MRTKT

What effect can happen on Bond price?

• The convexity effect

  
  

• The Effect of Coupon Rates

  
  

• The Effect of Maturity

  
  

• All of the above

  
  

EVE is a cash flow calculation that takes the ... of all asset cash flows and subtracts the present value of

• Present value

  
  

• Future value

  
  

• Book value

  
  

• Market value

  
  

Buying insurance to cover business risks is an example of managing business risk by:

• Holding

• Transfer

  
  

• Rescue

  
  

• Redressal

  
  

Which is a way to manage interest rates risk by security companies?

• long term loan rates is locked with floating interest rates

  
  

• Measure interest rates impact on EVE

  
  

• Measure interest rates risk impact on NII

  
  

• Adjust margin lending rates accordingly to changes in interest rates

  
  

Which of the following risks were not covered by Pillar-1 Minimum Capital Requirement?

• Credit risk

  
  

• Financial Risk

  
  

• Operational Risk

  
  

• Market risk

  
  

Which one of the following statements is true about the risk considered for capital requirements under Basel II?

• Credit risk, interest rate risk and foreign exchange risk

  
  

• Credit risk, market risk and operational risk

  
  

• Credit risk, political risk and country risk

  
  

• Credit risk, interest rate risk and political risk

  
  

Which of the following measures are not used by a risk‐averse person to minimize risk?

• Diversification of resources

  
  

• Insurance of risk event

  
  

• Total cost of resources

  
  

• Value of information of risk event

  
  

For calculating capital adequacy ratio, the banks are required to take into consideration which of the following risks?

• Credit risk

  
  

• Market risk

  
  

• Operational risk

  
  

• All of the above

  
  

The largest volume of foreign exchange trading takes place in ?

• China

  
  

• Germany

  
  

• United Kingdom

  
  

• USA

  
  

A simultaneous purchase and sale of foreign exchange for two different dates is called___.

• currency devalue

  
  

• currency swap

  
  

• currency valuation

  
  

• currency exchange