In General, a Bank Defines Its Value-At-Risk as the Estimated

question 59

True/False

In general, a bank defines its value-at-risk as the estimated potential loss from its trading businesses that could result from adverse movements in market prices.

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Definitions:

Ramifications

A consequence of an action or decision, often complex or unwelcome.

Competitive Price-Taker Model

A market situation where individual firms have no control over the price of a product, typically because of perfect competition.

Competition

The rivalry among businesses to attract customers, striving to achieve such goals as higher sales, market share, and innovation.

Price

The amount of money required to purchase a good or service.