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NEW QUESTION: 1
Which of the following statements are true:
I. Common scenarios for stress tests include the 1997 Asian crisis, the Russian default in 1998 and other well known economic stress situations.
II. Stress tests provide the assurance that an institution's worst case losses will be covered.
III. Performing stress tests is highly recommended but is not mandated under Basel II.
IV. Historical events can be modeled quite accurately as they have defined start and end dates.
A. I, III and IV
B. I only
C. I and II
D. All of the above
Answer: B
Explanation:
Explanation
Stress tests can cover known events, but since the future is unknown, and new events may be entirely different from what has happened in the past, they provide no assurance that an institution's worst case losses would be covered. Hence II is false.
Stress testing is required to be performed as part of Basel II, and therefore III is false.
Historical events do not have sharply defined start and end dates. Often, even after a crises ends, its after effects may continue to affect the markets for a long time. In such cases, it may be difficult to define the start and end of the crises. In many cases, the crises may persist for months or even years, making it difficult for the risk manager to identify a time period that covers the essence of the crises, and yet is focused enough to constitute a plausible scenario. Therefore IV is false too. Only I is true, and the correct answer is Choice 'b'.
NEW QUESTION: 2
Which HP QuickTest Professional feature enables you to track application performance counters during a run session?
A. Environment Monitor
B. Local System Monitor
C. Run Viewer
D. Resource counters
Answer: B
NEW QUESTION: 3
Which is a valid use of the Let () function in a formula for a FileMaker Pro 12 calculation field?
A. To limit the iterations of a Loop () function
B. To set the value of a global variable
C. To modify data in a text field referenced elsewhere
D. To define a custom function that can be used in other calculation formulas
Answer: B
