A peril that involves pure risk is _______________________________.

• A) Betting that Pakistan will win the Cricket World Cup at the beginning of the world cup
• B) A competitor’s attempt to take market share from a business
• C) The purchase of a stock with a high degree of price fluctuation
• D) A building fire that burns one of several company owned office buildings

Which of the following is the risk of loss due to the failure of internal processes?

• A) Operational risk
• B) Systematic credit risk
• C) Off-balance-sheet risk
• D) Firm-specific credit risk

There are ________________ broad treatments to credit risk management

• A) 4
• B) 2
• C) 3
• D) 1

Which of the following concern the amount of surplus capital of insurance companies included in the capital of the consolidated group?

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

_________________________ are not subject to maturity mismatch.

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

Which of the following must be treated as retained securitization exposures?

• A) Credit enhancement securitization exposures
• B) Excess spread securitization exposures
• C) Repurchased securitization exposures
• D) Asset backed securitization exposures

Credit risk management relates to the reduction of credit risk by ____________________.

• A) All given options
• B) Guarantees
• C) Collateral
• D) Credit derivatives

Support to a securitization in excess of bank’s predetermined contractual obligation is called _________________________.

• A) Implicit support
• B) Clean-up calls
• C) Excess spread
• D) Credit enhancement

If a clean-up call, when applied, is found to serve as a credit enhancement, the application of the clean-up call must be considered a form of ______________given by the bank.

• A) IT support
• B) implicit support
• C) explicit support
• D) moral support

All of the following are the objectives of post-loss, EXCEPT:

• A) Ensure survival of the firm
• B) Reduce anxiety
• C) Continue operations
• D) Maintain growth

_______________________ is the first step towards successful investment planning.

• A) Choosing financial advisor
• B) Choosing customer
• C) Choosing supervisor
• D) Choosing credit manager

Which of the following are the firms that are registered with securities regulators to buy or sell securities on behalf of clients?

• A) Customers
• B) Patrons
• C) Dealers
• D) Buyers

Which of the following is the first step in the risk management process?

• A) Select the appropriate techniques for handling losses
• B) Identify potential losses
• C) Implement and administer the program
• D) Evaluate potential losses

___________________ is the post-loss objective in insurance risk management.

• A) Goals of economy
• B) Reduction of anxiety
• C) Stability of earnings
• D) Meeting of legal obligation

All of the following are the objectives of pre-loss, EXCEPT:

• A) Reduce anxiety
• B) Prepare for potential losses in the most economical way
• C) Continue operations
• D) Meet any legal obligations

Which of the following described the exposure to the customers financially dependent on the same activity?

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