Professional Documents
Culture Documents
o Risk taking
o Avoiding risk
o Taking calculated risk.
o Risk elimination
o Physical Capital
o VAR capital
o Economic Capital
Q4)What is the process of considering entity wide risks and trying to integrate risk considerations in
business called?
o Scenario Analysis
o Stress Testing
o Calculating expected loss
o Enterprise risk Management
o Bonds
o Derivatives
o Fixed deposits
o Treasury bills
Q6)If market interest rate inreases what will happen to given security
Q8)Commodity price risk does not show which of the following traits
o Monetary loss due to unhedged foreign currency position
o Less trading liquidity as compared to stocks
o Significan price discontinuities
o Concentration with few players
Q10)If partys Net gain in positin is $400,000 and recovery rate is 30% than what is loss given
default?
o 300,000
o 280,000
o 120,000
o 0
Q11)When an entity is unable to buy or sell a security beacuse of inabilty to find a counterparty is
called as
o Concentration risk
o Funding liquidity risk
o Trading liquidity risk
o Credit risk
o Technology inadequacy
o Insufficient internal contol
o Fraud
o Downgrade of credit rating
Q14)Whic of the following stakeholders will want the risk to be as low as possible?
o Equity holder
o Debtholder
o Board of director
o Esop holders
o Finance
o Operation
o Risk management
o Trading room mngt
o Finance
o Operation
o Risk management
o Trading room mngt
o Finance
o Operation
o Risk management
o Trading room mngt