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NEW QUESTION: 1
Which of the following statements is true:
I. Expected credit losses are charged to the unit's P&L while unexpected losses hit risk capital reserves.
II. Credit portfolio loss distributions are symmetrical
III. For a bank holding $10m in face of a defaulted debt that it acquired for $2m, the bank's legal claim in the bankruptcy court will be $10m.
IV. The legal claim in bankruptcy court for an over the counter derivatives contract will be the notional value of the contract.
A. III and IV
B. I and III
C. I, II and IV
D. II and IV
Answer: B
Explanation:
Explanation
Statement I is true as expected losses are the 'cost of doing business' and charged against the P&L of the unit holding the exposure. When evaluating the business unit, expected losses are taken into account. Unexpected losses however require risk capital reserves to be maintained against them.
Statement II is not true. Credit portfolio loss distributions are not symmetrical, in fact they are highly skewed and have heavy tails.
Statement III is true. The notional, or the face value of a defaulted debt is the basis for a claim in bankruptcy court, and not the market value.
Statement IV is false. In the case of over the counter instruments, the replacement value of the contract represents the amount of the claim, and not the notional amount (which can be very high!).
NEW QUESTION: 2
Which of these should be logged and managed as a problem?
A. Trend analysis shows a large number of similar incidents
B. A user requests delivery of a laptop
C. 'Continual improvement' needs to prioritize an improvement opportunity
D. A monitoring tool detects a change of state for a service
Answer: A
NEW QUESTION: 3
A network client has an ethernet interface configured with an IP address in the subnet
192.168.0.0/24. This subnet has a router, with the IP address 192.168.0.1, that connects this subnet to the Internet. What needs to be done on the client to enable it to use the router as its default gateway?
A. Run route add gw 192.168.0.1 eth1.
B. Run route add default gw 192.168.0.1 eth1.
C. Run ifconfig eth0 defaultroute 192.168.0.1.
D. Add "defaultroute 192.168.0.1" to /etc/resolv.conf.
E. Run route add defaultgw=192.168.0.1 if=eth0.
Answer: B
NEW QUESTION: 4
In triangle ABC, side AB is congruent to side BC. If the degree measure of B is b, which of the following
represents the degree measure of A?
A. 90-
B. 90-b
C. 180-
D. 180-b
E. . b
Answer: A