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AIWMI CCRA-L2 Exam Dumps - Actual Questions Answers

Certified Credit Research Analyst Level 2

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  • Last Update: Apr 23, 2024
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CCRA-L2 Questions and Answers

Question # 1

An increase in the salaries of the bank employees due to new bank employee pay commission implemented by the Central Government will lead to deterioration of which of the following ratios:

A.

Cost to Income Ratio

B.

Net Interest Margin

C.

Core Spread

D.

Only A

E.

A B and C

F.

Only B

G.

Only C

Question # 2

Ms. Mary Brown is a credit rating analyst. She had prepared a detailed report on one of her client, FlyHigh

Airlines Ltd, a company operating chartered aircrafts in India. As she was heading for a meeting with her superior on the matter, coffee spilled over her set of prepared paper(s). As she was getting late for meeting, instead of preparing entire set she could recollect few numbers from her memory and reconstructed following partial financial table:

2

An analyst comparing two competitors Comp Systems and Big Tables gathers the data below:

Cash Conversions Cycle:

Comp Systems: 18 days and Big Tables 32 days

Defense Interval Ratio:

Comp Systems: 50 and Big Tables: 20

What can the analyst conclude regarding the liquidity of these companies?

A.

Both indicators suggest that Comp Systems is more liquid than Big Tables

B.

Both indicators suggest that Big Tables manages it/s cash better than Comp Systems

C.

Both indicators give contradictory results

D.

While Comp Systems is more liquid as per the Cash conversion cycle, Big Tables manages its cash better as indicated by a lower, hence better Defense Ratio

Question # 3

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.

None of the statements

B.

Both the statements

C.

Only Statement 2 is correct

D.

Only Statement 1 is correct

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