1. Which of the following is typically referred as the third line of defense against fraud?

1. External auditors producing the banks financial statements.
2. Middle-office teams analyzing and managing risk.
3. Front-office staff interacting directly with customers.
4. The banks internal audit teams conducting investigations

2-Which of the following is not a risk to a bank that provide invoice discounting to a corporate customer?

1. Credit risk in realistic to the corporate itself.
2. Credit risk in relation to the corporates customer whose invoices are being discounted.
3. FX risk overseas currency receivables.
4. Lack of recourse to the underlying goods, especially if exporte

3- A yield carve can be defined as a graph representing.

1. Bond returns from a range of issuers of diverse credit quality.
2. Coupon rate available for short term government issued debt.
3. Predictions of interest rate next year.
4. Specific rate of interest for specific maturities for a pacific borrower.

4-

When compared cash flow loan, which of the following statements about assets based loans is true? Assets based loans typically

1. Are more expensive.
2. Are unsecured.
3. Create higher risk for the lender.
4. Have higher prepayment penalties.