Consider an FI with the Following Off-Balance-Sheet Items: a Two-Year

question 37

Multiple Choice

Consider an FI with the following off-balance-sheet items: A two-year loan commitment with a face value of $120 million, a standby letter of credit with a face value of $20 million and trade-related letters of credit with a face value of $70 million.All counterparties have a credit rating of BBB.What is the capital amount the FI needs to hold against these exposures?

• A)$5.04 million
• B)$7.52 million
• C)$8.4 million
• D)$24.8 million

Differentiate between legal and illegal activities in the context of competitive intelligence and cyber activities.

Recognize social engineering techniques and the importance of vigilance in organizational security.

Understand the concept of the time value of money and its importance in financial decision-making.

Calculate the present value and future value of cash flows using various interest rates.

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Definitions:

Principal's Identity

Refers to the clear disclosure of the principal party's identity in an agency relationship, especially in transactions.

E-agent

A computer program or an electronic or online platform that performs tasks or conducts transactions on behalf of users or other programs.

On-screen Confirmation

A visual acknowledgement displayed on a digital screen indicating that an action or transaction has been successfully completed.

Void

Refers to a contract or legal agreement that is deemed unenforceable and having no legal effect.