Question

For market risk, the minimum capital requirement is expressed in terms of two separately calculated charges. Which of the following are those two risks charged for?

A Specific risk and general market risk Correct Answer Incorrect Answer
B special risk and general risk Correct Answer Incorrect Answer
C liquidity risk and liquidation risk Correct Answer Incorrect Answer
D counterparty risk and trading partner's risk Correct Answer Incorrect Answer
E Liquidity risk and counterparty risk Correct Answer Incorrect Answer

Solution

The minimum capital requirement for market risk is expressed in terms of: ·         general market risk; and ·         specific risk (ie risk associated with exposures to specific issuers of debt securities or equities)

Practice Next

Relevant for Exams:

×
×