AIWMI CCRA-L2 Exam - Topic 6 Question 59 Discussion

Actual exam question for AIWMI's CCRA-L2 exam

Question #: 59
Topic #: 6

Following is information related banks:

Auckland Ltd is a public sector bank operating with about 120 branches across Indi

a. The bank has been in business since 1971 and has about 40% branches in rural areas and about 75% of all branches are in

Western India. On the basis of the size, Auckland Ltd will be ranked at number 31 amongst 40 banks in India.

Although top management has appointment period of 5 years, generally they retire on ach sieving age of 60 years with an average tenure of only 2 years at the top job.

Profit and Loss Account

Balance Sheet

The rating wise break-up of assets for FY11 is as follows:

The core spreads for FY13 as compared to FY12 have:

AExpanded by 136 bps

BContracted by 327 bps

CContracted by 136 bps

DExpanded by 191 bps

Show Suggested Answer

Suggested Answer: D

by Alaine at Oct 12, 2022, 11:20 AM

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Joesph

4 months ago

Wait, only 2 years average tenure for top management? That's surprising!

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Rima

5 months ago

Totally agree, rural focus is a smart move!

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Nina

5 months ago

I doubt they can stay competitive ranked 31 out of 40.

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Alyce

5 months ago

40% of branches in rural areas is impressive.

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Ashlee

5 months ago

Auckland Ltd has been around since 1971!

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Jess

5 months ago

I think I read that banks in rural areas often have different spread dynamics. I’m tempted to choose option D, but I need to double-check my notes.

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Vince

5 months ago

I’m a bit confused about the bps terminology. Is it possible for spreads to contract by such a large margin like 327 bps?

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Stephanie

5 months ago

This question feels familiar; I think we had a practice question about changes in core spreads last week. I might lean towards option A.

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Phyliss

5 months ago

I remember studying about core spreads, but I’m not sure if they usually expand or contract in a growing economy.

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Candida

6 months ago

Wait, I'm a little confused. Isn't OSPF a routing protocol that uses IP packets? I'm not sure about the multicast part, though.

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Rosio

6 months ago

I'm feeling pretty confident about this one. The question provides all the necessary information to determine the proper tax treatment and calculate the gain. I'll work through it step-by-step.

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Leota

6 months ago

No problem, I've got this. The underlined text is clearly incorrect, so I'll just need to select the appropriate security tool from the options provided.

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Lorita

6 months ago

I think both Sybil and Eclipse attacks could lead to a split in the network, but I'm a little confused about the Denial of Service option.

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My

11 months ago

327 bps? Ouch, that's gotta hurt. Maybe the bank should consider branching out into the lucrative field of koala bond trading. I hear it's all the rage these days.

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Cora

9 months ago

User 3: B) Contracted by 327 bps

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Alyce

9 months ago

User 2: A) Expanded by 136 bps

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Roy

10 months ago

User 1: 327 bps? Ouch, that's gotta hurt.

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Franklyn

11 months ago

Wow, a contraction of 327 bps in core spreads? That's a pretty steep drop. I hope the bank's management has a solid plan to turn things around.

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Una

9 months ago

Yes, a contraction of 327 bps is alarming. Let's see how the bank plans to tackle this challenge.

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Rashida

9 months ago

It's definitely a cause for worry. Hopefully, the bank can implement some effective measures to reverse this trend.

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Filiberto

9 months ago

I agree, a drop of 327 bps is concerning. Let's hope they have a strategy in place to improve the situation.

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Rene

9 months ago

I know, that's a significant decrease in core spreads. The management really needs to address this issue.

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Rickie

10 months ago

It's crucial for the bank's long-term stability that they find a way to reverse this trend.

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Isabella

10 months ago

Hopefully the bank can implement some effective strategies to improve their core spreads in the future.

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Jesusita

10 months ago

Yes, a drop of 327 bps is definitely concerning. Let's see how the management addresses this.

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Jina

11 months ago

I know, that's a significant decrease in core spreads. The bank must be facing some challenges.

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Tawna

11 months ago

Expanding by 136 bps would have been a more favorable outcome for the bank. I'll need to analyze the balance sheet and P&L in more detail to assess the overall financial health.

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Leandro

11 months ago

User 2

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Mireya

11 months ago

User 1

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Emerson

11 months ago

I'm not sure, but I think the answer might be D) Expanded by 191 bps.

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Anthony

11 months ago

Hmm, a contraction of 327 bps in core spreads? That's quite a drop. I wonder what's driving that - maybe increased competition or rising funding costs?

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Hubert

11 months ago

I agree with Margret, the core spreads must have expanded.

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Raul

11 months ago

The core spreads contracting by 327 bps seems like a significant decline in profitability. I'll need to look closer at the bank's financials to understand the reasons behind this.

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Margret

12 months ago

I think the answer is A) Expanded by 136 bps.

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