Question
1.Market risk is defined as the risk related to the uncertainty of an FI's: A earnings on its trading portfolio caused by changes in market
1.Market risk is defined as the risk related to the uncertainty of an FI's:
A earnings on its trading portfolio caused by changes in market conditions.
B reputation caused by changes in market conditions.
C solvency caused by the default by specific markets (industries).
D funding capacity in money markets or in capital markets
2.The net worth is a measure of an FI's capital that is equal to the difference between the:
| book value of its assets and the market value of its liabilities. | ||
| market value of its assets and the book value of its liabilities. | ||
| market value of its assets and the market value of its liabilities | ||
| book value of its liabilities and the book value of its assets |
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