When Banks Calculate the Losses the Institution Would Incur If

question 100

Multiple Choice

When banks calculate the losses the institution would incur if an unusual combination of bad events happened,the bank is using the ________ approach.

• A)stress-test
• B)value-at-risk
• C)trading-loss
• D)maximum value

---

Definitions:

Invoice

A document issued by a seller to a buyer, listing goods or services provided, their prices, and payment terms.

Revocation

The act of officially withdrawing, cancelling, or annulling something, such as a license, will, or law.

Offeree

The person or entity to whom an offer is made in contract law.

Effective

Producing a decided, decisive, or desired effect, often used to describe rules, policies, or products that achieve their goals.