[Part 2]: BASEL quiz for RBI Grade B

Dear aspirants,
We are presenting you the BASEL quiz for RBI Grade B under Finance and Management Section of the exam. BASEL guidelines are very important for RBI Grade B exam as these guidelines have direct implications on financial sector of the economy. It determines the resilience of the banking sector an economy.

1. How many BASEL Accords have been introduced as of now?
   1. 1
   2. 2
   3. 3
   4. 4
2. Who formulates BASEL guidelines?
   1. World Bank
   2. IMF
   3. G20 group of governors
   4. BCBS
3. What is the effect on capital requirement of bank if it takes exposure on riskier assets?
   1. More capital is required
   2. Less capital is required
   3. No change in capital requirement
   4. None of these
4. Which of the following is/are risk face by bank?
   a) Credit Risk
   b) Market Risk
   c) Income Risk
   d) Operational Risk
   Select the correct answer from following options:
   1. Only b
   2. Only a, c and d
   3. Only a, b and c
   4. All are correct
5. Which of the following risk is/are covered by BASEL-I?
   a) Credit Risk
   b) Market Risk
   c) Reputation Risk
   d) Operational Risk
   Select the correct answer from following options:
   1. Only a and b
   2. Only a and d
   3. Only a, c and d
   4. All are correct
6. When did India started implementing BASEL-I guidelines?
   1. 1988
   2. 1990
   3. 1991
   4. 1992
7. Which of the following is correct definition of Probability of default (PD)?
   1. It measures the remaining economic maturity of the exposure
   2. It is estimated amount outstanding in a loan commitment if default occurs
   3. It measures the proportion of the exposure that will be lost if Default occurs
   4. It measures the likelihood that the borrower will default over a given time horizon
8. Which of the following is correct definition of Loss Given Default (LGD)?
   1. It measures the remaining economic maturity of the exposure
   2. It is estimated amount outstanding in a loan commitment if default occurs
   3. It measures the proportion of the exposure that will be lost if Default occurs
   4. It measures the likelihood that the borrower will default over a given time horizon
9. Which of the following is correct definition of Exposure at Default (EAD)?
   1. It measures the remaining economic maturity of the exposure
   2. It is estimated amount outstanding in a loan commitment if default occurs
   3. It measures the proportion of the exposure that will be lost if Default occurs
   4. It measures the likelihood that the borrower will default over a given time horizon
10. In line with BASEL-II guidelines, what was the minimum percentage CRAR prescribed by Reserve Bank of India?
    1. 9%
    2. 8%
    3. 7%
    4. 6%

Answers

1. 3
   There are three BASEL accords published since its inception. BASEL-I was introduced in 1988, BASEL in 2004 and latest set of guidelines i.e. BASEL-III were introduced in 2010.
2. 4
   BASEL guidelines are published by Basel Committee of Banking Supervision (BCBS) based in Basel, Switzerland.
3. 1
   A bank requires more capital to cover riskier exposures and less capital for safer assets.
4. 2
5. 1
   BASEL-I guidelines initially focused only on credit risk but later introduced market risk also
6. 4
   India began implementing the Basel I in April 1992
7. 4
8. 3
9. 2
10. 1

We hope you liked the quiz. For feedback please post comment under comments section below. Also read the previous BASEL quiz for RBI Grade B.

You may also like to read following MCQs for RBI Grade B exam: 

• National Income MCQ for RBI Grade B (ESI)
• Read quiz on CRR, SLR, MSF, LAF for RBI Grade B
• Regulator of banks and FI Quiz

Click to go to RBI Grade B Preparation Page  | Click to read more such quizzes

Tags: BASEL quiz for RBI Grade B, BASEL questions for RBI Grade B