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    Question

    The RBI amendment on counterparty credit risk (CCR)

    primarily relates to which type of financial exposure?
    A Loan defaults only Correct Answer Incorrect Answer
    B Credit card defaults Correct Answer Incorrect Answer
    C Derivatives and swap transactions Correct Answer Incorrect Answer
    D Insurance claims Correct Answer Incorrect Answer
    E Government securities Correct Answer Incorrect Answer

    Solution

    Counterparty Credit Risk (CCR) refers to the risk that the other party in financial transactions such as derivatives or swaps may default before settlement, which is addressed under the revised RBI norms.

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