When Using the BIS Standardized Model (Partial Risk Factor Approach)

question 97

True/False

When using the BIS standardized model (partial risk factor approach) to determine capital requirements of the trading book, correlations for equity risk are set by the Federal Reserve.

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Definitions:

Systematic Desensitization

A behavioral therapy technique used to help individuals overcome phobias and other anxiety disorders by gradually exposing them to the object or situation of their fear while teaching them relaxation techniques.

Phobias

Irrational fears of specific objects, activities, or situations, leading to intense anxiety and avoidance behavior.

Psychotherapy

A therapeutic treatment method used by mental health professionals to explore and help resolve personal, behavioral, or psychological problems.

Participant Modeling

A therapeutic technique where a therapist demonstrates a behavior to help a client learn and reproduce it.