A Charge Reflecting the Risk of the Decline in the Liquidity

question 97

True/False

A charge reflecting the risk of the decline in the liquidity or credit risk quality of the trading portfolio is the general market risk charge in the BIS framework.

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Definitions:

Accounting Period

A specific time span for which financial records are maintained and reported, such as a fiscal year or quarter.

Accumulated Depreciation

The total amount of an asset's cost that has been allocated as depreciation expense since the asset was put into use.

Contra-Asset Account

An account shown on the balance sheet that reduces the value of a related asset, used for accumulated depreciation or allowances for doubtful accounts.

Depreciation Schedule

A table detailing the periodic depreciation expense of an asset over its useful life.