New Enroll in RBI Grade B New Batch - Starts on May 21

    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)

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