To Calculate the Operational Risk Capital Charge, the DI's Activities

question 32

Multiple Choice

To calculate the operational risk capital charge, the DI's activities are first divided into:

• A)investment banking, commercial banking and 'all other activity'
• B)commercial lending, retail lending and 'all other activity'
• C)derivative trading, foreign exchange trading and 'all other activity'
• D)retail banking, commercial banking and 'all other activity'

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Definitions:

Cashier's Check

A cashier's check is a check guaranteed by a bank, drawn on the bank's own funds and signed by a cashier.

Draft

A preliminary version of a piece of writing, document, or legislation that is subject to further revision and editing.

Drawer

The party that writes and signs a check, directing a bank to pay the check's amount to the person or entity named as the payee.

Drawee

The party on whom a check or draft is drawn, and who is expected to pay the amount specified.