Online Access Free CCRA-L2 Exam Questions

Loss assets should be written off. If loss assets are permitted to remain in the books for any reason,
______percent of the outstanding should be provided for.

• A.150
• B.100
• C.50
• D.75

Based on the Moody's KMV model which of the following is not correct?

• A.Activity ratios are relevant for default analysis. A large stock of inventories relative to sales will lead to a higher probability of default.
• B.Growth variables are important for default analysis. rapid growth will lead to lower probability of default and rapid decline will lead to higher probability of default.
• C.Only Statement B is correct
• D.None of the statements is correct
• E.Only Statement A is correct
• F.Both the statements are correct

Two economies HardLand and SincereLand have provided following information with respect to their economies in USD Billion:

Based on the above information which entity is better in terms of current account deficit %?

• A.Sincereland by 583 bps
• B.Hardland by 583 bps
• C.Sincereland by 56 bps
• D.Hardland by 56 bps

Statement 1: The Yields on the MBS PTCs are normally higher than the yields on the corporate bonds of similar ratings.
Statement 2: The reason for difference in yields on the corporate bonds and similarly rated PTCs is on account of the optionality in the PTC, the unfamiliarity of the structure and uncertainties in respect of legal and structural issues.
Which of the above statements is correct?

• A.Only Statement 2 is correct
• B.Both the statements
• C.Only Statement 1 is correct
• D.None of the statements

In Steepening short term rates ______relative to long term rate

• A.is independent of each other
• B.rises
• C.remains constant
• D.falls