51. A bank suffers loss due to adverse market movement of a security. However, the security was held beyond defeasance period. The bank suffered __________risk.
a) Operational risk
b) Asset liquidation risk
c) Market liquidity risk
d) Market risk
52. A bank hold a security which is rated as AA. The rating of the security migrates to A. Bank has faced _______ risk.
a) Operational risk
b) Asset liquidation risk
c) Market liquidity risk
d) Market risk
53 Which of the following are Stress testing techniques?
a) Downslide potential, Back Testing
b) Maximum Loss approach, Extreme Value Theory
c) Back Testing, Volatility testing
d) None of these
54. Basis point Value (BPV) is a measure of sensitivity of
a) Foreign currency open position
b) Equity price
c) Market value
d) Face value
55. One basis point is equal to:
a) 1%
b) 0.01%
c) 0.1%
d) None of these
56. Basis Point Value (BPV) is:
a) Change in value of a bond due to 1 basis point change in the coupon rate.
b) Change in value of a bond due to 1 basis point change in the market yield.
c) Change in value of a bond due to 1 basis point change in the stock index.
d) Change in value of a bond due to 1 basis point change in the inflation index .
57. The market value of a bond
a) Increases with increase in market yield.
b) Decreases with increase in market yield.
c) Remains static with change in market yield.
d) None of these.
58. BPV and Duration are market risk measures based on
a) downslide potential
b) sensitivity
c) both of them
d) none of them
59. VaR is not enough to assess market risk of a portfolio. Stress testing is desirable because
a) VaR measure is not accurate enough.
b) it helps in assessing risk due to abnormal movement of market parameters.
c) it heps as an additional measure.
d) it helps in calibrating VaR model.
60 A bank can have the following benefits through proper management of operational risks: i) Operational cost reduction ii) Competitive edge iii) Lesser allocation of risk capital
Which of the following is true?
a) All of them
b) Only i) & ii)
c) Only ii) and iii)
d) Only i) and iii)
Other Parts
Risk Management Part 1
Risk Management Part 2
Risk Management Part 3
Risk Management Part 4
Risk Management Part 5
Risk Management Part 7
Risk Management Part 8
a) Operational risk
b) Asset liquidation risk
c) Market liquidity risk
d) Market risk
52. A bank hold a security which is rated as AA. The rating of the security migrates to A. Bank has faced _______ risk.
a) Operational risk
b) Asset liquidation risk
c) Market liquidity risk
d) Market risk
53 Which of the following are Stress testing techniques?
a) Downslide potential, Back Testing
b) Maximum Loss approach, Extreme Value Theory
c) Back Testing, Volatility testing
d) None of these
54. Basis point Value (BPV) is a measure of sensitivity of
a) Foreign currency open position
b) Equity price
c) Market value
d) Face value
55. One basis point is equal to:
a) 1%
b) 0.01%
c) 0.1%
d) None of these
56. Basis Point Value (BPV) is:
a) Change in value of a bond due to 1 basis point change in the coupon rate.
b) Change in value of a bond due to 1 basis point change in the market yield.
c) Change in value of a bond due to 1 basis point change in the stock index.
d) Change in value of a bond due to 1 basis point change in the inflation index .
57. The market value of a bond
a) Increases with increase in market yield.
b) Decreases with increase in market yield.
c) Remains static with change in market yield.
d) None of these.
58. BPV and Duration are market risk measures based on
a) downslide potential
b) sensitivity
c) both of them
d) none of them
59. VaR is not enough to assess market risk of a portfolio. Stress testing is desirable because
a) VaR measure is not accurate enough.
b) it helps in assessing risk due to abnormal movement of market parameters.
c) it heps as an additional measure.
d) it helps in calibrating VaR model.
60 A bank can have the following benefits through proper management of operational risks: i) Operational cost reduction ii) Competitive edge iii) Lesser allocation of risk capital
Which of the following is true?
a) All of them
b) Only i) & ii)
c) Only ii) and iii)
d) Only i) and iii)
Other Parts
Risk Management Part 1
Risk Management Part 2
Risk Management Part 3
Risk Management Part 4
Risk Management Part 5
Risk Management Part 7
Risk Management Part 8
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Risk Management
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