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NEW QUESTION: 1
Which of the following was not a policy response introduced by Basel 2.5 in response to the global financial crisis:
A. Stressed VaR (SVaR)
B. Comprehensive Risk Model (CRM)
C. Incremental Risk Charge (IRC)
D. Comprehensive Capital Analysis and Review (CCAR)
Answer: D
Explanation:
Explanation
The CCAR is a supervisory mechanism adopted by the US Federal Reserve Bank to assess capital adequacy for bank holding companies it supervises. It was not a concept introduced by the international Basel framework.
The other three were indeed rules introduced by Basel 2.5, which was ultimately subsumed into Basel III.
Stressed VaR is just the standard 99%/10 day VaR, calculated with the assumption that relevant market factors are under stress.
The Incremental Risk Charge (IRC) is an estimate of default and migration risk of unsecuritized credit products in the trading book. (Though this may sound like a credit risk term, it relates to market risk - for example, a bond rated A being downgraded to BBB. In the old days, the banking book where loans to customers are held was the primary source of credit risk, but with OTC trading and complex products the trading book also now holds a good deal of credit risk. Both IRC and CRM account for these.) While IRC considers only non-securitized products, the CRM (Comprehensive Risk Model) considers securitized products such as tranches, CDOs, and correlation based instruments.
The IRC, SVaR and CRM complement standard VaR by covering risks that are not included in a standard VaR model. Their results are therefore added to the VaR for capital adequacy determination.
NEW QUESTION: 2
A. Option B
B. Option A
C. Option C
D. Option D
Answer: B
NEW QUESTION: 3
John Smith has made a claim for a benefit for which three product components exist, personal rate, adult-dependant rate, and child-dependant rate.
John Smith has been deemed eligible for a payment of $50 per week with respect to himself, $30 per week with respect to his wife, and $20 per week with respect to his child.
By default, how many individual nominees exist on this case?
A. One
B. Three
C. Two
D. Zero
Answer: A
NEW QUESTION: 4
A. Switch(config-if)#switchport mode trunk
B. Switch(config-if)#spanning-tree portfast
C. Switch(config-if)#switchport mode access
D. Switch(config-if)#spanning-tree guard root
Answer: A
Explanation:
The spanning-tree guard root cannot be enabled together with loop guard. The loop guard feature
is supposed to be used on the port receiving BPDU and guard root will shutdown the port as soon
as the first BPDU comes to that port.
Configuring portfast on the port connected to the other switch can create temporal loop.
Configuring access mode on the port can filter BPDU from other VLANs from coming to the port
and force loop guard feature to put this port into error-disabled state.
So the only command that can be issued without interfering with the operation of loop guard is "switchport mode trunk".
Reference:
http://www.cisco.com/en/US/tech/tk389/tk621/technologies_tech_note09186a0080094640.shtml
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