Which of the Following Statements Is True

question 21

Multiple Choice

Which of the following statements is true?

• A) The BIS charges for unsystematic risk by adding the long and short positions in any given share and applying a 4 per cent charge against the gross position in the share.
• B) The BIS charges for unsystematic risk by adding the long and short positions in any given share and applying an 8 per cent charge against the gross position in the share.
• C) The BIS charges for unsystematic risk by adding the long and short positions in any given share and applying a 4 per cent charge against the net position in the share.
• D) The BIS charges for unsystematic risk by adding the long and short positions in any given share and applying an 8 per cent charge against the net position in the share.

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Definitions:

Loss on Acquisition

A financial loss that occurs when the cost to acquire a company or asset exceeds its fair value.

Gain on Sale

The profit realized from the sale of assets that exceeds the book value of those assets.

Other Comprehensive Income

Income that is not included in net income, including items that are not realized, such as foreign currency translation adjustments and unrealized gains or losses on investments.

Current Period Profit or Loss

The net income or loss for the current reporting period, reflecting the financial performance of an entity over that timeframe.