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

If there are two assessments by ECAIs chosen by a bank corresponding to different risk weights, the _____________________ risk weight will be applied.

• A) Moderate
• B) Lower
• C) Neither higher nor lower
• D) Higher

Which of the following is the uncertainty in earnings due to misconduct by employees, computer errors, flooding, lightning strikes and other similar events?

• A) Capital risk
• B) Interest rate risk
• C) Liquidity risk
• D) Operational risk

The three-month interest rate futures being used to hedge a three-month loan. If the company had required a loan for more or less than three months then what would this situation be?

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

Credit derivatives help banks to ______________their risks that they do not wish to retain.

• A) Write off
• B) Sell
• C) Resell
• D) Buy

There may be sound economic reasons for acquiring a hedge with which of the following?

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

As a general rule, if short-term claims receive a 150% risk weight, an unrated unsecured long-term claim should receive which of the following risk weight?

• A) 150%
• B) 50%
• C) 100%
• D) 0%