AIWMI CCRA-L2 CCRA - Level 2 Exam Practice Test Instant Access

Question 1

The _______ cycle is the length of time between the company's outflow on raw materials and the manufacturing expenses and the inflow of cash from the sale of goods.

ACash flow mismatch

BMoney

CRunning

DOperating

Answer : D

Question 2

Risk in CDS price is reflective of

Aincrease in probability of default

Bincrease in interest rates

Cdecrease in probability of default

Dincrease in recovery rates

Answer : A

Question 3

Which of the following is not one of the C in the 5 C Model?

ACapacity

BCapital

CCovenants

DConditions

Answer : C

Question 4

Which of the following statement is false?

ADEF Ltd. has received a speculative grade rating as its outstanding rating is B+

BNon-Convertible debenture of PQR Ltd. has a speculative rating since its outstanding rating is C

CABC Ltd. short term is BBB- for its commercial paper

DXYZ has an investment grade rating as his outstanding rating is A1

Answer : B

Question 5

If you yield curve is humped and the medium rates drop, what will happen to the yield curve?

AIt will move from negative to positive

BIt will shift up in a uniform fashion

CIt will become steeper

DIt will flatten

Answer : C

Question 6

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.

A150

B75

C100

D50

Answer : C

Question 7

The longer the term to maturity of bond:

Aterm to maturity and price of a bond are not related

BThe lesser is the risk associated with price of a bond

CThe higher is the return from the bond

DThe more risk in the price of a bond

Answer : D

AIWMI CCRA-L2 Certified Credit Research Analyst - Level 2 CCRA - Level 2 Exam Practice Test