When Banks Calculate the Losses the Institution Would Incur If

question 100

Multiple Choice

When banks calculate the losses the institution would incur if an unusual combination of bad events happened,the bank is using the ________ approach.

• A)stress-test
• B)value-at-risk
• C)trading-loss
• D)maximum value

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Definitions:

Consolidated Statement

A financial report that combines the assets, liabilities, equity, income, expenses, and cash flows of a parent company and its subsidiaries.

Land Holding

Real estate or land owned by an individual or entity, including the natural resources and rights that come with the property.

Unrealized Profit

Profits that have been earned but not yet realized through a transaction, often related to investments that have increased in value but have not been sold.

Consolidation Purposes

The process of combining financial statements of separate business entities within a group for reporting as one entity.