According to the BIS Business Indicator Capital Requirements, a bank with a Business Indicator of $27 billion is required to hold how much operational risk-based capital?

a.

$2.66 billion

b.

$5.65 billion

c.

$11.27 billion

d.

$3.64 billion

The current exposure component of the credit equivalent amount of OBS derivative items reflects

a.

the probability of an adverse price movement in contracts and the maximum price loss for any given position.

b.

the probability of an adverse price movement in contracts.

c.

the probability of a counterparty contract default in the future.

d.

the cost of replacing a contract if a counterparty defaults today.

Which of the following is not a supply or demand factor of the growth of new FinTech:

a.

Banks shifted to comply with post-crisis regulatory developments and cost-cutting measures

b.

The low interest rate environment put downward pressure on profits and increased the incentives of FIs to cut costs.

c.

Millennials became the largest generation in the labor force.

d.

Banks to adopt technology in the post-crisis period.

e.

The increasing prevalence of mobile technology.