Default/credit risk for a bank is
A) the risk that the bank fails to make a contractual payment to the depositors
B) the risk that the depositors fail to make a deposit to the bank
C) the risk that the bank's borrowers fail to fulfill their repayment obligations on a timely basis
D) the risk of bank failure that can cause the government to bail it out
E) none of the above
Correct Answer:
Verified
Q3: Liquidity risk can manifest in
A)an inability to
Q4: The organizational triad of ERM consists of
Q5: To control default risk, the bank can
A)buy
Q6: In banking, liquidity risk is...
A)the risk faced
Q7: The communication triad of ERM consists of
Q9: One way to control interest rate risk
Q10: The behavioral biases that typically impede effective
Q11: For a given change in the market
Q12: Interest rate risk is
A)the risk that arises
Q13: ERM stands for:
A)excellent risk management
B)enterprise risk management
C)economic
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