____________________claim receives ______________ capital requirement

• A) Unsecured, higher
• B) Unsecured, lower
• C) Secured, higher
• D) Secured, lower

A ____________________ is an option that permits the securitization exposures to be called before all of the underlying exposures have been repaid.

• A) Credit enhancement interest-only strip
• B) Asset backed commercial paper
• C) Clean-up calls
• D) Credit enhancement

Added protection is provided by the bank to the parties to the exposures in __________________.

• A) Credit enhancement
• B) Early amortization
• C) Clean-up calls
• D) Asset based commercial paper

What does the acronym SPE stand for?

• A) Special purpose entity
• B) Society of petroleum entity
• C) Society for paralingual education
• D) Supple point extraction

A _____________________occurs when the residual maturity of a hedge is less than that of the underlying exposure.

• A) Maturity mismatch
• B) Currency mismatch
• C) Security mismatch
• D) Liability mismatch

Which of the following occurs when the residual maturity of a hedge is less than that of the underlying exposure?

• A) A hedging mismatch
• B) A currency mismatch
• C) A maturity mismatch
• D) Asset liability mismatch

The External Credit Assessment Institutions (ECAI) must disclose its information ____________________ and _______________.

• A) All the given options
• B) Positively and negatively
• C) Qualitatively and quantitatively
• D) Objectively and subjectively

What does the acronym ABCP stand for?

• A) Asset-backed commercial paper
• B) American board of commercial perfusion
• C) Asset-backed common pledge
• D) African board of commercial paper

Information on assessment transition is required in _______________________.

• A) Negative disclosure
• B) Positive disclosure
• C) Quantitative disclosure
• D) Qualitative disclosure

Which of the following recognizes only collateral instruments and guarantees deemed to be reliably/identifiably of the very highest quality?

• A) 1968 Accord
• B) 1958 Accord
• C) 1988 Accord
• D) 1978 Accord

Double counting of credit risk mitigation is_______________.

• A) Offsetting the risk
• B) Not allowed
• C) Allowed with some conditions
• D) Allowed

Since when the markets for the transfer of credit risk have become more liquid and more complex?

• A) 1978
• B) 1988
• C) 1968
• D) 1958

Who does not wish to discourage partial hedging but seeks to adopt a prudent approach to the maturity risks arising?

• A) The creditor
• B) The committee
• C) The manager
• D) The shareholder

Which of the following maps into a risk weight equal or higher than that which applies to unrated claims?

• A) High quality credit assessment
• B) Strong quality assessment
• C) Low quality assessment
• D) Common quality credit assessment

For an unrated unsecured long-term claim,________________________ risk weight will be applied.

• A) 50%
• B) 100%
• C) 150%
• D) 200%

An early amortization can be either ____________ or _____________________.

• A) Variable, permanent
• B) Good, bad
• C) Strong, week
• D) Controlled, uncontrolled

Which of the following maps into a risk weight lower than that which applies to an unrated claim?

• A) Low quality assessment
• B) Weak quality assessment
• C) Moderate quality credit assessment
• D) High quality credit assessment

The credit risk mitigation has many broad treatments?

• A) Five
• B) Three
• C) Two
• D) Four

Which of the following is a structure where the cash flow from an underlying pool of exposures?

• A) Traditional securitization
• B) Mortgage securitization
• C) Asset securitization
• D) Synthetic securitization

Which one of the followings is a funded protection?

• A) Collateral
• B) Guarantees
• C) Bonds
• D) Credit derivatives