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NEW QUESTION: 1
If an institution has $1000 in assets, and $800 in liabilities, what is the economic capital required to avoid insolvency at a 99% level of confidence? The VaR in respect of the assets at 99% confidence over a one year period is $100.
A. 0
B. 1
C. 2
D. 3
Answer: A
Explanation:
Explanation
The economic capital required to avoid insolvency is just the asset VaR, ie $100. This means that if the worst case losses are realized, the institution would need to have a buffer equivalent to those losses which in this case will be $100, and this buffer is the economic capital.
The actual value of liabilities is not relevant as they are considered 'riskless' from the institution's point of view, ie they will be taken at full value. In this particular case, the institution has $200 in capital which is more than the economic capital required.
Therefore Choice 'c' is the correct answer.

NEW QUESTION: 2
An Ethernet port can work one of three duplex modes, whereas an Optical Ethernet port only supports one single mode.
Which of the following represents this mode?
A. Half-duplex
B. Simplex
C. Auto-negotiation
D. Full-duplex
Answer: D

NEW QUESTION: 3
Which object do you have to assign the cost component structure to?
Response:
A. Costing variant
B. Costing type
C. Material master record
D. Valuation variant
Answer: A