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WorksheetsRisk Management - Quiz #2
Total questions: 17
Worksheet time: 21mins
He assists in the trading of securities by taking orders from clients and arranging for them to be carried out on an exchange.
broker
waiter
banker
It is a company engaged in the business of dealing with financial and monetary transactions such as deposits, loans, investments, and currency exchange.
financial business
financial institution
financial management
It provides services to large corporations and institutional investors.
investment banking
commercial banking
industry banking
They accept deposits, make loans, safeguard assets, and work with many different types of clients, including the general public and businesses.
investment banking
commercial banking
industry banking
Central bank regulators require banks to hold capital for the risks they are bearing.
maybe
true
false
It is the possibility of a loss resulting from a borrower's failure to repay a loan or meet contractual obligations.
market risk
operational risk
credit risk
____ is the possibility of an investor experiencing losses due to factors that affect the overall performance of the financial markets in which he or she is involved.
market risk
credit risk
operational risk
It is also known as consumer banking or personal banking. Type of commercial banking that provides financial services to consumers as individuals.
retail banking
wholesale banking
investment banking
Its role is to provide protection against adverse events; the individual seeking protection is referred to as ____.
life insurance; beneficiary
life insurance; policyholder
life insurance; insured
It is a retirement plan that requires an employer to make contributions to a pool of funds set aside for a worker's future benefit.
pension plan
term plan
annuity plan
It refers to the trust that pools together the savings of investors who share a common financial goal.
stock funds
hedge funds
mutual funds
It is a practice where insurers transfer portions of their risk to other parties by an agreement to reduce obligations resulting from an insurance claim.
practice insurance
life insurance
reinsurance
What is the basic investment logic you learned today?
buy high, sell low
buy low, sell high
buy and sell
He is responsible for implementing fund strategies and manages portfolio trading activities.
fund director
fund strategist
fund manager
It is an alternative investment designed to protect investment portfolios from market uncertainty, while generating positive returns in both up and down markets.
hedge funds
mutual funds
money market funds
How does risk in banks affect its performance?
(Answer this in 1 sentence)
What is hedging?
(Answer in 1 sentence)
