What does the acronym SBP stand for in banking?

• A) Settlement Bank of Pakistan
• B) State Bank of Pakistan
• C) Standard Bank of Punjab
• D) Standard Bank of Pakistan

The definition of default, time horizon of the assessment and target of the assessment are required for________________________.

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

Which of the following are concerned with a description of the top firm entity within the group to which the capital standard applies?

• A) Incidental disclosures
• B) Accidental disclosures
• C) Quantitative disclosures
• D) Qualitative disclosures

In which of the following condition the supervisor should explain to the bank the risk characteristics specific to the bank which resulted in the requirement and any remedial action necessary?

• A) Where the capital requirements are set below the minimum for an individual bank
• B) Where the capital requirements are set below the minimum for multiple banks
• C) Where the capital requirements are set above the minimum for an individual bank
• D) Where the capital requirements are set above the minimum for multiple banks

Self-insurance is a special type of ________________________.

• A) Prevention
• B) Extension
• C) Retention
• D) Reduction

Which of the following may be carried out for purposes other than credit risk transfer (e.g. funding)?

• A) Purchase transactions
• B) Securitization transactions
• C) Digital transactions
• D) Request transactions

Which of the following can be statistically calculated using a measure of dispersion, such as the standard deviation?

• A) Subjective risk
• B) Objective risk
• C) Operational risk
• D) Sovereign risk

Which of the following are not currently subject to provincial registration or regulation, although a number of jurisdictions are considering the issue?

• A) Financial Planners
• B) Board of Directors
• C) Production Managers
• D) Sale Operators

Which of the following are the firms that specialize in providing advice to clients about investing in securities, but do not offer the trading services that are provided by dealers?

• A) Financial Advisers
• B) Sale Operators
• C) Board of Directors
• D) Production Managers

Which of the following is defined as uncertainty based on a person’s mental condition or state of mind?

• A) Subjective risk
• B) Operational risk
• C) Objective risk
• D) Sovereign risk

Risk concentrations can appear in a bank’s _____________.

• A) assets, liabilities, or off-balance sheet items
• B) assets only
• C) capital, liabilities or off-balance sheet items
• D) assets and liabilities only

Which of the following is the type of dealers?

• A) These are large national firms operating in only one province or territory or one city
• B) These are service stock brokerage firms that are opened to certain types of products
• C) Some offer clients a full range of trading, research and advisory services
• D) These are half service stock brokerage firms, unregistered to trade securities

In which of the following, both profit or loss is possible?

• A) Pure risk
• B) Particular risk
• C) Speculative risk
• D) Preferred risk

Which of the following is the probability that market interest rates will change and cause it to have lower profits or a decrease in the value of its equity?

• A) Credit risk
• B) Strategic risk
• C) Market risk
• D) Interest rate risk

Retention is used __________________________________,

• A) Losses are highly predictable
• B) When no other method of treatment is available
• C) The worst possible loss is not serious
• D) All available options

Which of the following can arise in a bank’s assets, liabilities, or off-balance sheet items, through the execution or processing of transactions (either product or service), or through a combination of exposures across these broad categories?

• A) Risk concentration
• B) Mental concentration
• C) Multiplication concentration
• D) Element concentration

A company can determine the maximum retention as a percentage of the firm’s____________________.

• A) Total assets
• B) Net income
• C) Net working capital
• D) Total liabilities

The criteria to be used for the assessment of the bank’s internal capital requirement must be ______________________ available.

• A) Officially
• B) Publicly
• C) Un-officially
• D) Privately

Captive insurer is _______________________ of the parent company.

• A) Banking concern
• B) All available option
• C) Subsidiary
• D) Independent

Which of the following is the condition that increases the chance of loss?

• A) Peril
• B) Indirect (consequential) loss
• C) Hazard
• D) Direct loss