Question
The bank bought a 5 year G-Sec with YTM of 7.6% and plans to sell them in 2 weeks. The bond could not be sold within 2 weeks due to over sight and as a result the bank had to incur loss. This loss would be the result of ________
Solution
Here the risk is due to human error of oversight and is therefore an operational risk.
More Financial Management Questions
- When a commercial bank creates credit, its immediate effect is that it raises
- Which category do Bad debt fall under?Â
- As per the revised MSME definition, what is the limit for investment in plant and machinery or equipment and turnover ______ to define a small Industries?
- What does a shared vision in cross-functional teams contribute to?
- What does BCBS stand for?
- Pradhan Mantri Vaya Vandana Yojana (PMVVY) is one of the major Schemes of Government of India to protect the interest of the Senior citizens. What is the M...
- Â Interest rate futures and currency futures are regulated by
- Revaluation reserve are included as Tier II capital at a _______ discount for the purpose of capital adequacy ratio.
- What is the maximum composite loan limit banks can sanction to MSE entrepreneurs through a single window?
- Which of the types of bonds are in the nature of zero-coupon bonds? A.    Sovereign Gold Bonds B.    Oil Bonds C.    Treasury Bills D.    Cash mana...