FIN
Topic 6 Financial Disasters.pdf

Both i and ii ii only neither i nor ii which of the

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Both I and II. II only. Neither I nor II. Which of the following are examples of model risk illustrated in the Long-Term Capital Management (LTCM) case? I. Poor management oversight. II. Financial reporting standards. II only. Neither I nor II. I only. Both I and II. Which of the following factors contributed to the collapse of Barings Bank? Basis risk. A trader having authority in the settlement process. Japanese financial reporting requirements. A maturity mismatch between the hedging instrument and the risk being hedged. In general, the bankruptcy of Barings Bank might have been avoided with: a more moderate use of leverage. maturity matching between the hedging instrument and the asset being hedged. pricing models less vulnerable to model risk. stronger reporting and control systems.
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Question #14 of 15 Question ID: 438687 A) B) C) D) Question #15 of 15 Question ID: 438683 A) B) C) D) Information systems at Barings Bank were deficient for all of the following reasons except: technological limitations that hindered accurate financial reporting. management's failure to audit reporting quality. incomplete account information on gains and losses. management's inability to detect the inconsistency of Leeson's trading strategy and profits. Nicholas Leeson is identified with which of the following? Nikkei stock index futures. Metallgesellschaft AG. Commodity Futures Trading Commission. Sumitomo.
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