Preview Questions Financial Analyst | Role Specific Skill

Question 1: In assessing the economic impact of fiscal policies, which of the following would be a leading indicator for banks?

Which action should you take?

Choose only one option

Unemployment claims

Consumer debt levels

Government debt-to-GDP ratio

Changes in tax policy

Question 2: How do you incorporate ESG (Environmental, Social, and Governance) factors into investment analysis?

Which action should you take?

Choose only one option

I exclude ESG factors and focus only on financial performance

I assume that companies with strong ESG scores always outperform financially

I rely on ESG ratings without adjusting for their financial impact

I assess ESG factors based on the company's sustainability initiatives, social impact, and governance structures, adjusting valuations accordingly

Question 3: How do you approach forecasting the impact of regulatory changes on a bank's income statement?

Which action should you take?

Choose only one option

I treat regulatory changes as minor and only adjust the forecast at the end of the period

I ignore the potential impact of regulatory changes and focus on financial performance

I use scenario analysis to estimate how regulatory changes will impact key metrics such as capital and liquidity

I adjust the budget based only on direct costs resulting from regulatory changes

Question 4: Which strategy is most suitable for enhancing portfolio returns during periods of high market uncertainty?

Which action should you take?

Choose only one option

Increasing exposure to high-yield bonds

Increasing the cash position

Implementing a tactical asset allocation strategy

Maintaining a low allocation to equities

Question 5: How would you account for seasonal fluctuations when budgeting for retail banking operations?

Which action should you take?

Choose only one option

Adjust the budget based on prior seasonal trends

Use a flexible budget approach

Increase the budget to account for future growth

Use a rolling forecast model

Question 6: In the context of financial reporting, which accounting standard is most relevant for banks in terms of asset impairment?

Which action should you take?

Choose only one option

IAS 16

IFRS 9

IFRS 13

IFRS 15