integrity of the bank’s financial statements
d) To supervise the bank’s compliance with applicable laws and regulations
49. What is the purpose of a bank’s internal audit department?
a) To evaluate the effectiveness of a bank’s internal controls and risk management processes
b) To manage the bank’s investment portfolio
c) To approve loan applications
d) To oversee the bank’s marketing and advertising activities
50. What is a bank’s cost-to-income ratio?
a) A measure of a bank’s efficiency, calculated as the operating expenses divided by the net income
b) The total expenses incurred by a bank
c) The percentage of a bank’s loans that are repaid on time
d) The difference between a bank’s equity and liabilities
