Along with the Value at Risk Model,which Is the Other

question 10

Multiple Choice

Along with the value at risk model,which is the other model that determines each bank's unique market risk exposure and the amount of capital it needs?

• A)Internal modeling.
• B)Systemic modeling.
• C)Credit risk modeling.
• D)Borrower credit ratings.
• E)Damage testing.

---

Definitions:

Strategies

Plans or methods devised to achieve a specific goal or solve a problem.

Reticular Activation System

A network of neurons located in the brainstem that regulates wakefulness and sleep-wake transitions.

Basic Tendency

An inherent inclination or predisposition of an individual's personality that remains relatively stable over time, irrespective of external factors.

Temperament

Biologically based tendency to feel or act in certain ways.