Exam 7: Risks of Financial Institutions
Exam 1: Why Are Financial Institutions Special90 Questions
Exam 2: Deposit-Taking Institutions43 Questions
Exam 3: Finance Companies71 Questions
Exam 4: Securities, Brokerage, and Investment Banking91 Questions
Exam 5: Mutual Funds, Hedge Funds, and Pension Funds61 Questions
Exam 6: Insurance Companies80 Questions
Exam 7: Risks of Financial Institutions110 Questions
Exam 8: Interest Rate Risk I110 Questions
Exam 9: Interest Rate Risk II116 Questions
Exam 10: Credit Risk: Individual Loans112 Questions
Exam 11: Credit Risk: Loan Portfolio and Concentration Risk51 Questions
Exam 12: Liquidity Risk85 Questions
Exam 13: Foreign Exchange Risk87 Questions
Exam 14: Sovereign Risk89 Questions
Exam 15: Market Risk95 Questions
Exam 16: Off-Balance-Sheet Risk101 Questions
Exam 17: Technology and Other Operational Risks107 Questions
Exam 18: Liability and Liquidity Management38 Questions
Exam 19: Deposit Insurance and Other Liability Guarantees54 Questions
Exam 20: Capital Adequacy102 Questions
Exam 21: Product and Geographic Expansion114 Questions
Exam 22: Futures and Forwards234 Questions
Exam 23: Options, Caps, Floors, and Collars113 Questions
Exam 24: Swaps95 Questions
Exam 25: Loan Sales83 Questions
Exam 26: Securitization Index98 Questions
Select questions type
A Canadian bank has €40 million in assets and €50 million in CDs. All other assets and liabilities are in Canadian dollars. This bank is
(Multiple Choice)
4.8/5
(44)
Technology risk is the uncertainty that economies of scale or scope will be realized from the investment in new technologies.
(True/False)
4.8/5
(31)
During a liquidity crisis assets normally must be sold at a loss because of the rising interest rates caused by financial institutions attempting to raise funds.
(True/False)
4.7/5
(38)
Many of the various risks faced by an FI often are interrelated with each other.
(True/False)
4.8/5
(30)
Which of the following situations pose a refinancing risk for an FI?
(Multiple Choice)
4.9/5
(33)
Because the economies of Canada and other countries have become more integrated, the risks of financial intermediation have decreased.
(True/False)
4.7/5
(38)
Matching the maturities of assets and liabilities supports the asset transformation function of FIs.
(True/False)
4.9/5
(36)
Bank of the Atlantic has liabilities of $4 million with an average maturity of two years paying interest rates of 4.0 percent annually. It has assets of $5 million with an average maturity of 5 years earning interest rates of 6.0 percent annually. What is the bank's net interest income in dollars in year 3, if it refinances all of its liabilities at a rate of 8.0 percent?
(Multiple Choice)
4.7/5
(39)
Politically motivated limitations on payments of foreign currency may expose an FI to
(Multiple Choice)
4.8/5
(37)
An FI can hold assets denominated in a foreign country, but it cannot issue foreign liabilities.
(True/False)
4.8/5
(28)
"Matching the book" or trying to match the maturities of assets and liabilities is intended to protect the FI from
(Multiple Choice)
4.7/5
(28)
In the case where a borrower defaults on a loan, the FI may lose only a portion of the principal that was loaned.
(True/False)
4.8/5
(41)
The relationship of a limited or fixed upside return with a high probability and the potential large downside loss with a small probability is an example of an asset's credit risk to an FI.
(True/False)
4.9/5
(28)
As commercial banks move from their traditional banking activities of deposit taking and lending and shift more of their activities to trading, they are more subject to
(Multiple Choice)
4.9/5
(23)
The asset transformation function potentially exposes the FI to
(Multiple Choice)
4.8/5
(44)
The objective of technological expansion is to achieve economies of scale at the expense of diseconomies of scope.
(True/False)
4.8/5
(35)
Foreign exchange risk is that the value of assets and liabilities may change because of changes in the foreign exchange rate between two countries.
(True/False)
5.0/5
(45)
The BIS definition: "the risk of loss resulting from inadequate or failed internal processes, people, and systems or from external events," encompasses which of the following risks?
(Multiple Choice)
4.7/5
(37)
Which function of an FI involves buying primary securities and issuing secondary securities?
(Multiple Choice)
4.9/5
(26)
Showing 61 - 80 of 110
Filters
- Essay(0)
- Multiple Choice(0)
- Short Answer(0)
- True False(0)
- Matching(0)