Scat Nume 1. a. b. a. fon 1: Multiple Choice Questions (3 marks each, 30 marks in tota Duration gap model is used to assess the credit risk of banks foreign exchange risk interest rate risk operational risk For a typical commercial bank, the most important risk is operational risk b. market risk c. credit risk d. reinvestment risk Unauthorized trading is a form of operational risk b. market risk c. credit risk d. reinvestment risk Which VaR approach does not assume normal distribution of asset returns? a. analytical VaR b. Monte Carlo simulation variance-covariance matrix d. histroical simulation 3. a. 4. c. 5. a. c. 6. a Banks can increase its liquidity by lending more b. borrowing more employing more people d. paying more dividend The shutdown of all Greek banks for at least one week a few years ago was to reduce what type of risk (faced by Greek banks)? market risk b. interest rate risk. liquidity risk d. credit risk. When did the global risk-related capital adequacy requirements first start? before Basel I b. in Basel 1. c. in Basel II d. in Basel III. c. 7. a. mount MOP 500