Which type of repo is the most risky for the buyer?

[answerhappygod]

Which type of repo is the most risky for the buyer?
A. Delivery repo
B. HIC repo
C. TO-party repo
D. There is no real difference

Answer : C


Supervisors would generally consider interest rate risk exposure in the banking book excessive beginning at what level of losses given a +1- 200 bps market rate movement?
A. > 2% of 6 months forward earnings
B. > 20% of regulatory capital
C. <10% of regulatory capital
D. < 5% of 12 months forward earnings

Answer : B


Which of the following is a function of asset and liability management (ALM)?
A. coordinated limit management of a financial institution’s credit portfolio
B. running a matched trading book
C. monitoring credit quality of assets and establishing a early warning system
D. managing the financial risk of the bank by protecting it from the adverse effects of changing interest rates

Answer : B


Which of the following statements is true?
A. Prices quoted by brokers should be taken to be firm in marketable amounts unless otherwise qualified
B. Prices quoted by brokers should be taken to be indicative in marketable amounts unless otherwise qualified
C. Prices quoted by brokers should be taken to be firm in amounts of 1,000,000.00 of the quoted currency unless otherwise qualified
D. Prices quoted by brokers should be taken to be indicative in amounts of 1,000,000.00 of the base currency unless otherwise qualified

Answer : A


In GBP/CHF, you are quoted the following prices by four different banks. You are a buyer of CHF. Which is the best quote for you?
A. 1.4340
B. 1.4343
C. 1.4337
D. 1.4335


Answer : B