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      Question

      Which of the following investment of banks are not

      marked-to-market?
      A HTM Correct Answer Incorrect Answer
      B AFS Correct Answer Incorrect Answer
      C HFT Correct Answer Incorrect Answer
      D A and B Correct Answer Incorrect Answer
      E B and C Correct Answer Incorrect Answer

      Solution

      HTM represents the investments which are ‘held to maturity’. Investments classified under HTM need not be marked to market and will be carried at acquisition cost, unless it is more than the face value, i n which case the premium should be amortised over the period remaining to maturity.

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