Current credit exposure is the A credit risk exposure of an off balance sheet

Current credit exposure is the a credit risk exposure

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4. Current credit exposure is the: A. credit risk exposure of an off-balance-sheet item.B. cost of replacing a derivative securities contract at today's prices.C. risk that a counterparty to a derivative securities contract will default in the future.D. potential loss on current loans. 5. Choose the correct answer: 6. To calculate the operational risk capital charge, the DI's activities are first divided into: 7. Market risk is made up of: Page 3 of 7
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8. Which of the following are problems in using the leverage ratio as a measure of capital adequacy? A. Even with a low leverage ratio, an FI could have a negative market value net worth.B. The different types of risks, such as credit or interest rate risk are not captured.C. Off-balance-sheet activities are not captured.D.Even with a low leverage ratio, an FI could have a negative market value net worth, the different types of risks, such as credit or interest rate risk are not captured and off-balance-sheet activities are not captured. (Q9 – Q12) are based on the following information: Asset Liability Committee (ALCO) of Monash Bank has calculated the following risk weights assets for its exposures for 2018 as follows: RWA credit risk (On- balance sheet) = $ 120 billion, RWA credit risk (Off-balance sheet) = $ 20 billion.
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  • Fall '17
  • Debt, Basel II, Capital requirement, Tier 1 capital

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