Direct lending risk occurs in products ranging from loans and overdrafts to credit cards a
Limiting the use of deficiency judgments in the area of consumer lending will ______.
A.increase the risk of lending
B.reduce the risk of lending
C.increase the availability of credit facility
D.set up the credit record of borrowers
A.Right
B.Wrong
C.Doesn't say
听力原文:M: What margins will the lending bank charge?
W: Margins mainly depend on these factors: evaluation of credit risk, maturity of credit, and the starting point from which onwards the rate of interest shall be firm.
Q: How many factors do margins charged by the lending bank mainly depend on?
(12)
A.Four.
B.Two.
C.Three.
D.Five.
(6)
A.Information technology system can cause operational risk.
B.A major fire can be a cause of operational risk.
C.The most important types of operational risk involve breakdowns in internal controls and corporate governance.
D.Other aspects of operational risk include firing its dealers, lending officers or other staff exceeding their authority or conducting business in an unethical or risky manner.
The finance director of GXJ Co would like to hedge the interest rate risk arising from the future loan and the company’s bank has offered a 3–9, 4·5%–3·5% forward rate agreement.
The finance director is also concerned about the foreign currency risk associated with the euro interest payment which would be due in nine months’ time.
The following exchange rates are available:
Required:
(a) Evaluate the proposed forward rate agreement as a way of managing the interest rate risk anticipated by GXJ Co. (3 marks)
(b) Analyse the foreign currency risk associated with the future interest payment of GXJ Co and briefly discuss ways that this risk might be hedged. (4 marks)
(c) Explain the nature of four-way equivalence in the relationship between spot exchange rates, forward exchange rates and future (expected) spot rates. (3 marks)
What has happened to the capital flow into the emerging market economies?
A.It has become difficult to get foreign direct investment.
B.Banks no longer offer any loans.
C.Portfolio investment has increased.
D.Those market economies didn't take advantage of different kinds of capital.
A.direct
B.inverse
C.proportional
D.exponential
166 Risk can be divided into two basic types; business risk and pure (or insurable risk). Of the following, which one(s) fall(s) under business risk?
A. liability loss
B. direct property loss
C. profit loss
D. personnel-related loss
E. B and C
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