International Certificate in Banking Risk and Regulation (ICBRR): ICBRR

Most loans and deposits in the interbank market have a maturity of:

A. More than 10 years

B. More than 5 years but less than 10 years

C. More than 3 years but less than 5 years

D. Less than one year

Which one of the following four statements regarding counterparty credit risk is INCORRECT?

A. Counterparty credit risk refers to the inability to realize gains in a contract with a counterparty due to its default.

B. The exposure at default is variable due to fluctuations in swap valuations.

C. The exposure at default can be negatively correlated to probability of default.

D. Dynamic collateral provisions often increase counterparty risk considerably.

Which of the following correctly identifies reasons for collecting internal operational risk event and loss information?

A. Assessing the risk of specific areas of concern.

II. Evaluating risk events and outcomes.

III. Collecting data for capital modeling.

IV. Getting insight into risk events in other firms in the industry.

B. I and II

C. II and III

D. I, II and III

E. II, III, and IV