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NEW QUESTION: 1
A project schedule requires the delivery of major components by ocean barge during hurricane season, the project manager enters the issue in the risk register and the project owner opts to take no additional action.
Which strategy did the project owner select?
A. Avoid
B. Accept
C. Transfer
D. Mitigate
Answer: B
NEW QUESTION: 2
What does the d# represent in the device special file format of c#t#d#s#?
A. SCSI controller number
B. Slice partition number
C. Target ID number
D. LUN number
Answer: D
NEW QUESTION: 3
Which of the following statements is correct in relation to liquidity risk management?
I. Pricing for products that do not impact the balance sheet need not reflect the cost of maintaining liquidity II. Time horizons for liquidity risk management are impacted by both regulatory requirements and the speed at which new sources of liquidity can be tapped III. Collateral management is an important aspect of liquidity risk management IV. The maturity period of various instruments in the capital structure has a significant impact on liquidity needs
A. II and III
B. I and II
C. III and IV
D. II, III and IV
Answer: D
Explanation:
Explanation
All product pricing should reflect the cost of maintaining the liquidity required to support a product. This is regardless of the accounting treatment for the product, ie irrespective of whether the product is on or off balance sheet. Therefore statement I is incorrect.
The time horizon to consider for liquidity risk management is determined taking into account a number of factors, which include both the speed at which new sources of liquidity can be generated and any applicable regulatory requirements. Statement II is correct.
Managing collateral, both collateral received and collateral posted with counterparties, is an important aspect of liquidity risk management as liquidity problems often manifest themselves in the form of margin calls requiring collateral to be posted. Statement III is therefore correct.
The maturity period of the different sources of capital funding for a bank, for example equity capital, preferred shares, long term debt etc quite clearly has a significant impact on liquidity needs. Stable sources of funds such as equity or preferred capital, or debt that is not maturing shortly help the liquidity position. Statement IV is therefore correct.
Choice 'b' is the correct answer.
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