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NEW QUESTION: 1
Which of the following BEST describes malicious software that demands the end-user pay a fee or face the destruction of their files?
A. Ransomware
B. Virus
C. Trojan
D. Spyware
Answer: A
NEW QUESTION: 2
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A. Meeting with the CIO directly
B. Getting into the office of IT
C. Getting into the office of finance
D. Meeting only with the CFO
Answer: C
NEW QUESTION: 3
Which devices support cluster?
A. NGIPSv
B. FTD
C. All of them
Answer: B
NEW QUESTION: 4
What would be the consequences of a model of economic risk capital calculation that weighs all loans equally regardless of the credit rating of the counterparty?
I. Create an incentive to lend to the riskiest borrowers
II. Create an incentive to lend to the safest borrowers
III. Overstate economic capital requirements
IV. Understate economic capital requirements
A. I and IV
B. II and III
C. III only
D. I only
Answer: A
Explanation:
Explanation
If capital calculations are done in a standard way regardless of risk (as reflected by credit ratings), then it creates a perverse incentive for the lenders' employees to lend to the riskiest borrowers that offer the highest expected returns as there is no incentive to 'save' on economic capital requirements that are equal for both safe and unsafe borrowers. Therefore statement I is correct.
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Statements II and III are incorrect and Choice 'b' is the correct answer.
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Feedbacks
Aalk - 2014-05-05 16:45:18
Plato - 2014-05-05 16:45:51
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Eleanore - 2014-09-28 16:36:48