RISK MANAGEMENT AND FINANCIAL INSTITUTIONS

Multiple Choices:
Q1. The options that come into existence or disappear when the price of the underlying asset reaches a certain barrier.
Asian Options
Barrier options
Basket Options
Binary Options
Q2. The volatility of this model is changes with the passage of time:
EMWA Model
GAMMA Model
VEGA Model
GARCH Model
Q3. The office which consists of risk managers who are monitoring the risks being is taken is called
Front Office
Middle Office
Back Office
None of the above
Q4. A separate issue from the number of exceptions is:
Bunching
Grouping
Stress testing
None
Q5. This simulation is a very popular approach for estimating VaR:
Historical Simulation
Accuracy
Extensions
None of the above
Out of the following which rate is defined as the square of the volatility?
Standard Deviation
Variance
Mean
Median
Q7. Risk measures satisfying all four conditions are referred to as:
Time Horizon
Auto Correlation
Confidence level
Coherent
Q8. Only bonds with ratings of Baa or above are considered to be:
Investment grade
Internal Credit Ratings
Altman’s Z- Score
None of the above
Q9. The by- product of any program to measure & understand operational risk is likely to be the development of:
Risk & Control self assessment
Key Risk Indicators
Operational risk Capital
Casual Relationship
Q10. The Securities that are subject to a discount are known as a:
Collateralization
Downgrade Trigger
Haircut
None of the above