All the dealers and advisors must be registered with _________________________.

• A) Banking regulator
• B) Provincial or territorial regulator
• C) Financial organization
• D) Operational regulator

Who supports a pragmatic approach of mutual recognition for internationally active banks as a key basis for international supervisory co-operation?

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

Which one of the following is not a risk financing tool?

• A) Loss prevention
• B) Commercial insurance
• C) Noninsurance transfer
• D) Retention

Spreading losses incurred by the few over the entire group is a characteristic of _______.

• A) Hedging
• B) Underwriting
• C) Insurance
• D) Gambling

Risk management process contains _____________ steps.

• A) 4
• B) 3
• C) 5
• D) 2

Which of the following situations best explain loss exposure?

• A) The vehicles parked in a monitored parking garage
• B) A plant that may be damaged by an earthquake
• C) The possession of more short-term liabilities than short-term assets
• D) The extension from transportation to games and video stores

The single most important cause of major problems in banks is ___________________________.

• A) Risk tolerance
• B) Diversification
• C) Risk concentration
• D) Risk avoidance

Exposure to a single collateral type is _________________.

• A) Non-risk concentration exposure
• B) Risk collateral exposure
• C) Risk concentration exposure
• D) Risk concentration expense

Which of the following involves risks that are typically uninsurable?

• A) Underwriting
• B) Insurance
• C) Gambling
• D) Hedging

Which of the following is any single exposure or group of exposures with the potential to produce losses large enough to threaten bank’s ability to maintain its core operations?

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

A bank can exercise the _____________when the cost of servicing the outstanding debt exceeds the benefits of the servicing the underlying exposures.

• A) Guarantee
• B) Clean-up calls
• C) Warrantee
• D) Contract

Wherever possible, who should avoid performing redundant and uncoordinated approval and validation work in order to reduce the implementation burden on banks?

• A) Top level managers
• B) Supervisors
• C) Middle level managers
• D) Lower level managers

Which of the following is the process that identifies loss exposures faced by an organization and selects the most appropriate techniques for treating such exposures?

• A) Operations management
• B) Knowledge management
• C) Quality management
• D) Risk management

What is the responsibility of the host country supervisors?

• A) To supervise the entities operating in other countries
• B) To wind up the entities operating in their countries
• C) To wind up the entities operating in other countries
• D) To supervise the entities operating in their countries

Cash advance fees is an example of:

• A) Charges not to be paid by the underlying obligors
• B) Other fees and charges to be received by the underlying obligors
• C) Other fees and charges to be paid by the underlying obligors
• D) Other off-balance sheet items to be paid to the underlying obligors

A financially ______________ firm can have __________________ retention level.

• A) Weak, No
• B) Weak, higher
• C) Strong, higher
• D) Strong, lower

Retaining and repurchasing significant securitization exposures depend upon the amount of ______________ hold by the originator bank.

• A) Funds
• B) Capital
• C) Finance
• D) Risk

Which of the following is a technique for handing an already existing pure risk?

• A) Hedging
• B) Gambling
• C) Underwriting
• D) Insurance

Uncertainty relating to the happening of a loss is called ________.

• A) Subjective probability
• B) Objective probability
• C) Risk
• D) Peril

An insurer is least likely to insure?

• A) Objective risk
• B) Pure risk
• C) Speculative risk
• D) Static risk