Which of the Following Is an Adequate Definition of the Term

question 10

Multiple Choice

Which of the following is an adequate definition of the term general market risk charge?

• A) A charge reflecting the risk of the decline in the liquidity of the trading portfolio.
• B) A charge reflecting the modified duration and interest rate shocks for each maturity.
• C) A charge reflecting the risk of the decline in the credit risk quality of the trading portfolio.
• D) A charge reflecting the duration and interest rate gaps for each maturity.

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Definitions:

Hypotenuse

The longest side of a right-angled triangle, opposite the right angle, calculated with the Pythagorean theorem.

Inches

A unit of length in the British imperial and United States customary systems of measurement, equal to 1/12 of a foot.

Hypotenuse

The longest side of a right-angled triangle, opposite the right angle, calculated as the square root of the sum of the squares of the other two sides.

Right Angle

An angle of 90 degrees.