Which of the Following Statements Is True

question 29

Multiple Choice

Which of the following statements is true?

• A) The major models used by banks in calculating market risk exposures are RiskMetrics, Monaco simulation and Historic (back) calculation.
• B) The major models used by banks in calculating market risk exposures are CreditMetrics, Monte Carlo simulation and Historic (back) calculation.
• C) The major models used by banks in calculating market risk exposures are RiskMetrics, Monte Carlo simulation and Historic (back) calculation.
• D) The major models used by banks in calculating market risk exposures are CreditMetrics, Monte Carlo simulation and Forward calculation.

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Definitions:

National Debt

The total amount of money that a country's government has borrowed, by various means.

Loanable Funds

The total amount of capital available for borrowing, often used in the context of the market for loans.

Interest Rates

Interest rates are the percentages charged or paid for the use of money on loans or deposits, influencing economic activities like borrowing and investing.

Loanable Funds

The funds available for borrowing, which are determined by the savings and investments in an economy.