10-61 the Specific Risk Charge in the BIS Standardized Framework

question 86

Multiple Choice

10-61 The specific risk charge in the BIS standardized framework of market risk measurement

• A)reflects the product of the modified durations and the interest rate shocks.
• B)measures the credit risk quality of the trading portfolio.
• C)measures the vertical offsets of the portfolio.
• D)measures the decline in liquidity of the portfolio.
• E)More than one of the above is correct.

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Definitions:

Persuasion

The act or process of influencing someone's beliefs, attitudes, intentions, motivations, or behaviors through arguments, reasoning, or appeal.

Negative Consequences

Undesirable outcomes or penalties that result from a specific behavior or action, often serving as a deterrent for the behavior.

Emotional Capabilities

The skills or abilities to recognize, understand, manage, and use one's own emotions and those of others effectively in interpersonal interactions.

Management by Objectives

A strategic management model that aims to improve the performance of an organization by clearly defining objectives that are agreed to by both management and employees.