Eb Mod Mock Questions

8/18/2019 Eb Mod Mock Questions

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A bank which provides very large amounts of finance to business customers in a particular industry may be exposedto

Select one:

a. Capital concentration risk

b. Credit concentration risk

c. Diversification risk

d. Capital adequacy risk

Feedback

he correct answer is: Credit concentration risk

Question 2

Correct!ark ".## out of ".##

$lag question

Question text

A commonly used method of measuring investment risk inequities and bonds is the

Select one:

a. Capital asset pricing model

b. Capital value pricing model

c. Asset value pricing model

d. %anking book pricing mode

Feedback

he correct answer is: Capital asset pricing model

Question 3


&emove flag

Question text

A credit policy review should occur at which stage of a bank's credit process(

Select one:

a. Credit control) review and analysis

b. Credit recovery

c. Credit administration and monitoring

d. %usiness origination

Feedback

he correct answer is: Credit control) review and analysis

Question 4


$lag question

Question text

A document issued by a customer to an investment

manager which specifies the investment ob*ectives of aninvestment portfolio is known as an

Select one:

a. +nvestment indemnity

b. +nvestment mandate

c. +nvestment instruction

d. +nvestment waiver

Feedback

he correct answer is: +nvestment mandate

Question 5

+ncorrect!ark #.## out of ".##

$lag question

Question text

A large investment portfolio) established to pool the

investment funds of many different investors or beneficiaries is referred to as an

Select one:

a. +nvestment company

b. +nvestment fund

c. +nvestment cooperative

d. +nvestment cluster

Feedback

he correct answer is: +nvestment company

Question 6



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$lag question

Question text

A market trading strategy in which a bank seeks to offsetevery market transaction as quickly as possible with a

transaction in the opposite direction is known as

Select one:

a. !arket,to,market trading

b. !arket making

c. -edging

d. A matched book

Feedback

he correct answer is: A matched book

Question 7


$lag question

Question text

A measure of the sie of movements in a market price andalso the unpredictability of the direction of changes in

price) up or down is known as

Select one:

a. !arket volatility

b. /rice volatility

c. 0alue volatility

d. 1iability

Feedback

he correct answer is: /rice volatility

Question 8

+ncorrect

!ark #.## out of ".##

&emove flag

Question text

A reduction in the weighted average maturity of liabilitiesmay be an early indicator that

Select one:

a. 2xpected cash inflows for the bank will be higherthan anticipated

b. he bank will have to pay out more in cash sooner

than previously expected

c. 2xpected cash inflows for the bank will be lowerthan anticipated

d. he bank will have to pay out less in cash sooner

than previously expected

Feedback

he correct answer is: he bank will have to pay out morein cash sooner than previously expected

Question 9


$lag question

Question text

A requirement for minimum liquidity for banks has beenintroduced by

Select one:

a. /illar 3 of %asel ++

b. /illar " of %asel ++

c. /illar 4 of %asel ++

d. %asel +++

Feedback

he correct answer is: %asel +++

Question 10

Correct

!ark ".## out of ".##

$lag question

Question text

A revolution which disrupts trade and markets in the

country or countries affected is an example of

Select one:

a. 1iquidity risk


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b. Socio,political risk

c. Currency risk

d. +nterest rate risk

Feedback

he correct answer is: Socio,political risk

Question 11

Correct

!ark ".## out of ".##

$lag question

Question text

A risk,free investment has a beta factor of

Select one:

a. !ore than "

b. "

c. 1ess than " but more than #

d. #Feedback

he correct answer is: #

Question 12


$lag question

Question text

A time period in a maturity ladder is referred to as a

Select one:

a. !aturity bucket

b. $iscal quarter

c. &ung

d. !aturity period

Feedback

he correct answer is: !aturity bucket

Question 13


$lag question

Question text

According to %ank 5egara !alaysia's Corporate

6overnance 6uidelines) who is responsible for ensuringthere are adequate and effective operational procedures andinternal controls for assessing) measuring) controlling)

monitoring and reporting of risks(

Select one:

a. Senior management

b. he board

c. he chief risk officer

d. !iddle management

Feedback

he correct answer is: he board

Question 14

Correct

!ark ".## out of ".##

$lag question

Question text

According to the %asel framework) which one of thefollowing is an element of market risk(

Select one:

a. +nterest rate risk

b. 2vent risk

c. Systems risk

d. &eputation risk

Feedback

he correct answer is: +nterest rate risk

Question 15



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$lag question

Question text

According to the minimum capital requirements proposed by %asel +++ total capital must be at least

Select one:

a. 78 of risk,weighted assets at all times

b. 98 of risk,weighted assets at all times

c. .;8 of risk,weighted assets at all times

d. "#8 of risk,weighted assets at all times

Feedback

he correct answer is: 78 of risk,weighted assets at all

times

Question 16


&emove flag

Question text

According to the recommendations of the


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Select one:

a. he bank owns them and is free to sell them andthey have not been given as collateral for any borrowing

arrangement by the bank

b. hey have not been given as collateral for any borrowing arrangement by the bank

c. he bank owns them and is free to sell them

d. hey have an easily realised market value

Feedback

he correct answer is: he bank owns them and is free tosell them and they have not been given as collateral for any

borrowing arrangement by the bank

Question 20


$lag question

Question text

Assets that can be sold or used as collateral for secured

borrowing are known as

Select one:

a. angible assets

b. Soluble assets

c. 1iquefiable assets

d. Dissolvable assets

Feedback

he correct answer is: 1iquefiable assets

Question 21

Correct

!ark ".## out of ".##

&emove flag

Question text

At which level of a liquidity framework is an assessment of a bank's general funding structure) and in particular the

degree of its dependency on certain known volatile marketsmade(

Select one:

a. At the first level

b. At the second level

c. At the third level

d. At the fourth level

Feedback

he correct answer is: At the second level

Question 22


$lag question

Question text

%asel +++ recommends a countercyclical buffer for banksranging from

Select one:

a. #8 to ;8 of their risk,weighted assets

b. #.;8 to 4.;8 of their risk,weighted assets

c. #8 to 4.;8 of their r isk,weighted assets

d. #.;8 to "#8 of their risk,weighted assets

Feedback

he correct answer is: #8 to 4.;8 of their risk,weightedassets

Question 23


$lag question

Question text

Cash has a required stable funding fac tor of

Select one:

a. "#8

b. ;#8

c. ;8

d. #8

Feedback

he correct answer is: #8

Question 24


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$lag question

Question text

Central Credit &eference +nformation System is

Select one:

a. A bad cheque offender reporting system

b. A lead information system

c. A blacklist information system

d. An internal credit information system

Feedback

he correct answer is: An internal credit informationsystem

Question 25

Correct

!ark ".## out of ".##

&emove flag

Question text

Class 4 liquefiable assets for inclusion in the ad*usted

maturity profile cannot exceed what percentage of Class "liquefiable assets(

Select one:

a. ;#8

b. 4;8

c. "#8

d. ;8

Feedback

he correct answer is: ;#8

stion 26


&emove flag

Question text

Consideration of whether a bank has sufficient liquidity

surplus to sustain a sudden liquidity shock arising from acrisis that is specific to the bank occurs at which level ofliquidity measurement(

Select one:

a. he second level

b. he fourth level

c. he first level

d. he third level

Feedback

he correct answer is: he second level

Question 27


$lag question

Question text

Corporate bonds sold to the investing public must

Select one:

a. %e secured against property

b. %e risk free

c. -ave a credit ra ting from an officially recognised

agency

d. -ave a beta factor rating of "

Feedback

he correct answer is: -ave a credit rating from anofficially recognised agency

Question 28


&emove flag

Question text

Credit approval should occur at which stage of a bank'scredit process(

Select one:

a. Credit control) review and analysis


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b. Credit recovery

c. Credit administration and monitoring

d. %usiness origination

Feedback

he correct answer is: %usiness origination

Question 29

Correct

!ark ".## out of ".##

$lag question

Question text

Credit checking is an example of which type of riskcontrol(

Select one:

a. A detective control

b. A pre,transaction control

c. A post,transaction control

d. A corrective control

Feedback

he correct answer is: A pre,transaction control

Question 30


$lag question

Question text

Derivative instruments are closely associated with which of the following types of transactions(

Select one:

a. =ff balance sheet transactions

b. %anking book transactions

c. -edging transactions

d. !arket making transactions

Feedback

he correct answer is: -edging transactions

Question 31

+ncorrect

!ark #.## out of ".##

$lag question

Question text

Disaster recovery plans may also be referred to as

Select one:

a. %usiness stability plans

b. %usiness contingency plans

c. %usiness continuity plans

d. %lack swan event plans

Feedback

he correct answer is: %usiness continuity plans

Question 32


$lag question

Question text

$or the purpose of calculating a bank's liquidity coverage

ratio expected cash receipts cannot exceed

Select one:

a. 4;8 of cash outflows

b. >;8 of cash outflows

c. 9#8 of cash outflows

d. ;#8 of cash outflows

Feedback

he correct answer is: >;8 of cash outflows

Question 33



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&emove flag

Question text

$rom the following) who has the power to veto the grantingof credit by credit managers or personnel if the credit

arrangement will expose the bank to excessive andunacceptable risk(

Select one:

a. he chef risk officer

b. A senior manager

c. he board of directors

d. he chair of the board

Feedback

he correct answer is: he board of directors

Question 34

+ncorrect

!ark #.## out of ".##

$lag question

Question text

6overnment securities that are denominated in the

country's national currency are an example of a

Select one:

a. &isk $ree +nvestment

b. -igh &isk +nvestment

c. 1ow &isk +nvestment

d. !edium &isk +nvestment

Feedback

he correct answer is: &isk $ree +nvestment

Question 35

Correct

!ark ".## out of ".##

$lag question

Question text

+f %ank 5egara !alaysia provides emergency funding to a bank) it is acting as

Select one:

a. An emergency relief lender

b. A market maker

c. A fixed book lender

d. A lender of last resort

Feedback

he correct answer is: A lender of last resort

Question 36


$lag question

Question text

+n regards to financial stability) which of the followingstatements is $A1S2(

Select one:

a. $inancial stability is a necessary requirement foreconomic stability and economic growth

b. +n order to achieve financial stability within a

country) there must be financial stability throughout the banking system

c. Achieving financial stability is the sole

responsibility of %ank 5egara !alaysia

d. $inancial stability is needed to provide conditions

that are beneficial to the economy

Feedback

he correct answer is: Achieving financial stability is thesole responsibility of %ank 5egara !alaysia

Question 37


&emove flag

Question text


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+n the context of assessing liquidity risk) the ratio of loansto customer deposits can be described as

Select one:

a. A cash inflow

b. A net security mismatch

c. An exposure risk metric

d. A liquidity risk metric

Feedback

he correct answer is: A liquidity risk metric

Question 38


$lag question

Question text

+n the context of %asel ++) the definition of operational risk

excludes which one of the following(

Select one:

a. 1egal risk

b. +nternal process risk

c. Compliance risk

d. Strategic risk

Feedback

he correct answer is: Strategic risk

Question 39


&emove flag

Question text

+n the context of credit evaluation) which aspect of theCA!/A&+ model is concerned with determining the

percentage of the total finance needed that the bank is

willing to provide(

Select one:

a. &epayment terms

b. !argin of finance

c. Amount of loan

d. Ability to repay

Feedback

he correct answer is: !argin of finance

Question 40


&emove flag

Question text

+n the context of credit evaluation) which of the ;Cs isconcerned with assessing the security of employment of an

individual in the event of an economic downturn(

Select one:

a. Capital

b. Capacity

c. Conditions

d. Character

Feedback

he correct answer is: Conditions

Question 41


&emove flag

Question text

+n the context of credit evaluation) which of the ;Cs isconcerned with assessing the willingness of a customer torepay borrowed money(

Select one:

a. Capital

b. Capacity

c. Conditions

d. Character

Feedback

he correct answer is: Character

Question 42



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$lag question

Question text

+n the context of operation risk) the risk of losses due tofailures or weaknesses in internal processes and procedures

is known as

Select one:

a. +nternal systems risk

b. +nternal people risk

c. +nternal process risk

d. +nternal procedure risk

Feedback

he correct answer is: +nternal process risk

Question 43


&emove flag

Question text

+nvesting in an investment fund is an example of

Select one:

a. /ooling risks

b. ransferring risks

c. erminating risk

d. !aximising risk

Feedback

he correct answer is: /ooling risks

Question 44

Correct

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$lag question

Question text

+nvestment risk that is related to economic and other

conditions that affect market prices and investment returnsin general is known as

Select one:

a. Specific risk

b. Systematic risk

c. ?nsystematic risk

d. &esidual risk

Feedback

he correct answer is: Systematic risk

Question 45

+ncorrect

!ark #.## out of ".##

&emove flag

Question text

1iquidity risk is an example of

Select one:

a. A non,financial risk

b. A financial risk

c. A technology risk

d. An uncontrollable risk

Feedback

he correct answer is: A financial risk

Question 46


$lag question

Question text

1osses incurred from adverse movements in the market

price of gold are most readily associated with which of thefollowing categories of risk(

Select one:

a. +nternal risk

b. Credit risk


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c. !arket risk

d. Capital adequacy risk

Feedback

he correct answer is: !arket risk

Question 47

Correct

!ark ".## out of ".##

$lag question

Question text

!easures taken to keep cash in a secure place) to reduce therisk of theft are an example of

Select one:

a. A non,financial control

b. An internal control

c. A financial control

d. An external control

Feedback

he correct answer is: An internal control

Question 48


&emove flag

Question text

=f the following) which is an example of a credit riskreport which should be made to the board on an annual

basis(

Select one:

a. A report on all existing credit products of the bank)

the target markets for each of these products their

performance and credit quality

b. A report regarding the bank's total creditexposures) analysed by categories

c. A report regarding large concentrations of credit

d. A report regarding credit areas with high rapid

growth

Feedback

he correct answer is: A report on all existing credit products of the bank) the target markets for each of these

products their performance and credit quality

Question 49


$lag question

Question text

/assword controls in computer systems to preventunauthorised access to confidential programs and files arean example of

Select one:

a. /reventative controls

b. Detective controls

c. Corrective controls

d. /re,transaction controls

Feedback

he correct answer is: /reventative controls

Question 50


$lag question

Question text

/lans for responding to catastrophic loss events are knownas

Select one:

a. Disaster reaction plans

b. %lack swan response plans

c. Disaster recovery plans

d. Disaster resurgence plans

Feedback

he correct answer is: Disaster recovery plans


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tion 51


&emove flag

Question text

/rinciple 3 of supervisory review as stated by %asel is

Select one:

a. he banking supervisor should expect banks to

operate with more than the minimum regulatory capitalrequirement and should have the authority to instruct banksto hold capital in excess of the minimum requirement

b. he banking supervisor should intervene at an

early stage to prevent the capital of a bank from falling below the minimum level required to cover its risks

c. Supervisors should review and evaluate the

internal capital adequacy assessments of banks

d. %anks should have a process for a ssessing theiroverall capital adequacy in relation to their risk profile) as

well as a strategy for maintaining their capital levels

Feedback

he correct answer is: he banking supervisor should

expect banks to operate with more than the minimumregulatory capital requirement and should have the

authority to instruct banks to hold capital in excess of theminimum requirement

Question 52


$lag question

Question text

&egular buying and selling activities in financial markets)where a bank seeks to make profits from continual dealing

is known as

Select one:

a. +nvestment portfolio operations

b. %alance sheet operations

c. rading book operations

d. !arket,to,market operations

Feedback

he correct answer is: rading book operations

Question 53


$lag question

Question text

&eturns after allowing for the effect of inflation as well astaxation are referred to as

Select one:

a. $orecast returns

b. 5ominal returns

c. &eal returns

d. 2xpected returns

Feedback

he correct answer is: &eal returns

Question 54

Correct

!ark ".## out of ".##

$lag question

Question text

esting the validity of a risk model by comparing actualevents with the predictions of the model is known as

Select one:

a. %ack testing

b. 2xposure testing

c. -istorical testing

d. Comparative analysis

Feedback

he correct answer is: %ack testing

Question 55



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&emove flag

Question text

he Central Credit &eference +nformation System holdsinformation about arrears on payments for a credit

arrangement which have occurred over the

Select one:

a. 1ast "4 months

b. 1ast "7 months

c. 1ast 4 months

d. 1ifetime of the credit arrangement

Feedback

he correct answer is: 1ast 4 months

Question 56


&emove flag

Question text

he chair of a credit risk committee must

Select one:

a. 5ot be an executive director of the bank

b. 5ot be a director with executive powers to

approve the granting of credit

c. 5ot be a non,executive director of the bank

d. %e a director with executive powers to approve thegranting of credit

Feedback

he correct answer is: 5ot be a director with executive

powers to approve the granting of credit

Question 57

Correct

!ark ".## out of ".##

$lag question

Question text

he difference between average returns on investments inthe market and the risk, free rate of return is known as the

Select one:

a. !arket risk premium

b. Capital risk premium

c. +nvestment risk premium

d. Asset risk premium

Feedback

he correct answer is: !arket risk premium

Question 58


&emove flag

Question text

he difference between estimates of contractual cashinflows and contractual cash inflows in a given time period

is known as a

Select one:

a. 6ross funding requirement

b. 5et funding requirement

c. Security mismatch

d. Capital mismatch

Feedback

he correct answer is: 5et funding requirement

Question 59


&emove flag

Question text

he document for recording risks) the assessment of risks)responsibilities for management of the risk and risk

management measures taken to deal with the risk is knownas a

Select one:


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a. &isk process mandate

b. &isk map

c. &isk register

d. &isk recovery plan

Feedback

he correct answer is: &isk register

Question 60


$lag question

Question text

he ease of disposal of the assets provided as collateral

must be considered when assessing an application for

Select one:

a. Secured finance

b. ?nsecured finance

c. A current account

d. A savings account

Feedback

he correct answer is: Secured finance

Question 61

+ncorrect

!ark #.## out of ".##

&emove flag

Question text

he effect of an adverse risk event) typically measured bythe loss that will occur when an adverse risk event occurs is

known as

Select one:

a. A risk outcome

b. A risk driver outcome

c. he impact of risk

d. 2xpected loss

Feedback

he correct answer is: he impact of risk

Question 62


&emove flag

Question text

he limit placed on banks by %ank 5egara !alaysia whichlimits the maximum amount of equities that !alaysian

banks can hold states that a bank's investment in shares@excluding shares in subsidiary companies must notexceed

Select one:

a. ;8 of the bank's capital base

b. 4;8 of the bank's capital base

c. ";8 of the bank's capital base

d. 4#8 of the bank's capital base

Feedback

he correct answer is: 4;8 of the bank's capital base

Question 63


$lag question

Question text

he ma*or source of funding for a commercial bank is

Select one:

a. Customer deposits

b. Secured finance

c. ?nsecured finance

d. Short,term lending

Feedback

he correct answer is: Customer deposits

Question 64



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&emove flag

Question text

he method of calculating risk weighted assets and theminimum capital requirement for market risk) using

internal market risk models of the bank is known as

Select one:

a. +nternal &atings,%ased Approach

b. +nternal Controls,%ased Approach

c. +nternal &isk Assessment Approach

d. +nternal !odels Approach

Feedback

he correct answer is: +nternal !odels Approach

Question 65


$lag question

Question text

he minimum liquidity coverage ratio requirement isintended to ensure that banks have a sufficient amount of

cash and high,quality liquid assets to survive a significantstress scenario lasting for

Select one:

a. "4# calendar days

b. 3# calendar days

c. " year

d. 9# calendar days

Feedback

he correct answer is: 3# calendar days

Question 66


$lag question

Question text

he period of time over which 0alue at &isk is measured is

known as

Select one:

a. An observance period

b. A compliance period

c. An analysis period

d. A holding period

Feedback

he correct answer is: A holding period

Question 67

Correct

!ark ".## out of ".##

$lag question

Question text

he ratio for comparing the expected stable funding of a bank for the next year with the stable funding that it should

have in order to avoid liquidity risk is known as the

Select one:

a. 5et stable funding ratio

b. 5et stable liquidity ratio

c. 6ross stable funding ratio

d. 5et stable capital ratio

Feedback

he correct answer is: 5et stable funding ratio

Question 68


$lag question

Question text

he ratio of an organisation's debts to equity capital isknown as

Select one:

a. Capital ratio


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b. 1iquidity ratio

c. Assets ratio

d. 1everage ratio

Feedback

he correct answer is: 1everage ratio

Question 69

Correct

!ark ".## out of ".##

$lag question

Question text

he requirement that banks have a system for the reportingof authorised and unauthorised breaches of limits to an

appropriate level of management in the bank is known as

Select one:

a. +nternal control breech reporting

b. !arket risk reporting

c. 2xception,based reporting

d. Concentration limit reporting

Feedback

he correct answer is: 2xception,based reporting

Question 70

Correct

!ark ".## out of ".##

$lag question

Question text

he risk of having insufficient cash to meet paymentobligations is known as

Select one:

a. Cash flow risk

b. Asset risk

c. Capital risk

d. 1iquidity risk

Feedback

he correct answer is: 1iquidity risk

Question 71

Correct

!ark ".## out of ".##

&emove flag

Question text

he risk that the public perception of the bank will bedamaged because of unfavourable reports about the bank inthe media) or from customer dissatisfaction with the bank's

services is known as

Select one:

a. &eputation risk

b. Commercial risk

c. %usiness risk

d. Customer service risk

Feedback

he correct answer is: &eputation risk

Question 72


&emove flag

Question text

he sale of a business line by a bank is an example of a

Select one:

a. 1egal risk

b. %usiness risk

c. $unding source

d. 1iability

Feedback

he correct answer is: $unding source

Question 73



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&emove flag

Question text

he total amount of credit provided by a bank) and thespread of this credit between different types of loan or

different types of customers is known as

Select one:

a. A credit portfolio

b. A banking book

c. An investment portfolio

d. A balance sheet

Feedback

he correct answer is: A credit portfolio

Question 74


$lag question

Question text

ier " must be at least

Select one:

a. 78 of risk,weighted assets at all times

b. "#8 of risk,weighted assets at all times

c. 98 of risk,weighted assets at all times

d. .;8 of risk,weighted assets at all times

Feedback

he correct answer is: .;8 of risk,weighted assets at alltimes

Question 75


&emove flag

Question text

?nauthorised data manipulation is most readily associated

with which of the following categories of risk(

Select one:

a. echnology risk

b. !oney laundering risk

c. Control risk

d. %usiness risk

Feedback

he correct answer is: echnology risk

tion 76

Incorrect

Mark 0.00 out of 1.00

Remove ag

Question text

Under which method of cacuating the

minimum ca!ita re"uirement for o!erationa

risk are the o!erations of a bank divided into

eight se!arate business ines in order for a

minimum ca!ita re"uirement to be cacuated

for each business ine se!arate#$

%eect one&

a. 'he (dvanced Measurement (!!roach

b. 'he )asic Indicator (!!roach

c. 'he %tandardised (!!roach

d. 'he (dvanced Indicator (!!roach

Feedback

'he correct answer is& 'he %tandardised

(!!roach

Question 77

*orrect


Fag "uestion


18/24

Question text

Unencumbered high "uait# i"uid assets that

are easi# convertibe into cash at short notice

are

%eect one&

a. *ass + i"ue,abe assets

b. *ass - i"ue,abe assets

c. *ass 1 i"ue,abe assets

d. *ass i"ue,abe assets

Feedback

'he correct answer is& *ass 1 i"ue,abe assets

Question 78

*orrect


Fag "uestion

Question text

/hat is the !ro!osed amount of additiona

ca!ita that a s#stemica# signi,cant ,nancia

institution shoud retain in addition to the

minimum ca!ita re"uirements !ro!osed in

)ase III$

%eect one&

a. )etween +. and of risk2weighted

assets

b. )etween and 3. of risk2weighted

assets

c. )etween 1 and of risk2weighted

assets

d. )etween 1 and +. of risk2weighted

assets

Feedback

'he correct answer is& )etween 1 and +. of

risk2weighted assets

Question 79

*orrect


Fag "uestion

Question text

/hat t#!e of risk exists when the future

outcome ma# be either better or worse than

ex!ected$

%eect one&

a. Residua risk

b. %!ecuative risk

c. Inherent risk

d. 4ure risk

Feedback

'he correct answer is& %!ecuative risk

Question 80

*orrect


Fag "uestion

Question text

/hen assessing ex!ected osses5 bank ma# be

abe to assess the !robabiit# of oss from a

given risk ex!osure5 and the si6e of the oss

when an adverse risk event occurs using which

t#!e of data$

%eect one&

a. 7istorica data

b. Market data

c. 8omina !ricing data

d. (ctua !ricing data

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'he correct answer is& 7istorica data

Question 81

*orrect


19/24


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Question text

/hen traveing b# car5 the sma risk that #ou

ma# be invoved in a road accident is known as

%eect one&

a. )ackground risk

b. 9e,ned risk

c. Uncontroed risk

d. 4ure risk

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'he correct answer is& 4ure risk

Question 82

*orrect


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Question text

/hich as!ect of a bank:s organisation structure

is res!onsibe for ana#sing the market risk in

dai# trades in the market5 monitoring the

bank:s ex!osures to risk and checking that

ex!osures are within the imits set b#

management$

%eect one&

a. 'he bank:s midde o;ce

b. 'he board risk committee

c. 'he bank:s back o;ce

d. 'he bank:s front o;ce

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'he correct answer is& 'he bank:s midde o;ce

Question 83

*orrect


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Question text

/hich as!ect of a bank:s organisation structure

is res!onsibe for recording transactions that

are made b# traders$

%eect one&

a. 'he bank:s midde o;ce

b. 'he board risk committee

c. 'he bank:s back o;ce

d. 'he bank:s front o;ce

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'he correct answer is& 'he bank:s back o;ce

Question 84

*orrect


Fag "uestion

Question text

/hich of the foowing is a borrowing faciit#

where a the avaiabe funds need not be

drawn down immediate#$

%eect one&

a. ( government bond

b. (n unsecured bond

c. ( secured bond

d. ( credit ine

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'he correct answer is& ( credit ine

Question 85

Incorrect



20/24

Fag "uestion

Question text

/hich of the foowing is an exam!e of a

backist information s#stem$

%eect one&

a. )usiness and %earch Information

%ervices

b. *entra *redit Reference Information

%#stem

c. 9ishonoured *he"ues Information

%ervice

d. *redit 'i!2m!o#ees 4rovident Fund

b. ( unit trust com!an#

c. ( takafu !rovider

d. )ank 8egara Maa#sia

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'he correct answer is& 'he >m!o#ees

4rovident Fund

Question 87

*orrect


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Question text

/hich of the foowing is cacuated b#

muti!#ing the current baances of various

t#!es of iabiities and o=2baance sheet

commitments b# a run2o= rate$

%eect one&

a. 'ota ex!ected cash outows

b. )anking book risk rate

c. 'ota ex!ected cash inows

d. Market iabiit#

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'he correct answer is& 'ota ex!ected cash

outows

Question 88

*orrect


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Question text

/hich of the foowing is cacuated muti!#ing

the current baances of various t#!es of

contractua amounts receivabe b# rates at

which the# are ex!ected to ow in under a

stress scenario$

%eect one&

a. 'ota ex!ected cash outows

b. )anking book risk rate

c. 'ota ex!ected cash inows


21/24

d. Market iabiit#

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'he correct answer is& 'ota ex!ected cash

inows

Question 89

*orrect


Fag "uestion

Question text

/hich of the foowing is 8

Question text

/hich of the foowing is 8


22/24

d. 'ransact

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'he correct answer is& 'ransact

Question 93

*orrect


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Question text

/hich of the foowing is the east stabe source

of funding for a bank$

%eect one&

a. %hort2term interbank borrowing

b. >"uit#

c. Retai de!osits

d. )ank bond

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'he correct answer is& %hort2term interbank

borrowing

Question 94

*orrect


Fag "uestion

Question text

/hich of the foowing statements is 'RU>$

%eect one&

a. %#stematic risk can be eiminated

through diversi,cation in the investment

!ortfoio

b. Uns#stematic risk cannot be eiminated

through diversi,cation of investments

c. %#stematic risk cannot be eiminated

through diversi,cation in the investment

!ortfoio

d. Uns#stematic risk on# a!!ies to

investment funds

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'he correct answer is& %#stematic risk cannot

be eiminated through diversi,cation in the

investment !ortfoio

Question 95

*orrect


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Question text

/hich of the foowing terms describes

measures that reduce the risks for an

organisation$

%eect one&

a. Risk toerance measures

b. Mitigation of risk

c. Risk absor!tion measures

d. *om!ression of risk

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'he correct answer is& Mitigation of risk

Question 96

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Question text


23/24

/hich one of the foowing shoud be a reiabe

source of funding for a bank in the event of a

i"uidit# crisis$

%eect one&

a. 9rawdown of unused !art of a forma

credit ine

b. Interbank borrowing

c. Issue of new shares b# the bank

d. 4urchase of unencumbered high "uait#

i"uid assets

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'he correct answer is& 9rawdown of unused

!art of a forma credit ine

Question 97

*orrect


Fag "uestion

Question text

/hich t#!e of bu=er is ke!t in reserve b# a

bank to be used when an economic boom turns

into economic sow2down or recession5 so that

bank ending need not be restricted$

%eect one&

a. ( sef2reguated bu=er

b. ( counterc#cica bu=er

c. ( market conservation bu=er

d. ( market securit# bu=er

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'he correct answer is& ( counterc#cica bu=er

Question 98

*orrect


Fag "uestion

Question text

/hich t#!e of risk imit sets a imit on the

number of transactions that mature within a

given !eriod of time$

%eect one&

a. ( voume imit

b. ( tenor imit

c. ( oss contro imit

d. ( ca!ita imit

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'he correct answer is& ( tenor imit

Question 99

*orrect


Fag "uestion

Question text

/ho gives !ermission for a bank to use its

interna risk modes for reguator# !ur!oses5 to

measure credit risk or market risk$

%eect one&

a. )ank 8egara Maa#sia

b. )ase *ommittee

c. )oard of directors of the bank

d. >xterna auditors of the bank

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'he correct answer is& )ank 8egara Maa#sia

Question 100

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Question text


24/24

/ho is res!onsibe for deveo!ing a i"uidit#

risk management strateg# that is consistent

with the bank:s i"uidit# risk toerance$

%eect one&

a. >xecutive board members

b. %enior management

c. 'he chief risk o;cer

d. 'he chair of the board risk committee

Feedback

'he correct answer is& %enior management

Documents

Eb Mod Mock Questions