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NEW QUESTION: 1
Which one of the four following statements about Basis point values is correct?
Basis point value:
A. Is a widely used statistical tool used to measure market risk.
B. Is a risk sensitivity measure used to measure the point spread risk in the banking book.
C. Refers to the change in the value of a fixed income position for a very small change yields.
D. Provides a quick estimate of the sensitivity of the bank's banking book, to increasing volatility in interest
rates.
Answer: C
NEW QUESTION: 2
A. Option A
B. Option D
C. Option C
D. Option B
Answer: A,D
NEW QUESTION: 3
Value engineering is:
A. A method of determining prices based on a cost determination.
B. A systematic approach to assessing all aspects of cost buildup for a product.
C. A policy of seeking continuous improvement in all phases of company{ activities.
D. An element of a marketing mix strategy.
Answer: B
Explanation:
Value engineering is a means of reaching targeted cost levels. It is a systematic approach to assessing all aspects of the value chain cost buildup for a product: R&D, design of products, design of processes, production, marketing, distribution, and customer service_ The purpose is to minimize costs without sacrificing customer satisfaction.
NEW QUESTION: 4
If the underlying theory suggests that the value of an estimated variable is greater than a particular number, it is appropriate to use:
A. a two-tailed test.
B. a left-tailed test.
C. a right-tailed test.
Answer: C
Explanation:
When an observation is made and we see a value greater than the threshold suggested by the theory, we would like to known the probability of getting the larger value due simply to chance rather than to the event being driven by the theory. For this, we need to known the right-tail probabilities under the null hypothesis.
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