İŞLETME FİNANSI II - Deneme Sınavı - 17

According to our text 'a local, centerless corporation that acquires a cost advantage where cheap resources are available' is not correct.

Future transfer is not type of this

Loan is not correct.

decreasing is not correct about that

This sentence is not correct it should be like A

It should be big size

It should be clearinghouses

According to text it should be nominal exchange rate

ıt should be real exchange rate

it should be as A

Risk is defined as the probability of facing loss or unintended consequences.

Market risk can be defined as the risk related to a financial institution’s financial condition resulting from unexpected market movements in the price level of certain risk factors.

Market risk can be defined as the risk related to a financial institution’s financial condition resulting from unexpected market movements in the price level of certain risk factors. These risk factors can be categorized into four main classes: equity prices, commodity prices, foreign exchange rates, and interest rates.

The risks subject to market risk capital requirements include but are not limited to: (1) default risk, interest rate risk, credit spread risk, equity risk, foreign exchange (FX) risk and commodities risk for trading book instruments; and (2) FX risk and commodities risk for banking book instruments

All features mentioned above are the key features of revised market risk framework.

Basel uses two main methods to assess market risk

Value at Risk(VaR)

Expected Shortfall(ES)

Credit risk is the risk that a borrower fails to meet obligations for a loan granted.

The Basel Committee permits banks to choose between two broad methodologies for calculating their risk-based capital requirements for credit risk:

Standardized approach and the internal ratings-based (IRB) approach.

Operational risk is simply any event that disrupts the normal flow of business processes and which generates financial loss or damage to the image of the bank .

Liquidity, frequently overlooked by financial institutions, may bring substantial losses in a very short period of time. The most profitable financial instruments tend to be illiquid assets. Assets carrying the illiquidity premium are rewarded with substantial profits in good times, however, when the tide turns, such assets may rapidly deplete a bank’s resources.