Which of the following statements is incorrect?
A) The validity of a bank's estimated VAR is assessed with backtests in which the actual daily trading gains or losses are compared to the estimated VAR over a particular period.
B) Some banks supplement the VAR estimate with stress tests.
C) In general, the VAR model does not lend itself to determine capital requirements.
D) All of the statements above are correct.
Correct Answer:
Verified
Q5: Deposit insurance has a limit of
A)$10,000.
B)$25,000.
C)$100,000.
D)$250,000.
Q8: An "off-balance-sheet commitment" that provides the bank's
Q11: Commercial banks _ restricted to a maximum
Q13: The potential risk that financial problems can
Q14: Which of the following is not a
Q16: The Glass-Steagall Act of 1933 prevented
A)any firm
Q16: The Basel framework recommends capital requirements in
Q17: In general, a bank defines its value-at-risk
Q18: The Depository Institutions Deregulation and Monetary Control
Q20: The opening of a commercial bank in
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents