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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 ā€˜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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