EVALUATION of Financial Institutions
Test assignment on the discipline "Assessment of the value of credit institutions and financial institutions"
Final control (the correct answer is one)
1. Financial institutions of deposit type include:
a) commercial banks;
b) insurance companies;
c) pension funds;
d) unit investment funds.
2. The pension fund belongs to the following type of financial intermediaries:
a) deposit-type institutions;
b) institutions acting on a contractual basis;
c) investment funds;
d) Other types of financial intermediaries
3. The risk caused by the probability that the borrower will not be able to return the borrowed amount of the loan (loan) or interest for its use, or violate the agreed terms for the return of funds, is called:
a) interest rate risk;
b) the risk of reducing liquidity;
c) risk of non-return. (credit risk is the risk that the borrower will not repay the loan in accordance with the terms and conditions of the loan agreement).
4. The most difficult to implement from the standpoint of external evaluation are the methods:
a) cost-based approach to the evaluation of the cost of the CFR;
b) a comparative approach to the valuation of the CFR;
c) a profitable approach to the valuation of the CFR.
5. The most preferable concept of conducting a commercial bank valuation is:
a) the concept of assessing the value of a bank on invested capital;
b) the concept of valuation of the bank´s cost of borrowed capital;
c) the concept of estimating the value of a bank by its own capital.
6. To estimate the value of a newly created commercial bank within the income approach, it is recommended to use:
a) method of capitalization;
b) the method of discounting cash flows;
c) excess profit method.
7. The amount of net profit and non-cash expenses taking into account the cash flow going to increase the balance of a commercial bank is:
a) cash flow of the bank to the invested capital;
b) cash flow of the bank to own capital;
c) cash flow of the bank to borrowed capital.
8. Increase in balances on deposits of individuals of a commercial bank:
a) increases free cash flow to the bank´s own capital;
b) reduces the free cash flow to the bank´s own capital;
c) does not affect the free cash flow.
9. Increase in fixed assets of a commercial bank:
a) increases free cash flow to the bank´s own capital;
b) reduces the free cash flow to the bank´s own capital;
c) does not affect the free cash flow of the bank.
10. In the context of a comparative approach to valuation, information on the actual amounts of transactions made with shares of various KFIs is:
a) financial information;
b) market information;
c) accounting information.
11. High values of the estimated multiples "Price / Net profit" are typical for insurance companies, in which:
a) increased values of return on equity;
b) low values of return on equity;
c) average values of return on equity.
12. The greatest influence on the value of the estimated multiplier of the commercial bank "Price / Carrying value of equity" is provided by:
a) the growth rate of profit per share;
b) dividend payout ratio;
c) return on equity.
13. For commercial banks that have a low dividend payout ratio, the return on equity, the rate of profit growth and the high cost of equity (capital expenditure) are characterized by:
a) high values of the multiplier "Price / Book value of equity";
b) low values of the multiplier «Price / Book value of equity».
c) average values of the multiplier «Price / Book value of equity».
14. In the first forecast period, the commercial bank´s cash flow from operations is expected to be 345 million rubles, an increase in retail deposits of 45 million rubles, an increase in the issuance of own bills of exchange by 110 million rubles, an increase in the issuance of new loans - for the amount of
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